Hong Kong-listed Kerry Properties Limited (HKEX:683) announced Wednesday that, jointly with the real estate arm of GIC, Singapore’s sovereign wealth fund, it had won a bid to acquire a mixed-use development site in Pudong, Shanghai. The winning bid for the development was just over RMB6bn (c.$930m).
The consortium’s plans for the mixed-use project include a mega shopping complex, offices, and premium residential apartments. The shopping complex is designed to provide an integrated shopping, dining, leisure, and entertainment experience for a core catchment of around 700,000 consumers.
Shanghai’s retail sector has experienced a strong rebound following the COVID-19 pandemic. Hong Kong-listed Link REIT also demonstrated confidence in the city last week with a RMB2.8bn investment in the Shanghai Qibao Vanke Plaza, a mall complex offering 149,000 square metres of retail space.
Commenting the consortium’s successful bid, Mr Lee Kok Sun, Chief Investment Officer of GIC Real Estate, said, “We are pleased to establish this Joint Venture with Kerry Properties Limited, who has a strong track record in China’s commercial real estate market. This unique retail-anchored mixed-use project will capitalise on the robust domestic consumption in Shanghai. As a long-term investor, we remain confident in the retail sector and will continue to invest in high-quality, well-located retail projects in China, alongside local market leaders.”
The project site totals 66,060 square metres and once developed is expected to generate a gross floor area of approximately 390,000 square metres, with approximately 219,000 square metres for retail, 45,000 square metres for residential, 25,000 square metres for office, and 98,000 square metres for carparks.
The site sits on the banks of a creek running into the Caojiagou River. Puxing Culture Park and the future Jufeng Sports Park are nearby, and the development will have direct access into the Jufeng Road interchange station that connects to Shanghai’s Metro Lines 12 and 6.
Kerry Properties are already significant investors in Shanghai property, owning and managing a number of high-quality mixed-use, residential and commercial properties, including the iconic Jing An Kerry Centre in Puxi, Pudong’s Kerry Parkside, and luxury residential brands Central Residences and Le Loft.
Ms Serene Nah, Chief Financial Officer of Kerry Properties, said, “This project is closely aligned with our Company’s business development strategy of deep-rooting in the Mainland’s key cities through high-quality mixed-use developments to steadily increase our recurring income base. Shanghai is one of our core cities, and we expect the Jinqiao project to further fortify Kerry Properties’ strategic focus in the city.”