Shanghai is the central city of the Yangtze River Delta, which strategically positions itself as the economic centre with the highest consolidated strengths of China. As of July 2008, the number of regional headquarters of multinational corporations in Shanghai has exceeded 200, making Shanghai one of the cities in China with the greatest number of multinational corporations’ regional headquarters. The Shanghai 2010 World Expo is expected to attract more foreign visitors and investors to the city.

There is one major property project under development with total GFA of 682,659 sq.m..

There are five completed investment properties with total GFA of 253,152 sq.m..

Shortage of office space in Shanghai Puxi has consistently pushed up rental rates in the area, Grade A office buildings rental on Huaihai Road Central has risen a record 30% during the reporting period. Our Group’s flagship investment property, Shanghai Hong Kong New World Tower, has also benefited from the rise in rental rates in the area through adjustment of rental rates upon renewal of lease agreement and enjoyed a considerable growth in rental income.

To meet the market-segmented, diversified demand for hotel services, the Group introduced to Mainland China the pentahotels brand from Europe through New World Hotel Management Limited. Penta represents a combination of superior services and modern facilities, providing travellers with simple and harmonious accommodation. The first Pentahotel opened alongside our Group’s New World Mayfair Hotel Shanghai in October 2008.