U.S.-based developer Tishman Speyer is planning a 3-million-square foot mixed-use development for Shanghai in the area known as the "New Bund."
The project is a joint venture with Shanghai Lujiazui Group and partially financed by a Rmb3 billion ($490 million) investment fund established by the developer. Tishman Speyer primarily focused on Chinese investors, not international sources, to raise money for the fund.
"Nobody understands the Chinese real estate market better than Chinese investors and there are so many misperceptions about China in other countries," Rob Speyer, co-chief executive of Tishman Speyer, told the Financial Times.
Tishman Speyer offered few details on in the new project, except that it will offer "Class A offices, upscale retail offerings and waterfront residential apartments."
The "New Bund" area, also known as Qiantan, is located in Pudong south of the Shanghai Expo site along the Huangpu River. The master plan covers 2.83 square kilometers and developers, led by Shanghai Lujiazu, hope to turn the section into a new financial district.
The project's plan calls for 3.5 million square meters of construction, with 50 percent focused on commercial buildings, 40 percent to high-end residential communities and 10 percent for public facilities.
"The New Bund offers tremendous accessibility to mass transit and great potential for long-term success," Tishman and Speyer said in a statement.