Fancy View cuts rents in Dalian
By ELAINE CHAN
DALIAN Pearl River International Building is one of just a few office developments available for lease in Dalian.
Even so, its joint venture developers, Hong Kong's Fancy View Investment and Shenzhen Pearl River Industry, are offering below-market rates to attract tenants.
'We lowered the rents so that we can lease out all units as fast as possible,' a representative of the developers, Roy Chen, said.
The 28-storey building, with a total gross floor area of 387,504 square feet, will be leased at between 11 US cents to 14 cents per sq ft.
Karen Wong, of Colliers Jardine, the sole leasing agent, said it was better to have the building up for lease than for sale, because of Beijing's continued credit tightening policy.
She said a number of foreign companies had already expressed interest.
Two-to three-year leases will be available.
According to domestic developers, an estimated 5.3 million square feet of office space will come on stream in Dalian within two years.
This year a total of 815,459 sq ft of office space will become available, and another 1.7 million sq ft in 1996.
The present tight supply has forced foreign companies to look for alternative office space in five-star and four-star hotels.
As a result, developers said, rates in certain hotels had increased and now averaged about US$18 per sq ft per day.
Floor space for lease in hotels totals about one million sq ft.
The cost for the Dalian Pearl River building, which will be ready for occupation at the end of the year, is HK$200 million.
The building's two basement levels will be reserved for car parking and will be able to accommodate 110 vehicles. The first five floors, containing 53,467 sq ft, will be leased to retailers.
These floors will house business service facilities, such as a multi-functional convention centre, a bank, restaurant and health facilities.
The sixth to 28th floors, totalling 290,628 sq ft of gross floor area, will be reserved for office space.
Central air conditioning, IDD telephone facilities, smoke detection alarm and sprinkler systems, and satellite television reception will be available.
There will also be round-the-clock closed circuit television security monitoring.
The building is at the intersection of Huanghe Road and Xinkai Road, and is near municipal government offices.
FACT FILE: DEVELOPMENT: Dalian Pearl River International Building, the development is a 28-storey office and commercial project. International Building is sited at the junction of Huanghe Road and Xinhai Road in Dalian, Liaoning province DEVELOPER: Shenzhen Pearl River Industry and Fancy View Investment NUMBER OF FLOORS FOR RETAIL: first to fifth floors with total gross floor area of 53,467 sq ft NUMBER OF FLOORS FOR OFFICE: sixth to 28th floors with total gross floor area of 290,628 sq ft AVERAGE RENTS: 11 US cents to 14 cents per square foot TOTAL AREA OF DEVELOPMENT: 387,504 sq ft COMPLETION DATE: ready for occupation at the end of the year SOLE SALES AGENT: Colliers Jardine FACILITIES: health club facilities, IDD phone lines, 24-hour security, restaurants and business service facilities MANAGEMENT FEE: 27 US cents to 29 cents per sq ft