Savills International Development Consultancy Providing a bespoke fully-integrated service from site identification through to product delivery 1 Savills International Development Consultancy services play a vital role in the development process Oleg Korol Managing Director Metropol Development Contents 02 01 Savills Savills Background & Business 02 Our Services 03 08 07 Development Consultancy 04 Development & Resort Management 07 The Development Services Process 04 Development Investment Consultancy 07 06 Development Management Feasibility Studies 10 16 10 Global Marketing & Sales advice 18 20-21 13 19 Savills Global Professional Partners 22 Savills Global Presence 24-25 14 Selection of Hotel & Resort Case Studies Development Funding 12 Professional Partners The Core Team 12 Development Funding 11 The Core Team Development Management 09 Marketing & Sales Consultancy Development Valuations 06 Group Structure 08 Development Valuations 2 Development Services Feasibility Studies The Development Process Case Studies International Development Consultancy 05 04 Development Process 03 Selection of Major Urban Case Studies 26-29 Case Studies 31 01 01 Savills Savills experience and relationships in the hospitality sector enables us to consult and secure leading branded operators Savills Background & Business Savills is one of the world’s leading property advisers, comprising outstanding individuals, who have real expertise and passion for what they do. This powerful combination also allows us to deliver continued growth. Founded in 1851, Savills has a rich heritage. It is listed on the London Stock Exchange and has over 600 offices and associates worldwide, employing over 27,000 staff. Savills has been ranked the best Business Superbrand in the real estate sector by the Centre for Brand Analysis for the past 4 years and the Savills name is synonymous with luxury property. No matter how large or small the project we provide the same quality of service, which is intended to exceed your aspirations of quality and delivery. Our objective in providing development, advice, whether it be on an integrated resort or an urban regeneration project, is to help you create a world-class destination that will be achievable and financially successful. Our approach is to provide uncompromising attention to detail and robust development management, taking on responsibility and driving the project to meet your aims. To achieve this, every project is managed by an experienced director who will remain with the project from inception to completion and will be available for any follow-ups. All of our team members are passionate about creating residential developments, hotels and resorts that meet international criteria and can be successfully marketed. The hallmark of Savills service is our proven track record of integrating the knowledge of the market-facing sales teams with the expertise of the technically minded development consultancy and development management teams to achieve the best commercial outcomes. Our values encompass: > Robust leadership and management > Constant clear communication > Pioneering with experience Our Services From site identification through to product delivery, Savills International Development Consultancy provides a bespoke and fully-integrated service. The whole process is driven by innovative, top quality research tailored to your individual needs. We also have departments that deal with specialised areas such as new homes development, leisure and hotels, institutional property, offices, retail and planning, as well as residential development and investment. Opposite > La Reserva Golf Course, Sotogrande, Spain Savills role: Valuation, Development Consultancy, Sales Agency. 02 03 02 International Residential, Hotel & Resort Consultancy “Working with Savills is always a positive experience for us. Not only do they work on some of the most interesting resort developments across the globe, but the calibre of their staff guarantees that any project, from inception through to delivery, is in truly expert hands. Their wealth of experience minimises risks to a developer and the value of their consultancy services substantially outweighs the upfront cost. In short they are a winning team to have on your side, especially in such challenging and competitive markets.” Chris Graham Managing Director Graham Associates Adding Value & Reducing Development Risk The Savills International Development Consultancy team led from the company’s London headquaters has unrivalled experience with large-scale residential, hotel, marina, golf, mixed-use and integrated resort master-planned communities. Understanding the Buyer We have an unrivalled understanding of global property demand dynamics. Our knowledge of target buyer markets, in terms of nationality, product and design preferences, purchase motivations and budget, means we can advise on all aspects of the development process, whilst taking into account how the product will be brought to the market and the developer’s optimum exit strategy. This will contribute to ensuring successful sales levels and consequently higher investment returns. Building a Lifestyle Taking into account end-users’ preferences, we can advise on the type, mix and location of the residential component of the development, as well as its relation to adjoining land-uses, and how it should be orientated according to aspect and topography from a demand perspective. supporting amenities, facilities and services, whilst also considering environmental social infrastructure requirements such as schools, commercial premises, hospitals, community centres or sports facilities. In larger residential communities, this would also include environmental as well as social infrastructure, for example renewable energy initiatives, locally sourced labour and materials, and local environmental conservation. The development concept and community density is reflected not only in the ‘placemaking’ design of the physical space, but also in the market positioning and perception of the operating brand. Savills experience in the hospitality sector enables us to consult and secure leading branded operators on commercial terms. Maximising Returns All of these factors must be considered in order to maximise the efficiency and value return from the project. The more desirable the on-site lifestyle is perceived to be, the higher the value of the residential real estate, hotel daily rates and length of stay and subsequently the return on investment. Therefore, our advice is focused on drawing in buyers and guests to invest in wellplanned, intelligently designed and socially responsible communities, thereby ensuring the long-term commercial viability of the entire development. Through a comprehensive feasibility exercise, we can also advise on the optimum hotel type, brand, number of keys and size for the site, incorporating it with the other scheme components to maximise value. Corresponding to residents’ and guests’ needs, we provide consulting services throughout the development process, on 04 Opposite > Sveti Marko Island, Montenegro Savills Role: Development Management. 