Shui On Land raises stake in Shanghai growth prospects after winning two prime sites in state auctions

By Pearl Liu pearl.liu@scmp.com / https://www.scmp.com/business/article/3038429/shui-land-raises-stake-shanghai-growth-prospects-after-winning-two-prime?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | November 26, 2019 11:57 AM SGT
Shui On Land is planning to take on more urban redevelopment projects in Shanghai after winning two prime sites at state land auctions in the past three weeks, making the city its next source of earnings growth.
The builder paid 1.86 billion yuan for a piece of 15,258 square metre site at HongShouFang in Putuo in a winning bid on November 1. That followed an earlier auction on October 31, when its 3.88 billion yuan offer for four parcels of land totalling 90,059 square metres in Xujing Town, Qingpu district topped rival bids.
The two acquisitions will bring its assets in Shanghai to more than 75 billion yuan (US$10.7 billion) or about 70 per cent of the Hong Kong-listed group's assets, making it one of the biggest landlords in the city. The rush to replenish its Shanghai land bank underscores its optimism in the Yangtze River Delta Integration Plan, a state-mandated growth strategy to connect the city and its neighbours in the region into an integrated business and trading hub.
"The city has ample opportunities for micro redevelopment," Jessica Wang, managing director of Shui On Management, said in an interview. "In New York, London and Tokyo, we see the restoration of cultural and commercial elements as the future trend. It will be one of the directions for Shanghai's development. This trend will create major development opportunities in China's first-tier cities."
Jessica Wang, managing director of Shui On Management, a subsidiary of Shui On Land. Photo handout alt=Jessica Wang, managing director of Shui On Management, a subsidiary of Shui On Land. Photo handout
Best known for its iconic Xintiandi retail and entertainment project on the Huaihai Road shopping belt, Shui On Land is hoping to replicate Shanghai's old charm in the commercial redevelopment of the HongShouFang site, according to Wang, who is a Shanghai native.
The concept...