Hysan snaps up Shanghai building for 3.5 billion yuan and says it aims to create another Lee Gardens in city
- The project sits in Jing’an district, Shanghai’s central business area and the deal is expected to be completed early next year
- Hysan is betting on the development potential of the East Siwenli neighbourhood in Shanghai
Hysan Development is expanding into Shanghai’s commercial market with the 3.5 billion yuan (US$542 million) acquisition of a 24-storey building in which CK Asset Holdings has a controlling stake, with the aim of recreating another Lee Gardens in the mainland city, according to a company announcement late Friday.
The project sits in Jing’an district, Shanghai’s central business area. The deal is expected to be completed early next year.
Built in 2018, the building has about 50,000 square metres of ready-to-rent grade A office space – earmarked to be from the third to 24th floor. Another 18,000 square metres is set aside for retail space, which Hysan will renovate and complete around mid-2023.
Hysan is snapping up the project from a subsidiary of CK Asset Holdings, which currently has a 60 per cent stake. The remaining stake is owned by two Shanghai-based property firms.
“In the past decade, our property sales in the mainland have averaged about HK$29.8 billion per year,” CK Asset said in a statement released on Friday. The company has more than 50 real estate projects across 20 cities on the mainland.
