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Shanghai's high-quality assets continue to attract the attention of various investors, and several projects have been successfully traded recently.

According to the Shanghai Equity Exchange, on August 21, the "40% equity of Shanghai Guangtian Real Estate Development Co., Ltd." held by Shanghai Yagu Project Management Co., Ltd. was sold at the reserve price of 1.72 billion yuan.

According to Qichacha, Shanghai Guangtian was previously 40% owned by Shanghai Yagu, and the remaining 60% was held by Hong Kong Construction, a subsidiary of Indonesia's Sinar Mas Group. Shanghai Yagu is a subsidiary of State Grid. This means that after the transaction is completed, State Grid will no longer hold shares in Shanghai Guangtian.

Market sources said that the buyer of Shanghai Landmark Center is the Indonesian Sinar Mas Group. If the news is true, the project will be wholly owned by Sinar Mas Group.

It was disclosed that Shanghai Guangtian is mainly engaged in the development and operation of commercial and office buildings, and parking lot management in Block 108, 4th Street, Sichuan North Road, Shanghai. It is the project company of Shanghai Xinghui Center, a landmark commercial project in Shanghai North Bund.

Public information shows that the land was sold in 2005 at a price of 1.14 billion yuan, setting a record for the highest land price in Shanghai that year. Hong Kong Construction later acquired 60% of the shares. The total area of ​​Shanghai Landmark Center is 248,000 square meters, consisting of two 147-meter-high twin towers, including 118,000 square meters of super-grade A office buildings and 72,000 square meters of commercial plazas.

However, the commercial part of the project did not perform well. According to the big data of Winshang.com, in July this year, the average daily passenger flow density of the project was 7,995.69 people per 10,000 square meters, ranking last among the five existing commercial buildings in the North Bund business district.

Another commercial property in Pudong was recently transferred in the form of an asset package. Shanghai Zendai (00755.HK) recently announced that it would transfer a number of assets and related debts together for a total price of 10 million yuan.

According to the disclosure, the above assets include 25 retail units and a hotel in Shanghai Zendai Thumb Plaza, as well as various properties in Qingdao, Yangzhou, Yantai, etc. The announcement shows that as of May 31, the total value of the above (including properties subject to the seizure order and not yet obtained the appropriate ownership certificate) is approximately 2.877 billion yuan.

Among them, Shanghai Zendai Thumb Plaza is located in Lianyang, Pudong, covering an area of ​​nearly 60,000 square meters, with supermarkets, serviced apartments, etc., and has been operated by Shanghai Zendai for nearly 20 years. Previously, part of the project had been sold, and after the completion of this transaction, Shanghai Zendai Thumb Plaza will be fully sold.

Unlike the buyer of Xinghui Center, the buyer of Shanghai Zendai Thumb Plaza is a mainland enterprise Ruidong Group. The company is located in Dezhou, Shandong Province, and is mainly engaged in the research and development, design, production, sales, installation and maintenance of central air-conditioning products.

Not only commercial assets, Vanke, which has been selling assets frequently to recover its losses recently, has an office building for sale in Shanghai. According to online real estate, the Longhua Vanke Center T1 office building located in Xuhui Binjiang was recently sold. The office building was quoted at 45,000 yuan per square meter, with a total area of ​​about 28,172.38 square meters and a transaction price of about 1.268 billion yuan.

China Business News found that in April 2017, the N11-08, N15-01 and N15-05 plots in Longhua Street, Xuhui District, Shanghai, where the project is located, were sold. The land use nature is commercial and office, and the transaction was completed through a combination of bidding and auction. The consortium consisting of West Bund Group, Vanke and New Huangpu won the bid for approximately 2.064 billion yuan, with a floor price of 21,315 yuan per square meter and a premium rate of 0.49%.

In the first quarter of 2020, the project started full construction. Vanke led the development and construction of a large TOD complex project, which includes a headquarters office building of about 60,000 square meters, namely Longhua Vanke Center. Longhua Vanke Center has a total of 5 stand-alone office buildings. At present, T1-T4 of the 5 stand-alone office buildings in Longhua Vanke Center have been sold, and T5 is still on sale.

It is worth mentioning that according to the public sales information of the project, there are 4 buildings available for sale, namely T2-T4, while T1 was originally self-held. The earlier land transfer documents also required that the project transferee should self-hold office properties with a building area of ​​not less than 40% for not less than 20 years; at the same time, self-held properties shall not be transferred as a whole, in blocks, on floors, or in units. However, the transfer document also mentioned that in the event of bankruptcy, reorganization, revocation, etc., if the agreed self-held part needs to be transferred as a whole, an application can be submitted to the transferor, and the transfer will be executed after the transferor agrees.

In addition, Sansheng Hongye Building, a Grade A office building located on the Bund of the Huangpu River, which once belonged to the developer Sansheng Hongye, was sold through judicial auction to a company that was established only one month ago and has a registered capital of only 100,000 yuan. The transaction price was 830.72 million yuan.

Hotel assets are also favored by investors. Recently, Shandong Hi-Speed ​​acquired 30% of the equity of Pudong Jinqiao Wanhe Haomei Hotel for about 330 million yuan; the former Ramada Hotel located on Xietu Road in Huangpu District also changed hands in the form of judicial auction, with a transaction price of about 426 million yuan, a premium rate of 31.5%.

Shanghai has always played an important role in the mainland's bulk transaction market. According to monitoring by CRIC Asset Management (CAIC), in the first half of 2024, there were 106 bulk property transactions in 32 cities in the mainland, with a total amount of about 66.668 billion yuan, up 7.19% year-on-year. Among them, Shanghai's total transaction amount was about 27.45 billion yuan, the highest among all cities.

An industry insider who is engaged in bulk transactions in Shanghai told reporters that Shanghai is a safe market and many hedge funds will choose it. Currently, many asset prices of Shanghai projects have fallen, and companies can choose good office locations at a lower cost. At the same time, many companies hope to have their own named buildings in Shanghai, which will help them conduct business and increase customer recognition.

The industry predicts that in the second half of this year, with the expectation of a decline in asset prices, large institutional investors will enter the market, driving the growth of overall market transaction volume.

Lu Qiang, executive director of the capital markets department of CBRE East China, believes that in terms of bulk transactions, it is expected that some discounted projects held by foreign funds will be sold in the second half of the year, and the proportion of judicial auction projects will continue to increase; at the same time, thanks to Shanghai's unique position as China's economic bridgehead, powerful self-use enterprises and private investors from all over the country will continue to be the main buyers of office and hotel projects, and the country's low interest rate environment is also expected to create good financing leverage for domestic buyers. Potential inflation growth will become one of the reasons for allocating real estate.

(This article comes from China Business Network)