Chao Tian Men Project "Proceeding As Planned".

Chongqing has expressed its support for the mega eight-tower mixed-use office, retail, hotel and residential project led by CapitaLand. 

Weeks after the political fallout arising from the forced step-down of Bo Xilai as Communist Party Chief of Chongqing, CapitaLand – Southeast Asia’s largest real estate developer – has announced that its mega mixed-use development in prime Chongqing will proceed as planned.

In a meeting last Wednesday with senior executives of CapitaLand and Singbridge, Chinese Vice Premier Zhang Dejiang, who replaced Bo, "expressed support for the project", said CapitaLand. "CapitaLand is now working closely with the Chongqing government to implement the project," it added.

With a gross development value estimated at SGD 4.3 billion, the Chao Tian Men complex spans approximately 817,000 sq m. Located on a prime site in the city, the development promises to be an iconic one, comprising of a retail mall and eight towers which will house hotel, serviced apartment, residential and office units.

The Chao Tian Men project is a joint venture between CapitaLand, CapitaMalls Asia (CMA) and Singbridge Holdings. In terms of interests, CapitaLand and CMA holds 50%, while Temasek Holdings’ full subsidiary, Singbridge, will hold 30%. Unnamed investors hold the remaining 20% stake in the project.

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An upcoming event – The Real Estate Show Asia 2012 – is a conference and exhibition that focuses exclusively on partnerships for land use, urban development and large scale mixed-use communities in Asia Pacific. Position your organisation and projects strategically as an exhibitor at The REAL ESTATE SHOW Asia 2012. Contact me at +65 6322 2748 or gavin.harris@terrapinn.com

For centuries, children obeyed ancient traditions dictating they were responsible for taking care of their elders, but some figures show the change. Today in China there are roughly 266,000 beds in nursing homes, up from virtually none 30 years ago. Modern government edicts have sought to codify ancient rules of filial duty, but the role of the family has shifted in China. Roughly 40 percent of seniors now live alone rather than in multigenerational households.

There are 178 million Chinese over age 60, and more than 11 percent of this group is over age 80. The one-child-per-couple policy enacted for the ethnic Han majority has increased the burden on working generation; one child often must care for two parents and four grandparents. When young people move to the cities for jobs, they often leave elderly parents alone in their villages. Even when grandparents move to cities with their families, those grandparents are often left alone during the day. Consequently, in the new China, the demand for housing for seniors is real.

The country now must create the supply. Financing is a key issue and currently the Chinese government subsidizes the construction of non-profit facilities. China has sought foreign investment capital, but a few publicised failures have hovered over investors. Yet, buildings still rise. A small percentage of seniors in China wanting to live in expensive retirement communities make up a robust luxury market, but the needs of the great majority of people who cannot afford such a community must be addressed.

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Asia’s foremost senior living event Retirement Communities World Asia 2012 will be holding its 3^rd annual conference in Hong Kong from 16 – 18 October 2012. It will bring together key stakeholders in the development, investment and management of senior living properties across Asia, identifying development and investment opportunities in the region. Visit our website or download conference prospectus for more information.

Against the backdrop of the ongoing European debt crisis and the US still struggling with the global financial crisis, REITs are much better placed to withstand further credit squeezes or economic turmoil. The 10 most significant findings over 2011 are highlighted along with the direct and indirect taxation issues relating to REITs in Australia. Parts of analysis include debt maturity profile, composition of interest bearing debt, gearing levels and discount of market price to net tangible assets. This 3^rd annual monitor also analyses 94 REITs from 6 neighbouring regions in terms of their discount of market price to NTA.

Click here to download the full report >

PKF is one of the largest accounting associations in Australia with 91 partners and 700 staff located in 11 capital city and regional offices nationally. It offers a suite of accounting and business advisory services for all business lifecycle phases and across industry sectors. With focus on the REIT sector, the Property and Construction team can give relevant and practical advice in a value add context and provide a seamless service throughout Australia and the Asia Pacific region. PKF is one of the associate sponsors of the 11th annual Real Estate Investment World Asia 2012.

Get more insights at the Real Estate Investment World Asia 2012, taking place from 26 – 28 June at Marina Bay Sands, Singapore. Visit www.reiwasia.com or download conference brochure for more information.

While economic momentum in the US is improving, Europe’s sovereign debt crisis and China’s construction of a ‘soft-landing’ will result in slower global growth in 2012. Real estate continues to offer attractive value relative to the bond market with lower volatility in contrast with the equity market. As the global economy is expected to recover later in 2012 and 2013, RREEF recommends a modest overweight to Asia Pacific and the US with a modest underweight to Europe, notwithstanding currency and tax effects.

Downloading the full report here >

RREEF Real Estate is the real estate investment business of Deutsche Asset Management, investing across the risk spectrum in core, value-added and opportunistic real estate, real estate and infrastructure securities and real estate debt on behalf of governments, corporations and insurance companies worldwide. RREEF is the Day one luncheon sponsor for the 11^th annual Real Estate Investment World Asia 2012.

