On 10 December 2015, LKK Health Products Group Limited (“LKKHPG”), a member of Lee Kum Kee, announced it has entered into a sale and purchase agreement to acquire Shanghai Corporate Avenue 3 (“the Property”) in a consideration of RMB 5,700 million (about HKD 6,870 million) through Bayline Global Limited. Bayline Global Limited is a joint venture between the respective subsidiaries of LKKHPG and Vanke Property (Hong Kong) Company Limited (“VPHK”) (SEHK stock code: 2202), in which LKKHPG ultimately owns 90% of the shares and VPHK ultimately owns 10% of the shares. Upon completion of the purchase, LKKHPG will engage VPHK’s subsidiary company V Capital to be the integrated asset manager of the Property going forward.
The Property, developed by Shui On Land Limited (SEHK stock code: 272), has a gross floor area (including the basement) of approximately 87,295 square metres. The Property comprises a 24-floor Grade A office tower with 23 leasable office floors and five floors of retail space, as well as about 384 car parking spaces.
Completed in the first half of 2015, the Property is scheduled to open at the end of 2015. Situated at No 168, Hubin Road, Huangpu District, Shanghai, the Property is located at the core block of the Xintiandi development and recognised as a new landmark in Shanghai. Being in close proximity to Huaihai Middle Road and Shanghai Xintiandi, the prime commercial business districts in Shanghai, the Property enjoys extensive supporting facilities and convenient transport connectivity. With great potential for appreciation, the Property is an attractive long-term investment.
The acquisition of the premium property demonstrates LKKHPG’s confidence in the future development of China and further strengthens the Group’s foundation for development.