Brief Introduction of the Property Business of VSC Group

Transcription

1 Brief Introduction of the Property Business of VSC Group

2 Section 1: Brief Introduction of VSC Group and HSL China Metropolitan Fund I

3 VSC Group VSC is a public listed company in Hong Kong Stock Exchange. It has been established for over 50 years with its principal businesses in stocking and distribution of construction materials such as steel products, engineering plastics as well as building products. It has a strong business network with property developers in Asia. Bathroom and Kitchen Products Business of building products and design solutions Distribution and processing of steel and engineering plastics, provision of inventory management and logistics services Established a joint venture company, namely Bao Shung Chong, with Shanghai Bao Steel Group in VSC Group maintains a long-term relationship with various stakeholders, such as local government, major state-owned enterprises and reputed property developers

4 Asset Management Team of VSC Group The key members of the asset management team of VSC own over 20 years experience in property investment and management in China. Since the establishment of the asset management team in 2007, the team has built a robust track record in asset revitalization and optimization. Main Results: Acquired a vacant office building located in the heart of Jing an district in With excellent asset management in terms of good tenant mix plan and asset enhancement, more high-quality tenants moved in with increasing tax revenue generated to the local authority. This office building was finally attracted Mary Kay, a multi-national retailer, to acquire it in early Central Park (formerly CTS Tower ) in Putuo district was acquired by VSC at end of 2013 with a refurbishment plan to enhance the property image to a Grade A office building. Having achieved the remarkable results, the rental will be significantly increased from $3/day/sqm to around $6/day/sqm by the end of With extensive asset management experience, VSC has established a Property Fund - HSL China Metropolitan Fund I ( HSL Fund ). It mainly focuses on underperforming properties in Greater China located in a good locations with good potential in releasing their hidden value through asset revamp. In 2014, HSL Fund acquired Metropark Service Apartment in Shanghai with a enhancement plan in place to forge the building to be one of the iconic residential buildings in the district.

5 Key Member - Chairman Mr. Andrew Yao, JP Deputy of the 12 th National People s Congress of People s Republic of China MBA, Harvard Business School Bachelor, University of California-Berkeley Mr. Yao is the founder and chairman of Hongkong and Shanghai Land Corporation ( HSL ), Manager of HSL Fund, and also a director and leader of the General Partner. Mr. Yao is mainly responsible for the overall strategy of the Fund and provides guidance to the management team in developing plans to achieve goals. Accumulated 20 years experience in political and economic networks in Central and Shanghai, Mr. Yao established a large domestic/foreign customer base to seek the investment opportunities of the Fund. Mr. Yao is also the Chairman of VSC Group, a HK listed company founded in 1961 which is a leasing distributor of quality construction/industrial materials. Under his leadership, VSC established the Property Group in 2007 and has operated several project successfully. He is the standing committee member of All-China Youth Federation and Shanghai Committee of the Chinese People s Political Consultative Conference, vice chairman of Youth Federation of State-owned Enterprises and Shanghai youth Federation. He is also the board member of Fudan University and YK Pao School in Shanghai as well as Lingnan University in HK, and a member of Barristers Disciplinary Tribunal Panel of HKSAR Government. Mr. Yao is also the founder of the Young President Organization (YPO) Shanghai Chapter, former member of Harvard Business School International Alumni Board ( ) and former court member of The University of Hong Kong ( ). Mr. Yao awarded Young Industrialist Awards of Hong Kong in 2004 and the Justice of Peace by HKSAR in 2008.

6 Key Member - CEO and CIO of HSL Mr. Terence Chan CFA Charter-holder Qualified Surveyor, Royal Institution of Chartered Surveyor ( MRICS ) Master of Real Estate, University of Hong Kong PhD Candidate of Economics, Xiamen University Mr. Chan is the CEO, CIO and a member of the Investment Committee & the Board of Hongkong and Shanghai Land Corporation. He is responsible for the daily operation of the Fund, including capital raising, acquisition, disposition strategies as well as sourcing, underwriting, structuring and managing investment. He has brought significant property investment and real estate finance savvy to the firm, having been actively involved in over thirty real estate projects with a total valuation of over HKD10 billion in both China and Hong Kong, including the purchase and repositioning of the Hong Kong Courtyard by Marriott Hotel and acquisition of the Tianjin Hyatt Hotel. Mr. Chan also offered advice in VSC Property Group s successful acquisition of the CTS Tower and the disposal of the Point Jing an Building in Shanghai. Prior to joining HSL, Mr. Chan was a director at Grosvenor Fund Management where he was involved in property transactions of over HKD8.4 billion, including the acquisition of the Changfeng Parkside Plaza in Shanghai, and PCCW Tower in Hong Kong. He commenced his career in early 90s and served various management positions in highly regarded organizations, including Nan Fung Group, Lai Sun Group and Savills. He has over 20 years of experience in real estate investment, property development, project management, banking and capital markets, corporate finance/m&a and regional REIT originating. Mr. Chan is also the Standing Committee Member of Shanghai Youth Federation and member of the Shanghai Jing an District Committee of the Chinese People s Political Consultative Conference.

