Wuhan woos Europe with Dutch realty project

Yangtze River shopping complex to spearhead investment in Western, Central regions

If you build it, they will come - so goes the line based on the American baseball movie Field of Dreams.

But Netherlands-based property developer Redevco, believes that it more clearly defines its flagship project - a 1.8 billion yuan (190 million euros) shopping cum business complex near the Yangtze River in Wuhan, capital of Hubei province.

With the government keen on relocating most of its industries to the western and central regions, Redevco sees its project as a catalyst for more overseas investment in the region.

Expected to be completed in 2013, the Wuhan Tiandi Riverview Plaza will offer 109,000 square meters of retail space and a leasable area of 70,000 square meters.

The project will also house more than 250 stores, comprising international brands, popular fashion chains, lifestyle stores, dining area and cinemas.

The Tiandi Riverview Plaza is a 50-50 joint venture between Redevco and the Hong Kong-based Shui On Land.

"When the plaza is complete, I expect it to be a new landmark not only in Wuhan, but all over China," says Robert Lie, managing director of Redevco Asia.

"Almost all the famous international brands will be found in the new mall," Lie says.

Redevco chooses Wuhan as its entry point to China, he says, because the city's sizzling economic growth, coupled with a consumption boom, offers great opportunities.

Wuhan's gross domestic product (GDP) jumped 14.7 percent last year to 550 billion yuan (58 billion euros), while retail sales grew 19.5 percent year-on-year to 250 billion yuan in 2010.

Both figures belittled the national average growth. The nation's GDP hit 39.8 trillion yuan in 2010, expanding by 10.3 percent year on year, while retail sales rose 18.4 percent year on year to 15.5 trillion yuan.

"We are optimistic of Wuhan's growth," Lie says.

Besides the shopping area, the plaza will also have a number of office towers facing the Yangtze River.

They are designed to attract international corporations, especially those from Europe, which plan to establish a presence in Central China amid the country's growing industrial relocation from the coastal areas.

Lie says the high-speed rail network, which shortens the travel time between Wuhan and major eastern Chinese cities such as Shanghai from five hours to less than four hours, will be an advantage. "Once Wuhan's high-speed rail network finishes, the plaza will be more attractive," he says.

Guo Qing, a senior project manager of Shui On Land, says some 30 companies, mostly Fortune 500, have already shown interest in the project, adding that the plaza is a good place for them to establish regional headquarters and offices.

"Some companies want to open stores in it, while others plan to set up their Chinese offices in it," Guo says, without revealing the names of these companies.

Analysts say the project reflects European companies' growing interest in central and western China.

"Apparently European companies which did not make it big during China's coastal boom are determined not to lose out this time," says Li Jinlin, dean of the School of Management and Economics of Beijing University of Technology. "This time, the opportunities will emerge from inland China."