Hong Kong-listed property investment company Hysan Development Company Limited (Hysan) will acquire a commercial property project located at Nos. 668 and 688 Xinzha Road in Jing’an District, Shanghai for RMB3.5 billion (appr.US$541m).
The project is strategically located at the heart of Jing’an district, within a three-minute walk from Shanghai Natural History Museum Station and is one stop away from Nanjing West Road station and Hanzhong Road Station, being an interchange stop of three major metro lines (1, 12 and 13).
The 24-storey, newly completed building features approximately 50,000 square meters of ready-to-rent grade A office space. Hysan will conduct asset enhancement works for the approximately 18,000 square meters retail space, with completion expected by mid-2023.
The project is a rare investment opportunity in Shanghai’s well-established Jing’an central business district and has strong value-add potential with commercial development opportunities with adjacent areas set out in the municipal government’s master plan, according to the company.
”The district presents significant and versatile development potential, with current and future floor area available for development exceeding 600,000 square meters. Set out in the Shanghai municipal government’s latest master plan, the three large-scale adjacent sites are expected to launch for sale and development in the next few years. As the precinct develops and matures, the rents of high-quality office properties in the area will be comparable to those in the core business district of Nanjing West Road,” said the company in a press release.
”The East Siwenli cultural and architectural conservation area adjacent to the project preserves the historical alleys of Shanghai’s old city. The area has a similar character to Hong Kong’s Lee Gardens business district in Causeway Bay with a diverse mix of high-rise and heritage buildings, and a strong sense of local community and cultural flavour.”
Irene Lee, Chairman of Hysan Development, said, “Hysan has a strong conviction in the market potential of Mainland China. This acquisition marks a very important step for our long-term planning and development in Shanghai. We will continue to identify new development opportunities in Shanghai, the Greater Bay Area and other tier one cities across China.”
Ricky Lui, Chief Operating Officer, said, “The project is a rare investment opportunity with immense development potential at a premium location in Shanghai. The property enjoys advantages in commerce, connectivity, and cultural heritage. Hysan has been operating and curating Lee Gardens in Hong Kong for nearly a hundred years, successfully integrating traditional culture and innovative communities. The Group is confident that it will bring its business philosophy and smart community model to Shanghai to create a bespoke and sustainable community.”
The deal is expected to complete by early 2022.