Less than three months after announcing a RMB20 billion (US$ 3.1 billion) fund to redevelop commercial properties in China’s first-tier cities, Warburg Pincus-backed Nova Property and Sunac China Holdings have teamed up to acquire a pair of commercial buildings in Shanghai’s Huangpu district for RMB1.86 billion.

They have joined with Singapore’s Metro Holdings and Urumqi-based Hualing Group to take a 90 per cent stake in the Shanghai Square shopping centre, formerly known as Infiniti Plaza, from Lanzhou Minbai Shareholding Group, a subsidiary of Zhejiang private enterprise Honglou Group.

As part of the deal, the investors have also won the rights to a second 14,372sqm retail property a few blocks east of Shanghai Square, reports Mingtiandi.

Sunac and Qian Wang, chairman of Nova Property, will take 20 and 10 per cent stakes respectively in the consortium, while Hualing Group and Metro Holdings will both own 35 per cent. Honglou Group is retaining a 10 per cent interest.

Close to Lippo Plaza, Lai Fung’s Hong Kong Plaza and other major commercial developments, the six-storey retail complex is five minutes’ walk from the Dashijie metro station.

The seller is also offloading its full ownership of the Shanghai Fudu Commercial Building near Yu Garden. The seven-storey commercial building houses about 600 shops and office space.