As one of the largest diversified real estate groups in Asia, Kaide Group’s every move in the Chinese market is particularly closely watched by the market.
Recently, it was revealed that Kaide Group plans to sell 70% of the Shanghai Pudong Development Building, which was acquired in 2019, for 1.8 billion yuan. The project is located in the core commercial district of Lujiazui, Shanghai, with an assessed value of 2.524 billion yuan. In response to this, a representative from Kaide Group stated, “The news is untrue, and the group will continue to develop its business in China
According to public information, Shanghai Pudong Development Building was completed in 1999 and initially belonged to Guosheng Group, a major industrial project investment and financing platform of the Shanghai Municipal Government. In 2008, Guosheng Group began to divest its real estate business, and HNA Real Estate acquired 100% equity of Shanghai Pudong Development Building project company and 721 million yuan in debt for 1.475 billion yuan.
It is reported that after the completion of the acquisition, HNA Real Estate and Hengtai Securities jointly issued “Hengtai Haorui HNA Building REITs”, which is the first class REITs project on the Shanghai Stock Exchange and the first class REITs project in China with a single office property as the underlying asset.
Until 2019, Kaide Group officially entered the market and established a joint venture with a non affiliated third-party company in a 50:50 ratio, investing 2.752 billion yuan to acquire approximately 70% of the area of Shanghai Pudong Development Building. The acquisition includes office buildings on floors 8-19 and 21-32, with a total above ground construction area of 41773 square meters. After the completion of the above transaction, the project also became China’s first market-oriented exit of the asset-backed special plan. The reporter learned that after acquiring Shanghai Pudong Development Building, Kaide Group carried out a two-year large-scale renovation to make it meet the standards of Grade A office buildings.
On the same day, Kaide Investment Co., Ltd. (hereinafter referred to as “Kaide Investment”), a real estate listing platform under Kaide Group, signed a strategic cooperation agreement with the Suzhou Industrial Park Management Committee to land the world’s 11th Raffles City in Suzhou, Jiangsu Province.
Kaide Investment is driving the process of light asset transformation while achieving asset renewal. On November 22nd, Kaide Investment announced on Investor Day that by accelerating capital circulation and using recovered capital to invest in new funds, it has further promoted the development of Kaide Investment’s fund management business, including deepening its business in China through RMB funds, and providing strong support for the company’s transformation towards light assets and achieving growth in fund asset management scale.
