Xintiandi Developer Adds Four Shanghai Parcels In Three Days As Pandemic Eases

Shui On Land, the developer of Shanghai’s swank Xintiandi area, on Thursday added two more parcels of land in the city – its third and fourth purchases in just three days – as hope builds for a gradual recovery from the Covid-19 global pandemic.

Shui On, led by Hong Kong billionaire Vincent Lo, on Thursday paid 429.6 million yuan, or $61 million, for land use rights for two commercial parcels in the Hongqiao area near the National Exhibition Center and one of the city’s two major international airports. Shui On “is planning to bring its flagship ‘Tiandi’ retail product to (the) Hongqiao area and establish a new social and culture destination in West Shanghai,” the company said in a statement.

On Tuesday, Shui On said it paid 1.67 billion yuan, or the equivalent of about $238 million, for land use rights for two other sites in the Hongqiao area to be used for residential projects. (See earlier post here.) Shui On already operates a large commercial complex in Hongqiao called “The Hub.”

Xintiandi, launched in a dilapidated part of central Shanghai in the 1990s, is today an iconic tourist and nightlife district that attracts thousands of visitors daily to retail shops that include Burberry, Sephora, Tom Ford, Swatch, Lululemon and Tesla.  Shui On has built follow-on “Tiandi” projects in major Chinese cities including Chongqing and Wuhan, and the Shanghai site has inspired imitations around the country.

China’s economy has been hit hard by fallout from the pandemic. GDP in the first quarter fell by 6.8% from a year earlier. Signs suggest growth is picking up, though worries remain about a “second wave” of infections, rising geopolitical tension with the U.S., and economic fallout from a new national security law for Hong Kong unveiled by Beijing on Friday. Hong Kong’s benchmark Hang Seng index plunged by 5.6% and Shui On’s shares dropped by 4.5%.

Riot police fired tear gas at protesters in Hong Kong and arrested more than 180 people in the Causeway Bay and Wan Chai tourist areas after thousands demonstrated against the law, the South China Morning Post reported today.

Lo is worth $1.9 billion on the Forbes Real-Time Billionaires List today.

See related stories here:

Trendy Xintiandi To Gain “Red” Tourist Attraction

From Starship To Underground Trees: Ben Wood Talks About Shanghai’s New ‘Hub’

@rflannerychina