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TEHRAN WORLD TRADE CENTER
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PARDIS TEJARAT P A R D I S
T E J A R A T
TEHRAN WORLD TRADE CENTER
Introduction In January of 2014, “Pardis Golestan Tejarat Company” announced a Concept and Development study to explore the potential viability of a high-rise and mix-use building development project, in a valuable property in the CBD(Central Business Districts) of Tehran, possibly operate as the World Trade Center for Tehran. The Concept was named “Pardis Tejarat” for this 69 story building. “Pardis” means Paradise and “Tejarat” means trade. Therefor the name means “Trade Paradise” and nominated to be the first World Trade Center for Tehran. The study was the product of an exceptional collaboration with colleagues at the Tejarat Bank corporate real state department; wide-ranging discussions among experts; detailed research and analysis by consultants that mainly included a famous local architectural consultant, called EBA-[M] and other experts in the field of construction economy; conversations with outside colleagues and experts from a wide array of fields, including chamber of commerce; and input from ministry of industry, mine and trade. An estimate in final stages of the study placed the total cost of the project about 1,700 million USD, or 3,450 USD per square meter, including land purchase and construction permit fees. However, the tower›s total estimated construction budget would not be more than 1,150 million USD (or 2,280 USD per square meter), but making it the most expensive office building in Iran. The result of the study was so embracing for the stakeholders, to convince them to decide to proceed to the next stage: development of an architectural concept and schematic design for the project, in order to clarify different aspects of the project in more details. This summary is based on the results of the study so far, to present to potential investors, and to invite them to invest on this exceptional project in Tehran. It includes a brief economical history of Iran, a comprehensive analysis of Tehran economic figures, a mission and building program proposed for the building, a brief market study, preliminary financial appraisal, followed by a series of conclusions.
C O N T E X T
WHERE
In the early 20th century, high-rise development was a symbol of progress and modernity. Tall office buildings, hotels and residential buildings were an expression of a new style of living and technological potential, and they were becoming incorporated into the panorama of big cities, although Iran cultural backgrounds, especially the after Islamic revelation, stayed conservative to this idea for the past three decades. However, recent experiences in high-rise development in Tehran shows that, as far as the creation of property value and spatial order are concerned, high-rise development is a helpful solution, If it is applied with proper study and enough care. Despite this fact, getting a highrise development permit in Tehran is very complicate and rare. “Pardis Tejarat� in its class, has a quite exclusive construction permit, thanks to a detailed study of a group of consultants and expert engineers, and visionary authorities of Tehran City.
Tehran Tehran is the largest metropolis in Iran and is also among the 25 largest metropolitan regions worldwide in terms of population (ranking between Rio-de-Janeiro and Guangzhou). Tehran City covers 614 km2 and is divided into 22 regions . The city’s population of 12.3 million (as of 2012) accounts for 16% of the total number of residents in Iran. Over 2007-2014, the capital’s population growth (1.4% per year) was somewhat faster than in the rest of the country (1.1%). Between 2014 and 2020, Tehran is expected to sustain a similar growth pace and reach 13.2 million inhabitants in 2020. The most recent strategic plan of the city was developed at the beginning of the 21st century. The expansion of public transport was prioritized and metro construction received substantial efforts from the government. The city also increasingly saw the construction of high-rise buildings in its northern districts. The Central Business District (CBD) of Tehran is primarily clustered in two of the 22 regions of the Tehran core urban area, namely regions 12 and 6. The intense economic activities of the CBD are reflected in the significant commuter population that enters the area. Region 6 in more developed and benefits from better infrastructures, while the Region 12 has old “Grand Bazaar” of Tehran in its heart . On the other hand, the CBD of Tehran does not have enough A-class office buildings, and most of companies located in these areas are using “Class B” or “Class C” offices, re-furbished from old residential spaces. The Metropolis of Tehran has a massive network of highways (503km) and of interchanges ramp & loops (402km). Region 6 of Tehran, as the central business district, has three major highways in north, west and east borders. The southern areas of this district, which is near to old district 12, do not have any access through highways. There are also two main highways in the Region, which crossed each other at the project location.
Significance of Tehran Tehran is the political and economic center of Iran. Within Iran, Tehran serves as a key center for science and research, with over 300 universities and higher education institutes found in the city. Educational levels in Tehran are above the national average, which is particularly important in driving the city’s business services. Tehran also has a well-developed infrastructure, which is beneficial for the city’s commerce activities. In particular, Tehran’s extensive system of motorways is considered unrivaled in western Asia. Tehran labor productivity (or GVA per employee) exceeding the country’s average by 48% in 2014. The city derives its economic strength mostly from developing as a key center for science and research and from its relatively well developed infrastructure. Between 2007 and 2012, labor productivity increased by an impressive 22% in Tehran (in constant 2012 prices).
