Saigon m&c an overview hung t.nguyen

VIETNAMESE GERMAN UNIVERSITY

URBAN DEVELOPMENT PLANNING

SAIGON M&C TOWER:

AN OVERVIEW ASSESSMENT Advisor: Prof.Dr.Karl Klugel

Hung T.Nguyen

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Saigon M&C Tower: An Overview Assessment – Hung T. Nguyen

Table of Contents

Abbreviation ................................................................................................................................................. 3

1. INTRODUCTION ..................................................................................................................................... 4

2. SAIGON M&C TOWER – AN OVERVIEW ................................................................................................ 6

3. SAIGON M&C TOWER: MULTI FACTOR ASSESSMENT........................................................................... 8

3.2 Locational attributes ........................................................................................................................... 9

3.2 Economic attributes .......................................................................................................................... 10

3.3 Physic attributes ................................................................................................................................ 10

3.4 Environmental attributes .................................................................................................................. 11

4. CONCLUSION ....................................................................................................................................... 13

5. BIBLIOGRAPHY .................................................................................................................................... 14

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Abbreviation

HCMC – Ho Chi Minh City

SGMCT - Saigon M&C Tower

EPC - Engineering-Procurement-Construction

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1. INTRODUCTION

Nowadays, tall buildings play an important part in the urban economy as well as many aspects

of urban development. With recognition as crucial motivation, tall building is the land of economy,

financial, urban transport, investment opportunities and technological advances. Whether the

correction derived from perception that were being an urban infrastructure or facility to serve the

economic development, high rise buildings are a main element, an important factor contributing directly

in the national development. And, the production of high-rise building is the inevitable product of social

development.

The tall building’s influences vary from the socio – economic to environmental sector. In

business, it can make more profit from the land owner and available to the higher accumulation of floor

space from the function, for instance. On the contrary, tall building relates with surrounding

environment of urban design has become a serious problem coupling with the traffic problem whereas

urban density problem could be solved with based on the city model dominated in development of tall

buildings.

Ho Chi Minh City (HCMC) is the busiest and most dynamic metropolis in Viet Nam and tall

buildings have been contributing to the city development through many aspects. Alike any other cities,

an office rental market in HCMC is described with increasing figures per annum and this is leading to, as

a consequence, an effervescent market with plentiful suppliers to meet the rising demand. In the heart

of Ho Chi Minh City’s commercial hub, Saigon M&C Tower presents 40 storey of grade “A” mix-used

development, setting up new standards of living and working in Vietnam’s most energetic city. Located

on a dramatic site along Ton Duc Thang Street, the tower enjoys extensive views over Saigon River on

one side and picturesque city views on the other side.

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According to CBRE Report1, Saigon M&C Tower was belonged to a group of thirty three

developing buildings (CBRE, April 2011, p.12) in district 1, HCMC. Whether this mixed-function building

satisfies the investors’ expectations, this high-rise building is connecting with city development by its

effectiveness to socio-economic respects as well as surrounding environment. Which criteria are

suitable to put them into the analysis of the building influences? Socio-economic aspects, domestic

office rental market or macroeconomic vision or in sustainable development are sides should be

considered.

1 Vietnam Real Estate Update and Market Overview, 4 April 2011, CB RICHARD ELLIS – CBRE.

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2. SAIGON M&C TOWER – AN OVERVIEW

The term of a “world city” is more and more becoming popular in developed property market.

From our observation, we can find that the world is undergoing a major force, as being the first time in

human history the majority of people now is citizen, who live in urban areas. Cities, like the most

attractive destinations, is the best choice of people to meet ones demands, the very basic needs as well

as higher level e.g. education and employment etc. Being quite sufficient infrastructure, HCMC was been

considering as a good environment of people’s settlement. Furthermore, HCMC in the long run will join

the “world city” system and there is no better strategy than moving faster.

Power shortages, CO2 emissions and traffic jams being the issues must be resolved. For this

reason, a smart and connected building is a factor which drives the world toward a sustainable

development, with balance of social, economic and environmental resources.

