Singapore’s CDL invests RMB900 million in a Shanghai commercial project
City Developments Limited’s (CDL) wholly-owned subsidiary, CDL China Limited (CDL China), has entered into an equity transfer agreement to acquire a prime Shanghai commercial project for a total transaction value of RMB 900 million (approximately S$186 million).
The acquisition will be made through the purchase of a 100% equity stake in Shanghai Meidao Investment Co. (Shanghai Meidao).Shanghai Meidao owns the commercial development currently known as Meidao Business Plaza in Shanghai’s fast-developing Hongqiao Central Business District (CBD).
Meidao Business Plaza is strategically located in Huacao, Minhang District, within the Hongqiao CBD.It is situated next to the Shanghai Hongqiao International Medical Center and is surrounded by many international schools, upcoming R&D centres and business parks. Enjoying excellent connectivity, Meidao Business Plaza is around 10 minutes’ drive to the Hongqiao Transportation Hub, which includes Hongqiao International Airport and a network of railways, and 15 minutes’ drive to the Shanghai National Exhibition and Convention Center.
Established by the Shanghai government in 2009 to promote the city’s growth as an international trade centre, Hongqiao CBD covers an area of 86 square kilometres (sq km) and integrates the Changning, Minhang, Jiading and Qingpu districts. Its core area of 4.7 sq km is anchored by the massive Hongqiao Transportation Hub. Hongqiao CBD is one of the fastest growing business areas in Shanghai and will strengthen the connectivity between Shanghai and other key cities in the Yangtze Delta River Region as well as support the long term economic growth of the city.
Meidao Business Plaza, with total gross floor area (GFA) of approximately 32,300 square metres (sqm), is currently in its final stages of construction and is expected to be completed by 2H 2017. The development comprises five 9-storey office towers and two levels of basement carpark with about 351 lots. Meidao Business Plaza has been approved for division into strata-titled units ranging from 237 sqm to 522 sqm. A LEED (Leadership in Energy and Environmental Design) Gold Award development, it also features a sky garden atop all its five office towers.
Mr Mark Yip, CEO of CDL China, said, “As part of CDL’s strategic diversification strategy, China is one of our key overseas markets for growth. Since CDL China was set up in 2010, we have established our foothold in the key upper tier cities of Chongqing, Shanghai and Suzhou, with four residential and mixed-use development sites totalling over 500,000 sqm of GFA. Our residential projects in China have continued to achieve steady sales and are contributing well to CDL’s profit.”
“Adding to our portfolio in China, this is a rare opportunity to acquire a soon-to-be-completed commercial project in Shanghai that will further enhance our recurring income streams. It has a prime location in the Hongqiao Central Business District which has been identified for fast growth in the Chinese Government’s 12th five-year plan and is of strategic importance to Shanghai. Hongqiao Central Business District also aims to attract large private enterprises and listed multinational companies. It is estimated that more than 650,000 employees will work in the area by the end of 2020.We will continue to seek suitable investment opportunities to grow our presence in China.”