SHANGHAI — A 23.6 billion renminbi, or $3.4 billion, commercial real estate deal has reignited interest in the future of SKP‘s Guangzhou project, which was first unveiled in 2022.
The project, which was said to be a part of the Tianhe District Machang, or Racecourse area, was auctioned off Wednesday to Yuexiu Property after nine hours and 243 rounds of intense bidding.
Founded in 1983, Yuexiu Property is a state-owned real estate developer with major developments across Shanghai, Beijing, Shenzhen and Guangzhou.
The 1.8 million-square-foot plot ranks second in Guangzhou’s land transfer history, with the first being the Asian Games City plot sold for 25.5 billion renminbi, or $3.7 billion, in 2010.
A total of eight companies participated in the bidding, including top developers Poly Developments, Yuexiu Property, Pearl River Enterprises, China Merchants Group, CR Land, GZCCI Group, Guangzhou Metro and Guangzhou Municipal Construction Group.
The project, a part of the city’s downtown commercial hub Zhujiang New Town, will be developed into an urban complex that includes a high-end residential area, luxury commercial space, office buildings, sports venues, a green corridor and educational facilities.
The redevelopment site, originally a commercial horse racing venue, was transformed into a mixed-use hub that attracted automotive and furniture vendors, then underwent a swift evacuation process in 2024.
According to local media reports, a major focus of the Machang project is to attract high-end fashion and luxury retailers. The local government has set a target of generating cumulative sales contributions of no less than 30 billion renminbi, or $4.3 billion, within six years of the project’s launch.
The retail section, which will be adjacent to “an internationally renowned five-star hotel and branded service apartments,” according to governmental filings, is reportedly set to be managed by SKP, one of the most profitable luxury retailers globally. In 2025, the Chinese retailer logged a group-wide 15 percent increase in turnover, according to sources familiar with the matter, who requested anonymity. Its flagship SKP Beijing project recorded a 6.8 percent gain to 23.5 billion renminbi, or $3.4 billion, in the period, sources added.
Further fueling speculation, renderings in leaked government documents featured an L-shaped architecture with SKP’s signature geometric lighting system.
If confirmed, the Guangzhou project would be SKP’s first outpost in the southern China region, and its first in a first-tier city outside of Beijing.
Its establishment will also shake up the city’s retail scene, which has been long dominated by Swire Properties‘ Taikoo franchise. The highly anticipated Taikoo Li Julong Wan project was opened last December, while Taikoo Hui Guangzhou, the city’s ultimate luxury destination, is undergoing an expansion process.
SKP operates four shopping malls in Beijing, Xi’an, Chengdu and Wuhan. Wuhan SKP, its latest project, opened in 2024.
