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ASIA’S PROPERTY MAGAZINEJANUARY 2009 | ISSUE 1
INDIAN REALITY Ebbing Favourably - a review of the market
GREEN BUILDINGSMake green work for you
The best of building design
MAKE SPACE FOR LUXURYDesign your dream at Jakarta’s The Keraton
HONG KONG’S LOGISTICS FUTUREHow Goodman paves the way
MIXED-USE DEVELOPMENTSThe best from Beijing and Singapore
CUBIC CoverDec08.indd 1 5/1/09 11:22:08 AM
CUBIC ADS.indd 2 10/22/08 11:47:16 AM
CUBIC ADS.indd 3 10/22/08 11:47:18 AM
ASIA’S PROPERTY MAGAZINEJANUARY 2009 | ISSUE 1
INDIAN REALITY Ebbing Favourably - a review of the market
GREEN BUILDINGSMake green work for you
The best of building design
MAKE SPACE FOR LUXURYDesign your dream at Jakarta’s The Keraton
HONG KONG’S LOGISTICS FUTUREHow Goodman paves the way
MIXED-USE DEVELOPMENTSThe best from Beijing and Singapore
CUBIC CoverDec08.indd 1 5/1/09 11:22:08 AM
CUBICBY COLLIERS INTERNATIONAL
EDITORIAL DIRECTORGAVIN VERCOE
EDITORSHERALYN TAY
DESIGNERJOHNSON LIM
ACCOUNT MANAGERKELVIN GOH
CONTRIBUTORSEDMUND MAK, LIM SAY LIANG,ELIZABETH KERR, NAMRATA KOHLI,WALL ACE CHAN
ADVERTISING ENQUIRESIf you would like to adver t ise in the nex t issue of CUBIC, please contact Gavin Vercoe at Colliers International,+65 62 2 3 2 32 3
CUBIC IS PUBLISHED FOR COL LIERS INT ERNATIONA L BY MEDIACORP P T E LTD, T ECHPOINT # 01- 0 6 / 0 8 , 10 ANG MO KIO S T REE T 6 5 S(5 6 9 0 5 9) . A L L RIGHTS RESERV ED, REPRODUC TION IN WHOLE OR IN PART IS PROHIBITED. COPYRIGHT 2008 © IS HELD BY COL LIERS INT ERNATIONA L . PRINT ED BY KHL PRINTING CO P T E LTD. COLOUR SEPA R ATION BY KHL PRINTING CO P T E LTD.
For all your real estate needs please phone your local Colliers International office.COLLIERS INTERNATIONAL OFFICES – ASIA
MAINL AND CHINABeijing + 8 6 10 8518 16 3 3Chengdu + 8 6 2 8 8 620 212 8Guangzhou + 8 6 20 3 819 3 8 8 8Shanghai + 8 6 21 6141 3 6 8 8HONG KONGHong Kong + 8 5 2 2 8 2 8 9 8 8 8INDIAMumbai +91 2 2 2 351 4 5 0 0New Delhi +91 11 2 3 35 6 620Bangalore +91 8 0 4132 0 320Chennai +91 4 4 2 8 3 6 10 6 4Pune +91 20 2611 4141Gurgaon +91 12 4 4 3 7 5 8 07Kolkata +91 3 3 4 4 0 0 05 0 0INDONESIAJakar ta + 62 21 521 14 0 0JAPANOsaka + 81 6 62 32 0771Tok yo + 81 3 55 6 3 2111
KORE ASeoul + 82 2 674 0 2 0 0 0MACAUMacau + 85 3 2 8 71 3 9 8 8PAKISTANKarachi +9 2 21 52 9 0101PHILIPPINESManila + 6 3 2 8 8 8 9 9 8 8Cebu + 6 3 32 2 3 3 6 42 2SINGAPORESingapore + 65 62 2 3 2 32 3TAIWANTaipei + 8 8 6 2 8101 2 0 0 0THAIL ANDBangkok + 6 6 2 65 6 70 0 0VIE TNAMHo Chi Minh Ci t y + 8 4 8 82 7 5 6 65Hanoi + 8 4 4 2 2 0 5 8 8 8
MICA (P) 2 73 / 0 7/ 2 0 0 8
January 2009 | 02
WELCOME to the fi rst issue of CUBIC, Asia’s Property Magazine – In this issue we
take you in-depth into some of the property projects and minds that are making a
difference throughout this region. Topics range from mixed use developments in
Singapore and Beijing to philanthropic activities in Vietnam and Sri Lanka.
Although the fi nancial markets have been thrown into turmoil over the last
months, quality real estate development and activity in Asia will not be stopped.
People still need to work, live and play and those that fi nd creative and effi cient ways
to house these activities will continue to be rewarded. In fact during tough times
internationally, Asia usually gains global market share and comes out stronger and
more invigorated than before.
Colliers International is dedicated to supporting and providing knowledge to
business leaders to ensure companies are located in premises that are cost effective
and also fi t their business culture while encouraging creativity and connectivity. Our
commitment is also pledged to developers to share best practices found globally and
assist in the many facets of creating new buildings and environments that support the
lifestyles and businesses of Asia.
Even through these diffi cult fi nancial times Colliers International is committed to
funding initiatives that help share our knowledge and support real-estate activity in
the region. We hope you enjoy this fi rst edition of CUBIC and look forward to adding
value to your business in 2009.
“We accelerate your success by making our knowledge your property”
Gavin Vercoe
Regional Director – Marketing and Communications
FOREWORD
02-03 Foreword Contents.indd 2 5/1/09 11:26:17 AM
04 09
3020
02 FOREWORD
04 LOGISTICS FUTUREGoodman brings a brand new era to Hong Kong’s ports
09 HOW GREEN DOES YOUR BUILDING GROW? Build green, grow profi ts and generate goodwill
14 A BEAUTIFUL WAY TO WORK How art works – for Swire
18 MOTORING Audi: a supercar at last
20 ICONS OF STYLE Buildings of innovation and design
24 VIETNAM RISING Korean developer Kumho sets its sights on Vietnam’s rising star
30 ALL-IN-ONE LIVING The Landgent is helping Beijing meet those mega-city dreams
34 INDIA REALTY Downturn spells gloom for Indian real estate? Not quite
40 THE LUXURY OF SPACE The Keraton shows how to make something out of nothing
44 HUBBING UNITED United Engineers Developments turn Changi site into a mixed-use super-hub
48 GADGETS Fancy your own brewery at home?
50 JEWEL AT SEA The protection of Phu Quoc, island paradise
54 COLLIERS CARES Kirinda, a community restored
56 WORLDVIEW USA Real estate in a time of change
58 PEOPLE Out and about with Colliers
60 BOOK REVIEWTribal Leadership
40
14
CONTENTS
03 | January 2009
02-03 Foreword Contents.indd 3 5/1/09 11:26:39 AM
04
With little or no new supply coming on-stream in the next few years,
demand for prime industrial space in Hong Kong has reached fever pitch.
Will Goodman’s latest projects slake the thirst?
GOODMAN:
BY EDMUND MAK
January 2009 |
SECURING HKLOGISTICS FU
04-07 CUBIC GOODMANS.indd 4 5/1/09 11:28:14 AM
05
LOGISTICS FUTURE
THE SCENERY overlooking
Rambler’s Channel in South-
West Hong Kong can be
breathtaking. On a clear
sunny day, one can see
container ships chugging to
and from the Kwai Chung
Container Terminal. As
construction on Stonecutters
Bridge nears completion,
two industrial sites sit across
the water from each other,
both in a prime position to
take advantage of the new connectivity the bridge will bring. The
names of these sites are Seaview and Interlink — both developed by
Goodman, a full-service industrial property company.
With a core business in fund management, development
management and property services, Goodman has over 300
employees in Hong Kong and 35 offi ces across 18 countries around
the world. Goodman operates the Macquarie Goodman Hong Kong
Logistics Fund, a portfolio valued at over HK$9.0 billion and which has
18 assets located around Hong Kong – each of which has an average
occupancy level of 98 percent.
With years of experience and an in-depth understanding of
the management of industrial properties, Goodman has identifi ed
warehouse and industrial infrastructure as a key opportunity for them,
and the bustling port city of Hong Kong.
LEFT: Artist’s impression of the Rambler’s Channel city-scape when MGA’s Seaview and Interlink have been completedBELOW: Daniel McDonald, Managing Director of Goodman Asia on-site at Interlink
“The continued increase in sea and air cargo throughput, strong Gross Domestic Product, export growth fi gures and historically low warehouse vacancy of 1.3 per cent all underpin the demand for warehouse space in Hong Kong.” Daniel McDonald, Managing Director of Goodman Asia
| January 2009
KUK’S UTURE
04-07 CUBIC GOODMANS.indd 5 5/1/09 11:28:19 AM
THE BATTLE FOR SPACEThe offi ce crunch has long been a matter of course in downtown Hong
Kong, which has the reputation of having one of the world’s costliest rentals
– especially for prime space. In 2008, the rentals in Central District hit an
average of HK$100 per square foot per month. In some prime parts of
Central, rentals were more than HK$200 per square foot per month. Driven
by the demand for offi ce and residential space, companies have shifted
some of their offi ce operations out of Central and other pricier districts,
choosing more innovative sites to house operations.
Since industrial property rents historically lagged behind their offi ce and
commercial counterparts in terms of growth, local developers seized on the
cheaper prices, buying existing industrial properties and converting them
into offi ce or commercial buildings to take advantage of high offi ce and
commercial rents.
The Hong Kong government has led the way, relocating some of its
offi ces from Wanchai to Kowloon East. Old industrial estates in areas such
as Kowloon East and Kwai Chung have become hubs for businesses and
residents alike as part of the local government’s urban-renewal plans. Some
companies, such as Emperor Group and Far East Organisation, have also
bought old industrial buildings, with plans to convert the sites into hotels.
This movement has lead to a shortfall in available industrial space, and
vacancies in the sector have reached a low of 1.3 percent. There is also a
small supply coming on stream in the next few years.
Even amid stiff competition and rising costs, Hong Kong has retained
a strong grip on the business of import-export. According to government
statistics, the volume of re-exported goods increased by 8.3 percent year
on year in July 2008, with exports growing by 7.3 percent. An April 2008
report by Colliers International also noted that some Chinese manufacturers
were looking at shifting part of their operations to Hong Kong because of
the rising Chinese labour costs.
ARTIST’S IMPRESSION OF INTERLINK: The new port, bridge and warehousing will help bring a new level of interconnectivity
Also known as Angchuanzhou Bridge, Stonecutters
Bridge is a cable-stayed highway bridge and, when
completed, will be one of the longest bridges of its
kind. Due to be completed in 2009, the bridge will span
almost 1.6km and will link Tsing Yi Island and
Cheung Sha Wan as part of the newly constructed Route
8, which will link Lantau Island, Tsing Yi Island, Cheung
Sha Wan in West Kowloon and Sha Tin
in the New Territories.
STONECUTTERS BRIDGE
04-07 CUBIC GOODMANS.indd 6 5/1/09 11:28:32 AM
With Hong Kong being used as a stepping stone into China, combined with
its open market and sound governance (Hong Kong is consistently ranked among
the top ten countries in terms of economic freedom), therefore it seems clear that
demand – not only for industrial space, but also for warehousing and logistics
operations as well -- is set to grow in the next few years.
“The export sector is one of the main pillars of the Hong Kong economy,
having grown 7.3 percent per annum year on year at July 2008. However,
with no new supply during that time, there is pent up demand for high-quality,
effi cient warehouse buildings,” noted Piers Brunner, CEO, Asia and Managing
Director Hong Kong of Colliers. As Daniel McDonald, Managing Director of
Goodman Asia, told CUBIC, “New industrial development in Hong Kong has
been virtually non-existent for much of the past decade.”
MORE ROOM TO GROWThe Hong Kong government has committed itself to maintaining and
strengthening Hong Kong’s role as an international transport and logistics hub
in Asia with continued development of infrastructure projects. These include
Route 8 (Lantau Island-Tsing Yi Island-Cheung Sha Wan-Sha Tin) and an MTR
connection between Sha Tin and Central. The government is also currently
considering the location of Container Terminal 10, a new addition to the
existing port, to improve its competitiveness.
All of these factors point to unique opportunities in the sector for
developers. However, the supply of greenfi eld sites is limited by the Hong
Kong government, making new sites that are well connected by highways
and infrastructure hard to come by. One of the solutions: buy older buildings
and reconfi gure them to maximise the gross fl oor area (GFA) available.
This is exactly what Goodman has done with its latest two projects,
Seaview and Interlink. “The demand behind these two projects was
customer driven -- our customers wanted the opportunity to consolidate and
to achieve synergy with the rest of their operations,” said McDonald.
Located on the doorstep of the Kwai Chung Container Port, the
two projects are strategically positioned to take advantage of their close
proximity to both the port and transport links to the rest of the island
and to Mainland China. When completed, the 25-storey buildings will
dominate the landscape, adding an estimated 3.7 million square feet of
leasable space to the warehousing and logistics market.
WAREHOUSES FOR THE FUTURESeaview is located in Tsuen Wan, and is directly linked to the Chinese
border via Route 5 and the Tai Lam Tunnel. It is also linked to the Hong
Kong International Airport, the River Trade Terminal and Shenzhen via
Route 9. Currently undergoing demolition works to clear the site, Seaview
is slated for completion in mid 2011 and will have a total Gross Leasable
Area (GLA) of 1.3 million square feet.
Interlink is on Tsing Yi Island, next to Container Terminal 9. With an
estimated GFA of 2.4 million square feet, Interlink is the larger of the two
projects and is scheduled to be completed by April 2011. Tsing Yi Island
is one of two sites under government consideration for the location of
Container Terminal 10, the latest expansion of the Kwai Chung Container
Port. The Interlink project will be connected to Lantau Island, Tsuen Wan
and Sha Tin via Route 8.
Both buildings will contain 14 levels of ramp-up warehousing and a
mixture of 12-and 16-metre deep unloading bays to cater to all vehicle
sizes up to 45 foot containers. Each ramp is 15 metres wide to allow two
45-foot container trucks to pass by comfortably.
Seaview and Interlink will be the fi rst warehouse/logistics buildings
rated with HKBEAM, and will include a plethora of environmentally friendly
features. Both buildings will feature energy-effi cient glass and light fi ttings,
and use natural ventilation where possible. Goodman is looking to recycle
75 percent of demolished materials, reduce the amount of construction
waste, and use sustainable timber such as bamboo for some fl oor fi nishes.
A STABLE OUTLOOKEven in an uncertain global economic environment, customer-led demand
for prime industrial warehousing and logistics space will continue to result
in modest rental growth in the industrial property sector, said McDonald,
because of the lack of new space due to limited land released by the
government and the redevelopment of obsolete space for commercial uses.
The growth of the export sector in China, which is still expected
to be strong in the coming years, will also drive demand for industrial
space and the need for warehousing and logistics support. As one of
the gateways to China, and a major player in the Asian transport and
logistics arena, Hong Kong will benefi t from China’s growth.
“Whilst the completion of Goodman’s two developments will ease
some demand pressures, we anticipate steady but lower market rental
growth to continue well into 2012 and 2013,” said McDonald. “The
continued increase in sea and air cargo throughput, strong Gross
Domestic Product, export growth fi gures and historically low warehouse
vacancy of 1.3 percent all underpin the demand for warehouse space in
Hong Kong.”
LOGISTICS FUTURE
07
Seen as an essential development to keep up with growing volumes of exports to and from Hong Kong, Container Port 10 is the latest planned extension to the Kwai Chung Container Terminal. The Hong Kong government and GHK (Hong Kong)
Limited have commissioned a study on the feasibility of several sites, with Lantau Island and Tsing Yi Island being singled out as the two most suitable. Currently, the Tsing Yi site is seen as
the more suitable site in terms of cost and providing boundary-crossing facilities from the planned Hong Kong-Zhuhai-Macau
Bridge. The report by GHK also notes it is “vital to provide additional land around Kwai Chung and Tsing Yi for a container
terminal and related uses as a fi rst priority”, providing additional capacity at an overall lower cost.
KWAI CHUNG CONTAINER TERMINAL 10
t
| January 2009
For more information on this developement, please contact Piers Brunner, Managing Director, Colliers International Hong [email protected]
04-07 CUBIC GOODMANS.indd 7 5/1/09 11:29:01 AM
CUBIC ADS.indd 15 12/23/08 11:39:00 AM
The urban jungles of Asia are going green — and in a big way.
