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Q2:After the improvement for use of national non-public use land in collaboration with the NPA, can the competent authority of the target business independently and directly designate a developer to engage in the development?

A2:     According to Point 10 of the Operation Directions for National Property Administration Join Force with Competent Authorities in charge of National Non-public Real Estate Development, the competent authority of the target business should implement the improvement for use of national non-public real estates through open tendering without designating any specific developer to engage in development. After signing an improvement for use contract with NPA branches, the competent authority of the target business should establish the invitation to tender (ITT). Open tendering will only be organized after the NPA branch agrees with the ITT. The competent authority of the target business must not independently and directly designate a developer to engage in the development. However, the gain (e.g., royalty and rent paid by the developer) after improvement for use may be shared by both parties based on the proportion specified in the improvement for use contract.

Release date:2019-10-16 Last updated:2019-11-12
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