Located At 34A Ton Duc Thang St., Dist.1, Ho Chi Minh City – Vietnam, Saigon M&C Tower

(SGMCT), an expectation as a city landmark, will create a strong impression in the downtown of Ho Chi

Minh City, with expected delivery in the second half of 2011.The estimated investment capital was

around $256 mil, the investor - Saigon M&C Real Estate Joint Stock Company (Joint Venture between

Saigon tourist Holding Company, M&C joint Stock Company, DongA Commercial Joint Stock Bank, and

Dong A Bank Securities Company) – expected to make a great advance by applying new technology in

construction process as well as building equipments, the latest technology could be meet all the

requirement. Main contractor is Bouygues Batiment International (BBI) which has gained its fame by

constructing most luxurious and complex works such as the tallest First Tower in France, Sydney Olympic

stadium in Australia and Kuala Lumpur Grand station in Malaysia, etc. By giving the expectations to one

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of the biggest and most reputable Engineering-Procurement-Construction (EPC) 2 contractors in the

world, the investor demonstrated the will to create a new landmark in the center of HCMC.

According to the designing consultant, the building architectural design is for harmony, in

surrounding area and building landscape. The building will be a new city landmark, in creating a new

impression at the connected point among Ham Nghi, Ton Duc Thang and East – West Boulevard, being

ongoing construction and finishing in the end of this year. Being altogether with other surrounding

buildings, SGMCT will make more diversity in term of contemporary high-rise buildings and boost the

urbanization’s pace in HCMC. This building could strengthen the HCMC real estate market, creating a

new source to supply to the residential as well as office rental market which is being shortening

suppliers. Furthermore, the investment will boost the city socio – economic development, through

contributing to local government budget as well as changing the city skyline.

2 EPC stands for engineering – procurement – construction that is common type of contract requires main

contractor will design installation, procure the required materials and construct it. Main contractor can use itself

labor force or cooperate with sub-contractors. This type of contract often is used by the investors who are not

having capacity to finish their projects.

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3. SAIGON M&C TOWER: MULTI FACTOR ASSESSMENT

Strongly urbanized process has turn HCMC into a promised zone not only local property

investors but also international developers. With a sizeable population, HCMC remains an attractive

destination for long-term investment. There are more and more high-rise buildings developed in this

biggest and most attractive city to serve the increasing demand for office and retail spaces and

apartment buildings.

It raises a further question: more and more buildings developed, are there any impacts deriving

from these high-rise buildings and is it worth to develop? No matter how the benefits are, the

development of high-rise building going on fastly in HCMC has its own threats. Which criteria should be

put into the progress is a matter, with involvement related to many aspects. There is a need to consider

these standards to figure out a whole picture in the currently progress of tall building development.

A forty-level and five basements high-rise building currently under construction in HCMC will be

inaugurated this second half year of 2011 as the city’s iconic building, providing more office space in the

Southern economic hub. That high rise building now contributing to city development is hard to deny

and tall building rise as a city development is obvious. It can be said that tall building change not only

urban skyline but also the potential economic benefits, with being the most investment attractiveness.

Nevertheless, sustainability advocates raised a further question which standard category of SGMCT and

what design-advanced points of this building in compared with others.

A rise of tall buildings has been known like a symbol of development, affects to socio –

economic as well as environment. In arriving at the category classification, three main concerns have

been identified namely locational and economic and physical attributes. To make identification about

SGMCT impacts we need to understand the aspects that can contribute to those and these fall into

criteria which are discussed below.

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3.2 Locational attributes

With the first class design, SGMCT meets most difficult requirement of class “A” ratings by being

an excellent location. Buildings with an excellent location generally are either in the city centre or CBD.

Here we agree that excellent location means the city centre, and specifically for SGMCT we include also

the main boulevards Ton Duc Thang as well as Ham Nghi. Similarly, quietness of location and distance to

service points are the characteristics contributing to client’s attractiveness.

