Chinese real estate firm plans to invest $ 3 Billion

Chinese real estate firm plans to invest  
$ 3 Billion

Li Hailin, president of the Chinese firm DongDu International Group, sits at Pier 21 in May 2014 prior to signing a memorandum of agreement for future development. DDI’s plans for a billion-dollar resort on the Eastern Shore are still proceeding, but at a slower rate since China’s economic slowdown.

Amid China’s economic slump and stock market turbulence, a Chinese real estate firm has slowed plans to build a sprawling billion-dollar resort on Nova Scotia’s Eastern Shore.

DongDu International Group of Shanghai, known as DDI, has proposed a 1,200-hectare blockbuster development in Indian Harbour Lake and Marie Joseph, Guysborough County.

Warden Michael Mosher of the Municipality of the District of St. Mary’s said the firm’s real estate plans are still a go, just at a slower pace.

“It certainly hasn’t stopped the project in any way,” Mosher said Thursday. “Just everything has come to a little slower pace.

“It gives us all some time to get everything up to speed and do a little bit of homework. We certainly are willing to wait for a project of that magnitude.”

He said although the Chinese firm had initially expressed an interest in having shovels in the ground this summer, he said the municipality learned this spring that the timeline had been extended.

Yet DDI spokeswoman Natalie Silver said the company has had a long-term investment horizon in sight since the get-go.

“Internally, we knew it would be a slow-and-steady-wins-the-race sort of development. Real estate development is a very long process and there are a lot of different moving parts, so we wanted to make sure we get it right.”

Silver said the market turmoil in China could actually work to DDI’s advantage as Chinese investors look to invest outside the stock market.

“It’s kind of good, in a way, because more people in China could be looking to diversity their assets.”

In addition, she said the lower loonie makes investing in Canadian real estate more attractive than other markets such as United States and Australia.

“With the dollar where it is, it’s such a great investment right now because it would be about 25 per cent cheaper.”

Meanwhile, Silver said DDI has submitted its engineering plans to the municipality and is working on applying for bylaw changes.

“The next step will be to discuss bylaw amendments because we would be putting in waste-water management systems, which is something that the municipality has never done before.”

She said the real estate firm will need to obtain environment assessments and permits from Fisheries and Oceans Canada to move ahead with the waste-water management system.

“There are a lot of moving parts. We’re taking our time to make sure we get this right.”

DDI plans to invest up to $3 billion on the Eastern Shore resort, focusing on single-family homes featuring abundant green space.

“We want to provide our international clients with a taste of rural living they wouldn’t necessarily experience living in Shanghai,” Silver said.

The company will market its resort heavily among Chinese investors, especially the parents of the nearly 3,800 international students from China studying in Nova Scotia every year, she said.

Mosher said he expects the company may be in a position to apply for building permits by next summer.

He said the development, which is billed as a luxurious, eco-friendly hideaway with villas, swimming pools, spas, tennis courts and horse stables, will have a significant impact on the community.

“It would almost triple our tax base. We’re a very rural municipality, so it would be a great benefit for us if everything came to fruition.”

Given that DDI plans to build a community, Mosher said there has been minimal dissent.

“It’s not a big industrial operation, they want to build homes. There will always be questions, but most people are on board.”