Tehran’s advantage in labor productivity over the rest of Iran is a principal factor behind the 49% higher average annual disposable income per household in the city, as of 2014. However, reflecting the economic sanctions imposed on Iran by the international community, the household income level decreased over 2007-2012 and is forecast to increase again based on the nuclear agreement. Thanks to greater income per household in the capital, consumer expenditure per household (excluding housing and transport) was 30% above the country’s average in 2014. However, lack of afford-ability in residential real estate decreases the budget for discretionary spending in Tehran. Tehran’s residential property is the most expensive in Iran and the city is twice as reliant on personal cars as the remaining country. This makes living in Tehran relatively less affordable compared to the rest of the country: Consumer expenditure on housing and transport (measured per household) was 58% higher in the city in comparison to the rest of Iran in 2014.
Economy of Tehran With a GDP of 135 billion USD in 2012 (accounting for 24% of Iran’s total), Tehran trails only the cities of Abu Dhabi (US$217 billion), Riyadh (US$188 billion) and Doha (US$154 billion) in the Middle East. At the same time, Tehran considerably overshadows other capital cities of the Middle East, such as Amman (US$20 billion). Industry : The industrial makeup of Tehran differs significantly from oil- and manufacturing-driven Iran. In 2014, services constituted 76% of the city’s economy, with business services and commerce playing a principal role. In comparison, the tertiary sector accounted for only 40% of GVA in the rest of Iran, in the same year. This contributes to Tehran’s labor productivity (or GVA per employee) of US$36,000 being 48% higher than in the rest of Iran. Within Iran, Tehran serves as a key center for science and research, with over 300 universities and higher education institutes found in the city. Educational levels in Tehran are above the national average, which is particularly important in driving the city’s business services. Tehran also has a well-developed infrastructure, which is beneficial for the city’s commerce activities. The city is also an important railway hub in Iran. Tehran is the distribution hub of goods for the country. Accounting for 16% of the country’s population and 25% of Iran’s total consumer expenditure, Tehran is the most important wholesale hub and retail market in Iran. Bazaar, traditional Iranian markets, are important channels for the exchange of merchandise, foodstuffs and services. In Tehran, there are bazaars for watches, clothing, jewelry, toys and household products. The Grand Bazaar in southern Tehran is one of the most important points of retail in Iran, with an approximate length of corridors of over 10 km. Business Services: Business services are notably more developed in Tehran than in the rest of Iran. In 2014, their respective GVA shares (Gross Value Added share) coming from business services made up 34% and 11%. In fact, more than half of national sectoral production originates from Tehran. Financial activities particularly stand out within Tehran’s business services. The state-owned Bank Melli Iran (BMI), headquartered in Tehran, is the largest commercial bank in the Middle East. Other major banks based in the city include Bank Mellat and Bank Tejarat, a modern commerce-oriented bank, manages an extensive network of branches, joint ventures and regional offices in Europe, and the Middle East. The city also serves as home to the Tehran Stock Exchange. In real terms, Tehran’s GDP grew at an annual average of 6.6% between 2007 and 2011. Tehran’s more diversified economy helped it endure the crisis-stricken years of 2008 and 2009 fairly well compared to other cities in the Middle East. In fact, while most of the world cities experienced severe consequences of the economic downturn, Tehran managed to reach GDP growth of almost 14% in 2009. Tehran’s economic growth is anticipated to be high during the coming years, also. Over 2015-2020, the city’s real GDP is forecast to increase more than total average of the country, by 1.6% per annum.
