real estate development the chinese way (albert chan) - uli fall meeting - 102811

Real Estate Development a Chinese way--Masterplanned Urban Redevelopment

ULI Fall Meeting 2011Los Angeles

Albert Chan

October 28, 2011

Confidential – not for distribution内容机密请勿外泄

Shui On Construction and Materials

• Founded and listed on the HK Stock

Exchange in 1997

• Focuses on asset management, construction, cement production, property development and

venture capital

Shui On Construction and Materials

• Founded and listed on the HK Stock

Exchange in 1997

• Focuses on asset management, construction, cement production, property development and

venture capital

Shui On Group

• Founded in 1971 by Vincent Lo

Shui On Group

• Founded in 1971 by Vincent Lo

Shui On Land

• Founded in 2004 and listed on the HK Stock Exchange in

2006

• Focuses on large-scale development projects on the Chinese Mainl

and

Shui On Land

• Founded in 2004 and listed on the HK Stock Exchange in

2006

• Focuses on large-scale development projects on the Chinese Mainl

and

Shui On Group

Vision of Shui On Land

Prime Location + masterplanned Community = Prime Location + masterplanned Community = competitive advantagecompetitive advantage

Prime Location + masterplanned Community = Prime Location + masterplanned Community = competitive advantagecompetitive advantage

Utilizing strengths in master planning with well-researched analyses of market trends and needs of the cities.

Work closely with the government to develop comprehensive master plans that can assist in achieving their goals and the transformation of their cities.

Create landmarks in our projects to attract visitors and buyers.

To be the premier innovative property developer in the Chinese Mainland, the most exciting property market in the world

We focus on large-scale projects, primarily of the following types:We focus on large-scale projects, primarily of the following types:

City Core Developme

nt Projects

Knowledge Community

Projects

Strategy of Shui On Land

Transit based

Development

Projects

Competitive Advantage at all Stages

City screening, site selection and master planning

Land acquisition

Procurement and construction

Project design, interior design and product positioning

Pre-sales, sales and marketing

Property management and after sales

WuhanWuhan

ChongqingChongqing

ShanghaiShanghai

DalianDalian

FoshanFoshan

Access to Land in Prime Cities

Total land bank: 13.1 mn sqm Total land bank: 13.1 mn sqm

Total GFA by CityTotal GFA by CityTotal GFA by UsageTotal GFA by Usage

Landbank is sufficient for the next 10 years of developmentLandbank is sufficient for the next 10 years of development

13.1 mn

sq.m5 cities

Landbank Breakdown

Proven expertise and successful track record in developing large-scale integrated property projects based on master plans developed in conjunction with local governments

City-Core DevelopmentKnowledge

Communities

Taipingqiao

GFA1.2m sqmShanghai

Chongqing

Tiandi

GFA3.6m sqm

Chongqing

Wuhan

Tiandi

GFA1.5m sqmWuhan

Foshan Lingnan Ti

andi

GFA1.6m sqmFoshan

Knowledge andInnovationCommunity

("KIC")

GFA0.5m sqmShanghai

DALIAN TIANDI •

software hub

GFA3.5m sqm

Dalian

Rui Hong Xin

Cheng

GFA1.2m sqmShanghai

HongqiaoTiandi

GFA0.06m sqmShanghai

Projects with Different Development Models

I. China’s urbanization

Need for Development in China – Urbanization

China is undergoing the largest urbanization effort in human history

YearUrbanized Population

(million)Urbanized Population (%)

Population Increase Compared to 1995

1995 351 29 -

2000 459 36 108

2005 562 43 211

2010 635 47 284

2020 775 52 424

2050 1,195 65 844

Sources: China Statistical Yearbook (2006), China’s “11th Five Year Plan”

Need for Development in China – Lack of land

25.9

13.110.9

2.85 2.1 1.43

Canada Russia U.S. India German China

Comparison of arable land per man in 2005

（ 1 Chinese mu ~ 0.16 acre)

30

25

20

15

10

5

0

(Chinese Mu)

Economic growth drives need for city transformation and development

Average real GDP growth rate of 9.9% since the Open Door policy began in 1978

Timely and effective stimulus programme – China grew by 9.1% in 2009

Source: National Bureau of Statistics, IMF World Economic Outlook April 2010

Real GDP growth (yoy, year-to-date)

13.0%

11.1%

11.9%

6.1%

9.6% 8.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Q1

Q3

2009

Q1

Q3

2010

Q1

Q3

Two basic ways to urbanize: expansion and upgrade of existing cities & the creation of new ones

China’s Urbanization

Traditional city blocks in Shanghai

walkable mixed usage inherent of culture & context

But cannot meet urbanization demand low efficiency buildings are obsolete shortage of land in cities


Plan of Beijing City: high density suburbanization?


