Treasury Holdings to plough €1.2bn into Chinese development

Property developers Treasury Holdings today announced a massive €1.2bn investment in a housing and leisure development in one of China’s fastest-growing cities.

Treasury Holdings confirmed it will develop the vast complex through a joint venture with a Chinese company on an island just north of Shanghai city.

Taoiseach Bertie Ahern, who is in Shanghai as part of Ireland’s largest ever trade mission, witnessed the signing of the deal. The company said it is the largest single property development ever undertaken by an Irish company.

Treasury Holdings development director Rob Tincknell said the deal was now possible as a 16-mile bridge and tunnel is being built linking the island north of the commercial city.

He said: “The aim is to create an international leisure and entertainment destination, something that will draw people not from just China but from all over the world.”

Mr Tincknell added: “We estimate that it is the largest single project in the People’s Republic of China at the moment.”

Treasury Holdings, which is developing Spencer Dock in Dublin’s docklands, said the site and development potential will double their portfolio.

He added: “This is a major step forward in a country where the economy is good, the prospects are good and we think the prospects for the site is extremely good.”

Mr Tincknell said the development will be mainly low-rise and include office and retail facilities on a 1,000-acre site.

Shanghai is one of the fastest-growing cities in the region, developing at a rate of 12 to 13%.

Mr Tincknell told RTE radio: “At the moment, a four or five-bedroom house in a suburban area of Shanghai is fetching about €350,000 but with the population set to grow to 60 million by 2020, we think that is going to grow quite quickly.”

The trade delegation, which is being led by Mr Ahern, travels on to Hong Kong today on the third and final leg of the trade mission.