Listed property giant DBS Land says it has become Singapore's largest investor in Shanghai since it took a majority stake in a US$380 million commercial centre. The group, leading a Singapore consortium, Hua Qing Holdings, is developing Raffles Square, a 46-storey commercial centre, on a 15,200 sq m site at Xizhang Zhong Road and Fuzhou Road. It has a 50 per cent stake in the project, with the rest owned by three other Singapore companies. The centre will include a retail podium, scheduled for opening in mid-1999, and an office tower due for completion a year later. The project, Singapore's largest in Shanghai, had its ground-breaking ceremony yesterday, witnessed by Singapore Senior Minister Lee Kuan Yew. DBS Land is involved in five projects worth $600 million to $700 million in Shanghai. The others are three condominium complexes in Xuhui and Luwan districts, and a low-cost housing project in Sanlin, Pudong. DBS Land senior China manager Khoo Wee Meng said: 'In terms of size of investment in the projects, we are probably Singapore's largest investor in Shanghai.' Despite projections of over-supply in office space in Shanghai in the coming years, he is confident Raffles Square is a good investment. 'We are here for the long term, not for speculation, so I do not think we will be particularly affected by the over-supply,' he said. Office rents have fallen by about 15 per cent from late last year and are still dropping because of the glut. The group is negotiating for several other projects, but Mr Khoo declined to give details. He was confident Shanghai would overtake Beijing as the group's biggest investment location as the city became a financial and economic hub. DBS Land is taking 60 per cent of a commercial complex in Beijing, expected to cost between $800 million and $900 million. The remaining 40 per cent is owned by Chinese partners. 'We have to have a focus in China and Shanghai will be that focus,' he said.