Its Potential Second Development in Shanghai
Today, Citi-Fame Development Limited 譽都發展有限公司 (“Citi-Fame”), an indirect wholly owned subsidiary of Swire Properties, entered into an equity transfer agreement with上海前灘實業發展有限公司 (Shanghai Newbund Industrial Development Co., Ltd.) (“Shanghai Newbund Company”) for the acquisition of a 50% equity interest in 上海前綉實業有限公司 (Shanghai Qianxiu Company Limited) (“Shanghai Qianxiu”) from Shanghai Newbund Company at a consideration of approximately RMB1,349 million (the “Acquisition”). Completion of the Acquisition is subject to satisfaction of conditions precedent (including approvals from or filings with relevant government authorities).
Shanghai Qianxiu is a direct wholly owned subsidiary of Shanghai Newbund Company, which is owned as to 60% by 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.) and 40% by 上海前灘國際商務區投資(集團)有限公司 (Shanghai Qiantan International Business District Investment (Group) Company Limited), each a state-owned enterprise. Shanghai Qianxiu holds the land use right to a parcel of land located in Qiantan, Pudong New District, Shanghai (the “Land”).
If the Acquisition is completed, Citi-Fame and Shanghai Newbund Company will each hold a 50% interest in Shanghai Qianxiu. The joint venture will develop a retail project on the Land, and the development (the “Project”), in an area envisioned as Shanghai’s newest international business district, is expected to have a total gross floor area of approximately 1,250,000 sq ft (116,000 sqm).
“We are ready to form a joint venture with Shanghai Newbund Company to embark on our second development in Shanghai,” said Guy Bradley, Chief Executive of Swire Properties. “This is an exciting opportunity to participate in an important retail project in Pudong, an area that we believe has significant long-term growth potential. We will undoubtedly benefit from working with Shanghai Newbund Company, which has substantial local property development experience.”
Located in the planned business area of Qiantan, the Land will be connected to a three-line metro interchange station. It is expected that Qiantan will become an integrated commercial, residential and cultural hub, benefiting from Shanghai’s rapid urbanisation and the increasing demand for commercial space outside the Lujiazui financial centre.
The Project will become Swire Properties’ second development in Shanghai, after HKRI Taikoo Hui in Puxi, and its sixth project in Mainland China. Elsewhere in Mainland China, Swire Properties has four large-scale mixed-use projects - Taikoo Li Sanlitun and INDIGO in Beijing, TaiKoo Hui in Guangzhou and Sino-Ocean Taikoo Li Chengdu in Chengdu.