MEYDAN IN JOINT VENTURE TO DEVELOP TIANJIN HORSE CITY, CHINA

Sunday, 28 March, 2010

Project Aims to Establish an Equestrian College, Protect Interests of Horses, Develop a Horse Industry, and Promote Commercial Horse Racing

MARCH 28, 2010 DUBAI - Meydan today announced plans for a joint venture project; Tianjin Horse City in China. Tianjin Horse City which will be established in Ninghe County, Tianjin in 2010, and will train 8,000 equestrian professionals, breed 1,000 high quality studhorses, produce high quality horse feeds, conduct horse auctions, hold international and domestic professional horse races, promote and impart equine culture and knowledge to youths, provide tourism services for the public, and protect the wellbeing and interests of equines.

With a total land area of 5,000 mu and in addition to an equestrian college, feedstuff plant, breeding base, horse hospital, and quarantine centre, Tianjin Horse City will also include five-star to seven-star luxury hotels, a clubhouse, commercial offices, and residential facilities. It is estimated that the project will pay hundreds of millions of taxes and profits to the State within five years, provide employment for 10,000, and develop a horse industry economy that will establish production franchise of standard scales across China. Tianjin Horse City has filed its application to the Chinese Equestrian Association for the establishment of a national equestrian sports and horsing racing training base.

Tianjin Horse City is to be jointly established by Meydan City Corporation (Dubai,UAE), TAK Design Consultants (Malaysia), Zhouji Jiye (China) and Tianjin Farm Group (China). The Group will help fulfil the gaps in the equestrian sports and horse culture industry economy in China, and merge the modern equine industry operations system in the coming 15 years.

Five-Year Development Plans

The Company has prepared two five-year plans.

The first plan spans five years and eight months from May 2010 to December 2015. By the end of 2011, the equestrian college, studhorse base and feedstuff plant will be completed and put into trial operations. By the end of 2012, the horse trading centre, hotel, clubhouse, shopping centre, and entertainment centre will be completed. By the end of 2013, offices and living facilities will be completed. By 2014, national standard club events, national equestrian club and national equestrian park franchises will be developed, and the preparation of horse culture communication market and international events market will commence.

Meanwhile, research, drafting and preparation of equestrian standards will commence in May 2010 and be completed and published in December 2013. The Group will pay attention to and make proposals on the policy of the State in respect of commercial horse racing, seek the support of the State and local governments, and procure the equestrian sport to develop in a direction which will benefit the State, the people and the interests of equines.
The second five-year plan spans from January 2016 to December 2020, which will focus on the listing of the Company and cohesion with the international horse industry.

Projects:

1. Hua Zhi Jie International Equestrian College
The equestrian college is a college jointly established by the equestrian park, agricultural university, and the sports university. It is responsible to train sufficiently qualified professionals as future equestrians to support the horse industry. The college will have veterinary courses, horse stall management, training courses for equestrian coaches, sportsmen, umpires, horse breakers, horse breeding, club management, events management and equine industry design. The college will adopt a credit system, with two-year and three-year programs, and will recruit students nationwide. The college will be put into operation in 2012, and will recruit 1,000 students with an annual growth of 10% intake. There will be 50 teachers and assistant teachers.
The college will have a land area of 4,000 mu, and a gross floor area of 600,000 m2. The total investment will be RMB10 billion (roughly US$1.46billion) Its facilities will include a horse hospital, quarantine centre, multi-purpose equine facilities, spectator terraces, horse stalls, race tracks, indoor horse stable, feedstuff plant, outdoor sports field, and outdoor exercise fields.

2. Horse Breeding Base
It will plan to breed 1,000 different blood horses, most of which will be derived from good stud horses in the world. Horse breeding traditionally has a long cycle, with a breeding period of one year, a lactation period of 7-8 months, and a training period of 2-3 years. A highly ranked imported blood horse may sell at RMB1-10 million or more.
A horse will consume about 10kg fodder and other feedstuff. 1,000 horses will produce about 10 tons of manure. The base will use a biomass pool to generate methane for daily cooking, heating and lighting. An annual production of marsh dregs and marsh liquids may be used to fertilize 7,500 mu of nearby farm land. Marsh liquid may also be used to spray farm products in place of pesticides, or be supplied to nearby poultry farmers as feedstuff additives. Such practices will be both economically beneficial and environment friendly.

3. Feedstuff Plant
The plant may produce 10,000 tons of compound feedstuff, which may satisfy the needs of 2,700 horses for a year. The production will combine imported formulas, technology, key equipment, and some materials with domestic processing, packaging and marketing, with a target of 50% export. When the quality of production stabilizes, the proportion of domestic materials will be increased gradually.