Typical Residential Development: separation of land use


China Today Number one producer and consumer of cars in the world


Underdeveloped neighborhoods in the city core provide many vibrant growth opportunities


Unprecedented need for urbanization

Both the expansion and creation of cities has led to similar urban issues:

Increased car traffic and pollution. Development of car-oriented cities

Loss of cultural identity

Lack of pedestrian-oriented streets and places that foster a rich civic life

Energy consumption and carbon emission are greatly increased

Urban core development stagnation is beginning to appear in cities with rapid economic growth and expansion at the edges

Newly formed residential districts are frequently isolated from work and leisure places

China’s Urbanization and Development Issues

II. Shui On’s Development Planning Principles

Community-Scaled urban development

Lifestyle Centers

Mixed Use Communities

Good Linkage To Transit

Walkable streets and blocks

Open Space Amenities

Phased development

Respect for local culture

Sustainable Development

SOL Masterplanning Principles

2 Cases of urban redevelopment

Shanghai Taipingqiao

Foshan Lingnan Tiandi

Shanghai Taipinqiao Masterplan Community

办公楼零售酒店住宅及服务式公寓其他用途合计

390,000M2 120,000M2 100,000M2 540,000M2 5,000M2 1,155,000M2


To help regenerate Luwan District through redevelopment of

old residential area into mixed used community

Position to be an urban center international 24/7 community

Respect for, and linkage to the existing urban fabric

Traditional streets and blocks size

Pedestrian and public transit oriented

Include adaptive reuse of areas within the community

Phased development


Shanghai Taipinqiao Masterplan Community: Xintiandi development

Xintiandi: Existing Context

Located at the heart of Shanghai

Part of Taipingqiao masterplan

Planning restrictions and opportunities due to First

Congress Hall

Existing traditional buildings-li long


Xintiandi Development and Design Concepts

Utilize Shanghai tradition to create center of living culture and living lifestyle

Adaptive reuse of traditional residential buildings

Create a focal point in Shanghai

Create variety of open spaces to enjoy and mingle

Assemble a unique mix of uses to create a destination

Enhance the value of the masterplanned area


Shanghai Taipinqiao Masterplan Community: public space

A lifestyle focal point for Shanghai

A development that defines the area

Brand Creation for development type and for SOL

Unique way to approach large scale urban development

Traditional buildings and districts can have value

Pedestrian friendly developments works

Recognitions : First China Development to win ULI Award of Excellence (2003), plus other international and local awards

What has Xintiandi done?

Shanghai Taipinqiao Masterplan Community: office development

Shanghai Taipinqiao Masterplan Community: mixed use development

Shanghai Taipinqiao Masterplan Community: residential development

Shanghai Taipinqiao Masterplan Community: hotel development

Shanghai Taipinqiao Masterplan Community: mixed use development

2008 TPQ SOP 26/F LEED-CI Silver Cert

2009 TPQ SOP 25/F LEED-CI Silver Cert

2009 TPQ Lot 126 LEED-CS Gold Pre-cert

2010 TPQ Lot 127 LEED-CS Gold Pre-cert

Shanghai Taipinqiao Masterplan Community: sustainability

Premier community in Shanghai

Become known as “Xintiandi community”

Ongoing phased development

Xintiandi is a lifestyle focal point and landmark

Vibrant urban destination day and night

Increase in values for the district and property owners

Desirable community to live, work and play

What has Taipingqiao community become?

Location of Foshan

佛山 Foshan


Named “Foshan” in the year 628

One of China’s “ 四大名镇” Known as“ 天下四大聚” along

with Beijing, Hankou, and Suzhou

Hometown of Cantonese Opera Hometown of traditional Chines

e medicine Hometown of martial arts Pottery art Cantonese cuisine Paper-cut

Foshan Culture


Cantonese Opera Nanfeng Guzhao ( 南风古灶 )

Wang Fei Hong( 黄飞鸿 ) Ancestral Hall

Paper-cut Lion Dance Cantonese Cuisine

Foshan Culture


20km

佛山Foshan

广州白云机场Guangzhou Baiyun Airport

广州 CBD

5 号线Line 5

Subway link to Guangzhou CBD

建新路祖庙Zu Miao

佛山老城Foshan Old City

东华里Donghuali

5号

线L

in

e 5

一号线Line 1

65 Ha

祖庙站祖庙站Zu Miao StationZu Miao Station

普君北路站普君北路站

Line 1 and line 5 will link Foshan to the CBD of Guangzhou and bring new development opportunities

