Optimism over Shanghai skyscraper
Minoru Mori, the president and chief executive of Japan's biggest private developer, Mori Building, is optimistic about rental prospects for his latest project, Shanghai World Financial Center.
MrMori's confidence comes despite the fact that the project has been pitched to secure the highest rents in the city at a time when the global economy is embroiled in a credit crunch that is slowing demand for office space.
Putting his faith in the sustained growth of the mainland economy against a troubled backdrop for the rest of the world's major markets, Mr Mori said premium office space in Shanghai would remain in demand.
The new building, in the Lujiazui area of Shanghai's financial district, topped out at 492.3 metres or 101 storeys on September 27 last year and officially opened for tenants last week. It is the mainland's tallest building and the third-highest in the world, following Burj Dubai and Taipei 101.
The building is owned by Mori Building, whose other projects include the renowned Roppongi Hills in Tokyo.
The skyscraper has the most expensive office space in Shanghai, charging tenants US$3 per square metre per day.
The occupancy rate stands at just 45 per cent but Mr Miro said he was confident that it would reach 90 per cent within a year. Tenants include Sumitomo Mitsui Banking Corp, Mizuho Banking Corporation, Mizuho Securities, and BNP Paribas.
The skyscraper houses the world's highest observatory. Located from the 94th to the 100th floor, the observatory is expected to receive about 3 million visitors a year.
The Park Hyatt hotel is on the 70th to 93rd floors and standard room rates are 5,000 yuan (HK$5,725) per night with the 'Chairman's suite' costing 88,000 yuan per night.
Office space is provided from the seventh floor to the 77th floor and the remaining space is set aside for conference facilities and retail outlets.
Mr Mori purchased the site in 1994, along with HSBC Tower in Pudong.
He suspended the project in 1998, a year after construction began because of the Asian financial crisis.
The project resumed in 2003.
Morgan Stanley holds a 10 per cent stake in the building and Mr Mori said he would continue to hold the remaining stake in the project.
