Shenzhen Tonge gets nod to postpone Baoan project

Shenzhen Tonge (Group) Co. Ltd, a China-based real estate developer, said that it has won regulatory approval from the local government to postpone its development of Baoan project for one year, as per sources reports.

Pursuant to an earlier contract between Tonge and Shenzhen municipal government, the project, namely "Tianjian Fashion Space", was scheduled to start construction in October last year and complete on Jul. 28, 2009. Shenzhen Tonge will be fined if the company fails to carry out the plan in accordance with the contracts. The local government maintains the right to take back the land if the project cannot be finished two years after the designated time.

Reportedly, Shenzhen Tonge is the first property developer in mainland China granted such an approval. The company submitted the application based on two reasons – the problematic supplementary public facilities and sagging house prices in Shenzhen.

Newspaper reports said the Chinese company spent RMB 327 million on the acquisition of the land two years ago. The land is located in the center of the thriving and prosperous Baoan district.