Two investment grade commercial assets in the Huangpu District of Shanghai, Richgate’s retail podium and Ciro’s Plaza, are being sold by Jones Lang LaSalle.
Completed in 2006, Richgate is a mixeduse retail and residential development located in Xintiandi, one of the most prestigious commercial and residential precincts in Shanghai. JLL is marketing the three-storey street level retail podium via an expressions of interest campaign.
Comprising 121,958 sq ft (11,332.78 sqm) of gross floor area (GFA) with a current occupancy rate of 92%, Richgate’s retail podium is occupied by ANZ, Armani/Roca, BoConcept, De Dietrich, Citibank, China Merchants Bank, First Sino Bank, Hang Seng Bank and Shanghai Trust. The basement, currently undergoing refurbishment, has two anchor tenants—GL Plaza (a Japanese supermarket) and Will’s Gym—in addition to a variety of specialty tenants.
This sale offers a highly desirable opportunity for investors to acquire street front retail shops in the Xintiandi precinct. The property will provide an astute investor with a secure and long-term income stream, with the potential for rental and capital appreciation in a location that will remain attractive to retail tenants.
JLL has also been appointed as the joint sales agent to sell Ciro’s Plaza, a 914,588 sq ft (84,968.01 sqm) mixed-use (office and retail) development with a highly recognisable commercial address on Nanjing West Road.
Ciro’s Plaza comprises a 39-storey Grade A office building with 512,330 sq ft (47,597.01 sqm) of GFA and a seven-storey retail podium with 245,417 sq ft (22,799.99 sqm) of GFA. Tenants include HSBC, Abbott, NEC, Bank of Communications, Starbucks, Costa Coffee, McDonalds among others.
The property is situated in People’s Square, one of Shanghai’s most vibrant commercial corridors, an area well developed with several Grade A office developments and mid-end to high-end shopping centres. As such, the property has unparalleled accessibility, with strong connectivity throughout Shanghai via multiple metro lines, comprehensive bus networks and close proximity to major elevated roads.
The property has recently undergone extensive asset enhancement, involving a complete renovation to the office lobby and some common areas, as well as a major renovation and tenant repositioning of the retail podium.
The mixed-use nature of Ciro’s Plaza ensures a diversified income stream from its component parts as well as varied tenant exposure to a range of industries. This sale offering provides a unique opportunity to acquire an income-producing property with rental upside potential through market reversions, many of which are expiring in the next 18 months. It provides an astute investor with the ability to unlock significantly ‘unrealised’ value from a recently refurbished mixed-use project in an ideal location.