PA RD I S
T E J A R AT
WHAT
Iran is preparing for
Take-off
Experts agree that the signing of a comprehensive nuclear agreement and the consequent lifting of external sanctions will have a positive impact on the Iranian economy. Although Iranian and Western stakeholders had different expectations on how quickly the sanctions would be lifted, the psychological boost already generated by a comprehensive deal is enough to create a significant economic momentum. Fact is that Iran will be in a very better position to materialize its economic potential. Now, Iran is the world’s 18th-largest economy, and the 3rd in the region. Iran, unlike its richer Arabian neighbors, is not only an oil-soaked renter state, but a regional power with an industrial economy and lots of educated people who actually work. The supreme leader, Ayatollah Khamenei, has set a target of 8% average annual growth for the next five years, up from its current 2.5%. Most experts reckon that, within a decade, Iran’s GDP might surpass that of Saudi Arabia and Turkey, the regional economic powerhouses, and rank the number one in the region. The population of 80 million is well-educated; and the country’s oil and gas reserves are huge. The Tehran stock exchange is the second-biggest in the Middle East, with a capitalization of about $150 billion, according to Turquoise Partners, the first foreign investment fund dedicated to Iran. But at the end of 2014 foreigners owned only 0.1% of listed companies’ shares, compared with 50% on Turkey’s main exchange in Istanbul, which will make Tehran as a hot spot for international investors. Iran ought to be able to attract much more foreign direct investment, given its size. One estimate puts Iran’s pent-up need at over $1 trillion. In the next five years the country needs an estimated $230 billion-$260 billion of investment in oil and gas, and other interesting sectors according to experts. Iran is preparing for take-off.
PARDIS TEJARAT “PARDIS TEJARAT”, a landmark high-rise building in the heart of Tehran, as a symbol of new era of international collaboration in Iran, developed by the “Pardis Golestan Tejarat Co.” , With support of “Tejarat Bank” and the municipality of Tehran, could be an exciting prospect . Iran is a thriving nation of increasing importance in Middle East and throughout the world. With its cohesive society and dynamic culture, Iran has the capacity to actively participate in the world’s trade and economic growth, and to promote the international business collaborations, and other manifestations of the business culture of the nations. “PARDIS TEJARAT” as the World Trade Center of Tehran, will serve as a bridge between East and West. This 280m tower located at the heart of Tehran, the heart of Iran and the heart of the Middle East region. Tehran is a dynamic city that will continue to grow in the coming years. “Pardis Tejarat” will act primarily as a trade center, and with near 140,000 square meter of prime office spaces, would host most of international companies willing to be active in this huge market .The project also consists of a high quality hotel, and further commercial, recreational, and cultural spaces. The city’s 2012 master plan lays out Tehran’s vision for a smart, rich, and vibrant urban structure. A world trade center – Tehran, could advance the master plan’s goals by acting as a hub and a gathering place for international business people, helping to make Tehran legible for international companies to invest, while improving quality of life for locals.
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“PARDIS TEJARAT� is a high-rise development project on a private owned property located in north-west of the 6th region of Tehran, one of the best locations of the CBD of Tehran. The land is about 34000 m2 right now, directly accessible from Kurdistan and Hakim Highways of Tehran, two main motorways of the district 6 and Tehran. The 6th district of Tehran is ended from the northern, eastern, western, and southern sides to Hemmat Highway, Modarres Highway, Chamran Highway, and Enqelab Street respectively. This district with the total area of 45 hectare, owed 2.3% of Tehran City. In line with Tehran`s development, beside region 1 and 3, region 6 is one of the modernist regions.
140,000m OFFICES 25,000m LUXURY HOTEL 30,000m FINANCIAL CENTER 25,000m SHOPS AND RESTAURANTS 10,00m CONVENTIONAL CENTER 11,000m RECREATION CENTER 2 2 2 2 2 2
Installation level Hotel’s restaurant observation deck ٢ ٥star hotel Hotel’s lobby Special office Coarse office (macro office) Sky lobby zone ٣ observation deck ١ Installation level Microlithic office (micro office) Sky lobby zone ٢ Installation level Coarse office (macro office) Office's dining room Sky lobby zone ١ Installation level Sport center Commercial ( banks and exchanges) Art center auditorium Commercial ( chartered brands) Medium halls Hub Cultural lobby Comercial (Cafes & restaurants) Dock Exhibition Parking Powerhouse
140,000
m2
OFFICE SPACES Offices are main parts of Pardis Tejarat complex. Proper light, quick and easy vertical circulation and quick evacuation are priorities. There will be open offices as well as classic office units. The exact dimensions will be determined after market analysis before operation of the building, therefore it is desired to have flexible plans. Some parts will be allocated to VIP offices. VIP offices should have direct access and services for management sector of the complex of for administrative parts of WTC, and will include open offices and classic office units.
280ROOMS 5 STARS HOTEL Customers and occupants of Pardis Tejarat are provided with a five star hotel for short-term accommodations in Tehran; So definitely, residing in the highest level of the city would bring great attraction for the guests. Moreover, due to numerous events being held in Pardis Tejarat, this complex is expecting to host many international guests during the year. Following case studies and also considering the context of the project (Tehran), This hotel is desired. The hotel will be a luxurious commercial hotel. Main users of the hotel will probably include users of the office sector and their clients although it will serve public users as well. The hotel will be located on highest floors of the complex. At this moment for such a hotel 280 rooms is predicted.