Located in HCMC centre, this building benefits by quite complete infrastructure system e.g.

short distance to local public transportation, long-distance public transportation, city centre, bank, post

office etc., and being attractive to the most creditworthy and prestigious tenants on the market from

the easy access to building characteristics. Furthermore, good location is the most important factor

being the most effective source to attract the investors. As the matter of fact, the building stands at the

crossroad in which three main roads intersecting (Ham Nghi, Ton Duc Thang and Ben Chuong Duong

streets), with panorama orienting directly to Sai Gon river.

Transportation accessibility is always an important factor that should be the first consideration

with the customers. The unique location, in the HCMC center, brings the building most conveniences in

terms of public facilities. Shuttle bus stations, ferry terminal, three kilometers away from the train

station or one kilometer reaching to long-distance public transportation make the SGMCT being one of

the most successful office building that transportation accessibility is an advantage.

As if that were not enough, parking space ability is the crucial problem that investor must deal

with to meet the increasing demand from the clients. Actually, parking lots are always the hard issues

that not only SGMCT investors but also all the office building owners must face in this area. Being six-

storey commercial service floors, one hundred and eighty high-end apartments and thirty floors of

offices, SGMCT will be the latest skyscraper to the city’s skyline embraces 5 underground basements of

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parking spaces. Parking has been solved with capacity of over 450 cars, 950 motorbikes and 8

wheelchairs within five basements. In detail, the first basement has enough capacity to serve motorcycle

parking with 960 nos and the rest four basements are sufficient in car parking space with about 120 nos

(plus 3 nos for handicapped car park lot) for each basement.

3.2 Economic attributes

Generally, economic attributes reveal the prospect of rental and Capital growth. Although under

construction, new grade “A” spaces in 2012 – 13 of SGMCT and other building in CBD is expected to see

nearly 137,000 sqm (Jones Lang LaSalle). Significant projects are due to completion in 2012, 13 include

SGTMC distributing 49,000 sqm of rental office square.

3.3 Physic attributes

On a scale of 6,672 square meters near the Thu Ngu flagpole on Ton Duc Thang Street, however,

building’s construction density is a noticeable aspect, with 3,062 square meters (46%) using for

construction work. After finishing, SGTMC will be the second tallest building in HCMC (the tallest

building at present is Bitexco Financial Tower with 262.5 meter height), with the most modern

equipments as well as building materials. Thus, physic attributes should be considered like an important

criterion. The parameters are: thermal comfort, air quality, office noise control, spatial comfort, privacy,

lighting, building noise control, overall satisfaction.

This class “A” office building is designed basing on some compulsory characteristics in order to

match of demand (user requirements). These patterns will focus on user satisfaction and tenant

retention. Factors for tenant retention include adding amenities e.g. flexibility, durability, daylight, views

of nature and good indoor quality.

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User satisfaction is the most care during design process to meet the strict requirements e.g. 24-

hours security and access control, high-speed elevators with waiting time max up to 30 seconds and at

least 2 lifts with a capacity of minimum for 6 people, HVAC system to provide cooling, heating and

humidity control of the air and control of micro climate in the office according to the EU HVAC

standards, dual power supply with automatic switch and building management system, modern window

panels and high – quality window frames as well as sun-protection glass, energy efficiency. Furthermore,

the luxury equipments boost the building’s value e.g. luxury meeting rooms and a large impressive

lobby, food and rest areas for staff, restaurant – cafeteria and fitness center.

3.4 Environmental attributes

Environmental approach is always the big issue in the age of modernization and globalization.

Friendly to environment is necessary condition to any projects when the client’s awareness about

environment protection being high. It will attract more customers who realize that energy saving is one

of the compulsory characteristic of the building. Actually, energy efficiency is a co-benefit issue in the

age of energy crisis and SGTMC performs this approach perfectly.

Green construction or sustainable building refers to using process that is resource – efficient

throughout a building’s life cycle. In term of efficiency of resource using, design and maintenance are

the two important issues in practicing of the building. The targets of these issues are to reduce the

impacts of build environment on occupant’s health and the nature environment, with the clear

principles e.g. efficiently using energy, water and other resource; protecting user’s health and improving

employee productivity; and reducing waste, pollution and environmental degradation.

