MIPIM ASIA 2011

October 2011

mipimasia

www.mipimasia.com The official MIPIM ASIA magazine

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preview

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viewpoint

SuStainability

Robert Ciemniak Checkmate for Asian real estate

Liveable Cities Hong Kong, Singapore and Shanghai under the spotlight

See page 28

See page 32

awaRDS

MIPIM ASIA AWARDS 2011 All the winners in full See page 70

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-effecailers, ls and siness

editorial

contents Filippo Rean Director of MIPIM Asia & Mipim

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ELCOME to the MIPIM Asia Preview, bringing you an upto-date insight into the Asia Pacific real estate sector and what will be on offer during MIPIM Asia.

This year we have significantly boosted the amount of networking and knowledge-sharing opportunities that delegates will be able to enjoy. In particular, our premium conference programme, of over 25 sessions, will focus on China, South East Asian markets, local investment practices across the region, retail real estate and sustainable cities.

The new Link-In sessions will provide timeeffective opportunities, allowing investors, retailers, corporate end users, developers, local officials and other delegates to meet and extend their business contacts.

Our popular topic-based lunch tables are back again this year, allowing delegates to discuss the subjects that concern them most while enjoying Hong Kong’s local ‘cuisine.’

And the very best Asia Pacific real estate projects will be on show on the exhibition floor and at the MIPIM Asia Awards, which will be given out during the new Awards Gala Dinner.

We are confident that the dynamism of the Asian property market will be reflected at MIPIM Asia, and we look forward to seeing you in Hong Kong on November 15-17. Until then, I hope you enjoy this Preview magazine.

Filippo Rean Director of MIPIM Asia & MIPIM

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Property news and information on MIPIM Asia exhibitors from around the region, including a focus on China, Malaysia, and sustainable cities coming to Japan’s rescue

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Towering ahead: the tallest tower ever by a British architect and the eighth tallest tower in the world, Shenzhen’s KK100, is nearing completion

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Thomson Reuters’ Robert Ciemniak talks real estate, the Asian growth hotspots, and chess with David Taylor

i features Liveable Cities 32 What are Asia’s key cities doing to make themselves more liveable? Brian Baker takes a look at Hong Kong, Singapore and Shanghai

Unlocking the Orient investing in China 52 How do investors best penetrate the Chinese market? Mark Cooper takes a look at the investments making an impact.

A round in Vietnam 38 Golf and the development of golf resorts is big news in Vietnam right now. Steve Killick tees off

Russia’s Sporting Push 56 On the back of winning the race to stage the Olympics in 2014 and World Cup in 2018, how can Russia capitalise? Doug Morrison gets in shape.

After the Tsunami: 40 What measures is Japan employing to deal with the aftermath of the earthquake and tsunami? By Gardner Robinson Malaysia and Indonesia 42 Steve Killick explores two countries putting a good case for growth Taiwan’s booming tourist draw 44 A look at the effect a burgeoning market for tourism is having on Taiwan’s real estate markets Korea moves 46 How can South Korea attract more inward investment? A look at the country’s housing market.

Greening the dragon 48 How does China balance its development drive with harmony with the environment?

Damian Arnold looks at sustainable measures and eco-cities

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In store for Asia 58 A look at the retail scene in Asia, with particular regard to China. By KK Chadha Aussie rules 61 Development in Western Australia - Steve Killick talks to the wizards of oz in Perth and on the Gold Coast Checking out in India 64 Hotels are on an upward curve, with openings to cater for the growing market.

KK Chadha explores a nation’s room service Singapore stability 67 An analysis of the measures being implemented by the nation’s government to keep the real estate market stable. By Mark Cooper 2011 MIPIM Asia Awards

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nEWs InSIde Page 10 ge proposes ‘sustainable cities’ in Japan rebuilding

Page 13 Benoy scoops major retail jobs in China and India

RICS

RICS grasps Asian opportunities

Page 18 Lift off for $15 billion Northern Caucasus resorts

Page 20 arquitectonica creates bank towers for Shanghai

RICS’ See Lian Ong

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The RICS is acknowledging Asia’s growing status in the world’s real estate scene with its first Asian president and plans for a Chinese delegation of its governing council

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he RICS is taking major steps in its growing internationalisation by sending a 60-strong delegation of its ruling council out of Europe for the first time and into China. The move is an acknowledgement of the growing global importance of the real estate scene in Asia and comes during the institution’s one-year presidency term of Malaysian-born See Lian Ong, the first non-British passport holder to hold the post. “It’s a very strong endorsement of the internationalisation of the RICS since the year 2000,” he told MIPIM Asia Preview. “It also signifies that the RICS is determined to engage with the real estate and construction industry globally, bringing standards and the world’s best practices, all around the world.”

The RICS’ 130th president, See Lian Ong said that it will be the first time that the governing council has come to Asia, with the meeting set for Beijing in March 2012, having previously met in London, Berlin and other European cities. “It will be a great opportunity for them to feel in touch and experience the culture of Asia,” he said.

Formerly at Davis Langdon, See Lian Ong said it was a “huge honour” to take the presidency and that, since his inauguration in July 2011 he has visited cities around the globe such as London, Kuala Lumpur, Shanghai, Beijing and Tokyo, reporting a huge interest in the RICS’ activities. He believes that growth areas in the region are likely to revolve around social housing and infrastructure, while outside of the powerhouses of China and India, Indonesia is the country which has the best potential for growth.

This year will be the RICS’ fifth in a row at MIPIM Asia, which See Lian Ong branded an exciting showcase for some of Asia’s top real estate players.

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i neWs

want to know more?

See ‘After the Tsunami’ - feature on Japan’s reconstruction process, page 40

nEws in briEf

ERA REAdy to show holistic AppRoAch ERA Planning Architecture Consulting will be at MIPIM Asia to show its international expertise across its three wings — architecture planning and engineering. Formed in 1972 in Istanbul, the practice works on large commercial, mixed-use developments including shopping malls, offices, residential, cultural, industrial and logistics buildings, with offices in Sofia, Paris, and Shanghai.

GE Capital

ERA’s Shenyang Plaza scheme in north east China

thE REVitAlisERs Vita Planning and Landscape Architecture will be at MIPIM Asia to show off its skills in large scale, high-end resort and community developments.

The company says its projects are often “special situations where a new market opportunity, a sensitive environment, a historic/cultural context or a complex approvals process requires an innovative approach”. Projects in Asia include the Reserve at Oak Valley in Wonju, South Korea and a masterplan for Ruili Guomen Bay in Ruili, China.

cRimEA on thE up The Autonomous Republic of Crimea is visiting MIPIM Asia in a bid to boost investment in the region. Although the area is in the top 10 of Ukraine’s regions in terms of attracting foreign investment, with around $1billion of investments to cities such as Yalta, Aryansk and Sudak, it is seeking further backing on projects such as its airport scheme in Simpheropol (pictured) and Yacht club project in Yalta. The bulk of foreign capital in the ARC is attracted to sectors such as hospitality, manufacturing, health, construction, transport and telecommunications.

High fliers: Crimea’s Simpheropol airport scheme 10 I

GE’s Sustainable Cities website modelling tool

GE proposes ‘sustainable cities’ in Japan rebuilding GE is working with cities around the globe to create sustainable solutions in projects from energy to health, water to mobility. Now it is mobilising to come to Japan’s aid

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E Capital is planning to Building infrastructure may not be enough use its sustainable cities — GE believes a mechanism to provide ‘life initiative to come to the aid support and jobs’ for those living in the area of Miyagi, the area in Japan — a self-sufficient, sustainable city modwhich was devastated by the el — is required. “Wind power, solar power, LED, Smart Grid, gas generated engine, earthquake and tsunami earlier this year.

The wider initiative is aimed at responding to healthcare, IT, finance — we have it all,” said Kitagawa. With a rapidestimates that by 2050, 75% ly ageing population, healthof the world’s population will be urbanised. But the compa“Now is the time care is one focus for change, especially as many paper ny aims to bring its expertise for us to act” and electronic records were and resources to specificalHiroaki Kitagawa, lost in the disaster. On enerly help the Japan rebuilding GE Japan Sustainable City gy, GE is proposing the use process, to create a model director of cutting-edge technologies sustainable city for the world. such as the smart grid, which “There is simply nothing will have the smallest possiin the disaster area,” said ble impact on the environSustainable City director for GE Japan, Hiroaki Kitagawa. “No homes, no ment. GE Capital says it can also help comworking place, no jobs, and no factories.” Capital panies in planning how they will resource Markets director Takuro Sasao, who was born their rebuilding schemes financially and sein the Red Cross Hospital at Ishinomaki, and cure necessary financial credits. used to live in Onagawa, added that the “foun- “Now is the time for us to act,” said Kitagawa. dation for living” has simply disappeared. Sasao “It isn’t going to be easy. This will probably be a has visited the affected areas many times and very long journey for us. Building a model susis ‘broken hearted’ at the devastation, with all tainable city for Japan, Asia and the World; it’s our mission.” buildings either damaged or destroyed.

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i neWs lEIsURE

China gets animated Camsing Global is bringing stars of the animated world into reality by developing a world class theme park called Cartoon Wonderland in Jiangsu Province in China.

The scheme will be an entertainment destination and one-stop commercial complex and focus on internationally recognisable brands, with visitors able to find popular cartoon and movie characters from Warner Bros., DreamWorks Animation and other big names. The company has partnered with world-class designers ITEC on the project to “ensure a safe, welcoming and happy environment for each of our guests”.

gold coast

GoinG for Gold There has never been a better time to invest in Australia’s Gold Coast region.

So says Councillor Susie Douglas, chair of the city council’s economic development and tourism committee.

‘Within 50 years Gold Coast City has grown from a small beachside holiday destination to Australia’s sixth largest city,” she said, “and it is still growing.”

The city is attending MIPIM Asia for the

first time, where it hopes to attract investors on short and long-term projects, citing major infrastructure projects such as Queensland’s first light rail system, the new Gold Coast University Hospital, and the health and knowledge precinct development, all of which are serving to position the city for significant future growth and prosperity.

Eco cIty

ndA unveils sustainable urban island project in dalian

On the waterfront: Dalian Maritime City Architects NDA New Design Associates have transformed a small landscape and marina project proposal into a 1 million sq m mixed-use urban island, enriched by ecological affordable housing and a low carbon transportation system.

The scheme, called Dalian Maritime City, is destined for a site in Northern China, with NDA playing the role not only of designer, but as promoter at events like MIPIM 2010 in Cannes and now MIPIM Asia, seeking approval from officials and securing backing for the project from a leading real 12 I

estate development company in China.

“As producers, we integrate investors’ insights with architects’ vision in the earliest project stage, releasing the potential of urban sites,” said Emmanuel Delarue, NDA’s CEO and chief designer.

With a Shanghai office and others in France and the UAE, the company is also working on the launch of a new hospitality project on a tropical island in southeast Asia, and on a large mixed-use project in Dalian which will be unveiled during this year’s MIPIM Asia.

magazine I October 2011 I www.mipimasia.com

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Architecture

Benoy scoops retail contracts in china and india Architect Benoy has scooped seven big contracts in China and India with a combined fee value of over £11.5 million.

The company, renowned for schemes across the world including Westfield in London, Elements in Hong Kong and Ferrari World in Abu Dhabi, has won the job to design a 250,000m2 mall in Changsha for Wharf Holdings; the 80,000m2 Central Park retail mall in Guangzhou for Sun Hung Kai Properties, a 59,000m2 Rainbow City mixed use development in Shanghai for Shui On Land and a 600,000m2 competition winning masterplan in Jinan, northern China for China Resources.

Benoy chairman Graham Cartledge said he was honoured to announce the new schemes. “Working on some of China’s most prestigious projects, I am delighted

that the award-winning Benoy team continues to combine creativity and innovation with commercial success,” he said. “China presents an enormous opportunity for the UK creative industries, and we are delighted to be leading the way with our visionary clients.’

The £340m Changsha scheme features a pair of iconic financial towers of 450m and 340m in height, while the Guangzhou project will have a distinctive monocoque roof and aim at achieving LEED Platinum. Rainbow City in Shanghai, meanwhile, (pictured) will include Benoy’s first theatre and arts building, with the Jinan scheme including luxury residential, hospitality, office space and public realm.

Benoy, which was named Company of the Year in China in the 2009 British Business

Awards, has also scored some notable successes in India, where it has had a presence for five years. It has completed its five-storey Market City retail project in Pune, and won the contract to design a major mixed use masterplan for a

300,000 sq m site in Sector 94, Noida for Supertech. Lastly, the practice has been appointed as retail architect on Prestige Falcon City in Bangalore and, for Forum Projects a mixed use masterplan in Adityapur.

Colourful design: Benoy’s Rainbow City scheme in Shanghai

MAsterplAnning

Baku aims to transform Black city into White Azerbaijan capital Baku is looking to its past as well as its future to create White City, a community for 50,000 people.

Baku’s planners are building on an ancient civilization, incorporating existing environments

Big picture: Baku’s White City project as viewed from the south

and culture as well as celebrating contemporary innovation in the project to the east of the city centre on a site formerly known as Black City.

The masterplan for the White City represents the largest urban development opportunity in

Baku and separates the plot into 10 quarters or districts, including a waterfront, park, mall and CBD area. The scale of the development, which provides a gross total of 4,800,000 sq m of floor area, will be populated by a community of 50,000 people, providing homes for 19,700 households , jobs for close to 48,000 people, and offering a unique opportunity to deliver a step-change in the quality of urban living in Baku. The development includes highly sought-after residential areas, well connected commercial and business areas and high quality leisure facilities, linked together through a series of vibrant public squares, open spaces, streets and boulevards. Landmarks and gateway buildings have been carefully placed to create a legible visual structure, and to maximize opportunity for residential developments which command views of the Caspian Sea. The design team includes Atkins, Foster + Partners and F+A Architects. Ultimately, say the developers, White City is trying to achieve a sustainable community where the people of Baku can live, work and play.

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WITNESS THE EVOLUTION OF MALAYSIAN REAL ESTATE Visit us at MIPIM Asia 2011: BOOTH I -C02/D01 Hong Kong Convention & Exhibition Centre 15th – 17th November 2011

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i neWs “Ask the experts” contest

create a buzz around your question This year, MIPIM Asia offers you a unique chance to submit your own questions to industry-recognised real estate experts. Have your say and find out more about the subjects which really interest you, with the winning queries being discussed and debated live on site.

To address one of our topics, simply think of a question for one of our selected conference sessions, in the following categories: Finance & investment, Retail, Asia Pacific markets, China and Cities.

Submit your question via our mipimworld blog, at the link to follow: http://blog.mipimworld.com/ask-the-experts-at-mipim-asia Once submitted, your question will be pooled within your chosen category and made available to voters.

The three most clicked questions will be submitted to our moderators for final selection and the winning question in each category will be addressed during the session.

Winners also receive tickets to our prestigious awards ceremony, providing a seat for both you and a guest of your choice. Experience our exclusive event, mingle with the industry’s key players and enjoy a delicious dinner, as we fete the most celebrated real estate projects of the year.

ADVERTORIAL

Closing date: Please note all entries must be received by October 24th and winners will be announced November 2nd.

DTZ welcomes MIPIM Asia to Hong Kong With a global operation spanning 140 cities in 42 countries, DTZ enjoys a reputation for excellence in providing leading-edge property insight and on-the-ground delivery to investors, developers, corporate and public sector occupiers and financial intermediaries.

Throughout 2011, DTZ’s investment team continues to professionally service clients and close investment transactions in Asia Pacific, with more than RMB 3billion in Mainland China alone, a USD 350m transaction in India and most recently a AUD 117m asset for a Chinese buyer in Sydney, Australia. DTZ is also enjoying having sales mandates across multiple Asian cities notably in the core/core+ arena, including Singapore, Shanghai and Seoul.

The DTZ global team is united by a single focus – to deliver our clients exceptional service and a commitment to their long-term success. We serve our clients across the breadth of their real estate needs. We are always frank in our advice, taking a stand in our clients’ interests, and we are relentless in delivering value for our clients as we move from advice to action.

Contact: Gordon Marsden Director - Asia Pacific Investment T: +852 2507 0717 E: gordon.marsden@dtz.com www.dtz.com

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want to know more?

See feature: Russia’s Sporting Push, page 56

i neWs NEWS IN BRIEF

RESoRtS dEvElopmENt

Korea opens two new ‘Jerde places’

Lift off for $15 billion Northern Caucasus resorts

Architect and placemaker Jerde Partnership has opened two key schemes in Korea.

Daesung D3 City in Seoul is a comprehensive transit-oriented mixed use district with over 300,000 sq m of entertainment, retail, a performance/culture venue, offices, hotels and open spaces. And in Daegu, Color Square Mall opened adjacent to the world-renowned Daegu World Cup Stadium, representing a new model for sports entertainment districts.

The practice, which has offices in Shanghai, Hong Kong, Seoul and Berlin, claims it has produced over 100 ‘Jerde Places’ in diverse cities across the globe and has designed experiences which attract over 1 billion people annually. The firm is designing over a dozen schemes in China, including several mixed use districts under construction in Shijiazhuang, Changsha, HuaiNan, Shanghai, and Guangzhou. It has projects in design or construction valued at over $20 billion.

ADVERTORIAL

The Jerde-designed Daesung D3 City, Seoul

Russia is putting its money where its mouth is by backing major plans for five new world-class alpine ski resorts in the Northern Caucasus region

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he world’s largest mountain tourism project is coming to MIPIM Asia to spread the word and attract foreign investors.

The Northern Caucasus Resorts — a massive undertaking to build five new resorts which its backers expect will attract 10 million visitors a year — has already been the beneficiary of a special fund created by Russian president Dmitry Medvedev. As part of his speech delivered to open January’s World Economic Forum in Davos, Switzerland, Medvedev said the government is fully prepared to share potential risks in the country’s modernisation through

Aedas – Sustained Growth in Asia

joint investments. And as part of this development plan, Medvedev gave the go-ahead for the scheme, which will consist of five world-class alpine resorts in the Northern Caucasus.

The state-owned company Northern Caucasus Resorts is in charge of running the $15 billion project, with the government contributing $2 billion and setting up a special economic zone.

It has also offered 70% of government guarantees for bank loans to be spent on the project, and expects the area’s gross regional product to double by 2020 as a result of the scheme.

The project is expected to attract investment of some $9.8 million in hotels, retail and real estate, with $3.2 billion in cable cars and other

Olympia 66, Dalian

Next year, in 2012, the name Aedas will be 10 years old. In less than a decade the practice has grown from relatively modest beginnings to become one of the world’s leading architectural practices.

Our goal was to create a truly global practice firmly rooted in the communities we serve while drawing on international expertise and design talent. Our 39 offices in over 20 countries provide a world-wide reach for international clients. We firmly believe that in an increasingly globalised market place, architecture should benefit from a contextualised response that acknowledges the cultural and environmental specificity of its region. Our unrivalled local skills and experience mean we can advise clients in a way that provides the advantages of both a local and global approach.

Asia continues to be one of Aedas’ strongest markets. In China, we are working on large schemes including the Centre 66 in Wuxi and Olympia 66 in Dalian; and the Border Crossing Facility and the Express Rail Link West Kowloon Terminus in Hong Kong. Aedas Shanghai is expected to double its workload, and our Singapore office is also growing, with the completion of the Marina Bay Sands Integrated Resort and the regional headquarters for an international entertainment company under construction.

Aedas Limited 31/F, One Island East, 18 Westlands Road, Quarry Bay, HK T: +852 2861 1728 F: +852 2529 6419 www.aedas.com

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NEWS IN BRIEF

The Northern Caucasus

Malaysians target chinese investors The Malaysian government is appearing at MIPIM Asia for the first time in a bid to target the Chinese and Hong Kong markets.

The government’s three-year-old Malaysia Property Incorporated (MPI), an initiative to promote corporate and individual Foreign Direct Investment into Malaysian real estate, has created a show pavilion designed by one of the country’s most iconic architecture brand names, Hijjas Kasturi Associates. The pavilion will feature some of the country’s progressive masterplans that are under way including The Light by IJM in Penang.

MPI works to fast-track retail interest and commercial partnerships by connecting prospective investors with Malaysian industry players and government authorities. It also publishes monthly market intelligence on the investment climate, in line with improving data transparency.

