Hong Kong-listed developer Kerry Properties on Tuesday revealed details of a supersized mixed-use project in Shanghai’s central Huangpu district after acquiring the land use rights to four development plots for RMB 13.3 billion ($2.1 billion).
Kerry, which previously developed the 450,000 square metre (4.8 million square foot) Jing An Kerry Center and the 320,000 square metre Kerry Parkside complex in Pudong, said in an announcement to the Hong Kong stock exchange that it has won a government tender for a 38,103 square metre site four blocks east of People’s Square, where it is permitted to build a combined gross floor area of 198,500 square metres. At the statement consideration, the developer is paying the equivalent of RMB 67,003 ($10,545) per square metre of GFA for the site.
The plots just north of Yuyuan Garden Metro station are part of a set of 10 adjacent parcels for which Kerry was confirmed as the selected tenderer in November. The group led by the youngest son of billionaire founder Robert Kuok plans to redevelop the contiguous sites into a megaproject with apartments and shikumen-style townhouses, high- and low-rise offices, retail spaces and hotel accommodation across 492,000 square metres of GFA.
Bounded by Ninghai Dong Road and Renmin Road on the north and south, and bisected by key artery Henan Road, the finished project could dwarf Shui On Land’s nearby Xintiandi complex, which occupies a 30,000 square metre site.
Landmark in the Making
“We are excited to be involved in this landmark project,” said Serene Nah, executive director and chief financial officer of Kerry Properties. “These four plots of land, together with the adjacent plots, would present a rare placemaking opportunity to connect The Bund, Huaihai Road and Xintiandi with the Old City.”
The four plots, which come under Shanghai’s urban redevelopment plan for Huangpu district, are currently used for apartments and shikumen lane-houses (124,500 square metres); retail, hotel and amenities (49,000 square metres); and low-rise offices (25,000 square metres). The Jing An Kerry Center is home to the Jing An Shangri-La Hotel while Kerry Parkside includes the Kerry Parkside Hotel, with both hostelries owned by the Kuok family controlled Shangri-La Hotel Group.
“As part of the urban regeneration plan, certain designated historical sites and heritage architecture will be restored and rebuilt, while other parts of the project will be redeveloped to create an iconic mixed-use development,” Kerry said.
Set in a neighbourhood that mixes Chinese and French architectural styles, the transit-oriented development will enjoy direct access to the Yuyuan Garden station, which last month added access to Metro line 14 to its existing line 10 service, while the Lujiazui central business district is just one station away. Nearby roads will provide access to the Yan’an Elevated Expressway, the Renmin Road Tunnel and the Yan’an Road Tunnel.
“We envision this to be a new landmark in the heart of Shanghai that will benefit from the area’s cultural convergence and its strong transport connectivity,” Nah said, adding that the project would strengthen Kerry’s high-end residential pipeline and premium investment property portfolio.
Developers Dive In
Shanghai continues to attract a parade of Hong Kong developers seeking expansion opportunities in the mainland’s Yangtze River Delta region.
Last February, Kerry teamed up with the real estate arm of Singapore sovereign wealth fund GIC to pay RMB 6 billion ($930 million) for a Pudong district site designated for a retail-led mixed-use project. Situated at the junction of Jufeng Road and Zhangyang Road, the site measures 66,060 square metres and is expected to yield a GFA of 390,000 square metres.
In late November, Hong Kong Resorts International revealed its successful bid of RMB 830.4 million ($130.3 million) for a residential plot in southwestern Shanghai’s Songjiang district, with plans to develop housing aimed at skilled workers across 32,528 square metres of GFA.
HKRI, controlled by the billionaire Cha family, previously partnered with fellow Hong Kong giant Swire Properties to develop HKRI Taikoo Hui on Shanghai’s West Nanjing Road. The 322,000 square metre office, hotel, residential and retail megaproject held its grand opening in November 2017.
Shui On Land announced in November 2019 that it had paid a combined RMB 5.74 billion ($820 million) for a pair of Shanghai development sites: a 15,258 square metre commercial plot in Putuo district for an office and retail complex modelled after its Xintiandi project, and a 90,059 square metre set of residential parcels in Qingpu district.