1 号线Line 1

Metro Line 1 and line 5


品字街历史文化街区Pinzi Historic and Cultural Street Block

梁园历史文化街区Liang Garden Historic and Cultural Street Block

莲花南历史文化街区Lianhuanan Historic and Cultural street Block

任围历史文化街区Renwei Historic and Cultural Block street Block

祖庙－东华里历史文化街区Zu Miao-Donghua Historic and Cultural Street Block

新安街历史文化街区Xin’an Historic and Cultural Street Block

省级保护文物单位Provincial Level and Municipal Level

国家级文物保护单位National Level

6 Historic and Culture Street Blocks of Foshan Old Town


Original Site Texture and Building Fabric


22 Heritage Protected Sites and Many Historic Buildings


Project Location and Context


Zu Miao ( 祖庙 ) Retail Corridor

Existing Commercial Center

Existing Commercial Context


Donghuali ( 东华里 )


Traditional Neighborhood with Unique Architecture


Jianshi Mansion ( 简氏别墅 )


Historic Alleys


Preserve the Existing Buildings and the Special Architecture Elements


Need for Building Improvements: the Structure

Upgrade the structure for 70-year usage

New utilities and infrastructure

Upgrade the fire-fighting system and modern amenities (kitchen, toilet)

Upgrade the interior to satisfy the sunlight and ventilation requirement

Car Parking (Including basement)


Master Plan

Total net site area is 51.74ha., total GFA is 1.5 million square meters


Land Use Plan

办公楼

Office

零售

Retail

酒店

Hotel

服务式公寓 Service Apartmen

t

居住

Residential

其他用途

Others

合计

Total

450,000M2 200,000M2 80,000M2 30,000M2 700,000M2 40,000M2 1,500,000M2


“Valley” Concept to Control New Development


Mixed-Use Development


Master Plan Birds- Eye View


Proposed scheme

Code requirement

Current situation

典型容积率

Typical FAR

典型覆盖率

Typical 　 Coverage

老城　

Old City

1.98 70%

容积率 FAR 覆盖率 Coverage

地块 14

Parcel 14

1.5

49%

地块 4

Parcel 4

2.8

43%

容积率 FAR 覆盖率 Coverage

地块 14

Parcel 14

1.6 32%

地块　 4

Parcel 4

2.827%

4

14

Site Coverage


Existing View Conditions from Zumiao Temple Courtyard

建新路

Jianxin Road

人民路

Renmin Road

祖庙庭院

Zumiao Temple Courtyard

可见部分visible

祖庙庭院

Zumiao Temple Courtyard

南向视线Looking South 北向视线

Looking North

Concept of “Hills and Valleys”


1

2

建议道路　 Proposed Roadways

1, 2 需要搬迁的传统建筑　 Traditional Buildings to be Relocated

各级文物建筑

保存良好的传统建筑

需要立面和内部改造的传统建筑

保留肌理和尺度的改造

1

2

Combine New Roads and Preserved Pedestrian Pathways


Underground Retail Diagram


Open Space Network


Open Space Network: Zumiao Temple ParkExpand the Zumiao Temple public space, restoring the traditional space, reopen the east entrance


Projects under development

Lot D 酒店式公寓 Service Apartment

Lot Gos 公共绿化Public Green Space

Lot 4,14,5&15 高尚住宅区High-end Residential

Lot 1 岭南新天地 LNTD


Lot E 综合体Apartment & Shopping

Mall

Lot A 综合体Mixed use develop

ment

The Main Development Concept

Foshan Lingnan Tiandi: Adaptive Reuse development

Original Appearance


Historical Building Revision – Levels of protection


Function


Sustainable Site Design

Transit based, pedestrian friendly masterplan

Mixed use, high density, walkable blocks

Landscape Design

Transportation and Circulation

Energy Strategies

Water & Wastewater Management

Solid Waste Management

Air & Indoor Environmental Quality

Social Benefits and Community Development

Third Party Certification

SOL’s Sustainable Development Framework


Rendering Original

Restoration of Jian Shi Villa ( 简式别墅 )


Jianshi Mansion ( 简式别墅 ) Central Plaza


Creating Memorable Streets


Under Construction


Restoration and architectural transformation of historical buildings

Phase 1 retail street view: restoration of 4 historical buildings Restoration of a provincial-level protection unit: Jianshi Mansion

