The Plaza 66 developed by Hang Lung Properties in Shanghai [Photo/IC]

Hang Lung Properties, a Hong Kong-based developer that focuses on building shopping malls, purchased a plot of land in Wulin area, Xiacheng district of Hangzhou, for 10.73 billion yuan ($1.55 billion) after more than 300 rounds of bidding four months ago.

The deal marks Hang Lung's expansion into the capital city of East China's Zhejiang province. After six years, a new building complex, expected to be a landmark in Hangzhou, will rise from the ground in the heart of the city.

Hang Lung had prepared for the deal for four years. In a letter to shareholders, chairman Ronnie Chan expressed his confidence and expectations about the Hangzhou project. He wrote that Hangzhou is one of three Chinese cities boasting robust scientific and technological growth, and its development of consumer goods and transport also confirmed the city's economic strength.

"The Wulin area is quite mature with a large flow of people passing by every day," said Kwan Chuk-fai, director of the group's corporate communications and investor relations. "And considering the increasing number of scientific and technological companies, there must be great demand for office buildings in the city."

In addition, as a famous tourist city, Kwan thought the potential for consumption is very high in Hangzhou. The middle class is pursuing a quality, tasteful life in China with the acceleration of urbanization, the director said.

Not only Hangzhou, but its neighboring cities such as Wenzhou, Taizhou, Huzhou and Shaoxing, also have favorable climates for startups, making Hang Lung look forward to the radiation effects of the Hangzhou project and further opportunities across Zhejiang.

Since the G20 Hangzhou Summit was held in September 2016, the city has become a hotspot for foreign investment. As its downtown area, Xiacheng district has been working to attract world-renowned companies in recent years. This year, to attract more businesses, the district set up a center which provides a variety of services such as policy interpretation, market exploration, finance and training by virtue of big data and internet technologies.