The developer says the site he earmarked for development back in 2002 was in a decaying and neglected neighbourhood. But a rapid transformation of the complex and the surrounds has made The Bridge 8 a hub for the city's creative community and is being hailed as an indication of how Shanghai can convert obsolete manufacturing sites into downtown commercial property while still preserving the historic architecture.

It is estimated more than 100,000 officials, business people, artists and designers have visited the complex in the past two years and its importance as a venue was highlighted two weeks ago when Shanghai Communist Party secretary Xi Jinping visited the office complex for a second time. Early last month, a group of cultural critics, writers and officials from Hong Kong, Taiwan and Shenzhen spent an afternoon there, hearing about Shanghai's experience in promoting the booming creative industry.

Remy Chan Lap-man, regional director of Jones Lang LaSalle, said the project solved a problem for the district government and opened up new possibilities for the city's ageing factories and warehouses.

'Because of pollution and land use, the local government wanted to move the factory to the city's outskirts. The development provides a solution on how to deal with the old buildings,' he said. 'As Shanghai is getting bigger, what used to be the city's edge becomes downtown. There are many old factory buildings. With creativity, the company created a low-cost alternative.'

The 15,000-square-metre site has met with huge demand from prospective clients.

Before setting up his own real estate company, Mr Wong worked for two Hong Kong developers in Shanghai, at one point being responsible for the design, planning, leasing, promotion and management of Shanghai's landmark district, Xintiandi, before setting up his company Lifestyle Centre.

'Now everyone said Xintiandi is ideally located, but when we first got the Luwan land, it was a pretty bad location,' he said. 'It wasn't along the main shopping axis and after Xintiandi, I realised achieving pure commercial success is difficult. But if we use history and culture to make the project unique, allowing the development to tell a story of its own, people like it.

'Copying Xintiandi's style will not make it a commercial success. But we thought we could repeat the system that made it a success.'

Mr Wong also wanted to build a platform for people like him, with little capital but creative instincts, to be able to have their own business.

His involvement in Xintiandi helped Mr Wong cultivate a relationship with the Shanghai district government, and the idea of making The Bridge 8 a creative industry cluster emerged shortly after he saw the block while hunting for his own office premises.

He signed a 20-year lease for the factory and hired Japanese architects Hirokawa and Kenji, known for their renovation of old buildings, to bring contemporary touches to the obsolete factory site. The idea was to leave the original buildings and structure in place, so that massive brick walls, intricate pipelines and mottled floors mix with the fashionable chic of a modern office space.

International architecture firms SOM, Aedas and B+H set up their Shanghai offices in The Bridge 8 complex after the completion of the project's first phase in December 2004. Other tenants include interior design studios, fashion designers, advertising agencies and an animation production company. One-third of tenants are Hong Kong and Taiwanese companies, another third are western firms, while the remainder are mainland businesses.

Kyran Sze, managing director of Aedas, said the complex's style suited their needs as an architectural design firm. The complex's high ceilings enabled Aedas to set up a gallery; the firm recently tripled its office space in the complex.

'Not all my tenants are big corporations,' Mr Wong said. 'Many of them are pretty small, probably with a handful of staff. The whole concept of designing this development was to create an environment favourable for the small companies, like us when we first started in 2002, to grow.'

The office complex was developed in two phases. Mr Wong began renovations in April 2004, completing the work six months later. By then, 70 per cent of office space was already taken up. Phase two was completed around the middle of this year.

The success of the first phase prompted the Shanghai government to step up efforts to promote creative industry in the city. It identified five sectors to develop as a creative industry: design, architecture, culture and media, creativity consultancy and fashion design. Officials have also identified obsolete warehouses and old manufacturing buildings for new creative industry clusters. The government is considering ways to help the small firms on financing.

The authorities, who named Mr Wong as one of the 10 people who helped shape the growth of Shanghai's creative industry, earmarked 75 abandoned factories and warehouses in the city to be transformed into creative hubs.

'The government reacted quickly after seeing that our concept works. Creative industry does not have much direct economic contribution to a city's development, but it certainly helps on the imaginative side,' Mr Wong said. 'Creativity is particularly timely in China now that it wants to transform itself from the 'made in China' label to a 'create in China' one. I give creative industry a broader definition, every business and industry needs creativity.'

Mr Wong, however, dismissed the idea of having his concepts employed in Hong Kong. 'Only property giants survive in Hong Kong,' he said.

Ada Wong Ying-kay, a Hong Kong art and cultural critic, blamed the lack of diversity in Hong Kong's property developments for the seeming reluctance to use old factory sites. 'In Hong Kong, property sites are very big so only the biggest can bid for the land. If we have more small developers, we will have more creative projects. They will bring in new ideas. The mainland is big so it has diversity, including diversity on property developers.'

Ms Wong said that if Hong Kong wanted to change this situation, the government needed to amend the land and building regulations. 'Otherwise, we will continue to see every development site being maximised to build wall-like towers,' she said.

Mr Chan of Jones Lang LaSalle said: 'The economy in Shanghai is less mature; it means low-cost investment is still possible. So, in turn, it allows arts and creativity. The government here realises creativity is important to society.

'[On the mainland], the government has the power to single-handedly push forward projects, the government of Hong Kong doesn't have this power. The property market in Hong Kong is dominated by a few oligarchies.

'In Shanghai, small developers have spaces to develop and grow as long as they have creative idea, good government relations and support of their board of directors. It shows Shanghai is not an oligarch market, it is in the warrior period.'