GERMAN home improvement retailer OBI is expected to clinch a deal at the Second China (Shenzhen) Consumer Commodity Procurement Fair Saturday with China Merchants Real Estate (CMRE) (Shenzhen) Co. Ltd. to set up a store in the Garden Center of Shekou.

Occupying a total area of 15,000 square meters, the store will be operational in early 2005.

OBI is the second biggest home improvement retailer in Europe and the fourth largest multinational of its kind in the world.

"By introducing OBI, we aim to upgrade the commercial service standards in the area and improve the shopping environment for residents," said a source with the CMRE Shenzhen company.

Garden Center, a 70,000-square meter commercial center situated at the north of Gongye Dadao (Industry Road) and developed by CMRE at a cost of 500 million yuan (US$60.6 million), is the gateway to Shekou from Nantou. With a total floor space of 20,000 square meters, the first phase of the center has attracted world retail giant Wal-Mart to establish the biggest standard Wal-Mart shop with the most sales volume of all its stores in Asia.

"The remaining area at the center will be reserved for department stores," said the source.

The reason OBI chose the Garden Center was that the German company foresaw a promising future for the area. First, the planned Shenzhen-Hong Kong bridge, or the Western Corridor, would pass the area, adding to the geographic importance of Shekou, one of the transport hubs in the Pearl River Delta area. Second, consumption was increasing with more residents moving into new housing estates in Shekou and Nantou. Third, CMRE's comprehensive strength and credibility were guarantees.

"We believe it will be a win-win situation," said the source.

 
Editor: Wings