Xin Tian Di

Background

Location:
The Taipingqiao Redevelopment Project is in the Luwan District of downtown Shanghai. It is one block
south of the prestigious Huai Hai Zhong Road and the Huangpi Nan Road metro station, and is close to
the intersection of Shanghai's major urban freeways.

History:
Xintiandi (“new heaven and earth” in Chinese) used to be a 30,000-square-meter neighbourhood
located nearby Huaihai Road, a well-known high-quality shopping street in Luwuan District in central
Shanghai. The houses in this neighbourhood were Shikumen lane houses, a typical local folk house style
with mixed features of Chinese traditional houses and European architecture elements and the
architectural symbol of early 20t h century Shanghai. One of the old Shikumen is the birthplace of the
Communist Party, which later became a local Museum. Over the years, the neighbourhood was sadly
deteriorated because of lack of maintenance and overcrowded with high-density population.

Shikumen- In the early 1900s, the Shikumen lanes were considered among the younger generation as
the ultimate examples of dilapidated, crowded and wretched urban living. Luckily for the generations to
follow, a few literary masterpieces were written by writers infatuated with the lane's architecture which
introduced people to the hidden beauty of Shikumen.

The Stone-hooped Doors and Shikumen- In the Shanghai dialect, wrapping or bundling is called
'hooping', giving rise to phrases like 'hooping a bucket', so doors 'hooped' by stone bars were called
Stoned-hooped doors, and later the name changed to Shikumen. Generally, the Shikumen-style
buildings have long bars of stones as doorframes and burly wooden planks as doors, each fixed with a
huge bronze ring.

The origin of Shikumen buildings can be traced back to the 1860s. In 1860, the Taiping Rebels led by Li
Xiucheng advanced east, conquering a string of important towns in eastern China, causing an influx of
refugees from southern Jiangsu and northern Zhejiang into the foreign settlements in Shanghai. To
accommodate this inflax of refugees, local merchants were encouraged to invest in housing for these
people. To use the limited land more efficiently, the houses built were in most cases rows of Shikumen-
style buildings.

These buildings reflect a mix of Chinese and foreign styles of architecture. Shikumen-style buildings have
certain elements of the west, but most of the design and layout is in line with that of the "Jiangnan" area
of eastern China. Behind the Shikumen door is a courtyard, and further inside is a living room, locally
known as a parlour, and then there is the back courtyard, kitchen and back door. To the sides of the
courtyard and the parlour are the right and left wing rooms. The layout of the second storey is similar to
the one below, but above the kitchen is the garret, above which is a flat roof. The typical buildings of the
Shikumen style can be seen within Xingrenli - an area of 1.33 square kilometers defined by the east side
of Henanzhong Road, Ningbo Road and Beijing Road; and also within Dunrenli, Mianyangli and Jixiangli,
all near the Xinmatou Street close to Zhongshannan Road.

After the early 1900s, Shanghai's households became smaller in size and the residents' living patterns
underwent major changes. The structure and layout of the Shikumen-style houses also changed as a
result. Smaller units, without wing rooms and suitable for small households, appeared, together with
somewhat larger units with one parlour and one wing room. These new two-or-three-storey Shikumen
houses were separated by lanes four meters wide. Humble "Tingzijian" rooms were found at the turn of
the staircases while verandahs were added to the facades. After the 1920s, sewerage systems were
installed. Typical examples of such Shikumen buildings are the Jingan Villa on Nanjingxi Road, and the
Daluxin Villa on Shanyin Road.

After the 1930s, Shanghai faced a housing shortage, so the owners of Shikumen-style buildings rented
out some of the rooms. Since then most Shikumen-style buildings have had their original layouts altered
and became mansions housing more than one family.

Life in the Lanes- Shikumen-style houses formed the basis of the "Li Long" (lane) community where
private spheres and public spaces overlapped. In this community, everyone knew everyone else's
business. As the density of the community rose, some family activities were often moved to public
spaces.

A Valuable Architectural Legacy- At their peak, the Shikumen-style neighbourhoods numbered more
than 9000 in Shanghai and took up 60 per cent of the total housing space of the city. The Shikumen
style, which has survived for more than a century, is however no longer suitable for modern urban living.
Since the 1990s, Shanghai began a new wave of renovation and development, demolishing many
Shikumen-style buildings. It was only when more and more of these houses were replaced by
skyscrapers that people began to realize such monuments of Shanghai's past deserve to be preserved.

Project Concept:
Many cities around the world have their own landmark architecture set in old districts that were
renovated into famous tourist spots. Mr Vincent H S Lo, chairman of the Shui On Group, believed that
Shanghai in the 21st century would become an important international metropolis. Shanghai Xintiandi
provided an answer for preserving the old architecture of Shanghai that would be representative of its
historical and cultural heritage.

