NANSHAN District has adopted innovative land auction policies to encourage enterprises to jointly bid for land parcels and build buildings to facilitate their development.

Fifteen enterprises have jointly bid for an industrial land parcel covering 10,000 square meters in Liuxiandong, Nanshan District, and built office buildings for their own use.

The buildings provide 180,000 square meters of office space for the 15 enterprises, of which 12 are publicly listed, that will generate 150 billion yuan (US$21.68 billion) in revenue in five years.

The future development of enterprises in Nanshan District is bottlenecked by the shortage of land. Among the district’s 150 listed companies, only 50 own their own properties. Many enterprises are facing a dilemma. They don’t have sufficient funds to get land from the government for future development, although they want to stay in Nanshan because of its good business environment.

Research conducted by the district’s industry and information bureau showed that an enterprise with annual revenue standing between 500 million yuan and 1 billion yuan generally needs 100,000 square meters of floor space for development. However, an industrial land parcel for auction can generally be developed into much more than 100,000 square meters of floor space. It costs a lot to independently bid on a land parcel, and even if a company has sufficient funds to buy a land parcel for a building, there will be a lot of floor space left unused.

Allowing enterprises to jointly bid for land and share the office building built on it can make full use of the land resources and solve the bottleneck that hinders the development of enterprises,” according to a Xinhua report, quoting sources from the Nanshan District Government.

Wote Advanced Materials has four floors of a building it jointly built in the Liuxiandong industrial park. According to Li Yandian, assistant to chairman with the company, the 12,000-square-meter floor space will solve problems for the company in the coming years.

Public services offered by the government, such as canteens, parking lots and bus services, in the industrial park have also solved problems for the employees in finding places to eat, park and socialize.

At present, many enterprises in Nanshan District have submitted applications to jointly build office buildings. The district will introduce three to five land parcels for joint bidding, where the enterprises can jointly build their office buildings.

In another development, the city’s land authority and urban administration had dismantled 6,700 square meters of illegal structures and cleared 75,000 square meters of land that was occupied by illegal structures in the Xiangmihu area as of Tuesday.

So far, the illegal structures in the northern part of Xiangmihu Resort have been dismantled, paving the way for turning the area into a high-end business and culture center. (Han Ximin)