MPI’s CEO, Mr Kumar Tharmalingam, is also a MIPIM Asia panelist on the Opportunities In Developing Vs Matured REIT Markets session, 14.00, Tuesday November 15.

Mr Kumar Tharmalingam

ADVERTORIAL

slopes infrastructure and $2 billion in energy, transport infrastructure, telecommunications, water supply and sewage and gas. Some of the newly built complexes will be ready to

welcome their first guests in 2014 for the Winter Olympics in Sochi, when the resort backers expect interest in winter sports and the Caucasus itself will be at its peak.

VinaCapital focused on Vietnam’s urban regeneration VinaCapital is one of the leading asset management and real estate development firms focused on the Vietnam market. The company manages over US $1.7 billion, including the US $ 689 million (NAV) VinaLand Limited (VNL), an AIM-traded closed end fund established in 2006.

VinaCapital’s real estate investments focus on the regeneration of Vietnam’s urban environment, a process being driven by rising incomes and rapid urbanisation.

VinaCapital has invested over US$1 billion in real estate projects since 2003, ranging from the world-renowned Sofitel Legend Metropole Hotel in Hanoi to the award-winning Danang Beach Resort in central Vietnam, featuring the Greg Norman-designed Dunes Golf Course.

VinaCapital manages investments in more than 30 direct real estate projects, including the My Gia township development in Nha Trang, and the World Trade Center Danang complex.

The current focus is the residential market, with sales through the VinaLiving brand.

VinaCapital in conjunction with MIPIM is organizing the panel ‘Vietnam: Foreign Investment in Local Real Estate’ at this year’s MIPIM Asia event. We will update investors on the investment opportunities available in Vietnam.

My Gia township, Nha Trang

World Trade Center Danang

For more information, please contact Mr David Blackhall. Deputy Managing Director of real estate at VinaCapital.

He is based in Ho Chi Minh City and can be reached at david.blackhall@vinacapital.com.

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i neWs NeWS iN BrieF

Conadi’s healthy investment returns

Real estate outfit Conadi will be at MIPIM Asia to promote a private medical centre project, North Private Hospital, in Bucharest near the city’s two airports. With a total of 20,000 sq m above ground and 9,500 sq m underground, the scheme features 350 beds and nine operating rooms, with a total investment of around €51.28 million, but quick returns inside five years. Conadi said there is a ‘general upward trend’ in private medical facilities versus public, especially in major cities in Romania. The private medical sector in Romania is predicted to grow by 30% to a value of around €1 billion inside five years.

North Private Hospital, Bucharest Twin peaks: Views of Riviera TwinStar Square, Shanghai

aGer aims at asia

AGER Group has branded 2011 a ‘pivotal year’ as it opens a Hong Kong office to explore design opportunities in the region. The international multi-disciplinary design firm now has four offices across China and the US, with a mission “to provide each client with an integrated and creative service package to maximise return on investment and ecological and social benefits”.

The Shanghai and Beijing studios are working on residential and mixed-use projects, alongside urban planning and park projects such as the 83 hectare Jiading New City Centre Park in Shanghai.

Work in Taiwan is winning plaudits too, with AGER’s Boston Studio having won an Excellence Award for its Kaohsiung Port Station Urban Design competition, initiated by the Urban Development Bureau of the Kaohsiung City Government in Taiwan. The 15.42 hectare site sits between Hamasen and Yenchen historic commercial centres, and aims to transform the rail yard and port station into a new destination.

vip desiGn in Baku

Branding and interior design firm Garde has designed a new multi-brand store in Baku, Azerbaijan. The competition-winning scheme has a VIP opening in October, and is based on the idea of ‘Silk Road where east meets west’ and ‘East Europe meets Russia’. Garde director and architect Yukio Ishiyama designed slopes to connect spaces, balconies inspired by Baku city, squares and Arabesque shapes. The three-floor 2,500 sq m store features a retail area, storage area, bar and VIP rooms. It was developed by Sinteck Corporation and sits on the marina of Baku’s bay, overlooking the Caspian Sea. 20 I

Architecture

Arquitectonica on a high Arquitectonica’s Riviera TwinStar Square twin towers form the centrepiece of the waterfront development in Shanghai

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rquitectonica has designed two curvaceous towers for two separate bank headquarters at the Pudong New District in Shanghai as part of a 260,000sqm waterfront mixed use development.

The scheme for CITIC Pacific Group and China State Shipping Corporation is called Riviera TwinStar Square and will be home to the Agriculture Bank of China in one of the 49-storey structures and China Construction Bank in the other. The project is located at No.9-99 Yincheng Road, forming part of the Lujiazui Central Financial District, overlooking the historic Shanghai Shipyards site.

“We knew the towers were to be occupied by two different bank headquarters, so we

designed the symmetrical towers to be all about balance, order and stability,” said Arquitectonica founder-principal Bernardo Fort-Brescia. “Their interdependence sends the message of union and respect for each other at once.”

The stone and glass towers form a gateway to the Huangpu River, with their facades curving dramatically to form an imaginary space which frames the skies and city skyline. The nautical symmetry aims to convey memories of the ships that were once launched from the now relocated Shanghai Shipyards. The wider waterfront development also includes two 18-storey buildings to be operated by Mandarin Oriental Hotel Group — a 360 room hotel and spa, plus a 210 unit Mandarin Residences serviced apartment complex.

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Clifford Clif ford Chance

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Pacific Clifford marke At Clif ffford Chance,, multi-disciplinary teams cover all a areas areas of the real real estate market, et, from from private markets, direct indirect development, fund raising to the public p direct and indir ectt investment, and to developmen t, debt finance and rrestructuring. estructuring.

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www.cliffordchance.com www .cliffordchance.com m

i neWs retail design

asia in numbers

Concept i scoops asian interiors prizes

Singapore and auStralia perform Strongly

Interior design and architecture company Concept i has notched up a series of honours in property awards regimes across the Asia region.

The firm won a Highly Commended in the Retail Interior China category of the Asia Pacific Property Awards in May for its Zen department store in Shenyang, China. It scooped another interior design award as part of the Europe and Africa Property Awards 2010 for its Akmerkez mall in Istanbul, with a scheme inspired by the Bosphorus. And it won a Golden Mall Design Innovation Award for its Mykal Department Store for Dashan Group in Harbin, China.

Singapore, Australia and Hong Kong were the biggest winners in the Asia Pacific real estate scene according to Real Capital Analytics’ mid-year review.

The company reported that Singapore’s 119% increase in transactions in H1 topped every major economy globally except the US. Australia enjoyed a surge in investment with a similar growth of cross-border investors to Singapore, with a ‘healthy mix of European and North American investment firms, while

Hong Kong recovered from a relatively poor Q1 with a stronger Q2 to finish flat at the mid-year point. “Land hungry investors have poured capital into Singapore and Hong Kong, especially as Hong Kong greatly expanded available development sites in Q2”, according to the report. China, meanwhile, saw sales of office and retail properties nearly double in H1, with transactions moving on from the overheated primary markets and on to secondary and tertiary cities.

sports development

Shanghai nets new basketball arena

Poyry’s sports centre in Baoshan District, Shanghai

The award-winning design for the Zen department store in Shenyang, China 22 I

Shanghai is set to open an innovative new sports centre and library in the city’s Baoshan District.

The scheme, designed by global consulting and engineering firm Poyry, is a 90,000 sq m multi-functional cultural and sports complex. It includes a NBA/ CBA-standard, 14,000 seat basketball and multi-purpose arena, the city district library, a community gym, public plaza and 30,000 sq m of underground civil defence areas. Poyry Architects paid special attention to creating VIP facilities, good acoustics and the flexible nature of the building. This allows it to cater for more than 20 different indoor sports and to host concerts and other

events, thus driving revenue generation.

Hong Kong firm IMC advised on sport management, while the technical realisation of the project was undertaken

by IPPR, a Shanghai design institute. The scheme was set to open in October.

One of the top 20 global engineering and design firms in the world, Poyry is based in Europe but operates in 49 countries. Its real estate units in China and Asia specialise in retail advisory, sport and entertainment venues design, architectural design and project management services to both multinational and local clients.

The firm has four offices in China, and over 12 offices in the APAC region.

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invision China is aiming high again, this time with the KK100 tower - the world’s eighth tallest, nearing completion in Shenzhen

KEY DEVELOPMENT KK100 SHENZHEN

The finishing touches qre being applied to KK100, the tallest building ever designed and realised by a British architect - TFP Farrells.

The scheme, which rises to a height of 100 storeys or 441.8 metres, sits on a retail podium connected to a new metro station. Floors four to 72 feature Grade A office space, with seven levels of trading floors distributed throughout, while floors 75 to 100 feature a 6-star luxury hotel with 250 rooms, restaurants, executive suites and a business centre.

The scheme is situated in Shenzhen’s Luohu business district and is part of a masterplan which includes five residential buildings and two commercial buildings.

The tower’s fluid shape and reflective skin is an allusion to a fountain, connoting the wealth and prosperity springing forth from Shenzhen’s economic success.

Architect Terry Farrell said it was a fitting way to mark the 20th anniversary of the practice’s Hong Kong office.

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profile RobeRt Ciemniak

Checkmate for Asian real estate MIPIM Asia keynote speaker Robert Ciemniak views property with a shrewd, strategic eye, rather like a chess master. And Asia is in a strong position. By David Taylor

Robert Ciemniak

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I

n some ways, international real estate — the ebbs and flows of “Real estate investments, markets and cycles typically — is like reading a chess board. follows wide, Positions continually evolve, no situation is quite like the other, and yet, the long cycles” most experienced practitioners can see the patterns, memorise the outcomes, and repeat them for their own benefit.

So says Robert Ciemniak, global head of real estate markets for Thomson Reuters, when I press him about his past as an international chess master, rather than his present as a Hong Kong-based information provider.

“In chess, the basic principle of how you learn and grow is that you learn from past games, and you think in terms of patterns,” he says. “No game is the same, but the patterns repeat. Real estate, at the macro level, typically follows wide, long cycles and I talk to quite a few investors who apply that naturally. They try to draw conclusions about what’s next by looking at the previous cycles and trying to identify the patterns and how today is different or similar to what happened before. In business, though, not many people can go back and analyse what were we thinking then and why did we take this decision or another.”

A case in point might be the financial crisis, where the real estate industry’s deal-driven nature may have been a contributing factor. But the more sophisticated, long-term data Ciemniak provides at Thomson Reuters — enabling the long game, as it were, might be an answer.

Born in Poland, Ciemniak has travelled widely, having spent nine years in England, two in Germany, as well as spells in Russia and Sweden, before moving to Hong Kong in mid-2009.

He describes his job as a builder of information services for investors in real estate. So far, property in Asia has been the growth story, maybe with a small hiccup over the financial crisis, whereas the US or European

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Related confeRence duRing MiPiM aSia 15 November – 10:15 Opening keynote- Macroeconomic outlook and implications for Asian real Estate Speakers: Prof. Yiping Huang, Professor of Economics at the China Center for Economic Research, Peking University (Hong Kong SAR) • Robert Ciemniak, Global Head of Real Estate Markets, Thomson Reuters Real Estate (Hong Kong SAR)

markets suffered a more significant ‘correction’ in recent years. But as In Ciemniak’s world he expects increasing transparency, with more soopposed to asking whether the bottom has yet been reached, as one phistication in how people treat analyses of data, and more complexity might in Europe or the US, in Asia the pertinent question might be: in the system with real estate’s linkages with finance and globalisation.

“Have we reached the peak?” says Ciemniak. When one deals with The chief risk to the region, though, is “a rapid and unexpected rise in such an aggregate as ‘Asian real estate’, generalisations abound. The interest rates and the cost of financing. That would be very disruptive.”

Is he optimistic? “I would say: ‘prepare to be surprised’, sector is very broad; even Chinese real estate varies imthough it’s unclear which way,” Ciemniak says. The marmensely over sectors from commercial to residential and “Being kets have become more interconnected globally and there from city to city. At this aggregate level, though, Asian is more complexity in capital flows, with more linkage bereal estate has enjoyed strong economic growth as a backcorrect on tween what happens in finance and real assets. “That just ground, informed by urbanisation in places like China, strategy means that there are more plausible scenarios,” he says, and the whole demand for space, underpinned by a set doesn’t with “feedback loops” triggering each other and capital of infrastructure investments. After the crisis, there was guarantee which today seems more global in its nature. “If you look a pretty big stimulus, and Asia has managed to avoid the at it as a system I would say because of that it makes it less debt problems suffered by Europe or the US — so far. Is a win” predictable, and potentially more volatile.”

Ciemniak expecting the spectre of debt on the horizon?

Ciemniak no longer plays chess today, ever since he con“Many people are asking that question,” he says. “I’ll let cluded that “the world was bigger than 64 squares”. And yet the analysts and others make predictions, but so far there even former world champion Gary Kasparov wrote a book haven’t been strong indicators of that.”

The Asian currencies strengthened and economies grew relatively called How Life Imitates Chess. “But, as with chess,” says Ciemniak, “being correct on strategy doesn’t guarantee a win. Ultimately it’s a sestronger than their US counterparts, representing what some perceive quence of moves you have got to get right, although that is nothing speas a power shift to the east. But at the same time, the US or European markets have become potentially more attractive in relative value terms, cific to real estate. It’s just life, right?” says Ciemniak. More and more Asian capital is buying assets in the west, in places like Manhattan, London and Berlin, with significant media attention paid to this, if nothing else. “Maybe this symbolises the process of globalisation of real estate markets, which is a relatively new phenomenon,” says Ciemniak.

When one looks at Asia Pacific office rental or capital value indices from various providers, a pattern of continuous growth is abundantly clear. Ciemniak feels there are questions about how sustainable this is, but as long as interest rates are kept at a low level, that is very supportive for the real estate industry in principle, despite there having been a quite aggressive ‘tightening’ in the market in China and India. The Chinese markets in particular are a very important direct or indirect engine of growth in Asian markets, where we have seen an ongoing balancing game played by the regulators. On the one hand, there is the push for economic growth and targets; the continued investments on infrastructure and housing. And yet there have also been what Ciemniak brands as aggressive tightening measures, whether through monetary policies, or raising rates to fight inflation, and specifically through taming continuous rises in house prices.

Where are the real hotspots in Asia, by sector and by country? In Hong Kong it will be interesting to see how long the current momentum in offices and residential continues, says Ciemniak. Prime office rents in Hong Kong have risen starkly, by around 40 to 50 per cent, year on year, with luxury residential performing well, largely because of demand from Robert Ciemniak: The globalisation of real estate markets is a relatively new phenomenon mainland Chinese, purchasing for investment purposes. And in retail, Keynote speakers at this year’s MIPIM Asia are many local retailers are being phased out by the higher-end brands which can afford rents and cater for buyers from mainland China. Both scenarYiping Huang, Professor of Economics at the China ios, Ciemniak suggests, are founded principally on moves by corporaCenter for Economic Research, Peking University, tions setting up in Hong Kong to service China. Ciemniak also points to mainland China’s Five Year Guideline announced in March this year to and Robert Ciemniak, Global Head of Real Estate build 36 million new affordable housing units, but cites questions from Markets, Thomson Reuters Real Estate global players as to how attractive returns in this area might be.

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Where the

World's Property Leaders Converge

in Asia Pacific

15-17 November 2011 Hong Kong Convention & Exhibition Centre

Programme of conferences & events Striving to go beyond the merely informative, MIPIM Asia offers you in-depth insights and deep dives into real estate’s hottest topics. Gather best practice and inside tips from the pick of the industry’s experts.

Address questions to and mingle with the industry’s thought leaders, from both private and public sectors.

Our 26 conference sessions feature over 100 global industry leaders and our innovative networking formats allow you to forge partnerships with ease, from amongst our 1,700 participants, 410 investors and occupiers and 800 companies across 40 countries.

MEET SOME OF THIS YEAR’S SPEAKERS:

Prof. Yiping Huang

Peter Mitchell

Stanley Ching

CY Leung

Edward K.C. Cheung

Professor of Economics at the China Center for Economic Research Peking University, Hong Kong SAR

CEO, Asia Pacific Real Estate Association (APREA) Singapore

Senior Managing Director, CITIC Capital Holdings Limited Hong Kong SAR

Asia Pacific Chairman, DTZ Hong Kong SAR

CEO of Greater China, DTZ DTZ China

François Trausch CEO Asia Pacific, GE Capital Real Estate Japan

Justin Chiu Executive Director Cheung Kong (Holdings) Limited, Hong Kong SAR

Robert Ciemniak

Jacques Ferrier

Rudolf Hauter

Takuya Ishikawa

Don Lam

Sergey Sanakoev

Ricco DeBlank

Global Head of Real Estate Markets, Thomson Reuters Hong Kong SAR

Architect, Jacques Ferrier Architectures France

Secretary General UCLG ASPAC Indonesia

Director of Real Estate Market Division, Industry Bureau - Ministry of Land, Infrastructure, Transport and Tourism Japan

CEO VinaCapital, Vietnam

Chairman, Russian-Chinese Center for trade and economic cooperation, Russia

CEO - SHKP Hotels, Sun Hung Kai Properties Ltd. Hong Kong SAR

Goodwin Gaw

Peter Hobbs

Hidetoshi Ono

Dr. Megan Walters

Amy Ho Partner, Clifford Chance Hong Kong SAR

Chairman & Managing Principal, Gaw Capital Partners Hong Kong SAR

Senior Director, IPD UK

Richard Johnson Head of Global Real Estate Business Development - Asia Pacific, UBS Global Asset Management Hong Kong SAR

Morgan Laughlin Managing Director, Asia Pacific Grosvenor Fund Management Japan Limited Japan

Head of Japan Core Fund AXA Real Estate Investment Managers Singapore Private Limited, Singapore

Head of Research, Asia Pacific Capital Markets, Jones Lang LaSalle Singapore

Engage with future partners & make deals happen Topic-based lunch tables Debate hot issues, exchange best practice and share experiences on relevant themes with handpicked professionals over lunch.

Link-in sessions NEW Meet industry experts in an informal setting, to discuss current regional and sector focuses.

Power meetings Focused, one to one meetings with your business targets.

Programme as of 26 September 2011, may be subject to change.

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Conference Programme Conference tracks:

RETAIL

TUESDAY 15 NOVEMBER Opening Ceremony

CHINA

FINANCE & INVESTMENT

WEDNESDAY 16 NOVEMBER ,EADERSåBREAKFASTå åANåEXCLUSIVEåOPPORTUNITYå to meet with a key personality By invitation only

Opening keynote - Macroeconomic outlook and implications for Asian real estate In partnership with: Wisconsin School of Business

Unlocking the Orient: investing in China

CITIES

APAC MARKETS

THURSDAY 17 NOVEMBER Wrap-Up - Where do Asian, European and American investors see opportunities in Asia today?

Co-org: Wisconsin School of Business & HK UST

Financing Asia’s appetite for real estate investment Co-org: RCA

Meet the Chairmen

!FTERåTHEå1UAKE åREBUILDINGåAåNATION

4OPICåBASEDåLUNCHåTABLES by registration only FINANCE, INVESTMENT & REAL ESTATE IN APAC

East to West: Investing in the old world Co-org: RCA

Remodelling tomorrow’s city

såå+EYNOTEåINTRODUCTIONåBYå Minister Christina Y. Liu, Taiwan så%ASTåTOå7ESTå0ANELåDISCUSSION 4OPICåBASEDåLUNCHåTABLES by registration only CHINA

ASIA PACIFIC MARKETS

Asian eye: the new wave of changes to funding Asian investments

Vietnam: foreign investment in local real estate

The Rising Stars of Asia

,IVEABLEåCITIES å%CO FRIENDLYåINFRASTRUCTUREå ANDåHOUSINGåFORåBUILDINGåAåSUSTAINABLEåFUTURE

Closing Keynote Presentation

Co-org: UCLG ASPAC

China’s Ageing population: implications for the property market Co-org: Hampton Hoerter

Opportunities in developing versus matured REIT markets Link-In: China - meet the key players Link-In: South East Asia meet the key players The real estate dragon spreads its wings

4OPICåBASEDåLUNCHåTABLES by registration only RETAIL

FINANCE & INVESTMENT

CITIES

'LOBALISATIONåOFåRETAILåBRANDSåINåANDåOUTå of China: successes and challenges

!åDAILYåOPENåBUFFETåLUNCHåISåOFFEREDå to all registered participants

A recipe for resilience: the roles of the PUBLIC åPRIVATEåANDåCOMMUNITYåSECTORSå in creating resilient cities Co-org: ULI

Link-In: Retail - meet the key players

Co-org: DTZ

Co-org: ULI Japan

The Drive for Foreign Hotel Brands in China: strategies and operational challenges Link-In: Japan - meet the key players

What makes a city smart?

