Friday, October 22, 2010

Interview: Mr. Oh Se-hoon, Mayor of Seoul City

Over the past couple of years, Seoul Metropolitan Government has been working to make this city a favored destination for the international business community. The city has the advantage of a highly-educated human talent pool, high-tech industrial and social infrastructure, and information and transportation networks.
Excerpts of interview with Seoul Mayor Oh Se-hoon:
>>Over the past four years, Seoul has joined the ranks of the ten most global cities in the world. This achievement was possible based on the two-dimensioned governance of enhancing the citizens' quality of life and reinforcing the city's competitive edge.
-By creating over 738,000 new jobs and building a tightly-knit social safety net, Seoul could act as a sturdy pillar for the people even in the times of global financial crisis.
-By further purifying its natural environment, Seoul has raised its citizens' level of satisfaction in life.
Seoul's atmosphere has been at its clearest since it has been observed in 1995.
By creating more cultural and leisure spaces such as green fields and water parks around the city area, Seoul has provided an opportunity for its citizens to enjoy a pleasant day out in the open air without having to go outside the city.
-Through an innovative system reform, Seoul has been able to decrease the gap in wealth between the poorest and richest sectors in the city. Four years ago, the richest sector had 17 times more wealth than the poorest sector, now the discrepancy is down to 4.5 times.
-For two consecutive years in 2008 and 2009, Seoul was voted 'the city that most people want to visit' by the Chinese, Japanese and Thai people. It was also awarded the UN Public Service Award for three consecutive years.
Seoul was a finalist for the UN Public Service Award in 2008 for its Cyber Policy Forum. It won first prize in 2009 for the Seoul Water Now System and Seoul City`s Oasis and in 2010 for its Women-friendly City Project and Hope Plus Account.
-Creativity Governance, SHift, Women-friendly City Project are among some of the thirty-plus projects implemented by Seoul over the past four years that has caught the attention of the international society. These projects have already been benchmarked by other regional governments, the central government, foreign municipal governments and private businesses.
- In particular, according to a research by the Chinese Academy of Social Sciences, Seoul's competitiveness in the international society has risen from 27th in 2006 to 9th in 2010.
However, we will not be satisfied with this. By furthering these achievements and changes of the past four years, we are aiming to turn Seoul into one of the top five global cities in the world, beloved by both its citizens and the world.
- First, in addition to the five welfare projects that were implemented since the last electoral term for those in need, Seoul will expand its welfare net comprehensively into other social areas such as education, housing, daycare, culture and health.
In the first place, as an investment for Seoul's future, we will reinforce the public education sector and a custom-made daycare system.
- By expanding parks in residential area and water parks by the Hangang, we will work to turn Seoul into an even more pleasant and attractive city.
By building parks within a five-minute walk from all residential areas and cultivating the mountainous areas within the city, we will turn Seoul into a 'city within a park.'
Also, by creating cultural and leisure spaces besides Hangang, we will open the gateway to the West Sea (Yellow Sea) and rediscover hidden values of Hangang.
-In addition, we will focus on promoting new high value-added and growth-driving industries that will support Seoul in the future such as tourism and convention business, digital contents, design, fashion, finance and R&D.
We will continue to create a global city environment where global talents can gather to live and work with passion
>In order to become a global city where foreigners want to live in, the most basic requirement would be easy communication. Plus, there should be an attractive level of services such as education, medical care, culture and public services.
Seoul's globalization project was started in 2007. For the last four years, we have strove to create a 'communication' environment and a foundation for a comprehensive lifestyle of transportation, medical services, education and culture for foreigners to enjoy without any inconvenience.
- For example, Seoul Global Center provides services in seven languages including English, Chinese and Japanese, in helping foreign citizens in their everyday life. The center helps foreigners in daily tasks such as setting up mobile phones, bank accounts, credit cards, acquire driver's licenses and extending their visas. Further more, the center provides legal counsel in dealing with tax and labor issues.
