Archive for category: News

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SINGAPORE – Cushman & Wakefield recently released the second edition of a comprehensive white paper entitled “Emerging and Frontier Markets: Assessing Risk and Opportunity” that evaluates four key risks and ranks 42 countries using a weighted index to determine which markets provide the best opportunity for global expansion. The report is available at the following link:

Emerging and Frontier Markets: Assessing Risk and Opportunity<http://www.cushmanwakefield.com/en/research-and-insight/2014/emerging-market-risk-index-2014/>

 

“Emerging and frontier markets present some of the most significant opportunities for occupiers and investors,” said John Santora, President and Chief Executive Officer of Cushman & Wakefield Corporate Occupier & Investor Services. ”The coming months will bring challenges, but the growth opportunities in most markets should outweigh the risks.”

 

Key factors that remain at the forefront for any entity planning to lease, own, or operate property in emerging and frontier markets include transparency risks regarding the reliability and accessibility of information about property rights as well as corruption risks associated with the reputation of business partners and the threat of bribery or unethical business practices. However, the recent political developments in Ukraine, Iraq and Venezuela have increased the profile of geopolitical risks and the related health & safety risks of keeping employees safe and secure.

 

“Adequate security plans must address the physical asset, the employees, and the company’s information,” said Raymond W. Kelly, President of Cushman & Wakefield Risk Management Services. “The right plan and protocols begin with pre-occupancy planning and address on-site and off-site security, business continuity, crisis management, and recovery assistance.”

 

Existing political systems in many countries are under pressure and states with poor governance and cultural tensions are susceptible to terrorism and other crimes such as kidnapping. Cyber security is also an increasingly critical issue as companies become more global. In addition, properties associated with more controversial industries such as oil & gas exploration are at higher risk.

 

While countries with increasing geopolitical risks have fallen out of favor with most occupiers temporarily, there are still significant growth opportunities across many emerging and frontier markets. Multi-nationals see strong population growth, an increasingly educated and affluent labor force and more transparent governments as driving factors for expansion. Property investors see an undersupply of adequate real estate to meet corporate demand and are actively developing 21st century buildings in many central business district (CBD) locations.

 

The lowest risk emerging and frontier real estate markets are dominated by Africa and the Middle East, with eight of the 10 most efficient and transparent countries. South Africa scores well in terms of the ease of securing property and possesses some of the more developed property markets in the region. Across South Africa, the office market has continued its slow recovery with demand from multinational occupiers for well-located, high-quality space expected to be steady, although overall availability remains relatively high.

 

In Latin America, the top three locations are Peru (8th overall), Mexico (15th overall) and Uruguay (18th overall). Mexico’s performance is inconsistent, ranking high in some categories such as market transparency while faring poorly in others such as registering property and political stability. The construction pipeline in Mexico City stands at an all-time high of 1.4 million square meters. Asking prices for rent continue to rise moderately, driven to a large extent by the higher standards of new buildings and sizable absorption.

 

Indonesia is the most transparent market in the Asia Pacific region (5th overall), followed by Thailand (11th overall), and The Philippines (14th overall). While the Indonesian office market is in a “wait-and-see” mode until after its 2014 general elections, demand for space has been positive and in-line with the country’s growing economy, although rents in Jakarta are expected to show lower growth in 2014-2015 in the face of higher supply.

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BANGKOK — The owners of a property development that aims to be an iconic symbol of national pride for Thailand and represents the largest investment ever made by the private sector in a property endeavour in the country, today, presented the first details of the mega-development’s key components and announced that the dramatic new riverside landmark being constructed in Bangkok is to be named ICONSIAM .

The 750,000 square metre gross floor area (GFA) development, for which piling has just begun, includes two glamorous retail complexes covering 525,000 square metres, two super-luxury waterfront residential condominium buildings of 70 and 40 floors, a riverside event plaza of over 10,000 square metres, as well as seven attractions that are the first of their kind in Thailand and which are called the ‘Seven Wonders at ICONSIAM.’ Among the attractions is Southeast Asia’s longest land-based multi-media water-and-fire feature at over 400 metres in length.

The developers also announced that they have raised their investment to US$1.54 billion (Bht 50 billion), up 40% from the time when the decision to develop the plot was first announced, in response to strong interest in the development’s concept and the expansion of the project’s land area from 16 acres to 20 acres.

ICONSIAM, due for completion in 2017, is being developed by three of Thailand’s most successful businesses, including Siam Piwat – owner and operator of prestige retail developments such as Siam Paragon – Magnolia Quality Development Corporation , a top-end residential developer with projects such as Magnolias Ratchadamri Boulevard, and multi-national conglomerate Charoen Pokphand Group .

Mrs. Chadatip Chutrakul, CEO of Siam Piwat Co., Ltd., said, “We are creating the most sensational property development that this country has ever seen that will change the axis of activity within Bangkokas well as boost the city’s appeal as a top global destination. It combines the best of the world with the best of what Thailand has to offer. ICONSIAM is also pioneering revolutionary new ideas at the forefront of retail development . For example, the world’s most iconic brands will build their own iconic brand mansions inside our retail complexes, with the mansions designed to represent the heritage and essence of each brand.”

Ms. Tipaporn Chearavanont, CEO, Magnolia Quality Development Corporation Ltd., said, “ICONSIAM is like a new city and embraces residential, retail, and cultural components. It is located at the heart of a broad catchment area for international and local customers, with 3 million residents, 200 upscale residential projects and more than 10,000 rooms in 50 world-renown hotels within a five kilometer radius.”

She said, “The Magnolias Waterfront Residences at ICONSIAM will set new benchmarks in residential development in Thailand and are among the world’s best residential properties. They are targeted at people who are a part of a seamless global community operating without national boundaries, and their expectations of quality, conveniences and services are at the highest levels, regardless of whether they are living in London , Tokyo , New York , or Bangkok .”

The site has 400 meters of river frontage, the longest of any property in central Bangkok.

Mr. Narong Chearavanont, Senior Executive Assistant to Chairman of Charoen Pokphand Group Co., Ltd., said, “ICONSIAM also is at the heart of one of the biggest collaborations between the private sector and the public sector to revitalise Bangkok’s world-renown Chao Phraya River. More than 30 important establishments with riverfront sites along 10 kilometers of the river will collaborate with joint promotions, activities, and shared river boat services. They aim to make the river into a global-scale attraction to further boost Bangkok’s appeal as one of the world’s most desirable destinations as well as enhance its standing as a hub city in the new ASEAN Economic Community. The establishments include retailers, hoteliers, river transport operators and sites of historical and cultural significance.”