Xiaomi's Land in Shanghai Returned, Potential Losses Concerned

TapTechNews May 22nd news, the commercial office land in Xuhui Binjiang, a core area in Shanghai, which Xiaomi spent 1.55 billion yuan to acquire 3 years ago, has been returned and included in the 2024 land reserve plan. Some netizens worry that Xiaomi may lose 310 million yuan in deposit, or even the entire 1.55 billion yuan of land price.

In response, Wang Hua, general manager of the public relations department of Xiaomi Group, responded to The Paper that the municipal planning land has changed and the government has a need to acquire and store. But for the deposit matter, Wang Hua did not respond.

In October 2021, Mi Space (Shanghai) Information Technology Co., Ltd., a subsidiary of Xiaomi, once won the above plot with 1.55 billion. Xiaomi said at that time that this plot was the Shanghai headquarters land planned as early as 2018, and Xiaomi's Shanghai headquarters has many functions, including mobile phone R & D, finance, Internet and other businesses. The construction plan of this land is to combine multiple business teams together.

TapTechNews found out that on March 21, the Shanghai Municipal Planning and Natural Resources Bureau released the Reply on Agreeing that One Plot in Xuhui District Be Included in the 2024 Land Reserve Plan in Advance, in which the main character of the plot, the Xh128D-07 plot in Xietu Street, is exactly the above plot of Xiaomi.

The transfer document shows that the above plot will be committed to creating a highland of financial and intelligent application agglomeration; focus on introducing financial headquarters enterprises, innovative technology enterprise headquarters and R & D centers to promote the integrated development of industries such as finance, Internet of Things, intelligent manufacturing and intelligent applications.

According to public information, this plot is about 500 meters from Damuqiao Road subway station and is located next to the Huangpu River. It belongs to the expansion area of Shanghai West Bank Financial City, covering an area of about 16,700 square meters. The use is for commercial land and office buildings, with a plot ratio of 3 and a floor area of about 50,000 square meters.

In accordance with the process of public bidding, auction and listing of state-owned land, enterprises need to pay 20% of the land price as deposit before participating in the land auction. Once the subsequent transaction cannot be completed due to the reasons of the grantee, or the grantee applies within two years, the deposit will not be refunded; and if the transaction has been completed and exceeds the specified period, and the grantee fails to carry out development and construction in accordance with the relevant provisions of the plot, or other situations trigger the return of land event, then the entire land use right transfer payment will not be refunded.