NEW World Development is launching the sale in Hong Kong of offices and serviced apartments at its US$300 million property development Beijing New World Centre. The multi-purpose two million square foot complex, located in Beijing's Chongwen District, is being jointly developed by its joint venture Beijing Chongwen-New World Properties Development Co and China New World Electronics. It consists of a shopping arcade, two Grade A office towers, a block of luxurious serviced apartments and a 350-room hotel. New World director and general manager Stewart Leung Chi-kin said only the office towers and the serviced apartments were for sale while the hotel and the shopping plaza would be held for investment. He expected the sale of the offices and apartments to bring in proceeds of about HK$1.2 billion. 'Many foreign companies are planning to establish offices in Beijing, thereby increasing the demand for Grade A office space and luxurious apartments in the city,' he said. The two office towers provide about 400,000 sq ft, with 324 units measuring 440 to 3,100 sq ft. The nine-storey serviced apartment block has 210 units of 495 to 1,840 sq ft, with a total gross floor area of about 200,000 sq ft. Average prices for offices are HK$1,765 per sq ft while those for apartments are $1,922 per sq ft. Thomas Yau, associate director for the China division of Ricacorp Properties, said the properties were likely to attract investors because end-users would continue favouring completed properties. He said it was difficult to predict the sales response as China's property market remained sluggish. But New World's track record and the competitive pricing should prove attractive to buyers, he said. According to Mr Yau, the prices of existing top-quality offices in Beijing exceed $2,100 per sq ft, due to strong demand, while unfinished properties achieve lower prices. The selling prices of the office units at Beijing New World Centre were in line with market levels, he said. He said there was a large supply of office space due to come on line in Beijing over the next two years but demand would be strong enough to absorb the new premises eventually. Mr Yau said there were no comparison figures for the selling prices of serviced apartments because most apartments in Beijing were available for lease only. There was strong demand for serviced apartments of various sizes because of the large number of foreign businessmen or employees working in the capital city, he said. Good quality offices and apartments in Beijing now commanded an investment yield of more than 20 per cent although that might ease in future with new supply coming on the market, he added. Built on a 210,253 sq ft site, next to the Chongwenmen underground railway station, Beijing New World Centre is expected to be completed at the end of 1996. The developers will offer buyers special five-year instalment payment plans. Serviced apartment buyers will receive complimentary furniture, lighting fittings and electrical appliances. New World's subsidiary Kiu Lok Property Services (China) will manage and maintain the project. FACT FILE DEVELOPMENT: Beijing New World Centre, Chongwenmen Wai Street, Beijing. DEVELOPERS: Beijing Chongwen-New World Properties Development Co and China New World Electronics. OFFICE SPACE: 324 units, measuring 440 to 3,100 square foot. SERVICED APARTMENTS: 210 units, measuring 495 to 1,840 sq ft. AVERAGE PRICE: $1,765 per sq ft for offices; $1,922 per sq ft for serviced apartments. TOTAL FLOOR AREA ON SALE: About 600,000 sq ft COMPLETION DATE: End of 1996. FACILITIES: Offices equipped with optic fibre systems and serviced by 12 lifts in two towers; serviced apartments have hotel-style services and residents' clubhouse, with basement shopping plaza and car parking spaces. PAYMENT SCHEME: The developers offer buyers special five-year instalment payment plans.