Wharf looking at two Putuo developments
By ELAINE CHAN
WHARF (Holdings) has intentions to develop two housing projects in Shanghai's Putuo district, following the footsteps of other Hong Kong property development giants which have stepped up involvement in real estate in China.
According to Putuo's governor, Xu Bozhuang, the group was interested in developing two plots in Putuo - one in Caoyang Road and another in Changshou Road.
The Caoyang Road plot would be for domestic consumption while the Changshou Road plot would be for foreigners.
Mr Xu said the district had signed a letter of intent with Wharf last year but details had yet to be finalised. He did not reveal the reason for the delay.
Hong Kong investors are involved in 11 projects in the district, worth a total of US$250 million.
Mr Xu said agreements had been signed for 36 redevelopment projects, equivalent to one-third of the 4.7 sq km site on Changshou Road.
Of the 36 projects, eight involved Hong Kong investors who would develop housing and factories in the area.
Recent emphasis by the Shanghai municipal government on development of the Pudong area across the Huangpu River would not pose a threat to the district's development.
He said Putuo's development was on a relatively smaller scale, but had an important role to play and included development of vital road links.
Mr Xu said Caoyang Road led to Route 204, which led to Harbin and Shenyang, while Wuning Road led to Route 312, which led to Xinjiang, Qinghai and Henan.
'The roads need to be redeveloped and expanded because they are too narrow,' he said. For instance, Caoyang Road which is 12 metres wide would have to be broadened to 32 metres.
'All the roadworks have to be finished by the end of this century,' he said, estimating that about 10 billion yuan (about HK$9.06 billion) would be spent to improve the roads in Putuo.
Meanwhile, Mr Xu said 18.3 million sq ft of floor area would have to be redeveloped in the district.