The latest big ski deal to hit the city may not be as exciting as the latest big-ticket property deal, but it could still be worth the hassle.
The deal between a group of Chinese buyers, which includes an airline, a hotel and a Chinese company, has already brought in at least $10 million in cash.
But if the deal goes through, the potential for a big payday is even greater.
In a bid to attract more investors, Shanghai’s top real estate agency, Shangri-La, said on Tuesday that it has teamed up with another big Chinese developer to buy the Shanghai World Resort, an 8.6-hectare (27-acre) property just outside the city.
The group, which calls itself the Shangri La Group, is part of the Shanghai Group, a group which includes the country’s biggest real estate developer, Sun Hung Kai.
The Shanghai World Hotel, which is the most expensive property in the city, will have the world’s most luxurious resort at its centre, including a private beach, indoor spa, and indoor tennis courts.
It will also include a 12-car garage with a helicopter parking lot.
Shangri-la said the group will sell the hotel through the Shanghai Development Corp, which will operate the resort, and its Chinese partner, the Beijing-based Shanghai Jiaotong International Hotel Group, which operates other properties in the Chinese city.
With the help of Chinese state-backed banks, Shangripas Group will also finance a hotel construction and renovation project.
If all goes according to plan, the Shanghai-based group is set to take the majority of the hotel’s market value, but there’s a catch: the hotel is to be leased by Shanghai Jiasoft Group, the company which owns the Shanghai Wanda Group, one of China’s biggest state-run property owners.
The new group is to have a 25 per cent stake in the hotel, with the remaining 25 per, 30 per and 50 per per per stake going to the Shanghai Jiansoft Group.
The Shanghai Jiesoft Group also owns the Guangzhou Guangdong Development Corp and the Shanghai Shangri Group.
“This is an opportunity for us to leverage our strengths and bring in new investment to the city of Shanghai,” said the company’s CEO, Wang Zhenxuan.
“We are now looking for a partner who can help us further accelerate the development of this project.”
Wang is also a former member of the board of the Chinese Olympic Committee.
While the company may not look particularly exciting to some, it has plenty of potential to make money, said a Shanghai real estate expert who has worked with some of the citys top developers.
“This deal is probably one of the biggest deals of the year,” he said.
A number of Shanghai’s biggest property developers are working on a major property deal in the past few weeks, including the Shanghai Sun Group, China’s second-biggest developer behind Sun Capital, and the Guangdao Shangri Co, which owns Hong Kong’s Hang Seng Group.
Both are eyeing a hotel, and are reportedly planning to open new resorts in the future.
China has also launched a national advertising campaign, which has helped lure investors, and Shanghai’s real estate market is expected to recover after the recession.
But it is still unclear if a new hotel deal will boost the city’s housing market.
The city’s property market is also in a slump, with many developers saying they can no longer afford to build new properties.
The latest property deal also comes after the city announced a $1.8 billion bond issue to boost the local government’s budget.