Last week, Shui On Land, the company behind the development of Xintiandi, has invested 1.67 billion yuan (238 million dollars) to develop two new sites in the Hongqiao area. The sites will be located near the National Exhibition Center. Shui On Land commented: “The region is undergoing fast development and the residential market is in high demand […] It is expected that the development of the land will contribute good revenue stream to the Group in coming years,” The Chinese economy had contracted by 6.8 percent in the first quarter of the year due to the coronavirus. This investment signals the Chinese economic growth may be picking up this month. The new purchase will help to develop the Hongqiao area where Shui On already owns a commercial complex called “The Hub”.
Initiated in 1990 the Xintiandi project was designed by the architecture firm Skidmore, Owings & Merrill. Inspired by the mid-19th century Shanghai’s iconic architecture of the shikumen (old-gate), the area aimed at creating a new dynamic center in the city with new restaurants and high-end brands stores such as Burberry, Lululemon, Sephora, Swatch, Tesla and Tom Ford. Quickly it became a hot-spot attracting thousands of tourists and locals daily, the success of the area has driven many cities all around China to imitate and create their own “Xintiandi” or more accurately they own “Tiandi” areas.
The recent 268 million dollars purchase comes after several other investments the firm has done in Shanghai in the past years. In 2018 the company has bought a big part of Xintiandi that it did not own yet: those 21.9% represented an investment of 478 million dollars. Last year Shui On Land also purchased four parcels for a total area of 176,000 square meters to start developing its latest project called Panlong Urban Village Redevelopment project. Located in the Qingpu District, one-stop from the National Exhibition and Convention Center, this new project will become a new residential landmark for the city. The two new parcels will cover a total area of 33,618 square meters as part of Panlong Tiandi. Vincent Lo said: “The Panlong project is strategically located in Hongqiao downtown area. Its transformation is in line with the strategic development goals of the area, supporting the continuous development of Hongqiao into a multi-functional center and helping improve urban functionalities”
Vincent Lo concluded: “We are very optimistic about the prospect of this business and trading hub for the Yangtze River Delta region and are confident in transforming the site into a new landmark which will support the continuous development of the Greater Hongqiao area.” This investment marks a new stage for the booming economy of Shanghai, by making this purchase fresh after the end of the pandemic restrictive measures, Shui On Land shows its confidence in the city’s ability to generate business and drive strong traffic to new residential areas post-covid19.
Are you up for an aerial ride through Xintiandi? Have a look below: