CapitaLand Buys Shanghai Site

Source : The Straits Times, 24 Aug 2007

CAPITALAND has stepped up its presence in Shanghai by securing a commercial site in the Zhabei District for 598.1 million yuan (S$119.6 million).

The purchase was made in a government land auction through an indirect subsidiary, Yorksure Pte Ltd.

The 20,310 sq m site, with a plot ratio of 3.5, will be developed into quality offices and a high-end hotel or service residences. Total gross floor area is estimated at 71,085 sq m.

CapitaLand said in a statement yesterday that the leasehold site, located along West Guangzhong Road in the commercial area of Ling Shi, is in the Shanghai Multimedia Valley.

The Shanghai Multimedia Valley, with a planned total gross floor area of 800,000 sq m, will house a concentrated cluster of high-tech and multimedia-related industries.

The mega project is slated for completion in 2015.

The property group’s proposed Zhabei District development, which has a tenure of 40 years for the hotel and 50 years for the offices, will be ready by end-2009 to benefit from the maturing business environment in the area.

Lim Ming Yan, CEO of CapitaLand China, said: ‘This acquisition will enhance our presence in Shanghai and extend the group’s footprint into Zhabei District.

‘With its comprehensive transport infrastructure, excellent connectivity and maturing business environment, Zhabei District is becoming one of the major extensions of the city’s central business district.

‘We will build quality offices and high-end business accommodation to cater to the needs of those working in the Shanghai Multimedia Valley.’