Hong Kong-based conglomerate Shun Tak Holdings and developer Shanghai Lujiazui Group have acquired land to develop a 6 billion yuan commercial joint venture project in Shanghai, according to a stock market filing. The two companies bid 1.95 billion yuan for rights to a site in Shanghai’s Pudong New Area, and will each hold half of the joint venture, Shun Tak said in a filing with the Hong Kong stock exchange late Tuesday. The project has a total gross floor area of 133,500 square metres, and will form part of Shanghai’s pilot free-trade zone, an area with greater financial flexibility in the mainland. The site plan includes around 70,000 sq m of office space, 14,000 sq m of retail space, 20,000 sq m for hotel properties, and around 30,000 sq m designated for an art and cultural centre. The hotel will be managed by Shun Tak’s hotel management subsidiary, Artyzen Hospitality Group. “It is expected that the project will be benefited from its superior location,” Shun Tak said in the filing. “The group will also be able to enhance its recurrent income and capture capital appreciation potentials over the long run.” The land use contract is expected to be entered into before February 1 next year. In Wednesday’s trade in Hong Kong, Shun Tak shares fell 1.5 per cent to close at HK$2.62. Shun Tak has a variety of mixed-used development projects in China, including Beijing, Shanghai, and Hengqin. The company terminated its acquisition of a site in Macau in the Nam Van District earlier this week, citing condition precedents that could not be met.