Hang Lung is paying 10.7 billion yuan (US$1.7 billion) for a parcel of prime commercial land in Hangzhou in eastern China – the Hong Kong firm’s first mainland purchase in five years. The land is believed to be the most expensive plot for commercial project development in the capital city of affluent Zhejiang province, and one of Hang Lung’s priciest ever mainland acquisitions. Total investment of 19 billion yuan is earmarked for the planned project, a large-scale commercial mixed-use complex, comprising a world-class shopping centre and office tower, the Hong Kong real estate major said late on Monday. “We are thrilled to have successfully acquired this premium site in Hangzhou,” said Ronnie Chan, chairman of Hang Lung Group and Hang Lung Properties, stressing the acquisition allows the developer to further extend into another strategic location, to capitalise on opportunities available right across the mainland. Hang Lung to spend HK$40 million on mall upgrades to woo Mong Kok’s shoppers The plot extends Hang Lung’s reach to 11 developments in nine mainland cities and marks a “new milestone” for its growth. “This acquisition aligns with our long-term investment plan and we are confident we will create great value for the city and Hang Lung from this world-class, iconic landmark,” Chan said. This acquisition aligns with our long-term investment plan and we are confident we will create great value for the city and Hang Lung from this world-class, iconic landmark Ronnie Chan, chairman of Hang Lung Group and Hang Lung Properties The plot is located in the city’s Xiacheng District, the commercial and business centre of Hangzhou, and has good access to public transport. Covering an area of 44,827 square metres and a maximum above-ground gross floor area of 194,101 square metres, the plot is the only remaining large-scale site for commercial development available in the district. Hong Kong’s Hang Lung Properties sees 2017 underlying profit fall on declining China mall rental income The Hangzhou project is expected to create strong synergies with Hang Lung’s flagship properties in Shanghai and Wuxi, and inject new energy into the commercial landscape of the area, the company said. Hangzhou is emerging as one of the most dynamic cities in mainland China, renowned for its tourism attractions and its rising clout as a home to technology majors such as like Alibaba Group and NetEase. Hangzhou’s economy grew 8 per cent in 2017, outperforming the mainland’s 6.9 per cent during the year. Its retail sales rose by 10.5 per cent last year, according to statistics. Alibaba owns South China Morning Post.