Lan Kwai Fong Holdings Ltd., the Hong Kong property owner and developer founded by Allan Zeman, expects to open its next China venture in Haikou in the third quarter next year, expanding its footprint to the key tourism-related market of Hainan Island.
Teaming up with integrated resort operator Mission Hills, Lan Kwai Fong in Haikou will feature an entertainment zone, food and beverages from global brands, three large hotels — Ritz-Carlton, Renaissance and Hard Rock – and a golf course, plus the only tax-free store in Haikou.
“I hope Lan Kwai Fong in Haikou will have 20,000 visitor arrivals every day after it starts operation,” Zeman said, according to the Hong Kong Economic Journal.
The project has been delayed to the third quarter of 2015, from the original planned opening at the end of this year. Zeman justified the delay, noting that “slow and steady wins the race”.
The Haikou venture marks the fourth project of the company in the mainland after earlier initiatives in Chengdu, Wuxi and Shanghai. Zeman said he set sights on Haikou in 2011 as he noticed the fast development in the area following Beijing’s plan to develop Hainan into the ‘Hawaii of China’.
He also said he was impressed by the golf course and hotels of Mission Hills, which proposed to join hands with the company.
The Haikou project involves total investment of 2 billion yuan (US$326.38 million) and will have gross floor area of 240,000 square meters, of which 180,000 square meters can be leased out. Zeman said he expects the payback period to be about seven to 10 years.
Mission Hills Group chairman Zhu Dingjian said the venture is progressing well as local authorities have recognized it as a signature project. Banks have also offered good lending rates, making the capital flow smooth, he said.
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