The concept of design of SGTMC project revealed a long term vision to adapt with sustainable

building standard. As a consequence, the building included measures to reduce energy consumption.

The main theme of architectural design has been shown the solutions oriented to environmental

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protection. In June 2011, the agreement between Cisco and M&C corporation was announced for

applying Smart+Connected Communities, with the first implementation of Cisco's Smart+Connected

Communities solutions is expected to be at M&C's flagship project, Saigon M&C Tower which, once

completed, will be the most technologically advanced building in Vietnam. These applications will be

completed in 2011 e.g. Smart methods in office and house management with the most high-technology

high speed ADSL systems; Telephone and data management system MATV; house automatic

management via Internet; power use and water supply automatic counting system etc,.

Cisco's Smart+Connected Communities solutions have known as an the technology using the

network as the platform to transform physical activities of communities to connected communities

based on networked information to enable economic, social and environmental sustainability. The key

advantage of this technology is overall sustainability, by lowering environmental impact and creates a

greener society.

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4. CONCLUSION

From the viewpoint of above discussion, the value assessment of SGTMC necessarily involves a

multi-stage process, with long-term procedure monitored precisely. At the beginning, four criteria

included several parameters have been revealed like a framework of assessment process. In this respect,

the criteria were divided into locational, economic, physic and environmental attributes.

Location was the most important factor affecting the clients’ attractiveness. This result is indeed

quite intuitive that location is often regarded as the most important factor affecting the value of the

building. On the other hand, in case of investors thought, location is less important than economics and

on the way maximizing interest, the owners smartly function the building to orient to sufficient rate of

use. In case of parking lot, five basements have enough capacity to bring to client comfortable feeling of

parking, instead of enduring the parking shortage when living in the CBD area.

Economic attributes covered the prospect of rental and capital growth. When construction

process completed, 49,000 sqm of rental grade “A” office will be distributed to the city rental office

market and could reduce the shortage of rental office supply, with possibility decreasing the rental cost.

Physical and environmental attributes belong to internal criteria. These criteria focus on tenant

satisfaction and benefits. Meeting all the strict requirements and applying latest technology in green

construction theme, SGTMC illustrates all attractiveness to become the tenant’s best choice.

The next step forward is, therefore, to follow up the performance of the building after

construction stage and starting the some first activities. This landmark building is expected the new

success of owners, and more important this iconic architecture will raise the model of oriented-

environment protection design as a modern language of architectural engineering.

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5. BIBLIOGRAPHY

Ngoc Hung Thai, Chief of Architectural Staff. ”Architecture Design Explanation: Saigon M&C

Tower Project.” ATA Architects Co., Ltd. 2007.

Ngoc Hung Thai, Chief of Architectural Staff. ”Saigon M&C Tower Project: Architectural drawing

collection” ATA Architects Co., Ltd. 2007.

Hande Unlu, Kotaoh Hirate, and Munakata Jun. “Oppressive Impacts of High Rise Office

Buildings on Inhabitants through an Istanbul Case Study” (paper presented at the CTBUH 8th

World Congress 2008).

Peter de Jong and Hans Wamelink. “Building cost and eco-aspects of tall building” (paper

presented at the CTBUH 8th World Congress 2008).

E.Lau and K.S.YAM. A study of the Economic Value of High Rise Office Buildings. Hong Kong:

Hong Kong SAR, China. Kindle Version.

Jan Kunze, “The revival of high-rise living in the UK and issues of cost and revenue in relation to

height.” Master Thesis, University College London, 15 September 2005.

Marc Townsend. “Vietnam Real Estate Update and Market Overview – Indigestion in the

property market again. (Paper presented at the Vietnam Real Estate - Update and Market

Overview 2011 meeting, Vietnam, HCMC, April 4, 2011.

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Backgrounder on Cisco’s Smart+Connected Communication Initiative – Updated as March 8,

2011.6.http://newsroom.cisco.com/documents/10157/1142732/Cisco_Smart_Connected_Com

munities_Media_Backgrounder.pdf

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