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Office: Lining acquired a portion of the Shanghai Kaiqiao Culture Plaza office building for RMB1 billion;asset value of commercial properties in Shanghai continues to stand out

shanghai new 1530 EN

Recently, Shanghai Chenhong Real Estate Development sold eight storeys of office and 128 parking lots in Kaiqiao Culture Plaza to Lining for a total consideration of RMB1.034 billion. Estimated to be completed on 30 September 2022, Lining plans to use the property as its global business headquarter in the YRD region. 

Colliers View:

Recently, majority of the investment deals were generated by local companies. In addition to Lining’s acquisition in August, Xtep Sports also acquired 57 commercial units in Minhang District of Shanghai as its global operation centre with total consideration of RMB439 million in Aug, reflecting the active capital market in the DBD. The substantial supply in emerging DBD submarkets provides more alternatives for end-users while institutional investors favour toward the stabilized properties in the CBD submarkets and core areas in DBD submarkets. In all, office market in Shanghai continues to draw the interest of different investors. In the mid to long term, as the economy continues to recover, the asset value of offices in Shanghai are expected to rise with more active transactions.