Construction of Large Urban Complex in Qujing High-speed Rail Area

Name

曲靖高铁片区大型城市综合体建设项目
Construction of Large Urban Complex in Qujing High-speed Rail Area

Industry Involved

Modern Service Industry

Site

Situated in the west of Zhanyi District, Qujing City, Yunnan Province, the project site extends to Guiyang-Kunming Railway in the east, the foot of Taihe Mountain in the south, about 500m from special passenger high-speed railway in the west and the junction of railways in the north.

Overview

With the well development of land, areas having high speed rails will play the role as a new engine of urban development, new comprehensive traffic hub and new platform of exchange and exhibition in future. Visiting the areas integrating commercial and service centers and stations will gradually become a part of people’s daily activity, and such areas may have more diversified functional sites such as working place, shopping center, culture and entertainment event place. This project will influence 88,000 people in total.

This project is intended to build an international, modern and composite “high-end urban complex” gathering high-end residence, business, entertainment, leisure and shopping centers. In the project, it is planned to create an international brand street assembling park-style leisure, entertainment and shopping, international brand store, international cinema and other high-end items following the idea of “fashion sense and fine life”; furthermore, an urban complex, embracing complete urban functional sites from high-end sports and leisure club, high-rise five-star hotel landmark to school, will be set up.

Content

Construction scale: a large-scaled urban complex embracing complete urban functional places from residence, office, business center, hotel, park to school

Construction duration: 5 years

Land area: 1100 mu

Supporting Conditions

Location advantages: Located in the middle of the Yunnan-Guizhou Plateau and at the north edge of Quzhan Basin, Zhanyi District is known as “a throat of Yunnan”, “the first prefecture on the way to Yunnan” and “dry wharf in eastern Yunnan”. Covering the land area of 2814.89 km², this district consists of 5 townships, 2 towns, 4 subdistrict offices, 130 villagers (community) committees, 1208 villages, has the total population of 446,200, and is inhabited by 19 nationalities including Han, Yi, Hui and Miao. With subtropical low-latitude plateau monsoon climate, its annual average temperature is 14.5℃, annual frost-free period 256 days, annual average sunshine time 2098 hours and annual average rainfall 1008.9mm; in addition, its forest area totals 94200 ha., with the forest coverage of 48.65%. It is 143 km from Kunming and 8 km from Quqing Downtown.

Transportation advantages: Zhanyi District is located at the junction of three main roads - Qusheng section of Hangzhou-Ruili Expressway, Quxuan section of Shanghai-Kunming Expressway and Tianxuan Class I Highway; the national highways G320 and G326 pass throughout it; now, Shanghai-Kunming High-Speed Railway and Guiyang-Kunming Railway run through it from south to north; there are Heilaowan strategic loading station of Guiyang-Kunming Railway, Zhanyi Railway Station and North Qujing Railway Station of Shanghai-Kunming High-Speed Railway; it is 130 km away from Kunming Changshui International Airport which is accessible via expressways. Railway, airport and urban rail are interconnected and seamlessly jointed, which brings the convenient transportation.

Development advantages: Raw materials: Various construction materials have even resource distribution and are available locally. Auxiliary materials: The required water, electricity and natural gas are in the sufficient supply and charged as the uniform price of Yunnan. Labor: The whole city has over 60,000 vocational school students, providing enterprises with abundant technician and management reserve. The average salary of enterprise employee is RMB 2500-3500 in Zhanyi.

Policy opportunity: This project is consistent with relevant national policies and laws as well as provincial, municipal and county planning for national economy and social development, and has been brought into the land utilization planning and urban development planning of Zhanyi District.

Associated industries: Zhanyi is experiencing the increasing visitor flow along with the development of emerging Zhanyi City and rapid rising of culture based on China Railway High-speed spirit; in addition, the urban development brings the dramatically increasing demand for finance, trade, service and other industries; however, there is no large-scale urban complex given modern image in Zhanyi Downtown, as a result, it is imperative for Zhanyi to build a large-scale modern urban complex.

Early preparations: The construction of Station Square and station access road of Phase I has been finished; public transit hub, long-distance bus passenger terminal, counterterrorism and safeguard service center of Phase II are ready for construction after the commencement ceremony. The project site has had access to water, road, electricity, network, with land levelled; it is far from residential area, school, sanitary and other public places; With 7-degree seismic intensity, it is situated in a less frequently active seismic zone; the design basic seismic acceleration is 0.15g, therefore, the hydrological conditions are stable.

Investment Estimate and Fund Raising

Investment estimate: RMB 1.5 billion

Fund structure: total investment = fixed-asset investment + interest incurred during construction + working capital

Fund raising: self-raising by enterprise, financing

Preferential Policies Applicable

Preferential policies introduced by central government, Yunnan Province, Qujing City and Zhanyi District are applicable

Water: The price of raw water is RMB 0.6-1/m³ depending on areas. There is a centralized industrial sewage treatment plant in Baishui Area, and the treatment charge is within RMB 8/m^3.

Natural gas: The price is RMB 2.72/m³ for industrial use.

Electricity price: Enterprise will be actively supported to participate in the market-based trading of electricity.

Market Prediction (Analysis)

The Polarization Effect of regional economy will be strengthened due to the operation of HSR. There are huge advantages of regional economic development for the surrounding areas of HSR station. The development intensity of station area will be higher than the ordinary urban section for the purpose of giving full play to the convenient traffic advantage of HSR station; the distribution of development intensity will be embodied by aggregation morphology with core of the station, according to the classical TOD development theory.

Profit Model and Preliminary Benefit Analysis

After the completion, the project will produce the net income of RMB 108.980 million. The payback period is expected to be 8 years.

Risk Analysis

Capital risk: Large space and large scale of urban complex makes it costly from the very beginning: the cost from land acquisition to construction is much higher than that in a single property project.

Planning and design risk: Owing to diversified operation modes of urban complex, property developers must do research, investigation, planning and design well in the early stage, or else there is risk of unduly completion or loss of land value.

Construction risk: An urban complex project has more unforeseen risks than a single property project due to the long construction duration and miscellaneous professional items in the whole project.

Cooperation Pattern

Joint venture, cooperation and sole proprietorship

Contact Information

Contact Unit: Zhanyi Branch of Qujing Planning Bureau, Investment Invitation and Cooperation of Zhanyi District, Quqing City

Contact Person: Zhan Bo, Yuan Ying

Tel.: 0874-3055686 0874--3167096

Fax: 0874-3055686 0874--3165968

E-mail: 1084947@qq.com, 3027888522@qq.com