Swire Properties, the Hong Kong-based real estate company, hopes to develop a retail project in Qiantan, one Shanghai's hottest areas.

In a statement released on Friday, Swire announced it had entered into a framework agreement with Shanghai Newbund Industrial Development Co Ltd. This is expected to pave the way for a formal agreement.

Shanghai Newbund is a subsidiary of Shanghai Lujiazui Finance & Trade Zone Development Co Ltd, a State-owned enterprise devoted to the real estate development of the Lujiazui Finance & Trade Zone.

The planned retail project, with an expected total gross floor area of approximately 124,000 square meters in Qiantan, Pudong New District of Shanghai, will be connected to a three-line metro station, Swire Properties said. If the joint venture is formed, it is expected that Swire Properties will hold a 50 percent stake in the development.

Qiantan is envisioned as a new international business district of Shanghai as well as an integrated commercial, residential and cultural hub. Qiantan is expected to benefit from Shanghai's rapid urbanization and the increasing demand for commercial space outside the Lujiazui financial district.