SOHO China announced on April 1st, that an agreement had been reached with Shanghai JingAn Real Estate Co to acquire an 81,000 sqm commercial real estate project currently in progress in Shanghai’s Caojiadu area for RMB 1.6 billion.
According to the agreement, upon meeting the conditions for the transfer of construction in progress of the Project, SOHO China will acquire the project at a total consideration of approximately RMB 1.634 billion, of which approximately RMB 1.534 billion is consideration for the land use rights to the project and RMB100 million is the construction fee for fulfilling the conditions for the transfer of construction in progress of the Project.
The project is located at plot 716-794, Wanhangdu Road, in the Caojiadu area of Shanghai’s JingAn district, and encompasses an area of approximately 14,832 m2. The site is approved for commercial, residential and office use. Its total planned gross floor area is approximately 81,000 m2, including 51,136 m2 above ground gross floor area (of which approximately 13,946 m2 is for residential use and 37,190 m2 is for commercial and office use). The planned underground gross floor area is approximately 30,000 m2, including 6,000 m2 commercial area and auxiliary car parks.
The project is situated next to Changshou Lu commercial street in the Caojiadu commercial area, JingAn District, Shanghai. The Caojiadu commercial area is situated at the intersection of JingAn District, Changning District and Putuo District. It has daily pedestrian traffic of over 1.2 million, and attracts various commercial activities, making it the largest integrated commercial district in northwestern Shanghai.
This is the fifth acquisition made by SOHO China since its first entry into Shanghai, marked by the acquisition of the Exchange SOHO in August 2009. In one and a half years, SOHO China proposed and made five acquisitions, establishing its presence in five areas of Shanghai, specifically, Nanjing Road West, the Bund, Hongqiao transportation hub, Huai Hai Road Central and Chang Shou Lu.
Founded in 1995, SOHO China is the largest property developer in Beijing and now possesses high-profile branded commercial properties in China’s major cities, such as Beijing and Shanghai. On October 8, 2007, SOHO China was listed on The Stock Exchange of Hong Kong Limited, becoming the largest IPO for commercial real estate developers in Asia.