4. Horse Auction Market
Horse auction elements will be constructed according to market requirements, and the direction of breeding will be guided by market operations. It is prepared to establish an agency relationship with international and domestic horse breeding areas, adopt video technology for horse auctions, and provide such horse trade services as customs declaration, animal inspections and quarantine, customs clearances, industry, commerce and tax procedures, breeding, medical, logistic, insurance and guest reception services.
The horse market will have an initial trade volume of 700 horses a year, with an annual increase of 10%, up to 1,050 horses a year in the fifth year.

5. Equestrian Club and Equestrian Part Franchise Company
The franchise company will develop 500 standard equestrian clubs and 500 equestrian parks, with 25,000 employees and 50,000 studhorses, with a production value of RMB30-50 billion.

6. Equestrian Event Company
The equestrian event company will organize various equestrian events under the authorization of the equestrian association, with the funds from sponsors and the support of local governments.

The Company will make efforts to establish the China Equestrian Professional League. In particular, in the first year, the company will standardize various equestrian matches, train various talents, and enhance the level of equestrian sport and the quality of horses in China; in the successive two years, the company will use formal matches to promote the construction of standardized clubs, establish industrial codes and standards, popularize professional equestrian matches, lead equestrian clubs to become international in standards, and promote the equestrian and horse industry to adopt healthy, profitable and sustainable development towards modernization, professionalism and mass consumer appeal.

7. Horse Quarantine Centre
The horse quarantine centre will be constructed at a location close to the airport. It is an important component of the horse trade centre and horse racing field.

8. Horse Racing Field
The commencement of the construction of a horse racing field will depend on the decision of the State on commercial horse racing. The group will be fully prepared for such a construction.

9. Hotel, Clubhouse, Shipping Centre and Recreational and Entertainment Centre
There are plans to construct a five-star to seven-star international hotel with a capacity for 3,600 guests. The clubhouse will be composed of premium and mid class clubhouses. Offices and living facilities will be able to accommodate 20,000 people.

The recreational and entertainment centre will be constructed as a tourist resort for horse riding, horse breeding, horse viewing and equestrian sports.

 

1. About International Equine Group
International Equine Group Ltd (IEG) is the flagship investment arm of shareholders Meydan City Corporation and Teo A. Khing Design Consultants Sdn Bhd (widely known as TAK). IEG will be, subject to contract, responsible for the financing and invesmtents in Tianjin Horse City. The shareholder Meydan City Corporation will provide premier resources for all technical and market inputs required for the horse racing industry in Tianjin Horse City. Meydan and its associates will bring current practices and industry’ know how in this joint venture. The shareholder TAK will provide all the technical planning and design inputs, project management, and construction management services and value engineering services for the implementation and completion of the project.

2. About Meydan City Corporation
Meydan City Corporation is the developer of the new and iconic Meydan Grandstand in Dubai, UAE. The Meydan Grandstand is the venue of the Dubai World Cup, the richest raceday in the world. Meydan is tasked to oversee the development of Meydan City, a complete integrated modern city built around the racecourse district and serving the needs of the horse racing community. Horse training centres, mixed-use office, commercial, residential, and retail developments form the different components of Meydan City. All the developments are linked by an extensive canal network. The city will promote and feature modern architecture, the latest building technology, and environment-friendly developments.

3. About Teo A. Khing Design Consultants Sdn. Bhd. (TAK)
TAK is the world-renowned UAE/Malaysian design planning and engineering firm that provided the technical expertise in planning and design for the Meydan Racecourse. The company is the master-planner for Meydan City and the architect for the Meydan Grandstand. TAK provided project management and construction management services for the completion of the Meydan Grandstand in a span of three years. The company is well-supported by its 500-strong personnel with offices in Malaysia, Singapore, and the UAE.

4. About Hua Zhi Jie Horse Industry Investment Co Ltd.
Hua Zhi Jie Horse Industry Investment Co Ltd., a company jointly established by the above international strategic investment groups and domestic international groups, project that the total project value will be RMB24 billion in stages in the first five-year construction period to establish its headquarters in Beijing and to construct the Tianjin Horse in Ninghe County, Tianjin. The proposed development will include the equestrian professional training base, studhorse breeding base, horse feedstuff development, processing and production base, horse auction market, national and international professional equestrian events market, equestrian and horse industry market, horse culture communications market, national equestrian clubs franchise, national equestrian parks franchise, and equestrian-related commercial, offices, and recreational and entertainment facilities. By ways of construction, acquisition, participation and cooperation led by equestrian events, it will adopt a model of franchise and standardized operations, it will integrate the ten major equestrian sectors in China, plan a national horse industry framework, establish industry supply chains, develop the potentially huge market of China, with the objectives to apply for overseas listing within 6-8 years.
 

 

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