3 February 2021
Grosvenor Asia Pacific and Shui On Land Jointly Acquire Nanjing IFC in Nanjing CBD, China
Grosvenor Asia Pacific and Shui On Land in Joint Venture Acquisition
Hong Kong, Feb 03, 2021 – Grosvenor Asia Pacific and Shui On Land Limited (“Shui On Land”, Stock Code: 272), Shui On Group’s flagship property development company in Mainland China, announced today a 50/50 joint-venture to acquire a mixed-use Grade A landmark property, located at No. 1 Hanzhong Road, Qinhuai District, Nanjing, the capital city of Jiangsu Province.
With the project commanding a total gross floor area of 109,196 square metres, and consisting of a 45-storey Grade A office tower, a 7-storey retail podium, as well as 278 underground parking lots, this acquisition is one of Grosvenor Asia Pacific’s most significant investments to date and also a milestone for Shui On Land to grow its presence in Nanjing, in addition to its Nanjing INNO Zhujiang Lu and Bai Zi Ting projects.
As a leading city in the Yangtze River Delta region (YRD), Nanjing continues to demonstrate strong growth, underpinned by a diversified industrial base, excellent universities, a highly skilled labour force and structural integration with the wider YRD. Nanjing IFC is a landmark building prominently located at Xinjiekou, Nanjing’s most prestigious commercial address. The area is a popular retail and social destination, attracting a large volume of pedestrian footfall.
Nanjing IFC generates strong and stable rental income, with the office building occupied by an impressive tenant roster, which spans different companies and industries, including MetLife, AIA, KFC, MSD, Roche, Sinokorea Life, Boehringer-Ingelheim and Pramerica Fosun. The joint-venture will further add value by upgrading the office tower and repositioning the retail podium in order to benefit more broadly from Nanjing’s excellent economic and demographic fundamentals.
This investment marks the effective execution of both joint-venture parties’ strategies. Grosvenor’s Greater China strategy focuses on strategic residential and commercial joint-ventures with best-in-class partners in high-growth city submarkets in the Yangtze Delta Region and the Greater Bay Area. For Shui On Land, the investment aligns with its Asset Light Strategy of collaborating with strategic partners to invest in prime commercial property assets and to expand its assets under management.
Mr. Tim Jowett, Executive Director & Head of Greater China, Grosvenor Asia Pacific said, “Shui on Land is a leading commercial property development company and asset manager in Mainland China, and we are delighted to be partnering with them in our largest investment in the PRC to date. This partnership provides us with the ideal platform to deliver on our vision for Nanjing IFC, and simultaneously deepen our presence in the region. Shui On’s values and ethos firmly align with Grosvenor, placing emphasis on quality, place-making and far-sightedness. We look forward to working with them to deliver value and positively contribute to Nanjing’s evolution as one of China’s most economically vibrant cities.”
Mr. Douglas H. H. Sung, Managing Director, Chief Financial Officer and Chief Investment Officer of Shui On Land, said, “We have great pleasure in partnering with Grosvenor Asia Pacific, the Asia Pacific arm of the Grosvenor Group. With a track record of over 340 years, Grosvenor develops, manages and invests with a purpose - to improve property and places to deliver sustainable commercial and social benefits. This is the same people-centric approach Shui On has adopted for all its developments. Nanjing is one of the key markets Shui On has been expanding into in recent years. In addition to Inno Zhujiang Lu and Bai Zi Ting projects, Nanjng IFC will add further vibrancy to the city, and enhance Nanjing’s positon as a leading commercial and culture destination in the Yangtze River Delta.”
About Grosvenor Asia Pacific
Grosvenor Asia Pacific is a property developer and investor in Greater China and Japan with a focus on Hong Kong and the Greater Bay Area, Shanghai and the Yangtze River Delta, and Tokyo. We have been active in the Asia region for over 25 years.
Our investment and development activities are focused on the residential, office and retail sectors, with new initiatives being developed in prop-tech and digital innovation.
Our Greater China business predominantly operates through joint-ventures with like-minded, best-in-class partners, whilst our Tokyo business focuses on proprietary development and asset management. We are currently responsible for USD $1.4bn of assets under management.
As we work to improve property and places, we focus on creating sustainable communities, reducing the impact of the built environment by achieving a net-zero carbon footprint across our portfolio by 2030 and improving the wellbeing of the communities where we operate.
We are part of Grosvenor Group, a privately-owned international property company. With a track record of over 340 years, the Group develops, manages, and invests with a purpose of improving property and places to deliver lasting commercial and social benefit.