Investments by Soho China, the Beijing-based commercial developer, in Shanghai have grown to more than 6.19 billion yuan (HK$7.08 billion) after the company bought a third site in the city for 1.56 billion yuan.
Soho yesterday won an auction for a retail and office site called Linkong Plot 15 in Shanghai's Hongqiao Linkong Economic Zone, a developing commercial area. The land price in terms of gross floor area is 7,250 yuan per square metre.
The 86,146 square metre site, next to the Shanghai Hongqiao transport hub, could be developed into a retail and office project with a gross floor area of 250,000 sq metres.
The developer estimates the construction cost of the project will be up to 1.5 billion yuan or about 7,000 yuan per square metre. The total investment cost, including land price and construction cost, is about 3.06 billion yuan.
Chairman Pan Shiyi yesterday said the company would keep 20 per cent of the gross floor area for leasing, with the rest being released to the market for sale.
'We prefer to keep retail space at the project as it offers stable rental income,' he said.