Shanghai developer Lujiazui Corp pledges US$1.37 billion lawsuit will prove claim about polluted Suzhou land parcel
- Developer sued Suzhou Steel Group and four government and research organisations, saying 14 sites have worse pollution than was disclosed
- The suit could be the largest by value in the country’s real estate sector
State-owned Chinese developer Lujiazui Corp has vowed to safeguard the interests of its shareholders as it seeks more than 10 billion yuan (US$1.37 billion) in compensation for what it claims is a heavily polluted land parcel in Suzhou, west of Shanghai.
The company, officially known as Shanghai Lujiazui Finance and Trade Zone Development, said in an exchange filing on Monday that a lawsuit it filed nine days ago in higher court would reveal the truth and minimise financial losses. It also said that its business operations remain normal.
The developer sued Suzhou Steel Group, along with four government organisations and research institutions in Suzhou, stating that 14 sites it bought from the steelmaker turned out to have severe soil pollution. The suit could be the largest by value in the country’s real estate sector.
“The case will further siphon off interest in investing in China’s property market,” said Yin Ran, a start-up and property investor in Shanghai. “It is the best example that shows the high risks in the country’s real estate industry.”
Suzhou Steel Group said in a statement on its official WeChat account on Friday that the group had truthfully disclosed that the sites were partially polluted, and that assessment and review had been conducted by qualified third-party organisations.
