Hong Kong Overview L Services We see value.
L Services A trusted advisor for your real estate valuation consultancy requirements JLL s Services team provides professional valuation property consultancy advice to suit your real estate needs. We have over 40 years experience in property valuation advisory in Hong Kong, having offered these services since the 1970s. team has a proven track record in working with both local multinational clients, in Hong Kong across the Asia Pacific region. We can provide you with sophisticated impartial valuation consultancy advice in strategic planning, initial public offering, sales disposal, financial reporting, finance capital raising. Services Monitor review your real estate portfolio to recommend space requirements, strategic disposals or potential redevelopments. Independent valuation advice expert advice on real estate-related legal disputes proceedings, representation in courts arbitration negotiations. for investment funds trusts in portfolio management strategic long-term investment planning with our proficient appraisals critical analyses. L Advice on town planning, lease modifications, resumptions acquisitions. Verbal value indication reporting to assist in your mortgage lending financing decisions. Single point of contact to meet your regional property valuation needs. coverage extends to the, Macau, Taiwan, Vietnam, Philippines, South Korea beyond. Feasibility studies, market research advice on development projects to unlock the potential value inherent in your real estate. Provide due diligence support in your real estate acquisitions disposals by assessing property asset values to ensure smooth transaction processes. 02 Services
L Key Personnel Chun Kong Lau International Director Head of Services Rita Wong International Director Cliff Tse Director Dorothy Chow Director Alkan Au National Director Qualifications Members of our team hold professional qualifications with the following organisations: The Hong Kong Institute of Surveyors Royal Institution of Chartered Surveyors China Institute of Real Estate Appraisers Agents Australian Property Institute CFA Institute Estate Agents Authority JLL is a regulated firm under the RICS Valuer Registration system. Key Drivers of Success Market best practices Professionalism Good client relationships Value-added services Extensive market knowledge More than 70 employees (More than 20 in ) Over 50% qualified professionals Services 03
L Software We utilise comprehensive ARGUS Enterprise software to conduct cash flow analysis, allowing us to comply with industry stards across projects work flows. We also capitalise on in-house valuation models a comprehensive database of building profiles registered transactions dating back to 1988. Professional Indemnity Accreditation Quality Assurance System: ISO Accreditation ISO 9001: 2008 Certificate No.: CC 568 068 For more information: Chun Kong Lau MRICS, FHKIS, RPS (GP) International Director & Head of Services chunkong.lau@ap.jll.com +852 2846 5501 04 Services
L Fully utilise your real estate resources by monitoring their changing value The Services team seeks to review owners occupiers properties to assess their value, long-term space requirements, strategic sale leaseback potentials. services enable companies to derive full utilisation of their property resources via regular monitoring of their assets value by investigating alternatives for improved returns. We endeavour to innovate new ways of creating growth take pride in discovering the unseen value of assets. Services for Accounting Purposes To help you meet your statutory financial reporting requirements. Services To review your property resources in areas including occupational costs, leasing, relocation disposal strategy. Alternative Use Appraisal To identify the market potential of alternative uses of your assets, to assess changes in property value caused by adjustments in market conditions government policies legislation. To conduct highest best use analysis, including conversion, redevelopment, renovation, disposal, sale leaseback strategies. Financing Raising To assist you in making your investments with support in capital raising. For more information: Dorothy Chow BSc (Hons), MSc, MRICS, MHKIS, RPS (GP) Director dorothy.chow@ap.jll.com +852 2846 5517 05
L & Expert advice for real estate negotiations legal proceedings / arbitration The team draws on JLL s high stards of professionalism integrity to provide expert advice on real estate-related negotiations legal proceedings / arbitration. team represents llords, tenants, developers, other real estate stakeholders. We have worked closely with a number of world s reputable law firms, including Baker & McKenzie, Deacons, Hogan Lovells Norton Rose Fulbright. Services Rent Review To represent llords or tenants in rent review lease renewal cases. We advise on analysis interpretations of leases (including rental determination mechanism), comparable evidence. valuations may be used for such purposes as decision making, negotiations, submissions to independent experts for determination of rentals under lease. To provide rental /or capital value assessments for court/tribunal submissions, including cases relating to sales purchases, Chapter 545 L (Compulsory Sale for Redevelopment) Ordinance Chapter 352 Partition Ordinance. To act as expert witnesses in courts /or tribunals to provide professional input on real estate matters in dispute. We liaise with solicitors, counsels other professionals (including experts appointed by the other parties in the dispute). Taxation To assist owners occupiers in hling stamp duty rating appeals with relevant tax assessment authorities. Where a court determination is deemed appropriate, we provide proof of evidence reports act as expert witnesses in court /or tribunal hearings. For more information: Chun Kong Lau MRICS, FHKIS, RPS (GP) International Director & Head of Services chunkong.lau@ap.jll.com +852 2846 5501 06 & Ligitation
