* Tencent spends $249 mln on land at Shenzhen economic zone
* Legend Holdings' equity arm Hony Capital pays $104 mln
(Adds size of land, context)
HONG KONG May 22 Tencent Holdings Ltd
and Hony Capital (Beijing) Co have bought land in a economic
zone in Shenzhen, as the pilot project seeks high-profile names
to attract investment.
Tencent paid 1.55 billion yuan ($248.65 million) for 190,000
square metres of Qianhai Bay, and Hony Capital paid 646 million
yuan for half the size, an official at the Shenzhen Land and
Real Estate Exchange Center told Reuters by telephone on
Qianhai was widely touted as a potential "mini-Hong Kong"
when established in 2010 targeting companies involved in
information technology, logistics and finance.
At just an hour's drive from Hong Kong, the project hoped
the proximity to expertise in offshore yuan would attract
financial institutions and encourage them to provide
yuan-related services such as trade settlement.
But the project has struggled to attract big-name bidders to
land auctions beyond property developers.
At the latest land sale on Thursday, Qianhai auctioned four
sites totalling 582,000 square metres to IT-related and private
equity bidders satisfying specific business and revenue
Tencent won the site reserved for a listed internet company
with revenue above 40 billion yuan - criteria only China's
largest listed Internet company could meet, industry observers
Local electronics and e-commerce companies won the other two
sites, bringing the auction's total sales to 5.7 billion yuan,
the official said.
Shenzhen-based Tencent declined to provide immediate comment
auction. Private equity firm Hony Capital, whose parent Legend
Holdings Corp is the controlling shareholder of the Lenovo Group
Ltd, declined to comment.
($1 = 6.2337 Chinese Yuan)
(Reporting by Clare Jim in HONG KONG and Paul Carsten in
BEIJING; Editing by Anne Marie Roantree, Miral Fahmy and