The project sits on parcels of land Kerry bought in June and January 2022 (Image: Kerry Properties)
Kerry Properties has broken ground on a project set to provide nearly 93 football fields of finished space in Shanghai’s Huangpu district in what would be its largest development to date in mainland China, the company announced on Wednesday.
The developer controlled by the family of Shangri-La Hotel tycoon Robert Kuok has officially commenced construction of its Kerry Jinling Road project, which will span 663,000 square metres (7.2 million square feet) of office, residential, retail and hotel space near the city’s Yu Garden landmark.
“Through this project, Kerry aims to promote urban regeneration in Shanghai and to contribute to the city’s high-quality development,” said Kuok Khoon Hua, chairman and chief executive officer of the company. “We have great confidence in the future growth of the mainland China market and are fully committed to improving urban areas through our projects in mainland China.”
With the project set to be completed in phases starting in 2027, Kerry’s latest show of confidence in China’s property market puts it in league with some of its biggest competitors in Hong Kong, with both Swire Properties and Hongkong Land ramping up their Shanghai pipelines.
Developing a $3B Site
The Kerry Jinling Road project occupies 10 adjoining plots along East Jinling Road which Kerry acquired in a pair of separate government tenders in June and January of last year. The company spent a total of RMB 22.1 billion (now $3 billion) to assemble the 216,000 square metre site, or the equivalent of RMB 33,303 per square metre of gross floor area.
Kerry Properties CEO Kuok Khoon Hua speaks at the ground-breaking
The mega development incorporates 214,000 square metres of office space and 124,000 square metres for high-rise apartments and shikumen-style townhouses. Another 124,000 square metres is dedicated to retail, while the remaining 14,000 square metres is set aside for hotel use.
Bounded by Ninghai Dong Road and Renmin Road on the north and south, the project will have a direct connection to the Yuyuan Garden station and its two Metro lines, and is within walking distance of landmarks including People’s Square and The Bund, in addition to Yu Garden.
The project is expected to be completed in phases between 2027 and 2029, with pre-sales for the residential component slated to kick off in 2025, while leasing of the office, retail and hotel is targeted for launch in 2028, according to the company’s annual report.
As they start their largest project in China in Shanghai’s oldest district, Kerry said that it aims to preserve the architectural heritage of Jinling Road by incorporating the city’s historical arcade buildings, Shikumen houses and ‘li-long’ alleyways into the project.
Kerry Jinling Road marks the company’s third mixed-use mega-development in Shanghai, surpassing its 347,000 square metre Jing An Kerry Centre complex in scale, with that project, which contains the 508-key Jing’An Shangri-La Hotel, having been completed in 2013.
The company debuted its 253,000 square metre Kerry Parkside complex in Pudong District in 2011, which includes a mall, residential units and the 574-room Kerry Parkside hotel.
China Expansion
Kerry’s ongoing expansion in mainland China parallels efforts by some of the biggest developers from its home city, at the same time that some builders from farther afield have been pulling back.
Shovels ready to break some ground on East Jinling Road
In June, Hongkong Land touted its $8 billion West Bund Financial Hub as the firm’s largest single project investment project ever, noting that the development is twice the size of its entire Central portfolio in Hong Kong.
Right next to the 1.1 million square metre commercial project, the Jardine Matheson unit last year added a new residential project which is planned to yield at least 526 new homes.
Last September, Hong Kong-listed Swire Properties announced a plan to develop a sprawling 600,000 square metre mixed-use project in Shanghai’s Qiantan area, together with its state-owned partner, Lujiazui Group.
More recently, local media reports have indicated that Swire plans to buy out Lujiazui Group’s stake in both its existing Taikoo Li Qiantan retail project and in the second Qiantan development, which is planned to be nearly twice as large as the company’s 322,000 square metre HKRI Taikoo Hui joint venture in Jing’An district.
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