Co-org: Professional Property Services

Performance of Asian real estate versus other asset classes Co-org: APREA

Asia’s World City!

Power meetings: Investors

)NVESTORåEMPOWERMENTåINåTHEåBRAVEå new world of Asian non-listed real estate

2ETAIL åREALåTIMEåLINKåBETWEENå-)0)-å!SIAå and MAPIC in Cannes, France

Co-org: ANREV

A taxing issue: funding investments in Asia Co-org: Deloitte

MIPIM Asia Opening Cocktail

3USTAINABILITYåEXPECTATIONSåOFåGLOBALå investors Co-org: GRA

MIPIM Asia Awards Gala dinner By registration only

For more details on session content and speakers, go to www.mipimasia.com, programme section.

Simultaneous translation into English/ Mandarin.

Sessions are open to all registered participants.

MIPIM Asia® is a registered trademark of Reed MIDEM - All rights reserved.

Big in Japan: investing in its renewal

,INK )N å3USTAINABLEåCITIESå å meet the key players

Programme as of 26 September 2011, may be subject to change.

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Feature inside p33 LIVEABLE CITIES A look at how Hong Kong, Singapore and Shanghai are keeping quality of life high on the agenda p40 AFTER THE TSUNAMI A feature exploring Japan’s recovery from the earthquake and tsunami p48 GREENING THE DRAGON How is China responding to the global push for sustainability? MIPIM Asia Preview investigates p56 RUSSIA’S SpORTING pUSH An analysis of Russia’s moves to capitalise on being awarded the 2014 Olympics and 2018 World Cup p61 AUSSIE RULES How are Perth and the Gold Coast making waves in attracting inward investment? p64 CHECKING OUT IN INDIA Rooms service: an investigation into the hotel scene in India

Green land in Hong Kong: West Kowloon’s proposed urban park

32 I

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Related confeRences duRing MiPiM asia 15 November – 16:30 16 November – 14:45 Asia’s world city Link-in Sustainable Cities (Networking Event) 16 November – 11:15 Liveable Cities: Eco-friendly infrastructure and housing for 16 November – 15:15 What makes a city smart? building a sustainable future 16 November – 10:00 Remodelling tomorrow’s city

sustainability

Liveable cities What are Asian cities doing to make themselves more liveable and attractive places for their citizens to work and play in? Brian Baker traces the big schemes in Hong Kong, China and Singapore which promise to make a real difference

S

ome of the largest, high profile cities in Asia are making more liveable districts a distinct priority.

West Kowloon Cultural District, on 40 hectares in Hong Kong, is a masterplanned redevelopment which has certainly set out to do great things.

In March 2011, a Foster+Partners masterplan was selected to be the basis of the new district. It is likely to be developed over the next 10 to 15 years. The final plan for West Kowloon should be approved by the Hong Kong Government by the end of 2012. The West Kowloon Cultural District Authority (WKCDA), established in 2008, is consulting on the final proposals in late 2011 prior to submitting them to government.

The Hon. Ronald A rculli chairs the WKCDA Development Committee and also chaired the masterplan selection process. The final three contenders were Foster, OMA and Rocco Design. .

He says: “The Foster scheme, named City Park, best met the aspirations of all the stakeholders for a district which can grow organically and for a strong educational aspect.

It also met the requirement for at least 23 of the 40 hectares to remain undeveloped.”

The City Park scheme was preferred for its clustering approach, which will minimise footprint, its green features, flexibility — notably in allowing for parcels to be swapped between cultural and commercial uses — and arts education proposals.

It includes a 19 hectare park with over 5,000 trees, a continuous waterfront promenade; small-scale plazas scattered amongst the buildings; tree-lined, traffic-free

streets; and extensive pedestrian connectivity to surrounding areas and to public transport hubs.

Establishing West Kowloon Cultural District Authority followed a decision to separate the procurement of the non-commercial elements from the commercial elements, though the Foster plan envisages several buildings with multiple uses.

Arculli says that delivery of these will depend on co-ordination between commercial developers and the authority.

“We do not have a timeline set in concrete, but it will probably be more than 10 years. For example, one of the key cultural buildings, currently known as the Mplus, will be built in two phases. We anticipate some temporary uses and structures during the next decade.”

The government has made a one-off award to the new authority of HK$21.6 bn, which will be used for the cultural facilities and open space, with commercial investors and developers invited to bid for plots and to build the rest of the new district.

In order to provide an on-going income for the authority to support the not-for-profit facilities subsequently it has been agreed that WKCDA will develop and own the 115,000 sq m of retail and entertainment development which will be included in the district.

The education and training emphasis emerged from extensive public consultation in 2007-8, which involved Hong Kong’s performing arts and visual arts sectors.

Altogether there are likely to be 17 permanent venues.

“I think the first permanent facilities will open in 2015,” said Arculli. “Construction is likely to begin in 2013. The land is being transferred from the government to the authority in phases. Parts of it are in use for activities which are being relocated. This process is likely to be complete by 2015.”

Land not yet transferred is being used by the contractors building the new high speed rail station on the www.mipimasia.com I magazine I October 2011 I 33

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i feature

Liveable cities

perimeter of the site. This will bring the 8 million inhabitants of Guangzhou within 50 minutes of the new cultural attractions when the railway and station open in 2015.

Singapore SwingS Singapore was the highest placed Asian city, 20th, in the most recent world-wide Mercer Quality of Life Index. It was first in the 2011 Green City Index produced by the German owned conglomerate Siemens with the Economist Intelligence Unit, which evaluated 22 Asian cities.

The city state has pressed ahead with ambitious new districts and other improvements, including the creation of a whole new downtown area on partly reclaimed land near water, now called Marina Bay. Singapore is promoting itself strongly and consistently as ‘the city in a garden’ which is partly an attempt to counter the humid climate and make outdoor experiences more attractive.

In 2013, the first 4.3 km phase of the new Downtown MRT underground line will open, with six stations providing easy accessibility to new mixed use developments around Marina Bay from all of the city state.

The new downtown area is taking shape with two commercial schemes — One Raffles Quay and the Marina Bay Financial Centre (MBFC) — to the fore. Responsibility for the overall success of these areas lies with the Urban Redevelopment Agency of the Singapore government, but these two leading mixed use schemes are by Raffles Quay Asset Management.

Raffles Quay Asset Management CEO Wilson Kwong told MIPIM Asia Preview that: “the design of MBFC and One Raffles Quay took into account the Singapore Government’s ‘city in a garden’ vision by ensuring that both developments contribute to a pedestrian-friendly and liveable environment consistent with our Work-LivePlay lifestyle proposition for Marina Bay. “In developing the Lawn at Marina Bay and the Marina Bay Link Mall as part of Marina Bay Financial Centre, we were mindful of the importance of offering open spaces to promote the development as a lifestyle destination, as well as seamless connectivity for visitors, tenants and residents. When the Downtown Station on the underground MRT Downtown line opens in 2013 it will mirror Raffles Place MRT by opening directly into Marina Bay Link 34 I

The Ground Plaza at Marina Bay Mall, providing a superb web of connectivity through the Link Mall, Singapore air-conditioned subterranean mall to surrounding office and residential developments.”

With the opening of Marina Bay Sands, the Heli x Bridge and Waterfront Promenade last year, coupled with up“We were mindful of coming developments in 2011 and 2012, the importance of the Marina Bay district has been transoffering open spaces” formed into an exciting and dynamic Wilson Kwong, choice destination. The completion of Raffles Quay Asset Management Commercial Tower 3 and Marina Bay Suites in 2012 and 2013 respectively will mark another milestone representing the completion of the entire MBFC development and putting Singapore on the world map. All these will support the future development of Singapore as a vibrant global financial centre.”

The previously stalled South Beach scheme was re-financed in 2011 and is now expected to be completed by 2015.

City Land Developments’ 147,000 sq m eco-development, firmly rooted in the ‘city in a garden’ policy, will include residential, office, hotel and retail elements, which will all sit beneath an Arup-designed lightweight ribbonesque canopy on a 3.5 hectare site adjacent to an MRT station.

Arup has also designed climate-friendly structures along the 3.5 km waterfront promenade. Public appeal is also enhanced by the Lawn at Marina Bay, a 13,000 sq m park directly above the Marina Bay Link Mall.

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SPECIALIST COMMUNICATIONS FOR THE COMMERCIAL PROPERTY SECTOR FTI CONSULTING IS THE OFFICIAL COMMUNICATIONS PARTNER TO MIPIM ASIA

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C R I T I C A L T H I N K I N G AT T H E C R I T I C A L T I M E ©2011 FTI Consulting, Inc. All rights reserved.

TM

S T R AT E G I C C O M M U N I C AT I O N S

i feature

Liveable cities

Shanghai SurpriSeS Shanghai is regularly cited as the most liveable city in China, and, whilst its historic districts, notably Jingan, Luwan and Huangpu, suffered from unrestricted development in the 1990s, much stricter planning policies have been in place in the last decade. Regeneration schemes have created attractive locations at, for example, Xintiandi, Tai Cang Lu and the Old Dock.

The metro network now extends to some 430 km long, with 11 lines.

Luwan and Huangpu have pleasant streetscapes with trees along both sides and with good walking and cycling provision. Officially merged to create New Huangpu in June 2011, the 20.43 sq km area is home to 680,000 people and includes the municipal buildings and the People’s Square.

It includes the former French Concession area, which has 100-year-old plane trees on many streets and parts of the former International Settlement and contains major shopping streets and attractive villas and apartments.

West of Shanghai’s core, around the Hong Qiao transport interchange, a new commercial district is set to take shape during the next 5 to 10 years. The existing Hong Qiao developments sit to the east of this area. Now, there is to be a new district in the immediate environs of the hub which includes a high speed rail station which opened in July 2010, an airport and two metro lines.

Arup head of the Shanghai office Michael Kwok says: “The authorities have decided to build a comprehensive area around the hub. It is anticipated that it will attract both foreign and domestic companies to locate there because of its unique connectivity.”

“The expectation is that people will want to work, live and play in this area. Its core will be right next to the hub. It is to be the first low carbon business district in

Light fantastic: Shanghai by night 36 I

Transports of delight: the Hong Qiao commercial district plans the city. It is a very ambitious project for the authorities in Shanghai.”

Kwok adds: “It is being planned for mixed uses at a lower density to other business areas. The land is gradually being put out to market. There will be parks with a lot of trees and shrubs. It will not be high rise and there will be a lot of public space.”

All the approved development in this part of Hong Qiao will have to meet China’s green building standards. The national government sees it as a benchmark for future real estate development.

Residential is set for the north of the area in later phases.

The first approvals on a 1.43 sq km parcel include 1.7 million sq m GFA, of which 57% is office and 12% retail. All the buildings will be a five minute walk from the transportation hub and will be completed by 2014.

Shui On Land is spending an estimated 8 billion Yuan developing a 380,000 sq m mixed use scheme, Hongqiao Tiandi, there. The scheme will be based on its successful entertainment district in the centre of Shanghai, Xiantiandi.

The Yangtze River Delta cities, now served by the Shanghai-Nanjing high speed line which opened in 2010, are growing rapidly. The new station, the largest in Asia at 1.3 million sq m, also opened in 2010 and now has high speed line services to Beijing and to Hangzhou as well. With more lines to come, the new ‘green’ district around the hub will be within an hour’s travel time of 75 million people. More people, and more liveable districts.

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6-7-8-9

march

2 01 2

Cannes

Palais des Festivals w w w. m i p i m . c o m mipim@reedmidem.com

What do I like about MIPIM? Meeting international real estate players from over 90 countries Connecting with more than 18 600 potential partners Having access to the real estate world on the spot Looking forward to seeing you at MIPIM 2012.

Barbara Knoflach – CEO of SEB Asset Management

PORTRAITS 230-300.indd 3

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i feature

Related confeRences duRing MiPiM asia 15 November – 14:45 Link-in South East Asia (Networking Event) 16 November – 11:15 Vietnam: foreign investment in local real estate

LEISURE DEVELOPMENT

A round in Vietnam Vietnam’s burgeoning golf scene is representative of the Asia region’s growing love of the sport — and its associated leisure development scene. Steve Killick tees off

G

olfing history is repeating itself. In 1864 there were just three golf courses in all of England and some 30 in Scotland. Fifty years later there were nearly 3,000. A huge improvement in transport communications, increased affluence and a greater amount of leisure time all fuelled this upsurge in golf course development.

One hundred years on and we are seeing an explosion in luxury golf course projects throughout the Far East, responding to the emergence of China as a global economic super-power and other neigbouring countries, such as Singapore, Japan and Taiwan that already have contracted the golf bug. Asia is fast taking over from the US and Europe as the epicentre of golf course design. And the latest new kid on the block? Say good morning to golf in Vietnam.

From the depths of isolation and ruin at the end of the country’s civil war that lasted 20 years until the fall of Saigon in April, 1975, Vietnam has put itself squarely on the tourist map, with golf being a key driver in attracting overseas visitors.

Reforms in land ownership, tax incentives and some stunningly beautiful scenery have all gone a long way to bringing much needed foreign investment into the country.

And with 3,260 km of largely unspoilt coastline, there is no shortage of suitably attractive sites to build golf courses, with that essential bolt-on accoutrement, a collection of suitably upmarket holiday homes.

Singapore based luxury hotel operator, Banyan Tree Holdings, which has five star hotels throughout the eastern Pacific rim, is currently undertaking a 280 hectare golf and resort project at Laguna Lang Co, near Hue, a beautiful central seaside location of Vietnam’s east coast.

As well as an 18 hole championship standard golf course designed by six-time majors champion, Sir Nick Faldo, the complex will include a 2,000 room luxury hotel, convention centres, spas, a central village and residential apartments and villas.

That such a development is taking place would have been inconceivable until the Vietnamese government relaxed its laws on state owned property. Faldo said on a recent visit: ‘The commitment of Hue’s People’s Committee will ensure that Laguna Lang Co is a true tourism draw for a very special region.’

And the scheme is far from unique. Despite starting from

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a very low level, Vietnam has one of the fastest growing economies in the world, and developers are not being slow when it comes to creating exciting new resorts to match the very best of Thailand.

Peter Ryder, managing director of Indochina Capital, says: “Despite the challenging investment climate, our core base of global institutional investors continue to recognise the potential of Vietnam’s investment market.” Indochina Land created the $160m Indochina Plaza scheme in Hanoi, a mixed residential and commercial scheme, and is currently working with another former European Ryder Cup captain, Colin Montgomerie, at the Montgomerie Links Golf Course and Estates at Danang.

Danang is one of the most popular tourist spots on the Vietnamese coast, with stunning beaches forming part of the country’s fast emerging golf coast. The Ocean Villas development by VinaLiving has 18 holes already, designed by Australian golf star Greg Norman, and 115 top of the range holiday homes At the Montgomerie Links, 66 luxury villas are being offered. All with private swimming pools overlooking the course against a backdrop of the Marble Mountains.

With Vietnam now hosting Asian tour events and the government looking to have at least 90 courses in place by 2020, the outlook is most decidedly bright.

Fairway to heaven: Vietnam’s Ocean Dunes

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i feature japan

After the tsunami — a foundation for hope The March 11 earthquake and ensuing tsunami created the worst disaster post-war Japan has faced. How has the real estate market been affected by the crisis and what is the government’s response to assure companies can continue confidently investing in Japan? By Gardner Robinson

T

akuya Ishikawa may not seem like your typical Japanese bureaucrat. He speaks clearly in English, acquired, perhaps, while getting his MBA from the University of Toronto. His friendly demeanor and energy reminds you of former Prime Minister Junichiro Koizumi. His government track record includes working on private sector financing for urban development projects, participating in WTO Agreement negotiations and working on issues such as economic surveys, personal information protection and settlement legislation.

In 2008, as director of the Real Estate Investment Market Office, he led a drive to revitalise the real estate investment market by promoting mergers, strengthening governance and provisions for J-REITS (Japanese Real Estate Investment Trusts) and other real estate related funds. In his current role as director of the Ministry of Land, Infrastructure, Transport’s Real Estate Market Division, he promotes Japan’s real estate market to the world. He draws on this experience when discussing the government’s response to March 11, the blueprint for recovery and how it affects real estate investment in Japan.

“Prior to the disaster, cross-border transactions were on the rise and so were the amount of J-REITS stocks being purchased (by foreign and Japanese investors). After the disaster, many foreign investors sold their stocks, while Japanese investors kept them. I think the foreign investors will come back, especially once we survive the summer energy cutbacks, and then there will be a great demand for reconstruction. I’m very hopeful about this.”

“However, people were naturally concerned some deals might fall through,” he continues. Particularly with foreign investors, but I don’t know of any big deals that didn’t close because of the disaster. I heard there was some extra due diligence being done, but the deals by Japanese and foreign investors all went through, and I was relieved

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to hear that,” Ishikawa says. “I also haven’t witnessed any significant drops in prices. I’ve seen several price indexes but there has been no remarkable reduction in price, rent rates or vacancy.”

The Nikkei Real Estate Market Report conducted a survey at the end of June with Urban Land Institute members in Japan and most concurred there had been no discounts offered and no change in the cap rates of properties, compared to before the March 11 earthquake.

Takaki Makino, general manager, overseas sales department for Tokyu Livable agrees: “The decrease in real estate price is smaller than expected. Although the number of transactions in April and May decreased, since June it has recovered. The downtrend in office rents is not as much as much about the earthquake as it is about uncertainty in the global economy.”

Despite the magnitude of the earthquake, Tokyo’s

Reconstruction could cost 19 trillion yen over five years — and 23 trillion over 10 years

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Related confeRences duRing MiPiM asia 15 November – 15:15 Big in Japan: Investing in its renewal 15 November – 16:00 Link-in: Japan – meet the key players (Networking Event) 16 November – 10:00 After the Quake: Rebuilding a Nation

Takuya Ishikawa

well-engineered, quake-resistant buildings did not fall down and business centres remained open. This was a relief to investors, yet they remained concerned heading into summer as businesses were asked to reduce electricity consumption by 15%. Some savvy developers will no doubt identify the demand for environmentally conscious, energy conserving construction.

“After summer, there won’t be any cut backs as far as energy consumption so business should grow steadier as the demand for rebuilding increases,” Ishikawa says.

Recently ex-prime minister Naoto Kan’s Reconstruction Design Council presented their 32-page report, which estimates rebuilding will cost 19 trillion yen over the next five years and about 23 trillion yen over 10 years.

Reconstruction bonds issued will be managed separately from normal government bonds and they plan to offer subsidies to local communities so they can develop and implement their own policies. The report also states the government will establish special economic zones where some of the red tape will be eased and land use regulations will be unified.

Ishikawa points out the challenges the national and local governments are facing in the aftermath of the Tohoku earthquake are quite different from what they encountered in Kobe nearly 16 years ago.

“In 1995 we had the great Hanshin-Awaji Earthquake.

At that time more than 6,000 people died, but there was no tsunami. Buildings fell down, but the land stayed intact, so once they got rid of the debris they could rebuild on the same sites.”

“But, on March 11, we had the tsunami. Many people had to evacuate, some lost their land and were forced to find new places to live because of the sea water. The big difference was this transfer demand. In terms of building infrastructure, first we must clear all the debris and the toxic sludge the sea water left behind. This takes human

hands and time. Once the land is clear, then we can construct buildings.”

Now that the recovery plan has been laid out, local governors must decide how to allocate land for housing and commercial buildings, and then mobilise to clear the land so it can be used. Building this infrastructure will take a lot of money, so the government has issued bonds and subsidies to support the recovery.

“After the infrastructure is set up, then there is an opportunity for private business. We want to present a lot of chances and we expect to attract many international investors and companies. Until the planning and infrastructure is ready, it could be risky for foreign or domestic investors to build on this land. ” The demand for labour, however, will continue, which is a boost to the construction industry.

