Page 26 - Forterra

24 ANNUAL REPORT 2012
THE PROPERTY MANAGER
DEVELOPMENT MANAGEMENT
Development is an all embracing term, covering activities
from conception to physical realization of a project. This
process involves complex and detailed management
of people and physical resources and is the first and
foremost important step in delivering a quality building
and maximizing value for Unitholders.
Building commercial real estate, in particular large scale
mixed-use complexes in an emerging market such as
China, is a very specialized area and presents challenges,
which requires a solid understanding of local market
regulations as well as strong on-the-ground execution
experience.
At Forterra, our high calibre development management
team comprising 12 dedicated professionals with
enriched knowledge and proven track record in building
commercial real estate in China, supervise the entire
development process from design to pre-construction
and construction to ensure the timely delivery of project
without compromising quality.
The completion of Beijing Logistics Park, a 75,028 square
metres warehousing facility in April 2012 demonstrates
the strong development capability of the team. For the
year just gone (2012) and the year ahead (2013), the
focus of the team is to develop The HQ into a world
class retail/office development.
ASSET MANAGEMENT
Portfolio asset management embodies a comprehensive
and structured approach with a view to enhancing
the functions and value of a real estate portfolio. A
strategic overview is critical to success in addition to
an operational component, which seeks to achieve
optimum asset values and rationalization of outgoings
to deliver stable net returns for each individual asset.
Ultimately, the aim is to ensure consistent income
streams supported by a high quality tenant register
to increase the long-term viability of Forterra’s asset
portfolio.
In this context the relationship between Asset and
Leasing Management is critical, as the optimum tenancy
mix is the ultimate goal of all commercial real estate
landlords. On a broad basis this requires a unique
understanding of local market conditions, prevailing
conditions for the economy and various service sectors
to identify the drivers of underlying demand for
commercial real estate at any point in the cycle. Of equal
importance are the micro-level factors, which determine
leasing strategy, tenancy mix, length of leases and
flexibility within the asset to meet ongoing requirements
of individual tenants for expansion space to deal with
growth within individual businesses.
Therefore, whilst commercial properties in many
respects are homogeneous, each asset does have its
own characteristics and a particular life cycle that
benefits from a targeted asset management strategy.
COMMERCIAL LEASING MANAGEMENT
A strong tenant register, measured by reputation,
business longevity and strong financial capacity is one of
our key service deliverables across the entire portfolio.
This requires a strong knowledge of our tenants and an
understanding of their business requirements, so that
their suitability as a component of our ongoing asset
management strategy can be regularly assessed.
This is best achieved through an internal team that
builds relationships, understands the market and can
assess, solely for the benefit of the portfolio, and hence
Unitholders, the desirability of various tenants.