Hongkong Land this month became the latest international developer to sign up for a major commercial project in Shanghai’s Qiantan area, as the city government’s latest pet project rapidly transforms into a major construction hub.
The 126-year-old listed builder on September 9th signed a framework agreement with Shanghai New Bund International Business District Investment Group, a division of the Shanghai-government controlled Lujiazui Finance & Trade Zone Development, to build a 210,000 sqm mixed use project in fast-growing section of the city’s Pudong district, according to a statement from the Hong Kong-listed developer.
Hongkong Land’s deal makes it the third major international developer to agree to a large scale mixed-use project in Qiantan in the last two years, after Tishman Speyer and Hongkong Land’s hometown rival Swire Properties both signed up to build large-scale complexes in the area south of Lujiazui in Pudong. Before this latest surge of new deals, Qiantan was best known for forming part of the site of Shanghai’s 2010 expo.
More Office and Retail Planned for Qiantan
The agreement between Hongkong Land and New Bund calls for joint development of the project in what the city government hopes will be the latest Pudong development success story.
According to a statement by the Shanghai city government on September 11th, when complete the project will include 500,000 square meters of total floor space and will cost more than RMB 20 billion (US$3.13 billion) to build. The mixed-use project is slated to include a grade A office building, shopping mall, upscale residences and business hotels. The government announcement did not explain why its figure for the project size differed from that included in a press release issued by Hongkong Land.
No time frame was released for the completion of the project was released by either party.
Commenting on the project, Y K Pang, Chief Executive of Hongkong Land said, “This proposed investment in the Qiantan project is part of Hongkong Land’s long-term strategy to grow its investment property portfolio in Asia’s prime locations, by leveraging our strength and expertise in developing and managing international Grade A offices and high-end retail centres.”
Hongkong Land Deal Follows Swire Agreement
Hongkong Land’s agreement comes just over one month after competitor Swire Properties announced its own plans for building a 124,000 square metre mall in the same area. Swire’s project is also being built in partnership with New Bund.
Also working with Lujiazui Finance & Trade Zone Development in the new area is US developer Tishman Speyer, which is building a mixed-use project there. Tishman Speyer’s 305,000 square metre Crystal Plaza complex will combine grade-A office space, residential and retail space at a site just across from the existing Oriental Sports Centre in Qiantan.
A number of domestic Chinese developers have also signed up for projects in Qiantan, including retail specialist Joy City, and Beijing-based Yeland.
The masterplan for Qiantan was developed by design consultancy Benoy and integrates commercial, residential, cultural, and recreational uses. The 34 hectare core area will comprise over 1.8 million square meters of mixed-use development including 600,000 square metres of retail and entertainment space, 900,000 square metres of office and hotel, and 300,000 square metres of residential space
The new development is located about 9.5 km south of the Lujiazui financial district, which is considered the core of Pudong. The area is being developed as a new landmark that will primarily provide expansion space for financial institutions headquartered in Lujiazui. It is also being positioned as a new centre for cultural and leisure activities.