- Seoul has designated seven parts of the city as 'Global Village Zones' as they are heavily populated by foreigners. These zones include Yeonnamdong with a big Chinese population, Ichondong where many Japanese live and Seorae Maeul where the French in Seoul are usually found. A 'Village Center' is established in each of these zones, acting as a public service center for the foreigners.
- Whenever a foreigner has a question concerning Seoul, he or she can dial '120' and get answers in five languages including English and Chinese. For medical emergencies, one can dial 1339 and be given information in three languages (English, Chinese and Japanese) about the nearest hospitals and pharmacies as well as medical facilities providing foreign language services.
If we continue to implement these projects in good faith,
- Foreign investors, foreign workers, international households and foreign students will be provided appropriate service and support so that foreigners and Seoulites alike can live in the city without any great difficulties and Seoul will become a beloved global city.
In particular, in order to build a city where Seoulites and foreigners can enjoy life without any difficulties, we will provide utmost support for international households -households where at least one of the family members are originally from outside Korea- to settle down and live comfortably in our city.
>Tourism is an industry that increases income and creates new jobs like no other industry. That is why so many advanced countries in the world are so intent on promoting their tourism industry.
- Seoul is also competing with these advanced countries and cities to promote our city as a tourist destination. We have been focusing on tourism as one of our major industries and have been concentrating on city marketing and attracting tourists since the last term.
As a result, Seoul's charm as a tourist destination is growing as can be seen in the fact that it was voted the place that most people want to visit for two consecutive years in Japan, China and Southeast Asia. In January of this year, it was ranked third by the New York Times in a list of 'places to go in 2010.'
According to a survey done by Seoul, 90.4% of the foreign tourists visiting Korea have visited Seoul. Their level of satisfaction in Seoul as a tourist destination is rising every year, from 79.1% in 2007 to 91.2% in 2010.
International tourism industries are also beginning to acknowledge Korea and Seoul as places one must visit.
- In July, 2010, the Chinese Academy of Social Sciences ranked Seoul 9th in a list of competitive cities.
- From 2008 to 2009, a AC Nielson survey showed Seoul was voted by the Chinese, Japanese and Thai as the place they wanted to visit the most.
- In January, 2010, New York Times ranked Seoul 3rd in a list of 'places to go in 2010.'
- In 2010, Seoul was designated the World Design Capital and a UNESCO City of Design.
In recent years, due to efforts led by Seoul to reform the visa system, a basis to tap into the Chinese tourist market, the biggest potential market of such in the world, has been formed.
- Also, Seoul is working at the moment with the central government on a legislation to expand tourist accomodations. If this law is legislated, it will improve the situation of accomodations for the growing number of tourists, providing new accomodations for reasonable prices to tourists.
Based on these achievements, Seoul is reinforcing its marketing overseas and developing diverse high-end tourist package products such as medical tourism and conventions. On the other hand, it is expanding and educating tourism-related staff and developing digital applications for information on Seoul tourism in order to make tourists feel more at home.
- In the past, tourism was mostly about enjoyment: appreciating the nature, relaxing and enjoying leisure time. Now, it's about experience: tourists want to experience culture and history, they want to attend exhibitions and conventions and participate in high-tech events.
- Tourism is becoming more integrated with other fields such as industry, history, culture, fashion, medical care, city design and architecture. Seoul will continue its efforts to develop diverse tourism policies according to this trend.
Seoul is aiming to become the best city in Asia to do business, tourism and shopping.
- In order for tourists visiting Seoul to relax, sightsee and shop at their ease, we will increase our accomodations, exhibition and convention facilities as well as shopping centers.
- At the same time, we will focus on developing integrated tourism packages connecting tourism with all other major industries of Seoul, such as design, information technology, R&D and exhibition/conventions.
- By making use of these tourism resources, Seoul will continue to market itself enthusiastically to potential tourist markets such as China, Japan, Southeast Asia, Europe and the Americas.
>Seoul is working in close cooperation with the central government in actively implementing its low-carbon, green growth policy. It is leading various related projects that are appropriate in the city's particular situation.
Enhanced achievements through an effective implementation of the central government's green growth policy.

