Shopping center sold for US$60.2m
( 2003-09-02 09:45) (Shanghai Daily)
A local retail conglomerate has sold a property on Nanjing Road Pedestrian
Mall to a businessman from Wenzhou, Zhejiang Province, for about 500 million
yuan (US$60.2 million).
The buyer, identified by his surname Huang, paid for the right to use the
six-story shopping complex, close to the intersection of Nanjing Road and
Shandong Road, for 40 years, sources with the Shanghai Friendship Group
Incorporated Co, the building owner, said yesterday.
Huang bought the building under the name of Shanghai Fato Mechanical &
Electrical Equipment Co Ltd, and he will continue to operate retail businesses
in the building, the sources said.
Currently, the building houses Sunwards Department Store after the
Seoul-based firm signed a 10-year leasing agreement with Shanghai Friendship
last year.
However, insiders say the Sino-Korean cooperation broke off earlier this year
due to a scarcity of tenants and disputes with Shanghai Friendship.
"The store only opened its first floor and part of the second floor as a lack
of tenants and some economic disputes are to blame," said Chen Hongxiang, an
official with the Commercial Commission of Huangpu District, where the shopping
center is located.
The commercial building, which offers nearly 30,000 square meters of shopping
space, has already changed hands four times since it was completed in 1995 as
Donghai Shopping Center on Nanjing Road, China's premier shopping
street.
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