Cubic takes a look at some of the leaders of this modern-day revolution
and finds out how they make green grow for them. BY SHERALYN TAY
09
GREEN
BU
ILDIN
GS
AS THE SPECTRE OF CLIMATE CHANGE makes itself felt across
the world, the call for environmental protection is being heard with more
urgency, gaining recognition from society at all levels. Far from being just
the battle cry of environmentalists and governments, corporations are now
taking on the fi ght for the environment.
In Asia, the importance and value of making buildings more sustainable
is increasingly being embraced. According to Mark Clifford, Executive
Director of the Asia Business Council, in a presentation given in Beijing in
June, there’s been a “notable increase” in the attention paid to the energy
effi ciency and sustainability of buildings in at least 11 major East and South
Asian economies in recent years.
These observations were also made by Michelle Boyd, Conference
Director at Cityscape Asia 2008 held recently in Singapore. Asian countries,
led by Japan, Singapore, Hong Kong and India, are introducing green
building ratings along the lines of systems operating in Britain and the
United States and the concept is catching on."
One such rating is the Leadership in Energy and Environmental Design
(LEED) used to benchmark the sustainability of buildings. The accreditation
programme looks at the design, construction and operation of buildings
from their site development, use of materials, water and energy effi ciency to
the quality of the indoor environment.
Signalling the commitment of individual nations, Clifford also noted that
there are at least six economies – including Japan, Singapore, Taiwan, Korea,
Hong Kong, and recently, China – that have initiated government-led green
building programmes, such as Japan’s Top Runner programme, which began
in 1998.
| January 2009
09-13 Green Buildings.indd 9 3/1/09 11:38:24 AM
10
GREEN
BU
ILDIN
GS
Another instance is Singapore’s Green Mark Incentive Scheme. Started
in 2005 by the Building and Construction Authority (BCA), its aim is to
encourage best practices in green building design. More recently, Hong
Kong proposed mandatory building energy effi ciency standards. “All this
adds up to clear evidence of a transformation that will change the practices
of the building industry,” said Clifford.
For all the advances, gaps remain. Taken at an international level,
the overall numbers of green buildings in Asia are still very small and
“piecemeal”, noted Christian Kornevall, Director of the Energy Effi ciency
in Buildings project for the World Business Council for Sustainable
Development (WBCSD).
“Of course it will come; it is a question of time. However, the pressure
will have to come from many different parts,” he told CUBIC, emphasising
that governments, cities, businesses, citizens and NGOs need to work
together to build critical mass.
Clifford also noted that industries in Asia have been slow to take
ownership and play a leading role, leaving the government to initiate
regulation. At the same time, governments have been “too cautious”,
he said, “refl ecting worries that pushing too hard, too fast would cause
economic damage”.
He warned that caution has a price. “Today’s ineffi cient buildings require
more power plants. This will needlessly undermine energy security and
damage the environment and the economy for decades.”
LEADING ASIAN DEVELOPERSBucking the inertia of many industry players, some developers have long made
sustainability a core value. For example, leading Singapore developer City
Developments Limited (CDL) has integrated sustainable features in its projects
since the mid 1990s – one of the fi rst developers in Singapore to do so.
For its long-standing efforts, CDL has obtained the most Platinum and
Gold Plus awards of any private developer in Singapore. According to
Managing Director Kwek Leng Joo, this is a way for CDL to be a responsible
corporate citizen as well as to achieve long-term outcomes. He told
Singapore’s The Business Times (BT): “The fundamental motivation behind
our green practices is our care for the environment and our future.
“Building a green development is more than just placing a couple of eco-
friendly features within a property. It takes concerted and sustained efforts
that cut across the entire development chain and its stakeholders.”
Another developer, Shui On Land – a major property developer
headquartered in Shanghai – is one of those at the forefront of the
green wave in China. Underscoring its commitment, Shui On Land makes
sustainability a core organisational practice. Its Shanghai offi ces are one of
the fi rst LEED-rated interiors in the country.
According to Simon Carter, Colliers International’s Regional Head of
Sustainability in the Asia Pacifi c, the green building movement in China
is very young, but is beginning to unfold very quickly. “We are seeing
multinational and local corporations alike procuring green buildings and the
January 2009 |
09-13 Green Buildings.indd 10 3/1/09 11:38:37 AM
11
GREEN
BU
ILDIN
GS
KIC Plaza, Shanghai
uptake of LEED ratings for new developments is climbing rapidly."
Some signs of the building momentum in China are in pace-setting
projects such as the Dongtan eco-city near Shanghai, the huge zero-
energy Pearl River Tower in Guangzhou and the Tianjin eco-city. And, while
the numbers of green developments are still a small proportion of total
construction activity in China, Carter said it is still “comparable” to many other
Asian economies.
In addition, China is becoming a manufacturing powerhouse for
technologies used in green building and is now one of the world’s biggest
producers and installers of photovoltaic solar panels, Carter noted.
Believing in the long-term commercial and societal merits of sustainability,
Shui On Land is motivated by what it calls “sustainable urbanism” — the
integration of ecologically sound principles into modern living.
“Our key reason for doing this is that it is the right thing to do,” said David
Nieh, General Manager of Business Development (Yangpu Projects). “We
like to see ourselves as community builders, rather than just as building
developers.”
Each development is built on a large scale to achieve critical mass and to
integrate mixed-use elements for a work-live-play model, as well as lots of
pedestrian areas “to get people out of their cars”, he explained.
For example, Xintiandi – a car-free leisure spot in the heart of downtown
Shanghai – integrates shopping, dining and entertainment. The award-
winning development, which features restored shikumen (or stone gate)
houses, underscores Shui On Land’s commitment to the community. “We
adaptively reused historic architecture and cultural resources so that the
community is not disconnected from its heritage,” said Nieh.
Shui On Land’s sustainability strategy also capitalises on its strengths and
know-how. It was one of the fi rst Chinese developers to embrace environmental
protection, issuing a Sustainable Development Policy to all staff in 2006.
A member of the Hong Kong Green Council, Shui On Land was also
one of the founding members of the Hong Kong Green Purchasing Charter,
undertaking a green procurement policy to only engage suppliers and
vendors that use material accredited with the environmental label from the
National Environmental Protection Bureau.
“By building and creating a market for these developments, we are
helping to grow the sector and the demand for it to our advantage,” said
Nieh. Each development is built according to an integrated vertical chain
model that places as much emphasis on the planning and design as on the
building and management of each project. “The building and construction is
only a third of the process – and the savings,” he said.
“The winners in the emerging ‘carbon economy’ will typically be those who prepare early.” Simon Carter, Regional Head of Sustainability, Asia Pacifi c, Colliers International
| January 2009
09-13 Green Buildings.indd 11 3/1/09 11:38:41 AM
Another example is the Wuhan Tiandi project, a registered LEED
Neighbourhood Development (ND) pilot project in Hankou, along the
Yangtze riverfront, comprising residential, offi ce, hotel, retail, F&B and
entertainment facilities.
Employing an intelligent orientation to optimise access to wind and light
while lowering sun exposure, the development also features district-wide
centralised heating and cooling, water source heat pumps, rainwater collection
and recycling facilities, and is poised to attain a LEED-ND Gold rating.
Apart from just building physical structures, Shui On Land also operates
and manages its buildings. “By being energy-saving and water-effi cient, we can
achieve long-term gains in the entire life span of the building,” said Nieh.
This in turn adds to the value of the development. “The idea is to tie
sustainability to a solid economic agenda,” said Nieh. “In the end, we are
a business and need to be commercially viable. We believe our model is
commercially viable and it makes a lot of sense.”
It also helps that Shui On Land is riding on an overall thrust by the central
Chinese government. “The government believes that, if they do not start
embracing sustainability, they will eventually lose out on the gains and
competitive edge that have been made in the past two decades,” said Nieh.
That other Asian powerhouse, India, is also seeing green take root in the
real estate sector. The Indian Green Building Council has recorded that, in
2008, there were some 239 green building projects that made up a total of
about 147 million square feet.
According to an Indian Realty News (IRN) report, the growing environmental
consciousness among MNC tenants is redefi ning the way buildings are being
marketed. Increasingly, requests for proposals include questions about a
building’s green quotient, a fact echoed by K Raheja Associate Vice-President
Shabbir Kanchwala, who told IRN: “Many of our customers are Fortune 500
companies that understand and prefer green buildings.”
GROWING IN THE RIGHT DIRECTIONThere may still be some reticence among developers about wholly
embracing sustainable building, given the higher fi nancial outlay and
effort, but greening offers much greater rewards in the long term, the most
obvious being savings on energy and water.
Based on developers’ feedback, green strategies comprise 2 to 10 per
cent of a project’s total cost. But innovative forethought on passive design
elements such as ventilation, use of materials and building layout can reap
green benefi ts – with little or no cost.
“Developers who approach going green as an opportunity to rethink
how they produce buildings often fi nd that such innovation helps them fi nd
cost savings in other places,” said Carter. “On the other hand, developers
January 2009 | 12
09-13 Green Buildings.indd 12 3/1/09 11:38:43 AM
that try and ‘bolt on’ green features late in a development process or do
not invest in good expertise and experience to help them will often incur
additional costs.”
Given the force of the green wave, ignoring the environmental costs
now could mean losses in the future. For example, the demand for green
buildings in Australia has reached tipping point, so “green is now standard
for all new investment-grade offi ce buildings,” Carter pointed out. “This
means that a non-green building being offered to the market will be less
attractive and most likely will be penalised rent-wise and subsequently in
terms of asset value.”
In addition, there is a premium placed on green buildings for what they
say about their occupants and investors. In a 2007 McKinsey Quarterly
survey of more than 2,100 global executives, 68 per cent felt climate
change was a “somewhat or very important factor” to consider when
managing corporate reputation and brands.
This means that a building is an important part of a responsible
corporation’s branding, explained Carter. “They can confi rm to stakeholders
that a company uses high-performance facilities, is forward-thinking and
innovative, is concerned about the well-being of its employees, understands
changing sentiments in the market about sustainability and wants to make a
measured difference.”
In fact, a recent survey found that, out of 414 companies surveyed
globally, 12 per cent in Asia stated that they were willing to pay premiums of
over 10 per cent for sustainable buildings, compared with just 3 per cent of
the companies surveyed in North America and Europe.
Making sustainability a part of a company’s core principles also has other
benefi ts. For CDL, eco-friendly practices have raised the developer’s public
profi le. Mr Kwek told BT: “Going green equates to value for home buyers,
and enhances our reputation and goodwill.” In terms of fi nancial value, it
also helps – CDL is the only Singapore developer listed on the FTSE4Good
Index series.
And, in the search for talent, even buildings matter. “To an occupant,
green buildings provide healthier, comfortable and more productive work
environments that are soon recognised in markets as signifi cantly more
desirable than non-green ones,” noted Carter. In Australia, for example,
employers are racing to offer these work environments in order to compete
for the best talent.
THE GREEN R.E.VOLUTIONGiven Asia’s fresh entry into the sustainability game, practical challenges
do remain. According to Carter, “(Tenants) often like the general green
proposition, but may not be prepared to adjust their budgetary model to
accommodate spending extra”. This, he said, calls for a lot of education to
help tenants understand the real value proposition behind green buildings.
Support in the form of skills and materials, too, must be available to drive
the growth of green buildings. Engineers, designers and contractors must
have the knowledge and commitment to ensure sustainable practices across
the entire building process.
“Designers need to be able to model the performance of new systems
accurately, engineers need to know how to avoid construction waste and
building managers need to know how to carefully monitor the performance
of buildings to identify any ineffi ciencies,” said Carter. At the same time,
regulations must facilitate the growth of green buildings, such as allowing
for the collection and use of rainwater or the use of renewable energy.
To help drive and support the industry, Colliers has launched a green real
estate guide for the creation of sustainable built environments. Called r.e.Design,
the Green Real Estate Guide for Asia emphasises the need for such buildings so
that the industry can “r.e.design” its approach to real estate practices.
According to Carter, who penned the Green Real Estate Guide,
“r.e.Design is intended to assist owners, developers and occupiers design
strategies that manage the risks and leverage the opportunities associated
with the change in real estate.” This is because, ultimately, “the winners in
the emerging ‘carbon economy’ will typically be those who prepare early.”
Please contact a local Colliers Offi ce if you would like a copy of r.e.Design.
“The idea is to tie sustainability to a solid economic agenda,” said Nieh. “In the end, we are a business and need to be commercially viable. We believe our model is commercially viable and it makes a lot of sense.” David Nieh, General Manager of Business Development (Yangpu District), Shui On Land
From left: Shanghai Xintiandi, Shui On Plaza
GREEN
BU
ILDIN
GS
| January 2009 13
09-13 Green Buildings.indd 13 3/1/09 11:38:55 AM
14 January 2009 |
In the usually staid commercial and retail spaces of Hong Kong, Swire Properties
brings a fresh perspective, a little artistry and flair.
A BEAUTIFUL WAY TO WORK
BY ELIZABETH KERR
14-16 SwireArt.indd 14 3/1/09 11:40:14 AM
ART SCEN
E
A QUICK LOOK INTO HISTORY reminds us that being an artist at one
time was a job like any other, and the world’s great artists (Michelangelo,
Picasso, Delgado) were often commissioned to create paintings and
sculptures for public spaces.
Often those were churches and rulers’ palaces but, later, those
spaces began to include government structures, educational institutions,
pedestrian shopping districts and eventually offi ce complexes.
Some of the greatest single works of art are in public spaces. The
glorious frescos of the Sistine Chapel were a commissioned public piece;
British sculptor Henry Moore is renowned largely for his public works;
and Banksy blurred the distinction between public art and graffi ti with his
irreverent humour.
Enormous canvasses now dot corridors, atriums and lobbies in
commercial buildings all over the world, and works by contemporary artists
can be found in the unlikeliest of locations. Until recently, art has not been
a driving force in commercial design in Asia, but that’s starting to change
and Swire Properties is leading the way.
Swire Properties is the wholly owned real estate subsidiary of Swire Pacifi c,
one of Hong Kong’s oldest trading companies with roots dating back to the
early 1800s, and whose larger holdings also incorporate aviation (Cathay
Pacifi c), marine services (Swire Pacifi c Ship Management), industrial and
agricultural trading (TaiKoo Sugar) and beverage processing (Swire Coca-Cola).
Incorporated in 1972, Swire Properties has built a portfolio that
spans commercial, residential and retail properties, and has developed or
manages some of Hong Kong’s most notable addresses: Island East, Pacifi c
Place and Festival Walk.
It’s no secret that writer James Clavell based one of the “houses” in
Noble House on Swire. Swire currently has interests in the US, the UK,
Singapore, Taiwan, Australia, Canada and China.
DRIVING ARTSwire has long been at the forefront of the public art movement in Hong
Kong. Not only does the group often include art in its spaces and support
independent exhibitions, but also Island East has long been the location for
free outdoor concerts on weekends – Friday Fest – the company founded
Artwalk in 2002 and has sponsored countless theatrical and music events
over the past decade.
There are many that would say art is a waste of time and (particularly
public) money, but Swire disagrees, as would anyone strolling through the
halls of Island East (home of TaiKoo Place) who caught a glimpse of Hong
Kong artist Michael Lau’s stunning Watergarden series. “Swire Properties
consciously connects its properties with the surrounding environment and
visual art serves as one of the bridges for this initiative,” explained Babby
Fung, Head of Marketing at Island East Swire Properties Limited. “Our aim
is to produce an innovative and creative environment for the community
and engage with the people in it via lively and diverse arts programmes and
public art collections that provide enjoyment and fresh cultural experiences.”
Some of those fresh experiences are coming from China, as there is
very “strong demand” for Chinese contemporary art, in the Asia region
and the Western art market, observed Bobby Mohseni, Director of MFA
Asia Ltd, a Hong Kong art consultancy that serves both individual and
corporate clients.
Far from being a “waste” of public money and space, Fung points
out that art doesn’t necessarily belong in museums and galleries and was
never intended to be concealed from public view – Shakespeare was,
after all, a playwright who catered to popular themes. Instead, at a time
of great artistic diversity and shrinking public funds, Fung noted that the
nurture and promotion of art is a corporate social responsibility that more
corporations should take on. “We take the view that art, or public art, is
not something that should be left entirely in the hands of governments.”