-About half of Seoul's buildings are over 20 years old, meaning that there are a lot of energy being wasted. (Buildings take up 60% of all the city's energy consumption and 64% of the city's gas emission.) That is why Seoul is implementing a Building Retrofit Project(BRP.)
Since 2008, this project has been implemented first in the city and district government buildings and other public buildings. Similar projects in the private sector are being endorsed through a loan.
> By 2009, BRP on 76 public buildings and 50 private buildings, a total of 126 buildings were completed.
> The goal by 2010 is to implement this project on 18 firehouses and 100 private buildings.
At the C40 Summit Meeting held in Seoul last year, Seoul announced BRP as its representative project and the Clinton Climate Initiative (CCI) designated Seoul as a leading city in BRP.

-Lighting takes up 21% of Seoul's entire energy consumption. By distributing LED lighting, which has a longer life and higher energy efficiency, Seoul is trying to reform the lighting situation.
In hand with the central government's LED lighting plan (to equip 30% of the public buildings with LED lighting by 2012 and 30% of private buildings by 2015), Seoul is planning to equip 100% of its public buildings with LED lighting by 2020 and 80% of the private sector by 2030. It is also encouraging the use of LED lighting in new construction and BRP projects.
> A total of 18,333 lights in both government and private buildings have been changed to LED by 2009.
> By 2010, 6,963 lights from 14 buildings are to be changed to LED.


- Seoul is concentrating on supplying hydrofuel, solar and geothermal powers as appropriate new and renewable energy sources for the city. (The city's usage of new and renewable energy was 1.7% in 2009). Through policies such as making renewable energy usage compulsory for big energy consumers like buildings, Seoul is hoping to increase its renewable energy usage to 3.5% by 2014.
By 2009, solar and geothermal power is being distributed to 116 buildings.
Seoul is concentrating on hydropower, which is seen as appropriate for densely populated areas like the city. In May, 2009, it build the Noweon Hydrofuel Station of 2.4MW scale and in this September, it will build another 2.4MW sized hydrofuel station within the World Cup Park.
Also, in accordance to the central government's '1 million Green Home' project, Seoul will encourage households to use private hydrofuel batteries, bring the number of such households to 100,000 by 2030.
In particular, the 11,353 households in the Magok Development District are to get 56.5% of their energy from biogass, hydrofuel and reused resources.



-There is a simple, immediate and effective way for green life to take place without additional facilities or technologies. It is for citizens to voluntarily save energy, water and gas. Seoul has been implementing the Eco-mileage System since September 2009. This is an incentive system that pays the citizens back as much as the greenhouse gas emission they've worked to decrease.
By the end of this August, a total of 290,670 establishments (270,270 households and 20,400 organizations) were participating in this system and Seoul is trying to get 1 million establishments to participate by 2014.
In the future, buying eco-friendly products and using public transportation will also earn participants mileage points and these points will be used as cash when using public transportation or public cultural facilities.
Seoul style Green Policy


-In order to combat air pollution and climate change, Seoul is leading the way in distributing eco-friendly green cars. It is working towards the central government's aim to become one of the world's fourth largest green car nations and for the four years of the mayoral second term, Seoul will provide 30,000 green cars and 8,000 charging stations around the city. To encourage citizens to use green cars, Seoul has recommended the central government to provide financial support to households buying green cars and businesses establishing charging stations.
Groundwork for a Neighborhood Electic Vehicle(NEV) to take to the streets has been completed by this April including designating roads for possible passage.
25 NEVs are currently being used park patrol cars and public vehicles.
Development on electric buses has been completed in partnership with the manufacturer to the stage of test driving in this June. Fifteen of these buses will be operating by the end of this year and 53 charging stations will also be established for these buses.
Work on electric cars, hybrid buses and electric taxis are also undergoing.
228 models of two-wheeled electric vehicles with low levels of emission will be distributed by the end of this year for demonstration and if yielding positive results, 50% of motorbikes used for delivery in the city will be replaced by these vehicles by 2014.



-A voluntary program where citizens are encouraged to leave their vehicles behind for one designated day a week has been implemented to save energy.
About 76% of Seoul's air pollutants and 27% of gas emission comes from vehicles.
The No Driving Day program is a voluntary program as never found in a city before. It was started in July 2003 and some 1 million cars (about 40% of the relevant cars in Seoul) are participating in it.
The central government has also acknowledge its effectiveness and is expanding it to other cities around the city with a population larger than 500,000 from 2011.



-In order to reuse the metal resources from disposed household electronic appliances and to dispose of the appliances in an eco-friendly manner. Seoul has started a 'City Mining Project' business since June, 2009.

Since the creation of a SR Center last December until this August, 1,572 tons of disposed household appliances and 426,000 mobile phones were treated. This center also created 61 new jobs, 49 of which went to the social needy.
After Seoul's example, the government cabinet meeting decided to establish a similar plan in August, 2009 and a plan to reuse disposed metal resources was established this March by the Ministry of Environment. The Ministry of Public Administration and Security also set up a "Regional Plan for the Reuse of Disposed Metal Resources" and have cited Seoul as an example to cities around the country.



