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Peggy Sito

NEW World Development is co-operating with Shanghai Metro Corp to jointly develop a US$40 million commercial complex above a station on the city's first metro railway.

  The proposed development - one of the first property projects on Shanghai Metro Line Number One - is located at Han Zhoug Road station.

  Two other Hong Kong developers have also boosted their land banks in Shanghai, Sun Hung Kai Properties with a $17 million investment and Wharf (Holdings) with a $40 million investment.

  Sun Hung Kai is planning to develop a 39,000 square metre commercial building at Yan An Road in central Shanghai.

  The proposed commercial complex will provide a total gross floor area of 54,000 sq metres.

  Sun Hung Kai will have a 94 per cent interest in the project with the balance to be held by the Luwan district government.

  Wharf (Holdings) is engaged in discussions with the city's Communication University on jointly developing a commercial project at a former university site in the Xuhui district.

  The site will cover 6,000 sq metres and have a plot ratio of about five times.

  Shi Li An, general manager of Shanghai Metro Corp, which is directly controlled by the Shanghai municipal government, said a number of property developments would be built above or under stations on the first metro railway with the participation of foreign investors.

   ''Property developments planned along the route were limited because we did not notice the potential value of the plots of land located along the line when we decided to develop the metro railway in 1986,'' said Mr Shi.

  The concept of a market economy was not well developed in China in the 1980s, he said.

  The proposed commercial development above the metro will include a retail office complex of 40,000 sq metres in gross floor area.

  It is being developed by Shanghai Metro Sunlink Real Estate, a 50-50 joint venture owned by Shanghai Metro Corp, and New World Development subsidiary Sunlink Co.

  At least three more potential developments with a total gross floor area of 110,000 sq metres will be offered. Foreign firms will be invited to participate.

  The 16.1-kilometre Shanghai Metro Line Number One is one of seven rail routes scheduled for construction in the city.

  The government of Shanghai is expected to invite foreign companies to develop sizeable property projects at three more stations similar to the project by New World Development at Han Zhoug Road station.

  Mr Shi said New World Development would provide the capital investment for the entire project while Shanghai Metro Corp would provide the site.

  Investment in the project will total $40 million.

  New World has injected paid-up capital of $10 million, with the balance expected to be arranged by credit facilities.

  The project also includes a 20-storey office building with a total developable area of 20,000 sq metres.

  A planned project at Xin Zha Road station, next to Han Zhoug Road station, had attracted interest from various Hong Kong companies, said Mr Shi.

  One of the biggest potential developments is at Huang Dinan Road station in the Luisan district in the city centre.

  Mr Shi said the development, to be called Jiu Hai Plaza, was being constructed by mainland investors but would be extended for foreign participation because of limited investment capital.

  The project, with a developable area of over 60,000 sq metres, will be used for a commercial, residential and retail complex with an estimated value of between 600 million yuan (about HK$538 million) and 700 million yuan.

  Mr Shi said Shanghai Metro Corp had plans to build a permanent station at Jin Jiang Park to replace a temporary building.

  Under the proposal, a commercial complex of 30,000 sq metres will be built at the site.

  There are three other small property developments with a total gross floor area of 32,000 sq metres to be constructed when the route is completed.

  The construction of Shanghai Metro Line Number One started on January 19, 1990. The 6.6 km southern section with five stations has been completed and is undergoing trials.

  The entire Metro Line Number One project is scheduled for completion by the end of this year. It should open before May next year.



New World helping to build complex on Shanghai metro