“Even in Tokyo there is a shortage of construction workers,” Ishikawa notes. “Many are working hard in the disaster areas. There has also been a shortage of water pipes and other construction materials, so we’ve had to import some of things. Luckily the yen is strong. I guess there is good and bad in everything,” The resilience the Japanese people have shown as they’ve been presented with various problems and challenges has been inspiring. Some foreign workers have left amidst uncertainty and fear, but those that have stayed have built an even deeper connection with Japan. Ishikawa feels real estate investors betting on Japan will similarly benefit.

“Many foreign investors and researchers asked me what the effect of the disaster is on the Japanese economy and real estate market,” he says. “The market has been remarkably stable despite the earthquake. Deals successfully closed, J-REITS, rent and vacancy rates were remarkably stable. We will definitely see a recovery demand and the economy will be on the rise. So, I’m quite optimistic people can invest in Japan with confidence.”

The effects of the disaster on business decisions

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i feature

Related confeRences duRing MiPiM asia 15 November – 14:45 Link-in: South East Asia (Networking Event) 17 November – 14:00 The rising stars of Asia

Malaysia and indonesia

Malaysia and Indonesia — primed for steady growth Factors including an increase in wealth and tourism in Malaysia and Indonesia are underpinning residential and retail markets. Steve Killick casts an eye over the prospects for growth in the two countries

T

he global economy is being led by developing Asia. Where many western property agents are depressed at battling against weak growth patterns and a pervading lack of confidence there is a sense of steady progress to be found when quizzing leading property figures in both Indonesia and Malaysia.

Indonesia has been less affected by the worldwide recession than most of its Asian neighbours primarily because exports play only a small part in the country’s economy. According to the Indonesian Chamber of Commerce & Industry, the property market looks set to enjoy steady growth against a backdrop of economic growth of around 7%.

Increased wealth has led to an upturn in residential activity, especially among middle and upper income groups, and provided the added stimulus of banks being prepared to lend more. Permata Bank expects its mortgage loan book to surge by 20% during 2011, with nearly US$564m in housing loans.

An increase in disposable income has also seen some big money transactions in the retail sector, with Indonesia’s largest listed integrated property developer and mall operator, Lippo Karawaci, tying up two huge deals in Jakarta for both its Kemang Village Mall and St Moritz Mall, two massive mixed use schemes.

Indonesia branded retail giant, PT Mitra Adi Perkasa (MAP) is taking a 44.500 sq m in the two centres, more than 20% of the scheme’s total leaseable area. Debenhams is taking 17,000 sq m at Kemang which opens in 2012, and 17,500 sq m at St.Moritz which will open a year later.

According to property analyst Bangga Nirwanjaya, general manager at Cushman & Wakefield, West Jakarta is already the

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fastest growing area in the region, with prices increasing 10% annually, but he reckons that the St Moritz scheme could push prices up by as much as 20%. “St Moritz is an independent development area that has everything in it,” he says.

“People won’t worry about going out only to be trapped in traffic.”

JW Marriott hotels has also signed up for the two centres with a 208-room hotel in St Moritz and a 275-bed offer in Kemang, both providing five star facilities.

Rapidly growing tourism, allied to a stable economy has seen similar improvement in property prices in neighbouring Malaysia, although there is still a large surplus of second-hand residential space throughout the region.

However, despite negative economic growth in 2009, the economy grew last year by 6.8%, a figure that any Western political leader would jump through hoops to attain, and forecasts suggest that an average of 4.9% pa will be achieved between now and 2015.

The Government has set a target of turning Malaysia into a high income, developed nation by 2020, and it is at the higher end of the property scale where most activity has been seen. Buyers of homes in sought-after locations, such as Klang Valley in Selangor State, have seen capital appreciation of between 20% to 30%.

Christopher Boyd, chairman of CB Richard Ellis, thinks the prices of landed properties in the Klang Valley and Penang will continue to rise, supported by a strong economy, which will be spurred by heavy expenditure on infrastructure and other projects, and high commodity prices.

A combination of cheap finance and high confidence looks set to see a steady rise in land values albeit at a slower rate than has been seen over the last 18 months.

Looking up: Petronas Towers, Kuala Lumpur, Malaysia

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i feature

Related confeRence duRing MiPiM aSia 15 November – 11:30 East to West: Investing in the old world

tourism

Taiwan’s booming tourist numbers Taiwan is opening up to tourism, with individuals from China allowed in as of this year, and shopping high on their hit list. Steve Killick takes a look

W

hen Portuguese sailors passed it in 1544, they called it Ilha Formosa, the beautiful island. Now it is known as Taiwan and visitors are still coming from Europe, although the Taiwanese are deliberately targeting wealthy visitors much nearer home.

The explosion of China into a financial powerhouse has led to a surge in the demand among its more affluent citizens for luxury goods. First Hong King was targeted as the place to go to satisfy the need for designer watches, fashion and jewellery. Now Taiwan is perceived as the dream destination where an even better deal may be had and the powers that be in Taiwan have not been slow in embracing the advantages of high spending neighbours.

Since Nationalist Party president Ma Ying-jeou allowed Taiwan to open its borders to tour groups from China in 2008, the country has made more than US$6.94bn from Chinese tourism. And unlike western tourists, who prefer to spend time sightseeing when they are on vacation, the Chinese are most definitely in Taiwan to shop.

It is reckoned that every Chinese visitor will spend US$246 each day which is why on June 28th of this year Chinese visitors were allowed into Taiwan individually rather than solely as tour groups. Howie Wang, head of research at Jones Lang LaSalle in Taiwan, says: “The surge in Chinese tourism has had a really big impact on property in the country. In the retail, leisure and even office sectors we are seeing large sums invested on the back of Chinese spending power.”

Wang cites Taipei’s Tower 101, Asia’s tallest building, as a prime example of catering for big-spending tourists.

Jones Lang LaSalle’s The 509.2-metre tower cost Howie Wang US$1.766bn and boasts 65,000 sq metres of retail space. And what a line-up of top names: Louis Vuitton, Bulgari, Cartier, Gucci, Prada and Versace all have major outlets.

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“The Chinese have helped create the development of modern Taiwan,” says Wang. “Not just in shopping malls, but also in terms of flights in and out of the country, infrastructure and transportation and a surge in new hotel occupiers.”

During 2010 Accor’s first Novotel, the Novotel Taoyuan International Airport Hotel opened, IHG opened its first managed Crowne Plaza in Kaohsiung, as did Starwood’s luxury boutique hotel W and its Le Meridien. The Kagaya, a renowned Japan-based hot springs hotel also welcomed guests for the first time in Taiwan.

And the action is not simply based on the capital, Taipei. Having 1.3 billion Chinese residents just across the Straits of Taiwan has had a massive ripple effect throughout the country. Taichung, one This year’s MIPIM Asia sees a strong Taiwanese delegation of the most populous of Taiwan’s cities, including Minister Dr. Christina Y. Liu, Council for Economic Planhas become a battleground for both local ning and Development, (R.O.C.,Taiwan). and overseas hypermarket chains. The US-based Costco Wholesale chain attracted 30,000 shoppers on its first day of trading, whilst there are numerous local branches of French Carrefour fighting it out with local success stories RT Mart and save & safe.

But do not get the impression that Taiwan is all about giant high-rise and cranes littering the skyline. This is still a most beautiful country with fab“The surge in ulous scenery, beaches and any number of historic Chinese tourism monuments and temples to has had a really enjoy. There are also some big impact on great golf courses, with property” Taiwan’s Yani Tseng currently the world’s number Howie Wang one lady golfer. Taiwan’s Jones Lang LaSalle tourism is in good hands.

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i feature south korea

Good Korea moves South Korea’s government has reacted swiftly and sensibly to take the heat out of the stormy housing market and stimulate demand. Steve Killick investigates

H

ousing bubbles have been bursting all over the world over the last two years. South Korea, Asia’s fourth largest economy, is one of the latest to hear the sounding of things going pop as its spiralling housing market took a drastic tumble during 2010 with savings banks and leading construction companies filing for bankruptcy.

Yet compared to the Arctic winds blowing through the housing markets of the US and southern Europe, South Korea looks better placed to weather the storm than most, particularly as the Government has acted speedily in hiking interest rates and bringing in tax incentives to stimulate demand in what was a chronically over-supplied market.

The Korean housing market is an unwieldy beast, with the country the second most urbanised nation on earth, only exceeded by Singapore. There is also a confusing variety of ownerships, with 40% of the country’s 49 million population living in apartment blocks of more than five storeys, which can either be bought or leased or held on a combination of the two.

Jeongsei is where the tenant gives the landlord key money amounting to up to 70% of full market price and stays there for a defined period, usually two years, without paying rent. There is also ‘wolse’, where all the rent is paid up front with no deposits required.

It was the prospect of cashing in on pent-up demand during the early years of this century that attracted so many Korean investors into property ownership and encouraged developers to bring ever more accommodation onto the market. And when the downturn in the economy came, people could no longer afford many of the properties they were in, and the bubble burst.

“Home buyers considered themselves more as investors than consumers, but we have come to a time when taking on mortgages worth many times your salary is downright stupid,” says Lim Sang-soo, a researcher at the Hyundai Research Institute.

South Korea is now in a process of steadying the ship having had four interest rate increases from 2010 to March 2011. It also has major advantages because of its close political alignment with the US and Europe. It is not coincidental that the 2012 World Expo is to be held in Seoul.

South Korea also invests extensively outside its own country with its national pension fund, NPS, looking to invest

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The big picture: Seoul, host city of the 2012 World Expo US$4bn overseas during this year in order to support a country’s residents with one of the longest life spans and lowest fertility rates in the developed world.

In turn, President Lee Myung-bak, a former CEO of Hyundai engineering and nicknamed ‘The bulldozer’, is trying to pull in overseas investment in order to kick-start the housing market again.

His Grand National Party has already granted permission for two new Real Estate Investment Trusts (REITs) where at least 90% of taxable income is distributed to shareholders annually in the form of Corporation Taxexempt dividends. Macquarie Bank from Australia has already made big plays in the Korean REIT scene and Myung-bak is looking for more to follow.

With the most active growth in domestic prices for 34 months at the start of this year, landlords prepared to offer greater incentives to residential occupiers, and last year’s growth rate set at 6.2%, South Korea may allow itself some cautious optimism for the future.

“Taking on mortgages many times your salary is downright stupid” Lim Sang-soo, Hyundai Research Institute

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i feature china

Greening the dragon China’s rapid rise is being accompanied by a concern for sustainable growth, with environmentally conscious development across the country. But will it be enough?

Damian Arnold investigates

A

s China’s urbanisation continues apace, the country is keen to demonstrate to the world that it can offset the carbon-generating impact of this rapid development with environmental measures.

To that end, there are more 100 Chinese cities with some form of eco-city development implemented or planned.

Earlier this year the Chinese Government designated Guangdong and Yannan in the south, Shaanxi and Hubei in the centre and Liaoning in the North as low carbon provinces. It also announced eco-city developments in Shenzhen, Xiamen, Guiyang, Hongqing, Nanchang, Hangzhou, Baoding and Tianjin, On face value, China is doing more than any other country to build eco-cities. However, the critics claim that such developments are dwarfed by much bigger-scale urbanisation, further industrialisation and huge rises in car ownership from the country’s growing middle class.

There are more than 650 cities in China with around 600 million urban residents. By 2025, there are expected to be more than 1 billion people living in Chinese cities.

Such dramatic urbanisation can only be achieved in a sustainable way because the country does not have the natural resources to support urban growth at the present rate The new Guangzhou Bus Rapid Transit (BRT) system is cutting traffic congestion and is the first of many across China of consumption, says Mark Harrison, senior director of Atkins China, working on Nanchang and Yinchuan eco- government is saying is very nice, but it is the local govcity developments. “China has an imperative to do this. ernment that decides whether to allow a local factory to Resources per capita in China are lower than in many oth- be built and 80 per cent of the local government tax iner developed countries in terms of agriculture and energy come comes from employment in these factories. Even and it will use up a lot of resources as it continues its eco- though these factories pollute rivers and surrounding agnomic development. Dr Yiyi Lu, a Beijing-based director ricultural land the decision is still made to carry on beof the international affairs think tank Chatham House, cause they cannot afford to lose the revenue. argues that despite all the good Environmental experts argue intentions of the five year plan, that as China has some of the the central Government can do biggest challenges to face, it is “Resources per capita little to curb huge environmental there that we should look for the are lower than in many damage from urbanisation. solutions and innovations in the “Ecocities tend to be small 10 sq developed countries in next 20 years because there is km developments within much the biggest pressure to succeed. terms of agriculture larger development of say 100 sq And there is cause for optimism and energy” km. They are dwarfed by new inin the city of Guangzhou, in Mark Harrison, Atkins China dustrial development and new the Guangdong province in the factories. What the national South.

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Related confeRences duRing MiPiM asia 15 November – 14:00 China’s ageing population: implications for real estate 15 November – 14:45 Link-in: China – meet the key players (Networking Event) 16 November – 11:15 Liveable Cities: Eco-friendly infrastructure and housing for building a sustainable future

The recently completed Guangzhou Bus Rapid Transit (BRT) system has transformed the way people move around a city that was notoriously congested with vehicular traffic. Since the BRT opened in February 2010 on dedicated road space through the heart of the city with a population of six million people, use has far outstripped predictions with around 800,000 using it per day, three times the throughput of any other BRT in China.

The project, which this year won the Institute of Transportation and Development Policy Sustainable Transport Award, comprises 113 stations. At the stations there is bicycle hire available (free up to one hour) facilitating 20,000 bike journeys a day. Such has been the success in changing people’s travelling habits that many other BRT systems are planned in China, with one currently being built in Lanzhou and set to open early next year.

“BRT is vital for China because of the low cost and the fact that it can be built very quickly, says Karl Fjellstrom, Greening the city: Donghaochong Greenway park, Guangzhou, on a summer night vice-director China, for the Institute of Transportation and Development Policy which designed the system in provide employment opportunities for the residents and partnership with the Guangzhou Municipal Engineering reduce their need for commuting. Twenty per cent of the Design and Research Institute (GMERI). “Metro is ex- city’s energy will come from renewable sources and a sigpensive and so much slower to build and therefore impos- nificant part of the water supply from desalination plants sible to keep up with development. The key to Guangzhou and recycling of waste water. Buildings will be constructis high capacity that can absorb urban growth. It is al- ed to a green code and residential blocks will be permeaready has the second biggest passenger throughput in ble for pedestrians, cutting down on car travel.

Will such demonstration projects have the desired efthe world, but there is still amfect? A cause for optimism is ple capacity for growth.” that Chinese developers now Xiaomei Duan, head of desee the commercial potential of sign at the GMERI says: “BRT is vital because of more sustainable development “Guangzhou BRT is like heartthe low cost and the but need more incentives from surgery for the city because we fact that it can be built Government. won the political support to Albert Chan, director of Shui build it on key roads in the city very quickly” On Land which is developing centre that were very congestKarl Fjellstrom, Institute of first residential communities ed and not on roads that can be Transportation and Development Policy to LEED phase 2 standards in built on easily. Car owners and Wuhan Tiandi (1.5 million sq the local media were worried m) and Chongqing Tiandi (3.5 about taking space from cars. million sq m) and Foshan Tiandi (1.5 million sq m), says: In fact, car speeds increased after the BRT opened.

“There has been a vast increase in awareness and new buildGuangzhou is an example of China leading the world in susing codes are more stringent.

However, the Government has tainable transport and getting to grips with pollution in an exnot given developers enough incentives to make their develisting urban centre. There are high hopes that the Sino-Tianjin opments even more sustainable than codes require. Chinese eco-city in the North will be the model eco-city development consumers are still not willing to pay more for something that will inspire the country’s sustainable development. they perceive as more sustainable.

Because of that, develSino-Tianjin will be a 40 sq km city for 350,000 people 40 opers are still very cautious about spending on sustainabilikm from Tianjin city centre. It will be built around a centy aspects.

China is now the biggest producer and consumer tral core of wetlands. An “eco valley” will run through of cars but codes still require minimum parking standards. the city from north to south. More than 90 per cent of journeys will take place on public transport, walking and I would welcome it if the government reduced the requirecycling. There will be a light rail system and modified ment of parking. As developers we have to be competitive; two-wheel Segway vehicles that will operate on the roads. we cannot reduce parking if other developers do not. This As well as the city centre, commercial centres will be lo- has to come from the government. At least in China when cated in the northern and southern parts of the city to the government makes rules people follow them.”

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i feature

Greening the dragon

Karl Fjellstrom, who is working on mixed use zoning to cut down car traffic in Huizhou, pedestrian and bike facilities in Wuhan and a new BRT project in Changsha, says developers are open to change: “We’ve had a lot of interest in the BRT system from Chinese developers.

They realise that good access to their schemes from public transport will impact on land values.

Zhang Wentong, director of the Land Resource and Planning Bureau in Wuhan says that the key to future success will be the early integration of land use, transportation, energy and waste planning, because planning integration is where there has been a big disconnect in the past. Wentong is hoping this approach will pay dividends in Wuhan, where there are plans to utilise its water resources to create a wetland passageway, punctuated by six green wedges, to connect the Yangtze River and Han Rivers and lakes dotted around the city.

The most important principle is to create a reasonable layout of urban space. There is still a long way to go and it will take time to implement the planning before we can see the effect.”

In the energy sector, China still has the most coal plants in the world, but it is installing more wind turbines than anywhere else and is becoming a world leader in technologies such as producing water from waste water, says

50 I

Atkins’ Harrison, who is working with the UK’s Carbon Trust on a low car“At the moment it is bon masterplan for Ningxia Province still very difficult to sell in the North. “There is a large and raprenewable electricity idly growing interest in every technoloback to the grid” gy you can think of and a lot of research going on in the energy sector,” he says.

Albert Chan, Shui On Land “A lot of expertise now rests in China and a lot of energy solutions are likely to be pioneered in here.”

Shui On Land’s Chan says a key development will be for the government to make it easier for developers that generate electricity locally to sell back to the grid. “It would make such schemes viable.

At the moment it is still very difficult to sell renewable electricity back to the grid.”

China still has a long way to go to prove to the world that its urbanisation can be sustainable, but more sustainable development is quickly taking hold, says Fjellstrom.

“When we have five to ten very good very powerful examples in China it will make a lot of difference. The speed of development, though in many ways a challenge, is also an opportunity. When changes in a more sustainable direction do occur, they happen very quickly.”

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i feature finance and inVeSTMenT

Unlocking the Orient — investing in China What sort of investments are making it in China? Mark Cooper looks at the scope for growth in the country, including its second and third tier cities

Related confeRences duRing MiPiM asia 15 November – 11:30 Unlocking the Orient: Investing in China 15 November – 11:30 East to West : investment in the old world 15 November – 14:00 Opportunities in developping versus mature REITS markets 15 November – 14:45 Link-in: China – meet the key players (Networking Event) 15 November – 15:15 The real estate dragon spreads its wings 16 November – 09:30 Financing Asia’s appetite for Real Estate Investment 17 November – 14:00 Asian Eye: The new wave of changes to funding Asian investments

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he continuing growth of China is shoring up the world economy and making it the top pick for international investors looking to increase their exposure to Asia Pacific.

A survey carried out by the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV) found that 78% of its investor members named China as an investment target, encouraged by continued urbanisation and rapid growth in GDP and personal wealth.

Beijing and Shanghai were the first markets to be targeted by overseas investors, but they are increasingly turning to second and third tier markets (and even smaller cities) where there is enormous demand for modern housing, retail and commercial space.

“There are opportunities in many sectors and cities,” says Gordon Marsden, director, Asia Pacific investment at DTZ. “Retail is still ranked by more investors as the preferred sector, but there are still plenty of opportunities across all markets in the residential sector.”

Retail heart: TCT’s Huai Mall in downtown Shanghai The view on China’s residential market is very much more positive in Asia, whereas in Europe and the US, the words ‘China housing’ are almost always appended with ‘bub- there are a lot more markets where you can operate sucble’. A number of overseas investors, including Angelo, cessfully. There are numerous international retailers who Gordon and ING Real Estate Investment Management want to go to second and third tier cities, you can’t say the (bought by CBRE in February this year) have had success same for offices.” in the residential sector and are still seEarlier this year, TCT bought the lectively targeting it.