In order to teach the importance of environment conservation to elementary school students, the future generation of the city and to expand a lifestyle of low-carbon and green growth, Seoul is developing and distributing education courses and textbooks according to the age level of children.
Since 2009 to this September, Seoul has developed an education booklet according to the syllabi of all grades in elementary school called "Let's Create a Green Seoul together with Hwani and Gyeongi." This booklet has been distributed to all 1st to 4th graders in elementary schools in Seoul (420,000 students in total).
As of now, textbooks for 5th and 6th grade are being developed and by 2011, all grades of elementary school will receive education in taking care of the environment.

Seoul will continue to cooperate with the central government, civic society and other partners to achieve a synergy in the implementing of green policies.
>>Seoul is exempting foreign businesses from national and regional taxes up to a period of 10 years. It is also providing these businesses with government-owned land for a low cost either for sale or long-term rent. Foreign businesses are also provided with financial support in hiring and educating employees as well as research. Seoul is also providing a long-term loan for investing in facilities. It is creating a new fund of 200 billion won (18 million USD, 13 million Euros) for foreign invested businesses and working improving related systems and regulations.
-In order to improve the life quality of foreign investors and their families living in Seoul, Seoul is continuing to invite famous, private schools from overseas, such as Dwight School, to set their campuses in Seoul. Seoul is also building rental housing for foreigners and medical clinics for foreigners. It is also setting up announcements in foreign languages in public transportation as well as signboards for foreigners on the streets. All in all, Seoul is trying to make itself a city where residing foreigners will have no problems in education, housing, medical care, transportation and all other areas.
-In particular, Seoul has set up Global Center in major parts of the city where foreigners can visit to get consultations and solutions to the problems they encounter as they live in the city. There are over 10 Global Centers in Seoul as of now where foreigners can go to ask advise on various fields such as living in Seoul, tourism and business. Seoul is planning to expand the number and functions of these global centers in the near future.

