The newsletter provides updates on commercial real estate in Shanghai, including new developments in the Greater Hongqiao area which is being transformed into an economic hub. It also lists upcoming events and recommends the Husk Restaurant. Private jet charters in China typically cost $10,000 per flight hour and require booking several days or weeks in advance, while electric scooters are becoming a popular transportation option.

1. December NEWSLETTER
Table of Contents
Market Insight – Da Hongqiao Rising
The Scene
Property Snapshots – Sky Soho, CD Center, BenQ,
Raffles Changning, 3 Corporate Ave,
Chamtime Plaza
Events Calendar – New Year’s Concerts, Biennale
Restaurant Suggestion — Husk
Getting Around (1) — Private Jet Chater
Getting Around (2) — Electric Scooters
Giving Back — Sofia Group Sponsors Gift Bags
for Children in Rural China
Market Data & Notes
Helping you to find and design the office you want.
Call us at 021-6230 1919
The Rise of Greater Hongqiao
As our newsletter reader, you likely know that Hongqiao is an area in
western Shanghai, and probably associate the name with the Gubei
residential area and Loushanguan Road where many businesses and
consulates have offices. If you’ve been paying attention to the local news,
you may also have heard of Greater Hongqiao (in Chinese, Da Hongqiao),
the area at the center of the Shanghai government's plan to transform
western Shanghai into a booming economic growth engine analogous to
Pudong in the east. The Greater Hongqiao development plan obviously
means big things for the city’s commercial property market, and so
merits some examination.
What and where is it?
As a geographic area, Greater Hongqiao, as we understand it, is currently
being interpreted in two ways.
First, as detailed on China's Wikipedia Baidu Baike, Greater Hongqiao
refers to a distinct 86-square-kilometre (sqkm) area in the west of the
city that begins a little east of Hongqiao Airport and extends westward
about 10 kilometers, stretching north-south about 10 kilometers as well.
The area includes the Hongqiao Transportation Hub, with its bullet trains
and buses connecting Shanghai to the rest of the Yangtze River Delta. In
terms of districts, the area encompasses parts of Changning, Minhang,
Qingpu and Jiading.
Second, “Greater Hongqiao” is sometimes used more loosely to refer
to all the western parts of the city that will be economically and
functionally integrated with the above area. Hence, many local Chinese
media reports have described Greater Hongqiao as encompassing the
whole of Changning district, which includes Zhongshan Park and other
areas within the inner ring road.
Having two interpretations of Greater Hongqiao's borders is not as
illogical as it might seem, because unlike the districts that it is comprised
of, Greater Hongqiao itself is not an administrative division of the city.
It is rather an area delimited based on its intended economic and urban
functions. And since these functions overlap and complement the
functions of adjacent areas, just exactly where the borders lie on the
functional level may not be so distinct, or for that matter important.
The development plan for the official 86-sqkm area has two main parts:
•the Hongqiao Commercial Zone ( 虹桥商务区), a 26-sqkm area with
surrounding green belt that encompasses the Hongqiao Transportation
Hub (Hongqiao Airport, Hongqiao Railway Station and Hongqiao
Long-Distance Bus Center) and that the city intends to make a center
for modern service industries, international trade and corporate
headquarters.
www.sofiagroup.com

2. The Scene
•the Commercial Functional Expansion Zone (商务功能拓展区),
a 60 sqkm area that extends north and west from the Commercial Zone that will attract largely the same kind of industries as the inner area, but with greater concentration of hotels, cultural facilities and convention centers.
Why it's important
The emergence of Greater Hongqiao is good news for city tenants because it has been driving development of new high quality office towers in the western part of the city. These high quality office towers, of course, are renting at far lower prices than they would if located more centrally, and so offer companies a low-cost alternative to downtown Puxi locations. Moreover, as Greater Hongqiao attracts companies from the central downtown locations, it helps deflate upward pressure on rents in those latter congested areas.
As the above chart shows, average rents in Changning district have long stayed well below the averages for downtown Puxi and Lujiazui. The new office buildings going up in Greater Hongqiao, being located in the far west of Changning or beyond, are renting even lower than the Changning averages shown in the chart.
Consider, for example, two of the key commercial properties that have been completed in Greater Hongqiao so far:
•The Hub, by developer Shui On Land, is a lifestyle complex with office component adjacent to Hongqiao Airport. Its office space was recently renting for RMB 5.6~5.8 / sqm / day. Roche Pharmaceuticals is among the companies that have already moved in.
•Sky Soho, the mixed-use development designed by celebrity Zaha Hadid’s studio, is located one subway stop from the airport and was recently leasing space for only RMB 4.3 ~ 4.5 / sqm / day. Ctrip has already bought a large amount of space in the development.
Trivia
Countless names for areas and properties in the west of our city contain the word "Hongqiao", from Hongqiao Road to Hongqiao International Airport to the Holiday Inn Hongqiao Minhang. Just where does the word come from, and what area did it first refer to?
You may never even have heard of Hongqiao Town (虹桥镇), a part of Minhang District around Hongmei Road. It hardly resembles a town, as it has no defining concentration of homes or buildings, as far as we know. According to Baidu Baike (China's Wikipedia), Hongqiao Town has a history that goes back to the end of the Qing Dynasty, and back then, the Puhuitang Canal ran across the town in east-west direction, just as it does today. At some point people noticed that if you stand on a bridge over the Puhuitang after a summer rain, a rainbow often appears in the west. And so the town was named Hongqiao, which is Chinese for "Rainbow Bridge".
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Q1
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RMB
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Office
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Nanjing
Road Changning
Lujiazui
West
Nanjing
Road
Average Office Rents Changning vs Lujiazui
vs West Nanjing Road

