[photopress:Xintiandi__Shanghai.gif,full,alignright]Morgan Stanley Real Estate Fund is going to take part in a multibillion yuan redevelopment project in Luwan district of Shanghai to strengthen its real estate portfolio in the city. Its involvement comes after initial partnership plans with China Overseas Land (which is one of the mainland’s biggest developers) failed to materialize.
The site covers an area of over 188,000 square meters and is part of an extensive redevelopment program being undertaken by the Luwan government. The site is located in Xintiandi, a trendy area full of shops, bars and restaurants, and instead of jointly developing it into a residential-office-retail complex, the two firms are likely to carry out their projects on the land separately.
[photopress:xintiandi_2_1.gif,full,alignleft]A source close to Overseas China Land said it ‘has been in talks with Morgan Stanley for more than a year on the possible co-operation but failed to come up with any joint venture proposal.’
The Luwan government proposed dividing the land into separate plots as it wants to finish the project in time for Shanghai World Expo in 2010.
‘It is too early to say what China Overseas will build on the site,’ said a source. ‘But the outcome will be finalised within a few months.’
Morgan Stanley is also close to signing an agreement to buy a Shanghai residential block for RMB530 million. Sources stated it was poised to buy a 30-storey block in Novel City, a seven-tower residential project in Xuhui district.
Source: South China Morning Post and WATAsia Research