One of the highest profile early entrants to the Shanghai property market is facing off against the biggest landlord in Hong Kong’s Central district in the final bidding for a prime commercial site in Shanghai’s Huangpu district expected to sell for no less than RMB 13.58 billion ($2.1 billion).
A statement from the official Shanghai Land Market website shows that two companies have reached the final round in the bidding for a 78,256 square metre (842,340 square foot) prime commercial site near Huaihai Lu that is more than twice the size of Xintiandi.
While the statement did not yet disclose the names of the bidders for the site, the finalists are said to be Hongkong Land and Shui On Land, according to the South China Morning Post. The final results of the tender are due to be decided on July 5th.
$2.1 Billion Site Reserved for Fortune 500 Enterprises
Huangpu District Huaihai Zhong Road Land parcels 123, 124 and 132 are located just west of the South Xizang Road thoroughfare and to the east of Ji’an Road in the core urban district. The site, which is bordered to the north by Taicang Lu and Shouning Lu, and has Zizhong Lu to its south, is about three blocks to the east of Xintiandi and roughly the same distance from the Huaihai Lu shopping strip as the iconic entertainment zone.
Allocated for commercial use, the prize plots are approved for construction of up to 242,689 square metres of above ground gross floor area. According to local media reports, the required minimum bid for the site is RMB 13.58 billion, putting the land cost for the final project at no less than RMB 55,596 per square metre.
Under the tender requirements, developers hoping to be selected for the project should be among the world’s 500 largest companies and should have experience in developing similar projects. The site is just a five-minute walk from Shanghai’s prestigious shopping area Huaihai Road and People’s Square is within ten-minute walk.
Shui On confirmed to the South China Morning Post that it was one of the shortlisted developers and added that it “hopes it can secure the plot”. The media account also identified the other finalist as Hongkong Land, citing a source in the commercial property sector.
Hongkong Land had not replied to enquiries from Mingtiandi by the time of publication.
Shui On’s engagement in the land tender does not come as a surprise as the site lies just to the east of the developer’s 160-hectare Taipingqiao master plan for the area around Xintiandi and Taipingqiao park.
Hongkong Land Ramps Up China Portfolio
Hongkong Land, the biggest landlord in Hong Kong’s Central, has recently been ramping up its involvement in the mainland market. In November last year the company opened its first retail project in China’s capital, the $1.1 billion WF Central shopping mall in Beijing.
Then in January, Hongkong Land won a tender to develop a plot of commercial land in Nanjing, the capital of eastern China’s Jiangsu province, for RMB 4.8 billion ($745 million).
The blue-chip builder is also working on a commercial project comprising a grade A office building, shopping mall, upscale residences and business hotels in Shanghai’s Qiantan area.