[photopress:vincent_lo.jpg,full,alignright]Shui On Land will acquire a Shanghai builder to gain development rights to an office and commercial site which is next to an ongoing project.
Shanghai-headquartered Shui On Land said its subsidiary, Sino Realty, will pay up to RMB319 million ($41 million) for Shanghai Sheng Jin Real Estate. Shanghai Sheng owned the site next to Shui On Land’s Shanghai Knowledge and Innovation Community project in Yangpu District. It has a floor area of 137,400 square meters.
Shui On Land said in the statement, ‘The acquisition, if approved by authorities, is the first addition to the company’s land bank since its listing.’
Shui On Land currently has projects in Chongqing, Wuhan in Hubei Province and Hangzhou in Zhejiang Province. It is also in talks for a project in Kunming in Yunnan Province.
The Knowledge and Innovation Community project, which eventually will have cost RMB10 billion, will have 537,000 square meters of residential and office space and should be finished in time for Shanghai Expo 2010.
The Shui On Group was founded in 1971 by Vincent H. S. Lo, (seen above) as a diversified group engaged in property development. Earlier this year he expressed his strong optimism in and interview in The Standard:
‘Beijing’s austerity measures can help the general public to buy apartments in the future.’ Lo said.
He forecasts property prices in the mainland will increase in-line with economic growth in the long run.
In 1997 the construction and construction materials businesses were grouped under Shui On Construction and Materials Limited. Shui On Land, established by the Group in 2004, is the property company of the Group taking care of its developments in the Chinese Mainland. It was listed on the Stock Exchange of Hong Kong on October 4, 2006.
Shui On is a leading property developer in the Chinese Mainland and through the Lafarge Shui On Cement, formed together with Lafarge in 2005, it has also become the major cement production group in the south-west region in China.
Source: Shanghai Daily