CityDev subsidiary acquires Shanghai commercial project for S$186 mil

SINGAPORE (Feb 15): CDL China, a wholly-owned subsidiary of City Developments Limited (CDL), is acquiring a prime Shanghai commercial project, Meidao Business Plaza for RMB 900 million (S$186 million) through the purchase of a 100% equity stake in Shanghai Meidao Investment Co.

Shanghai Meidao owns Meidao Business Plaza, a commercial development within the Hongqiao central business district (CBD) with a total gross floor area (GFA) of approximate 32,300 sq m.

The development comprises five nine-storey office towers, in addition to two levels of basement carparks with about 351 lots in total. Each of the five office towers will also feature a sky garden atop their roofs.

In a Tuesday statement, CDL shares that Meidao Business Plaza is currently in its final stages of construction, and is expected to be completed by the second half of 2017 – adding that it has been approved for division into strata-titled units ranging from 237-522 sq m.

Mark Yip, CEO of CDL China, says China is part of the company’s key overseas markets for growth, as part of CDL’s strategic diversification strategy.

“Adding to our portfolio in China, this is a rare opportunity to acquire a soon-to-be-completed commercial project in Shanghai that will further enhance our recurring income streams. It has a prime location in the Hongqiao Central Business District which has been identified for fast growth in the Chinese Government’s 12th five-year plan and is of strategic importance to Shanghai,” says Yip.

“Hongqiao Central Business District also aims to attract large private enterprises and listed multinational companies. It is estimated that more than 650,000 employees will work in the area by the end of 2020. We will continue to seek suitable investment opportunities to grow our presence in China,” he adds.

Shares of CDL closed 2% lower at S$9.40 on Tuesday. — theedgemarkets.com.sg

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