FOSHAN, Guangdong province: Shui On Land Ltd broke ground on a multi-billion-yuan project yesterday to develop land at the heart of the city's most treasured historical area.

The project, Foshan Lingnan Tiandi, is located in the Chancheng district of Foshan.

It is a mixed-use redevelopment project with residential, commercial and heritage elements in the heart of the city.

The aim of the project is to help propel Foshan onto a "higher plane" of development, according to Vincent Lo, chairman and chief executive officer of Shui On Land.

"The project will be developed in five phases and is scheduled to be completed in 2020," said Freddy Lee, the executive director of Shui On Development, a subsidiary of Shui On Land. "We spent 7.5 billion yuan to purchase the land, which occupies 1.5 million sq m."

He said the project's total cost will be about 20 billion yuan.

The core areas of the Foshan Lingnan Tiandi project are Foshan Zumiao and Donghua Lane, both designated as national cultural relics protected by the central government.

Another 22 historical sites, including Kan's Villa, Marriage-house, Confucius Temple and Li Chung Shing Tong Shop, will be blended into the project.

Phase one of the project will yield 175,700 sq m. Its hotels and commercial sections are expected to commence operation in 2010, before the Asian Games in Guangzhou begin, Lee said.

Phase one will feature a five-star hotel, a boutique hotel, commercial areas, and high-end and low-rise residential complexes.

"We will strictly protect the original face of the historic sites," Lee said.

Foshan Lingnan Tiandi aims to be a cultural hub dotted with theaters, exhibition halls, galleries, museums and workshops.

Spacious public areas, such as greeneries, squares, artificial lakes and water runways, will also be built.

Even though the real estate market is cooling down on the mainland, Lo said he is still very confident about the future of the industry, given that land is limited but demand keeps growing.

He said they have enough funds for the big project, but they are also welcoming new investors from home or abroad.

(HK Edition 10/09/2008 page2)