Investment Project of China Overseas International Center in Kunming

Name

昆明中海国际中心招商项目

Investment Project of China Overseas International Center in Kunming

Industry Involved

Commercial real estate economy

Site

Wujiaba Area, Guandu District

Project Description

The investment project of high-end office building of China Overseas International Center is a high-end commercial office building built by the China Overseas Property in the financial center headquarters base of Wujiaba Area. The whole parcel has a planned total land area of 24,937.68m² and a total floor area of 254,847.41m². It is mainly composed of one super high-rise office building, one super high-rise loft apartment, high-rise residential buildings and supporting businesses. The super high-rise Class A office building, namely the office building of China Overseas International Center in Kunming, with a floor area of about 99,750m², will provide first-class office and business environment and attract investment from local and foreign enterprises.

Wujiaba Area is the future urban development center, with superior region, convenient transportation, perfect commercial, residential and public services, and is planned to build the largest central park in Asia, with beautiful environment, suitable for business and living. At present, there are many headquarters projects in Wujiaba Area. It will be one of the important CBDs in Kunming with strong business atmosphere in the future.

Content

The goal of the project is to set a benchmark for the headquarters base, converge the CBD urban rail, and lead by super high-rise Class A quality.

The whole parcel of China Overseas International Center has a planned total land area of 24,937.68m² and a total floor area of 254,847.41m². It is mainly composed of one super high-rise office building, one super high-rise LOFT apartment, high-rise residential buildings and supporting businesses. The super high-rise Class A office building of China Overseas International Center in Kunming has a floor area of about 99,750m² and a height of about 220m, with a total of 43 storeys. The standard floor height of the project is 4.2m, and the single-storey floor area is about 2,000m². The project is scheduled to be delivered in June 2022. (Project information is for reference only)

Supporting Conditions

Transportation: To establish a safe, convenient, efficient, green and economical comprehensive transportation system, Wujiaba is provided with 4 urban expressways, 4 urban trunk roads, 13 urban secondary trunk roads and 31 urban branch roads. The total length of urban roads is 104.2 km, and the density of road network is 23%. Wujiaba Area is accessible under the planning concept of "small blocks and dense road network". There are 6 subway lines in the area, namely, subway lines 1, 4, 7 and 8, north-south express line and east-west express line. The project is located about 1 km away from Changhong West Road Station of Metro Line 1 that has been completed and opened to traffic, and about 800m away from Wujiaba Station.

Commerce: Supported by large commercial centers, characteristic commercial blocks, new mode of park shopping, diversified business models and equal public service facilities, the project is to create a colorful and diversified commercial center.

Residence: Wujiaba Area is planned to build a cultural innovation residential area, a culturally livable area, an ecological low-carbon residential area, a cultural recreation area, an international community and other areas with residential services. The project developer, China Overseas, and well-known real estate enterprises such as Vanke, China Communications Construction Company (CCCC), China Railway, Poly and Greenland have launched a series of middle- and high-end residences and apartments to meet the residential needs of employees in the area. At present, there are China Overseas Property La Cite, Vanke Emerald, CCCC Gemdale, China Railway Xipai Tieyue, Poly Tangyue, Greenland South East Asia Regional Headquarters Center, etc.

Education: Wujiaba Area has complete educational facilities and reasonable distribution. Schools to be built as planned in the area include 4 senior high schools with a total of 156 classes, 5 junior high schools with a total of 186 classes, 11 primary schools with a total of 384 classes and 28 kindergartens.

Public services: It has a reasonable layout according to the area functions, forming a public service system of administrative and commercial services, culture, sports, medical care, education and scientific research at the city, district and community levels. Guandu District People's Hospital (Class A tertiary) has been commenced and a number of district-level hospitals, community hospitals and health service stations will be introduced in the future to fully serve the population of 210,000 in the area.

Investment Estimate and Fund Raising

The actual investment shall prevail.

Preferential Policies Applicable

National, provincial, municipal and district-level preferential policies for investment promotion available

Market Prediction (Analysis)

Analysis of office buildings in South Area, Kunming: There is room for rent increase in Kunming.

(1) Economic development in Kunming provides opportunities for rent increase

The economy in Kunming has seen a steady growth and the tertiary industry and real estate industry have developed fast in Kunming. A large number of potential customers may come to Kunming with high-quality projects, paving the way to rent increase in Kunming's office market at macro-level.

(2) There is strong local demand in Kunming office market.

From the performance of Kunming office market, it can be seen that the supply of Kunming office market is directly proportional to the demand, reflecting the strong local demand in Kunming office market. Therefore, the owners have the opportunity to raise the rent of their property.

(3) Kunming office market is in the period of building replacement.

At present, there are not many high-quality office buildings in Kunming. A large number of high-quality office buildings such as Hang Lung Plaza and Spring Eye will be built in the future to drive building replacement in Kunming office market. During this period, corporate customers will objectively feel the value brought by high-quality properties to enterprises and be motivated to move to accelerate market competition. In addition, old properties will be abandoned by customers, and owners of high-quality properties will have the initiative to increase the rent.

(4) The demand of enterprise tenants can burst out under the stimulation of the market.

At present, the demand of Kunming enterprise customers for office property is only the basic office demand, and further demand needs to be stimulated by high-quality projects in the market and the development of enterprises themselves. At present, the "catalyst" in Kunming office market is mainly the visual display of high-quality projects and the internationalization concept and service brought by international real estate service providers entering Yunnan. After the demand of enterprise tenants is catalyzed, the market competition will be accelerated and the premium of high-quality projects will be increased.

Profit Model and Preliminary Benefit Analysis

According to the development plan of the area, the area is a financial center and a headquarters base. Financial institutions such as banks, securities companies, insurance companies, trust and investment companies and fund management companies are introduced in combination with location, transportation, supporting and other actual conditions and construction standards. Meanwhile, by using the influence of China State Construction Engineering Co., Ltd., a series of companies with supporting services such as product technology research and development, survey and design, project contracting, real estate development, equipment manufacturing and property management are introduced to settle in.

Risk Analysis

Wujiaba Area focuses on headquarters economy and a large number of office buildings will be built in the future, embodying certain competitive risk.

Cooperation Pattern

Lease, property purchase

Contact Information

Contact Unit: China Overseas Property Holdings Limited (Chengdu Commercial Management)

Contact Person: Fan Yue

Tel.: 13880737017