New World Group Wins Bid for the Middle Huaihai Road Land Parcel in Huangpu Region Shanghai for RMB4,111 Million, Expands K11’s Presence in Eastern China, Redefines the Modern Commercial Retail Sector
New World Development Company Limited (“New World Group” or “the Group”, Hong Kong stock code: 17 ) announced that, the Group has successfully won the bid for 055-2 land parcel, unit C020102 in Huaihai Community, Huangpu District (Middle Huaihai Road land parcel, Huangpu District) for RMB4,111 million. Following the mainland China’s first-ever K11 Art Mall settled in Shanghai in 2013, New World Group leaped into Shanghai again and brought a brand-new landmark lavished with architectural and artistic beauty, while further improving K11’s strategic layout in Eastern China and taking the initiative to adopt the aesthetic consumption model.
Mr. Adrian Cheng, Executive Vice-chairman and Chief Executive Officer of New World Development Company Limited and Executive Chairman of New World China Land Limited indicated, “We have successfully won the bid for Middle Huaihai Road land parcel, Huangpu District by taking the advantages of the premium brand of “New World Group” and the synergies of its diversified business. I will continue to lead the team to bring artistic and cultural elements to the city in an unconventional way, enrich people’s lives, and promote business development through disruptive innovations. Through this, we strive to achieve the Group’s vision of ‘Creating Shared Value.’ In addition, we will create an impetus for long-term social development while enhancing the life experience of the public.”
A Premium Land Parcel: Huaihai Community with Immeasurable Development Value
The land parcel that the Group has won the bid for is a commercial land, which covers an area of about 17,170.80 sqm. With a total developable area of 128,683.2 sqm, it lies in the prime location of Middle Huaihai Road Commercial Circle, stretches from Huaihai Park in the east to Songshan Road in the west and from Taicang Road in the south to the planned green space in the north, and sits close to South Huangpi Road Station of Subway Line 1 and 14, demonstrating an excellent advantage of convenient transportation. In Shanghai featuring scarcity of land resources, this is the first plot released along the Huaihai Road over the past 20 years or so and boasts immeasurable artistic and economic development values. The project will be built into an upscale commercial complex with a combination of artistry and modernity, and seek harmonious coexistence and common development with the surrounding commercial circles.
A Disruptor of Traditions: Seeking a Path for the Art-oriented Business Model and Set the Consumption Trend among the New Generation
By virtue of his extraordinary assertiveness, sharp and unique insight, and innovative business thinking, Mr. Adrian Cheng scented out the scarcity value of the land parcel, as well as the infinite potential and possibilities thereof. He led the Company to seize the land parcel with great motivation and execution, and mapped out the blueprint of coordinated development with the predecessor K11 Art Mall.
As a man behind the curtain of new retail and new culture, Mr. Adrian Cheng has integrated international arts and cultural connotations into the development of commercial projects, created brand-new business forms that integrate art with commerce, and created a business model of museum retail, becoming one of the most influential business persons in China. In 2008, he founded the K11 brand, which is the first global original brand integrating art, culture, and nature into the essence of the brand. Since the opening of mainland China’s first K11 Art Mall in 2013 in Shanghai, K11 has been so far extended to Guangzhou, Shenyang, Tianjin, and Wuhan, to break the traditional business model, bring unprecedented experiences to the public, and lead the innovative trend of art shopping. Built over a decade and located on the edge of Victoria Harbour, K11 MUSEA is Mr. Adrian Cheng’s grandest and richest expression of the brand. He teamed up with 100 creative talents to make K11 MUSEA a landmark of cultural Silicon Valley and to reshape the landscape of Victoria Harbour. The Middle Huaihai Road land parcel, Huangpu District, a hard-won land resource, will follow the steps of previous projects, and coupled with Huaihai Road’s century-old history, the project will become a complex with a strong cultural atmosphere featuring the combination of tradition and modernity.
A Big Picture: Improve NWC’s Development in the Yangtze River Delta Region Making progress together with our Country
The project is the fourth K11 complex project located in the Yangtze River Delta region. Within a few years, the Group has built projects in Ningbo, Hangzhou, and Shanghai, developed with a faster speed to seize more land parcels with greater competitiveness and potential, and fully completed the plan in the Yangtze River Delta region.
Ms. Huang Shao-Mei, Echo, Executive Director of New World Development Company Limited and Director and Chief Executive Officer of New World China Land Limited signed the transaction confirmation on behalf of the Group and said, “Along the path of development, NWC always holds that opportunities and challenges coexist. The sudden outbreak of COVID-19 this year had various impacts on the Company, which made us think further about the current international relations and future social and economic development. We firmly believe that all difficulties are temporary. Faced with so many uncertainties, we still have strong confidence in investing in the mainland and seek shared development with the nation. Under the guidance of Mr. Adrian Cheng’s extraordinary vision and strong leadership, we will thoroughly explore the advantages of the Yangtze River Delta region, and assist the Group to improve its business layout in Eastern China while making another growth pole after the Guangdong-Hong Kong-Macao Greater Bay Area.”
In future, by harnessing its rich experience and practice in building large-scale international complexes, sticking to the brand commitment, “Soul of the City”, giving the Group’s brand personality, The Artisanal Movement into full play, NWC will reproduce the aristocratic cultural customs of Xiafei Road, old Shanghai, building an urban landmark that integrates top international arts and cultural connotations in Shanghai, and creating a city card of the Yangtze River Delta region with the spirit of craftsmanship.