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HK’s Cheung Kong promotes major mainland project

By WANG YING | chinadaily.com.cn | Updated: 2013-03-22 22:00

Hong Kong-based Cheung Kong (Holdings) Ltd on Friday unveiled a development plan for its largest commercial complex to date on the Chinese mainland.

The project — known as Upper West Shanghai — will be located in the future business center of the city’s Putuo district, and is expected to be a main driver for the development of local businesses and retail firms, analysts said.

The huge commercial complex, potentially a Shanghai landmark, will have a total gross floor area of 1.17 million square meters, and will comprise multiple property types including Grade A offices, shops, serviced apartments, hotels, and residential areas.

The Zhenru area of Putuo district used to be the city’s wholesale market for seafood and fruit, with a cargo railway station nearby.

“In order to develop this area into Shanghai’s next sub-center, like the Xujiahui of Xuhui districts, we need a heavyweight developer to drive the quality up,” said Lu Qilin, research director at Shanghai Deovolente Realty Co, a Shanghai-based real estate agency.

Hong Kong-listed Cheung Kong, chaired by tycoon Li Ka-shing, will take a leading role in upgrading Zhenru into a sub-center.

By putting various property types together, the complex will be able to attract people both at working and leisure times, said analysts. Traditional office areas have difficulties in attracting customers at night or weekends as people go home after work, but with the retail facilities, the complex will have a more diversified customer base.

Developing commercial complexes is a trend among Chinese developers. China Vanke Co Ltd, the nation’s largest property developer by market value, owns about 6 million sq m of commercial projects in 52 cities. Among them, 18 are shopping malls, Xinhuanet.com reported.

The rising consumption power of Chinese people backs such lofty projects. In 2012, the total value of retail sales and per capita consumption expenditure of urban households rose 14.3 percent and 10 percent on a year-on-year basis, respectively, according to a report jointly compiled by Knight Frank and Holdways.

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