Soho China buys Shanghai property for $632mn

Soho China agreed to buy a 50% stake in a Shanghai commercial project for US$632 million, highlighting opportunities for the strongest property developers amid China’s real estate tightening, The Wall Street Journal reported. Soho China said on Thursday it will pay US$164 milllion to Greentown China Holdings for 10% stake and US$468 million to Shanghai Zendai Property for 40% stake in the prime 45,472-square-meter plot near Shanghai’s southern Bund area. Chinese conglomerate Fosun International will maintain its 50% stake in the project after the deal. Soho Chairman Pan Shiyi said: “[the price tag is] reasonable. Our biggest concern was whether or not land prices could fall further (in Shanghai) next year… but we believe that the office sector remains resilient, as evidenced by rising rents.” Many property developers in the country have been forced to sell assets to pay off debts as Beijing’s two-year property crackdown campaign has lowered prices.