3. BenQ Building
Completed in July 2012, this property
is invested and owned by the
Taiwanese electronics manufacturer
BenQ Group and its construction
received an LEED-CS rating (CS
standing for core and shell). High
ceilings are one of its attractions.
Building quality: Grade B+
Address: 207 Songhong Road
Ceiling height: 3.1 meters
Recommended Floor/Area:
2,000 sqm
Rental/sq.m/day: CNY 5.0-5.5
Total Floors: 31
Metro: 10 min walk to line 2,
Songhong Road Station
Location: Changning
Availability: Spaces currently
available
SKY Soho
BenQ Building
DC Center
Contact Sofia Group at 021-6230 1919 for further information on the three office building properties
listed above, or for information on any other commercial property in the city.
Property Snapshots
Building quality: Grade A
Address: 968 Jinzhong Road
Ceiling height: 1F 4.7 meter,
2F-10F 3.5 meters
Recommended Floor/Area:
1,700 sqm - 2,200 sqm
Rental/sq.m/day: CNY 4.2-4.6
Total Floors: 11
Metro: 12 min walk to Songhong
Road Station, line 2
Location: Changning
Availability: Spaces currently
available
SKY Soho
This unique mixed-use development
designed by famous architect Zaha Hadid's
studio officially opened just last month. Ctrip
has purchased 100,167 sqm of its office
space, leaving developer SOHO with 128,130
sqm of office space and 25,166 of retail space
to lease out. Beautiful design, close proximity
to Hongqiao Transportation Hub and a high-tech
air filtering system are among its sales
points; on the negative side, it is a good 12
minutes walk from the subway, far from
downtown, and new tenants may need to
deal with inconveniences that are sometimes
encountered in brand new properties.
DC Center
Completed in Q3 2013, this
development is named after one of
its major tenants, Digital China, a HK-listed
company that used to be part
of Lenovo, and which presumably
invested in the building. The tenant
mix is chiefly local companies.
Restaurants and retail outlets are
located on the first two floors, and
there is also a basement canteen.
Building quality: Grade B+
Address: 567 Tianshan West Road
Ceiling height: 2.8 meters
Recommended Floor/Area:
3,500 sqm
Rental/sq.m/day: CNY 4.5-5.0
Total Floors: 9
Metro: min walk to line 2,
Songhong Road Station
Location: Changning
Availability: Spaces currently
available

4. Chamtime Plaza
This mixed-use property developed by
Shanghai-based CJ Land boasts the largest
open shopping mall in the city and includes
a huge IMAX theatre that seats 1,820. Its
twelve-story office towers are located on
the periphery of the huge mall. Located
a rather distant seven stops from Lujiazui
Station along subway line 2, the property
may be most attractive to companies with
existing facilities or plans to open office in
the Zhangjiang Hi-Tech Park area.
Building quality: Grade B+
Address: 518 Halei Road
Ceiling height: 2.8 meters
Recommended Floor/Area:
1,563-2,052 sqm
Rental/sq.m/day: CNY 5.0 - 5.5
Total Floors: 12
Metro: Direct access to Jinke Road
Station, line 2
Location: Pudong
Availability: Spaces currently
available
Chamtime Plaza
3 Corporate Ave
Raffles City Changning
Contact Sofia Group at 021-6230 1919 for further information on the three office building properties
listed above, or for information on any other commercial property in the city.
Property Snapshots
Building quality: Grade A
Address: 1139 Changning Road
Ceiling height: 2.7 meters
Recommended Floor/Area:
1749 sqm
Rental/sq.m/day: CNY 7.0-7.5
Total Floors: TBC
Metro: 3 min walk to lines 2, 3, and
4 at Zhongshan Park Station
Location: Changning
Availability: Spaces soon available
Raffles City Changning
Singaporean developer CapitaLand's
2nd Raffles City project in
Shanghai following the one beside
People's Square, this new mixed-use
development will add much-needed
retail and office space to
the congested Zhongshan Park
neighborhood with its opening,
which is now scheduled for 2016.
3 Corporate Ave
One of the two buildings that are
part of Corporate Avenue Phase II,
3 Corporate Avenue is scheduled
to open in May next year. With a
coveted location by Xintiandi and the
Taipingqiao Lake, and facilities of the
highest quality designed to LEED Gold
standards, spaces within the office
tower will surely be in high demand.
Building quality: Grade A+
Address: Hubin Road
Ceiling height: 2.85 meters
Recommended Floor/Area:
2,500 sqm
Rental/sq.m/day: CNY 11.0-12.0
Total Floors: 31
Metro: 7 min walk to line 1 at
Huangpi Road Station
Location: Huangpu
Availability: Spaces soon available