Huai Hai Mall in Shanghai for China’s retail sector is becoming inRMB574m. The shopping centre is “There are still creasingly popular with overseas incentrally located, but has not been acplenty of vestors, not just because of the growth tively managed and TCT plans to rein consumer demand, but for the opopportunities in furbish and upgrade it over the next portunity to add real value. Retail asthree years. many sectors set management is a nascent business Henderson Global Investors, which and cities” in China, lacking the skills evident in has managed a number of successful Gordon Marsden, developed markets. retail property funds in the UK and DTZ Richard David, chief executive of continental Europe, is evaluating its Treasury China Trust, a Singaporeoptions to access China for its institulisted company managed by Irish group Treasury tional clients. Head of research Alice Breheny says: “We Holdings, is overseeing a switch of emphasis to retail believe the medium term rental growth story for Chinese property. He is not abandoning the office sector, but says: retail is as good as we will find globally today. We believe “Long term investment management opportunities are the continued expansion of retailers in China and compeonly available in Tier 1 cities at the moment. In retail, tition for the best assets will put further pressure on rents.

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Directory

i feature Unlocking the Orient — investing in China This structural growth story is unlikely to be short-lived.”

Hotels are another big boom area, with one international-brand hotel expected to open in China every four days over the next 18 months (from August 2011), and some 84,000 new rooms provided in 30 major Chinese cities between the end of 2010 and 2013, according to the China Hotel Market Outlook Report produced by Jones Lang LaSalle Hotels.

DTZ’s Marsden also cites the industrial and logistics sector, which sees demand from both China’s export businesses and from the growing retail sector, as an area significantly undersupplied with good space. Overseas players Prologis and Global Logistic Properties are making a big play in China, but have still only scratched the surface of the logistics property market.

China is not an easy market to operate in and — despite core investors such as German fund manager SEB having bought assets – remains a market for value-add/ opportunistic strategies. Local partners remain essential, says Marsden. However, such partnerships are not a guaranteed success.

DTZ has been active in linking international investors with ‘best in city’ and ‘best in province’ developers in China. A key tip Marsden offers for foreign clients is to “try to understand your partners’ medium to long-term objectives”.

Some Chinese companies may just be looking for equity in a one-off deal, some might simply wish to learn what they can from a foreign partner (asset management skills for example), while others are genuinely looking for a partner they can work with for five or 10 years.

“A partner looking for a one-off deal is not necessarily a bad thing,” says Marsden. “As long as you are aware of what your partner wants, the relationship can be managed.”

A heavily- yet foggily regulated society, China’s investment legislation, with a multiplicity of rules, circulars, official opinions and acronyms can seem intimidating (see

Mayer Brown JSM’s David Ellis 54 I

Henderson’s Alice Breheny

box). The law can often be flexibly interpreted by central and local government.

However, experienced commercial real estate investors say it is more likely that the law will be interpreted for rather than against investors, especially if they have the right contacts and their project is one which meets the needs of a city.

Mayer Brown JSM partner David Ellis says: “We occasionally have advised investors that they will likely be prevented from doing certain things; however, as things turned out, with good contacts at the relevant authorities and the desirability of that particular project, the regulations were interpreted in a way that allowed them to proceed.”

Beijing also exerts an influence over what types of property are developed. “Historically, the central government has been much more keen on the development of new housing and less on, for example, the development of luxury hotels,” says Ellis.

China remains an opaque market for the real estate investor, although the large global property advisers now collect and make available more data than ever before. Marsden also points to the work of bodies such as ANREV, the Royal Institution of Chartered Surveyors and the Asia Pacific Real Estate Association in increasing transparency.

The market is also a competitive one. Ellis says: “The biggest threat to foreign investors is not legislation or government action, but simply that China does not currently need their money.”

Many Chinese developers are very well capitalised and only want foreign partners if those partners can bring skills as well as capital to the table, hence the popularity of retail. Smaller developers in Tier 2 and Tier 3 cities are more likely to need capital however, especially since Beijing has been increasing interest rates and trying to reduce bank lending to real estate this year.

Furthermore, Chinese insurance companies are now allowed to invest in real estate for the first time, creating a rival pool of institutional capital. However, some observers consider this a positive, as assets owned by Chinese insurers will create a new pool of “institutional” assets.

Too often, developers sell assets – particularly office buildings – floor by floor. This ‘strata-titling’ means that ownership is split and asset management of the building virtually impossible.

Another positive for overseas investors has been the development of offshore structures to hold real estate, which makes transactions less complex, although no longer tax-exempt. While no new offshore structures can be created, there are still plenty available.

“Over the past 15 years, a lot of buildings have become owned via offshore structures, which gives foreign investors a pool of assets which can be traded offshore,” says Ellis.

MajOr pOliCy iniTiaTives affeCTing prOperTy ciRculaR 698

The most recent significant policy change (December 2009) affecting foreign investment in Chinese real estate, Circular 698 is an anti-tax avoidance measure, which prevents non-Chinese investors from avoiding Chinese capital gains tax. Thus share sales involving offshore vehicles which own Chinese real estate holding companies will be subject to 10% capital gains tax.

When the initiative was first announced it was widely expected to be the end of offshore structures. A DLA Piper report declared Circular 698 would “spell the death knell for the most commonly used offshore holding structures”. However, investors have been inclined to accept the tax (which is lower than many countries) and Ellis reports that the circular has had little effect.

oPinion 171

This policy initiative set thresholds for entry of foreign capital into the Chinese real estate market for both personal use and “non-self” use (property investment and development for rent or sale).

For non-self use the entity or person must establish a foreign invested enterprise (FIE) and supply at least 50% equity for deals above $3m in value. To obtain debt, an FIE must have fully injected its registered capital, already obtained a Land Use Right Certificate, and ensured that its own capital for developing the project has reached 35% of the total investment for the project. Mergers and acquisitions involving property companies require MOFCOM approval.

ciRculaR 50

This policy was intended to regulate the entry of foreign capital into the real estate market and tightens the approval of FIEs and strictly controls foreign investment in high-end properties. It also allowed MOFCOM to scrutinise local approval of FIEs.

ciRculaR 142

Issued in August 2008, this circular specifically prohibits the purchase of domestic real estate using RMB converted from foreign capital other than for the FIE’s own use, unless the FIE is licensed as a real estate enterprise (a FIRE).

ciRculaR 130

This measure requires SAFE branches not to process foreign debt registration applications or approve conversion of foreign debt for FIEs which had not registered with MOFCOM prior to June 1, 2007. Newer vehicles will need to find onshore finance.

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i feature INWARD INVESTMENT

Russia’s sporting push After doing the double by winning the 2014 Winter Olympics and football World Cup in 2018, how much will Russia gain from the associated investment? Is this the catalyst it needs? By Doug Morrison

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is no infrastructure or the infrastruche impact of the Olympics ture is Soviet-era. And so it really does and the football World Cup “The potential provide a catalyst, a direction and a fohas long since extended beyond for tourism and cus for the modernisation and developsporting excellence and into the realms sports-related ment, where generally it is needed.” of big business and inward investment Already some harsh lessons have been tourism is — nowhere more so than in Russia. learned from Sochi, where the Olympic All eyes are on the country after wintremendous” development programme is under way ning the right to stage the 2014 Winter Darrell Stanaford after being hit by the 2008 financial criOlympics in Sochi and the 2018 FIFA CB Richard Ellis sis. According to research by consultWorld Cup. But its remarkable sporting ant Jones Lang LaSalle (JLL), the cost hit rate has not stopped there. In July this year Kazan was named host city for the 2015 FINA of preparing this Black Sea resort for the Games has risen from US$12 billion to US$25billion, and could top World Aquatics Championships.

Kazan is the capital of Tatarstan but is also widely known as US$40 billion. Yulia Nikulicheva, Jones Lang LaSalle (JLL)’s head of strategic consulting in Moscow, says the ‘Russia’s sports city’. It won the FINA Aquatics bid partly beprogramme has generated “lower interest from invescause the sporting facilities, hotels and accompanying infrators” than anticipated, forcing the Federal structure are due to be in place for the Universiade in 2013.

The Universiade, or world student games, may not have the kudos of the other events but it is nonetheless a major undertaking. Winning that bid has set Russia on its current course and defined its strategy — sport as a catalyst for wider investment.

Inevitably the focus is on the Winter Olympics, but as Darrell Stanaford, Moscow-based managing director of CB Richard Ellis (CBRE) in Russia, suggests, investors should look at the sporting programme as a whole. “Sochi is a oneoff event and so it is very good that Russia is getting some follow-on sporting events as well, which will help reinforce the country as a sporting destination,” he says.

Stanaford adds: “For investors I’d say the potential for tourism, and sports-related tourism, in Russia is tremendous. There is a strong push by Russia. That is one of their strategic goals. For investors who are focused on hotels, tourism and sports facilities, I think Russia, globally, is one of the best growth opportunities.”

Stanaford is in no doubt about the long-term benefits of these events to Russia. “It really is a catalyst for the development and in some cases the redevelopment of the country. Essentially in some cities where these events are taking place, there 56 I

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Government and state-owned banks VTB, VEB and SberBank to finance much of the development.

Some projects not directly linked to the Games have been abandoned. But Nikulicheva believes there are still “co-financing” opportunities for foreign investors, such as hotelled, mixed-use projects in the Imeretinskaya Valley and the Sochi Grand Marina in the city centre. JLL research reveals that modern hotel supply in Sochi will rise from 1,070 rooms today to 20,000 by 2014. The question for investors is whether those rooms will remain occupied after the Games.

In many respects, the investment momentum has shifted elsewhere in the region, notably the five mountain resorts under the control of the North Caucasus Resorts Company (NCRC). Akhmed Bilalov, NCRC’s chairman, claims the so-called “megaproject” could attract a total of US$15bn of investment based on an ambitious projection of five million tourists visiting the resorts annually. “We also think that upon the implementation of the project 200,000 new jobs will be created and the gross regional product will double,” he says. One Russian businessman, Suleyman Kerimov, the owner of NaftaMoscow Financial and Industrial Company, has already pledged US$1.38bn for the project.

The big incentive for overseas investors is the creation of Special Economic Zones, which will offer tax breaks on a development programme that includes hotels, restaurants, leisure and sports facilities. Further support comes from the Federal Government, which is investing US$2bn in infrastructure alongside the private sector.

The big obstacle to investors is the region’s history as a political trouble spot and its reputation for crime. “The Northern Caucasus are best known for their political problems and you have to overcome that and get people familiar with the positive things and to differentiate between the different areas there,” says CBRE’s Stanaford.

Bilalov does not duck the issue. “The criminality and terrorism in the Caucasus is a problem which, if left unhandled, may certainly hinder the implementation of a project of such scale,” he says. “But we expect that after creation of a certain number of jobs in the North Caucasus, for example, through the construction of hotels, the situation shall be significantly improved.”

He points out that Austrian companies have already signed up to become involved in the design and construction of the alpine resorts. Stanaford believes there are similar opportunities for foreign designers and contractors in the stadia that need to be built in the 13 host cities in World Cup. “There is a huge amount of work for the real estate industry that is going to come out of the World Cup. For investors there are some opportunities to invest in sports facilities although the Government is counting more upon Russian co-operation to finance the stadiums,” he says. “Sports stadiums in general are challenging from a finance standpoint but they are great work for architects, contractors, equipment providers and project managers.

For investors themselves, there are hotels and a lot of infrastructure projects that are attracting investment where the Government cannot finance it all and is ready to give long term concessions.”

Stanaford adds: “We’ve seen at the Olympics that investors have been a bit late [getting involved], so we try to encourage them to think farther out. With a lot of these projects you need to get into them very early. Now is not too early. The 2018 World Cup is actually not that far away. And now is the time — particularly if you are not currently investing in Russia — to start to investigate where the opportunities are and probably to get together your capital. It is not a quick process.”

The Grand Marina in Sochi by Dubai-based Mourjan Marinas IGY

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i feature retail

What’s in store for Asia Backed by big populations and fast-growing economies, retailers remain bullish about the prospects for growth in China and India. By K K Chadha

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etailers see big potential in China and India, Asia’s fastest growing economies, with populations of more than one billion each. And the evidence is in activity, right across the region.

First, China. In August, Japan’s Cross Company signed a deal with leading Hong Kong-based fashion distributor I.T. Limited, which will see the chain launch in the Chinese market, with a projected 120 stores within three years and sales of ¥10 billion (US$135 million).

The deal also includes a tie-up with Singapore developer Capitaland to open in its malls across Asia, providing a quick and easy source of locations.

Cross president Yasuharu Ishikawa was as usual confident about future prospects at the press announcement, suggesting the new venture could lead to a 1,000 store operation in China within 10 years.

And South Korea’s Lotte Group plans to open 300 stores in China by the end of 2018, up from 82 now.

Guo Miao, public relations manager of subsidiary Lotte Mart China, said the retailer will open three outlets in north China’s Hebei province this year.

It will also open eight stores in east China and three outlets in Jilin and Liaoning provinces this year.

“The entry and expansion of foreign companies in China will definitely affect the local retail industry,” says Wang Hongtao, spokesman for the China Chain Store & Franchise Association. “But they will also bring good management, marketing and logistics strategies.”

China will become the world’s second-largest consumer market by 2015, behind the US, with enough purchasing power to buy 14% of the world’s products, up from 5% now, according to research by the American Chamber of Commerce in Shanghai (AmCham Shanghai) and Booz & Co, a management consulting firm.

“More than 80% of US companies in China are here to serve the Chinese market. The emerging Chinese consumer is a key factor driving that trend,” says Brenda Foster, president of AmCham Shanghai.

According to the report, most respondents considered shopping on the internet and cell phones, as well as through gaming and social networking sites, as an important means of influencing the mindset of the emerging consumer class.

58 I

Highly sculpted: Hong Kong’s Festival Walk retail mall

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Related confeRences duRing MiPiM asia 16 November – 14:00 Globalisation of retails brands in and out of China: Successes and challenges 16 November – 14:45 Link-in: Retail- Meet the key players ( Networking event)

China’s household consumption rate will rise gradually, and experts said the government should improve the welfare system to increase consumers’ willingness to spend.

According to the National Bureau of Statistics, first-half retail sales reached 8.58 trillion yuan (US$1.33 trillion), up 16.8% from last year.

Figures from JP Morgan suggest that the consumption growth rate in the first quarter accounted for 60.2% of gross domestic product growth, up from 47.6% in the fourth quarter of 2009.

modern retail outgrowing small stores in india In booming India the arrival of big retailers has had an impact on small stores, but neighbourhood stores are still growing their sales, though at a much lower rate, according to research firm Nielsen.

Since 2006, when most big retailers either entered the retail space or began expanding their network, sales in local kiranas (small stores) have grown in the low single digits, while modern stores’ trade has grown in strong double digits, though from a much lower base.

Sales at modern stores grew 34% in 2006 and 29.3% in 2010, but traditional stores could increase sales only 1.5% in 2006, and improved the rate to 6.2% last year.

The data comes at a time the government finally moves closer to allowing multinational retailers such as WalMart and Carrefour to open stores in the country after several years of debates, protests and lobbying.

Critics say such a move will impact the livelihood of small shopkeepers and traders, but the thinking in government circles is that this will help check rising food prices by removing several layers of middlemen between farmers, producers and consumers.

Organised retail accounts for less than 10% of India’s retail market, estimated at close to $400 million. The Boston Consulting Group estimates the size of organised retail market at $28 billion and expects it to grow nine times to $260 billion in 10 years.

“The Indian Shopper has discovered modern retail and is increasingly shopping there,” says Dipita Chakraborty, Nielsen’s executive director for retail and shopper practice. This trend is fuelled by the growth in number of modern stores, she adds.

The study shows that 37% of consumers visited modern stores every month this year, up from 30% last year.

trading well in Hong Kong and singapore International retailers are also doing very well in Hong Kong and Singapore, where millions of mainland Chinese tourists go for holiday shopping.

British luxur y brand Burberr y plans to take over a major part of the space that specialit y department store Lane Crawford currently occupies in

H o n g K o n g ’s Pa c i f i c Place mall.

Swire Properties, which ow n s t he ma l l , sa id Burberry had committed to take up about 21,000 sq ft over two storeys for its flagship store, expected to open in the second half of 2012.

Lane Crawford will close its Pacific Place branch when its lease expires in February 2012. It currently occupies about 50,000 sq ft in the mall.

In one of the largest leasing transactions so far this year, clothing brand Abercrombie & Fitch leased several floors in Pedder Building in Hong Kong’s Central Business District for about HK$7 million (US$897,595) a month.

Singapore’s Mapletree Investments has acquired How they rank - Beijing and Shanghai notable Asian risers Festival Walk, a big retail mall in Hong Kong which also has an office component, for HK$18.8bn (US$2.41bn) from Swire Properties.

Mapletree Group CEO Hiew Yoon K hong, says: “This acquisition is a milestone as we have secured a good size and high quality asset in our first retail project in Hong Kong.”

Hiew said that on top of being fully occupied with good quality tenants, rental income from Festival Walk has also increased consistently since completion, reflecting the quality of the mall.

Completed in 1998, Festival Walk comprises a sevenstorey retail mall and a four-storey office block. It drew around 40 million shoppers in 2010.

Featuring international retail tenants as well as multinational corporations, the mall has 580,000 sq ft of retail space and 220,000 sq ft of Grade A office space.

Also slated to be a “seed asset” for a portfolio of Hong Kong commercial properties which Mapletree intends to develop under a Hong Kong-focused fund over the next two to three years, the mall will be acquired together with other institutional investors as capital partners.

Hiew says: “We are excited to expand our footprint in the dynamic Hong Kong market where we can further build our presence in the city. More importantly, this acquisition reinforces our strategy to scale up in key markets in Asia.” www.mipimasia.com I magazine I October 2011 I 59

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i feature australia

Aussie rules The city of Perth in Western Australia is one of the country’s fastest growing. And with ‘pro-development’ mayor Lisa Scaffidi in charge, improvements to the way it looks and feels are in good hands. By Steve Killick

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he city of Perth, capital of the State of Western Australia, has one really big advantage over its Australian rivals. In its back yard, the world’s largest supplies of iron ore and natural gas are to be found, which is more than just a handy little nest egg to be able to fall back on in troubled times.

A secure financial backdrop has been the springboard for Perth to enjoy the highest growth rate of any Australian city and a focus for commercial property activity. Lisa Scaffidi, Perth’s dynamic mayor, is even married to a property developer, Joe Scaffidi. Whilst criticisms have been levelled at the mayor for her pro-development bias, there is no doubt that the shortage of grade A office accommodation in the Central Business District have sent rents spiralling amidst a clamour for more space.

“I’m proudly pro-development,’ says Scaffidi. “The only way this city is going to grow is upwards and through denser population. That is what will make this city really, really happening.”

“As more people live and do business in the city, we will get a critical mass,’ she says. ‘With that critical mass I want to see that vitality and opportunity. I want to see supermarkets in the city, and delis, and boutique cinemas, and all of the things you get in places like New York and London.’

In order to maintain momentum, the City of Perth Council adopted an Urban Design Framework in 2010 that sets out the future for development in the City. St Georges’ Terrace, which runs parallel to the Swan River, will remain the primary commercial street in the city, although Scaffidi is keen to see an increase in mixed use in this traditional office-only thoroughfare.

She has been influential in changing the planning process to ensure maximum flexibility by actively encouraging a mixture of different users by offering development bonuses to property developers to incorporate retail and cafes on the ground floor of prime office space which historically have been used as a reception area, leaving only a large empty foyer facing onto the street.

According to agent CBRE, Perth office rents are set to increase over the next five years by 4.2% p.a. as vacancy rates fall to 5%. Office chief Andrew Denny says: ‘Perth’s

Perth’s dynamic mayor: Lisa Scaffidi office rental growth is forecast to far exceed the national average as the city benefits from a second round of resource sector expansion. Increased confidence in the local economy has led the rebound in tenant demand for office space.’

Recent key deals saw Bechtel Australia Property acquire 11,400 sq ft at AMP Building, 140, St George’s Terrace, and St George Bank acquire 24,000 sq ft at nearby Westralia Plaza, where Fluor also leased 27,400 sq ft.

Prime net rents range from $49 to $77 per sq ft, with incentives dropping substantially over the last year.

