Shui On Land and its affiliated joint venture partner SOCAM Development are selling its mixed-use Dalian Tiandi project to Yida China Holdings for $701 million.
Yida China Holdings will buy out the remaining stake it does not own in the 32 million-square-foot mixed-use project in the northeastern city of Dalian.
Yida already owns an effective 30 percent stake in Dalian Tiandi through its ownership of a 22 percent interest in the project plus a 10.3 percent stake in holding company Richcoast Group, which in turn holds a 78 percent interest in the project.
The project is not completed. It consists of office, residential, commercial, and retail properties, hotels, educational facilities and a business park. According to the firm’s 2017 interim reported 3.2 million square feet of residential, office, retail and serviced apartment space had been completed (not counting 5.3 million square feet of car park and other facilities), while another 9.5 million square feet was under development and 16.9 million square feet is planned. Some 3.1 million square feet of space is expected to be completed from the second half of 2017 through 2020.
Shui On Land has been actively selling its assets since 2013. “The transaction enables [Shui On Land] to optimize the value of some of its mature and/or underperforming properties, to improve its overall asset turnover rate, and to recycle its capital into other new opportunities,” according to the release.
This year Shui On Land sold an 80 percent stake in its Chongqing Tiandi complex to China Vanke for $598 million and a 50 percent stake in Ruichong Xincheng, another mixed-use Shanghai project, for $1.16 billion.
