Joy City Property Ltd, the flagship commercial real estate brand of COFCO Group, has agreed to acquire a shopping mall in Shanghai's Putuo District from a consortium of investors led by Grosvenor Vega China Retail Fund.
Joy City will pay about 1.4 billion yuan (2 million) for Parkside Plaza, a 121,995-square-meter mall adjacent to Changfeng Park, the company said in a filing to the Hong Kong stock exchange late on Tuesday.
The acquisition provides an excellent investment opportunity and further strengthens the company's established presence in Shanghai's property market, according to the filing.
Sales proceeds from the mall, which was bought by Grosvenor in 2010 and opened in December 2011, will be reinvested in the commercial, residential and mixed-use sectors in Shanghai, said Brenda Chung, executive director and China chief representative of Grosvenor Asia-Pacific.
Parkside Plaza will possibly be rebranded by year's end to become the second Joy City mall in Shanghai, Winshang.com said yesterday.