CapitaLand Ltd. is expanding its Shanghai portfolio with the planned acquisition of a commercial site adjacent to its Innov Center in the Yangpu District for 838 million Chinese yuan in cash.
Under the terms of a conditional agreement, CapitaLand unit Shanghai Zhong Da Industry Development Co. Ltd. will acquire property owner Shanghai Mingchang Properties Ltd., which will become a 100%-owned unit of CapitaLand upon the deal's closing, set to occur in January 2018.
CapitaLand intends to develop the site into a grade A office with a total gross floor area of 37,765 square meters, to make it the only new grade A office supply in the Wujiaochang decentralized business district when it is completed in 2020, according to a release. Groundbreaking is scheduled for early 2018.
CapitaLand estimates that the total investment for the new office, including land cost, will be approximately 1.3 billion yuan on a completed basis.
Including the new office, the company owns/manages 19 commercial properties in Shanghai.
As of Dec. 18, US$1 was equivalent to about 6.62 Chinese yuan.