A city-core development project consisting of office, residential, commercial, retail, entertainment

and cultural properties in the heart of the city, the Taipingqiao Redevelopment Project blends the
architecture and charm of “Old Shanghai” with modern features and facilities to create an integrated
community. The main components of this project are Shanghai Xintiandi, Corporate Avenue and
Lakeville.

Details of the Development

Planning:
In order to redevelop, reuse and improve the function and facility of the inner city, S.O.M. designated
four parts in the plan:

1. An historical area preserved as a complex for business, restaurants, entertainment and tourism, of
which the main part is Xintiandi

2. Corporate Avenue international business district;

3. Lakeville premier residential area zone;

4. Shopping and entertainment centre (a Broadway-style theatre and retail and entertainment outlets )
and Taipingqiao Lake and Park with a 44,000 sqm lake as the green area. The lake is the largest man-
made lake in downtown Shanghai, covering 12,000 square metres.

Shanghai Xintiandi - It is located on the western edge of the entire project and south of the
prestigious Huai Hai Zhong Road.
Xintiandi is divided into the North and South Blocks.

In the North Block, antique buildings with their modern interior design, decorations and equipment play
host to a dazzling array of restaurants putting on display the full international dimension of Shanghai
Xintiandi. The dividing line between the two blocks, Xingye Road, is the site of the First Congress Hall of
the Chinese Communist Party.

In the South Block, modern architecture is the motif while Shikumen is an accompaniment. Aside from a
series of international restaurants representing the flavors of the world, there are classy boutiques,
accessory shops, a food court, a movie cinema, a great one-stop fitness centre as well as luxurious
serviced apartments. There is also an underground carpark with 220 parking spaces.

The North Block is characterized by the historic and renovated Shikumen buildings; in contrast, the
South Block is defined by its sleek modern architecture style.

Corporate Avenue – Corporate Avenue is on the bustling Hubin Road at the north end of Taipingqiao
Lake. Adjacent to Shanghai Xintiandi, the renowned urban retail and entertainment area, it is a short
walk from Huangpi Nan Road metro station on Huai Hai Zhong Road.

Corporate Avenue is developed for multinational companies in Shanghai and is destined to become the
core of the Luwan business district in downtown Shanghai. The completed Phase 1 of Corporate Avenue
recalls the Art Deco style that is characteristic of Shanghai's architecture in the 1930s while offering the
latest "smart" office building services and facilities.

Located in the central business district of Huai Hai Zhong Road, it becomes the top commercial hub in
Shanghai.

Built along the 1.2km stretch of Hubin Road on the north border of the Taipingqiao Lake, it has stunning
views of the Lake and Shanghai Xintiandi.

The buildings are equipped with world-class technology and communications systems, and serviced with
quality property management services.

Lakeville- The project is located on the southern side of Taipingqiao Lake. It is within walking distance
of the renowned Shanghai Xintiandi, the Huai Hai Zhong Road business district and the Huangpi Nan
Road metro station.
It offers modern amenities in a serene living environment and proximity to entertainment and business
facilities in downtown Shanghai.

Phases and Time Frames:

Phase Area Completion Date
Phase 1 Shanghai Xintiadi Site Area- 30,000sqm 2001
Gross Floor Area- 57,000 sqm
Lakeville* Gross Floor Area- 49,000 sqm 2003
Corporate Avenue Gross Floor Area- 390,000 sqm 2004
Phase 2 Lakeville Regency** Gross Floor Area- 136,000 sqm 2006
Phase 3 Casa Lakeville*** Gross Floor Area- 98,000 sqm 2009

*It consists of three low-rise apartment buildings, two high-rise buildings and two villas, providing 283
units of between 105 and 500 sq.m. each. 40% of the site is landscaped area with recreational amenities
including an indoor heated swimming pool and a clubhouse.

**It features 17 blocks comprising 645 units of between 93 and 660 sq.m. each. It also has a 7,000-sq.m.
deluxe clubhouse offering a full range of exclusive facilities

*** The project, in a modern, minimalist style, features 11 blocks to provide 474 units. The sizes of one-
to-four bedroom units range from 89 sq.m. to 430 sq.m. Besides, Casa Lakeville is equipped with
supporting facilities such as a 3,000-sq.m. deluxe clubhouse and a flagship centre for fashion brands.

