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Another Big Mall for Nanjing Road

Another shopping mecca is planned for the city, with a 200,000-square-meter mall, combining neighboring buildings around the current New World City, set to open on Nanjing Road by 2005.

In line with the renovation plan for Nanjing Road, Shanghai New World Co Ltd decided to buy out and revamp a series of buildings near its New World City, including 88 Entertainment Center, Yangzhou Hotel and Far East Entertainment Center, to build a mega shopping mall in three years.

In this regard, Shanghai New World, a leading retailer listed on the Shanghai Stock Exchange, has signed a letter of intent to buy Far East Entertainment Center from Shanghai Ever Shining Culture (Group) Co Ltd for 130 million yuan (US$15.7 million), company officials said.

Far East Entertainment Center was jointly developed by Shanghai Ever Shining, the operator of the Grand Theater, and Hong Kong Far East (China) Investment Co Ltd Construction of the building began in 1994, but was suspended in 1998.

"The takeover is part of Shanghai New World's plan to build a comprehensive consumption circle, or shopping mall, around New World City," said Ma Bingfang, the company's board secretary.

Last November, McKinsey & Co came up with a new map for one part of Nanjing Road - starting from the Bund to Chengdu Road N. The revised plan includes upgrading the goods sold in the shops on the street while extending cultural, entertainment and catering services.

Shanghai Ever Shining is also planning a 20,000-square-meter entertaining circle around the Grand Theater. But no details were available.

Total sales at all 66 enterprises on Nanjing Road Pedestrian Mall during the first half of this year reached more than 4 billion yuan, up 10 percent year-on-year, the Shanghai Commercial Commission revealed.

( eastday.com August 14, 2002)

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