Residential property developer involved in a heated auction for a simple retail site design in interior China in 2009 boom. The total cost of the project may be more than $ 1 billion U.S. more than 4000000 square meters of buildings. Hang Lung Properties has enjoyed success in a building in Hong Kong, but was focused on a very limited projects in China, in particular the two commercial properties in Shanghai. After ten years in Shanghai, the company decides to enter the second-tier Chinese cities, including Chengdu, a city of 11 million in China's interior. The case covers the Hang Lung Properties "due diligence and thought process for the expected rental income, building costs and land values. Auction includes many other well-capitalized firms and the price escalates. Hang Lung team must decide whether to participate or refuse. Students should use the solutions in the evaluation of key variables, including income stabilized, construction cost, and minimal hope of a return on investment in order to prepare their proposals. (B) it is a matter for further steps in the auction, as well as internal discipline Hang Lung Properties "on the types of assets and infrastructure in target cities, and basic income.
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by John D. Macomber, Michael Chi-ta Chen, Keith Chi-ho Wong Source: Harvard Business School 24 pages. Publication Date: June 29, 2010. Prod. #: 210089-PDF-ENG
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