Global Times - SOHO goes to Sanlitun

Photo courtesy of SOHO China
By Paul Morris

In less than two weeks, property developers SOHO China will turn the keys on their second largest development in Beijing, Sanlitun SOHO.

The project, the latest piece in SOHO s empire, will have a signifi cant impact on the area and the people who use it. It covers over 470,000 square meters, is placed in one of the most desirable locations in Beijing and will act as the vanguard in the government s drive to make Beijing rival Tokyo, London and New York as an international cultural, entertainment and fashion center. Lifestyle talked to Wang Chunlei, SOHO s director of PR & Marketing about the hurdles that the Olympics threw up, what the company looks for in an architect and their future plans.

Architecture and design

As with almost all architectural ventures of this size, the responsibility for the design of Sanlitun SOHO was shared amongst a few highly skilled practitioners. The exterior was devised by Japanese architect Kengo Kuma, who was also responsible for the interior retail spaces. "Trust is a big factor for (SOHO China) and Kuma had collaborated with (them) on the Bamboo Wall Villa at the company s Commune by the Great Wall," explains Wang. "Not only that, the architects had been in charge of some of the work in The Village (the shopping complex opposite SOHO Sanlitun), so there was a sense of urban cohesion we were interested in bringing to the area."

Other collaborators included the Ministry of Design of Singapore and Spaces Ltd of Beijing, which separately worked on the interior design to fully furnish the residential units, and SAKO Architects of Japan, which designed the o. ce interiors. "It is important that the architects understand how to operate in China," adds Wang. "Things like zoning policies and a grasp of Chinese building legislation is not essential, but really useful for us."

Pit to palace, in only two years

The whole complex consists of nine towers, fi ve of which are fi nished, with the remaining four to be completed in the New Year. The pace of the development is something of which they are notably proud. "It has taken a little over two years to go from nothing to what we now see," gleams Wang. "And during the Olympics, building had to be suspended for fi ve months while the Games took place, but we still made the construction deadline."

SOHO China Chairman Pan Shiyi announced in March 2007 that they had bought the Sanlitun real estate for 3.5 billion yuan. Construction costs came to 1.5 billion, bringing the total bill to 5 billion yuan. When fi nalized, the complex will contain fi ve shopping malls, linked by an underground garden. Five of the towers on the north side of the site have been allotted as o. ces, while the four residential towers at the south end will sit on top of retail podiums. The buildings are split equally into thirds for fully furnished residential apartments, o. ce space and retail. Square meter prices are 40,000 yuan for o. ce and residential space, and 60,000 yuan for retail space.

"The sales fi gures have exceeded even our own expectations," o ers Wang. "Last year, when we started putting the properties up for sale in July 2008, we sold 6.9 billion yuan worth of space within six months." That was followed by sales worth 9 billion yuan in 2009. Already they have sold 90 percent of the plot and expect to sell the last ten percent within the next six months. The majority of the properties have been sold to high-net-worth Chinese individuals from across China. "For the SOHO company, the majority of our revenue this year has come from the Sanlitun project, so for us it has been a huge success."

SOHO have a policy of buying "clean land," ready for building in centrally located sites in Beijing. "We are synonymous with cutting-edge properties at the center of the city so we won t be buying on the outskirts any time soon," says Wang. At present, SOHO don t hold their properties, except Qianmen Avenue, and up until recently they have outsourced their management. Both are about to change; the plan is to hold more space and SOHO Sanlitun will come under their own management company, which will eventually take over the running of all their projects.

Challenges and criticisms

One of the reasons for this may be a response to earlier controversy, when residents at Jianwai SOHO were left without electricity over payment disputes that have yet to be clarifi ed. Concerns exist over the pressure the Sanlitun complex will add to existing tra. c problems, as well as the impact that such an expensive addition to the landscape will have on local residents. Wang points out that, as with the other SOHOs, Sanlitun will bring much needed employment in a wide range of areas. More recent, though, was a public relations blunder: a decision was made to leave all the lights on around the clock until people move into SOHO Sanlitun on December 23. Not only are local residents annoyed at the light pollution but many pointed out that during the week that climate change talks failed at Copenhagen, the decision seemed both inconsiderate and arrogant. It must be hoped that such controversies will be minimized when future management decisions are made in-house.

Beijing s SOHO-saturated future

This week, SOHO are fi nalizing an agreement to build a huge project in Wangjing. Led by London-based architects Zaha Hadid, known for their ability to push architectural boundaries, the project looks set to transform the skyline. Then there is SOHO Galaxy at Chaoyangmen, Guanghua Road SOHO 2, the SOHO Nexus Center on the Third Ring Road and a newly acquired building on Nanjing West Road, SOHO s fi rst Shanghai foray. SOHO have taken around 20 billion yuan in bank credit from a couple of banks, including the Bank of China. New developers in China often struggle with the government s restriction on using bank loans to bid for government land, but because of SOHO s success this holds no concern. As Wang points out, "At SOHO, we are cash-rich, some things aren t a problem."

http://www.globaltimes.cn/www/english/metro-beijing/lifestyle/auto&estate/2009-12/493398.html