Shui On Land, which recently raised HK$6.2 billion in an initial public offering, is to pay as much as 318.98 million yuan for a Shanghai commercial site in the company's first land acquisition since its shares were listed in October. The site, bought from Shanghai Sheng Jin Real Estate, is next to Shui On's 87-hectare office-retail-convention and exhibition centre development, Knowledge and Innovation Community (KIC), in Yangpu district. The company planned to build an office project on the site, a spokeswoman said. The price represents an accommodation value of 2,321 yuan per square metre, based on the site's gross floor area of 137,400 square metres. Under the sale agreement, Sheng Jin is required to return 23,000 sqmetres of the completed project to the Air Force of the People's Liberation Army. The consideration should be reduced by the construction and tax costs related to the area to be returned, with the costs to be incurred by Sheng Jin, Shui On Land said. Shui On shares, which have gained 26 per cent since their October debut, closed up 1.66 per cent at HK$6.73 yesterday. Shui On's 79 per cent-owned Chongqing Shui On Tiandi Property Development this week secured a three-year HK$300 million loan to finance construction of its multi-purpose 241,000 sqmetre Chongqing Tiandi development.