Foreign Property News | Posted by Si Thu Aung
Singapore’s CapitaLand announced on Tuesday that its Raffles City China Investment Partners III (RCCIP III) fund has formed a 50:50 joint venture with Singapore’s sovereign wealth fund GIC to acquire the Star Harbour International Center project (上海星外滩) project in Shanghai’s Hongkou district for RMB 12.8 billion (about $1.85 billion).
The announcement ended a month of speculation regarding the potential acquisition of the 1.5 million square metre (16 million square foot) project after Mingtiandi first reported the potential purchase from Shanghai Port Group in October.
The project, which is currently nearing completion and which CapitaLand indicated will be opened in phases starting in the second half of next year, will become CapitaLand’s third Raffles City integrated development in Shanghai, its ninth in China and the 10th globally.
“This prime asset will begin operations in phases from the second half of 2019, giving us speed to market in the competitive Shanghai market, which continues to power ahead,” said Lee Chee Koon, the group’s CEO.
“In line with our long-term belief in China, we will stay invested through market cycles to reap the compounding effects on our investments.”
The riverfront development, which occupies a 4.05-hectare commercial site in an area near the Huangpu river now marketed as Shanghai’s north bund, consists of a pair of 50-storey Grade A office towers which are linked at the base by a seven-storey shopping mall.
At 263 metres tall, the project is the tallest twin-tower office complex in Shanghai, and overlooks both the Bund and the Lujiazui financial district.
Ref: Property Report