Monday, October 4, 2010

Interview: Mr. Erwin Stouthamer, Principal, Composition Capital Partners,

In the 2009 PERE LP Survey, Composition Capital Partners BV is the only General Partner listed as particularly admired for its thorough work and transparent communication The company has an extensive network in Europe, Asia and the US, built up over a period of twelve years. The members have strong direct real estate experience and in addition to their network, bring a broad range of skills in deal structuring, due diligence and investment monitoring. The cultural diversity of the company not only provides it with local insights, but also helps us better appreciate and understand the cultural and behavioral aspects of the markets.
Mr. Erwin Stouthamer, Principal, Composition Capital Partners:
>>Composition Capital Partners is a real estate investment management company which was founded in 2005. Prior to establishing the company, our senior management had been investing in US, European and Asian real estate markets on behalf of a large Dutch pension fund for over a decade. We specialize exclusively in Fund of Funds real estate investment structures investing with local operators through joint ventures, club deals, secondary transactions and (smaller) funds. In this way, our investors can access a real estate portfolio which is diversified in terms of managers, strategies, real estate sectors and locations. Compositions Asia Fund I was the first Fund of Funds to be launched in Asia. Our company currently works with 20 institutional investors from Asia, Europe and the US.
We have chosen to operate as a private and independent boutique firm. Our company is owned by four principals and employs 17 people in Hong Kong and Amsterdam. We are proud to have an experienced international professional team dedicated to providing a high quality of service to meet investors needs. Composition was recognized in the Private Equity Real Estate Limited Partner Survey 2009 (PERE LP Survey 2009) for their thorough work and transparent communication
Composition values its relationships with its investors and investment partners. We believe in taking the time to understand our investors requirements & ambitions and in maintaining open relationships & dialogues. We have created a substantial network of potential investment partners through our active local presence and visibility in individual real estate markets. We again believe in taking the time to understand fully the ambitions and motivations of investment partners to ensure the needs of our investors are realized. Our company has held positions on the boards of various real estate industry bodies, including Inrev, the European counterpart of Anrev, the Asian private equity real estate industry platform.
>>Our investment strategy has always been to work with the best in class local partners in accessing the best real estate deals, with a focused mandate involving clearly identified investment, operation and divestment parameters and strategies, with suitable risk management in securing returns for our investors.
With our local teams and knowledge of the markets, we believe the markets in Asia and Europe offer diverse opportunities with different time horizons and risk exposures. In many markets access to debt has become harder for many players, which we see as a great opportunity. For example, we recently have invested into recapitalization strategies in Germany and Japan involving preferred equity positions in mezzanine type arrangements where capital structures are frozen. We also have invested in value-add opportunities in the UK and Hong Kong, involving refurbishment, repositioning and stabilization of assets to yielding products for core type buyers.
>>Our company was founded on over a decade of experience and an extensive network of personal contacts in international real estate investment markets. We capitalized on this initial solid base of experience and personal contacts to build a source of reliable managers and deals for our investors. We have always believed in accessing local platforms with strong teams, alignment, deal-sourcing and execution, so maintain close contact with the local real estate markets we invest in on behalf of our clients. We believe our proximity and understanding of local managers makes us better placed to select the quality managers on behalf of our investors.
Composition has been in the Fund of Funds market since this market's inception. Our sole activity since being founded has been management of Fund of Funds. We are one of the few independent managers with a dedicated and focused product in the market. Our Asia I fund, headed by Composition's Director, Bill Shaw in Hong Kong, was the first Asia real estate Fund of Funds on launch, in 2005. Our employees, representing 10 different nationalities, have a wealth of experience in real estate development, asset management, private equity, research & consulting, and institutional investment.