5. Events Calendar – New Years Concerts and Biennale
The 10th edition of the Shanghai Biennale has launched and runs through March 31 at the Power Station of Art. The overarching theme of the event is “Social Factory: what characterizes the production of the social and society, and how does it relate to fictions and history?” Many of the works make reference to 1978, the year of China's opening-up. Visit http://powerstationofart.org for more info.
At the Shanghai Oriental Art Center, the Budapest Symphony Orchestra with conductor András Keller plays a New Year's concert of Strauss and Dvorak on January 3. The Russian Philharmonic Orchestra and conductor Sukachev Igor offer a varied program of classical works and Chinese, Italian and Russian songs on January 9th. Tickets are RMB 80 to RMB 1,080. Call 4006-466-406 to order.
The Spanish Flamenco Dance Theatre performs Carmen on January 5th & 6th at the Shanghai Art Theatre, 466 Jiangning Road. Tickets are RMB 180 – 880, and can be ordered by calling 6217 2426 or 6217 3055.
COSMOS is the name of the opening exhibition for the Shanghai 21st Century Minsheng Art Museum (“M21”), which occupies the former French Pavilion in World Expo Park. Hundreds of works by 52 artists and five art groups from 12 countries are on display. Ongoing through April 19th.
Restaurant Suggestion –
Husk Restaurant & Martini Lounge
An elegant atmosphere, warm and smart service, and exquisitely delicious food are a few reasons to choose this newly opened restaurant. It also has a long and alluring list of martinis and cocktails.
The starters and snacks are substantial enough to serve as a meal for one, and we recommend the seared ocean scallops with baked cauliflower and pomelo cress salad: its unique mix of flavours and perfect juiciness made it the culinary highlight of our evening. Carpaccio of beef with roasted garlic & goat cheese gratin, grilled homemade focaccia is likewise exceptional.
We went vegetarian for our two mains – tofu and seasonal vegetables in oyster sauce, and rigatoni with fresh tomato, olives, asparagus, spinach, basil and tomato sauce – both were deliciously satisfying. Our dessert of fig and burnt butter was another new and pleasant experience for our taste buds.
Our meal for two, with two glasses of wine, came to around RMB 650.
HUSK
218 Fengxian Lu, by Nanhui Lu
Reservations: 21 6245-9137
www.husk-sh.com

