In China, demand in the technology parks and logistics property market continues to grow, partly as a result of the limits on newly supplied land as well the government’s announced support for the sector. As operational and employment related costs continue to rise in first-tier locations such as Beijing, Shanghai and Guangzhou, investors and business owners are expected to look to regional and second-tier cities with comparable resources but where costs are significantly lower.
As the Chinese economy adjusts to the to the shift to a more sustainable economy, property industry analysts expect investment demand for business park and logistics properties to remain strong, particularly in regions witnessing improvements in transportation and associated logistics infrastructure and services.
Some of the key factors influencing the selection of investment locations include its strategic location relative to accessing markets, either directly or via transportation infrastructure and logistics, or relative to key industrial suppliers and prospective workforce. Given the increasing costs and competition associated with doing business in these first-tier cities, over the next decade, the balance of logistics activity is forecast to move to central and western China.
LionHub selected Anhui province as it is located in central China, with a large population of 60 million in an area of 139,600 km2. It lies in the hinterland of Yangtze Delta where there is great economic development potential. The Board of LionHub believes that the province is set to benefit from China’s ongoing urbanisation of regional areas, with a current GDP per capita that is below the national level, and its proximity to the Shanghai, Zhejiang and Jiangsu growth belt as well as vast tourism and other resources such as transportation and a large population base.
The Anhui province enjoys excellent connectivity to the rest of China through a comprehensive network of expressways, modern high speed rail and an international airport, and is therefore strategically positioned to serve as a central hub of China in future years.
Sales and marketing programs commenced for the technology park at this time, and confirmation of the Master Plan’s approval now enables the Company to support its promotions with operational activity on the ground.
The opening of the Display and Marketing Gallery at the Xuancheng Singapore Technology Park in December 2014 represented the formal launch of the Company’s promotional activities at the park. However, the official opening of this resource in fact followed months of planning and preparation on behalf of management and specialist contractors employed for the program. Activity at the Display and Marketing Gallery is expected to increase throughout 2015-2016.
The Display and Marketing Gallery is designed to respond to a range of enquiries, and includes an Exhibition Hall at Xuancheng complete with a video presentation area, expansive display panels featuring all the key aspects of the park as well as the Master Plan drawings, along with examples of furnishings and other site specific applications. The promotional resource also includes a fully functioning commercial office space at the site, which is being used by LionHub staff based on site.
LionHub’s sales and marketing initiatives is focused on international and domestic Chinese businesses, with emphasis given to business groups involved in technology and logistics reflecting the increasing relevance of regional technology parks to integrate with global value chains across a range of sectors.
Strategic cooperation agreements with Singapore’s IDA International and with The Tianjin Housing Group were signed on 5 December, 2014. The Company is now working with IDA International to determine the feasibility for a hightech data storage zone within the Xuancheng Singapore Technology Park. The Tianjin Housing Group will offer expertise in the construction of the Xuancheng Singapore Technology Park and provide access to almost $20 million in construction funding.