The private sector has to be more active and a sustained commitment to
commissioning diverse modern art is important, so that we form an eclectic
collection in which a number of wide-ranging aesthetic, functional and
educational purposes co-exist,” she added. Among some of Swire’s more
notable pieces are fi gurative sculptor David Williams-Ellis’s The Watcher and
glass sculptor Danny Lane’s Shan Shui, both sculptures also at Island East.
The latter makes waiting for a taxi just a little bit more pleasant.
THE VALUES OF BEAUTYDoes art in fact make a noticeable difference to property values? There
are naysayers, but Fung sees value in art. “For a value-creating business
like ours, it is important to ensure that our goods and services are clearly
differentiated and that they do not compete as commodities traded solely
on price,” she said. “We have developed fi rst-class properties in tandem
with discriminating audiences who, through exposure to the arts or art,
are able to recognise excellence and quality, and appreciate the values that
ANTI-CLOCKWISE FROM LEFT: Transcient, Suspense, The Watcher, Watergarden
15 | January 2009
14-16 SwireArt.indd 15 3/1/09 11:40:38 AM
ART SCEN
E
we see and use in our
businesses.”
Fung says
compliments from
tenants, shoppers and
residents are common.
Swire notably often
commissions pieces for
specifi c spaces, giving
its collection a decidedly
monumental scale. “This
is deliberate and something you will rarely encounter in Hong Kong outside
of a museum,” she said. “It stretches the artist and offers them a rare
chance to work on a large scale. For those whose works are still emerging,
our commissioning of a piece can offer validation, as well as an opportunity
for it to be shared with a wider segment of the population,” she added.
While Mohseni is one of those who does not see art contributing to
property values, he does recognise other factors that his corporate clients
– organisations like Swire – would look at as an advantage. “Corporate
clients are looking for works to present a certain corporate image; to provide
cultural and aesthetic input into the community [where] the public artwork is
placed … and make a corporate location aesthetically more pleasing,” he said.
Whether or not that translates into a healthier bottom line on rentals
is debatable, but there are concrete fi nancial elements at play, chiefl y tax
incentives. “In certain countries, the government provides tax incentives
for artworks placed in public spaces by corporations. This gives the
corporations a good reason for donations,” Mohseni added.
Whatever the reason, Swire currently has a collection of over 70
pieces on permanent display that lends itself to a larger public service.
Fung contends that “visual awareness” is not something that is taught in
schools the way written text is, but is key to our collective lifestyles.
“We know this as a property developer. Good visual awareness is vital
to our business, whether in town planning, interior decoration or spatial
design. It affects every aspect of what we are about. Being conscious of
the relevance that art plays in society is one way in which we can educate
and inspire people to see things differently – or dare I say – better.”
Swire leans towards commissioned pieces, but there are plenty of
landlords that will simply buy art and source their fresh experiences
that way. A glance through the window of any gallery in Hong Kong
is testament to the sheer volume of work making its way onto the
international art scene from China.
Contemporary masters such as Zhang Daqian and Fu Baoshi are
renowned for their heady selling prices around the world, and there is a
complementary youth movement that is also making headway. Trying to
pin down one movement or aesthetic is diffi cult. About emerging trends,
Mohseni says, “This is a very broad question… A broad answer is that
many new works in traditional media (painting, drawing, sculpture) and
new media (photography, video, installation) are emerging from China.
“The approach of the Chinese contemporary artist differs from the
Western artist. Therefore, the imagery, content and techniques are new to
the contemporary art scene.” Perfect for Swire’s collection.
But Fung said Swire’s short-term goal is more prosaic, one that feeds both
the bottom line and the demands of corporate responsibility. “In attempting
to foster a critical tradition, we hope to transform Hong Kong audiences from
passive consumers to active participants and arbiters of taste – to help them
overcome insurmountable cultural barriers and deep-seated fears of modern
art,” she said. “If the display of the art pieces in our offi ce premises can help
generate public interest in art and trigger imagination, as well as expression of
feelings, from our perspective that’s already a proven benefi t.”
Danny Lane’s Shan Shui, an outdoor sculpture located at Island East
“As a property developer, good visual awareness is vital to our business, whether in town planning, interior decoration or spatial design, as it affects every aspect of what we are about. “Babby Fung , Head of Marketing Island East Swire Properties Limited
16 January 2009 |
14-16 SwireArt.indd 16 3/1/09 11:40:55 AM
M1nt ad.indd 1 12/5/08 10:38:34 AM
18 January 2009 |
AUDI HAS DONE ITBY GAVIN VERCOE
18-19 Motoring.indd 18 3/1/09 12:36:43 PM
THE FIRST INKLING that Audi may have fi nally
produced a true supercar with the Audi R8
comes when you read the impressive vital stats.
Add to this the fact that Audi owns Lamborghini
and that the Audi R8 uses the same aluminium
Spaceframe construction as the Lamborghini
Gallardo with its double wishbone suspension,
and you begin to understand that this is a
different Audi from any ever before.
Powered by its V8 engine, the R8 can
accelerate to 62mph in just 4.6 seconds –
reaching a top speed of 187mph – and can
roar all the way to an 8250rpm red line. At
the same time, it is also very comfortable. It is
a supercar that you can actually drive around
town. It’s even won high praise from Jeremy
Clarkson of Top Gear fame, who likens the
Audi R8 to the Porsche 911, calling it a car
“you really could live with every day”.
Clarkson notes: “The R8 is spookily
quiet, and that’s just the start of it, it is also
spectacularly comfortable. I don’t mean
comfortable . . . for a sports car. I mean it’s so
comfortable you can run over anything up to a
medium-sized fox and not even notice.”
Apart from the Audi in-car entertainment –
sat nav, a hi-fi from Bang & Olufsen – Clarkson
also waxes lyrical over the engine. “You needn’t
even worry about the engine. It’s not a W16
with eight turbos and plugs that foul themselves
at every set of lights. It doesn’t run on fertiliser
and grated tiger chippings. Instead, it’s the
414bhp 4.2 V8 from the RS 4. I’ve described
this as one of the best engines made today and
a drive in the R8 has not changed my mind. It
does everything, brilliantly.”
High praise indeed from the man that said of
the Porsche Cayman S: “There are many things
I’d rather be doing than driving it, including
waiting for Bernard Manning to come off stage
in a sweaty nightclub and then licking his back
clean – and that telling people you drive a Nissan
Almera is like ‘Telling people at a dinner party
you’ve got the ebola virus and you’re about to
sneeze’.” Ouch.
Above all else, the R8 is a great looking car.
With the experience of the Le Mans-winning
R8 as a basis, although the road version looks
nothing like it, this R8 still has the power to turn
heads, even when it is stationary.
The designers had the task of combining
typical Audi design characteristics of elegance
through simple but strong lines with the need to
force huge volumes of cooling air to the engine
and brakes. The fi nal result is a front end with
the ubiquitous Audi grille fl anked by two large
air intakes, just above the front sill.
The designers didn’t want to ruin sleek lines
with a large, rear spoiler, so an underbody diffuser
was created and a discreet, narrow spoiler pops up
when the car reaches 62mph. It drops down again
below 22mph but can be locked in its extended
position via a button on the central tunnel so
speed-abiding drivers still get to see it.
The cabin is divided into two separate areas.
This can be said of most cars – by necessity,
the driver’s side is different to the passenger’s
- but in the R8 it is more pronounced. For
instance, the driver has a completely different
door handle. This is part of the so-called,
“monoposto”, which creates the feeling of
being in a single-seater cockpit. There is also
plenty of room inside. Even Clarkson – who is
a giant of a man – had these comments; “You
can see out, there’s room for your head, even if
you have truly enormous hair, and there’s space
for briefcases and whatnot on a shelf behind the
seats. It’s big in there; much bigger than you’d
believe”. That sounds like more praise from JC.
Along with these good looks comes some
great new technology to keep this car stuck to
the road. The R8 offers the option of “magnetic
ride”, a system that applies varying currents to
electromagnets on the dampers to change the
viscosity of the fl uid, stiffening the suspension
for certain driving conditions.
Also, when it comes to safety systems, the R8
benefi ts from a lexicon of initials: Version 8 of the
Electronic Stability Control (ESP), which networks
with the ABS, plus EBD, Anti-Slip Regulation (ASR)
and Electronic Differential Lock traction control or
EDL. The ESP has two settings: “standard” allows
a bit of leeway before intervening and “sport” is
for more spirited driving. For track-days, the ESP
and traction control can be de-activated and, of
course, the Quattro system plays a large part in
keeping the car on the road.
The R8 is a brave car – with it, Audi
is positioning itself away from BMW and
Mercedes, and alongside Porsche, Maserati and
Aston Martin. Though Audi insists the R8 will
make money in its own right, its real purpose is
to add that supercar appeal to the entire brand.
From a company that has a bit of a reputation
for making cars better to look at than they are
to drive, the R8 is little short of astonishing.
By combining the aluminum chassis and body
with a 420bhp 4.2 litre V8 motor, Audi hit the
formula of big power in a lightweight package
spot on. And the performance is astounding –
with commentators saying this car is as at home
on the race track as it is on the roads.
Audi anticipates that the majority of R8
customers will be men aged between 40 and
49 years of age. Furthermore, the company
tells us that it is classed as a classic sports car,
rather than a small one, such as the TT. Built in
Germany, largely by hand with the help of a few
robots, the R8 is produced at a rate of 20 per
day (only 3,000 will be made each year, less than
a third of the 911s produced), so you’d better
choose from the six colour combinations, pick
your optional extras and place an order now.
Model Audi R8
Engine 4163cc, eight cylinders
Power 414bhp @ 7800rpm
Torque 317 lb ft @ 4500rpm
Transmission Six-speed manual
Fuel 19.3mpg (combined cycle)
CO2 349g/km
Acceleration 0-62mph: 4.6sec
Top speed 187mph
Mo
torin
g
19 | January 2009
VITAL STATISTICS
18-19 Motoring.indd 19 3/1/09 12:36:50 PM
Tall, taller, tallest – the measure of a building
lies not just in its stature but in its ability to
take innovation to greater heights of style
and form. CUBIC takes a look at some of
the most breathtaking structures in Asia that
are taking to the skies.
TOWERING AMBITIONS
BY SHERALYN TAY
ICON
IC BU
ILDIN
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20 January 2009 |
20-22 Iconic Buildings.indd 20 3/1/09 11:43:56 AM
Left: Taipei 101 Right: Precinct 4 residences
TAIPEI, TAIPEI 101Recalling the resilience of a stalk of bamboo and the grace of a traditional
Chinese pagoda, the Taipei 101 tower rises regally within the Taipei CBD. Like
other spire structures, Taipei 101 also evokes the symbolism of an axis where
the earth and sky meet. And in a way, it does fulfi l this promise – the tower
was the fi rst record-setting skyscraper constructed in the 21st century and is
among the tallest inhabited structures in the world.
Rising on eight canted sections, the tower’s design is an intriguing mix of
Chinese cultural themes that evoke luck, wealth and longevity, and state-of-
the-art technology.
Eight, the number of sections in the tower, represents luck while bamboo
symbolises growth, strength and learning. Even the number of fl oors – 101,
or 100 plus 1 – evokes a sense of renewal and longevity. Curlicued cloud-like
ruyi – curved decorative objects that topped ceremonial Chinese sceptres –
also appear throughout the building adorning entrances and roofs.
Associated with healing, protection and fulfi lment, these heavenly clouds
are a talisman of good fortune in Chinese folklore. The tower’s design is
not all aesthetic – the segmented, gently slanted exterior walls reduce the
effects of wind on the mega-building and specialised construction stabilises it
from high winds. Wired with optical cables for ultra-high-speed connections,
the tower’s double-deck elevators that serve two fl oors at once also hold a
Guinness World Record as the World’s Fastest Passenger Elevators.
www.taipei-101.com.tw
MALAYSIA, PUTRAJAYA, PRECINCT 4These stunning nautical-inspired residences give new meaning to seafront
living. Part of a new residential project along the Putrajaya waterfront,
Precinct 4 is a breathtaking study of light, space and innovative design.
Spanning across almost 5,000 hectares of lush and green landscape,
Putrajaya – the new federal administrative centre of Malaysia located 30km
south of Kuala Lumpur – is a showcase city that literally means “princes’
(putra) success (jaya)”. The name also pays homage to Malaysia’s fi rst Prime
Minister, Tunku Abdul Rahman Putra.
In contrast to the rather imposing structures in the city, the Precinct 4
residential project is a subtly elegant addition. Seeming to fl oat like a fl eet
of graceful sailboats in formation, the residential project was designed
by Studio Nicoletti Associati in collaboration with Malaysian architects
Hijjas Kasturi Associates, which provided the masterplan of Putrajaya. The
sustainable housing design is, according to the Italian architects, intended to
refl ect the spirit of Malaysia, “which is culturally modern, Islamic and tropical
in nature”. The Italian fi rm also incorporated sustainable strategies such as
natural ventilation, green areas, sunshades, terraces and alternative energy
sources into the design. Together, these elements are expected to halve the
carbon footprint of the development.
http://www.hijjaskasturi.com
ICON
IC BU
ILDIN
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21 | January 2009
20-22 Iconic Buildings.indd 21 3/1/09 11:44:05 AM
HONG KONG, INNOVATION TOWERIn true Zaha Hadid vision, the Hong Kong Polytechnic University’s new
campus extension is a gleaming fl uid structure that describes movement and
grace, suggesting all the energy and potential in its students. The building,
which looks a little like a tilting stack of shiny CDs, is Hadid’s fi rst permanent
work in Hong Kong – her fi rst award-winning design for The Peak Club in
Hong Kong was never built. However, the designs that were built – such as
the Vitra fi re station and the Rosenthal Center for Contemporary Art – have
earned Hadid much recognition and respect, making her the fi rst woman to
receive the Pritzker Architecture Prize.
With the same dramatic deconstructionist fl air, Hadid’s take on the
Innovation Tower is a dynamic one. Made of dark glazed glass and steel,
the tower of translucent layers – expected to be completed in 2011 – has
also integrated a spacious column-free public foyer on its podium that can
act as a showcase forum. Clearly forward-looking, and symbolically apt for
a school of design, the Innovation Tower also promises to project a vision of
the future of the Hong Kong Polytechnic University.
www.polyu.edu.hk/ www.zaha-hadid.com
DUBAI, WAVE TOWERLike a delicate sea blossom, the Dubai Wave Tower is yet another amazing
addition to the Dubai skyline – or seafront. Rising like an elegant stem
from the waters of the Dubai waterfront and linked to the shore with an
undulating bridge, the 370-metre tall tower – designed by Spanish architects
A-cero – will be located on the coastline of the Madinat Al Arab District, the
downtown and central business district of Dubai.
Architects Joaquin Torres and Rafael Llamazares envisioned a building
that evoked movement and fl ow. Indeed, the soft curves of the tower and
its bridge appear in concert with the waves of the Gulf Sea. “A-cero’s design
is based on the concept of the intervention between sea and land. The
tower ‘grows’ gently inland to create the forceful sight of a tall building that
mimics the waves of the Gulf Sea,” says Torres.
Built at a cost of some US$170 million, the mixed-use Tower has been
constructed to be opaque in the day but transparent at night, resembling
a lighthouse. With interior sky gardens, silk-screened glass skin, energy-
effi cient technology and a purifi cation plant for the tower’s water needs, this
“seascraper” is as green as its blossom-like design. When ready, the 92-fl oor
building will contain offi ces, commercial malls and high-end residences.
www.a-cero.com/
Left: Innovation Towers Right: Wave Tower
ICON
IC BU
ILDIN
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22 January 2009 |
20-22 Iconic Buildings.indd 22 3/1/09 11:44:11 AM
CUBIC ADS.indd 13 12/12/08 10:32:42 AM
24
Phot
o: C
orbi
s
January 2009 |
24-27 CUBIC Kumho-Vietnam.indd 24 5/1/09 11:33:36 AM
25
LEFT: Vietnam’s construction sector still rises amid tough times
VIETNA
M RISIN
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According to Chang Bok Sang, Chief Executive of Strategic
Management Division at Kumho Industrial Engineering and Construction
(E&C) and Chief Executive of Kumho Asiana Group, the company, with
its affi liates, is also expanding investment on a more global level, and
has a keen eye on Vietnam.
The Group has had a presence in Vietnam since 1993 in the form of
its affi liate, Asiana Airlines. From then until 2007, the Group injected
some US$940 million into the country in areas such as real estate, car
tyres and its airline services.