As traditional core space is snapped up, a ripple effect is being created, with some large space occupiers preparing to move out from the traditional heartland with Fortescue www.mipimasia.com I magazine I October 2011 I 61

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i feature

Aussie rules

Metal Group taking an additional 130,000 sq ft at the Hyatt centre, Shell moving into 2, Victoria Avenue, and ENI taking over 50,000 sq ft at 226, Adelaide Terrace.

According to a report by agent Knight Frank, 1.45m sq ft of offices will be completed by the end of 2012, with the long-discussed redevelopment of the Melbourne Hotel site at 942, Hay Street, bringing an additional 120,000 sq ft sometime in 2013. However, Knight Frank expects that secondary space is going to prove more difficult to shift, with vacancy rates currently standing at 12.1% in the Central Business District, a rise of 3.6% from the start of 2010.

With this surge in demand for new space, Mayor Scaffidi has faced criticisms that much of what is left of old Perth will be washed away in a tide of new, glass clad tower blocks, although she refutes this, pointing to the awards the city has won from the Heritage Council of Western Australia for providing heritage grants, demarcation of conservation areas and providing rate rebates for occupiers of historic buildings.

The State Government has also announced a $440m development of Perth waterfront, forming what Scaffidi calls “The most significant transformation that central Perth has ever seen.” For some 30 years, debate has raged over what could be done with the former port area of the city, which covers some 25 acres.

Over 15m sq ft of offices, 450,000 sq ft of retail and 1,700 apartments will be built in an effort to get Perth residents to reacquaint themselves with their river. There will also be a large element of leisure and recreation facilities, with a cable car running from Kings Park to the foreshore, new parks, a waterfront promenade that will link to an island in the river, cafes, restaurants and at least one major hotel. “This is all part of rebranding ourselves on an international scale,” says Scaffidi.

Given the enormous sums of money now being invested to raise the city’s profile, with major refurbishment plans under way at the airport, the introduction of a light railway system and a new underground busport, it seems remarkable that the state of Western Australia’s retail opening hours are still firmly locked in the 20th century, with six-day-a-week trading with shops closed on

On the Waterfront: the plans for Perth’s foreshore a Sunday and in the evenings, although there are signs that this is slowly starting to change.

Some areas, including the CBD, have been designated as special trading precincts. With retail in Western Australia worth £25bn a year and the state’s largest employer of some 172,000, it seems remarkable that such an inflexible system has lasted so long, although Scaffidi admits that the time it takes for progress to be made is one of the few frustrating things about living in Perth.

But she freely admits there are so many goods things too. When asked what her favourite things about Perth was, she had no hesitation: “The buzz that comes with a dynamic, growing city and being able to influence that development.”

the gold standard Over on the other side of Australia, the tourist Mecca of the Gold Coast in south east Queensland has seen its commercial sector begin to bounce back.

According to the Property Council of Australia (PCA), vacancy rates in the Gold Coast office market are at last starting to fall and are expected to continue to do so. Vacancy levels in Grade A offices over the first six months of the year fell from an alarming 33.4% to 25.3%. PCA reckons this figure could be down to 18% by summer 2012 as the city re-emerges.

The $850m twin towers of Oracle Broadbeach, itself having been placed into voluntary receivership, has two more occupiers for its office space with the signing of Southern Cross Media and Gold Coast Tourism. PCA Queensland executive director Kathy MacDermott says it “will be a long road to recovery”, but a number of major infrastructure investments and bidding for the 2018 Commonwealth Games will all provide a focus to get things moving again.

“The $949m Rapid Transit light railway is a catalytic project which will stimulate all sectors of the property market,” she says. “These initiatives, along with Queensland Treasury’s projected five per cent

62 I

growth forecast for the state in 2011-12, will underpin the Gold Coast office market’s gradual recovery.”

Agent CB Richard Ellis also reports slow recovery in the strata titled office market, a form of ownership devised for multi-level office and apartment blocks with shared common areas. Vacancy was up to 30% at the start of 2010, an all time high, but had fallen back to 22.6% at the start of this year.

With Allconnex Water taking 38,000 sq ft in the Rocket building, Robina, the figure has now fallen below 20%. This is the first time the strata titled stock vacancy has fallen below that of the total Gold Coast offices since 2005.

And despite the strength of the Australian dollar, which has persuaded many locals to holiday abroad and even more overseas visitors to look elsewhere, there is a gradual improvement in hotel take-up, particularly in the business sector of the market.

Given that Gold Coast is the third largest tourist centre in Australia regional leisure hotels have been struggling, although there has been a heartening upsurge in occupancy in the Central Business District. Across the board Gold Coast occupancy is expected to rise to 67% with average room rates up from 2010 to $135.

magazine I October 2011 I www.mipimasia.com

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i feature HOTEL DEVELOPMENT

Checking out in India With healthy growth and a major supply of visitors, India is proving to be fertile ground for some of the big hotel chains.

K K Chadha takes a look

S

our way to achieving that target,” says everal international hotel Accor Asia-Pacific chairman and COO brands are setting up shop in “During the Michael Issenberg.

India, which has overall healthy recession, there Global Hyatt Corp, operating in India economic growth with a large domesis an increase in since 1982 and having full-service hotic consumer base and expects a signifitels like Hyatt Regency, Grand Hyatt cant increase in foreign tourist arrivals. demand for and Park Hyatt brands, is planning 20 While the luxury and upscale playaffordable properties, including six Hyatt ers started eyeing the Indian market business hotels” new Place hotels. during the mid-90s, mid-market and Keshav Baljee, Royal Orchid Around 6,000 rooms will be added as budget brands like the Courtyard by part of the expansion. The growth plans Marriott, Hilton Garden Inn, Four Points by Sheraton, Novotel, Aloft, Premiere Inn and are not confined to leading cities. The company will also Ibis have strategically entered the market over the past target tier II and III cities with its new upper mid-segment brand Hyatt Place. two-three years.

A recessionary business environment following the Marriott is also setting up 24 new properties over the next global financial crisis did not deter hotel chains such as few years, with room inventories exceeding 10,000 rooms.

Marriott, Accor, Hyatt and Royal Orchid from going Royal Orchid, which has 12 hotels and 1,000 rooms, is ahead with their expansion plans, viewing the downturn adding 1,000 rooms in the 4- and 5-star categories.

“During the recession, there is an increase in the demand as a cyclical phenomenon.

Accor is expanding its network in India with 48 hotels for affordable business hotels,” says Royal Orchid vice(9,980 rooms) that would be a mix of its Sofitel, Pullman, president (corporate affairs) Keshav Baljee.

In the wake of the global recession in 2008 hotel chains Novotel, Ibis, Mercure and Formule 1 brands.

“About seven years ago, we made a commitment to across India cut prices by 15% to lure customers. India launch and grow our business in India to include Accor’s Inc’s cost-cutting moves also contributed to the decline core brands and have 50 hotels by 2012. We are well on in room rates, experts feel.

Park life: The Park Hotel in Hyderabad was named Best Overall Development and Winner of Hospitality Category at MIPIM 2011 in March. Architect: Skidmore, Owings & Merrill LLP - Developer: Apeejay Surrendra Park Hotels

64 I

Temple Towns see hoTel boom

By K K Chadha India’s pilgrimage centres are also becoming hot-spots for hotel chains, as domestic and international groups look to plug a gap in the market for quality accommodation.

Devotees flocking to socalled “temple towns” such as Shirdi in western Maharashtra state, the Sikh holy city of Amritsar in the north, and far-flung Haridwar have for years had to make do with basic facilities.

But a rise in disposable incomes and more Indians experiencing foreign travel — both the result of India’s buoyant economy — have led to demand for more than just a bunk-bed in a community centre or floor space at a guesthouse.

“There was a time when people who were visiting these temple towns did not have the money for quality accommodation,” says Gaurav Sarin, vice-president of Best Western India chain.

“That has changed drastically in the past few years. The people who are now visiting are those looking for an international hospitality experience and they have the money to spend on the room and other facilities.”

For Best Western, temple towns and Tier II cities — India’s fastest-growing cities outside Mumbai, New Delhi, Kolkata, and Bangalore — have become a key market and religious tourists its core clients, he adds.

It’s not hard to see why: religious pilgrimages remain an essential part of life for millions in India, from the lowest-paid manual worker to the high-flying corporate executives, cricketers and movie stars.

magazine I October 2011 I www.mipimasia.com

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Related confeRence duRing MiPiM aSia 17 November – 14:00 The rising stars of Asia

They offered special packages, discounts and daily room rates to tackle the drop in occupancy, which now stands at around 70%, down from 85% in 2008.

The hotel industry had been witnessing a slowdown since November 2008, with leisure and corporate travel taking a huge hit after the Mumbai terror attack.

However, resort destinations such as Kerala, Jaipur and Goa have bucked the trend. The oversupply in cites like Pune, Hyderabad and Bangalore has also affected the room rates and occupancies.

Accor, Wyndham and Whitbread, among others, are targeting the growing price-conscious Indian middle class customers by launching their budget brands in the country.

The need for branded budget hotels is on the rise and that’s forcing many of the global players to push the launch of their budget brands like Ibis, Formule 1, Choice and Premier Travel Inn into India.

“While price is a deciding factor, most of the budget brands are trying to offer competitive room tariffs at around US$20-$25 per night,” says Philippe Adam, executive vicepresident (strategy and development) at Accor.

However, with the spiralling real estate prices, budget hotels are looking at mixed used development projects that include a hotel and a retail mall.

It is estimated that India has a shortage of 150,000 hotel rooms. The industry is adding about 60,000 quality rooms, currently in different stages of planning and development that should be ready by 2012.

According to the World Travel and Tourism Council, India ranks 18th in business travel and will be among the top five by the end of this decade.

Some industry sources estimate that demand will exceed supply by at least 100% over the next two years.

Five-star hotels in metro cities allot the same room,

Making a splash on property: the Hyatt’s swimming pool...

Feast for the eyes: the café at the Hyatt Regency Delhi more than once a day to different guests, receiving almost 24-hour rates from both guests against six to eight hours usage.

India has a shortage of 100,000 guest rooms. With demand-supply disparity, room rates are most likely to rise 25% annually, and occupancy to rise by 80%, over the next two years.

According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC), demand for travel and tourism in India is expected to grow by 8.2% between 2010 and 2019.

This will place India at the third position in the world.

India’s travel and tourism sector is expected to be the second largest employer in the world.

Capital investment in India’s travel and tourism sector is expected to grow at 8.8% between 2010 and 2019.

The report forecasts India to get more capital investment in the travel and tourism sector and is projected to become the fifth fastest growing business travel destination from 2010 through 2020.

...and its Regency Lounge www.mipimasia.com I magazine I October 2011 I 65

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i feature housing

Singapore stability Mark Cooper looks at a nation making strategic changes to ensure that its key real estate markets avoid overheating and remain on track

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ingapore’s government brought in stringent measures to cool the housing market at the beginning of this year, but experts reckon the global economic situation may have a more significant effect.

The city-state has the world’s fourth most expensive properties, according to Savills, behind Hong Kong, London and New York. Since 2005, its property prices have more than doubled (up 123%) in value.

In response to double-digit price rises last year, Singapore’s government introduced a variety of measures in January this year (see box) including lending restrictions and the imposition of 16% stamp duty on sellers who flip a property within a year of purchase.

After the general election of May this year, which revealed strong discontent with high home prices, Singapore’s government has pledged to release more land for mass-market housing, developed on behalf of its Housing Development Board (HDB).

Prime Minister Lee Hsien Loong said in August that families with a combined monthly income of S$10,000 or less will be able to buy HDB apartments direct. The government had previously set a ceiling of S$8,000.

“We will bring more people into the HDB net,” Lee said at a rally held a week after the country’s Independence Day. HDB apartments, built by or on behalf of the state, house about 80% of Singaporeans.

Chris Fossick, managing director, South East Asia, at Jones Lang LaSalle (JLL), says: “The cooling measures cover any type of residential property but were brought in to reduce speculation in the mass market rather than the luxury market. However, there has been no evidence of values falling so far, the effect has been on sentiment.

We still have a shortage of housing overall.”

Residential prices rose again in the second quarter of this year, up 2% quarter-on-quarter, after quarterly price increases of 2.2% in Q1 2011, 2.7% in Q4 2010, 2.9% in Q3 2010 and 5.3% in Q2 2010, according to the Urban Redevelopment Authority.

Despite the gradual slowing of price rises, 79% of respondents to a survey carried out in the second quarter of the year by online search portal PropertyGuru were concerned about affordability of all types of housing.

Fossick says: “The general election showed that there is a significant number of Singaporeans who are disgruntled with the cost of housing, particularly with regard to resale

HDB housing. The government recognises that there is a supply shortage and supply will be stepped up considerably over the next few years. It sees rapidly-rising house prices as having a destabilising effect and has witnessed how a failure to intervene in a housing bubble hit the US and UK.” The government has pledged to increase HDB housing, but supply increases will take time. However, Fossick and other commentators believe the anti-speculation measures have already had an effect on speculators. Donald Han, vice-chairman of Cushman & Wakefield (C&W) Singapore, says: “The stamp duty rise has really taken the wind out of the speculative housing market. A 16% tax on the full value of a property sold within a year of purchase is a real hit!”

Han believes that further weakness in the world economy will have more of a short-term effect than government measures. “Prolonged stock market Singapore swings: the marina, cityscape and theatre weakness in Singapore tends to lead to a fall in house prices three to six months afterwards,” he says. “A weaker outlook for the economy tends to put off both speculators and homebuyers.”

However, Han believes it is possible that the continued downturn in Europe and the US — if it does not spread to Asia again — could actually cause prices to rise. “If Singapore’s economy looks good compared with Europe and the US, then it could become a safe haven for capital, as one of the most transparent and well-managed economies in Asia. “Investors are already depositing significant amounts of cash in Singapore banks and are suffering negative interest rates. Even low-yielding property looks “A significant number a better return and instability means investors of Singaporeans are may be prepared to hold on to assets for a long- disgruntled with the er period [thus avoiding penal stamp duty].” cost of housing” The increase in stamp duty for residential properties has had an interesting knock-on ef- Chris Fossick, fect in the commercial market. Han says inves- Jones Lang LaSalle tors who might have previously spent S$1-2m www.mipimasia.com I magazine I October 2011 I 67

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i feature

Related confeRence duRing MiPiM aSia 15 November – 14:45 Link-in: South East Asia – meet the key players (Networking Event)

Singapore stability on apartments are now looking at strata-titled office units, small industrial units and small shops in suburban areas.

“Investors have channelled money into other sectors; for example, industrial values rose 22.8% last year and 12.8% in the first half of this year, so it looks like the full year increase will match or surpass 2010.”

At the very top end of the luxury residential market, price movements are somewhat divorced from the HDB resale and mass-market private sectors. JLL’s Fossick says: “At the very top end of the market, for properties in Districts 9, 10 and 11, there is such a gap between them and HDB that they are not part of the chain. Around 20-40% of buyers in this part of the market are non-Singaporeans in any case.”

Cooling measures The holding period for the imposition of a Seller’s Stamp Duty (SSD) has been increased from three to four years.

For residential properties bought on or after January 14, 2011, SSD rates have been raised to 16% for those sold in the first year of purchase, 12% for those sold in the second year, 8% if sold in the third year, and 4% if sold in the fourth year.

The Loan-to-Value (LTV) limit has been lowered to 50% on housing loans granted by financial institutions regulated by the Monetary Authority of Singapore (MAS) for property purchasers who are not individuals The LTV limit on housing loans granted by financial institutions regulated by MAS has been lowered from 70% to 60% for individual property purchasers with one or more outstanding housing loans at the time of the new home purchase.

68 I

Han points out that price rises in the mass market have actually outstripped the luxury segment. Average mass market prices are 10% above the previous peak in 2008, while luxury housing is still 7% below its pre-global financial crisis peak.

Surprisingly, Singapore luxury home prices fell in the second quarter, according to Knight Frank’s Prime Global Cities Index, which reported a 2% quarter-on-quarter fall and a muted 3.4% year-on-year rise. In contrast to C&W’s Han, Knight Frank’s head of residential research Liam Bailey says the declining values in Singapore could indicate the start of a downturn in the Asian markets as investors become increasingly unnerved by the US and Eurozone debt crises.

However, it is also possible that the fall is related to Singapore’s strong currency, making it an expensive destination for overseas buyers. In contrast, Hong Kong has seen luxury residential prices rise 2.8% in the second quarter and 16.1% year-on-year. However, with its currency linked to the plunging dollar, Hong Kong looks cheap for Mainland Chinese and other Asian buyers.

Singapore house price performance diverges sharply, with the mass-market outperforming the luxury market, in contrast to what Knight Frank reports for the rest of the world.

This seems to suggest that what the government has to deal with is genuine need and not speculative demand.

Jones Lang LaSalle’s Chris Fossick: “No evidence of values falling so far”

Cushman & Wakefield’s Donald Han: Singapore “could be a safe haven”

magazine I October 2011 I www.mipimasia.com

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i 2011awards

Asia is a goldmine for international real estate investments, offering exciting opportunities for involvement with today’s most innovative development projects

W

ith this in mind, and for the sixth year running, the MIPIM Asia Awards honour the professionals and visionary who are leading the field in the real estate industry, and reward the most outstanding projects in the Asia Pacific region. The international jury, chaired by Dr. Seek Ngee Huat (Board Director of Government of Singapore Investment Corporation –GIC Real Estate) met in Hong Kong on September 9, to evaluate the 80 projects that entered this year’s awards. New projects spanning from across India, Singapore, Thailand, Japan, United Arab Emirates, China , Russia and South Korea, competed to gain the recognition they deserve. During this meeting, the jury

narrowed the entries down to a shortlist of 29 winners (illustrated in the following pages) within our 10 categories: Best business centres, Best green buildings, Best hotels & tourism resorts, Best mixed-use buildings, Best residential developments, Best urban regeneration projects, Best retail store design, Best futura projects, Best Chinese futura projects and last not but least, Best Central & Western Asia futura projects.

NEW IN 2011: The selection process MIPIM Asia participants will cast their vote from November 15 (9:00) to November 16 (noon)at the Awards Gallery, located in the MIPIM Asia Club. Their vote, combined with the jury’s, will determine the ranking of each winning project: Gold, Silver or Bronze.

THE AWARDS GALA DINNER To make the Awards even more prominent this year, the Awards Ceremony turns into a glitzy Awards Gala Dinner gathering 250 leading figures to celebrate the very best of the industry. The winners will presreceive ultimate recognition on Wednesday November 16 at the pres tigious Awards Gala Dinner held at the Hong Kong Convention & Exhibition Centre’s Room 101, Level 1.

BE THE FIRST TO DISCOVER THE BEST OF THE BEST Attend the exclusive Awards Gala Dinner, and experience an unun forgettable night of celebration. This is the perfect opportunity to network with top real estate professionals in a vibrant atmosphere over a delicious European meal, including music and entertainentertain ment. Ensure your presence and book a seat or a table.

For more information, please contact Lucie CHEN at lucie.chen@reedmidem.com.

Mipim Asia Awards Official International Sponsor:

In Partnership with:

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magazine I October 2011 I www.mipimasia.com

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MIPIM Asia Awards Jury

PRESIDENT OF THE JURY Dr. Seek Ngee Huat Board Director, Government of Singapore Investment Corporation (GIC)

Margaret Brooke CEO, Professional Property Services Group & Chair, Heritage Hong Kong

Andrew Chang Chairman Hong Kong Green Building Council

Jaques Ferrier Architect and urban planner Jacques Ferrier Architectures

Goodwin Gaw Chairman & Managing Principal Gaw Capital

William Ko Executive Director Hang Lung Group

Dominic Lam President The Hong Kong Institute of Architects

Cheng Soon Lau Managing Director Invesco Real Estate Hong Kong

John Lim Group CEO ARA Asset Management

Elizabeth LOH Head of Asia Generali Immobiliare

Nicholas J.Loup Chief Executive Grosvenor Asia Pacific

Anatoliy I. Melnik Chief Architect, Vladivostok City Administration

Mike Moir Director of Property Hong Kong Jockey Club

Jimmy Phua Managing Director & Head of Real Estate Investments Asia Canada Pension Plan Investment Board

Richard Price CEO, ING Real Estate Investment Management

Daan Van Aert Head of Strategic Real Estate Asia APG Asset Management Asia

Nicholas Wong Principal The Townsend Group

Richard Yue Chief Executive Officer & Chief Investment Officer ARCH Capital Management Co. Ltd.

