(Yicai Global) March 22 -- Fosun International plans to invest CNY6.34 billion (USD1 million) to take full ownership of the Bund Finance Center, a landmark commercial property in the center of Shanghai.

The Chinese conglomerate, controlled by well-known Shanghai businessman Guo Guangchang, said yesterday that it intends to take a 50 percent stake in Shanghai Fosun Bund Real Estate from Zhongrong International Trust. After the deal, Fosun International will control 100 percent of Shanghai Fosun Bund Real Estate, which owns the BFC.

The appraisal value of the BFC was CNY23.1 billion (USD3.32 billion) at the end of 2021, Fosun International said. The equity value of Shanghai Fosun Bund Real Estate after deduction of liabilities was CNY12.7 billion (USD2 billion), it added.

Fosun International’s shares [HKG: 0656] closed up 3.4 percent at HKD8.46 (USD1.08) today, giving it a market value of about HKD70.3 billion (USD9 billion).

Located in the city center’s Huangpu district, the BFC has a total area of more than 420,000 square meters, and is home to offices, shops, restaurants and entertainment venues. It is also adjacent to Yuyuan Tourist Mart, another Fosun International project.

Yuyuan Tourist Mart [SHA: 600655], also controlled by Guo, surged by the exchange-imposed daily limit of 10 percent to close at CNY10.21, for a market cap of CNY39.7 billion.

Shanghai Zendai purchased the land where the BFC stands for CNY9.2 billion in 2010, a record price for a single piece of land at that time. Fosun International acquired a 50 percent stake in the project in 2011.

Editor: Tom Litting