Thursday, June 26, 2008

83 per cent of Multi-Nationals in Asia Pacific Increasing or Maintaining Growth Plans in 2008

Jones Lang LaSalle Survey: 83 per cent of Multi-Nationals in Asia Pacific Increasing or Maintaining Growth Plans in 2008 India, China and Vietnam Remain the Top Three Destinations

India, 24 June 2008 – According to a Jones Lang LaSalle survey released today, 83 per cent of multi-national companies polled said that they will increase or maintain current growth plans in Asia Pacific. In fact, 28 per cent are responding to the gloomy global economic situation by looking to accelerate the growth of their operations in the region.

Jones Lang LaSalle’s survey also shows that India, China and Vietnam remained the top destinations for company growth plans in the region in 2008.

The report highlights that there are some key evolutionary changes occurring in the region’s economies, as individual nations continue to mature and attract higher value operations. These changes have a long-term impact on demand in the local property markets. For instance, in India, China and Vietnam, rising middle class incomes are driving growth for more banking retail outlets. Furthermore, China and India, once known for their low cost workforces, are, in some cases, losing factory jobs to other countries, but still enjoying significant net growth, as their increasing per capita incomes and advancing skills are attracting increasingly sophisticated activities.

Jones Lang LaSalle’s CEO of Regional Business Lines and Corporate Solutions, John Forrest, says that the survey shows how business in Asia remains less affected by the sub-prime crisis. “As the leading supplier of real estate services to corporations in Asia Pacific, we are still seeing strong demand for space. However, an uncertain economic environment is forcing corporations to find smarter ways to manage their growth. For example, many are outsourcing the management of their real estate or re-designing current office space to be more efficient.”

Jones Lang LaSalle, a professional services firm specializing in real estate, conducted a survey of 30 senior corporate real estate executives from leading multinational companies active in Asia Pacific in the second quarter of 2008. Findings from the survey are presented in the firm’s research paper, Gauging Demand, which focuses on how occupier demand for office and industrial space in Asia Pacific is being affected by global economic turmoil.

Strategies Differ by Industry Sector
Three sectors were surveyed, Financial Services, Technology and Manufacturing/Consumer Goods. Of the three, Financial Services predicts the most aggressive growth in 2008, with 44 per cent having added more growth to their original plans in the first quarter of the year, and 33 per cent predicting further growth by the end of the year. Even though this sector is showing the most aggressive growth of the three sectors some companies remain cautious with 44 per cent expecting to scale back in 2008. This is, in part, a reflection of the differing degree of exposure to sub-prime suffered by the banks – some emerged unscathed while others faced huge write-downs.

Where 44 per cent of Financial Services companies are expecting to scale back during the year, it is Manufacturing/Consumer Goods companies that are showing the most mixed response. The companies polled were split evenly, with a third looking to further expand their growth plans, a third to scale back and a third expects no change to current plans. Companies in this sector are also more likely to shift operations into or within the region, as they look for fresh markets and lower-cost destinations.

The most consistent of the three sectors is Technology. On average the majority, 83 per cent, are ramping up or maintaining current growth plans in the region in 2008 in response to the current economic climate. The reason cited by those surveyed lies in the search for greater revenues driven by the migration of their client base to Asia Pacific. Even though there are growth plans, cost containment remains a key driver for their real estate strategy.

Jones Lang LaSalle Meghraj India CEO, Vincent Lottefier, says "Different industry sectors are responding to the economic environment in markedly different ways, with traits that have significant implications for the markets in which they are major players. India still remains overwhelmingly the focal points of most new growth, easily outpacing the rest of the field."
Forrest comments that, “Even the financial sector, which has been the hardest hit in other regions, is not contracting on an overall basis. Emerging markets in Asia really are the world’s bright spot for growth at the moment.”

Wednesday, June 18, 2008


by Anuj Puri, Chairman & Country Head, Jones Lang Lasalle Meghraj:

In India, as in other parts of the world, the vigour of the economy is mirrored in the demand for and prices of real estate. Reserve bank of India has estimated that the real estate sector represents approximately 5% of GDP, being the second largest employer in the nation. Real estate can thus provide a glimpse into the marketability of a state.

