Soho China sells part of Shanghai project to Ctrip
Mainland builder pockets HK$3.85 billion from the sale of less than half of the office-retail development on site bought for HK$1.96 billion
Mainland commercial property developer Soho China has agreed to sell just under half of its uncompleted office-retail project in Shanghai to Ctrip Shanghai for HK$3.85 billion, nearly double what it paid for the project site in 2010.
In a filing with the stock exchange, Soho said it had acquired the site for the office-retail project Sky Soho for HK$1.96 billion in 2010. The project is expected to be completed in the next quarter.
The Beijing-based developer said it had entered into a pre-sale framework agreement with Ctrip Travel Network Technology (Shanghai) over the sale of 100,167 sqmetres of Sky Soho.
The price tag translates into HK$38,435 per square metre.
"The company believes that the sale to an end user will bring more people and activities to Sky Soho, which will in turn facilitate the leasing of the remaining part of Sky Soho," chairman Pan Shiyi said.
After the completion of the sale, Soho will retain 128,130 sqmetres - 102,964 sqmetres of office space and 25,166 sqmetres of retail premises - as investment properties.
Ctrip intends to use the property as offices for its employees, especially for the technology and business innovation centres.