One of the Group’s most recent and prominent projects is the Kumho
Asiana Plaza, an extensive mixed-use development that is expected to be a
huge boost to the city’s socio-economic profi le, and has been called a symbolic
representation of the economic cooperation between Korea and Vietnam.
“In the past, the group concentrated its investment in China,”
Chang told CUBIC, but, increasingly, Vietnam, has become a strategically
important partner. “Along with strong economic growth and its natural
resources, Vietnam is an attractive country with many advantages such
as its excellent geographical position,” added Chang, who also cited the
close cultural connection between the two countries.
“Kumho E&C has considered Vietnam the centre of the South-east
Asia market and a bridgehead for aggressive investment expansion in
this area,” he said.
HITTING THE RIGHT SPOTSLocated in a prime location along the Le Duan Boulevard, the Kumho
Asiana Plaza – consisting of a 21-storey A Grade offi ce building, a
21-storey international hotel, a 32-storey apartment building, and a
trade centre area – will be fl anked by other high-grade buildings such
as Diamond Plaza, the Sofi tel Hotel, the Prudential building, Saigon
Tower and the Metropolitan. It also lies in close proximity to embassies,
shopping areas and the Notre Dame Cathedral.
The construction sector may be losing its boom around the world, but Korean developer Kumho Asiana has its sights set on providing for the continued growth and expansion in Vietnam, proving that, even amid the gloom elsewhere, Vietnam’s star still shines.
THE KUMHO
BY SHERALYN TAY
“Kumho E&C has considered Vietnam the centre of the South-east Asia market and a bridgehead for aggressive investment expansion.” Chang Bok Sang, Chief Executive, Kumho Asiana Group
SHE may be a late-bloomer among South-east Asia’s economies but, if
there’s one thing Vietnam has going for it, it is the sheer tenacity and
drive of its people.
In just 30 years, the nation has gone from war survivor to bustling
economy. Emerging like a phoenix to take its place in the global fold,
Vietnam joined the World Trade Organisation in 2007 and became a non-
permanent member of the United Nations Security Council in 2008.
Even as dire predictions resounded across the world when fi nancial giants
Lehman Brothers and Merrill Lynch crumbled as a result of the subprime
crisis, Vietnam looks set to hold its own, albeit cautiously.
While the country will not emerge unscathed, Don Lam, Chief Executive
Offi cer at Vinacapital, noted in a letter to investors that the fallout in
Vietnam will be a lot less than in other economies because the Vietnamese
currency is not traded outside the country and the level of foreign
investment in local companies is restricted, buffering the economy from the
effects of global fi nancial turmoil.
In fact, just days after the subprime fallout, foreign and local investors
cited Vietnam as one of the most attractive markets for real estate
developers in Asia during a seminar on developments and opportunities in
the Vietnamese market.
According to an Asia Pulse report, some 70 local and foreign real estate
groups said that the property market in Vietnam still offered “lucrative
opportunities despite volatile prices”.
And the fi gures bear this out. About half of the US$47 billion in Foreign
Direct Investments (FDI) pumped into the country in the fi rst eight months
of 2008 went into property development projects. In Ho Chi Minh City
alone, 90 per cent of its US$7.9 billion in FDI from January to August was
invested in the real estate sector. Property commentators, too, are predicting
promising outlooks for 2009 as the property market correction is seen to
have bottomed out.
A SYMBOL OF COOPERATIONOne foreign company that has staked its commitment to the Vietnam real
estate market is South Korean chaebol, the Kumho Asiana Group. Once
primarily involved in petrochemicals and the manufacture of automobile
tyres and rubber products, the conglomerate has been expanding its
business interests aggressively and now owns a wide range of businesses
across the chemical, automobile, logistics, airline and leisure sectors.
COMMITMENT
| January 2009
24-27 CUBIC Kumho-Vietnam.indd 25 5/1/09 11:33:49 AM
VIETNA
M RISIN
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26 January 2009 |
Set to welcome its fi rst guests in 2009, the 350-room
InterContinental Asiana Saigon and its 250 serviced residences will be
managed by InterContinental Hotels and will be the fi rst luxury hotel to
open in Ho Chi Minh City since the Park Hyatt in 2005.
According to Peter Dinning, Managing Director of Colliers International
in Ho Chi Minh City, the project will also help fi ll two crucial areas in the
sector – those for more rooms and luxury accommodation.
With only about 6,000 star-rated hotel rooms and about 10,000
rooms of other grades to serve an ever increasing number of annual
visitors, occupancy rates in the city remain close to 100 per cent
throughout the year.
In the fi rst three months of 2008 alone, there were some 843,000
foreign visitors, a 20 per cent increase compared to the same period
in 2007. This demand has been refl ected in room rates for star-rated
hotels, which have increased from around US$130 a night in 2006 to
US$250 a night in 2008.
While the new Intercontinental alone may not entirely satiate the
voracious demand for hotel accommodation, it will be able to ride high
on the wave of growth, said Dinning, as it is very likely to be the only
luxury hotel project to come on board in the next fi ve years.
“(The Park Hyatt) was very well received by foreigners and locals,”
noted Dinning. “We feel that the Intercontinental, as a well-known
international brand, will raise the bar in terms of quality and standards,
providing the fi rst true fi ve-star hotel facilities in the city.”
With tourist arrivals expected to hold steady or even grow, the sector
is likely to keep doing well and will continue to fl ourish until more hotel
rooms are completed and brought to the market.
The project’s serviced apartments will also be a welcome addition
to the number of serviced accommodation in the city. At around 3,000
units, the number is small in comparison to other regional cities. “Rents
are therefore maintained at a high rate and occupancy is very strong,”
said Dinning, pointing to the timely entrance of more high-grade
serviced apartments like the InterContinental’s.
As for commercial space, there is a real lack of Grade A offi ces, which
account for only 75,000 sq m from a total stock of 650,000 sq m in
Ho Chi Minh City (population, 9 million), explained Dinning. This is in
comparison with Manila (population, 10 million) which has 5 million sq m
of offi ce space, Jakarta (population, 15 million people) with 4 million sq m
of offi ce space, and Bangkok (population 8 million) which offers some 3.5
million sq m.
This dearth explains why rents in Ho Chi Minh City are double those of
any other regional centres, with occupancy rates of around 95 per cent.
“Even with Kumho’s extra 30,000 sq m of Grade A space coming to the
market during 2009, this is very small compared to the dynamics of the
other regional centres,” said Dinning. “Demand is still very high and will
continue to be high until the market becomes much more mature.”
In another strategic move, the Kumho Asiana Plaza is also looking to
attain fi rst mover advantage in the retail sector. “Retail has really taken
off in Ho Chi Minh City over recent years since the signing of WTO for
Vietnam,” noted Dinning. The very young population – 70 per cent are
under the age of 35 – with much higher levels of education, income and
exposure than the previous generation, has a thirst for foreign goods.
But unlike Bangkok, with its 5 million sq m of air-conditioned retail
space, Ho Chi Minh City has a mere 200,000 sq m. “The market is very
young and demand in this sector is only going to continue to rise as the
urban middle class population grows,” Dinning added.
Ultimately, Kumho’s vision to tap the potential in Ho Chi Minh City
goes far beyond the limits of its physical building. Not only does the
complex provide an integrated mixed-use model, but it is also a benchmark
for things to come.
A PATIENT INVESTMENTThe Kumho Asiana Plaza project has not been without its challenges.
The fi rst overseas project by Kumho E&C after a lengthy hiatus in global
investments in the 1980s, the Asiana Plaza was given the go-ahead in
1996. But the Asian fi nancial crisis stalled the project – twice.
BELOW: Work in progress at the building siteRIGHT: Artist’s rendition of the completed
Kumho Asiana Saigon
24-27 CUBIC Kumho-Vietnam.indd 26 5/1/09 11:33:55 AM
Despite these setbacks, Kumho retained the right to invest in the
project, waiting patiently for market forces to return to their favour. In
October 2006, construction on the complex resumed.
It is not common for a developer to show so much patience, said
Dinning. “The unique way in which Kumho has dedicated itself to the
long term in Vietnam sets it apart from other developers who may just be
interested in building and then selling.
“They have shown everyone in the market how professional their
construction techniques are and have not been afraid to use the most up-to-
date technologies. This has raised the level of expectations of the Vietnamese
population and government alike in terms of how and what to build.”
It has also won the respect of the Vietnamese people. But their
forbearance underscores the faith that Kumho has in the Vietnamese and
their economy. Taking a long-term view of the economy, Chang noted
that the demand for offi ce space, accommodation and apartments would
be an ongoing trend, especially given the infl ux of foreign investors to
Vietnam over time.
“After the reform policy, Vietnam is now being recognised as a country
with a continuously high economic growth rate, attractive resources with
highly skilled people and an abundant labour force,” he said.
Continued demand is also evident in cities such as Ho Chi Minh City,
he noted. “The economic development of Ho Chi Minh City is growing
rapidly and there is a shortage of hotels and offi ce buildings.”
With these prospects, Chang added, “Kumho E&C believes that there
will be a lot of opportunities for carrying out many development projects
such as offi ce buildings, hotels and luxury apartments.” The complex
would also help set the pace for the development of tourism, retail and
leisure in the city, he added.
Already, the construction of the project has generated a big demand
for local services and labour. “The total invested capital for construction
is around US$270 million,” Dinning noted, “which of course provides
substantial business for construction companies.”
After the project is completed, Dinning estimates that its management
staff will be in excess of 200, not including hotel employees. Ultimately,
the entire project will be able to provide continuing jobs for a great
number of local workers, as well as attract foreign tourist dollars.
The boost to the overall economy, too, will be substantial, Dinning
added. “All of the income from the hotel, offi ces and serviced apartments
as well as the retail will attract VAT for the government of around US$5.5
million a year, as well as profi ts tax in the future from the business of
Kumho Asiana Plaza.”
RAISING THE BARKumho E&C is also setting a benchmark in construction techniques and
processes. For example, the project is employing a top-down method
of construction, a technique that enables any high-rise structure and its
basement to be built simultaneously.
By fi rst installing underground foundation walls along the perimeter
of the structure and placing a supportive roof slab across the area to be
excavated, the basement for the building can be dug – with the roof slab
acting as a massive support and a noise barrier.
Above ground, construction can also proceed as the perimeter retaining
walls act as the building’s structural support. “Because the construction of
the basement and the above-ground fl oors can be carried out at the same
time, the construction period can be shortened,” explained Chang.
At the same time, Kumho has taken pains to ensure that the
construction site, from its hoarding design to its surroundings, remains
well-kept. “The trucks are washed to avoid the wheel tracks’ imprint in
the area,” said Chang. “Flower pots are placed around the hoarding in
order to create a different atmosphere from other construction sites and
to attract people’s attention.” It is by setting these standards that Kumho
E&C hopes to position itself as a leading international contractor in
Vietnam and impact the construction culture, he added.
Kumho has also been heavily involved in a range of cultural and
community projects in Vietnam. One of them is the Kumho Asiana-
Vietnam Scholarship and Culture Foundation (KVSC) in Hanoi, which
offers scholarships and study exchange opportunities to bright art college
students from disadvantaged backgrounds.
Taken in its entirety, it is clear that the commitment of Kumho Asiana
is more than just business. “With investment projects, together with such
contributions to social, art and cultural activities, Kumho will play a role
as an enterprise that is responsible for the enhancement of the Vietnam-
Korea relationship,” said Chang.
Going forward, Kumho is invested in the future of the Vietnamese
economy, weathering good times and bad. “Despite the global economic
challenges, developers still view Vietnam as one of the most attractive
real estate markets in Asia.”
“The unique way in which Kumho has dedicated itself to the long term in Vietnam sets it apart from other developers who may just be interested in building and then selling.” Peter Dinning, Managing Director of Colliers International in Ho Chi Minh City
For more information on lease opportunities, please contact Peter Dinning, Managing Director, Colliers International [email protected]
27 | January 2009
24-27 CUBIC Kumho-Vietnam.indd 27 5/1/09 11:34:17 AM
Kumho Asiana Plaza Saigon & Kumho E&C present
Grade A Of�ceComing to Ho Chi Minh District 1September 2009
Exclusive Marketing & Management AgentColliers International Vietnam
Tel: (08) 3827 5665Email: [email protected] [email protected]
Grade A of�ce space set amongst a �ve star hotel, serviced apartments and a trade centre.
@colliers.comKp.Singh
CUBIC ADS.indd 5 12/23/08 12:19:10 PM
CUBIC ADS.indd 9 11/17/08 7:23:20 PM
30
Giving new meaning to the idea of CBD living, one Beijing
development seeks to add value to the prospect of city-living
– and appeal not just to expatriates, but to their families too.
CITY WITHIA CITY – BUILT FOR WORK,
LIFE AND PLAY
January 2009 |
30-33 Landgent.indd 30 3/1/09 11:52:52 AM
31
LIVING LARGE IN THE CBDThe various residential offerings in the Landgent project means residents have a choice of housing options to suit personal and family needs
THE LANDGEN
T PROJECT
The megacity is here to stay – and with it the convergence of working,
living and leisure spaces. Joining the fraternity of prominent urban centres
is Beijing – once one of the four great ancient capitals of China, and now
regarded as the cultural, political and commercial heart of the nation.
The rise of China’s economy, coupled with the awe-inspiring spectacle of
the 2008 Olympics, has driven the emergence of spectacular skyscrapers and
innovative buildings that have, over just a few years, changed the Beijing
skyline drastically.
One such towering structure is the Landgent Centre, a sparkling duo
of towers located at the northeast corner of the “Gold Cross”, about 1km
from the World Trade Bridge and situated on the fringes of the bustling
Beijing CBD.
As far as offi ce towers go, the Landgent Centre may seem like any other.
But beyond the gleaming glass and steel facade, the Landgent Centre is
actually part of a bigger overall project that aims to integrate work, leisure
and living in one compact and functional community. It joins the ilk of similar
“all-in-one” developments such as Jianwai SOHO, Wanda Plaza and Shin
Kong Place – but in a much more comprehensive fashion.
N
“We believe that the Landgent is a project that will grow with Beijing’s development and, in the long term, will be able to meet the city’s growing needs.” Wang Long, General Manager of Landgent Real Estate
| January 2009
30-33 Landgent.indd 31 3/1/09 11:53:08 AM
THE LANDGEN
T PROJECT
32
A DESIGN FOR THE TIMESRather than just meeting the working needs of the CBD worker, the
intention of the Landgent project was to creare a living environment within
the development so that residents can work, live and play all around the
same area, said developer Landgent Real Estate.
According to General Manager, Wang Long, the concept of a “a city
within a city” was aimed at providing elements that would attract expatriate
workers and big employers such as Fortune 500 corporations.
Having multiple amenities also raises the profi le and premium of the
entire development, said Wang. Each element – retail, transport, offi ce space
– can leverage the strengths of the other, adding more value to the project,
he added.
“For example, below the offi ce blocks, we have retail outlets, making
shopping convenient,” Wang told CUBIC. The Landgent City Mall is a
20,000 sq m space located in the podium building of Landgent Centre with
retail, dining and entertainment outlets. Underground, a new subway serves
the transport needs of the workers and residents in the area.
Nearby, residential blocks built by Landgent offer homes for local and
expatriate professionals who work for the multi-national fi rms housed in the
offi ce towers. And the Beijing City International School (BCIS), the largest
international school located in Asia, is also close by.
According to urban geographer Thomas Hahn, the “city within a city”
concept has long been a prevalent theme in China and has had many
variations. From the 60s to the early 90s, such contained communities
formed a good part of Chinese cities. Looking at it from China’s political
roots, there is the work unit model (or danwei), he explained.
“This is a socialist approach to labour equity and social engineering
that manifested itself in walled enclosures of factories, residential housing,
schools, kindergartens, medical care centres, guest houses, etc,” he said,
forming self-contained work units that would see to the needs of their
workers in a holistic fashion.
In a sense, the Landgent project and other new developments that
integrate multiple functions replicate this model. Instead of the strict focus
on “practical” needs – work, shelter, education and medical care – these
modern multi-function developments add an even more important aspect,
said Hahn – that of leisure spaces.
Calling multi-function developments such as the Landgent similar to
“superblocks” – large buildings that integrate a highly diverse range of
functional activities – Hahn noted that one key rationale driving the rise
of these developments is the cost of transportation. “I do not only mean
monetary costs, but time costs. It is a highly effi cient way of engineering
people’s daily time schedule,” he said.