30,000
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FINANCIAL CENTER This center will focus on commercial,financial and economical issues ; and Branches of different banks and financial institutions are occupying most spaces here. Safety deposit boxes, exchange facility centers and private financial enterprises can provide the most prestigious services for customers.
+700
CHAIRS
7 RESTAURANTS This center will focus on commercial,financial and economical issues ; and Branches of different banks and financial institutions are occupying most spaces here. Safety deposit boxes, exchange facility centers and private financial enterprises can provide the most prestigious services for customers.
+20
PRESTIGIOUS SHOPS Shops and Stores of Pardis Tejarat , with more than 4000 m2 footage , would host renowned international brands . Provided by recreational and service areas, along with being at the most prominent tower of Tehran in downtown, could be a considerable guarantee for those purchasing these units.
10,000 m
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CONVENTION CENTER Pardis Tejarat 's Convention Center is the preeminent destination for meetings, conventions, trade shows, and exhibitions .This Center is located in the heart of Tehran , is easily accessible by car, metro, taxi, and bus. The residents of Tehran would be highly benefited by being informed of the latest cultural , Economical , and art achievements via their presence in cultural Hearth of Pardis Tejarat. Artists can exhibit their collections in an international space.
11,000 m
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RECREATION CENTER The Recreation center of Pardis Tejarat provides the members and their families with secure atmosphere, preserving their dignity. 24-hour service of this center, easy access and enjoyment of both sport equipment and experienced coaches would be the best guarantee for the health of occupants.
P RO J E C T
S TAT U S
HOW
www.pgtejarat.com
Pardis Golestan Tejarat Co. (Client) “Pardis Golestan Tejarat” (PGT) was established in 2012 and is a “project company” dedicated to management and development of “Pardis Tejarat” project. The company is a joint stock private company, registered in Tehran, and affiliated to Tejarat Bank. Tejarat Bank, is one of the greatest banks in Iran, has an effective presence in the domestic, regional and global markets. Tejarat bank is the owner of the property. Activities which are completed by the company till now, includes all land development tasks, site analysis, feasibility studies, traffic studies, Geo-technical surveys, preliminary design studies, purchasing and integration of necessary neighboring properties into the site and permit/zoning applications and payment of all legal fees for the project. Total investment by the company, so far is about 578,000,000 USD for this project. PGT is proud to announce that a per-construction permit for the project has been issued by local authorities and the municipality of Tehran. The company has already paid 237,000,000 USD to the municipality of Tehran to cover all legal fees and duties and no further payment is necessary for the final permit. Now the company is planning to prepare the project for design and further construction period, and making the project ready for investors to enter. Total investment required for the project is estimated at 3,900,000,000 USD.
Land integration All activities regarding land integration is finished, and a total useful amount of 28,800 square meter of land is in the project property. Purchasing and integration of other neighboring lands is also possible, if necessary.
FEASIBILITY STUDY A complete Pre-feasibility study, full land mapping, congestion studies, geology and Geo-technique studies, seismotectonics, and the other basic studies have been completed accordingly. Pre-feasibility study of the project is completed by EBA-[M]. The congestion studies are being done by the Italian company named Systematica. Geo-technique, soil mechanic, hydrology, and the primary geologic studies are being done by Sano Company. A group of international experts, is responsible to study seismotectonics and special spectrum, which their task will be completed in near future.
Traffic Infrastructure Traffic impact assessment study of the project is done by an Italian based company, called Systematica. Based on their experiences in international high-rise projects, they suggested all site access roads and parking lot calculations. Access roads includes ramps and loops from Kurdistan and Hakim highways to the site directly.
Construction Permit All governmental and legal fees are paid, and a Pre-construction permit is obtained . Old Properties Demolish and Workshop Equipment Permit: has been issued. Signed Agreements With Region 6 Authority : municipality will cooperate in license issuance and all construction permits. Legal authority (Commission of Article No. 5 ) has issued verdict accords , with requested preliminary building program, and that program has been confirmed by all legal and authorized posts in the city. So Planning Permit has been issued according to Legal Authority . Pre-construction Permit has been approved based on “commission of Article 5� and early density request has been issued. Final Permit will be issued after finalization of project architectural drawings and plans.
Pardis Golestan Tejarat Co. (PVT.) No18, 5th floor, No 27, Maryam Sharghi St., Fereshteh, Tehran Tell: 0098 21 26208031 Info@ pgtejart.com www.pgtejart.com
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www.pgtejarat.com