Shun Tak (00242) invested in the Suhewan Comprehensive Project in Jing’an District, Shanghai through its joint venture, and will develop jointly with Rundi (01109)
The project is under construction and is expected to be completed in stages starting in 2021.
Through its joint venture with Zhonghua Enterprise (600675.SH), Shun Tak won a 50% stake in the Shanghai Su’anwan Integrated Project in Jing’an District, Shanghai, which was sold by Shenzhen Huaqiao City (000069.SZ) for a total of RMB 4.712 billion. Calculating 80% of the equity of the joint venture will cost approximately RMB 3.77 billion. The remaining 50% equity interest in the project is held by Rundi.
The project is adjacent to the Bund and People’s Square, involving a total of 4 sites with a total area of about 24,000 square meters
A total floor area of about 329,000 square meters can be built. One of the land on the north is planned for residential, office and low-rise commercial buildings Property; the land on the south will be used to develop a 200-meter-high skyscraper office building, an underground shopping mall, and a recreation park.
The Group expects that after the completion of the project, the office, commercial and residential parts located in the north will be sold
which is expected to bring short-term sales revenue. As for the retail and office sections in the south, they are used for leasing, which is believed to bring recurrent rental income in the long term.