LANDGENT CHATEAU (乐成公馆)These fi ve high-rise residential buildings offer spacious and luxurious
living and, with only 484 suites in all, lots of privacy,
LANDGENT INTERNATIONAL APARTMENTS (乐成国际公寓)These residential blocks in the CBD are home to one of the
biggest expatriate communities in Beijing
January 2009 |
30-33 Landgent.indd 32 3/1/09 11:53:42 AM
For the developers, the strategic vision behind the Landgent project
was to maximise the use of land in the dense Beijing CBD and meet the
needs of a rising population of multi-national companies and their mostly
expatriate workers.
Wang believes that the high demand for land and space in Beijing will
continue to grow and the Landgent will serveto address current and future
concerns. “The potential for how we use the land has yet to be realised,”
said Wang. “We believe that the Landgent is a project that will grow with
Beijing’s development and in the long term, will be able to meet the city’s
growing needs.”
THE TALENT DRIVEIn the past few years, many have been attracted to China for its unrivalled
opportunities and the rate of growth. Before the global fi nancial slowdown
in 2008, China’s and its key cities enjoyed rosy growth. In Beijing, the past
fi ve years have seen great economic strides. In 2001, Beijing’s per capita
GDP stood at US$3,200 but, by 2007, that fi gure had more than doubled to
US$7,500. With the success of the Olympics, Beijing expects to see per capita
GDP reach US$8,000 by the end of 2008. Even with the global slowdown,
China still expects to post a postive – if moderated – economic numbers.
The allure of cities such as Beijing is refl ected in the popularity entrance
of large multi-national organisations and a diverse workforce, leading to
an immense population boom. The number of Beijing residents grew from
about 14 million in 2000 to 17 million in 2008. Currently, Beijing is also
home to some 1.1 million foreigners.
According to Mr Tim Hird, Managing Director of recruitment consultancy
Robert Half Singapore, Beijing continues to be sought after by job-seekers. “We
are receiving an increasing number of enquiries from overseas candidates about
opportunities in mainland China,” he told CUBIC, driven by the slowdown of
banking sectors in other markets such as the UK and the US. “Many employees are
seeking better job security in more stable fi nancial environments.”
But expatriates, particularly those with families, usually have concerns about
cultural integration challenges when moving to developing countries, said Hird.
“Developments such as the Landgent in Beijing will allay many of
those fears and will provide a ‘comfortable and familiar zone’ for overseas
migrants to adjust to their new home.”
Ultimately, the decision to relocate is not always job-related, he added,
as housing conditions, educational infrastructure, lifestyle and cost of living
are some of the other key components that act as a “tipping point” for
professionals to choose one location over another. “Employers will respond
well to locations that make it easier for them to ‘package’ the destination to
interested employees,” he said, “(as) relocating staff is a time-consuming and
costly exercise so you want to be sure you can ensure a smooth transition.”
The Landgent Group has a keen understanding of the needs of the expat
community, said Wang.
“As one of our target groups is expatriates, many of the features of the
development have been designed to meet their needs, especially in terms
of education. When foreigners come to Beijing to work, education for their
children is a perennial concern, and is a key factor in attracting foreign
workers and investment. With the school, it helps to bridge a crucial gap.”
In 2004, the Landgent Group invested some RMB500 million to build the
BCIS, which can accommodate some 1,600 students from kindergarten to grade
12. Right now, almost all the students – some 95 per cent – are from overseas.
With the ability to provide a completely new location option for companies
with high consideration for “employee convenience”, the Landgent project
has an upper hand in attracting high-value corporations, noted Jim Serstad,
Director of Colliers Commercial Agency Department in Beijing.
“In a market like Beijing where the demand for talented employees is
very competitive, companies must provide a higher level of amenities to
their employees, including transportation, dining, residences, shopping and
recreation,” said Serstad, “Our experience is that our clients who visit Landgent
discover a new option that they previously would not have thought possible.”
And while Beijing has room for more international mixed-use
developments like Landgent, it still has fi rst mover advantage, he added.
“There is a critical mass that needs to be reached and Landgent has already
achieved that. It will be hard for others to duplicate.”
LANDGENT HOLI APARTMENT (乐成豪丽公寓 )Serving both corporate and residential needs, these holiday apartments combine the comfort of a home with the impeccable service of a hotel
“Developments such as the Landgent in Beijing will allay many fears about relocation and willprovide a ‘comfortable and familiar zone’ for overseas migrants to adjust to their new home.” Tim Hird, Managing Director of Robert Half Singapore
33 | January 2009
For more information on Landgents Developements, please contact Amanda Gao, Managing Director, Colliers International [email protected]
30-33 Landgent.indd 33 3/1/09 11:54:08 AM
34 January 2009 |
34-37 India Realty.indd 34 3/1/09 11:55:14 AM
BY NAMRATA KOHLI
35
Mr Magar – against the backdrop of Magarpatta Township – believes there’s a silver lining in the Indian real estate sector despite the global recession
Certainly, the global real estate sector will
be hard hit in a global slowdown, but not
everyone in the Indian real estate sector is
getting cold feet. In fact, market observers
see opportunities even amid the global credit
crunch and Indian slowdown.
IND
IAN
REALTY
RIDING HIGH on the back of a booming
economy, favourable demographics and
liberalised Foreign Direct Investment (FDI), the
real estate market in India has enjoyed heady
times thanks to the red-hot wave of demand
and investment. But, like all good things, the
end came too soon for the sizzling market.
When the fi rst warning signs appeared in the
middle of 2008, an HSBC report predicted that
house prices would fall between 25 and 30 per
cent in most Indian cities. At the same time,
other signs portended the doom that all too
predictably follows the euphoria of boom times.
In a similar pattern to the United States,
the Indian real estate market saw easy home
fi nancing with slashed interest rates between
2003 and 2007 as banks entered a race to win
more customers. With cheap borrowing came
heightened speculative investments, artifi cial
escalation of housing prices and an oversupply
of housing in some segments.
Add to this soaring infl ation, surging oil
prices and increasing construction costs – it all
signalled an unsustainable boom headed for
trouble. And then Wall Street’s fi nancial tsunami
hit and the global effect was immediate, leaving
markets rattled. And even India was not spared.
“We have a lot of genuine buyers in India who need homes and the stable market will weed out speculators, instill more confi dence and entice more genuine buyers to buy. This will help sustain the market in the next few years.” Mr Satish Magar, Chairman & Managing Director of Magarpatta Township Development and Construction Company
| January 2009
34-37 India Realty.indd 35 3/1/09 11:55:26 AM
Destin
atio
ns
36
“It’s a place that speaks to my spirit. From there comes the willingness and commitment to the island.”
THE SILVER LININGHowever, there is good news. Among the
optimists is Bharti Gupta Ramola, transactions
leader at PricewaterhouseCoopers India, who
believes that the slowdown in real estate will do
“unforeseen good”. She noted that the country
was in the fortunate position of not having a
“prime” crisis situation. “In home loans, there
will be higher prepayments and higher defaults
but I don’t expect this to take the proportions
of a crisis,” she said. “The reason is that, in a
large percentage of cases, home buyers still put
in a large proportion of equity in homes – much
higher than in developed economies – and our
mortgage market is very different in terms of
debtor liabilities.”
Another factor that has cushioned the Indian
economy is its banking norms. “We are relatively
conservative in the way we determine loan
eligibility in terms of the income of the borrower,
as well as the loan to value (LTV) of the property
ratio,“ says Balaji Raghavan, Business Head
of Home Loans at ICICI, India’s top fi nancial
institution, which has a big home loan division.
Satish Magar, Chairman and Managing
Director of Magarpatta Township Development
and Construction Company Limited, is taking
the impending slowdown in his stride. “Growth
in 2007 was very fast and paced at about 10 per
cent, but in 2008 it moderated somewhat to 7.5
to 8 per cent. I expect to see such growth for
the next few years.”
BANKING ON THE TIERSMagar believes there will be continued – if
moderate – growth driven in part by the bright
spots in the Indian market, the Tier II and III
cities located in the suburban and peripheral
areas of metros.
“The residential sector will be the primary
driver of real estate in Tier II and III cities in
2009, with the demand likely to come from the
under-served resident population of the city,”
said Amol Shimpi, National Director of Colliers
International.
As prices and interest rates zoom upwards
in Tier I cities, the appeal of these Tier II and
III cities is growing, Magar noted. The boon
for developers is that, with the growth of
communities and townships in these areas,
other opportunities such as retail and leisure will
follow. “Generally, the growth of each sector –
residential, retail and leisure is interdependent,”
said Magar. “A lot of malls and organised retail
spaces are coming up. For example, Walmart
and Tesco are moving in a big way across cities.
While organised retail is very new to India and
many people are not used to it, it is doing quite
well and is attracting quite a lot of interest and
development.”
And, with the growth of Tier II and Tier
III towns comes the need for supportive
infrastructure. “The biggest opportunity is in
building infrastructure, such as roads, metro
railways and highways, as the government
strives to improve the conditions of the cities
and attract more investment, and support
growing industries,” said Magar.
“In turn, these roads and highways that
connect these cities offer a lot of opportunities
for the growth of support communities,
residential developments, stop-over towns
that will serve these Tier II and III cities, and
the commuters who travel through.” As more
people in smaller towns aspire to a better
quality of living in new age modern homes
complete with amenities, this rise of the middle
class will increasingly drive the future of real
estate in India.
January 2009 |
34-37 India Realty.indd 36 3/1/09 11:55:30 AM
IND
IA
37
RESIDENTIAL HOPESThe current slowdown, ironically, is also reason
for aspiring homeowners to have hope. In the
past ten years, economic growth, the rise of the
real estate and construction sector and interest
rates as low as 7.5 per cent fuelled property
buying, resulting in more young buyers – the
average age of a new homeowner was 32
compared with 45 a decade ago.
Economic prosperity also brought a
change of mindset among the young working
population – from “save and buy” to “buy
and repay”. This led to a rise in speculative
investors, pushing the end user out. Instead of
meeting the shortfall of homes, the environment
became a parallel stock exchange in which
huge apartments were mere commodities sold
at exorbitant rates to those who already had
houses to live in.
“In the past couple of years, there was so much
happening that was against the natural demand,”
noted Magar. “We saw a lot of investors and
speculators in the market, and this was partly
driving the phenomenal growth. But, in the long
term, this is not sustainable because we cannot
continue to have a purely investor-driven market,
but a market that is acceptable to people.”
However, with the crunch, developers are
starting to focus again on affordable housing
rather than high-end developments, enabling
the middle and lower middle classes to fi nally
aspire to own their own private homes, said
Ramola. Ramani Shastri of Sterling Developers,
who also noted, “Earlier, a customer was able to
buy a 50 lakh (USD100,400) unit at 8.5 per cent
interest rate. (But) with an increase in interest
rates, he is able to buy only a 35 to 40 lakh
(USD70,280 to USD80,320) unit now. Because
of this, developers who were focusing on the
top end and niche segment will be forced to
shift their attention to the mid market.”
Magar welcomes this new direction. “We
have a lot of genuine buyers in India who need
homes and the stable market will weed out
speculators, instil more confi dence and entice
more genuine buyers to buy. This will help
sustain the market in the next few years.”
A spokesperson from national developer
Parsvnath – a group with residential projects
across smaller cities – says that there is a change of
attitude. People are moving from renting a house
in metros to owning a house in Tier II and III towns,
as good quality homes are now affordable.
For instance, in Delhi’s peripheral areas
such as Kundli, Sonepat or Panipat, real estate
developers are coming up with projects in a
price range of 15 to 30 lakhs (USD30,122 to
USD60,245). According to Magar, cities such as
Pune, Madpur, Jaipur and Hyderabad are also
seeing sustained growth, in part driven by the IT
sector. “The more IT space you create, the more
residential space is needed,” he explained.
Many people living in metros are also
investing in a second home, a vacation home, a
retirement nest or a rental-generating property.
No longer do development authority fl ats fi t the
bill of today’s home buyer – “lifestyle homes”
are the new must-have. Era Group COO Deepak
Aggarwal noted that the increase in small
nuclear families, change in lifestyle, higher
disposable income and purchasing power of
people coupled with a high standard of living
has seen a paradigm shift in people’s aspirations.
“Today, there are many takers for our
township projects where we offer schools,
entertainment avenues, offi ces within close
proximity and ensure the security of the
residents in Tier II & Tier III towns,” said
Aggarwal. Magarpatta City is one major
development set to tap this demand for
suburban living. Located 7km from the Pune
Railway station and 5km from the Pune CBD,
the sprawling 400-acre development is the
fi rst planned township of its kind in India,
said Magar. Employing an integrated all-in-
one living concept, the city took a “holistic
approach” to cover every aspect of living well
for a rising middle class, he said. “From roads to
education, workplaces, amenities, security and
community development, we took all these into
consideration when planning the city.”
Raj Arora, a 32-year-old home buyer, said,
“I am more than willing to pay a premium
for this kind of accommodation, which offers
features of lifestyle living such as a gym and
swimming pool. It should be a small unit that is
manageable and that gives a sense of pride in
owning a home and not a compromise in the
name of a small apartment.”
Magarpatta Township
| January 2009
For more information on the India Market, please contact Joe Verghese, Managing Director, Colliers International Mumbai.
34-37 India Realty.indd 37 3/1/09 11:55:40 AM
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40 January 2009 |
ADVENTURES IN
SPACENo walls; No cells; No gridlock – life’s new at The Keraton
BY LIM SAY LIANG
40-43 Keraton.indd 40 5/1/09 11:43:23 AM
41
LEFT: Artist’s impression of possible living space overlooking Jakarta’s CBDBELOW: Artist’s rendering of Plaza Indonesia Complex
LUXU
RY LIVING
AS EXTENSION PLANS GO, the ones for Plaza Indonesia Realty (PIR) –
one of Indonesia’s premier mall developers – are whoppers, with 220,000 sq
m of chic space in the middle of Jakarta’s CBD that includes an expansion of
the mall; an offi ce tower (The Plaza); and, at the heart of what’s been called
one of Asia’s most prestigious mixed-use developments, The Keraton.
Back in the mid-‘90s, the luxury residence would have been the stuff of
pipe dreams. The economic crisis put PIR’s grandiose plan on the backburner
and construction came to a standstill in 1998. Those who had money down
for a unit at The Keraton were refunded.
“We are very conservative,” said Dinna Muskita, General Manager of
The Keraton and The Plaza. “Other developers, high-risk takers, will forge
ahead,” she said, “but we wait.” For seven years, all PIR had to show for
its residential development were foundation works. The project seemed to
languish, but, even during the lull, the honchos at PIR huddled and decided
to ride out the storm, but not passively.
The site became a way station as former buyers were consulted; they
wanted larger units and the freedom to design their homes. “It’s our fi rst
residential tower. We have to have the best – the best trends and lifestyle
for high society,” said Muskita. But there were no fi tting projects on which
to model their vision, she recalled. This meant coming up with something
completely new.
Being fi rst with the concept meant neither contractors nor consultants
had experience with this approach, said Brian Laurence, Project Manager
for the Plaza Indonesia Extension Project. Heads down, PIR got to work:
layouts plans were scrapped, the number of units halved and apartment
sizes doubled. Designs were updated in 2004 and construction began again
in 2006.
| January 2009
40-43 Keraton.indd 41 5/1/09 11:43:30 AM
LUXU
RY LIVING
42
THE ESSENCE OF NOTHINGA strange irony presents itself when one walks into any of the 68
“completed” Keraton penthouses, located on Jalan M.H. Thamrin – the
most expensive real estate in Central Jakarta. Inside each Grand Palace
penthouse, with its USD4,000 per sq m price tag, is 500 sq m of bare
screed under a 4-metre-high ceiling and nothing else. No bedrooms. No
toilets. No kitchen.
“Buyers are limited only by their own imagination,” said Muskita.
According to Ferry Salanto, Research Manager at Colliers International,
it took a more personal approach to sell The Keraton. Former buyers were
invited back. Prospective occupants were whispered-in. And all were
screened by the shareholders of PIR. “It’s like head-hunting,” Muskita
explained. “They have to be in the business community, move in the same
circles and value their privacy,” she said as the subset shrank. “They are
the rich-rich ... They are the members of high-high society.”
