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Hongkong Land Acquires 23.1-Hectare Land in Shanghai for RMB 31bn
Wednesday 26 February 2020

26 February 2020 – China-based property investment, management and development group Hongkong Land Holdings Ltd. has secured a 23.1 hectare mixed-use site in a commercial hub in Shanghai from the government via auction on 20th February 2020 for a consideration of RMB 31.05m (USD 4.4bn), the company said.

The Group is considering a range of funding options without recourse to shareholders, including internal resources and external funding. The group has sufficient liquidity to fund the land cost and does not intend to seek funding from shareholders.
The acquisition provides the Group with an opportunity to develop and operate a commercial complex of scale in a prime location in Shanghai. The transaction is in line with the Group's long-standing strategy to acquire prime sites in key gateway cities across Asia.

The development of the Land will be in multiple phases and is expected to complete by 2027. The Group has extensive experience in developing large commercial projects for long term investment in Greater China and Southeast Asia.
The land will be used primarily for Grade-A office, retail, residential and hotel purposes. The term of the land use rights is 40 years for retail and hotel purposes, 50 years for office purposes, and 70 years for residential purposes.

Approximately 24% of the accountable gross floor area may be developed for sale in accordance with the land grant.
Hongkong Land is a property investment, management and development group. The Group owns and manages more than 850,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong, Singapore, Beijing and Jakarta.
Date Published: 26/02/2020
Target: 23.1 hectare mixed-use site in a commercial hub in Shanghai
Country: China
Deal Size: 4.4bn (USD)
Sector: Construction/Real Estate
Type: LBO
Financing: Cash
Status: Closed
Vendor: Chinese government
Buyer: Hongkong Land Holdings Ltd