SOHO China, a major real estate developer in the country, announced today that it had signed an agreement with a Shanghai company to buy a plot in the city's Caojiadu area for 1.634 billion yuan (US$249 million).

The deal, not secure yet until the 14,832-square-meter land becomes legally available for transaction, is the fifth major purchases by the Beijing-based SOHO China since it first set foot on Shanghai in August 2009, according to a statement released by the company today.

The plot on Wanhangdu Road and currently owned by Shanghai Jing'an Real Estate (Group) Co, has a potential built-up space of 81,000 square meters for both residential, office and retail properties.

"At the conjuction of Jing'an, Changning and Putuo districts with a daily foot traffic of more than 1.2 million, Caojiadu is destined to grow into the largest commercial hub in northwestern Shanghai in the next few years," said Pan Shiyi, chairman of the Hong Kong-listed developer.

"The acquisition perfectly fits our corporate strategy which has been particularly focusing on the development of upscale commercial properties in prime locations in Beijing and Shanghai."