05 03 The whole process is driven by innovative, top quality research tailored to your individual needs Development Services Development Consultancy The International Development Consultancy team work handin-hand with other Savills teams across the globe and have a combined unrivalled experience at every stage in the development process Our services are structured to assist clients across the following areas: Market Research Project Feasibility Analysis > Site assessment and analysis, including advice on land assembly and acquisition > Creation of project concept and marketing strategy > Development options viability (unit mix, size, target market, phasing, absorption and pricing) > Development appraisals (DCF, IRR and NPV analysis) > Knowledge of global residential and tourism demand characteristics Formal Valuations > In-depth local market research, specific to the project concept and positioning > Informal and formal Red Book valuations (with professional indemnity insurance cover) for: > Analysis including demand and supply dynamics (product, pricing, buyer markets, buying motivation) and a review of the local market development context (economic and tourism profile) with impact assessment for project and recommendations on the development mix and programme. > Review and analysis of existing and pipeline hotel stock, occupancy levels, rentals, daily rates and recent sales. - Loan security - Accounting - Dispute resolution Development Investment Consultancy Resort Management Hotels/Facility/ Resort Consultancy > Co-ordination of project team, acting as client representative > Sourcing of hotel operators > Concept value engineering and value management > Development business plan, deal structuring, consultancy on joint venture and exit strategies > Coordinate all aspects of resort security, facility management, property management > Preparation of project investment briefs > Coordinate all destination marketing > Negotiations with hotel operators > Letter of intent and Management Contract negotiation assistance > Sustainable development solutions > Budgeting and control > Advice on resort and facilities management > Quality monitoring and progress reports to client > Commissioning and handover > Value and risk management > Performance audit of existing hotels and resorts > Secure planning approval and managing of PR process Preparation of Project Design Briefs > Co-ordination and management of Strategic Environmental Assessments and Environmental Impact Assesments > Preparation of Project Vision and full Project Brief > Approach to potential equity investors and lenders > Project debt advisory (structuring, arranging, refinancing of existing loans) > Development equity fundraising (institutional, private and sovereign wealth) > Management of Marketing and Sales process > Tendering and assembly of core project and design team (master architect, cost consultant, construction manager, engineers) Hotels Feasibility/ Strategic Advice > Identification and alignment of project parameters with target markets > Tailored asset and portfolio advice covering development services, sensitivity analyses and bespoke operational and restricting review > Inform the efficiency and profitability of the scheme design through master planning, land use, product mix, product sizing, pricing, phasing and delivery recommendations > Market and property reports for development proposals, viability studies, market analysis and planning support 06 Development Management > Ensure a socially responsible and environmentally conscious development ethos 07 04 The Development Process “Savills Development always deliver and their advice and consultancy has proved to be invaluable at each stage of the project. From well-researched and considered market advice to expert design consultancy and the fulfilment of last minute requests for reports, they always deliver on time and on point. The team are extremely professional yet hugely enjoyable to work with.” Nikki Gibbard Helical Bar The Development Process & Savills Services Stages Site Identification Strategic Land Sourcing Options/Joint Ventures Research Place Making Land Sales/Acquisitions Vision & Viability Planning Consultancy Development Management Valuations Sustainability & Energy Design & Planning Marketing & Sales Consultancy Development Consultancy Environmental Assessment Hotel Operator Search Planning Permission Project Management Delivery Commercial Leasing Commercial Investment Property Funds JV/Funding New Homes Sales Sales & Leasing Residential Investment Property Management Product Product Appraisals/Modelling Value Enhancement Value Enhancement Urban Design/Master Planning 08 Services Sourcing Sourcing Services Image > Chedi Hotel, Muscat, Oman. 09 05 We are able to bring a truly global approach to our market review, thereby reducing risk and adding value Feasibility Studies Financial viability analysis Development strategy Finally, but crucially, we prepare an expert appraisal (either indicative or RICS formal valuation) of the value of the project and the site. This will generate a Gross Development Value – being the aggregate of the sales and capitalised income/ sales of the commercial elements of the scheme, as well as a residual valuation to determine the land value of the site assuming the ‘recommended’ scheme. On the basis of the consultancy report, it is important to work daily with all of the retained project team to produce a development strategy plan including programme timing, recommendations for additional expert advice and analysis of the likely funding requirements. We work closely with any appointed quantity surveyors, architects, engineers and construction managers. The first step when assessing a site