Renovation/ Restoration/ Conservation/ Heritage

The Preservation of Shikumen Architecture:

Shanghai Xintiandi's Shikumen attraction was created by converting residential blocks into a
multifunctional dining, retail and entertainment center flowing with restaurants, boutiques, cafes and
bars of an international standard. The Shikumen buildings within Shanghai Xintiandi retain the antique
walls, tiles and exterior of the Shikumen housing of old Shanghai, while the internal spaces have been
designed and decorated to suit the up tempo lifestyle of the 21st century urbanites, with infinite details
that exude the casual elegance of modern city living. Shanghai Xintiandi is where "yesterday meets
tomorrow in Shanghai today."
A lot of time and effort were spent on the design and construction stages to preserve the old
architecture. Yet the beautifully restored old buildings also boast the latest modern facilities, such as
modern M&E systems, escalators and concealed fibre-optics.

To design Shanghai Xintiandi, the Shui On Group hired the services of Wood and Zapata Inc, a US-based
architectural firm specialised in renovating old buildings, and the Singapore office of Nikken Sekkei
International Ltd., Shanghai Tongji University's Urban Planning, Design and Research Institute is its
architectural consultant. The designers needed to consider Xintiandi from several perspectives: the
importance of preserving historical buildings, the need for urban development, as well as functional
considerations of the buildings. As a result, most of the old Shikumen buildings on the northern plot
have been restored and complemented by some appropriate modern buildings. The southern plot is
mainly made up of new constructions in a contemporary style, mixed with a small number of preserved
Shikumen buildings. A pedestrian path links up the northern and southern plots.

Restoring the Shikumen House- The area previously housed about 2,300 families, amounting to more
than 8,000 people. The Shui On Group has invested over US$75 million to relocate these residents. The
Shikumen houses have been restored to meet the aesthetic and practical needs of the new tenants. All
the Shikumen houses at Xintiandi are equipped with the latest modern facilities, including concealed
fibre-optic and air-conditioning systems, to ensure maximum efficiency and reliability. Yet many original
architectural features had been retained. The dry brick -wall, a specific feature of Shikumen houses, is
one example.

Preserving the Old Bricks and Tiles- In order to reflect Shikumen's true history, the original bricks
and tiles have been preserved as rebuilding materials. The old bricks and tiles were primarily laid with a
costly moisture proof chemical fluid imported from Germany. Before the roofs were paved, they were
covered with two layers of waterproofing and heat insulation materials. The price for these old bricks
and tiles proved far higher than that of new ones.

Installing the Modern Facilities in Old Building- Shikumen-style houses formed the basis of the "Li
Long" (lane) community where private spheres and public spaces overlapped. In this community,
everyone knew everyone else's business. As the density of the community rose, some family activities
were often moved to public spaces.
Use (Transformation)
Xintiandi cover s two city blocks in the Fr ench Concession district of Shanghai, an ar ea that was
or iginally developed in the 1920's, dur ing Shanghai's colonial per iod, when the city was a
cosmopolitan, louche tr ading por t. The Fr ench Concession is distinguished by tr ee-lined str eets of
two-stor y, gr ay-brick houses that have stone ar ches for door ways and terra-cotta tile r oofs.
Narr ow alleyways inter sect the str eets, giving passage fr om one to the next.

After 1949, the buildings in the Fr ench Concession wer e tur ned into communal dwellings, with as
many as 10 families living in a house intended for one, and the ar ea became known for
over cr owding and poor sanitation. M uch of the neighbor hood still consists of multiple dwellings,
and a walk thr ough its str eets invar iably involves navigating laundr y lines str ung between
lampposts, ducking under flapping shir ts and, in winter , dripping pair s of ther mal long johns
(buildings in Shanghai, as in all Chinese cities sout h of the Yangtze, have no centr al heating, and
the winter s ar e cold and damp), and skirting chair s dr aped with quilts that, according to Chinese
custom, have been br ought outside for a daily air ing.

Xintiandi, however , displays none of the messiness of r eal lives being lived. Owned by a developer
fr om Hong Kong and designed by the New Yor k-based ar chitectur e firm of Wood & Zapata, it
follows the festival mar ketplace for mula established in Amer ica at Quincy M ar ket in Boston and
the South Str eet Seaport in New Yor k. Ades of the most significant buildings have been pr eser ved,
and design elements fr om the or iginal str uctur es have been incor por ated into the new ones.

To make way for Xintiandi, hundr eds of r esidents wer e compelled to r elocate t o suburbs or high-
rise apartment blocks, the kind of housing that has pr olifer ated in Shanghai as far as the eye can
see,which, given the pollution and typically misty, moist weather, isn't ver y far. Xintiandi is a kind
of Shanghai- land, alleys r un between buildings just as they did in the old days, although r ather
less narr ow spaces have also been opened up to allow for open-air cafes selling Fr ench pastr ies in
an atmospher e of r ather mor e gr aciousness than is histor ically accur ate.