Stanley Ching Managing Director & Head of Real Estate Group, Citic Capital

Charles LAM Managing Director - Real Estate, Baring Private Equity Asia

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i 2011awards Best business centres SHANGHAI WHEELOCK SQUARE Shanghai, China Kohn Pedersen Fox Associates The 61-storey Wheelock Square office tower occupies a very pivotal site in the city of Shanghai. Located opposite Jing An Park and between Nanjing Xi Lu and Yan’An Xi Lu, the project both anchors the western end of Nanjing Xi Lu and acts as a major landmark along the elevated highway connecting downtown Shanghai with the west.

The tower is conceived of as a simple, singular, sculptural form rising from a richly landscaped plaza. At the top of the tower, the glass curtain wall extends as a series of planes that rise as they move away from the sculpted corner, resulting in a dynamic form derived from a very simple plan.

At the bottom of the tower, the exterior glazing folds out from the vertical surfaces above to form both canopy and loggia for those approaching the lobby. At the ground plane, the tower sits on a square, stone base, raised several steps from the surrounding plaza. At the southwest corner of the site sits a 22,000-square-foot (2,000-square-meter) retail element.

SHANGHAI HUAWEI TECHNOLOGIES CORPORATE CAMPUS Shanghai, China Skidmore, Owings & Merrill LLP The Huawei Technologies Corporate Campus integrates two parallel wings of office and lab space bridged by a central building containing administrative offices, cafeteria, and conference rooms. A lush wetlands landscape provides flood control and a strong connection to nature. Each wing features a bamboo-filled galleria that spans its length, resulting in an open plan that creates a sense of community, facilitates easy movement throughout the campus, and allows for future flexibility. The building’s double wall glass skin, with integral solar louvers, showcases the native landscape and maximizes daylight penetration to reduce energy consumption.

INTERNATIONAL COMMERCE CENTRE Hong Kong Kohn Pedersen Fox Associates KPF’s 118-story International Commerce Centre (ICC ) tower sets new standards for both scale and sustainability in building design. As the tallest building in Hong Kong, the tower provides a new model of green urban design. The tower’s subtly tapered re-entrant corners and its gently sloped curves are designed to optimize its structural performance. A sunlit atrium gestures outwards and connects the tower to retail and rail station functions. Housing residential, office, retail, hotel and recreation spaces, as well as a new transportation hub, Kowloon Station, the 490-meter tower accents the new Union Square reclamation project.

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Best green buildings KHOO TECK PUAT HOSPITAL Singapore CPG Consultants

Khoo Teck Puat Hospital is a 550-bed replacement hospital serving the residents of the Northern region of Singapore. The hospital has integrated approaches to environmental sustainability, climate control, patient care, disease and disaster management. It aims to be a “hassle free” hospital - designed to enhance patient care and staff efficiency and is a model of energy efficient design.

The ‘hospital for the future’ incorporates design features that respond to the local tropical context. It has built-in flexibility and scalability to address changing needs and provides a welcoming and inclusive premise for the community.

The hospital in a garden, garden in a hospital concept influenced every aspect of the hospital planning. The hospital’s facilities overlook a central garden courtyard that serves as a way-finding device and brings light and greenery into the basement. The massing of the hospital opens out towards the adjacent Yishun Pond, drawing nature into the hospital.

UNITED WORLD COLLEGE OF SOUTH EAST ASIA [EAST CAMPUS] Singapore JTC Corporation UWCSEA (East Campus) is an international school of approximately 76,000sqm in floor area sitting on a site of 5.2ha, comprising of one infant block, two educational blocks, one sports amenities and a student hostel. Recently completed in April 2011, the campus with a capacity of 2,500 students aged 4 to 18 years old, houses an extensive area of approximately 0.4hectares of solar collectors in harnessing the solar energy, which is one of the largest in the region. Similarly, part of the elevated soccer field is also designed as a 0.5hectares rainwater catchment area for the rainwater irrigation system within the school premise. True to the design conviction of a “green & sustainable” campus, UWCSEA (East Campus) achieve a Green Plot Ratio of approximately 2.0 by means of extensive green planting such as planters, “green” walls and roof gardens that covers a considerable area of close to 10hectares. Recognizing the efforts in the design of a sustainable educational building, UWCSEA (East Campus) project is awarded the Global winner for the prestigious International Property Award 2011 under the Public Service Development category. Similarly, awards such as BCA Green Mark Platinum, PUB ABC Water Certification, BCI Asia Green Award and SIA-Hunter Douglas Award also reaffirm the success of UWCSEA (East Campus) as an educational building that advocates environmental awareness through the integration of education with the sustainable design of the campus.

SUZLON ONE EARTH Pune, India Synefra E&C Ltd One Earth, Suzlon Group global HQ, was conceived with a need to bring all business verticals and corporate services under one roof, which although interlinked would operate independently as per customized functions.

Tulsi Tanti, CMD, Suzlon Group had a vision to create a work place where technology and traditions co-exist and provide team Suzlon a continual improvement opportunity through learning and work. One Earth represents Suzlon’s philosophy of Powering a greener tomorrow and highlighting Earth’s unique existence as an eco system.

J R Tanti, MD Synefra, took upon the challenge of converting this dream to reality. As lead project managers, he created an exceptional place busting the glass box office concept and breaking myths on tall corporate buildings as being iconic structures on city’s skylines. All five elements of nature – earth, water, air, fire and metal have been respected and responsibly incorporated in this unique project.

J R Tanti, MD Synefra, took upon the challenge of converting this dream to reality. As lead project managers, he created an exceptional place busting the glass box office concept and breaking myths on tall corporate buildings as being iconic structures on city’s skylines. All five elements of nature – earth, water, air, fire and metal have been respected and responsibly incorporated in this unique project.

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i 2011awards Best Hotels and resorts

HOTEL INDIGO SHANGHAI ON THE BUND MAI KHAO DREAM HOTEL & RESORT SPA Phuket, Thailand DWP The words ‘Mai Khao’, in Thai language, mean that ‘white wood’, which was the defining accent for the design concept of Mai Khao Dream Hotel in Phuket, nestled on the Northwest coast of the Phuket Island. The client’s vision for the resort, interpreted by world-class architecture and interior design firm dwp, was for the contemporary Thai style luxury villas, to would emphasize prestige and elegance.

The design brief included 22 exclusive opulent villas, with pools and jacuzzis, an all-day dining restaurant, clubhouse with fitness centre and a spa. Ensuring that the resort attained and authentic Thai touch, the brief was translated to an exquisite ethereal feel, where white is a dominant feature throughout the resort. Inspiration was primarily drawn from Thai fabrics, textures, artworks and historical drawings, as well as ocean-washed beach houses, to tie in with its seaside location. White-washed woods and natural teak met with textured cement, hints of turquoise in furniture fabrics and gold accents. When combined, all these aspects evoked luxurious Thai beach villas, with a touch of upscale New England ocean-front extravagance to their interiors. The client’s love for Thai arts and crafts led dwp to take traditional paintings from Thai myths and legends, surrounding the theme of water, and reintroduce them with a modern twist. Traditional Thai styled fixtures, fittings, artpieces and paintings provided authenticity through and through. This 2- and 3-bedroom villa resort exudes unstinting grandeur in a tranquil and the natural environment, the blending perfectly with its golden sand location, on Maikhao Beach.

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Shanghai, China Shanghai Huangpu River Banks Asset Management Co. Ltd Hotel Indigo Shanghai on the Bund reveals fresh and vibrant, locally inspired design.

Part of global hotel company IHG, Hotel Indigo Shanghai on the Bund is the first Hotel Indigo Brand in Asia Pacific. Located right on the Huangpu River front, the hotel features spectacular views of both the historic Bund and dramatic Pudong skylines. These views, along with scenes from the local South Bund neighbourhood, have enabled Hotel Indigo management and world-renowned hospitality design firm Hirsch Bedner Associates (HBA) to create a vibrant, contemporary and inspiring space in an upscale boutique hotel context.

Bruce Ryde, General Manager, Hotel Indigo Shanghai on the Bund, said: “We have created an inviting and intimate hotel that is highly individual and provides a fresh representation of the local neighbourhood and energy of the city, which cannot fail to make a lasting impression on all our guests.”.

XINTIANDI HOTELS Shanghai, China Kohn Pedersen Fox Associates The Langham Xintiandi and Andaz Shanghai Hotels set a new standard for modern, high-rise buildings in historic urban districts in their innovative design, diverse program mix, and connection to surrounding context. This innovative, luxury development responds sensitively to the district’s low-rise architectural fabric and provides visitors a variety of retail and entertainment options in addition to the full gamut of amenities expected by international travelers.

The two five-star hotels are located between the busy Huai Hai Zhong Road retail corridor and the Xintiandi district, which draws international visitors and locals to its high-end boutiques, restaurants, outdoor cafes, lively nightclubs, and diverse cultural venues, many of which are housed in renovated shikumen—gray-brick townhouses with carved-stone gates from the 1920s. Like the award-winning and highly influential Xintiandi redevelopment district, which was completed in 2002, the hotels’ dynamic formal expression and high-end amenities will play a pivotal role in advancing Shanghai’s new role as a global hub of commerce and culture.

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Best mixed-use buildings

SHANGHAI INTERNATIONAL CRUISE TERMINAL Shanghai, China Sparch Shanghai International Cruise Terminal sits in the North Bund, offering spectacular views of Shanghai’s famous historical Bund to the south and the skyscrapers of Pudong on the opposite side of the Huangpu River.

Sparch created one ‘Chorus Line’ of six cruise ship headquarter buildings and wrapped them in a fluid steel and glass solar skin that ties the scheme together as a backdrop to the arriving cruise ships that dock alongside. The scheme is a strong visual presence befitting a 21st-century continuation of the historical Bund.

‘Shanghai Chandelier’, a 40-meter high landmark structure, forms the centerpiece of the site as it creates a dramatic City Stage addressing the public park and the waterfront, where thousands of people can gather to participate in festivals.

This development also represents a first in Shanghai for sustainability, incorporating ‘River Water Cooling Technology’ that utilises water from the Huangpu River as a refrigerant to cool and greatly reduce the buildings’ energy consumption during summer.

MARINA BAY FINANCIAL CENTRE Singapore Raffles Quay Asset Management Pte Ltd Marina Bay Financial Centre (MBFC) is one of Singapore’s largest integrated developments and a world class mixed-use project. Designed by world-renowned architectural firm Kohn Pedersen Fox, MBFC symbolises Singapore’s transformation into a global financial centre.

MBFC Phase 1 comprises two stylish office towers with 153,243 sqm (NFA) of ultra-modern international standard Grade A office space with large column-free floor plates, one residential tower of 428 luxury apartments with spectacular sea and city views, and retail space of approximately 8,780 sqm (NFA).

Positioned as ‘Asia’s Best Business Address’, MBFC sets new standards in architectural design, transport connectivity and provision of facilities that enable a 24-hour ‘work, live and play’ lifestyle. With its waterfront location at the southern tip of Singapore, MBFC boasts panoramic views of Singapore’s Marina Bay and its vibrant cityscape.

MBFC is jointly developed by three of Asia’s most respected developers – Cheung Kong (Holdings), Hongkong Land and Keppel Land.

NOVENA LIFESTYLE & MEDICAL HUB Singapore Far East Organization The Novena Lifestyle and Medical Hub is a demonstration of the developer’s innovative spirit and long-term business foresight. It created two first-of-its-kind real estate products in Singapore with the integration of medical centres with retail podium and hotel. In its pursue for excellence, the developer set a milestone in Singapore’s healthcare services industry, inking the first joint public-private sector partnership with Tan Tock Seng Hospital, Singapore’s second largest public hospital. This initiative was lauded by the Singapore Government for optimatisation of resource and capacity, mutually benefitting both parties. In the process, the development of Novena Lifestyle and Medical Hub has ignited the growth of a host of new medical facilities in the precinct, solidifying Novena’s stronghold as a thriving medical hub. www.mipimasia.com I magazine I October 2011 I P75

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i 2011awards Best residential developments

HELIOS RESIDENCES BELLE VUE RESIDENCES Singapore Wing Tai Land Pte Ltd (on behalf of Winnervest Investment Pte Ltd) Belle Vue Residences located in the high ground of Oxley area, a neighbourhood long known for its lush and serene settings. It is conceived as an organic urban resort with an inward looking environmental lushly landscape, where the dwelling units are designed as a typology of tree branches infiltrated into the natural landscape.

Living spaces are being organized in the same manner by which trees grow and multiply to for forests. Just like the branches of a tree reaching out to the sunlight, each unit freely branches outward in order to bring natural light and wind inside, balancing the best possible positions to each other. The result is an innovative dwelling environment consisting of 176 units with free and diverse plans, embracing a large courtyard.

Belle Vue Residences seeks not only to redefine the comforts of organic urban – resort style living in the city, but also to do so in an environmentally responsible manner through the skillful employment of innovative design strategies and technological innovations into an artfully crafted experience.

Singapore Wing Tai Land Pte Ltd (on behalf of Winnervest Investment Pte Ltd) Helios Residences is a 140-unit, 20-storey, two-tower luxury apartment housing development. Located in the prime Cairnhill district, just a stone’s throw to the Orchard MRT (Mass Rapid Transit) and Orchard Road, it is conveniently accessible via superb public transport systems and road network connectivity to major roads and expressways.

Designed as a distinctive urban architectural marker street level, it also responds to its neighbouring heritage shophouses and its own preserved trees through its now-famous Treetop Recreation Deck which houses the development’s recreational amenities floating 4 storeys into the sky. Below it is the tranquil Garden Terrace is also equipped with communal facilities for residents to enjoy.

The towers’ iconic form is crystallized in its cubic geometry and its signature ‘green veil’. With its greenery-inspired architecture, it is a development redefines the luxuries of Urban Resort-style living for those fortunate enough to call it home.

SAIGON SOUTH MASTER PLAN Ho Chi Minh City, Vietnam Skidmore, Owings & Merrill LLP One of the largest development projects undertaken in Southeastern Asia in recent times, the Saigon South Master Plan has created a vital, livable and inherently sustainable new community situated at Ho Chi Minh City’s southern border. From its earliest phases, covering both The Crescent and the Canal Street Districts, the project has realized an ambitious vision for the creation of the most unique and desirable residential and mixed-use developments in Vietnam. Situated at the edge of a gracefully curved lagoon, The Crescent has become a special destination for the city, drawing people from across the region to enjoy working, shopping, entertainment, dining and living. The adjacent Canal District is defined by unmatched diversity that is crafted out of unique building design, planned density, landscaped parks, tree-shaded streetscapes and waterways, and sky-views. Together, The Crescent and Canal Districts have clearly defined a unique and memorable place that firmly belongs to the twenty-first century.

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Best urban regeneration projects

THE BRIDGE 8 Shanghai, China Shanghai Bridge 8 Property Co. Ltd

SHANGHAI MUSEUM OF GLASS Shanghai, China logon urban architecture design The new Shanghai Museum of Glass is the first glass museum in China, located on a former glass manufacturing site in Baoshan District, Shanghai. The museum is adapted from two existing buildings, a former glass bottle factory and a warehouse. As an urban regeneration project, one of the museum’s main concepts was to preserve existing structures while rediscover the original character of each building.

Classified as a “type two” museum, its’ multi-functional design distinguishes it from normal museums. To ensure visits return-on-time is satisfied, the museum, in addition to its glass-themed exhibition does this through its’ hot glass shows, DIY workshops, lectures, libraries, and other interactive activities; all designed to attract and educate diverse target groups whilst creating value and incentive to visit. Uniquely treated U shaped glass panels form the museum’s facade where (selected) multi-language glass-related words glow via its LED backlight resulting in a truly one-of-a-kind visual effect.

With the completion of Phases II and III in 2010, The Bridge 8 now comprises an area of 50,000 square meters. Lifestyle, its developer, has achieved an important urban revitalization and become a pioneer and leader in transforming rundown factories from the last century into high-quality, eco-friendly, interactive work environments occupied by Shanghai’s diverse and creative international community.

Lifestyle is the first to establish an innovative business model; guides the government in formulating new policies for such development; plans a sustainably developing community; introduces new, top-end commercial brands to the city; and most importantly, creates tax for the government and employment opportunities for the society.

The origin of The Bridge 8 name itself stems from its innovative design, with corridors and overhanging bridges that connect the LOFT style buildings. The name also contains the meaning of the “bridge” that connects the best of Chinese and international creative design practices.

THE SHILIUPU (PIER 16 REGENERATION PROJECT) Shanghai, China Shanghai Huangpu River Banks Asset Management Co. Ltd Shiliupu was officially opened as a commercial port in 1684. The port was one of the origins of the city, and was once the maritime portal of Shanghai. During that time, merchants came and went, all businesses were thriving. In 1982, the government decided to build the Shiliupu Passenger Station, since then thousands of people pass in and out from there everyday. At the present, integrated development of the Huangpu River is a century project guided by the Government Shanghai. The Shiliupu is one of four places as the first group to be regenerated along the project. The Shiliupu (Pier 16 Regeneration Project) together with the Bund on the north and the Lujiazui on the opposite has become a new scenery spot along the Huangpu River.

This new fashionable landmark featured marina, tourist site and entertainment is a proven pioneer project in the utilization of underground river-side space.

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i 2011awards Best retail store design CANDYLICIOUS Singapore Gill Capital (Singapore) Pte, Ltd Candylicious , the world’s largest candy store is one of a kind concept founded upon the principles ofelevating a simple candy shop to a state of the art and world class destination. Developed on the foundation of representing fantasy, joy and irreplaceable childhood memories, it combines candy and the world of imagination into a hip and fashion forward candy store.

The store is designed for maximum interaction with the sense of sight, sound, smell and touch. Candylicious carries over 5,000 kinds of candy and chocolate and home to the largest ‘Pick and Mix’ wall in Asia and the Middle East.

MIELE HOUSE Shanghai, China KokaiStudios At the beginning of 2010 Miele found an empty three-storey 1930’s old villa located in the center of Shanghai and decided to launch its new global Miele House concept.

Inspired by Kokaistudios’ concept of Total Design the client tasked Kokaistudios with the dual roles of restoring the villa to its former glory and transforming it into a modern luxurious environment that embodies the Miele brand and its core values. The target was not so much to create a “showroom” but to create a living space, where the focus is to allow the clients to live the Miele experience.

Kokaistudios choose to build that experience continuously through the architecture, the landscaping and the interior design in an effort to create feelings of refinement and culture, tradition and modernity, and quality with which the Miele brand is synonymous. The result is an elegant and functional space that is a critical pillar in Miele commercial strategy in China.

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Best futura projects

CLEANTECH PARK Singapore JTC Corporation CleanTech Park will be Singapore’s first eco-business park, housing a nucleus of organizations and companies, focusing on R&D in environmental and clean energy solutions, as well as companies who have embraced environmental sustainability as a means to differentiate their businesses and also as part of their corporate social responsibility. The intention is to bring the tropical rainforest to the businesses, giving them the opportunity to work closely with nature, which provides benefits like fresh air, lower ambient temperatures, shading, and tranquil sights. Situated at the centre of CleanTech Park, the Green Core diverges itself into four ‘green corridors’ that intersperse with building parcels, allowing building to have a dual frontage concept, an urban and a nature front. CleanTech Park also aspires to serve as a large-scale integrated “living laboratory” for testbedding and demonstration of clean technology solutions and products before they are commercialised for the market.

INCHEON INTERNATIONAL AIRPORT PASSENGER TERMINAL 2 Incheon, South Korea Heerim Architects & Planners Incheon Int’l Airport that pioneered a new airport paradigm now attempts to step forward into a new area, incarnated in alluring gestures of the ascending Bong Hwang, an ancient sacred bird signifying harmony of Yin and Yang and reign of peace, symbolizes the new vision of the Incheon Int’l Airport, opening a new chapter of the new era.

Our design motive is to reconfirm the position of the best hub airport in East Asia with symbolism of world peace and unity, through contemporary reinterpretation of the Korean phoenix.

Also, the Terminal 2 will achieve the nature-oriented Green Airport one step closer, sharing the same vision with Korea’s Green Growth Realization. These eco-friendly designs are possible to reduce 65% of energy consumption compare to Terminal 1.

CX 2-1 Singapore Aedas Limited CX 2-1 Sandcrawler is both a regional headquarters for a major entertainment company and a revenue-generating office building.

