Government-linked Guangzhou Pearl River Enterprise Holdings Corp says it has sold all of the office space on offer at its newest development, despite the slump in Guangzhou's office market. General manager Dong Mingxun said more than 100,000 square feet of office space in Peace World Plaza was sold at an average price of $2,900 per square foot. The highest price was $3,500 per sq ft - among the most expensive rates in the city, he said. Of the total 322,920 sq ft of office space, 60 per cent was retained for investment and the rest sold. Guangzhou's office sector has been plagued by a glut resulting from over-building before China's credit squeeze was imposed. Official figures showed an 8 per cent decline to four million sq ft of office floor area approved for pre-sale in the first half of the year, compared with 4.4 million sq ft in the same period in 1995. Peace World Plaza's 88,383 sq ft shopping mall will be available for lease. Although leasing agent Jones Lang Wootton would not reveal the lease price, Mr Dong said it was expected to be US$2.79 per square foot a month. Total income revenue from the four-storey mall would be about US$246,588 per month, if fully occupied. The development is in Guangzhou's Huanshi Road area. In line with China's housing policies, Pearl River Enterprise will focus on low-cost housing and flats for the Guangzhou market. Previous property and construction projects undertaken by the company included the White Swan and Garden Hotels and the World Trade Centre. Mr Dong said the company was considering a listing in Hong Kong.