Restoration of a protection unit- Li Zong Sheng old shop Restoration of a protection unit - the Wine Club


Enchanting scenery of the streets


View from the window A vibrant space in the yard



Foshan Lingnan Tiandi: Public Space by historic temple

Foshan Lingnan Tiandi: Public Space at historic temple

Foshan Lingnan Tiandi: Lot Gos Public Space

Foshan Lingnan Tiandi: Hotel & Service Apartment

Foshan Lingnan Tiandi: Residential

Lot e mixed use development exterior


Foshan Lingnan Tiandi: Shopping Mall & Residential

Lingnan Tiandi - Awards

AIA National, Institute Honor Award for Regional and Urban Design 2009

AIA San Francisco Chapter, Urban Design Honor Award, March 2009

AIA California Council Merit Award for Urban Design 2009

AIA Hong Kong, Urban Design Merit Award 2008

MIPIM ( 国际房地产交易会 )and Architectural Review, Regeneration and Masterplanning, Commended 2009


Foshan Lingnan Tiandi: sustainability

LEED-Neighborhood Development--stage two certified Gold

III. Conclusion

Perspective of a developer

To encourage the growth of sustainable development in China, we believe we need to start with encouraging a sustainable lifestyle in a broad sense:

Less car-dependent, greater emphasis on the pedestrian

Mixed use development

Enhance the economic growth of the city

Attention to and respect for the local culture and history

Need density, avoid sprawl

Urban redevelopment is important part of the solution

Create memorable places for human interaction

Search for practical sustainable techniques that can be implemented on a large scale, starting during planning stage

A sustainable lifestyle

TPQ SOP 25/F LEED-CI Silver Cert

TPQ SOP 26/F LEED-CI Silver Cert

CQ B11 LEED-CS Gold Pre-cert

CQ B3 LEED-CS Gold Pre-cert

KIC Hub II LEED-CS Silver Pre-cert

KIC Lot 5-5 ， 5-7 ， 5-8 LEED-CS Gold Pre-cert

TPQ Lot 126 LEED-CS Gold Pre-cert

TPQ Lot 127 LEED-CS Gold Pre-cert

WH A4 LEED-CS Gold Cert (Stage 2)

WH A5 LEED-CS Gold Cert

CQ Master Plan LEED-ND Gold Cert (Stage 2)

FS Master Plan LEED-ND Gold Cert (Stage 2)

WH Master Plan LEED-ND Gold Cert (Stage 2)

KIC Hub Office LEED-CI Gold Cert

KIC Lots 5-3, 61-B LEED-CS Platinum Pre-cert

DL D22/D14 LEED-CS Gold Pre-cert

SOL SGS

Company level project sustainability

45% of Shui On development are LEED registered, pre-cert or certified

THANK YOU

[email protected]

Foshan Lingnan Tiandi: Lot Gos Public Space

Lot D hotel


Shanghai Taipinqiao Masterplan Community: office development

Sustainable Technologies Being Considered for Foshan

Green Roof /Green Wall

High performance fabric

Day lighting

Central AC for CBD

Solar hot water for domestic hot water

Photovoltaic system for street and landscape lighting

Water recycling (Rain Water & Gray Water)

Ventilated & acoustic façade

Wind catcher

Cooling wall and plaza

Encourage future green building practices



Community Planning Strategy

Mixed use

Master planned with flexible urban design guidelines

Phased development

Sufficient and attractive open space

Rational density

Proximity to public transit

Walkable street grids with vibrant street fronts

Restoration of historical and cultural elements, if any

Foshan Lingnan Tiandi: public space at historic temple

Zumiao Temple Street after restoration

Flowers booming on a preserved ancient tree

Corner of Li Zong Sheng old shop



Located in the Guangdong Province, south China and in the hinterland of Pearl River Delta;

The third biggest city in Guangdong The major modern manufacturing base in China, a regional professional logistics ce

nter, national historical and cultural city Jurisdiction over Chancheng, Nanhai, Shunde, Sanshui and Gaoming five districts,

The city has a total land area of 3848sq.km with a permanent population of more than 5.86 million, of which household population of 3.586 million.

Foshan Overview


Adaptive Reuse development


Create public Space at historic temple


Residential development


Shopping Center & Residential

Foshan Lingnan Tiandi: Shopping Center & Residential

Hotel & Service Apartment



Master Plan

Shanghai Taipinqiao Masterplan Community: hotel development

real estate development the chinese way (albert chan) - uli fall meeting - 102811

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