By Sam Crispin, Head of China Research, FPDSavills

The old adage 'better a bed in Puxi than a house in Pudong' does not translate so well for use in articles about the Shanghai office market, but someone had to try it. With all the building that has gone on, and that continues to go on, in the 522 square kilometre Pudong New Area it is amazing to think that only 2 buildings have been produced that stand out as true International Grade 'A' standard, i.e. of a quality that would make them Grade 'A' in other major business cities around the world.

Two buildings may seem insignificant, but what buildings they are. Both the 'head and shoulders above the rest' Jinmao Building and the quietly confident Senmao International Building are among the finest examples of what can be done with an office. Not something to get too excited about maybe, but take a closer look at the attention to the smallest detail and you will see what makes the difference. What's more, those fortunate enough to have had a sneak preview of the Grand Hyatt Hotel will have seen that what amounts to a work of art has been created in the use of the atrium, the interior design, the carpets and even the sinks in the bathrooms.

For the office market in 'Little' Lujiazui, the stage is now set for competition to hot up between the Jinmao Building and Shanghai Senmao International Building. The Jinmao Building offers the most extensive range of facilities, including the Grand Hyatt Hotel, as well as the prestige associated with being the world's 3rd tallest building. While Shanghai Senmao International Building is already well established in the market, is more compact and remains easier to get to for the time being.

Both buildings have proved popular with tenants. The Jinmao Building won several tenants late in 1998 while the Senmao Buidling has achieved occupancy of about 60 per cent since completion in mid 1998. Jinmao Building tenants committed to date include Dresdner Bank (2,300 sq.m.), Cat Electric Sound (305 sq.m.), Regus (2,400 sq.m.) and Schulz Noack Barwinkel (600 sq.m.). Other tenants are in serious negotiations for space. The building has a total GFA of 289,500 sq.m. which includes a Grand Hyatt Hotel (GFA 62,000 sq.m., 53/F to 87/F), 126,000 sq.m. of International Grade 'A' office space (3/F to 50/F) and a separate 6 storey podium (18,000 sq.m.). Asking rents for office space are in the range of US$24 to US$34 per sq.m. per month.

Tenants choosing between the 2 buildings need to consider technical specifications as well as rent and other lease costs and these are set out below:

Technical Comparison of Jinmao Building and Senmao International Building Item Jinmao Building Senmao International Building Electrical Installations Building Receiving 2 parallel lines (20,000 KVA x 2) 2 parallel lines (12,000 KVA x 2)

Power Supply Supply Voltage 380 volts, 50 Hz for 3-phase and 220 volts, 50 Hz for 1-phase 220 Volts, 50 Hz for 1- and 3-phase and 100 Volts, 50 Hz for 1- and 3-phase

Increase of Supply Voltage Possible Possible - extra power can be drawn from the main electric room

Standby Power Supply Emergency Generators 2,000 KVA x 3 1,500 KVA x 2

Tenant Standby Power Supply Supply 1 stand-alone uninterruptable power supply system (UPS) provided for tenants on each office floor - 30 KVA capacity.

In addition, building's emergency generators provide power for minimum business needs including 166 LUX, basic air-con supply of 7-8 KVA per floor Possible to install 4 air-cooled generators (300 KVA) on roof of podium building. Building's emergency power supply provides power to tenant's premises for minimum business needs including 200 LUX illumination, usual operation of fan coil units, power supply of 8 KVA per floor.

Telecommunications Facilities Connection to local carrier 2 grid lines, adopting single-mode optical fibre transmission Fibre optic transmission. Total Number of Lines 14,000 direct lines 6,000 direct lines Number of lines per floor 250 (8.8 sq.m. per line), can be increased 200 (18.8 sq.m. per line), can be increased. Structured cabling Fibre-optic throughout - unshielded twisted pair cat. 5 Copper Cabling throughout Cable riser. No charges for tenants' use Charges apply for tenants' use

IDF for tenants 300 line capacity 200 line capacity

MDF for tenants 20,000 line capacity 6,000 line capacity

Aerial transmissions: Tenants have access to Community Antenna (CATV), Master Antenna TV (MATV), satellite and microwave transmissions Tenants have access to Community Antenna TV (CATV), Master Antenna TV (MATV).

Source: FPDSavills Research (Subject to Contract)

For those with any lingering doubts about an office in Pudong take a look for yourself. Now when does that subway open?

______________________________________________________ To talk to someone who understands your real estate needs in China call FPDSavills in Shanghai on 6474 8908 or for further information e-mail Sam Crispin on scrispin@fpdsavills-sh.com