CapitaLand acquires 70% stake in Shanghai firm for S$397.5 million to develop mixed development
The 110,000-square-metre mixed development comprises residential, office and retail components
Singapore, 18 June 2013 – CapitaLand Limited’s wholly-owned business unit, CapitaLand China, has acquired a 70% stake in Shanghai Guang Chuan Property Co. Ltd., for RMB1.95 billion (approximately S$397.5 million). A wholly-owned subsidiary of Shanghai Shentong Metro Assets Management (Shentong Assets), Shanghai Guang Chuan Property Co. Ltd. owns a prime site in Hanzhonglu, Zhabei District, Shanghai which will be developed into a mixed development comprising residential, office and retail components. The project will commence in 2015 and is expected to be completed by 2017.
The 25,427-square-metre (sqm) Hanzhonglu site will have a total gross floor area (GFA) of around 110,000 sqm, of which 105,041 sqm of GFA will be above ground. The site consists of two plots of land – one for office and retail use with a GFA of 74,945 sqm and another for residential use with a GFA of 30,096 sqm. It is centrally located within the Inner Ring of Shanghai, a 15-minute drive from Shanghai’s Central Business District. The site sits right above an interchange station for metro lines 1, 12 and 13 and enjoys a waterfront view of the Suzhou River
This is CapitaLand China’s first partnership with Shentong Assets. A wholly-owned subsidiary of Shanghai Shentong Metro Group, Shentong Assets is responsible for the development and asset management of properties above the group’s metro stations or along the metro lines in Shanghai.
Mr Jason Leow, CEO of CapitaLand China, said: “We are pleased to partner Shentong Assets in developing the Hanzhonglu mixed development and contribute towards Shanghai’s development. The acquisition of Shanghai Guang Chuan Property Co. Ltd. is in line with CapitaLand’s strategy to further strengthen its presence in China.”
“Rapid urbanisation has spurred the development of public transport infrastructure in Asia. Shanghai will have 570 kilometres of metro lines by 2014 with over 350 stations. CapitaLand China, with our unique multi-sector real estate knowledge and capabilities, will be able to integrate our mixed developments seamlessly with the metro stations.”
Mr Yu Guang Yao, President of Shanghai Shentong Metro Group, said: “Shanghai Shentong Metro Group is constructing and operating Shanghai’s metro network and looks forward to collaborating with reputable international developers to build quality developments atop the metro network. We are pleased to partner CapitaLand China for the Hanzhonglu mixed development.”
The transaction will be completed by 2Q 2014 and is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2013.