We are also unique in that we have taken the lead and seed investor role in several established local platforms in fund and joint venture structures. We are one of the earlier players working in direct partnerships with local players, taking a very active role in structuring platforms with our partners and also in working closely with them through to exit stages. We believe our partners appreciate our local knowledge and resources, where our input is respected and where we sit on the advisory boards of all of our investments.
>>Composition has been investing in Korea through our fund of funds platform since 2005. Prior to the establishment of Composition, various principals and employees had been actively involved in Korea in previous roles as early as 1998. We believe the long term fundamentals of the Korean economy and its real estate markets offer interesting opportunities for our investors. We already participate in a Korea-only fund vehicle and, in addition to other potential fund investments; we are currently considering joint ventures and co-investments in Korea. We are especially attracted to the value-add opportunities which involve the repositioning, refurbishment, and stabilization of both office and commercial assets that can yield an attractive return to our investors, and upon exit, to core/core-plus buyers.
In additional to our investment activities in the Korean real estate markets, Composition is exploring opportunities to provide Korean institutional investors access to both Asian and European markets as investors in our Fund of Funds.

Monday, September 27, 2010

Interview: Mr. Jeremy Stewardson, Executive Director, ANREV

The Asian Association for Investors in Non-listed Real Estate Vehicles (ANREV) is the sister organisation to INREV in Europe. It seeks to generate increased levels of liquidity within the Asian private real estate fund market through promoting greater transparency, accessibility, professionalism and standards of best practice. As a regional body, it strives to provide a platform for the sharing and dissemination on the non-listed real estate fund market.
ANREV now has 57 member companies in eight countries. ANREV’s agenda is driven by the members, in particular the investors, and is focused on improving transparency and accessibility of market information, promoting professionalism and best practices, sharing and spreading knowledge.
The objectives are being achieved through implementing research projects such as the Investment Intentions Asia Survey, an Asian vehicles database as well as through promoting industry standards and sharing best practice through regular events.
ANREV membership is dominated by Institutional Investors and supported by fund managers, investment banks and other real estate market participants.
In January this year, Mr. Jeremy Stewardson was appointed as Executive Director of the Association. He has held various senior positions in the Asian and European commercial real estate markets, since starting with Jones Lang Wootton in Hong Kong in 1978. After 23 years with the international property consultancy in it’s Hong Kong, London, Berlin, Frankfurt and Bangkok offices, he undertook a number of Asian commercial property roles, latterly as Chief Executive of the managers of Champion REIT, Hong Kong’s second largest Trust. Mr. Stewardson is a Fellow of the Royal Institution of Chartered Surveyors.
Excerpts of interview:
>>ANREV is a non-profit association of institutional investors in private property funds . It draws it’s membership from Pension Funds , Insurance companies , Sovereign funds and Family offices , their Fund Managers and Service Providers . It is related to INREV in Europe . It’s members get together to transfer industry knowledge and best practice – all this with the aim of improving transparency in the global industry and hence accessibility for further investors .
>>For us , Korea is one of the key Asian markets . Along with Australia , Japan, Hongkong and Singapore , it has become an important pension fund and insurance industry participant . To ensure sustainable investment return levels , the Korean industry is now looking to overseas property markets as well as it’s own , just as the Dutch industry did 25 years ago . By the same token , other global pension and insurance industries are diversifying into the Korean market .
So our role is to contribute to improving communications , understanding and standards in global markets for our members , to facilitate sustainable cross-border investment accessibility .
>>There are 3 legs to our Associations out put . Firstly, Research: we research our industry , the participants , the products , the volumes ,the flows and the issues and feed the analysed results back to our members . We will be launching our on-line database of non-listed property funds in Asia later this year – this database is being developed along the lines of the INREV database in Europe .
Secondly : best practice standards . We promulgate the INREV-produced Guidelines for Fund establishment and management around Asia Pacific , with supplements being produced to reflect different circumstances in the individual markets. We will be providing Implementation Workshops for members next year .
Thirdly : communications . We hold Roundtables, Briefings and Workshops on strategic and technical issues facing our industry in Australia, Japan , Hongkong and Singapore – Korea is being added to this circuit.

