(Hong Kong, May 28, 2018) Hang Lung Group Limited (Stock Code: 00010) and Hang Lung Properties Limited (Stock Code: 00101) today announced the successful acquisition of a land site for commercial development located in the affluent Xiacheng District of Hangzhou, for a bid value of approximately RMB10.7 billion, equivalent to approximately HK$13.1 billion. With an investment amount of around RMB19 billion, Hang Lung will develop a large-scale commercial mixed-use complex, comprising a world-class mall and office tower(s).
The acquisition of this premium site in Hangzhou extends Hang Lung’s reach to 11 developments in nine Mainland cities and marks a new milestone for the Company’s growth. Hangzhou is a unique city of many virtues: it is the capital city of Zhejiang Province, a top travel destination, culturally and historically important, one of China’s innovation hubs, and a commercial powerhouse. Coupled with Hang Lung’s deep experience in commercial property development, an exceptional commercial complex will emerge as an outstanding beacon of the cityscape. This also creates a strong synergy effect with Hang Lung’s flagship projects in Shanghai and Wuxi, and injects new energy into the commercial landscape of the area.
The Chairman of Hang Lung Group and Hang Lung Properties, Mr. Ronnie C. Chan, said, “We are thrilled to have successfully acquired this premium site in Hangzhou. The acquisition allows Hang Lung to further extend into another strategic location in order to capitalize on the opportunities across the Mainland. We have been very optimistic about the commercial and retail market in China. This land acquisition aligns with our long-term investment plan and we are confident that we will create great value for the City and Hang Lung from this world-class iconic landmark.”
The site is located at the historic Bai Jing Fang area in the affluent Xiacheng District of Hangzhou, well served by public transport and public amenities. It is the only remaining large-scale site for commercial development in the traditional commercial district in the immediate future. A site area of approximately 44,827 square meters and a maximum floor area of approximately 194,100 square meters, it will benefit from the unique advantages of this traditional commercial district with its well-established roads, infrastructure, and a large existing catchment area. Hang Lung is dedicated to developing a new world-class iconic landmark for the City.
Hangzhou is the capital city of Zhejiang Province and is the central point south of the Yangtze River Delta area. The City also attracts significant international travelers, and is economically vibrant. According to the National Bureau of Statistics and the Bureau of Statistics in Hangzhou, the City’s Gross Domestic Product (GDP) in 2017 amounted to RMB1255.6 billion, with a growth rate of 8%, higher than the 6.9% growth rate of the GDP of China as a whole in 2017. Total Retail Sales of Consumer Goods of Hangzhou in 2017 amounted to RMB571.7 billion, with a growth rate of 10.5%.