The Keraton’s concept was presented to dinner guests. They were
shown the panoramic view of the Jakarta skyline from every penthouse in
the 48-storey building. No advertisements were placed. No showrooms
were put up. They would be “misleading”, Muskita deadpanned.
“Such developments are usually targeted at a specifi c group of affl uent
people,” noted Ivan Hoh, Executive Director of PropNex International.
“I believe PIR was less concerned with what unit mix to build than how
unique and creative they could be. They wanted to create something that
is ‘the talk of the town’.”It was certainly that. As of October, 70 per cent
of the units at The Keraton have been sold. Pretty impressive for nothing.
Calling Keraton buyers “discerning”, Victor Lee, lecturer at the department
of Architecture at the National University of Singapore (NUS), said that it will
take a unique mindset to see potential in these “non-cellularised” residences.
The Keraton buyers are not the type to simply put up walls to divide the
“shell” into as many rooms as possible, he said. “They appreciate how the
immediate home environment is a refl ection of a lifestyle, how open-plan
spaces and other means of defi ning ‘rooms’ could work.”
By forgoing tastes and penchants, buyers are limited by their own
imagination. One bedroom? Four? Hang up a Jackson Pollock? It’s
completely up to them. Though they bear the additional costs of fi tting out
their shells, it’s not uppermost on their minds.
“Most of them are quite excited because it will be the fi rst time they
can design their own homes,” said Muskita. “They have the freedom to do
anything they want.”
“Most people who buy expensive property tear out previous owners’
preferences anyway,” said Mark Knowles, Executive Blogger for online portal
Luxury Property. “The affl uent tend to have specifi c ideas. They will not
settle for anything less – or different.”
“Our goals,” said Laurence, “were to ensure that each apartment has
infi nite possibilities in terms of layout, is self-contained in terms of services
… and has access to the highest quality of service.” For noise-insulation,
there are sandwich fl oors. For privacy, zoned elevators. For commuting
Jakarta’s gridlock, an adjacent helipad. At the pool deck on the 6th fl oor,
Keraton residents will also have private access to Grand Hyatt Jakarta.
SERVICE STANDARDSPIR, which also undertook the development of the fi ve-star hotel, reached an
agreement with its former charge to manage The Keraton’s 68 penthouses and
Site plan of Plaza Indonesia Complex
January 2009 |
40-43 Keraton.indd 42 5/1/09 11:44:07 AM
43
20 serviced apartments. A personal butler, in-room spa treatments and round-
the-clock room service from the Grand Hyatt are some perks enjoyed by a
charmed circle of apartments in the world – and the Sultan of Brunei’s palace.
“Our residents are busy people,” said Muskita. “They don’t have to go
anywhere.” For laundry runs, catering a swanky luncheon, booking a private
jet, “just call the concierge”.
The “Hyatt input”, said Knowles, makes all the difference. The residents
at The Keraton can expect a higher quality of life, he said. The staff at Grand
Hyatt Jakarta will pay meticulous attention to what they want and provide it.
“They quickly get to know their guests and anticipate their needs.”
For Patrick Grove, Executive Chairman of the iProperty.com group,
the location sells itself. “Within walking distance, you have a world-class
offi ce tower, a world-class shopping centre and a world-class hotel. This
defi nitely places the property at a premium, particularly in Jakarta where
people can spend a lot of time stuck in traffi c.”
It might be PIR’s fi rst venture into residential development but its track
record speaks volumes, said Colliers’ Salanto, as Plaza Indonesia is a
“very established upper-segment property and has proved this for years”.
The shopping mall hosts some of the biggest fashion houses in the
world and their fl agship stores in Indonesia. Think Gucci, Lanvin, Prada.
“It’s all there, it’s on their doorstep,” said Muskita. They can even attend
regularly held fashion shows. Cartier, Hermes, Yves Saint Laurent. “It’s the
same target market.”
Let’s not forget “eX”. Billed as “a unique fusion of art, retail and
recreation”, Plaza Indonesia Entertainment X’nter will capture the market
segments that fall through the cracks. “It will complement a more mature
ambience in Plaza Indonesia with its focus on younger wealthy shoppers,”
said Salanto, “while maintaining the upper-class atmosphere.” “Everything,”
said Muskita, “has to complement everything.”
TAPPING THE LUXE VEINIf PIR didn’t set a benchmark with Grand Hyatt Jakarta and Plaza Indonesia
Shopping Centre (which it did with numerous awards), it has now. “The
developments of the past are not as sustainable; they run the risk of
overbuilding,” said Knowles.
“People are starting to realise that it makes more sense to consider and
meet the needs of the community. Plaza Indonesia Complex is defi nitely one
of Asia’s most prestigious mixed-use developments. It is comparable with
huge projects in Shanghai, Hong Kong and Tokyo.”
Not all is on the up-and-up in Jakarta. Colliers’ research shows that the
supply of strata-titled apartments outstrips demand. “In the second quarter
of 2008, the overall take-up rate of Jakarta’s apartments for strata titles
decreased by 1.1 per cent to 72.3 per cent, leaving approximately 16,800
units unsold.” But Muskita isn’t fazed.
She admits there is no guarantee that the remaining penthouses will
be sold by the projected move-in date next July. But the former Managing
Director of Colliers International questions the relevance of the report,
pointing at the spectrum of strata titles covered. “We believe there is still a
market there for high-end residences like The Keraton,” she said.
The housing surplus may be a problem, but there will always be a
demand for up-market apartments, agreed Knowles. But he does have a
quibble with PIR’s use of the word penthouse. “By defi nition, a penthouse is
on the top fl oor, solely on the top fl oor.”
But the quintessence of a penthouse is exclusivity – something that no
one else has, explained Muskita. “It is generally the one differentiated by
size, by high ceilings, by layout, by exclusiveness. Our penthouses meet
these criteria.”
Penthouse isn’t the only byword invigorated by The Keraton. “I would
think the notion of ‘luxury’ needs to be redefi ned”, said NUS’ Lee, “not
so much material luxury but rather, a kind of ‘spatial’ luxury – quality,
uninterrupted spaces with spatial character – able to embody the functional
needs of the home buyer.”
An empty shell is a boon for The Keraton residents, said design
psychologist Dr Toby Israel. “It gives them the chance to participate in the
creation of a home that fi ts their unique emotions, wants and needs. When
we don’t have a blank canvas, we have architects, developers and marketers
between us and our sense of home,” he said.
“The materials, colour schemes and space layouts they choose may be fi ne
in terms of selling the ‘home’ product, but it may not be individualised to a
person’s sense of home. The story of your house is like the story of your life.”
Artist’s impression of a possible “bedroom”
“(The Keraton buyers) are quite excited because it will be the fi rst time they can design their own homes. They have the freedom to do anything they want.” Dinna Muskita, General Manager, The Keraton
| January 2009
For more information, please contact Mike Broomell, Managing Director, Colliers International [email protected]
40-43 Keraton.indd 43 5/1/09 11:44:12 AM
44
North facade of the UED BIZHUB
UED
BIZH
UB
January 2009 |
HUBBING UNIT
44-47 CUBIC UEBizHub.indd 44 5/1/09 11:35:34 AM
BY SHERALYN TAY
45
United Engineers Developments plans to turn the grey urban
“wilderness” of the Changi Business Park in Singapore into a
vibrant and interconnected mixed-use super-hub where work,
play and leisure converge.
UED
BIZH
UB
THE BEATING HEART of any economy is in
its fi nancial district, but the backbone is in its
industrial and business parks – where the engines
of the economy churn away from the glitzier
Central Business District areas. But far from the
hustle of city life, business parks have a bleak –
and sometimes undeserving – reputation of
being faceless.
However, more and more developers are
seeking to overturn this image of bland effi ciency
and add more to the bare-bones functionality of
business parks.
Situated in the east of Singapore, the
Changi Business Park is a strategically located
site by JTC Corporation (JTC) – the lead agency
in the planning, promotion and development
of industrial space in Singapore. Comprising a
diverse mix of knowledge-intensive businesses,
from technology, data and software enterprises
to fi nance and R&D, Changi Business Park is one
of the key industrial and business park spaces in
the east of the city state.
ADDING BUZZ TO BUSINESSA unique mixed-use development will bring a
new vibrancy to the Changi Business Park. This
project by United Engineers Developments (UED)
will enhance the area’s allure as a prime business
location. UED is an engineering, construction
and integrated facility management company
with a strong focus on end-to-end capabilities in
design, building, management and operations in
property and environmental-related projects.
The UED BIZHUB will comprise a business
centre, an IT training hub featuring exhibition
and convention halls, an auditorium and seminar
rooms. More signifi cantly, it will also include
a 300-room business hotel – the fi rst business
hotel and serviced apartments in the area – as
well as offi ce and retail space. It also has the
distinct advantage of being located just across
the road from the Singapore Expo -- the largest
convention and exhibition venue in Singapore –
and parallel to the existing train line.
| January 2009
TTED
44-47 CUBIC UEBizHub.indd 45 5/1/09 11:35:41 AM
46
According to UED’s Managing Director, David
Liew, this integrated development is part of JTC’s
master plan to build Changi Business Park into an
active urban area with two separate hubs linked by
an attractive green garden environment complete
with kiosks, sculptures and performing venues. The
idea is to inject recreation, retail and relaxation into
an otherwise straitlaced business community.
Since its launch in 1997, the Changi Business
Park has been served sporadically with various
amenities and facilities, but these came and went
as the smallish population and catchment could
not sustain these businesses and services. But
what a difference a few years make. The area is
now in great need of more services, such as retail
and leisure as the business community expands.
According to UED, the project enables the
company to further tap into its accumulated
years of experience in engineering and
construction, in particular in the niche area
of built-to-suit real estate services, an area
required by many multi-national corporations
looking for asset light alternatives for their
operations.
The vision for Changi Business Park is for it to
be developed with the principle of integrated living
showcased by the JTC development, One -North,
Singapore’s high tech and R&D science hub. “The
Changi Business Park will comprise a fusion of
various mulit-faceted activities to cater to the
needs of the modern business community,” said
Liew.
Like One-North, the UED BIZHUB is being
developed to be an integrated mixed-use
development of retail, apartment, offi ces and
hotels with state-of-the-art aesthetic design
and sustainability.
The gleaming glass and steel faceted
structures integrate several environmentally sound
strategies and technologies. A district cooling
system has been integrated into the development
to reduce the use of electricity for cooling
purposes. Green features such as the use of
plants on vertical green walls to minimise heating,
and light shelves to reduce heat have also been
planned into the design.
THE NEW CBDThe move to enhance this area is timely said
UED. “The new Changi Business Park in recent
years has grown at an incredible rate,” said
Liew, “especially with the recent real estate
boom and the tremendous speed at which
CBD rental prices are escalating, causing many
fi nancial-related back-of-house functions to
take a great interest in relocating to the Changi
Business Park. With this increase of interest and
the site’s close proximity to the intersection of
two MRT lines, UED sees tremendous potential
in this site.” With its existing infrastructure,
thoroughfares and links to key transportation
nodes, the Changi Business Park site has the
ability to consolidate accommodation, F&B,
retail and MICE activities, added Liew, calling the
development a “CBD away from the CBD”.
Given the supply crunch on offi ce space that
Artist’s impression of an overview of the completed UED BIZHUB
January 2009 |
UED
BIZH
UB
44-47 CUBIC UEBizHub.indd 46 5/1/09 11:35:45 AM
Artist’s impression of the completed UED BIZHUB
“With the recent real estate boom and the tremendous speed at which CBD rental prices are escalating, many fi nance-related back-of-house functions have taken a great interest in relocating to the Changi Business Park. With this increased interest and the site’s close proximity to the intersection of two MRT lines, UED sees tremendous potential in this site.” David Liew, UED Managing Director
A bird’s-eye view of the development
has seen rental prices skyrocket in the prime
commercial areas of the Shenton Way and Raffl es
Place, UED thinks the UED BIZHUB will be an
ideal and conducive location for companies or
business units that do not require the prestige
and prominence of prime commercial areas.
One key target market will be end-users in
the IT and fi nancial sectors, particularly back-of-
house operations and information storage. “We
will also be targeting overseas multi-national
corporations who are looking for large seamless
fl oor plates and with business park specifi c
technical needs and requirements,” said Liew.
The integrated facilities mean that business
travellers benefi t too. The short-term business
traveller in town for a whirlwind industry
seminar can fl y in, arrive at his or her hotel in
less than 15 minutes, attend a seminar, eat,
rest and network all in the same area before
fl ying back home. And this does not need to be
done in the pricier CBD area – saving costs for
exhibition organisers and their partners.
THE MICE PLAYGROUNDThe UED BIZHUB will also be prime for what
industry experts believe will be a steady – if
moderated – growth in the Meetings, Incentive
Travel, Conventions and Exhibitions (MICE)
arena. According to a Straits Times (ST) report,
things are still looking up for the trade show and
conventions business in Singapore, despite the
economic downturn. About 18 exhibitions and
conferences have been confi rmed in 2009 alone.
According to Michael Tay, Director
of Operations, at Meetings Professionals
International Asia Pacifi c, the UED BIZHUB will
plug an important gap in the area. Its excellent
location near the airport, hotel, shopping
and entertainment facilities bring “life and
energy” to the area and create excitement, he
said. At the same time, being surrounded by
MNCs and important industry networks will
make the Changi Business Park a compelling
MICE location.
Calling the vision of the new CBP
“excellent”, Tay added, “I think it is all heading
in the right direction to take advantage of the
expo halls and offi ces there.”
UED
BIZH
UB
47 | January 2009
For more information on UED BIZHUB, please contact Dennis Yeo, Managing Director, Colliers International Singapore.
44-47 CUBIC UEBizHub.indd 47 5/1/09 11:35:50 AM
48 November 2008 |
GADGETS- for the person who hhas everythinggg
Gad
gets
DIGITAL WATERPROOF CAMERATechnology and nature aren't exactly best friends: expensive electronics and outdoor watersports are not the most compatible of elements. But what if you want to capture the action digitally while snorkeling, snowboarding or mountain biking? The Hero 3 Digital Wrist Camera "makes nice" with the great outdoors by sporting a durable exoskeleton that pretty much goes anywhere. Strap the Hero 3 to your wrist and snap some sweet shots while skiing, biking or diving up to 100 feet. This mini camera locks fl at to your wrist for storage then pivots up to capture crisp digital photos or 30 fps movies. A 3 Megapixel, Internal Memory – 16MB expandable to 2GB with SD card, Video – 640 x 480 with sound (54 mins from 2GB SD Card)
Price: USD 119www.thinkgeek.com
AK ICE TRAYHave the most “gangsta” drinks at your
next party, Cool that killer drink with a round of these ice cubes shaped like
AK-47 bullets. Each AK Ice Tray magazine produces 12 bullet shaped pieces. Got
an “acquaintance” coming around for a drink? Put a few AK ice bullet rounds in
and maybe then he will take you seriously!
Price: USD 15www.uncrate.com
DRESS FOR DINNER NAPKINS Protect your best tee and look good as you stuff your face with the help of a Dress For Dinner Napkin. These paper napkins come in four styles, letting you pick between stripes, solid or polka dots, depending on your mood or potential stains.
Price: USD 6 (20-pack)www.spoonsisters.com
AUTHENTIC GUINNESS® HOME PUBThere are plenty of reasons to raise a pint to the Irish. One of the greatest occurred in 1759 when young Arthur Guinness founded a brewery at St. James's Gate, crafted a hearty, distinctive stout, and won a place in our hearts forever. Celebrate the 250th anniversary of that fi rst delicious keg every day at home with your own Guinness Pub. This fully functional, traditional Irish pub can be built in your home. It is crafted from historic Irish architectural elements and authentic Guinness artifacts. The price tag comes with fresh Guinness Stout for your pub for an entire year! Currently this little bit of paradise will set you back a cool quarter million.
Price: USD 250,000www.neimanmarcus.com
THE TITANIUM SPORKEvery mythic hero normally has an equally mythic weapon. Zeus had his thunderbolts. Thor had his hammer and King Kong had his bananas … you get the idea. It's time for you to join the ranks of the heroes as you wield your own legendary weapon in your battle against a very powerful foe: hunger. Herald the Titanium Spork, the utensil of heroes! Titanium is known for its great strength, corrosion resistance, and light weight – which makes this a valuable asset around feeding time. Imagine how much more you could shovel in at your local buffet if you didn't have to strain yourself using both a fork and spoon. Your food consumption can become the stuff of legends. It is perhaps the greatest gastronomic invention since lickable wallpaper. Hunger, beware – your end is near!
