Mining resources, quality, and efficiency from existing spaces to innovate the reactivation of underutilized land.
In Plot 165 on West Jiangchang Road, Jing’an District, Shanghai, several modern commercial buildings within the Shanghai SPH Sine Co., Ltd., are being constructed urgently. The structures are expected to be topped off by the middle of this year, with completion and opening by 2025. In the future, it will provide 38,000 square meters of high-quality scientific research carrier space above ground. With the concept of “headquarters economy + digital intelligence leading + industrial agglomeration”, it is set to establish a research and development center, data marketing center, and other industry-related centers for biomedicine, life science innovation research, and digital intelligent pharmaceutical marketing of Shanghai Pharmaceuticals Holding Co., Ltd.
Sketch of Shanghai SPH Sine Co., Ltd. after renewal
Shanghai SPH Sine Co., Ltd. is the first project to start renewal as part of the “Overall Transformation and Renewal of the Zoumatang River Area in Jing’an District”. Jing’an District is actively promoting an accelerated overall transformation and renewal of the Zoumatang River area, tapping into the resources, quality, and efficiency of existing spaces to innovate the reactivation of underutilized land. Multiple projects have been initiated in this region. In the future, this area is poised to become an efficient and complex innovation community, a mixed and diversified dynamic community, and an open and mobile ecological community.
40 property owners promote the renewal of “one policy for one area”
Covering an area of 0.6 square kilometers, the Zoumatang River area is located north of the Central Ring Road and west of the North-South Central Axis. It is an important part of the Shanghai Shibei High-tech Park in Jing’an District. The area is predominantly industrial and warehousing land, with relatively low levels of industrial development, a general scarcity of industrial land space, and a poor environmental quality of public space, resulting in issues of underutilization. To better explore and unleash the developmental potential of the area, Jing’an District launched the overall transformation of the Zoumatang River area in 2020.
“It is not about drawing on a blank sheet of paper or making massive demolitions and constructions. The overall renewal of the Zoumatang River area is even more challenging,” said a responsible person from the Planning and Land Administration of Jing’an District. The land ownership within the area is quite complex, involving up to 40 different property owners. Initial surveys on the willingness to renew showed that many property owners were not very keen on the idea of transformation and renewal.
Faced with the complex property rights within the plot, Jing’an District identified a breakthrough point and innovated renewal methods to promote multi-party participation. “We adopted a method that promotes overall regional renewal and guides the participation of multiple subjects,” said a relevant official from the Planning and Land Administration of Jing’an District.
The unit planning for Jing’an District specifically proposes that Zoumatang River serves as an industrial service platform for the Shanghai Shibei Hi-tech Park, a link between public spaces, and a model for shared communities. The district is committed to transforming the Zoumatang River area into an efficient and compound innovative community, a mixed and diversified dynamic community, and an open and mobile ecological community. To this end, Jing’an District formulated the renewal plan and urban design scheme for the Zoumatang River area, conducted a comprehensive survey of the industrial space within the area, and calculated the costs and benefits of the renewal and transformation, ultimately proposing “a development sequence featuring planning guidance and respecting will”, as well as “one policy for one area” in line with the characteristics of local industries.
The first project’s floor area ratio significantly increased after renewal
The Planning and Land Administration and other departments of Jing’an District, in conjunction with the Shanghai Shibei Hi-tech Park Management Committee, engaged in negotiations with the property owners within the plot to promote renewal.
The Shanghai SPH Sine Co., Ltd. inside Plot 165 at West Jiangchang Road, covering 9,096 square meters, was primarily composed of low-rise factory buildings with a floor area ratio of only 1.0. After engaging with Jing’an District, the property owners developed a strong willingness for independent transformation. The Planning and Land Administration of Jing’an District actively helped the property owners, providing guidance and assistance in various stages, including regulatory adjustments, land price supplements, demolition, construction planning approval, and project company registration. Consequently, the project commenced construction at the end of 2021. The plot changed its land use according to the plan, shifting from industrial land to R&D land, significantly increasing the building floor area ratio.
Before (above) and after (below) the renewal of Shanghai SPH Sine Co., Ltd.
While negotiating with property owners in the plot to promote renewal, Jing’an District actively played the leading role of the government and encouraged market entities such as park platforms and state-owned enterprises to participate in industrial space renewal to achieve win-win results for society, enterprises, and the government.
By the end of 2023, Jing’an District successfully implemented the independent transformation of Shanghai SPH Sine Co., Ltd., Shanghai Shangqin Automobile Maintenance Co., Ltd., and the Urban Construction Water Affairs plot, as well as the joint transformation of the Shenlin Lumber plot of the Bailian Group and Shibei Platform Company. The district also completed the signing of land reserve agreements, such as for Plot 3550 of Gonghexin Road, forming a batch of revitalization and renewal projects with regional characteristics.
Approval facilitation measures help enterprises save time and reduce costs
In promoting renewal and transformation, Jing’an District explored a series of measures to facilitate approval.
The Urban Construction Water Affairs plot within the area was originally used by the Urban Construction Water Affairs Group, a subsidiary of STEC. Jing’an District reached an agreement with Shanghai Jianyuan Asset Management Co., Ltd., a new asset management company established by STEC, and signed a “Strategic Framework Agreement” at the end of 2021 to promote the independent renewal and development of STEC. The project is positioned as a corporate headquarters focusing on industries such as big data, cloud computing, and life health, aiming to aid in the creation of the Shibei Data Intelligence Ecological Park and the Shibei High-tech Private Enterprise Headquarters Cluster.
Sketch after renewal
Thanks to the approval facilitation measures explored by Jing’an District, the plot was acquired on October 17, 2023, and all the planning and resource procedures required before the start of construction within the same month were completed, achieving the “land transfer alongside immediate permit issuance”.
“Enterprises can start construction at least two months in advance, which reduces time and costs.” Such facilitation benefits from the advanced services offered by the Planning and Land Administration of Jing’an District.
“For the Zoumatang River area, we conducted an assessment of the regional planning environmental impact and traffic impact. We intervened early in consulting on the project’s scheme before the plot was transferred, and included the results of the regional assessments in the ‘land-use checklist’. This way, when enterprises acquire land, they no longer need to compile separate assessment reports, which reduces repeated modifications to the design schemes and saves approval time,” said a relevant official from the Planning and Land Administration of Jing’an District. In the future, other enterprises within the area can use these regional assessment results for project approvals.
The reporter learned that the Zoumatang River area will also see significant enhancements in its soft environment in the future. Alongside waterways such as Pengyuepu River and Zoumatang River, ecological corridors will be created to forge connected waterside walking spaces. The construction of public green spaces, and cultural and sports facilities will improve the quality of the public spaces in the area. Rental housing and neighborhood centers are also under planning.
Jing’an District estimates that before the renewal, the average tax revenue per square meter in the Zoumatang River area was RMB 1,493. After the renewal is completed, this figure is expected to reach RMB 6,928.