Market cool to SOHO China expansion plans

SHANGHAI: Real estate developer SOHO China's plan to expand outside of Beijing by acquiring an office building in Shanghai for over 2 billion yuan has been termed a lackluster move by property analysts.

The Hong Kong-listed developer has agreed to acquire Donghai Plaza, a 52-storey office and retail complex, on the prosperous West Nanjing Road for 2.45 billion yuan from the real estate arm of Morgan Stanley, the company said in a filing to the Hong Kong stock exchange on Tuesday.

The transaction marks SOHO China's entry into the highly overpriced Shanghai realty market. The company is the largest realty developer in Beijing.