Mr Koichiro Obu, Head of Research, Japan & Korea from RREEF will be speaking at a panel discussion at REIW Asia Conference Day 2. Here are the details:

Panel: Core and distressed real estate investing in Japan – How are risks, yields and exit strategies looking? (11.30a.m., Thursday, 28 June 2012)

Moderator:

• Mr Christian Mancini, Chief Executive Officer-Japan, Savills

Panellists:

• Mr Francois Trausch, Chief Executive Officer, Asia Pacific, GE Capital Real Estate
• Mr Hidetoshi Ono, Head of Japan Core Fund, AXA Real Estate
• Mr Koichiro Obu, Head of Research, Japan & Korea, RREEF
• Mr William Schoenfeld, Founder & President, Asia Pacific Land

Get more insights at the Real Estate Investment World Asia 2012, taking place from 26 – 28 June 2012 at Marina Bay Sands, Singapore. Visit www.reiwasia.com or download conference brochure for more information.

The Asia-Pacific region continues to outperform the rest of the world even as the EU debt crisis and anaemic growth in the US pose external challenges. Many nations have made use of fiscal and monetary tools to address these disruptions while domestic demand also helped in Asia’s post-financial crisis rebound. However, the region is not immune to Europe and US; the withdrawal of European bank lending may hurt growth prospects and policy makers are looking at ways to boost consumption as manufacturing and exports decline.

Economic obstacles aside, commercial real estate generally outperformed for most of 2011. But Seoul and Tokyo are expected to bottom out in 12 to 18 months. Given the more subdued economic environment in the second half of 2011, real estate performance will likely be moderate in the first half of 2012 as returns revert to more sustainable levels. Expansion is expected in 2013 when returns rise.

Being a diverse mix of national, subnational and urban markets, total returns in the Asia-Pacific region are likely to be moderate.

For more details on individual economies and property markets as well as further recommendations by RREEF, download the full report here >

RREEF Real Estate is the real estate investment business of Deutsche Asset Management, investing across in the risk spectrum in core, value-added and opportunistic real estate, real estate and infrastructure securities and real estate debt on behalf of governments, corporations and insurance companies worldwide. RREEF is the Day one luncheon sponsor for the 11th annual Real Estate Investment World Asia 2012.

Mr Koichiro Obu, Head of Research, Japan & Korea from RREEF  will be speaking at a panel discussion at REIW Asia Conference Day Two. Here are the details:

Panel: Core and distressed real estate investing in Japan – How are risks, yields and exit strategies looking? (11.30am, Thursday, 28 June 2012)

Moderator:

•  Mr Christian Mancini, Chief Executive Officer-Japan, Savills

Panellists:

•  Mr Francois Trausch, Chief Executive Officer, Asia Pacific, GE Capital Real Estate
•  Mr Hidetoshi Ono, Head of Japan Core Fund, AXA Real Estate
•  Mr Koichiro Obu, Head of Research, Japan & Korea, RREEF
•  Mr William Schoenfeld, Founder & President, Asia Pacific Land

Get more insights at the Real Estate Investment World Asia 2012, taking place from 26 – 28 June at Marina Bay Sands, Singapore. Visit www.reiwasia.com or download conference brochure for more information.

This is the first awards of its kind in Asia to honour industry players for their ability to demonstrate growth, outperformance and adaptability to changing market conditions and/or client needs within the real estate sector.

The REIW Asia Awards for Excellence will be presented at the 11th REIW Asia 2012 Industry Gala Dinner on 27 June 2012.

The following awards will be based on nominations from the industry:

• Best Asian REIT manager

• Best Asian PERE fund manager

• Best property advisory/consultancy

• Asian property transaction of the year

• Financing deal of the year

• Institutional investor of the year

The review period covers January 2011 until April 2012. However, this date range is flexible and intended only as a guide. Nominees can come from any part of the real estate investment industry and may be an individual, a team, a company or a dedicated project.

These are awards that you decide by first nominating and then voting for the person, company or project that is taking Asian real estate to the next level.

One nomination per person. Multiple nominations from the same person will not be considered. Nominees may not vote for themselves. Nominees may nominate their own company or project they are working on, but we will accept only one nomination per company . All nominations must come from a company email address. Nominations from personal email addresses will not be considered. Nominations close on 31 May 2012.

Click here to make your nominations now!

Once we have collected your choices, we will draw up the shortlist for you to vote to decide the winners for these six coveted titles.

The shortlist will be available in June and we will be in touch then.

Thank you for your support!

Said Mark Lankester, Tune Hotels group chief executive officer, "We’ve always been vocal about the Philippines as being an outstanding tourist destination that has yet to receive its due attention and part of what we aim to do is bring the due attention."

"Makati is a natural element of the Tune road-map of national expansion in the Philippines and our aspirations involve being able to cater to the needs of not only leisure but business travellers both from within and inbound to the country," he added.

