By Chia-Peck Wong and Sophie Leung
Aug. 18 (Bloomberg) -- Soho China Ltd., the biggest developer in Beijing s central business district, will enter Shanghai with the purchase of an office and retail development for 2.45 billion yuan ($359 million).
The company plans to resell the completed 52-storey tower within a month or two, Chairman Pan Shiyi said in a conference call today. He didn t give a target selling price. Soho China is buying Dong Hai Plaza from a fund run by Morgan Stanley.
Shanghai s high income levels and commercial vibrancy should enable us to achieve comparable sales results there as those we have seen in the capital, Pan said in an e-mailed press release before the call.
Beijing-based Soho is shifting to commercial property as it offers high profits and is less subject to policy controls than housing, Pan said in May. Sales of homes, offices and shops in China surged 60 percent by value in the first seven months.
The fully furnished building on Nanjing West Road that Soho is buying was completed in June 2008, the developer said in a filing to the Hong Kong stock exchange today. Soho aims to complete the purchase on Sept. 1 and will rent out space in the building while awaiting buyers, Pan said on the conference call.
Pan said Soho doesn t intend to start developing housing in Shanghai because costs are too high.
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