Hongkong Land Holdings Ltd, a unit of the Jardine Matheson Group, announced that it has acquired a prime 23.1 hectare mixed-use site on the West Bund of Shanghai from the Chinese government via auction on 20th February 2020 for RMB31,05 billion (approximately US$4.4 billion).
The land is located alongside the Huangpu River South Extension area in the Xuhui District of Shanghai collectively known as the land for the West Bund Project, with a total site area of 231,300 square metres and an accountable gross floor area of 1,087,050 square metres.
”The acquisition provides the Group with an attractive opportunity to develop and operate a commercial complex of scale in a prime location in Shanghai, the predominant commercial hub of the Chinese mainland,” said Hongkong Land in a statement.”The land will be used primarily for Grade-A office, retail, residential and hotel purposes.”
The term of the land use rights is 40 years for retail and hotel purposes, 50 years for office purposes, and 70 years for residential purposes. Approximately 24% of the accountable gross floor area may be developed for sale in accordance with the land grant.
The development of the land will be in multiple phases and is expected to complete by 2027. ”The Group has extensive experience in developing large commercial projects for long term investment in Greater China and Southeast Asia. Post completion, the project is expected to provide the Group with a stable stream of recurring earnings,” the company said.