City Developments Limited (CDL) through its wholly-owned subsidiary, CDL China, has entered into an equity transfer agreement to acquire a prime Shanghai office project for RMB900 million ($186 million).

The acquisition will be made through the purchase of the entire equity stake in Shanghai Meidao Investment Co — which owns the commercial development known as Meidao Business Plaza in Shanghai’s Hongqiao CBD.

Meidao Business Plaza, with a total GFA of around 32,300 sqm, is in the final stages of construction and is expected to be completed by 2H2017. The project comprises five 9-storey office towers and two levels of basement car park with about 351 parking spots. Meidao Business Plaza has been approved for division into strata-titled units ranging from 237 to 522 sq m.

CDL says the acquisition will boost its recurring income stream.