Metro Holdings buys 35% of JV that’s acquiring Shanghai mixed-use building
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Metro Holdings, together with other JV partners, is acquiring a 90 per cent stake in Shanghai Plaza for RMB2.9 billion (US$613 million).
The mixed-used commercial building, with a gross floor area of 40,693sqm spans seven floors in Huai Hai Zhong Road, Huang Pu district, one of the most densely populated urban districts in China. It is also near the shopping district of Xintiandi, People’s Square and the Lujiazui CBD.
Under the JV agreement signed by the investor, Shanghai Xing Chu Business Consulting, a wholly owned subsidiary of Metro China Holdings, will contribute $56 million for a 35 per cent stake in Shanghai Yi Zhou Property Management, which will be used to acquire and run Shanghai Plaza.
Questions & Answers
Q.What is the total cost for the 90% stake in Shanghai Plaza?
What is the total cost for the 90% stake in Shanghai Plaza?
The acquisition of the 90% stake in Shanghai Plaza is valued at RMB2.9 billion. This amount is equivalent to US$613 million, as stated in the article concerning the mixed-use commercial building purchase.
Q.What is the specific role of Shanghai Yi Zhou Property Management in this deal?
What is the specific role of Shanghai Yi Zhou Property Management in this deal?
Shanghai Yi Zhou Property Management is the entity that will be used to acquire and subsequently run Shanghai Plaza. Metro Holdings' subsidiary, Shanghai Xing Chu Business Consulting, is contributing to gain a stake in this management company.
Q.Where is the Shanghai Plaza mixed-use building located?
Where is the Shanghai Plaza mixed-use building located?
Shanghai Plaza is situated on Huai Hai Zhong Road within the Huang Pu district, which is described as a densely populated urban area in China. It is also near prominent shopping and business districts.
Q.What is Metro Holdings' financial contribution for its 35% stake in the JV?
What is Metro Holdings' financial contribution for its 35% stake in the JV?
Metro Holdings, through its wholly owned subsidiary Shanghai Xing Chu Business Consulting, is contributing $56 million. This investment secures their 35 per cent stake in Shanghai Yi Zhou Property Management, the joint venture acquiring the building.
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