International partners of Fu Wah International Group are still confident in Jinbao Street and the future of China's commercial real estate market despite the current global economic crisis .
"In the short term, it is inevitable that the current global situation will influence the real estate market in China. But in the long term, we still see strong demand for real estate in China and the opportunity remains very significant," said Chris Brooke, president and CEO of CB Richard Ellis (CBRE) in China.
As a leading commercial real estate service provider, CBRE has a close relationship with Jinbao Street. It is the development consultant of Jinbao Tower and has also offered professional consultation on the overall development of the street.
"Our outlook for the future of China's economy is positive. Although the global economy is slowing, China will be one of the first countries to grow fast again," said Martin Rinck, president and managing director of Carlson Hotels Asia Pacific.
On Dec 1, 2006, Carlson opened its first five-star luxury hotel in Beijing, the Regent Beijing on Jinbao Street. During the 2008 Olympic Games, the Regent Beijing was the official reception hotel for Olympic representatives.
"We are glad to combine our Regent brand with the high-quality project of Fu Wah Group," Rinck says.
Rinck noted another important reason for Carlson to cooperate with Fu Wah Group is the good location of Jinbao Street.
"The development of Jinbao Street benefits from its location near both Wangfujing and the CBD," Brooke said, noting the street does face challenges.
"One challenge is to identify a retail concept for the remaining development projects within Jinbao Street which reinforce it as a destination meeting high end retail demand in Beijing," he said.
"I genuinely believe that the luxury brands currently established in China have satisfied their current retailing requirements in Beijing for the next 2 to 3 years," said Richard Ziff, senior director of Retail Services, CBRE in northern China.
"There are, however, a number of new retailers that are currently assessing entering the China market that would certainly have an interest in Jinbao Street."
Brooke adds that "going forward, there will need to be a strong focus on the quality of the project in terms of design, construction and management, given additional market competition".
Brooke said Jinbao Street should build effective relationships with partners and seek to accommodate their needs and requirements as part of the development and leasing process.
"CBRE will continue to cooperate with the Fu Wah Group in terms of retail concept, positioning, management and other real estate services," he said.
Source: China Daily
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