Supplement | HBS Case Collection | June 2010 (Revised December 2013)

Hang Lung Properties and the Chengdu Decision (B)

by John D. Macomber, Michael Shih-Ta Chen and Keith Chi-Ho Wong

Abstract

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 firm's 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.

Keywords: Geographic Location; Auctions; Bids and Bidding; Infrastructure; Competitive Strategy; Valuation; Real Estate Industry; Chengdu;

Citation:

Macomber, John D., Michael Shih-Ta Chen, and Keith Chi-Ho Wong. "Hang Lung Properties and the Chengdu Decision (B)." Harvard Business School Supplement 210-092, June 2010. (Revised December 2013.)