Lifestyle International wins bid for Shanghai site
Lifestyle International, one of Hong Kong's largest department store operators, was yesterday awarded a commercial site in Shanghai after a winning 2.467 billion yuan (HK$3.02 billion) bid in a government tender.
The site in Zhabei district, north of the centre, is 50,154 square metres, and could be developed into a commercial project with a total gross floor area of 175,537 square metres.
The land price of the project is 14,054 yuan per square metre. The site is next to Daning The Life Hub, a retail, hotel and office complex.
Jim Yip Kin-shing, co-head of investment at property agency DTZ, said Daning The Life Hub had become a popular shopping centre and Zhabei district was a mature area. 'It is a good location to develop a retail project,' he said.
He said the site represented good value for money.
'A week ago, Singapore-based CapitaLand sold an office site in the district for about 13,000 yuan per square metre. The location of Lifestyle's site is much better and the project could build more retail space, but it sold for 14,054 yuan per square metre only.
'Land prices have been affected by the cooling measures in the property market. Many developers were interested in the site. But they were cautious in their bidding because banks have tightened up on loans.'