Tune Hotel Makati joins three other Tune hotels in the Philippines, which are located in Angeles City, Cebu City and Ermita in Manilla.

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If you are interested in economy hotels such as Tune Hotel, if you want to learn more about this market segment and meet people in this sector, come to our upcoming conference- the 4th Annual Economy Hotels World Asia, taking place in Singapore this September, 10-12th. Over 130 economy hotel developers, owners, operators and service providers will gather together to discuss the strategies and opportunities in this niche market. Download the preliminary program to find out what topics will be covered.

Families caring for the frail elderly are in for a windfall, with more state subsidies for care in community hospitals, nursing homes and even at home. For the first time, even the richest can get state subsidies for stays in community hospitals.

In this "season of plenty", it may seem politically incorrect to talk about some seniors who feel short-changed about retirement options.

But international senior-living consultant Tan Kee Hian, 57, believes this is as good a time as any to discuss the relative shortage of living choices for Singapore’s growing group of more affluent, older folk.

He says many seniors in the top fifth to 20th percentile of the income scale would gladly part with their savings to live in retirement villages (RVs) which offer professional care and support services such as an on-site round-the-clock emergency response system.

While such communities are common in most developed countries, there are none in space-starved Singapore. Both the public and policymakers seem to prefer "ageing in place" – where people live out their last years in the community rather than in institutions.

But Mr Tan says that while boosting community resources to enable the majority to age in place is a "basic necessity" here, no one solution can fit the needs of all seniors.

"Ageing in place assumes that everyone has similar needs – and that’s a very big assumption. Given the diversity of our First World society, we deserve more choices."

The veteran management consultant is convinced there is a need and even a demand for Western-style retirement villages, and hopes to develop Singapore’s first such project.

He says those who argue that there is absolutely no demand for retirement villages here are divorced from reality.

"If you repeat a myth often enough, it gets mistaken for a fact."

Over the past two years, he has rigorously researched and written a proposal for a $70 million to $80 million retirement living project in Jalan Jurong Kechil, a site the Government has earmarked for the purpose.

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In its 3^rd year – Retirement Communities World Asia 2012, will bring together all key stakeholders in the development, investment and management of senior living properties across Asia.

Do you have the expertise to assist organisations looking to break into the Asian market?

Can you add value to the development of a new Retirement Community in Asia?

Do you need to attract investment interest or funding for a planned or active development in Asia?

Then benefit from targeted brand association and strategically present your business case! Contact me at gavin.harris@terrapinn.com or call +65 6322 2748

The total cost of the project has not been calculated yet as it is in a very initial stage, with its master plan being worked out in terms of partnerships and other details. The company said it would be a unique mega-project for the area, with a shopping centre and other facilities such as a yacht club.

Hemaraj announced yesterday that it had acquired 228.15 rai (36.5 hectares) of land on Koh Lan, whose name translates as Million Island; the development is called Million Island Pattaya.

David Nardone, president and chief executive officer of Hemaraj, said the Million Island Pattaya project would be developed in phases with several partners.

"With increased industrialisation and residential needs in the Eastern Seaboard, hotel, entertainment and convention venues are limited. The acquisition of 228 rai, though large, is a fraction of the cost of resort, hotel or entertainment developments in Bangkok or Pattaya seafront locations. This provides the opportunity for a controlled-environment integrated resort and entertainment real-estate development, much like our experience in industrial-estate master planning and development."

Read the full article, click here

An upcoming event – The Real Estate Show Asia 2012 – is a conference and exhibition that focuses exclusively on partnerships for land use, urban development and large scale mixed-use communities in Asia Pacific. Position your organisation and projects strategically as an exhibitor at The REAL ESTATE SHOW Asia 2012. Contact me at +65 6322 2748 or gavin.harris@terrapinn.com

A German market research institute has done a study of the budget hotel market to evidence the striking success of the cheap challengers. Nine popular central European budget hotel groups were checked by mystery shoppers.

What mainly impressed the inspectors was that you cannot lump them all together. Five times each group was visited unheraldedly at different locations.
The focus of the study is on service conditions: Can one expect the same friendly personnel and good quality as with renowned premium products? Yes and no: For example, the quality of breakfast was varying strongly. 45 percent of the checks resulted in "not sufficient" coffee and etc.
Another key problem is communications: An in-room phone was available only in 55 percent of the hotels, and this is a feature widely expected even among budget travellers.
Another deficit the study points out is missing facilities such as lockers, minibar or fridge. More than 30 percent of the checked locations did not have any of those convenience features.

On the contrary, TV and towels after all have been registered everywhere.

To read the full article, click here.

The upcoming event – the 4th Annual Economy Hotels World Asia, taking place in Singapore this Sep 10-12th, will bring together over 100 property developers/owners, investors international and local operators and hospitality solution providers to identify development and partnership opportunities in economy hotel segment. Download the preliminary program and find out what you could expect from this economy hotel industry gathering.