L & ing business strategies JLL provide real estate support to investment funds trusts for the management of their portfolios in making acquisition disposal decisions. We coordinate specialist teams within our firm to provide a one-stop service ranging from acquisitions disposals, technical due diligence, market research, asset management, valuation financial reporting. ed by our in-depth understing of the real estate fund sector, the team utilises in-house valuation models ARGUS software to produce timely results. Services for Accounting Purposes To act as an external valuer to provide interim annual portfolio valuations for financial statement purposes. Feasibility Studies To conduct in-depth feasibility studies of your properties to discover potential value enhancement opportunities. We assist you in developing business strategies, as well as decision-making on asset acquisitions disposals, supported by market value assessments, cash flow analysis, market research, due diligence exercises compliance checks. Raising To assist you in making your investments, with support in capital raising identifying opportunities. We conduct ongoing reviews on your fund s performance advise on potential capital structure alternatives. Clients 5 out of 10 REITs listed on the Hong Kong Stock Exchange, amounting to approximately 70% of the total Hong Kong REIT market capitalisation of HKD190.6B, as of September 2015 Cross-borders funds across the region For more information: Dorothy Chow BSc (Hons), MSc, MRICS, MHKIS, RPS (GP) Director dorothy.chow@ap.jll.com +852 2846 5517 07
L L Enhancing l owners developers real estate investments The L Services team assists owners developers in identifying unlocking the potential values inherent in l. We draw on our extensive experience knowledge of the latest developments in regulations, policies practices, to deliver consistently high results. We are experienced in advising llords developers from both the private public sectors, which has allowed our team to develop insight into complex l matters. Services Lease Modification Town Planning A change of use can enhance the value of some properties. We offer professional assistance in producing submissions to government departments authorities to facilitate development of your real estate. Lease modification l exchange applications Town planning applications Waiver applications Assessment negotiation of premium, waiver fees, or short term tenancy rentals Premium arbitrations Short term tenancy applications L Resumption Acquisition To provide transactional support for potential acquisitions, to assess compensation due to resumptions, to assist you in submitting claims to the Ls Department, Urban Renewal Authority other authorities. Identification of heads of claims Review of title documents in alignment with latest government policies Assessment of business losses other disturbances Assessment of market value to support acquisition decisions or offers Representation of claimants in meetings with government or other officials Preparation of submissions to the Ls Tribunal act as an expert witness in court or tribunal hearings for determination Formulation of acquisition strategies Coordination with external consultants throughout applications 08 L
L Case Study Client: Urban Renewal Authority (URA) Project: Kwun Tong Town Centre (Project K7) The largest single project undertaken by the Urban Renewal Authority (URA). The proposed redevelopment scheme comprised residential commercial use, together with government, institution or community facilities. The total site area covered by the scheme is about 570,000 sf is expected to deliver a total floor area of about 4,306,000 sf. This includes 2,260,000 sf for commercial use, 1,722,000 sf for residential 344,000 sf for government / institution / community purposes. Services Results: Prepared valuation reports of all non-domestic single-owner property interests in the then-existing buildings. within the redevelopment scheme, upon which the URA s acquisition offers were based. Reviewed counter submissions from consultants acting on behalf of property interests owners. Conducted negotiations with the owners their representatives. Provided valuation advice to the URA in relation to the acquisition offers counter-offers. The URA made good progress in acquiring property interests within the Scheme. The URA obtained the whole site in September 2014 foundation works commenced in April 2015. Clients Clearwater Bay L Limited Goldin Group Goodman Hanison Construction Holdings Limited Henderson L Development Shui On Group Urban Renewal Authority Several international schools in Hong Kong For more information: Chun Kong Lau MRICS, FHKIS, RPS (GP) International Director & Head of Services chunkong.lau@ap.jll.com +852 2846 5501 Dorothy Chow BSc (Hons), MSc, MRICS, MHKIS, RPS (GP) Director dorothy.chow@ap.jll.com +852 2846 5517 L 09