Combining the intended use with a strong civic ambition within the one-north master plan in Singapore, the design for this project not only enjoys this duality but also seeks a solution that celebrates the diversity.

The master planning guidelines for this project are highly defined, dictating height envelope and setbacks. The design approaches these parameters deliberately to fulfill the viability requirements of the revenue earning office space but also with strong civic quality as a statement for the local headquarters. A “horseshoe” plan was developed to achieve desired day lighting and meet master plan requirements.

An important feature of the project is the 100-seat movie theatre. It was determined that locating the facility in the middle of the vessel was most convenient. The facility needed a double high zone and was placed on the upper levels of the lower end-user zone and immediately below the leased tenant spaces.

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i 2011awards

Best Chinese Futura Projects

OLYMPIA 66 Dalian, China Aedas Limited Located at one of the most prominent commercial avenues in Dalian the 221,900 sqm development aims to create an iconic landmark that would define a city destination. The vision was to create a contemporary statement with an oriental overtone, inspired by the twin carp, a typical symbol in Chinese New Year paintings, synonymous with wealth and abundance.

The form enhances urban connectivity and integration through multiple entrances. Olympia 66 is totally permeable on the ground floor; main entrances are prominently defined and open into generous event spaces, allowing a pause before reaching the vortex of circulation. The sequenced nodes and spaces culminate with leisure activities at the upper floors leading to landscaped terraces.

The offset curving arcs of internal circulation resemble the body of the dancing carp, expressed as a series of simple shells with the tail flowing over the curving central spine. The shells on the roof are layered to create clear story glazing, allowing direct light and reflected light into the two atrium spaces. The project achieved LEED gold rating.

INTERCONTINENTAL SHIMAO WONDERLAND Shanghai, China Atkins This project is the winning entry of an international design competition for a 400 bed, 5 star resort hotel located in within a large water filled quarry in the Songjiang district near Shanghai.

The concept adopts the image of a green hill cascading down the rock face as a series of terraced landscaped hanging gardens. The central vertical circulation atrium connecting the quarry base with the ground level is in the form of a transparent glass ‘waterfall’,. The design centres around the water theme both visually and in its varied functions with water sports and spa complex with a swimming pool. An underwater level will house a restaurant and guest rooms facing a themed aquarium. On the ground level is conference facility for 1000 people and restaurants with extensively landscaped surrounding areas including waterfalls. Mainly passive sustainable elements range from extensive green roof to geothermal energy utilisation and rainwater recycling

HONG CHENG PLAZA Guangzhou, China Benoy Set in Guangzhou’s central axis at the heart of the city’s new CBD, this will be China’s first ‘urban park’ retail mall. With verdant, undulating landscaping, the 110,000m² retail scheme will introduce regional and international visitors to a truly unique shopping, entertainment, dining and lifestyle concept.

The vision is to create a destination where business and community mix together in an environment rich in character and distinct to Guangzhou. Hong Cheng Plaza will restore the balance of the new CBD by delivering both aesthetic harmony with the lush green of the park, and commercial value. Benoy’s design will also introduce a considered and complete new public transport interchange, and highly sustainable technology.

Inspired by the major central parks around the world and the Chinese Carp Fish – Hong Cheng Plaza will create a tranquil urban oasis in the heart of the thriving metropolis in the south of China.

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Best Central & Western Asia futura projects

NORTHERN CAUCASUS RESORTS BAKU WHITE CITY Baku, Azerbaijan ADEC Azerbaijan Development Company Carried out in a framework of the Decree from September 28th, 2006 by His Excellency ILHAM ALIYEV, The President of the Azerbaijan Republic on improvement of the ecological conditions in Azerbaijan, approved by the Baku Executive Power in June 11 2007, Baku White City project is a unique opportunity for the restoration and rationalised use of the Black City area has arisen on an industrial site, which is located directly at the centre of Baku Bay and the to the east of the city center. A site with an area of 221ha and surrounded by a dynamically developing city infrastructure has a chance to be reborn as a new modern centre of the capital, oriented toward both local and foreign investment, offering a wide range of residential and commercial buildings of various sizes. The Baku White City master plan envisages the creation of 10 universal urban districts with each of them to offer its residents the best living, working, recreation and entertainment conditions.

All major consultancy services have been provided by world-renowned global multidisciplinary engineering design firm Atkins (UK) , Fosters and Partners established by legendary Norman Foster (UK) , as well as F+A Architects design company (USA).

North Caucasus, Russia OJSC Northern Caucasus Resorts The state-owned company «Northern Caucasus Resorts» is in charge of running $15 billion worth project. President of Russia Dmitry Medvedev in his opening speech at the World Economic Forum in Davos, Switzerland he stated that the government is fully prepared to share potential risks in the country’s modernization through joint investments.

This large-scale tourist cluster is being developed in a place perfectly suitable for the resort infrastructure. The area is constantly gaining in popularity and has high potential of competing one day with its biggest European rivals.

As a part of this development plan, Mr. Medvedev has given the goahead to the construction of five world-class alpine resorts in the Northern Caucasus.

Some of the newly built complexes will be ready to welcome their first guests in 2014 for the Winter Olympics in Sochi, when interest in winter sports and the Caucasus itself will be at its peak.

ABU DHABI INTERNATIONAL AIRPORT MIDFIELD COMPLEX Abu Dhabi, United Arab Emirates Kohn Pedersen Fox Associates Abu Dhabi International Airport Midfield Complex is integral to the Abu Dhabi 2030 plan - transforming the desert into the ‘Garden of the Gulf’ through a design that responds to its natural environment, while meeting the needs of the rapidly expanding capital. Over 50million people are expected to use the Abu Dhabi International Airport as their origin, destination or transit point for international and domestic journeys and the Midfield Terminal Complex is the centrepiece of this providing a full terminal building, passenger and cargo facilities, duty free shops and restaurants.

Conceived as a gateway to the city, the terminal building will be the largest in the Emirate of Abu Dhabi and one of the region’s landmark buildings. Its form is identified on the skyline - raised up from the road level giving the appearance of sitting on its own plateau - with a profile silhouetted against the sky.

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"UILD " UILD

tips &tools dear mipim asia participant,

the information is divided into nine sections:

In order to make your forthcoming visit to MIPIM Asia 2011 as enjoyable and effective as possible, we wanted to inform you of some additional services that we make available to you before and during MIPIM Asia.

Your experience at MIPIM Asia is important to us and we wish to ensure that everything runs smoothly and efficiently, to help you accomplish your objectives.

1 2 3 4 5 6 7 8 9

1 HONG KONG INFORMATION

Official Name: HONg KONg Special admiNiStrative regiON (HKSar) location: Situated at the south-eastern tip of China, Hong Kong is ideally positioned at the centre of rapidly developing East Asia. With a total area of 1,103 sq km, it includes Hong Kong Island, the Kowloon peninsula just opposite, and the New Territories, the most rural section of Hong Kong, which also includes 262 outlying islands. international dialling code: 852 population: 7.1 million time zone: GMT + 8 electricity: 220 volts, 50 cycle alternating current (AC); socket outlets in Hong Kong take a 3-pin plug. measurement system: Metric currency: Hong Kong dollar (HK$). Currency notes in circulation are $10, $20, $50, $100, $500 & $1,000. Coins in circulation are $10, $5, $2, $1, 50 cents, 20 cents and 10 cents. average November temp: Between 18°C (64°F) and 28°C (82°F) average November humidity: Around 72% language: English and Chinese are the official languages. Street signs, menus, tourist and government publications are usually bilingual. gettiNg tHere BY air Hong Kong international airport (HKia) Tel.: +852 2181 0000 Website: www.hongkongairport.com The airport is situated 34km (21 miles) northwest of Hong Kong Island. HKIA is the world’s fifth busiest international passenger airport. It has

HONG KONG INFORMATION EXHIBITION ZONES CONFERENCES & EVENTS MIPIM ASIA MATCHMAKING COMMUNITY SERVICE DELIVERIES AT MIPIM ASIA DON’T FORGET TO PACK...

SPECIALISED MIPIM ASIA SERVICES TRANSPORT DURING THE MARKET/TRAVEL SERVICES USEFUL NUMBERS

direct flights throughout Asia, Australia, mainland China, New Zealand, the Middle East, Europe, South Africa and North America. tOUriSt iNfOrmatiON the Hong Kong tourism Board (HKtB) E-mail: info@discoverhongkong.com Website: www.hkta.org viSaS To find out if you need a visa to travel to Hong Kong, please visit: http://www.immd.gov.hk/html/ hkvisas_4.htm 2 EXHIBITION ZONES

veNUe Hall 1BC, Level 1, Hong Kong Convention & Exhibition Centre 1 Expo Drive, Wanchai, Hong Kong, China

marKet OpeNiNg HOUrS Tuesday, November 15 9.00 — 18.00 Wednesday, November 16 9.00 — 18.00 Thursday, November 17 9.00 — 17.00 Exhibitors can access the exhibition area 30 minutes before opening time.

3 CONFERENCES & EVENTS

mipim aSia OpeNiNg ceremONY Tuesday, November 15 — From 9.30 In Expo Drive Entrance, Hong Kong Convention & Exhibition Centre mipim aSia OpeNiNg cOcKtail Tuesday, November 15 — From 18.00 Rooms 100 Series, Level 1, Hong Kong Convention & Exhibition Centre

regiStratiON aNd Badge picK Up To avoid queues, we highly recommend you to take advantage of our pre-registration service on Monday, November 14 pre-opening hours Monday, November 14 14.00 — 19.00 Opening hours Tuesday, November 15 8.00 — 18.30 Wednesday, November 16 8.00 — 18.00 Thursday, November 17 8.30 — 17.00

mipim aSia aWardS gala diNNer Wednesday, November 16 — From 19.00 Room 101, Level 1, Hong Kong Convention & Exhibition Centre. Prior booking required.

E-mail: lucie.chen@reedmidem.com dailY lUNcH BUffet A daily lunch buffet will be held in the MIPIM Asia Club in the Exhibition Hall, it’s free and open to all participants.

Official mipim aSia cONfereNceS The MIPIM Asia conferences are open to all participants (free of charge) on presentation of their MIPIM Asia badge and according to venue capacity. Pearl, Ruby and Emerald are conference rooms in the Exhibition Hall.

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itips&tools tOpic-BaSed lUNcH taBleS Topic-based lunch tables will be held every lunch time in the exhibition hall with eight tables of 10 attendees each, gathered around a defined topic guided by a moderator.

Prior booking required.

E-mail: alixane.dauger@reedmidem.com pOWer meetiNgS A Power Meeting will be held in the Exhibition Hall on Wednesday, November 16 at 16.15. This is the ultimate in-person, face-to-face networking experience to help accelerate business in different real estate sectors.

4 . MIPIM ASIA MATCHMAKING

COMMUNITY SERVICE

You’ll find MIPIM Asia Online Community a valuable tool when deciding who to meet and how to target key people at the show. Visit and use the Online Community as soon as you receive your personal login and password via e-mail. These will have been sent to you via e-mail post registration; if you have not received them please contact the Customer Service Help Desk.

Tel.: + 33 1 41 90 44 41 / 42 E-mail: customerhelpdesk@reedmidem.com Easy to use and available 24-hours-a-day, the database lists all attendees by country, activity and domain. It allows you to network with other delegates and manage your schedule before you even arrive in Hong Kong, helping you to: • Meet the people that really matter to your business • Create your personal profile (including photos) to present yourself to other delegates • Promote your company and products through various profile pages • Bookmark your favourite companies, people and product profiles • Manage your MIPIM Asia agenda • Use a dedicated internal message box 5 DELIVERIES AT MIPIM ASIA

(Nothing can be delivered before November 13) mailiNg addreSS The following address should be used: Company name, Stand number MIPIM Asia 2011 Hall 1BC Hong Kong Convention & Exhibition Centre 1 Expo Drive, Wanchai Hong Kong China.

84 I

6 DON’T FORGET TO PACK...

YOUr e-ticKet If you have registered sufficiently in advance, you may have received an e-ticket. This ticket facilitates and speeds up your badge retrieval.

Please remember to bring it to Hong Kong with you.

7 SPECIALISED MIPIM ASIA SERVICES

cUStOmer Service Help deSK It offers one-to-one assistance. Do not hesitate to ask the staff your specific questions.

Please contact: Tel.: +33 (0)1 41 90 44 42 / 41 E-mail: customerhelpdesk@reedmidem.com tHe mipim aSia clUB Exhibitors, investors, journalists and all other participants will have the opportunity to meet each other in one place: The MIPIM Asia Club. This unique Club will allow you to organise meetings with everyone who has access to MIPIM Asia.

A free bar is at your disposal, as well as the daily lunch buffet, for the duration of the show.

Hostesses will be there to help you to organise your meetings with other MIPIM Asia participants or journalists.

A confidential space is dedicated to journalists (Editorial Room), to let them write in a quiet environment with computers and internet connections at their disposal. left lUggage During the market, a cloakroom will be available.

OrgaNiSiNg aN eveNt If you wish to organise an event during MIPIM Asia (cocktail party, press conference or private conference...), Hong Kong Convention & Exhibition Centre offers a number of venues from equipped auditoriums to cocktail rooms.

Our Events Department is available to offer advice and assistance. Its staff can also advise you on and co-ordinate your dinners, parties or receptions outside HKCEC. Your contact: Amy Li / Eric So Hong Kong Convention & Exhibition Centre 1 Expo Drive Wanchai, Hong Kong Tel.: +852 2582 7910 / 2582 7873

for reasons of public health and hygiene, no catering service provided from outside HKCEC is permitted.

This rule applies to all foodstuffs except those in packets (nuts, biscuits, etc).

If you wish to ship wine to the exhibition hall, please note that a corkage fee is applied for all self supplied wines by HKCEC. Corkage of red/ white wines will be charged at HK$180 net per bottle (750ml)/HK$360 net per bottle (litre size) and champagne/spirits will be charged at HK$300 nett per bottle (750ml)/HK$600 nett per bottle (litre size). Six wine/champagne glasses will be provided for each bottle of wine for which corkage is charged.

Waiter service will be charged at HK$480 net per waiter for a maximum of four hours. Additional hours for waiter service will be charged at HK$120 net per waiter per hour.

Please contact HKCEC Events Department for further information.

HOSteSSeS/iNterpreterS /tempOrarY Staff Williams (Hong Kong) Limited is happy to assist with your temporary personnel requirements.

Before mipim asia: Williams (Hong Kong) Limited Contact Person: Mandy Hung/Angela Kwok Tel.: +852 2110 0415 Fax: +852 2525 6726 E-mail: mandy.hung@williams-asia.com during mipim asia: Contactable through any MIPIM Asia information point. aUdiO, Office & cOmpUter eQUipmeNt MIPIM Asia’s official suppliers offer a full service and technical assistance for all office equipment and internet connections. Participants benefit from special prices.

Before mipim asia: AV Promotions Ltd. Contact Person: Edmond Ho Tel.: +852 2527 0918 Fax: +852 2527 7106 E-mail: edmondho@avpromotions.com.hk

For smaller events on your stand, please note that

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iNterNet cONNectiON Before mipim asia: UNIPLAN Contact Person: Ceci Chan Tel.: +852 2294 3634 Fax: +852 2757 9207 E-mail: mipimasia2010@uniplan.com.hk WireleSS cONNectiON Wireless connection is available in the MIPIM Asia Club, Hall 1BC.

tramS Trams are the most economical mode of transportation in Hong Kong. Regardless of distance, only HK$2 will be charged for each adult passenger. It operates six main routes running between Kennedy Town and Shau Kei Wan everyday from 6.00 to 24.00. It maintains a tramcar departure in every 1.5 minutes during peak hours, on average.

Tel.: +852 2548 7102

pUBlic BUS Service frOm/tO tHe airpOrt Hong Kong International Airport is served by a highly efficient and comprehensive transportation network. Buses can be reached from different parts of Hong Kong For further information: http://www.hongkongairport.com/eng/transport/ to-fromairport/bus. html car parKS Numerous covered public car parks are available in Wanchai within walking distance of the HKCEC phase 1 and 2 building.

MARKET/TRAVEL SERVICES

There is also the century-old Peak Tram, a funicular railway which runs up to the Peak from 7.00 to 24.00 at about 15-minutes intervals.

Tel.: +852 2522 0922

Hong Kong’s efficient and low-cost public transport system includes three railways, buses, trams, taxis and ferries. There are three road-only tunnels crossing the harbour.

ferrieS The Star Ferry Co operates a shuttle service between Hong Kong Island and Kowloon Tel.: +852 2367 7065

You may find the following numbers useful during your stay in Hong Kong.

English services are available.

railWaYS In December 2007, the operations of Mass Transit Railway (MTR) and Kowloon-Canton Railway Corporation have been merged to form one of the most efficient and far-reaching railway networks in Asia.

The newly expanded system extends all the way from the heart of Central and Causeway Bay to the New Territories and Lantau Island. It covers 80 stations.

The MTR now also operates a 35.2km Airport Express and 36.2km Light Rail networks which can take you to Hong Kong Airport and 68 stops in the North West New Territories. It also provides speedy through-train services to major cities across Mainland China.

Ferries between Central and Tsim Sha Tsui run every few minutes from 6.30 to 23.30

Telephone Directory Enquiries

8 TRANSPORT DURING THE

maSS traNSit railWaY (mtr) Tel.: +852 2881 8888 Website: http://www.mtr.com.hk/ Moreover, at Hong Kong and Kowloon stations, regular daily free shuttle buses will pick you up and drop you off a major hotels and key transport interchanges. For further details, please visit: www.mtr.com.hk/eng/airport_ express/complom_free_bus.html

Other Star Ferry boats connect Central with Hung Hom (7.00 to 19.20) and Wan Chai to Tsim Sha Tsui (7.30 to 22.50) The Wan Chai Ferry Pier is within a few minutes walk of the Hong Kong Convention & Exhibition Centre taXiS frOm/tO tHe airpOrt If you wish to travel to or from Hong Kong International Airport by taxi to Hong Kong Island, please note that the average fare is HK$340, (inclusive of bridge/tunnel toll where applicable) and takes around 60 minutes.

9 USEFUL NUMBERS

Time Weather

1081 18501 187 8200

Collect Calls

10010

Overseas IDD and Cardphone Enquires

10013

Emergency Service (Police, Fire, Ambulance) 999 Consumer Council

2929 2222

Hong Kong Tourism Board Visitor Hotline 2508 1234 Hong Kong International Airport (24 hours)

2181 0000

Hong Kong Island / Kowloon: +852 2760-0212 / (852) 2332 2477

Hong Kong Immigration Department (24 hours)

2824 6111

New Territories Taxi: +852 2657-2267 / (852) 2457 2266 Lantau Taxi: +852 2984 1328

Department of Health

2961 8989

• If you’re dialling from outside of Hong Kong please add the area code +852

mipimasia preVieW The official MIPIM ASIA magazine October 2011. director of publications Paul Zilk editOrial departmeNt editor in chief David Taylor technical editor in chief Herve Traisnel deputy technical editor in chief Frederic Beauseigneur graphic designer Carole Peres proof reader Debbie Lincoln contributors Damian Arnold, KK Chadha, Mark Cooper, Steve Killick, Doug Morrison, Gardner Robinson editorial management Boutique Editions prOdUctiON departmeNt content director Jean-Marc Andre publications production and development manager Martin Screpel publishing product manager Chealsy Choquette publishing co-ordinators Emilie Lambert, Amrane Lamiri, David Le Chapelain productions assistant Veronica Pirim production assistant, cannes Office Eric Laurent printer Riccobono Imprimeurs, Le Muy (France) admiNiStrative & advertiSiNg departmeNt real estate division director Christophe Chupot mipim & mipim asia director Filippo Rean commercial director Julien Sausset Sales director investors, corporate end-Users and Hotel groups Aude Fraisse Sales manager investors, corporate end-Users & Hotel groups Claire Chaussidiere regional director of Sales Christine Lam UK managing director Peter Rhodes OBE Senior vice president (USa) Patric Dolan Published by Reed MIDEM, BP 572, 11 rue du Colonel Pierre Avia, 75726 Paris Cedex 15, France. Contents © 2011, Reed MIDEM Market Publications. Publication registered 4th quarter 2011. ISSN 1962-9974. Printed on 100% recycled paper ®

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