Tishman Teams With Lenovo on South China Real Estate DevelopmentBy
The $1.35 billion project is companies’ first joint venture
Lenovo’s international-business units to be based at complex
Tishman Speyer is teaming with Lenovo Group Ltd., the world’s biggest personal-computer maker, on a 9 billion yuan ($1.35 billion) real estate project in Shenzhen, China, marking the developer’s first foray into the country’s southern region.
The 2.2 million-square-foot (204,400-square-meter) office-and-retail development, to be built in the city’s central business district, will house the headquarters for Lenovo’s international-business units, New York-based Tishman said in a statement Wednesday. The project is scheduled to be completed in the third quarter of 2020.
“We’ve had the ambition to enter into South China since our entry into the country 10 years ago,” Tishman Chief Executive Officer Rob Speyer said in an interview. “Shenzhen was the first open market in China and has one of the most mature real estate markets and some of the best infrastructure” in the country.
The project, which has been under discussion for several years, is the two companies’ first joint venture, Speyer said. Lenovo, based in Beijing, will occupy about 40 percent of the 1.4 million square feet of office space. The development also will include about 780,000 square feet of retail.
Tishman, which oversees a portfolio of $78.2 billion of real estate around the world, including Rockefeller Center and Yankee Stadium in New York, is developing 20 million square feet of real estate in China. One of the company’s largest projects is The Springs in Shanghai, home to a Nike Inc. campus.
Tishman and Lenovo are planning the development in Shenzhen, a technology hub, amid slowing growth in China. Speyer said Shenzhen has been one of the strongest real estate markets in the world for the past several years, and that its performance is decoupled from other regions in the country that may struggle.
“You can’t characterize the Chinese real estate market with a single generalization,” he said.
The venture with Lenovo is Tishman’s third fund denominated in China’s currency. The developer employs 250 people in the country.