Greenland group sells rmb 7.5b trio of office buildings in shanghai bund project

Haitong Securities has agreed to buy a trio of office buildings worth a combined RMB 7.5 billion ($1 billion) in a Greenland Group project on Shanghai’s Bund, according to announcements last week by units of the mainland investment bank.

The sale of the nine, eleven, and nineteen-storey properties, which form the foothills leading up to the Greenland Bund Centre’s 300-metre supertall tower and three other skyscrapers, will bring in immediate cash as the developer works to complete the remainder of the 111,500 square metre (1.2 million square foot) urban renewal project.

With the joint venture having previously sold two of the seven headquarters properties in the RMB 100 billion development, this latest sale marks the progress that Greenland and its local government partner have made since the Shanghai-based developer bought on China Minsheng Group’s stake in the distressed project in February of this year.

In the first of the two deals, Haitong UniTrust International Leasing has agreed to buy the B1 headquarters building, so-called because of its suitability for use as the head office of a large corporation, for RMB 1.36 billion, according to a bourse filing by the subsidiary of Shanghai-based securities brokerage Haitong Securities.

In the second deal, which was reported in the same Haitong UniTrust regulatory filing, Haitong Securities has agreed to purchase headquarters buildings B2 and B3 in the development along the western bank of the Huangpu river for an undisclosed sum.

Haitong UniTrust Leasing is paying RMB 84,872 per square metre for the nine-storey B1 office property, based on its estimated gross floor area of 16,024 square metres.

The unit of the investment bank is also paying an additional RMB 56.6 million for the project’s two floors of underground parking, bringing the total consideration for the property to RMB 1.42 billion.

Although financial details for the purchase of the other two adjacent properties – B2 and B3 – have not been disclosed, the nineteen-storey B2 building, which has a gross floor area of 32,100 square metres, has a market value of RMB 4 billion, according to a mainland press account.

Ref:  Property Report