Friday, September 17, 2010

Interview: Mr. David Martin, Head of Retail, Commercial Property,Hongkong Land Ltd.

Founded in 1889, Hongkong Land has interests across the Asian region. In Hong Kong, the Group owns and manages some five million sq. ft of prime commercial space that defines the heart of the Central Business District. In Singapore, it is helping to create the city-state's new Central Business District with the expansion of its joint venture portfolio of new developments. Hongkong Land's properties in these and other Asian centres are recognised as market leaders and house the world's foremost financial, business and luxury retail names.
Hongkong Land also develops premium residential properties in a number of cities in the
region, not least in Singapore where its 77%-owned listed affiliate, MCL Land, is a
significant developer.
Hongkong Land Holdings Limited is incorporated in Bermuda. It has a premium listing on
the London Stock Exchange, and secondary listings in Bermuda and Singapore. The Group's
assets and investments are managed from Hong Kong by Hongkong Land Limited. The company is a member of the Jardine Matheson Group.
As noted by Mr. David Martin, Head of Retail, Commercial Property,Hongkong Land Ltd., besides Hong Kong and Singapore, the company has also subtantial interest in expanding its operations in mainland Chinsa and other parts of Southeast Asia.
“The company has a very narrow focus, being interested only in high-end retail and office sites. For this reason, while we have been looking for opportunities in Seoul which is a very interesting market. All our major tenants operate in Korea. Furthermore the luxury brands market is huge, as also the financial institutions. Hopefully, we will invest soon,he said.
Within the overall commercial property portfolio of the company, retail accounts for a 20 percent, both in value and space. Specifically in Hong Kong, the share of both the retail and office space is even, he said.
Mr. Martin noted that the retail market has a huge potential in mainland China. HLL is interested in Beijing, Shanghai and other cities, but is facing difficulty in finding key sites which are generally expensive, political and in demand.
“In Hong Kong, we are hugely helped by the massive increase in mainland visitors in the past 5 years. There is growing prosperity in China and the peoples ability to shop has increased with rising incomes. This has helped the retail business and office space. Morover, many Russian and other international companies are also investing in Hong Kong, which is a very positive development.”
Speaking on HLL's performance in the first half of this year, he noted that despite ongoing economic uncertainties, demand for office and retail space in Hong Kong's Central district in the first half of 2010 was relatively robust. In addition, the Group recognised significant profits from two of its Singapore residential projects, Marina Bay Residences and Waterfall Gardens, upon their completion.
Vacancy in the Group's office portfolio in Hong Kong stood at 4.2% at 30th June 2010.
Average rents remained stable and rent reversions were largely neutral. The retail portfolio
in the Central district was fully leased.
In Singapore, there was growing demand from financial service companies for quality office
space in Marina Bay. As a result, achieved rents were relatively firm despite the new supply
of commercial space being built. Construction of the Group's joint venture development,
Marina Bay Financial Centre, continued on schedule. The first office tower is now
completed with the second due by the year end. Both towers, which comprise a total lettable
area of 159,000 sq. m., are almost fully let. Construction of a 122,000 sq. m. third tower is
underway with completion expected in 2012, of which 55% is already committed.
Marina Bay Financial Center, Singapore's first mixed-use development that successfully integrates residential, business, retail and entertainment facilities, will be fully completed in 2012. Those in the area will not only have the convenience of having 176,000 square feet of retail space at their doorsteps, they will also enjoy MBFC's connectivity, with direct access to two MRT stations via the subterranean mall. In addition, the mall offers tenants an immediate
patronage of 64,000 residents and professionals living and working within the MBFC
vicinity.
The second residential tower of the Marina Bay project, Marina Bay Suites, which will be
completed in late 2013, is selling well with almost 60% of the 221 units sold.
MBFC is being developed by a joint venture Cheung Kong (Holdings) Ltd/Hutchison Whampoa, Hongkong Land and Keppel Land, and managed by Raffles Quay Asset Management (RQAM). The tenant-centric design of this purpose-built financial centre combines the best in form and function, making it a key draw for businesses and befitting Singapore's position as a global financial hub.
MBFC offers a breathtaking blend of three distinguished office towers with nearly 3 million sq ft of Grade A office space, two residential towers comprising 649 luxury apartments and penthouses as well as approximately 176,000 sq ft of retail space to meet the daily convenience of our business community and residents.
MBFC achieved the Green Mark Gold for its office towers 1 & 2, Marina Bay Residences and Marina Bay Suites and the Green Mark Gold Plus for its office tower 3 conferred by the Building and Construction Authority of Singapore. This award recognizes the efforts made by the developers to encourage sustainable design practices, and makes MBFC one of the few developments to win more than one BCA Green Mark award.
The Group's joint venture in Jakarta commenced construction of a 61,000 sq. m., 30-storey
tower within its existing office development in the city, due for completion in 2012.
He noted that the contribution from residential property was significant during the period. The launch in February of MCL Land's project, The Estuary, was well received and all 608 units have been pre-sold. During the period, MCL Land acquired an additional site for future development.
The Serenade in Hong Kong is due to complete in the second half of the year, and
approximately a third of the apartments were sold by the end of June. The profit arising on
sale of apartments in Tower 4 of the 47%-held One Central Macau will also be recognized in
the second half. The Group has announced the launch of 92 branded apartments to be sold in
One Central Macau, which will be managed by Mandarin Oriental following the opening of
its 213-room hotel in late June.
The One Central Macau, is a groundbreaking mixed-used project for the city combining luxury residential, hotel, serviced apartment and retail facilities on a sprawling waterfront site in the scenic Nape Area.
The opening launched a new era in Macau's shopping scene as international brands opened the doors to their luxury duplex and triplex shops, all of which provide discerning shoppers in Macau with the same convenience and quality they have come to expect from CENTRAL ine Hong Kong and other fashion capitals such as New York and Paris. The list of tenants at One Central Macau includes brands like Louis Vuitton, Hermes, Gucci, Fendi, Ermenegildo Zegna, Dolce & Gabbana, Dior, Cartier, Bvlgari and Burberry, among many others. Many have opened their first, largest or flagship stores in the 400,000-square-foot, three-level shopping mall. The 200,000-square-foot site is uniquely positioned in the heart of the city on Nam Van Lake.
With a full panoramic view of the waterfront, One Central Macau comprises seven residential blocks of 32 to 38 storeys each as well as an iconic tower designed by world-famous architect Kohn Pedersen Fox, which houses the Mandarin Oriental, Macau and the most unique serviced apartments in the city. In addition to the architecturally innovative mall's prime waterfront location and impeccable list of tenants, One Central Macau is also directly linked to the MGM GRAND Macau, already an award-winning lifestyle destination.
“One Central Macau will offer shoppers the ultimate retail and lifestyle experience, with access to entertainment, fine dining, upscale residential buildings, the Mandarin Oriental Hotel and Serviced Apartments, and leading lifestyle and gaming destination MGM GRAND Macau,he said.
Another phase of the joint venture development Bamboo Grove in Chongqing comprising
261 townhouses, all but two of which have been sold, is scheduled for completion later this
year. A further 427 units, including high rise apartments to be completed in later years, were
released to the market and 254 had been sold by the end of June. In Beijing, sales continued
at Maple Place, while development work on the Group's other projects continued. Recent
government measures to dampen the market have led to reduced sales throughout the
country.
Mr. Martin noted that during the rest of the year, Hong Kong and Singapore commercial property markets should remain stable. The second half result will benefit from the completion of additional residential units although the contribution will be less than in the first half with no significant completions in Singapore.