6. Getting Around (1) — Private Jet Charter
Getting Around (2) – Electric Scooters
Just how easy is it to charter a private jet in Shanghai, and how much does it cost? We thought some of you might like to know, and so made some calls.
According to Anthony Lam, a licensed pilot and editor of JET Asia Pacific magazine, the largest jet charter operator in China is Deer Jet, which was the earliest company to launch a charter service in the country in 1994. Anthony named Asia Jet and TAG Aviation as two other leading charter operators in the region.
People seeking to charter a jet out of Shanghai will generally only find problems with availability during the peak season around Christmas and Chinese New Year, Asia Jet sales director Yan Feng told us. She recommends booking two or three months in advance to fly during that period. Otherwise, jets are generally available, but to ensure enough time to obtain flight permits, which takes longer in China than in the US or Europe, the aircraft should be booked at least 3 days in advance for domestic flights, or 5 to 7 days in advance for international flights.
Chartering your jet will cost roughly USD $10,000 per flight-hour including all expenses, Yan said. A Shanghai-Beijing round-trip therefore totals around USD $40,000. The Asia Jet fleet includes several Gulfstream models, such as the G200, which seats 8 to 10, as well as a Bombardier Challenger 605, which seats up to 12.
Asia Jet also has a Jet Card program for customers who fly frequently. Card holders need to make an advance down payment of either USD $250,000 or USD $500,000, and enjoy corresponding privileges including discounted prices.
We also asked Yan whether fractional ownership, where two or more people share the costs of owning and operating a jet, is possible in China. She said she believes Chinese cultural preferences and the way that businesses are structured in the country will make it difficult for the fractional concept to make inroads here. She noted, however, that the world leader in fractional ownership, NetJets, has recently set up business in Zhuhai. Deer Jet also has a page on its website offering help with fractional ownership arrangements, but in a recent news report a company spokesman suggested the idea has yet to catch on.
Wondering what to buy friends or family members for Christmas? Perhaps an electric scooter is just what they need. The newest fad among young workers in Shanghai now, they're environmental, they let you whip through rush hour traffic, and you certainly don't need to pay for parking them. A few options follow.
IPS
Website: http://en.iamips.com/
Local store address: Unit 102, Yao Jiang International Plaza, No.308 Wusong Road, Hongkou District
The model T260 can reach 20 km/hr and take you about 30 km after charging the battery for two-hours. It sells for RMB 2,999.
Ninebot
Website: www.ninebot.com
Local store addresses:1st Floor, Shanghai Stadium, No.666 Tianyaoqiao Road, Xuhui District;
No.16, Lane 203, Huaqiang Street, Huaxi Town, Qingpu District
Ninebot E
The Ninebot E can reach 20 km/hr and carry you 30 km after a four-hour charge. It costs RMB 14,900.
Segway
Website: www.segway.com, also available on Jingdong or other online shopping sites.
The Segway was the first self-balancing two-wheeler, and more than 1,500 police and public safety organizations across the globe have deployed Segway Patrollers. The Segway i2, City Version, can reach 20 km/hr and take a person about 38 km after charging for 8-10 hours. It's cost: RMB 90,000

7. Last month (November) Sofia Group together with Aboro
Academy supported "One Heart Gift Bag", a project of
the non-profit organization CRC (Community Roots China)
that sends gift bags to disadvantaged children in rural
China. Sofia Group sponsored 20 gift bags that were sent
to orphaned children in Guangxi Province. Three of our
team members also devoted time and effort to help pack
the bags on November 29th.
Giving Back – Sofia Group Sponsors Gift Bags
for Children in Rural China
Market Data & Notes
Rents in the Cura Tower on
Hongqiao Road, Xujiahui district,
have inched up to around RMB
7.5-8.5 / sqm / day. This and
other observations make us
suspect Xujiahui rents in general
are going up a bit.
About 300 sqm of space opened
up in Lujiazui recently, but of
course that amount won't do
much to bring down rents there.
As noted in above Snapshot
section, offices in Chamtime
Plaza are renting at 5.0 - 5.5 /
sqm /day. That is actually high for
the Zhangjiang area of Pudong,
where the average rent is more
like RMB 4.5-5 / sqm / day
Office Building Rental Rates by CBD Area: CNY / sqm / day
Shanghai Office Occupancy in Percentage

8. Our consultants will be delighted to personally assist you at any time. You may call our main Shanghai office number,
(86 21) 6230 1919, or contact directly a consultant who handles your specific concern:
Sofia Group
Your Shanghai office, industrial and retail property specialists
Amanda Zhu
Office rental, Factory rental,
Property valuation
languages: English, Mandarin
+86 21 6230 1919 x 806
amanda@sofiagroup.com
June Zhang
Factory rental, Property valuation,
Design & fit-out
languages: English, Mandarin
+86 21 6230 1919 x 802
june@sofiagroup.com
Pascale Dahan
Office rental, Retail rental,
Property valuation
languages: French, English, Mandarin
+86 21 6230 1919 x 807
pascale@sofiagroup.com
Jet Guo
Office rental, Property valuation
languages: English, Mandarin
+86 21 6230 1919 x 805
jet@sofiagroup.com
Hans Hou
Office rental, Retail rental
languages: English, Mandarin
+86 21 6230 1919
hans@sofiagroup.com
Bjarne Bauer
Office rental, Factory rental, Property
valuation, Design & fit-out
languages: German, English, Mandarin
+86 21 6230 1919 x 808
bjarne@sofiagroup.com
Vincent Liu
Office rental, Factory rental
languages: English, Mandarin
+86 21 6230 1919
vincent@sofiagroup.com
Jenny Jiang
Office rental, Retail rental,
Property valuation
languages: Spanish, English, Mandarin
+86 21 6230 1919 x 803
jenny@sofiagroup.com
Jean Gao
Office rental, Landlord contact,
Factory rental
languages: English, Mandarin
+86 21 6230 1919 x 800
jean@sofiagroup.com