Shanghai Development Shanghai Entrepreneurial Real Estate Development Project

Shanghai is a city located on the Eastern Coast of China that has grown to be one the financial powerhouses of the industrialized world. The urban population growth trend can be explained by the fact that much of the rural population is increasingly migrating to the urban centers in search of economic opportunities. The Pudong are has also been responsible for an extraordinary share of the population growth in Shanghai. For example, there was a fifty six percent increase in the population from a little over three million in 2001 to roughly five million in 2011. This real estate development project consists of a structure that will be composed of twin towers that will reach the planned height of 250m and be attached by a podium. The project's financial calculations estimate an internal rate of return would be nearly thirty percent (26.88%) and the net present value of the project would approximate seven hundred million USD or over four billion in Renminbi. Therefore, given the limited risk involved with this project it is highly recommended as a worthwhile investment.

Project Location and Site Information

Shanghai is a city located on the Eastern Coast of China that has grown to be one the financial powerhouses of the industrialized...

The city has grown to a population of over twenty four million people. Furthermore, the city and its population have been estimated to be subjected a growth rate of seventeen percent over the next ten years (Subbotin, 2010). The population growth in Shanghai is not dependent on the growth of the Chinese population as a whole. In fact, due to the one child policy and the strict punishments that are given for breaking this policy, the population growth in Shanghai exceeds the domestic growth rate by an order of magnitude (The Economists, 2012). This trend can be explained by the fact that much of the rural population is increasingly migrating to the urban centers in search of economic opportunities.
Within the city of Shanghai, the specific area in which the project has been prepared for is located within the Shanghai Pudong Lujiazui Central Financial District which is a national financial development area located in Shanghai Pudong New District. Lujiazui is the only financial trade zone in China, with more than 30 high rise buildings and over 520 domestic and overseas financial and insurance corporations located within. The Pudong are has also been responsible for an extraordinary share of the population growth in Shanghai. For example, there was a fifty six percent increase in the population from a little…