To my reckoning, Maharashtra represents in this regard a unique market model – it is an amalgam of high business and, as a result, intense residential and commercial real estate activity. In fact, its operative trends are so firmly entrenched that we have not witnessed any significant slackening in overall activity despite the economic pressures affecting many other Indian states. However, there is no denying that there has been an impact. The cities of Mumbai, Pune and Nasik would serve as suitable illustrators for the current scenario.

In Mumbai, affordable housing has become an elusive dream. Skyrocketing rate appreciation brought on by the continuing demand-supply mismatch has boosted residential home prices almost completely out of the reach of the common man. It is definitely not an investor's market right now, owing to the generalized slowdown. Prices are stagnating and there may be a correction in certain locations over the next twelve months. Of course, factors like specific location sector and property typology will play a role. End users are advised to study property trends before buying a home for genuine self-use. It is possible that the area they have chosen to buy into may see a drop in rates over the next six months to a year. Meanwhile, Navi Mumbai – the new growth sector – offers options both for those seeking affordable homes and those who seek investment opportunities.

Pune benefited for a considerable period from Mumbai’s unrealistic. The recession in the American markets has weakened the commercial and residential markets. The slump in the stock market has caused investors to start moving out. Second home buyers are keeping away and end users are cautious in their buying, awaiting price corrections. Despite the generalized slowdown, developers continue to have holding capacity and there continues to be demand for mid-segment homes, 80% of which is Pune is driven by software professionals and recently relocated manufacturing sector executives. The highest demand is in and around Hinjewadi, Kharadi, Magarpatta, in and around SP Infocity and in and around Phursungi and Hadapsar.

Nasik, whose residential market grew at a rather leisurely pace until about 2006, suddenly began showing significant annual appreciation rates from the beginning of last year. Nasik had begun emerging as a realistic alternative destination for buyers who were discouraged by Mumbai and Pune’s high rates. It offered low entry costs and, at the same time, reasonably attractive appreciation rates. Another reason was the increasing presence of the IT/ITES sector there. In recent times, Nasik has been witnessing rather healthy appreciation rates; because of its relatively late entry into the real estate stakes, it was insulated from the regressive dynamics currently prevalent in the rest of Maharashtra.

Despite the slowdown, Maharashtra remains one of the foremost contenders in the real estate sweepstakes. All sectors – residential, commercial, retail, industrial and hospitality –continue to show an upward curve in the long term.

Friday, June 6, 2008

Initial Public Offering (Offer closes at 5 PM today 6 June 2008)

Initial Public Offering (Offer closes at 5 PM today 6 June 2008) - Indiabulls Properties Investment Trust - only the second Singapore property trust to offer exposure to India

Indiabulls Real Estate, part of diversified Indiabulls group with interests in financial services, power, retail and realty businesses, last week filed a prospectus with Monetary Authority of Singapore for an initial public offer of IPIT, estimated to raise about $300 million.
IPIT is a business trust registered under the laws of Singapore and is making an offer of its units to public and institutional investors and the IPO is expected to be priced towards the end of the month.
An investment arm of NRI billionaire Lakshmi Mittal family has already agreed to purchase 91 million shares in the trust at the IPO price, amounting to a 3.9 per cent stake

Key features:
· 262.5 million common units (subject to over allotment option)
· Sing$1.00 to Sing$1.10
· Offering is for 353.5 million shares
· Lead Managers Deutsche Bank and Merrill Lynch
· DPU of 5.12 cents per unit in forecast year 2009 and 9.82 cents per unit in the projection year 2010. This will signify increase of 92% in the dividend yield.
· Applicants may use cash only
· Applications can be made through DBS Bank (including POSB), OCBC or UOB Group
ATMs, internet banking websites of DBS Bank and UOB Bank or on printed application forms which form part of the Prospectus.
A copy of the prospectus is available on the SGX-ST website:
IBREL is offering to sell about 353.5 million shares of IPIT in a price band of 1.0-1.1 Singapore dollar each, and in the projected price range, the IPO could mop up SGD 353-389 million (USD 259-286 million) for the company.

