2.16B, Hongkou North Bund residential land parcel was transferred without premium.

**Shanghai Qinqin Li Yu **Recently, Xiamen Guomao obtained the development rights for the Hongkou District C080101 Unit hk196-08 plot and hk196-06 plot through a publicly listed transfer process on the Shanghai United Property and Rights Exchange at a price of approximately RMB 2.16B, and has completed the signing.

The two plots are Hongkou 54&55 block, located within the area enclosed by Wujin Road, Wusong Road, Haining Road, and Zha Pu Road.

Among them, the south-side hk196-08 plot is a Class 3 residential land parcel, with a floor area ratio of 6.2, a height limit of 100 meters, a total construction area of 22,986㎡, and the area of small- and medium-sized unit residential apartments must account for at least 40% of the total residential construction area; the renovation standard shall not be lower than RMB 4,000/㎡.

The north-side hk196-06 plot is a commercial and cultural land parcel, with a total construction area of 9,148㎡.

The project was originally won at the reserve price of RMB 2.16B in the 2024 Shanghai fourth round of centralized land supply by Shanghai Qiqi Development and Construction Co., Ltd. (hereinafter referred to as “Qiqi Company”), a company under the North Bund Group.

After that, Qiqi Company planned to publicly transfer the 100% equity interest in Shanghai Kunsheng Development and Construction Co., Ltd., the project development entity it holds, and the corresponding shareholder’s creditor’s rights, in order to exit.

In December last year, the Hongkou District government website disclosed the relevant transfer approval reply; the overall transfer reserve price was initially not less than RMB 2.18B.

In February this year, considering the actual conditions of the current real estate market, the Hongkou District government agreed to adjust the transfer reserve price to not less than RMB 2.16B. Of this, the equity-related price is RMB 1.0 billion and the creditor’s rights is RMB 1.16B. The transfer will still be carried out through a public transfer on the Shanghai United Property and Rights Exchange.

The project is located in the Sichuan North Road sector. To the south across Haining Road is the North Bund sector. To the northeast, it is adjacent to Ruihong New Town, and is only about 300 meters from the Sichuan North Road Station on Metro Line 10. Surrounding commercial, education, and healthcare support facilities are well developed.

Zha Pu Road on the west side of the plots has a deep historical and cultural heritage, with cultural landmark sites such as the Victory Cinema and Jin Chao 8 Lanes distributed in the surrounding area.

At present, there are many new residential projects available for sale within the region. The nearby project Bund Rui Fu’s recent filing average price is approximately RMB 148.5k/㎡, while the Hong An Li style villas have an average price of about RMB 243k/㎡.

What is noteworthy is that this land parcel is subject to a combined grant of commercial-residential use. The proportion of commercial and cultural facilities is close to one-third and requires 100% self-holding. The north-side commercial and cultural plot also requires development under preservation principles, which places higher requirements on the development company’s financial strength and long-term operational capability.