SHANGHAI-Beijing-based SOHO China Ltd. has closed on its planned $500 million purchase of the 1.1-million-square-foot Shanghai New World Changning Commercial Center here. The seller was Shanghai Trio Property Development Co. Ltd., which built the office tower last year.

The building, at Zhongshan West Road in the Changning District, includes a 136,000 square feet of retail. The buyer has changed the name of the building to SOHO Zhongshan Plaza. Savills China represented the buyer in the transaction.

The acquisition of SOHO Zhongshan Plaza project represents the continuation of SOHO China´s consistent strategy to focus on commercial property in Beijing and Shanghai’s prime locations situated along major transportation networks. The buyer entered Shanghai two years ago, and has since purchased six other buildings in the city, for a total of $2.29 billion. The company said in a May press release that the goal is to acquire $2.34 billion of product in the city, as well as more property in Beijing.

The commercial real estate market is growing at a rapid rate in Chinese cities, and earns average returns for investors of about 6%. Albert Lau, managing director of Savills China, said in a recent statement that as China's economy continues to experience positive growth, domestic and international corporations seek quality office space in Shanghai - its business capital.

A number of large office and retail properties here traded hands in August. Deals include CapitaMalls Asia paying more than $1.5 billion for the 1.5-million-square-foot Minhang Plaza and the 2.4-million-square-foot mixed-use Hongkou Plaza mixed-use towers, and Temasek Holdings Ltd. buying the 667,000-square-foot Silver Tower for $372 million from Pacific Esplanade.