Price: USD 8.99www.thinkgeek.com
January 2009 |
BY GAVIN VERCOE
48-49 Gizmos.indd 48 3/1/09 12:12:13 PM
Gad
gets XYZ COMPUTER DESK
This is for the neatfreaks among us. However sleek a computer or laptop is, wires inevitably create an unsightly mess. But the XYZ computer desk is – quite literally – the computer itself, doing away with cable tangles in a compact and shiny Mac-inspired design. Computer parts and cables are tucked within the desk and the CDRW/DVD, USB port and hot keys are located on the side. When it’s time to upgrade, simply fl ip the lid up and replace the parts. Neat.
Price: €1 943.00 (excluding taxes and shipment)www.dddxyz.com
DEAD FRED PEN HOLDERWe already know that your desk probably looks like a disaster area ... why not turn it into a crime scene instead? Not only does repeatedly stabbing your pen into Fred reduce your stress levels, it helps you to keep that pesky pen from getting lost under the edge of your computer keyboard. Need someone to take out your aggression on? Well, Dead Fred is the man!
Price: €9.99 www.thinkgeek.com
LIGHT EMITTING WALLPAPERAs far as walls go, this one’s a bright spark. Designed by Dutch designer Jonas Samson, this luminescent wallpaper glows with subtle shapes to bring life and whimsy to your walls. Incorporated with revolutionary sheet-like optics, this wallpaper is part art, part high-tech wonder. Each sheet can cover a maximum area of 300 cm to 150 cm and you can have your own custom designs imprinted on the paper.
Prices varywww.jonasamson.com
49
LIGHT EMITTING WALLPAPERAs far as walls go, this one’s a bright
ASTON MARTIN ONE-77Excuse me, Mr Bond, your new car has arrived
Okay, now this is the ultimate in art and engineering – the Aston Martin One-77. The UK automaker's latest fl agship model is a rare beauty with only 77 of these wonders made. It boasts a 7-litre V12, 700hp, carbon fi bre chassis with handcrafted aluminum body. It has the performance to match, going from zero to 60 in just 3.5 seconds, and a top speed of over 200 mph. Q would approve ... and at only USD1.9million – “I’ll have two”.
Coming soon: check out www.one-77.com for details.
| January 2009
MYVIC ELECTRONIC CIGARETTE This revolutionary device can be used anywhere where traditional smoking is forbidden. It completely simulates the sensation of smoking ordinary cigarettes, even producing "smoke" that is actually watervapour. The Electronic Cigarette uses nicotine refi lls, which come in different nicotine concentrations. Each refi ll contains nicotine and propylene glycol. When "smoked", 98 percent of the nicotine contained in the inhaled mist is absorbed, leaving only propylene glycol which is exhaled and disappears in seconds – making it harmless to people around you, so no more passive smoking. That's it – new year's resolution, take up smoking.
Price: €39www.myvic.co.uk
48-49 Gizmos.indd 49 3/1/09 12:12:24 PM
JEWEL AT
Cre
dit
Ngu
yen
Vu
Kho
i and
ww
w.d
isco
verp
huqu
oc.c
om
PHU QUOC
50 January 2009 |
50-53 DestinationsPhuQuoc.indd 50 3/1/09 12:14:03 PM
BY SHERALYN TAY
51
From left: Bal Sao Beach; a fi shing boat off the coast of Bal Thorn beach; a crab farmer shows off his catch
Dominic Scriven OBE – the Director of Dragon
Capital – has co-founded Wildlife At Risk (WAR) to help protect this tropical island eco-paradiseT SEA
DESTIN
ATION
S
most beautiful and secluded beaches.
Blessed with a glorious coastline, the
island inland boasts majestic sandstone ridges
that span it from north to south – giving Phu
Quoc its other moniker of “99 mountains”.
Abundant rain gives life to forests that cover
most of the island, making it a haven for
exotic wildlife and plant species.
For all its beauty, this tropical island
remains relatively under the tourist radar
and sees little of the human traffi c of other
getaways such as Phuket. But ambitious plans
by the Vietnamese government to develop
the island into a major eco-destination
may change the idyllic pace. While this
may be good for the economy, some
environmentalists are concerned about the
impact an infl ux of tourists and unchecked
development will have on this largely
untouched island haven.
THEY call it the Emerald Island – and it’s easy
to see why. Surrounded by the warm turquoise
waters of the Gulf of Thailand, Phu Quoc is
an Eden of pristine coastlines, lush rainforests,
rugged mountains and abundant wildlife.
Just an hour’s fl ight from the frenetic energy
and clamour of Ho Chi Minh City, Phu Quoc is
located just off the south-western tip of Vietnam
and 15 km from the Cambodian coast. The
tear-dropped shaped island – once home to
sea cucumber traders, French missionaries and
rubber plantations – is Vietnam’s largest off-
shore territory and home to some of the world’s
| January 2009
50-53 DestinationsPhuQuoc.indd 51 3/1/09 12:14:06 PM
Destin
atio
ns
22 November 2008 |
and other wetland trees inhabit the swampier
mangrove areas, and hardy conifers take root on
the rugged slopes of the island’s loftier territories.
These various forest habitats support an even
greater abundance of fl ora and fauna, from rare
plants to butterfl ies, insect life, reptiles and birds.
But little is understood about the island’s great
range of natural reserves, and plant and animal
inhabitants.
In acknowledgement of the value of the
island’s biodiversity, Vietnamese authorities
such as the State Forest Enterprise, which has
managed Phu Quoc’s forests since 1975, have
upgraded Phu Quoc’s status from Nature Reserve
to National Park. “(It had) the objective of
conserving the natural resources of the island and
protecting the endemic gene pools of the Phu
Quoc forests,” said Khoi, a trained forester and
expert in conservation biology.
TREASURES OF THE EARTHApart from its conservation activities, WAR also
has a vital presence in Vietnam because of its
awareness and protection programmes, noted
Chris Jones, Acting Trustee of WAR and one of
its valued sponsors. “As the only organisation
of its kind in the southern region of Vietnam,
the NGO also acts as a role model for other local
conservationist activities,” he added.
On a national level, WAR has initiated
protection work, cooperating with local
authorities and national park rangers to put a
curb on wildlife poaching in Vietnam that fuels
the illegal wildlife trade. Awareness work in the
form of picture postcards and books featuring
the island’s wild creatures and plants, and a
butterfl y reserve on Scriven’s Mango Bay eco-
resort also serves to educate and cultivate an
appreciation of the rich and valuable diversity of
the Island.
For the past two years, WAR has been
undertaking studies to bridge the knowledge
gap and document the natural wonders of Phu
Quoc. Endorsed by authorities, WAR’s studies
have unearthed some great fi nds on the island,
including rare and beautiful orchids. One
discovery was a valuable and heavily traded
slipper orchid species called Paphiopedilum
“It’s a place that speaks to my spirit. From there comes the willingness to commit to the island.”
PHU QUOC PROTECTORSOne organisation working to help balance the
demands of progress with the preservation of the
Island’s natural resources is Wildlife at Risk (WAR),
a Vietnam-based non-government organisation
co-founded by Englishman Dominic Scriven, OBE,
and conservationist, Julia Shaw. As the Director of
Dragon Capital – the largest and among the most
experienced asset managers in Vietnam – Scriven
explained to CUBIC that the decision to be a part of
conservation efforts in Vietnam was based on a desire
to give back and be a part of his adopted country.
“Everybody, wherever they live, has to be part
of their society. For me I choose to be part of
Vietnamese society and I want to give back to be
part of Vietnam. There are any numbers of ways
to give back, but I choose to give back to the
wildlife and ecology, which is extremely rich.”
With overriding priorities in the fast
developing country, such as economic progress
and escape from poverty, issues such as
wildlife and ecological conservation tend to be
overlooked, noted Scriven. He acknowledged that
it is crucial that conservation work takes place
now, in a more proactive rather than reactive
manner.
“In Britain, there are virtually zero areas that
have not been trodden over and massacred,”
he said, “A place like Vietnam still has its virgin
areas and the natural tendency for humanity is to
exploit these resources. Phu Quoc has not been
exploited yet, but it will be, and the question is
how to manage this process.”
Being an isolated land mass means that Phu Quoc
is somewhat protected from external forces and has
its own unique ecology of rare plants and animals.
For example, a species of dog called the Phu Quoc
ridgeback is found only on the island. But the island is
also vulnerable at the same time precisely because of
its special and delicate island ecosystem.
CEO of WAR, Nguyen Vu Khoi, explained that
the island has a wide range of habitats. From
swampy mangroves to sandy beaches and arid
dry highlands, forests on the varied terrain of
the island are a study in diversity. Coconut and
palm trees, and other coastal species thrive on
the sandy soils of the beaches, while mangroves
Left from top: WAR at work rehabilitiating the Dao Long; A Phu Quoc gem – the Paphiopedilum callosum, an orchid listed as an endangered species; a golden dragonfl y recorded among WAR’s insect surveys
52 January 2009 |
DESTIN
ATION
S
50-53 DestinationsPhuQuoc.indd 52 3/1/09 12:14:11 PM
callosum, a stunning purple and white fl ower
that is listed as an endangered species.
WAR’s plant surveys have also recorded two
more orchid species never seen before on the
Vietnam mainland – the Malaxis calophylla and
Aphyllorchis montana, two rare orchids that
bloom in tiny and delicate blossoms.
“These discoveries have been absolutely
extraordinary; nobody knew that we would
fi nd such species (on the island),” said Scriven.
According to Khoi, “Additional surveys of
insects, reptiles and fi sh are also proving
‘fruitful’.” They are uncovering more new
species on the island such as dragonfl ies, the
snake-like Banna Caecilian and the Olive Tree
Skink.
FINDING A BALANCEEnvironmental work aside, WAR has also been
bridging the gap between preserving natural
resources and economic development. Scriven
noted that, while the idea of sustainable
development is recognised as being a good
thing, “there are different understandings
of what sustainable development actually is;
the issues are different across countries and
cultures”.
“In Phu Quoc, we had to fi nd a means of
livelihood that is suitable for the local people
and sustainable for the environment.” Other
creative ways to provide sustainable livelihoods
have been to farm butterfl ies and breed rare
plants, said Scriven. One WAR project is to
rehabilitate a locally endangered broad-leafed
plant species known as Dau Long, or the
Dipterocarpus intricatus.
Another has been to support farmers in
the transition from fi shing to the sustainable
cultivation of mud and swimmer crabs. It’s not
an easy task, said Scriven, but one that is worth
trying as it provides gainful employment and
sublimates activities away from environmentally
harmful occupations such as overfi shing, which
is already wreaking havoc on marine populations
in Phu Quoc and many parts of Vietnam.
In a way, Scriven’s commitment to managing
a balance of long-term economic growth with
responsible activity is not something new to
him. His investment fi rm, Dragon Capital –
which manages around USD2 billion of funds
in Vietnam – is one of the leaders in socially
responsible investing (SRI), making decisions on
investment based not only on returns but also its
social good.
SRI is a booming market in both the US
and Europe. According to the Report on
Socially Responsible Investing Trends, assets in
such portfolios climbed to USD2.71 trillion in
2007, up from USD2.16 trillion in 2003 in the
United States. Research estimates by fi nancial
consultancy Celent predict that the SRI market in
the US will reach USD3 trillion by 2011.
Ethical investment in Europe has also
reached signifi cant amounts, with the SRI
market growing from USD1 trillion in 2005
to USD1.6 trillion in 2007. According to the
Ethical Investment Research Service (EIRIS), £9.8
billion is invested in ethical and environmental
investment funds in the United Kingdom alone.
But Scriven noted that the assets class of SRI
has still not yet proved itself commercially. “One
of the reasons is that the cost of development
and pollution is not properly priced,” he said.
Nevertheless, “there are people in the world
who will invest not necessarily because of
investment merit but because of their personal
commitment. They wish to be responsible.
Dragon Capital is one of those companies that
are trying to learn to be responsible.”
It’s a movement that’s taking off as global
citizens seek to address and make an impact
– albeit indirectly – on social issues, such as
environmental concerns, consumer protection,
human rights and social equality. Just like his
reasons for giving back to Vietnam and its
wildlife, ethical investing is an issue of playing a
responsible role in the society in which one lives.
“Business and success are increasingly judged
not just by economic and fi nancial means, but
by their corporate responsibility,” said Scriven.
In Phu Quoc, the work may be painstaking
and the road ahead long, but WAR is still
dedicated to preserving its natural heritage
for the future of Vietnam. It’s also a labour of
love. Scriven sums it up poetically, “It’s a place
that speaks to my spirit. From there comes the
willingness to commit to the island.”
Dominic Scriven, Director of Dragon Capital
53
DESTIN
ATION
S
| January 2009
50-53 DestinationsPhuQuoc.indd 53 3/1/09 12:14:14 PM
THE CHAOS lasted mere minutes. But when
the devastating Boxing Day tsunami in 2004
– triggered by a massive undersea quake –
unleashed its deadly force on the coasts of
Asia, it wiped out entire towns and villages
in Indonesia, South India and Thailand, and
claimed an estimated quarter of a million lives.
The low-lying fi shing town of Kirinda,
located on the southern end of Sri Lanka, was
defenceless against the 30-metre-high onslaught
of raging water and more than 200 of its people
perished in what is now called one of the
deadliest natural disasters in modern history.
But the residents of Kirinda have rebuilt their
town – and their lives – thanks to a generous
fund set up by Colliers International. Moved
by images of destruction and driven to reach
out to those whose lives had been so tragically
affected by the tsunami, Colliers International
announced the establishment of a US$1 million
trust just days after the disaster to design and
construct 67 homes for displaced families in
the community. At the helm was Philip Bay, the
Regional Director of Colliers Southeast Europe,
who had proposed the ambitious project.
Without a clear plan or professional track
record in disaster relief, but guided by a sense of
doing what was right, Bay fl ew to Sri Lanka and,
in consultation with the central government,
made the decision to help Kirinda, a minority
community of Malay Muslims in largely Buddhist
Sri Lanka. It was a move to ensure that help was
distributed evenly to all the victims.
In the same spirit, world-renowned Japanese
architect Shigeru Ban took on the project –
despite offers of 10 other projects – stating that
“it was for a smaller community and a minority
group in a more diffi cult situation”.
It was to be the beginning of a three-year
project that has won admiration and awards
for its high standards, sustainable masterplan
and holistic consideration of the community’s
COLLIERS CA
RES
54
blocks, the spacious and airy homes have been
built to breathe in the heat, making them
comfortable and liveable even in the searing
weather of the dry seasons. Previously without
power, running water or sanitation, the new
homes have hydro-electric energy, water and
septic tanks. The community even has bragging
rights to the fi rst fully solar-powered street
lighting ever introduced in Asia.
Recognising the empowering value of
grassroots participation, the project team made
sure that Kirinda residents were actively involved
in the rebuilding process, holding fi ve town hall
meetings to gain their feedback and insight, as
well as listen to concerns and needs. Because of
this personal relationship and communication,
the Colliers project is the only one to have
masterplanned the community based on original
property lines and according to genuine title
deeds. The village was also restored to its
original layout, with the mosque as the focal
point. Interior partitions were included in the
homes to allow gender separation according to
the level of religious orthodoxy of the families.
Villagers themselves pitched in to help in the
construction of the new homes.
Project Manager Anthony Benjamin also
noted, “While a majority of post-tsunami
projects were implemented away from the
original dwellings and relocated, Colliers’ Kirinda
project was done in the exact location, thereby
enabling the community to get back to their
day-to-day activities.”
More importantly, rather than just being a
one-off charity project, Colliers continues to
provide infrastructure facilities and sustainable
programmes, he added. To help the community
be more self-suffi cient and resilient, Colliers has
implemented income-generating projects that
include the participation of the community’s
women. Microfi nance has also been arranged to
seed fund small businesses.
BY SHERALYN TAY
KIRINDA, A COMMUNITY REBUILT
needs. Working with the senior advisors of
President Mahinda Rajapaksa, the Colliers
Kirinda project has also become a benchmark for
other organisations, such as the United Nations,
the US Agency for International Development
(USAID) and numerous NGOs.
Far from hastily built emergency structures
to provide for the most basic of needs, Shigeru
Ban Architects – hailed by TIME magazine as one
of the Top 100 innovators of the 21st century
– designed sturdy and sustainable residences
suited to the needs and climate of the town and
its residents.
