Only half of the floor space in New World Development Co's World Finance Tower in Lujiazui's central financial centre in Pudong will be available for sale. Antony Chiu, deputy general manager of New World's joint-venture company in Shanghai, Shanghai New World Construction Development Co, said the remaining floor space would be used by a mainland bank as its headquarters. The bank will occupy the first 20 floors of the 43-storey office tower. Shanghai New World is a joint venture with the Construction Bank of China, which holds a 55 per cent stake. Mr Chiu said the building would be ready for occupation next June and sales would start when the development neared completion. Although the sale price has not been fixed, it was believed it would be not less than US$213.67 per square foot. Investment for the project totals US$100 million and when completed the building will have a floor area of 731,952 sq ft, excluding three basement levels. Shanghai New World was reported to have paid US$12 million for a 50-year lease on the 86,100 sq ft site in 1992. The New World Finance Tower is next door to the 88-storey Jinmao Building and the 95-storey Shanghai World Financial Centre. The Lujiazui finance and trade zone of Pudong is being strongly promoted by the Shanghai municipal government as the future centre of tertiary industry, focusing on finance, trade and commerce. The zone is plagued by an oversupply of office space and has a vacancy rate of 80 per cent. An estimated 16 million sq ft of prime office space is due to come on stream in the next three years. Pudong officials believe things will liven up later this year when the Shanghai Cereals and Oils Exchange moves to the area, followed next year by the Shanghai Stock Exchange and Shanghai Navigation Services Trading Centre. Several banks and financial institutions have relocated to the area in recent months. New World is believed to have invested more than HK$13 billion in mainland projects.
