350 Bush Street and 500 Pine Street to be first United States projects for Gemdale Corporation. Gemdale Corporation (600383.SH) and Lincoln Property Company today announced that they have formed a joint venture to develop 350 Bush Street, a 19-story, 372,000 square foot Class A office tower, incorporating the historic terra cotta facade and columns of the iconic San Francisco Mining Exchange Building, and 500 Pine Street, a 5-story 56,000 square foot office/retail development in San Francisco.
The 350 Bush Street and 500 Pine Street sites are strategically located in the heart of San Francisco’s North Financial District. Financial terms of the joint venture were not disclosed. For Gemdale Corporation, the joint venture marks the commencement of its targeted expansion into the United States and is a component of the Company’s Internationalization Strategy, following the Company’s successful $350 million bond offering in July 2012, representing the first bond issuance in overseas markets by a domestically listed Chinese real estate company.
An additional element in Gemdale’s Internationalization Strategy occurred in September 2012 with Gemdale¹s acquisition of a controlling stake in Frasers Property, a Hong Kong listed enterprise which has since been renamed Gemdale Properties and Investment Corp Ltd (0535.HK). Gemdale Corporation has successfully collaborated with a number of leading global institutional real estate investors in joint ventures in China’s real estate markets. Moreover, Gemdale’s joint venture with UBS Global Asset Management Real Estate in 2010 resulted in one of the first foreign real estate investment funds created in China tailored for global real estate investors. According to Michael Krupa, President of Gemdale USA, “We are delighted with our debut into the United States with leading national developer Lincoln Property Company in developing such an important and well-located project in San Francisco, a city which is experiencing some of the strongest office market fundamentals in the United States. Moreover, we are delighted to have the ability to help transform the fabric of the North Financial District. For Gemdale, the development of 350 Bush Street and 500 Pine Street provides a distinctive opportunity to preserve elements of the San Francisco Mining Exchange Building, the second oldest exchange in the United States.”
The 350 Bush Street Beaux Arts landmark building has a rich history and the exchange was instrumental in making San Francisco the financial capital of the Western United States. “Gemdale Corporation brings a long history of outstanding real estate development and community service to our joint venture in San Francisco. Together we are committed to developing an outstanding project that both we and the City of San Francisco will all be very proud of,” said John Herr, Executive Vice President of Lincoln Property Company.