Hang Lung Properties and the Chengdu Decision (B)
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Reference: HBS-210092-E
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Year: 2009
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Number of pages: 3
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Geographic Setting: China;Hong Kong
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Publication Date: Jun 29, 2010
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Fecha de edición: Dec 16, 2013
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Source: HBSP (USA)
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Type of Document: Case
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Industry Setting: Real estate, rental & leasing;Retail trade
Second phase of auction for a prime retail development parcel in Chengdu, China. Competition forces the firm to revisit all of its land purchase criteria. Hang Lung Properties is known for rigorous due diligence, for discipline in buying property, and for good understanding of market cycles. The (B) case reveals the firms assumptions in the Chengdu situation, as compared to what students had to derive on their own in the (A) case. The (B) case also reviews strategic focus with respect to asset classes and geography, as well as best practices for what to look for in cities that will be attractive for superblock mixed use projects.