New retail and entertainment complex in Shanghai will provide a cheaper alternative to trendy Xintiandi Shui On Group's Xintiandi quarter in Shanghai will face a fresh challenge from a new shopping centre integrating traditional and modern elements in the next few months. Dragon Gate Mall, owned and operated by US-based KaiLong Rei Project Investment, is located at the southern entrance of the famous Yu Garden retail area - one of the most popular tourist and retail attractions in Shanghai. When Dragon Gate opens in August, it will be a mall comprising the characteristics of Chinese history with small shops selling specialty products such as handicrafts and folk art, according to Cheng Hei-ming, a director and chief executive of KaiLong. There will also be an entertainment area with food courts, restaurants and bars. Covering a site area of 10,000 square metres, the mall will provide 36,080 square metres, including two basements and three floors of spaces above ground. The mall will provide more than 200 shops and 60 units for fast food, restaurants and bars. It also provides 180 car parking spaces. Dragon Gate will consist of five detached buildings plus a 3,000 square metre public square. Its design will match the famous willow pattern design on porcelain plates in the Yu Garden area. Mr Cheng said Xintiandi was popular for fine dining but not everyone spent much money in the area as prices were high. Xintiandi targets mainly overseas visitors. 'Our positioning is a bit cheaper than them in terms of pricing for dining,' said Mr Cheng, who was involved in the development of Xintiandi before joining KaiLong. Xintiandi, developed by Vincent Lo Hong-sui's Shui On, is a trendy entertainment and retail area in Luwan district. The old Shanghai-style redevelopment comprises major brand shops, restaurants, cafes and bars. 'Yu Garden, with a history of more than 400 years, has attracted many tourists with its souvenir and specialty shops. But it fails to keep traffic flow at night time because of a lack of nightlife,' said Mr Cheng. According to Mr Cheng, traffic flow in Yu Garden averaged 7,888 people per hour between 11am and noon - the day's peak but the number fell to 1,336 between 8pm and 9pm. On National Day, the busiest traffic was seen between 11am and 2pm with more than 20,500 people per hour. 'Our mall will use a mixture of retail shops and food and beverage areas to lure tourists and customers to shop and spend,' Mr Cheng said. Mr Cheng said the company was scouring the mainland to look for special and suitable tenants that can reflect Chinese culture. The company will conduct a roadshow to look for foreign food and beverage operators to establish a presence in the mall. Mr Cheng said small mainland companies could also afford high rents if they got business. For example, a teahouse or coffee shop in Yu Garden pays as much as US$10 per square metre a day. To enhance its attractiveness, KaiLong plans to arrange on-going traditional performances, concerts and plays in the area. KaiLong shareholders include US-based Citigroup Financial Products, Cargill Financial Services International, Starwood Capital China Management and Secured Capital Japan. Mr Cheng said some funds invested purely in properties and traded them for profit. But KaiLong also focuses on operating the properties, reflecting its long-term confidence in the market. However, he refused to identify the company's existing assets in China.