7 Key Member - Managing Director, Property of VSC Mr. Daniel Mak Registered Professional Surveyor (General Practice) Fellow Member, Royal Institution of Chartered Surveyor ( FRICS ) Fellow Member, Hong Kong Institute of Surveyors ( FHKIS ) Bachelor of Science in Estate Management, Reading University, United Kingdom Master of Science in Business Studies, University of Salford, United Kingdom Mr. Mak is responsible for the overall management and execution of strategic asset planning/enhancement initiatives and leasing & marketing services, including the commercial performance of the asset, tenants liaison & relationship management. He has brought substantial asset management capabilities to the Fund Manager. While assuming Head of Sales & Marketing in HK Housing Society since 2010, he has not only accomplished the property sales target of over HKD3 billion in the last two years, but also improved the annual rental of an office tower at Quarry Bay of HK by 40% in less than 24 months. He is a veteran in the property industry with over 35 years of experience in asset management, valuation, real estate development & investment as well as property sales & leasing. Prior to joining VSC, he held senior positions in reputed organizations, including the Hong Kong Housing Society Wharf Holdings, KCRC/MTR and Savills. He also actively managed and involved landmark projects, including Harbour City and Times Square in HK, and East Pacific Commercial Hub in Shenzhen. Mr. Mak held public offices and was formerly appointed by the HKSAR Government as Adjudicator in Person Tribunal and Panel Member in Disciplinary Board under the Land Survey Ordinance. Presently, he is also a director of the Hong Kong Chamber of Commerce (Shanghai) and the Overseas Alliance Association of Putuo District in Shanghai

8 Key Member Deputy CIO of HSL Mr. Kevin Cheng Member of Royal Institution of Chartered Surveyors Master of Commerce (Finance) The University of Sydney Bachelor of Science (Mathematics) University of New South Wales Mr. Cheng has extensive real estate fund management and asset management experience, having worked on portfolios in Australia, United States of America and China, and across different asset class such as retail, industrial and office. Mr. Cheng owns above 10 years experience in asset management, he was vice president with Macquarie Bank, managing two of their retail assets in Shanghai and Qingdao within Macquarie s Fund Management business. He was also responsible for operation of the assets, leasing and site operations management. Before this, he was the Asset Manager and General Manager for Parkside Plaza at Changfeng in Shanghai, under Grosvenor Vega China Retail Fund managed by Grosvenor Fund Management and mainly responsible for the operation of the assets and fund. He was also worked with Forterra Trust in their corporate finance team in China, also work with Brookfield Multiplex Capital, Mirvac Fund Management and FuturePlus (Superannuation/Pension Fund). Mr. Cheng is the vice president of Young Professional Alliance Financial Services, a director of Hong Kong and Shanghai Youth Federation and a director of the Overseas Alliance Association of Putuo District in Shanghai.

9 Section 2: Case Study - Asset Management

10 Central Park (formerly CTS Tower ) Details of the Building Gross Area of Construction: Asset Management: Management Goal: Status: Around 36, sq.m Office :4-27F 26, sq.m Shops :1-3F 4, sq.m Carpark:151 spaces 4, sq.m Enhance the building image through renovation and good tenant mix. Increase the rental income by optimizing tenant mix to capture high capital value of the building To upgrade the building as a Grade A office building in the locality To enhance the property image through property revamp and good asset management To capture capital growth by increasing the rental income More branded tenants such as Starbucks, Shanghai Bank, NOVO, Sincere, CASH, China Travel Service, etc. The renovation of main lift lobby and its building façade have been completed. The building s square is under renovation and is expected to complete soon.

11 Before and After Renovation Main Building Lift Lobby Before renovation After renovation

12 Before and After Renovation External Facade and Square Before renovation After renovation

13 After Renovation Conceptual night view of the Square

14 After Renovation - Office on 23 rd Floor

15 Metropark Service Apartment Project name Area Status Gross Area of Construction No. of Floor Facility Metropark Service Apartment 4,668 sq. m Service Apartment Area :4-28/F 18, sqm 1-3/F 4, sqm 23, sqm Club House (Will s) sqm 29 Floors Da Marco (Italian Restaurant), Tang Palace Chinese Seafood Restaurant, Gao Mu Japanese Restaurant, Taiji & Eri, Gang Gang SuLae ( Korean Restaurant), Will s, Wei Pu Ju Dao Foot Massage and Stefano Bulantini

16 Renovation Design Concept 现代 Stylish/ Contemporary 奢华 Luxury 精品 Boutique 优雅 Elegant 绿色 Greenery 环保 Environmental

17 Building Facade Renovation Building Facade Main Lobby

18 Flat roof and balcony renovation concept Before renovation

19 Proposed Flat Mix Now 1 Unit=92m 2 1 Bedroom +1 Study 1 Bedroom 2 Unit=184m 2

20 Interior Design for residential units Before renovation After renovation modern, simple, stylish, comfortable

21 Feature Unit Design (Duplex)