L Swift appraisal of all property types for financing purposes Services team provides tailor-made valuation services to banks or financial institutions regarding financing for real estate assets. experienced valuers deliver instant verbal value indications provide further information to facilitate clients financing decisions. The team hles hundreds of verbal enquires from banks daily processes a vast volume of instructions, producing property valuation short form reports for mortgage financing purposes. In-house database of over 8,000 building brochures millions of transaction records. Swift value indications based on our market intelligence statistical observations. More than 4,000 valuation reports annually. Sectors Services Verbal indication Instructions for valuation report Property inspections Market research Office Industrial Residential Retail Comparables analysis Clients ABN Amro Bank Bank of China (Hong Kong) Bank of Communications Citibank Credit Suisse DBS Hang Seng Bank HSBC HSBC Private Bank The Bank of East Asia Stard Chartered Bank UBS AG Report preparation valuation reports are tailored to different banks internal procedures specific requirements. In addition to market value, we provide market value valuations with reference to specific assumptions conditions such as Value for Sale under Repossession Building Insurance Replacement Cost assessments upon request. For more information: Cliff Tse BSc (Hons), MRICS, FHKIS, RPS (GP) Director cliff.tse@ap.jll.com +852 2846 5557 10
L Integrated services across Asia Pacific paired with in-depth local expertise Services team has over 40 years of valuation advisory experience in the Asia Pacific Region. With our base in Greater China, the is our key focus, covering over 30 cities. The team has developed alongside the property market in the. With the increasing complexity of the property market, we keep abreast of prevailing market practices in the endeavour to be one step ahead of the market by exping our service coverage to meet with the future needs of our clients. centralised organisation provides you with a single point of contact to meet your valuation needs, enhancing your operational efficiency delivering cross-border consistency. We pair our extensive experience in managing coordinating regional assignments with an in-depth knowledge of the requirements, processes deliverables demed in individual local markets. With our extensive Asia Pacific network, our team provides regional valuation services to clients with real estate portfolios across the region. dedicated regional teams span three core regions Australasia, South East Asia North Asia with local presence across 15 locations in Asia Pacific. Services The Services team provides a range of valuation advisory services for local or overseas companies with investment properties or with interest to invest, locate or relocate into certain emerging markets. As an overseas consultant, we offer the following professional services: 15 locations in Asia Pacific Australia Hong Kong SAR India Indonesia Japan Korea Macau SAR Malaysia New Zeal Singapore Taiwan Thail The Philippines Vietnam s for financing fund raising Due diligence exercises Asset valuations for financial reporting s for public listing s for acquisitions disposals Advice on property assets for mergers acquisitions Development consultancy Feasibility studies 11
L Case Studies Client: A major Asian sovereign wealth fund with a portfolio comprising a mix of office, retail, industrial residential developments. Services Results Provided property valuation for over 100 properties across 10 locations including Australia,, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Taiwan Thail, for accounting internal reference purposes. Client: A leading property investment, management development group, owning managing approximately 5 million sf of prime commercial space in Hong Kong other properties across Asia. Services Results Business partner since 1970s. Provided ongoing valuation advisory services for over 30 years for properties located across Cambodia, China, Hong Kong, Indonesia, Singapore, Thail Vietnam. Provided a broad range of professional services, including periodic valuation, general property market overview, expert analyses independent valuation opinions. For more information: Rita Wong BBus, MRICS, MHKIS, AAPI, RPS (GP) International Director rita.wong@ap.jll.com +852 2846 5535 12
L Tailor-made solutions to your unique real estate needs We provide bespoke advice designed to help clients underst the context in which they operate, identify the challenges opportunities unique to their situation. This enables them to make fully-informed decisions in order to achieve specific goals that maximise the potential of their property. team comprises professionals with a range of property data analytical skills, financial expertise practical real estate experience. We deliver pragmatic strategic solutions based on our local market knowledge, with the ability to combine sound market financial analysis with the latest research proven practices. Services Development To conduct feasibility studies highest best use analysis, to form development strategies provide recommendations on project positioning design for property owners, developers investors. Asset Strategy Positioning To advise both llords occupiers across all real estate sectors in conducting strategic portfolio reviews market price rental analysis, to attain optimal results through short long term real estate strategy, occupation investment. Retail Working closely with retailers, property owners developers to enhance the performance of, add value to, an individual asset or their entire portfolio. We conduct demographical analysis, catchment competitor analysis, benchmarking, retailer shopper surveys to identify opportunities recommend on positioning, trade mix designing strategies. Research Research consultancy services to help you underst the market identify trends to support your real estate plans strategies. 13
