Hong Kong’s Kerry Properties wins downtown Shanghai land tender for US$1.25 billion
- The site, comprising various plots, is next to a parcel it acquired in January last year, and will form phase 2 of a larger project, Kerry says in exchange filing
- With a total planned gross floor area of 308,000 square metres, the acquisition price works out to US$3,984 yuan per square metre
A Citi analyst said that although the acquisition cost was reasonable, the project was fraught with execution risks due to its commercial nature and long payback period.
With a total planned gross floor area of 308,000 square metres for phase 2, the acquisition price works out to 28,517 yuan per square metre.
The site, comprising various plots, is next to a parcel it acquired for 13.3 billion yuan in January last year, and will form phase 2 of a larger project, Kerry said in a filing to the Hong Kong stock exchange on Tuesday.
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The current acquisition, together with the initial plots, is a rare business development opportunity for the group to grow its development properties pipeline and build a premium investment portfolio in Shanghai’s proven downtown core, Kerry said.
The new parcel will be turned into a mixed residential, office, retail and hotel development as part of Shanghai’s planned urban gentrification and historical restoration, the company said.