Use Area Location Opening Date

Boutique Shops North Block
Shikumen Open House Museum Area- 367.2 sqm North Block
Gross Floor Area-
513.9 sqm
One Xintiandi- Shui On Group Clubhouse North Block
Art Studio North Block
Restaurants/Cafes/Bars/Lounges North Block
88Xintiandi- A Luxury Boutique Hotel South Block
Shopping, Enter tainment and Leisure 25,000 sqm South Block Mid 2002
Complex
Corporate- Office Buildings with commercial 390,000 sqm 2004
and entertainment complexes

The property value in the surrounding area has already risen and continues to rise -more rapidly than in
other parts of the city. The current land rate in the area is over US$ 15000 per square meter, compared
to US$ 2700 per square meter in 2002.

Financials/ Project Development

Investors and Partners:

In 1997, Hong Kong developer – Shui On Group, using its relationship with the district government,
signed a 50 years, 52 hectares of land, 3 billion US dollars investment Taipingqiao area land lease with
Luwandistrict government.

According to the contract, the private developer will provide capital for the redevelopment, and local
district government will provide subsidies and take responsibility for the relocation of original residents.

The idea of redeveloping Xintiandi was initiated in 1997. The local district government wanted to
redevelop the whole 52-ha Taipingqiao Area, in which Xintiandi is part of the project. They asked
Vincent Lo, the director of Hong Kong Shui On Gr oup and a former business partner of the local officials,
to provide some advice. One stipulation was that the old party hall has to be preserved. Understanding
the prime position of Taipingqiao area, Lo decided to invite the famous Skidmore, Owen and Merril LLP
(S.O.M.) from US to master plan the area and Kohn Pederson Fox (KPF) and Palmer & Turner to design
the area’s office buildings. Architect Benjamin Wood worked on the restoration of the old residential
area.

The Original Residents:

In the first phase of relocation, relocated families were compensated at an average of $15,600. This was
considered a good term in 1997, and many families were content to take the monetary compensation
and left.
However, real estate prices in Shanghai skyrocketed in the next few years. Although the compensation
was raised to $20,000, it is far from enough to purchase an apartment unit in the city.

The families are mostly lower-income residents living in extremely crowded conditions. Since the
calculation of compensation is based on living area ins tead of the number of residents, it is impossible
for these families to buy an apartment in the city that is large enough to accommodate all family
members.

The families have been negotiating with the local government for on-site relocation. Therefore the
relocation methods in the XTD areas included partially in-kind (offsite), partially monetary
compensation.

Total Investment:
Shui on Group agreed to invest 3 billion US dollars over the next 15 years, which is 97% of the total
investment. The remaining 3% is provided by Shanghai Fuxing Development Corporation, a state
enterprise owned by the Luwan district government. Shui On Group had great autonomy in deciding the
direction and design of the redevelopment. Shui On Group thus recommended Skidmore, Owings and
Merrill LLP (SOM) to Luwan District Government to design a controlling detailed master plan of the
Taipingqiao area. The SOM plan was then approved by Shanghai Municipal City Planning Administration
in 1997.

Xintiandi is one of the earliest projects implemented under private finance initiative to preserve old
building in a city, which is normally a task only for the public sector and public finance.

Total investment on Xintiandi= US$ 170 million.

The investment in preserving each old building is several times higher compared with new building
construction, with 20,000 Yuan (US$2,415) per square meters. In the end, most of the investment in
the project came from the budget of the company. The bank’s loan, US$45 million (30% of the total
investment), only arrived at the end of 1999, one year after the project started.

The flagship of Shui On group in Shanghai, Xintiandi takes up only 6 per cent of the 52-hectare site off
fashionable Huai Hai Zhong Lu. The rest of the land is being developed into residential and office towers
- Shui On is now marketing some of the completed space, to good response.
Xintiandi’s success has helped to raise the property value in the area significantly and turned the
surrounding area into the most expensive real estate in the city.

Areas:
Phase 1 has a gross floor area of 83,000 sq.m, with an occupancy rate of over 98% (not sure about this
data).

Area Name Site Area (Ha) Gross Floor Area (Sqm)

Shanghai Xintiandi (Historic Restoration Zone in 3 57,000
Taipingqiao Project)
Corporate Avenue (Corporate Headquarters Zone in 4,16,000
Taipingqiao Project)
Lakeville(Large-scale Prestigious Residentials in Taipingqiao 5,51,000
Project)

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