Huge commercial project could create new business district for Shanghai

Shanghai could soon have a new financial district after a state-owned consortium won 19 plots of land in Pudong for 13.8 billion yuan (US$2.17 billion) with plans to create one of the city’s biggest upscale commercial projects.

The coalition formed by Shanghai Land Group, subway operator Shanghai Shentong Metro and railway builder Pudong Railway plans to transform the area into a thriving business zone featuring offices, shops and cultural spaces, according to a government filing.

With a total area of 254,300 square metres – the size of 35 football pitches – the project has the potential to rival Lujiazui, the city’s existing business district, also located in Pudong.

The 19 plots will yield a combined gross floor area of 1.37 million square metres, more than three times the area covered by Hong Kong’s International Finance Centre.

“It has the potential to be a new CBD in Pudong,” said Daniel Yao, head of research for East China at property consultancy JLL.

The consortium secured all 19 lots with a single bid at an estimated 10,000 yuan per square metre, according to the government filings.