Swire Properties, which is planning to open a 321,000 square metre commercial complex in Shanghai’s Jing An District next year, now has big plans for Pudong as well.
The Hong Kong-based developer recently announced that it has signed a framework agreement with a subsidiary of Shanghai Lujiazui Finance & Trade Zone Development, a developer belonging to the local government, to jointly build a 124,000 square metre mall in Pudong’s Qiantan Area.
Shanghai’s government has targetted Qiantan, which is located south of the city’s former Expo site in Pudong, as its latest focus for commercial development, as it tries to build on the success of the Lujiazui and Zhuyuan areas in attracting investment and business into eastern Shanghai.
Swire to Take 50 Percent Stake in New Mall
Under the terms of the framework agreement, Swire would take a 50 percent stake in the new retail project, and Shanghai Newbund Industrial Development Co, which belongs to Lujiazui Finance & Trade Zone Development, would represent the Shanghai government side.
“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.
Should the two sides follow through on the framework agreement, the new mall would be the latest major retail project for Swire, which currently is expecting to complete its HKRI Taikoo Hui project along West Nanjing Road sometime next year. Swire is building the 321,000 square commercial complex which formerly was known as Dazhongli, together with Hong Kong developer HKRI.
Besides the two Shanghai projects, Swire Properties has four other large-scale mixed-use properties on the mainland, including Taikoo Li Sanlitun and Indigo in Beijing, TaiKoo Hui in Guangzhou and Sino-Ocean Taikoo Li Chengdu in Chengdu.
Shanghai Pushing Qiantan Development Projects
Should Swire decide to invest in Qiantan, it will be entering an area of the city that the government hopes will be “the next Lujiazui” as city officials seek to replicate the success of Shanghai’s Pudong commercial hub.
The Shanghai authorities sold the first plot of land in Qiantan in 2013, and since then has been billing the area as a “second Lujiazui,” with a focus on developing the city’s finance industry.
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 project will combine grade-A office space, residential and retail space at a site just across from the existing Oriental Sports Centre in Qiantan.
According to the master plan for the area drawn up by UK design firm Benoy, Qiantan will integrate a mix of commercial, residential, cultural, and recreational space. The 34 hectare core of the new area will comprise over 1.8 million square metres of mixed-use development including retail and entertainment, office and hotel and residential, completed by a tall tower.