CapitaLand has acquired a 70 per cent stake in Shanghai Guang Chuan Property for 1.95 billion yuan (US$318.18 million).

A wholly-owned subsidiary of Shanghai Shentong Metro Assets Management (Shentong Assets), Shanghai Guang Chuan Property owns a prime site in Hanzhonglu, Zhabei District, Shanghai which will be developed into a mixed-use development comprising residential, office and retail components.

The office and retail use will have a gross floor area of 74,945 sqm while the residential use will have a GFA of 30,096 sqm.

The project will commence in 2015 and is expected to be completed by 2017.

CapitaLand says it is its first partnership with Shentong Assets.

“The acquisition of Shanghai Guang Chuan Property is in line with CapitaLand’s strategy to further strengthen its presence in China,” said CapitaLand China CEO Jason Leow.

“Shanghai Shentong Metro Group is constructing and operating Shanghai’s metro network and looks forward to collaborating with reputable international developers to build quality developments atop the metro network,” adds Shanghai Shentong Metro Group president Yu Guang Yao.

A wholly-owned subsidiary of Shanghai Shentong Metro Group, Shentong Assets is responsible for the development and asset management of properties above the group’s metro stations or along the metro lines in Shanghai.