Legend Group, China's top computer maker, recently started its first property project in Beijing's Zhongguancun area to diversify its business.
The firm has invested 2 billion yuan (US$240 million) in the Legend Raycom InfoTech Park in the west of the city.
The move will help make the environment better in Zhongguancun, the renowned high-tech hub, according to Chen Guodong, president of Legend Raycom Ltd.
He said it was the formal start of Legend's development in the field of commercial office buildings and residential apartments.
The park has equipment and management to compete with high-class office buildings in the city's eastern area, according to Chen.
As high-class office buildings were constructed in eastern Beijing, Zhongguancun gradually declined and many big firms moved out of the area.
Dell, Hewlett-Packard, IBM, Intel and most big overseas information-technology firms moved east, leaving Microsoft as one of the few to remain in the Zhongguancun area.
Legend Raycom will help convince the big names to return to Zhongguancun by providing the best infrastructure and management, Chen said.
But industry insiders said Legend's move is quite risky as the eastern area, known as the Central Business District, is in a convenient location, with abundant parking space and nearby shopping malls.
Legend said the city government had promised to help promote the new park.
Not satisfied with its 30 per cent share of the domestic computer market, Legend Group set up a real-estate branch last year to try to explore the high-tech-related property business.
The property branch is under the direct supervision of Liu Chuanzhi, the Legend Group chairman.
It will focus on Beijing and Shenzhen, according to company executives.
Zhongguancun, the birthplace of Legend, has incomparable advantages for high-tech industries, Chen said.
"With dozens of universities and research academies locate in Zhongguancun, the area boasts the highest density of professionals in China," he said.
Cadence, a big United States electronic firm, has already become the park's first tenant.
It announced it would invest US$50 million in China.
(China Daily January 23, 2002)