As per the time table for the IPO filed with the Singapore Stock Exchange that the price would be fixed today end after the offer closes at 5 PM and shares would commence trading on June 11

Key Investment Highlights
1. Premier office space trust offering exposure to the booming Indian economy and to the rapidly growing services sectors
2. Unique opportunity to invest in strategic Mumbai market, India’s premier commercial centre
3. Exposure to prime initial portfolio built and managed to international standards which will attract a quality tenant base
4. Strong growth model combining high organic growth potential and the Trustee-Manager’s three pronged acquisition strategy
5. Strong sponsorship and commitment from Indiabulls
6. Sponsor’s alignment of interest with that of Unitholders
7. Stable and growing distributions
Conclusion: This is the second Singapore property trust to offer exposure to India. The return on the investment ie Dividend yield of 9.82 % in 2010 and increasing thereafter is excellent. There is strong sponsorship and commitment from Indiabulls group which is the fourth largest real estate group in India by market capitalization.

The ROFR on the other properties of Indiabulls will provide an excellent return to the investors. So don’t miss this opportunity as today is the last day and the offer closes at 5 PM. Incase you need any further details, you can contact us at

Thursday, June 5, 2008

Jones Lang LaSalle Named to 2008’s “World’s Most Ethical Companies” List by the Ethisphere Institute at The Forbes, Ethisphere Joint-Conference

CHICAGO, 5 June 2008 – Jones Lang LaSalle Incorporated (NYSE: JLL) today reported that it has been named to The Ethisphere Institute’s second-annual World’s Most Ethical Companies list. Ethisphere, a think-tank dedicated to the research and promotion of profitable best practices in global governance, business ethics, compliance and corporate responsibility, announced the award at the Ethisphere and Forbes joint-conference, “Driving Profit through Ethical Leadership,” held on June 3rd. The list of World’s Most Ethical companies will also be featured in the Q2 issue of Ethisphere Magazine.

“We are very proud of this award,” says Colin Dyer, Chief Executive Officer of Jones Lang LaSalle. “It reflects the significant effort we make through our Ethics Everywhere(sm) Program to act with integrity in everything we do. Our clients, employees and shareholders expect and deserve nothing less.”

Researchers and analysts from The Ethisphere Institute reviewed several thousand companies in order to determine the finalists, which included a rigorous, multi-step evaluation process. The 2008 World’s Most Ethical Companies methodology committee is comprised of leading attorneys and government officials, professors and leaders who care about ethical and honest business practices.

“We applaud Jones Lang LaSalle, which is among the companies honored this year because they have developed impressive and meaningful ethical business practices, making them true standouts within their industries.” says Alexander Brigham, executive director of Ethisphere Institute. “They go well beyond legal minimums, opting instead to bring about innovative ideas that contribute to the public well being. By their actions, they are forcing their competitors to follow suit, or fall behind and truly embodying the notion that ethical business practices are more profitable.”

The extensive research process included reviewing over 10,000 of the world’s leading companies on six continents. Ethisphere analysts reviewed codes of ethics, litigation and regulatory infraction histories; evaluated investment in innovation and sustainable business practices; looked at companies’ activities to improve corporate citizenship; studied nominations from senior executives, industry peers, suppliers and customers; and worked with consumer action groups for feedback and rating.

The day-long conference, which featured Forbes editors and executives from world-renowned corporations, universities and ethics organizations, focused on ethical culture and leadership and highlighted companies’ experiences and ethical challenges, provided advice on preparing for ethical dilemmas and gave viewpoints from an investor’s perspective. The conference culminated with recognizing Ethisphere Magazine’s 2008 World’s Most Ethical Companies at an evening awards dinner.

About Ethisphere Institute

The research-based Ethisphere Institute and associated membership group, the Ethisphere Council, are supported by more than 100 institutions and corporations, including Thomson West, the Practising Law Institute, the National Association of Corporate Directors, the Global Reporting Initiative, Corpedia and dozens of others. The Institute is dedicated to the research, creation, and sharing of best practices in ethics, compliance, and corporate governance among its membership companies. It also focuses on the development and advancement of individuals on its membership council through increased efficiency, innovation, tools, mentoring, advice, and unique career opportunities. Ethisphere Magazine is the quarterly publication of the Institute. More information on membership can be found at

The Ethisphere Institute publishes the globally-recognized annual World Most Ethical Companies Ranking™ as well as the Government Contractor Ethics Program Ranking™ and the upcoming Global Anti-Corruption Quotient.