Hysan Acquires Shanghai Office Tower For US$540m
CHINA – Hysan Development, a commercial property landlord and developer based in Hong Kong, has purchased 24-storey mixed-use building in Shanghai’s Shanghai’s central business district (CBD), Jing’an, for 3.5 billion yuan (US$540 million), reported the South China Morning Post (SCMP) on Saturday morning (18 September, SGT).
60 percent of the stake is being acquired from a unit of CK Asset Holdings, while the remaining interest is being bought from 2 Shanghai-based real estate companies. The transaction is expected to be concluded in early 2022.
Constructed in 2018, the commercial property comes with about 538,196 sq ft of ready-to-rent Grade A office space from level 3 to the 24th floor. Another 193,750 sq ft is intended for retail premises that the HK developer intends to refurbish and complete by the middle of 2023.
Hysan Development intends to transform the 24-storey integrated development into something that is similar to its Lee Gardens complex in Hong Kong that is known as a high-end shopping haven.
“This acquisition marks a very important step for our long-term planning and development in Shanghai. We will continue to identify new development opportunities in Shanghai, the Greater Bay Area and other tier-one cities across China,” said Hysan’s Chairman Irene Lee.
The 24-storey tower is situated at No 668 and 688 Xinzha Road in East Siwenli, an up-and-coming commercial precinct with a gross floor area of around 6.46 million sq ft for which the developer is optimistic regarding its development potential.
In fact, Shanghai’s municipal government intends to release 3 adjacent sites for sale over the next few years. And Hysan’s 24-storey tower is close to a premium 60-storey office building known as One Museum Place. Owned by American property firm Hines, it opened in 2020 and comes with a 6-storey retail component.
“As the precinct develops and matures, the rents of high-quality office properties in the area will be comparable to those in the core business district of Nanjing West Road,” added Hysan Development.
In Hong Kong, Hysan’s portfolio of office, retail, and residential investment properties collectively have a total GFA of more than 4.5 million sq ft. In May, the developer clinched a 286,140 sq ft commercial site along Caroline Hill Road, Causeway Bay in Hong Kong for HK$19.8 billion.