Kerry Properties Acquires Four Mixed-Use Development Land Plots in Huangpu District, Shanghai

Kerry Properties Limited is pleased to announce its successful acquisition of the land use rights for four adjacent mixed-use development plots (plots 064-01, 065-01, 066-01, 067-01 in the Unit C010102 of Guangchang Community) with a total site area of 38,102.7 square meters in Huangpu District in Shanghai, from the Shanghai Huangpu District Planning and Natural Resources Bureau for a total consideration of RMB13,329,070,000, equivalent to approximately HK$16,261,465,400.

In November 2021, Kerry Properties had been confirmed as the selected tenderer in a tender process of 10 adjacent plots (including the above 4 plots) of land for development. In line with the tender process, Kerry Properties has today acquired the captioned four plots (the Land), with a Total GFA1 of approximately 198,500 square meters. Whilst the result for the tender of the remaining plots (the Adjacent Plots) is subject to the subsequent arrangement for the grant of land use rights and announcement to be made by Shanghai Municipal Huangpu District Planning and Natural Resources Bureau.

Upon completion, the Project (the Land and the Adjacent Plots) will feature a comprehensive asset mix comprising residential apartments and shikumen townhouses, offices, retail and hotel. The Project is situated in the heart of Huangpu district, Shanghai, and is located in close proximity to landmarks such as The Bund, Yu Gardens, People’s Square and Xintiandi. Its proximity to The Bund provides the Project with a panoramic view of Lujiazui and the Huangpu River skyline.

Kerry Properties plans to develop the area into a transit-oriented mixed-use development. The Land will have direct access to the newly opened Yuyuan Station which is an important interchange station for Metro Line 10 and Metro Line 14, benefitting from excellent connectivity. For example, the Lujiazui Central Business District is one station away. The Land also provides good vehicular accessibility via Yan’an Elevated Expressway, Renmin Road Tunnel and Yan’an Road Tunnel.

A noteworthy feature of the Project is its central location within the Shanghai government’s urban redevelopment plan for Huangpu district. Situated in a neighbourhood with a remarkable history of over 160 years, there is a network of shikumens (石庫門 or lane houses), “li-long” (里弄) alleyways and rows of historical arcade buildings on the Land. They reflect a unique blend of Chinese and French architectural styles that is representative of Shanghai’s historical East-meets-West culture. As part of the urban regeneration plan, certain designated historical sites and heritage architecture will be restored and rebuilt, while other parts of the Project will be redeveloped to create an iconic mixed-use development.

Ms. Serene Nah, the Executive Director and Chief Financial Officer of Kerry Properties, shared her views, “We are excited to be involved in this landmark project. These four plots of land, together with the Adjacent Plots, would present a rare placemaking opportunity to connect The Bund, Huaihai Road and Xintiandi with the Old City

We look forward to working with the Huangpu government to rejuvenate the sites’ rich historical and cultural character as part of Shanghai’s urban regeneration plan, and to revitalize the district through our place-making and development expertise to establish this as the preferred destination to live, work, shop, entertain and visit.

We envision this to be a new landmark in the heart of Shanghai that will benefit from the area’s cultural convergence and its strong transport connectivity

We are optimistic about the long-term prospects of this Project and consider this to be a strategic addition that will strengthen our high-end residential properties pipeline, and premium investment properties portfolio. We anticipate the project will contribute good property sales income and add significant rental income with capital value creation in line with the growth of Mainland China.”