Swire Properties (“Swire Properties”) entered into a Framework Agreement with 上海前灘實業發展有限公司 (Shanghai Newbund Industrial Development Co., Ltd. ) (a subsidiary of 上海陸家嘴金融貿易區開發股份有限公司 (Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd.) (“LJZ Company”)) today signifying their intention to jointly develop a retail project (the “Project”) with an expected total gross floor area of approximately 124,000 sqm in Qiantan, Pudong New District in Shanghai. Entry into the proposed joint venture and undertaking the Project are subject to satisfaction of conditions precedent.
Located in the planned business area of Qiantan, the site for the Project will be connected to a three-line metro interchange station. If the joint venture is formed, it is expected that Swire Properties will have a 50% interest in the Project. The Project will benefit from both the substantial local property development experience of LJZ Company and Swire Properties’ strength in property development and management.
“After HKRI Taikoo Hui, this will be our second development in Shanghai and our first project in Pudong, an area that has significant long-term growth potential. We are excited about this opportunity to participate in an important retail project,” said Guy Bradley, Chief Executive of Swire Properties. “We look forward to working with LJZ Company, one of Shanghai’s leading developers, and contributing our international and local experience in developing and managing large-scale retail developments.”
Qiantan is envisioned as a new international business district of Shanghai as well as an integrated commercial, residential and cultural hub. Qiantan is expected to benefit from Shanghai’s rapid urbanisation and the increasing demand for commercial space outside the Lujiazui financial centre.
In Mainland China, Swire Properties has five large-scale mixed-use projects, namely Taikoo Li Sanlitun and INDIGO in Beijing, TaiKoo Hui in Guangzhou, Sino-Ocean Taikoo Li Chengdu in Chengdu, HKRI Taikoo Hui in Shanghai, and one potential mixed-use project in Dalian.