Li Ka-Shing Companies to Sell Lujiazui Project for $1.16B

Billionaire Li Ka-shing’s Hutchison Whampoa Ltd. and Cheung Kong Holdings Ltd. will sell a project in Shanghai’s Lujiazui financial district to buyers including China Everbright Ltd. for $1.16 billion.

The companies will each sell a 50 percent stake in Extreme Selection, the owner of the company developing the project at Lujiazui Ring Road, Hutchison said in a statement to Hong Kong’s exchange. HYZL Development Co. and HYZL Investment Co. will each buy 47 percent, while Diamond Gate Group Ltd., a China Everbright Ltd. subsidiary, will take the remaining 6 percent, according to an Everbright statement today.

Hutchison and Cheung Kong announced in October 2006 that they would spend 1.74 billion yuan ($285 million) to develop real estate in Lujiazui. Some 64 overseas companies had their regional headquarters in the 31.8 square-kilometer district, according to a government website for the area.

The Oriental Morning Post reported in August that Cheung Kong planned to sell the Oriental Financial Center office building, the only property with a Lujiazui address listed in the company’s annual report.

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