L Case Studies Property: Proposed commercial development in Kowloon Bay Services: Provided market research to support acquisition decision recommendations on office retail space layouts, building design as well as marketing leasing strategies. Property: Major cultural district located in West Kowloon Services: Provided recommendations on suitable RDE size trade mix, considering the feasibililty, viability profitability of the proposal. Property: Commercial redevelopment project located in East Tsim Sha Tsui Services: Provided retail study including demographic trend, competitor analysis, retailers survey, recommendation for tenant mix rental forecast. Property: Commercial development located along Victoria Harbour in Central Services: Reviewed the financial viability operation models of the construction of an additional retail / commercial venue within the existing development. For more information: Jacqueline Wong BSc (Econ), MSc (RE), MHKIS, MRICS, RPS(GP) Associate Director jacquelinewt.wong@ap.jll.com +852 2846 5505 14
L ing seamless transactions at every stage of the real estate cycle Services play a key role in the successful timely execution of your property transactions, whether raising loans through banks or raising equity through capital markets. Potential buyers, sellers lenders appoint us during the due diligence process to assess property asset values thoroughly efficiently. Services Acquisition & Disposal To provide buyers sellers with insight on market values of property interests, comment on market conditions, appraise various value determinants identify the best option available to safeguard their assets.we partner with JLL s agency departments to arrange for disposal/acquisition of properties. Bank Financing & Loan Syndication To support banks loan syndicates in assessing the income potential value attributes of real estate assets. Provide tailor-made valuation reports to suit individual banks financial institutions requirements. Initial Public Offering & Privatisation To provide the credibility, knowledge valuation resources to assist you in stock exchange procedures including IPO, restructuring, notifiable transactions, privatisation funding. We liaise with sponsors professional teams for the preparation of listing documents, prospectuses, corporate circulars. Asset Backed Securitisation A pioneer market leader in this sector, having provided asset valuations for the first five, largest, securitisation deals in Hong Kong. The securitisation of rental cash flow creates a marketable investment in either single or multiple property interests. 15
L Case Studies Client: Fortune REIT Property: Kingswood Ginza Mall in Tin Shui Wai, Yuen Long, features a range of retail spaces, kindergartens, over 600 car parking spaces ancillary spaces, totalling a gross floor area of approximately 665,000 sf. Transaction: Transacted at HKD 5.84M in October 2013, this was the largest retail property transaction by size consideration in Hong Kong in 2013. Provided independent valuation to the client (purchaser) for the issuance of a circular under the listing requirements of the Hong Kong Stock Exchange Singapore Exchange Security Trading Limited for public disclosure purposes. Adopted a proprietary valuation model, enabling accurate data input efficient tenancy analysis. Provided to track major commercial transactions, performance of REITs other listed commercial llords, as well as rental performance patterns of major shopping centres commercial properties. Facilitated the completion of the acquisition. Client: A European pension fund managing pension assets of more than USD 453B as of end of June 2015. Transaction: Invested up to USD 650M for a 20% stake in a Chinese warehouse developer operator. As of the transaction date, the developer owned 16 operating assets across China with over 14 million sf of modern logistics facilities had an additional 7.5 million sf of GFA under development. Provided property valuations of the logistics property portfolio in various cities across for potential investment purposes. Client: A subsidiary of a North American institutional fund which, as of June 2015, held direct or indirect interests in over 160 million sf of office, retail logistics properties, more than 23,000 residential units, totalling over USD 36B in assets. Transaction: Significant partnership, via an approximately USD 920M capital raising, with a leading Shanghaifocused retail-anchored mixed-use projects developer, owner operator. Portfolio includes 4.6 million sf of retail commercial space in Shanghai, has 4.5 million sf under development in 2015. Facilitated the transaction by providing property valuations of the completed under-construction retail properties across various cities in for potential investment purposes. For more information: Rita Wong BBus, MRICS, MHKIS, AAPI, RPS (GP) International Director rita.wong@ap.jll.com +852 2846 5535 16
L Chun Kong Lau International Director Head of Services & REGIONAL ADVISORY - FOCUSED MORTGAGE ADVISORY HONG KONG ADVISORY STRATEGIC CONSULTING Rita Wong International Director Head Cliff Tse Director Head Dorothy Chow Director Head Jacqueline Wong Associate Director Head Alkan Au National Director Raymond Wong Local Director Eric Tsang Local Director Alex Mo Local Director Keith Lee Associate Director Ken Lam National Director Stephen Lin Local Director Perri Yu Local Director 17
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