Researching the materials, styles and history
of residential construction in Sri Lanka, Shigeru
Ban Architects resolved to use traditional
practices suited to tropical climates. Each
spacious house has two bedrooms, two rooms
of living space, a roofed court, a kitchen and a
bathroom – ample space for the families of the
community. “I am so lucky to receive a mansion
like this,” said one resident, M.R. Riyvaldeen,
a fi sherman whose house and boat were
completely destroyed in the fl oodwaters.
Created from natural and renewable material
that came from the community’s own tree
farms, wood from rubber trees, coconut palms
and teak, together with sun-dried earthen
With vision and compassion, Colliers International rebuilt the village of Kirinda — winning awards for excellence in sustainable building and healing a community torn by disaster
January 2009 |
54-55 Colliers Cares Kirinda.indd 54 3/1/09 12:15:00 PM
55
To make the most of the site’s scenic beauty
and tourism potential, as well as provide a
sustainable income stream, a Shigeru Ban-
designed eco-friendly boutique hotel staffed by
villagers has been built.
For its design, the Kirinda project has won
three prestigious awards – a Special Tribute and
the Best Residential Development award at the
MIPIM real estate awards in Cannes in 2007, and,
more recently, winner of the 2008 Urban Land
Institute Awards for Excellence: Asia Pacifi c.
Said Kirinda fi sherman M.T. Ramis, 60, “This
is much, much more than I ever expected.”
Opposite page: A nighttime view of the Kirinda homes
Right: Philip Bay Regional Director, Colliers Southeast Europe (in garland), and Kirinda Trust trustees Charith Gunatilleke and Pradip Jayawardane at the handover ceremony on April 2006
COLLIERS CA
RES
COLLIERS HONG KONG AWARDED FOR CHARITY WORKFROM bringing joy to disadvantaged children
to raising funds for charities and holding
community activities, Colliers has long been a
prominent player on the charity and community
scene in Hong Kong.
In the past few years, Colliers Hong Kong
has held at least 14 events for community
organisations. These included Service Day in
Ocean Park for the Comfort Care Concern
Group – a hospice-care charity – and carnivals
for the children’s charity TREATS.
For its commitment to philanthropy and the
community, the Colliers Hong Kong offi ce was
awarded the Caring Company Logo by the Hong
Kong Council of Social Service (HKCSS) for the
fi fth consecutive year in May 2008.
The scheme, which has been running for six
years, recognises good corporate citizenship,
and aims to raise public awareness of the
companies and the organisations that have
contributed to a caring community.
According to Colliers, the recognition of
its contribution to Hong Kong gives a sense of
satisfaction to the company, as well as the staff
who have participated. “It also represents our
important role in caring for society. The recognition
also gives us encouragement to continuously make
donations to charity and help those people who
are in need,” said Piers Brunner, Chief Operating
Offi cer, Asia and Managing Director, Hong Kong.
“It is a motivation to further enhance our quality of
social service.”
Moving forward, Colliers is committed to
doing more good work and is in the process
of establishing a mentorship programme
administered by a local charity that will address
life skills for children, such as fi nancial wisdom
and career management.
Speaking at the award ceremony, HKCSS
Chairperson, the Hon Bernard Chan, expressed
appreciation for the companies in the Caring
Company Scheme. “To look into the future, Hong
Kong society is facing all sorts of gradual, long-
term challenges. We need new thinking and new
concepts to mobilise all sectors to tackle them
collectively,” he said. Colliers Hong Kong was one
of the companies and organisations commended
for their contribution to the community.
From destruction to renewal. Kirinda residents now have spacious, sturdy – and award-winning – homes in which to rebuild their lives
From left: Embrace the Difference Charity Event. Service Day at Ocean Park
More information can be found at www.collierskirinda.com
| January 2009
54-55 Colliers Cares Kirinda.indd 55 3/1/09 12:15:05 PM
CUB
IC WO
RLDVIEW
56
In the visionary words of BARACK OBAMA, “it is our time” – and what a
time it’s been for both the United States and the world. Leaders within the
real estate industry recognise the plethora of problems, crises and tough
decisions facing the 44th president, and they’re preparing for changes
in 2009. Consultant CHRIS LEE shares how the outcome of the 2008
presidential election could impact the real estate industry – and what some
insiders are doing to prepare themselves and their businesses.
BLUESTATE, RED STATE, REAL ESTATE
January 2009 |
56-57 CUBIC Worldview.indd 56 3/1/09 12:19:05 PM
57
THE CHALLENGES AHEAD for the president are daunting and could
bring a dose of reality to pre-election rhetoric and promises. For many real
estate professionals, who has won is less important than what decisions will
be made. To prepare for the unknown, real estate leaders and professionals
at all levels are taking strategic and tactical steps now so that the impact and
potential legislation of a Democratic president and a Democrat-controlled
Congress in 2009 and beyond are eliminated or dramatically reduced. Here
are some areas of growing concern for the US real estate industry after a
historic election year.
TAXES: With the Democratic win, the real estate industry could be
impacted signifi cantly if Congress enacts the election-year platform and
promises to revise the carried interest deduction and increase the capital
gains rate. Many in the industry have cashed out in 2007 or have monetised
some or all of their assets rather than take a “hope certifi cate” chance on
a Republican victory. Any tax increases will have a negative impact on gross
domestic product (GDP) growth.
IMMIGRATION: It now appears likely that employers, not the federal
government, will become an unoffi cial extension of the US Citizenship
and Immigration Services. Many real estate companies that previously did
not verify employees’ citizenship – or mandate their service provider to do
so – are doing so now. There appears to be an agreement that employers
are going to have an increasing burden to verify employees’ citizenship.
Immigration issues could require more multifamily owners/operators to have
bilingual on-site personnel. Watch for a wave of outsourcing services that
will be used to verify citizenship.
HOUSING: Real estate leaders are expecting a rise in funding for
affordable housing and various community revitalisation grant programmes.
The current focus is on establishing the skill set, capabilities and resource
partners necessary to capitalise on the likely dramatic increase in fi nancial
aid for urban housing. Service companies are now considering hiring urban-
housing and mixed-use specialists to capitalise on this opportunity.
CREDIT: Resolution of the credit crises will not occur until 2010 or beyond.
Most real estate leaders are very supportive of the chairman of the Federal
Reserve System, Ben Bernanke, and expect him to continue until his term
expires on January 31, 2010. The current bet is that President Obama will
appoint his own chairman.
TRADE: The real estate industry, particularly the industrial/warehouse
sector, relies on trade to grow. President Obama has indicated his preference
to reduce trade (i.e. “revisit” NAFTA and GATT) and “support” the American
worker (unions), and real estate investors believe that, despite the pre-
election rhetoric, American consumers will not be willing to purchase goods
that are two to three times more expensive than foreign goods. Therefore,
port and air cargo activity will remain strong.
GREEN: President Obama supports green initiatives, and real estate
investors are betting that growth in and around colleges, universities and
green technology corridors will increase signifi cantly as he support billions of
dollars in clean energy investment. However, a growing number of real estate
owners are concerned that Democratic proposals may dramatically slow re-
development activity. Such proposals are purported to include taxing building
environmental ineffi ciencies and non-sustainable construction materials, taxing
or adding fees to new development projects and potentially taxing tenants to
encourage energy savings and recycling.
TORT REFORM: The continued problem of litigious actions is likely to
remain in the US. Frivolous lawsuits can slow real estate growth. Real estate
owners are increasingly using third parties to avoid the threat of lawsuits.
Watch for a wave of new legal hires within real estate companies to protect
owners/operators.
LABOUR: Real estate companies were betting on changes to the
employment law (regardless of election results). Human resource directors
are preparing for a tsunami of new legislation and regulations. Issues will
include for-cause terminations, CEO compensation and privacy matters
such as ownership of e-mail and Internet governance. Re-writing employee
handbooks will be fairly commonplace.
HEALTH CARE: This is the one area in which all real estate professionals
and both candidates agree: more money will be available for, and going
to, an increased focus on health care, wellness, dietary needs, research and
manufacturing of medical devices. Thus, real estate investors are increasing
their activity levels in and around areas with a concentration of the
pharmaceutical industry, hospitals and health care facilities.
(Please note: Opinions expressed in this article are those of the author and do not necessarily refl ect the position of CUBIC or Colliers International. CUBIC and Colliers International do not hold any political affi liation or intent.)
Christopher Lee is President and CEO of Los Angeles-based CEL & Associates, Inc – one of the United State’s premier real estate consulting fi rms.
| January 2009
56-57 CUBIC Worldview.indd 57 3/1/09 12:19:59 PM
November 2008 |
L-R: Lina Wong, Mr Lv Nan Ting, Director of Shanghai District Government and Ms Sun Li Yan, Deputy Director of Shanghai District Government at a Shanghai REIW cocktail in December 2008.
R-L: Mr. Liu Ting Jun (CEO, Taikang Real Estate) and Ms. Liu Shu Qin (GM, Taikang Real Estate) with Ms Amanda Gao (MD, Colliers International, Beijing) at a Taikang Financial Tower promotional event on 23 May 2008.
Colliers International makes its presence felt at an Estate and Finance International Exhibition held from October 31 to November 2 in Hanoi.
R-L: Ms Maggie Lee (Colliers International, Hong Kong) and Ms Suzi Vujanovic (Australian International School) at Residential Leasing Department's International School Forum.
R-L: Mr David Lindsay (Johnson Controls) and Mr Vincent Chan (Colliers International, Hong Kong) at the r.e.Design Cocktail Launch.
Left: Mr Kaushik Reddy (Associate Director, Colliers International) with associates.
Simon Carter with Jun Saa (Robinland) at the r.e.Design Launch, Phillippines. L-R: Andrew Miguel (Petron), Leanie Sales (Associate Director of Consultancy and Valuation), Michele Topacio (SM Investments Corporation) Phillip Ricarte (HSBC), Jen Torres (Manager Commercial Real Estate Advisory Division) at the r.e.Design Launch.
58 January 2009 |
OUT AND ABOUT WITH COLLIERS & CLIENTS
58-59 people section.indd 58 5/1/09 11:38:49 AM
L-R: Mr Graham Sugden, Mr Ben Green, Mr Matthew Wrigley (AMP Capital Investors), Ms Christine Mount (LaSalle Investment Management) and Mr Hugh Menck at Colliers International's Racing and Boozing night in Singapore.
L-R: Dr John Keung (Building and Construction Authority), Mr Dennis Yeo and Mr Calvin Yeo at the r.e.Design launch in Singapore.
L-R: Goh York Lin (Alpha Investment Partners Ltd), Danny Phuan (Alpha Investment Partners Ltd), Tan Boon Leong at Singapore Grand Prix.
L-R: Nick Kearns (AEW Asia), Hugh Menck, Peter Wittendorp (AEW Asia), Laurent Mirepoix (Credit Agricole), David Faulkner at Singapore Grand Prix.
L-R: Evasio Barbero (CEVA Asia Pac), Rimon Ambarchi, Fritz Wyler (AMB), Jamie Horne, Dennis Yeo, Lina Wong at Singapore Grand Prix.
L-R: Hartmut Bauche (Consulate General of Germany), Doris Lam (Colliers International), Paolo Miraglia del Giudice (Consulate General of Italy) at the Colliers International (Guangzhou) Cocktail Party in July 2008.
L-R: May Fung (Colliers International), Calvin Cheung (Regal Harbour) at the annual Colliers International (Guangzhou) Office Cocktail Party in December 2007.
L-R: Paul Mercer (TESCo), Bryan Chan (Colliers International) at the Annual Colliers Guangzhou Office Cocktail Party in December 2007.
Developer Tavekiat Nakosiri (Chatsiri) at a pre-sale event of their DSign Ratchada Condominium at Esplanade, Bangkok.
GlenAsia's Mr Per-Olov Ragfelt (Executive Director), HSH Prince Ticomporn Yugala (Director and Senior Advisor), Mr Roland Svenson (Country Manager) and Mr Patima Jeerapaet (MD, Colliers International Thailand) at the grand opening ceremony of GlenAsia Resort + Residence Thailand.
59 | January 2009
CU
BIC
PEOPLE
58-59 people section.indd 59 5/1/09 11:39:07 AM
EVERY ORGANISATION is really a set of small towns. If you’re from a small
town, think of the people there. If you’re not, think of, as Don Henley sings,
“that same small town in each of us.”
There are the business executive and the sheriff. There’s the town
scandal—the preacher’s wife and the schoolteacher. There’s talk of who
will be the next mayor, who will move away, and the price of grain (or oil
or the Wal-Mart starting wage). There’s the high school, where the popular
kid, the son of the town’s sheriff, throws a party the weekend his father is
away. There are the church crowd, the bar friends, the single people, the
book club, the bitter enemies.
There are also the ones who are the natural leaders, who explain
why the party at the sheriff’s house seemed like a good idea at the time
and how sorry they are for the beer stains on the carpet. The people are
different in every town, and the roles are never exactly the same. But
there are more similarities than differences, and the metaphor itself always
holds, from companies in Nebraska to ones in New York or Kuala Lumpur.
We call these small towns tribes, and they form so naturally it’s as
though our tribe is part of our genetic code. Tribes helped humans survive
the last ice age, build farming communities and, later, cities. Birds fl ock,
fi sh school, people “tribe.” A tribe is a group between 20 and 150 people.
Here’s the test for whether someone is in one of your tribes: if you saw
her walking down the street, you’d stop and say “hello.” The members
of your tribe are probably programmed into your cell phone and in
your e-mail address book. The 150 number comes from Robin Dunbar’s
research, which was popularised in Malcolm Gladwell’s The Tipping Point.
When a tribe approaches this number, it naturally splits into two tribes.
Some of the corporate tribes we’ve seen include the high-potential
managers of one of the world’s largest fi nancial services companies; the
doctors, nurses, and administrators of one of America’s most respected
healthcare institutions; the research and development division of a
mammoth high-tech fi rm; the operational executives of a major
drug company; and the students of the executive MBA program at the
University of Southern California.
Tribes in companies get work done—sometimes a lot of work—but
they don’t form because of work. Tribes are the basic building block
of any large human effort, including earning a living. As such, their
infl uence is greater than that of teams, entire companies, and even
superstar CEOs. In companies, tribes decide whether the new leader is
going to fl ourish or get taken out. They determine how much work gets
done, and of what quality.
Some tribes demand excellence for everyone, and are constantly
evolving. Others are content to do the minimum to get by. What makes
the difference in performance? Tribal Leaders. Tribal Leaders focus their
efforts on building the tribe or, more precisely, upgrading the tribal culture.
If they are successful, the tribe recognises them as the leaders, giving
them top effort, cult-like loyalty, and a track record of success. Divisions
and companies run by Tribal Leaders set the standard of performance in
their industries, from productivity and profi tability to employee retention.
They are talent magnets, with people so eager to work for the leader
that they will take a pay cut if necessary. Tribal Leaders receive so many
promotions in such a short time that people often spread buzz that they
will be the next CEO. Their efforts seem effortless, leaving many people
puzzled by how they do it.
Many Tribal Leaders, if asked, can’t articulate what they are doing
that’s different, but after reading this book, you will be able to explain
and duplicate their success. A Tribal Leader many of us know from history
is George Washington. His single major contribution was in changing 13
diverse colonies into one people. If we look into what Washington actually
did, he built a single
identity (measurable by what people said) to a series of networked tribes.
One was the affl uent class in Virginia society, perhaps fewer than a hundred
people. Another was the Continental Congress, originally 55 delegates. The
third was the offi cer class of the Continental Army.
Each time, Washington led the group to unity by recognising its
“tribalness,” by getting its members to talk about what unifi ed them:
valuing freedom, hating the king’s latest tax, or wanting to win the fi ght.
As he built the common cause in each tribe, a mission gelled and they
embraced “we’re great” language. Washington’s brilliance in each case
was that the man and the cause became synonymous with the leader
shaping the tribe and the tribe calling forth the leader. This is how Tribal
Leadership works: the leader upgrades the tribe as the tribe embraces the
leader. Tribes and leaders create each other.
CORPORATE JUNGLEBirds flock, fish school, people “tribe.” Here is an excerptfrom the Tribal Leadership, which takes a look athow managers can use tribes within an organisation tomaximise their profitability and increase productivity.
November 2008 | 60 January 2009 |
BO
OK REVIEW
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