Skip to main content Skip to footer

New commercial landmarks arise amid urban regeneration, data centres continue to attract foreign investment

03

New commercial landmarks arise amid urban regeneration, data centres continue to attract foreign investment

Beijing

Golden Union Assets recently acquired the Fudi Huangcheng hotel, which is located at No.17 Qianliang Hutong in Dongcheng District of Beijing. The property has total GFA of approximately 18,000 sq m, and sits within the Second Ring Road, close to the Forbidden City, Beihai Park, Wangfujing Pedestrian Street, and other famous tourist attractions, enjoying strong retail atmosphere and convenient transportation network. After the acquisition, Golden Union Assets plans to employ its service apartment and retail platforms, aiming the renovation the property into a new landmark in the area.

Colliers View:

During the “14th Five Year Plan”, Beijing plans to involve five million square metres of existing properties into its urban regeneration scheme, striving to promote the overall efficient use of urban areas in addition to adding more urban functions in certain areas. The transacted asset is located within the Second Ring Road in Dongcheng District. It enjoys a profound location and strong historical and cultural atmosphere. After the acquisition, it will be transformed into a small commercial complex comprising retail, office, and service apartments. Capital market plays a more and more important role in urban renewal process. With a keen focus on the economic efficiency, investors tend to start with small-scale projects to reposition and optimise the asset to avoid the risk of heavy financial leverage and long turn-over period, which are commonly seen in government-led urban regeneration projects. Looking forward, considering the extremely limited land supply in core urban area in Beijing, it is expected that investors and operators would take more interest in value-add assets.

Source:https://www.goldenunionassets.com/news/26

Shanghai

According to the government of Hongkou District, Lot 59 Jiefang of the North Bund has been formally granted to Shanghai Huamao Zhiyuan Commercial Development Co., Ltd. The lot sits at the core area of North Bund, with the east boundary abutting Gaoyang Road, the south boundary abutting Dongdaming Road, the west boundary abutting Xinjian Road, and the north boundary abutting Dongchangzhi Road. Per the transfer requirement document, a 180m commercial tower will be developed, surrounding by a cluster of unique and historical buildings in the neighborhood. The developer will introduce international luxury brands, and strive to create a new commercial landmark with distinctive features in the area. The transferee of the land, Shanghai Huamao Zhiyuan Commercial Development Co., Ltd. is a wholly-owned subsidiary of Huamao Group, which is also the landlord and developer of Beijing SKP, an iconic luxury shopping centre worldwide.

Colliers View:

According to the "Implementation Plan of Building an International Consumption City" issued by the Shanghai Municipal Government in 2021, the government targets to enhance nighttime consumption in waterfront areas, and will tailor the North Bund area to be an international precinct serving high-end business, commercial, cultural and convention functions. Land Lot 59 Jiefang sits on the north bank of Suzhou Creek, which is a crucial commercial and trading centre of Hongkou District. Upon completion, the new shopping mall will boost the overall ambiance in North Bund in addition to enhancing landscape, commercial atmosphere and quality, forging another world-class waterfront retail precinct.

Source:http://www.shhk.gov.cn/xwzx/002003/20220617/8fc8034a-849b-4021-bb86-a3fb08a4d689.html

Greater Bay Area

On June 20, Keppel DC REIT bought another data centre in Jiangmen for RMB760 million. The subject is situated in Bluesea Intelligence Valley Mega Data Centre Campus of Heshan with a total GFA of about 20,300 sq m. Bluesea Intelligence Valley Mega Project comprises 6 blocks of 7-storey data centre buildings with a total of 23,000 racks of cabinets. According to Keppel’s announcement, the property will be leased back to Bluesea for 15 years with a total annual rental of RMB63,000,000. 

Colliers View:

Guangdong has a high cluster of renowned internet enterprises, and has the most data centers nationwide. Prior to the purchase, Keppel has already bought Block No. 5 of Bluesea Intelligence Valley Mega Data Centre Campus with a total consideration of RMB700 million in 2021. The second purchase of the data centre of Bluesea Intelligence Valley Mega Data Centre Campus reflects foreign institutions continue to be optimistic about the data center market in Guangdong.

Source:https://pdf.dfcfw.com/pdf/H2_AN202206231574243306_1.pdf?1656009484000.pdf