The Standard - SOHO buys up Beijing project

By Sophie He

SOHO China (0410) has acquired a prime commercial plus retail complex in Beijing for 2.34 billion yuan (HK$2.65 billion). Of that, 1.05 billion yuan was a bank loan.

Nexus Centre, which will be become SOHO Nexus Centre, is a Grade A 37-story complex.

Chairman Pan Shiyi expects to sell space at Nexus Centre for no less than 40,000 yuan per square meter versus the purchase price of 26,600 yuan psm.

``SOHO China is very confident, he said of the outlook. And the bank loan is expected to be repaid ``very soon after SOHO China starts selling space.

On the possibility of credit being tightened in the mainland, Pan said there has always been macro-control by the government.

``Since SOHO China mostly focuses on commercial estates and our credit record is good, policy [changes] won t worry us, he added.

Nexus Centre, previously owned by a foreign investment fund, is now 30 percent leased.

That is expected to rise to 90 percent in the near future.

Pan also said the developer will diversify income by setting up a management services unit.

SOHO Estate Management will ``take over all the property that the company owns, he said.