by Randyl Drummer
The U.S. unit of Shanghai-based Greenland Group and a group of equity partners have acquired a 42-acre development site at Oyster Point along the waterfront in South San Francisco, one of the world’s pre-eminent biotechnology hubs.
The joint venture, which includes Greenland USA as majority shareholder and equity partner Ping An Trust, along with minority equity partners Agile Group and Poly Sino Capital Ltd, plan to develop The Landing at Oyster Point, a $1 billion life sciences office and research and development complex.
A Chinese-language filing listed the purchase price from owner Shorenstein Properties as US $171 million. Shorenstein and SKS Investments acquired the property in 2008 and 2009 and entitled it through the city as a mixed-use development.
The project will include 2.25 million square feet of development, including public space and recreational areas, built in phases that will begin with 500,000 square feet in the southern portion of the property. Construction is expected to begin by mid-2018 following infrastructure improvements by the city of South San Francisco, including streets, utilities and grading.
The property along Highway 101 would be a coveted location for biotech and life science companies. South San Francisco has attracted more than 240 such firms to the area.
The vacancy rate in the South SF East of Hwy 101 submarket is about 6.7% for 4- and 5-Star grade office properties, according to CoStar analytics. There is currently no significant commercial construction under way in the submarket.
Tenants absorbed about 173,000 square feet in the submarket in the second quarter after three quarters of flat or negative demand.
Gang Hu, CEO of Greenland USA is chairman of the Oyster Point Development, LLC joint venture. Executive vice president Taotao Song, who oversees Greenland USA’s west coast operations, will serve as CEO.
The project follows Greenland USA’s $1 billion-plus investment in Los Angeles’ Metropolis and a $6 billion plan to develop New York’s Pacific Park Brooklyn.