China property developers go down-market

[HONG KONG] The Chinese developer behind an eight-storey clubhouse with a billion-dollar view over Shanghai's Huangpu River is turning to lower-end coffee shops and restaurants to fill the space, as a broad anti-graft campaign puts the brakes on conspicuous spending.

The state-of-the-art, steel and glass building was originally designed as a playground for China's elite, including space to mix and mingle with officials from state-owned enterprises based in offices nearby.

"Last year, we originally planned to open a clubhouse in the building, but it became too sensitive," said Vincent Zuo, a manager of research and development at Franshion Properties, which has a market value of US$2.7 billion. "We are now looking to open restaurants and coffee shops," said Mr Zuo, adding that an art museum was another option for the arch-shaped building which sits in the middle of the company's 30 billion yuan (S$6 billion) cruise terminal complex.