Singapore’s Frasers Hospitality, which manages serviced apartments, has launched its latest property in Shanghai.
Despite the current global financial uncertainty, it remains bullish about its prospects.
Frasers Suites Top Glory in Shanghai was opened by former US secretary of state, Henry Kissinger.
The five-tower serviced apartments are located in the bustling Lujiazui central business district in Pudong, and they offer a stunning view of the city’s landmark bund.
The US$350 million property is Fraser’s seventh in China and its second in the financial capital. The project is owned by COFCO, one of China’s most widely diversified conglomerates.
Two towers under Phase 1 have an 80 per cent occupancy rate and Frasers is confident this can be maintained.
Choe Peng Sum, CEO, Frasers Hospitality, said: “We are aggressive in China and India, and we are seeing a lot of interest from sovereign wealth funds and state-owned enterprises which own prime property. They are going to shift into investment properties to get recurrent income.”
In fact, Frasers is eyeing a new market next year. “There is a big market for the GenY… They need the property to be hip and fashionable, but not over the top,” said Choe.
According to the latest report from real estate advisers DTZ, land sales in Shanghai plunged from 17 last year to just eight so far this year.
But there is reason to be bullish about the serviced apartment market in Shanghai as the city accounts for two thirds of all such transactions in China.
Frasers is also going ahead with its expansion plan to manage 16 properties by 2010.
Source : Channel NewsAsia – 29 Oct 2008