and beginning the consultancy service is to produce a comprehensive feasibility report, covering: Site review Conducting a detailed review of the surrounding area, including a comprehensive review of the locality and adjacent land uses. This will also include research into the style, standards, sizes, specifications, prices, rates and occupancy levels of the existing and forecast residential and hotel stock. Opposite > Sotogrande Resort, Spain Market review Target market analysis The next element is the analysis of the national and regional market conditions and recent local market transactions. This stage is crucial in establishing the current demand profile for new build schemes, focusing on pricing thresholds and understanding market performance and competition (existing and pipeline). With the combination of our international research teams and our local office’s knowledge of key schemes and transactional evidence, we are able to bring a truly global approach to our market review, thereby reducing risk and adding value. Comparable research is also done into other sites with similar characteristics in different countries, many of which Savills have been involved in, to apply lessons learnt from the ‘best in class’ globally. Once we have established the range of values that are achievable and the pricing dynamics in the area, we are able to analyse the socio-economic profile of the target purchasers for the scheme, including: As part of the development process we test the appropriateness of the proposed commercial uses to accompany the residential uses ie. a traditional hotel operation versus a serviced apartment scheme, as well as the types of retail/ leisure uses that should accompany such a development. A detailed tourist and operator analysis would accompany this process to ensure value is maximised from the outset. We would look to identify the likely demand, and from which class of operators they originate. Alternatively, if you do not yet have a design team appointed, we can work with you to write the project and design briefs and manage the project team tender on your behalf, to ensure the appointment of not only best in class but also those most suited to your particular project. > International purchaser profile > It is important to establish from the outset where external investment is coming from and what type and specification of product these purchasers desire > The specific pricing thresholds of residential sales for particular nationalities identified > Preferred sizes, specification and amenities > Preparation of 10 year hotel accounts to include market penetration, occupancy and average room rate. > Review of proposed hotel operator and brand awareness analysis Using the results of the analysis, we work closely with masterplanners and architects. This provides a set of clear guidelines for the optimal unit sizing, mix, specification and pricing of the residential element of the scheme, in turn informing the product development. Savills Role: Development Consultancy, Valuations, Sales. 10 11 06 “Thanks to our collaboration with Savills, a balanced concept and resort design was developed for the Sveti Marko Island resort in Montenegro. Their advice helped us avoid many of the common mistakes which developers can make in the volume of construction, unit designs, and overall integration of the various use classes. Due to their professional approach, management of the development and leadership of the project team, we gained a truly international perspective, minimised the development risk, and saved millions of Euros of project cost.” Development Management Oleg Korol Managing Director Metropol Development A development manager role is effectively as a surrogate client providing an interface between the client and the project manager, acting within the confines of client instructions. Savills has unparalleled experience of undertaking development management roles on resort schemes and believes that this service will successfully drive the project, particularly through the critical early stages of decision making and ensuring financial viability. This role encompasses all phases and aspects of the development cycle from identifying a development opportunity, site selection, technical and financial modelling/appraisals, through to planning, project team selection, design and construction, as well as leasing, sales and marketing. Our focus on every project is value enhancement, risk mitigation and delivery of the highest-quality development product. Accordingly, the development management role that Savills provides encompasses technical consultancy services (such as due diligence, technical appraisals, feasibility studies and development monitoring) to all other internal-development-related disciplines and the myriad of external advisors who are an integral part of the development process. The strength of Savills development management derives from the depth and breadth of advice we are able to offer our clients as a complete packaged service. We achieve this by bringing extensive development-related skills, knowledge and expertise to each and every project. Opposite > Sveti Marko Island Montenegro Savills Role: Development Management. 12 13 Savills is the only one of the major real estate firms to have a dedicated resort advisory capability Image > Sotogrande Resort, Spain Savills Role: Development Consultancy, Valuations, Sales Agency. 14 15 07 Development Valuations Savills International Consultancy provides formal valuations and consultancy reports for properties across the globe on behalf of a wide range of clients and purposes. Our team of qualified RICS Registered Valuers works directly with a network of over 500 Savills offices and Associate offices around the world to provide the most up to date valuation advice in almost any market globally. The team can provide formal and informal valuation advice for a diverse range of purposes, including: > Loan Security – Valuations in support of the provision of debt finance or mortgage facilities, usually provided for banks and other lending institutions. > Expert Witness/Matrimonial – Formal valuation advice, as third party independent valuers, in matrimonial proceedings or other disputes relating to a shared asset value. valuations or informal development appraisals, aimed at calculating the Gross Development Value as well as a residual land valuation of the development in question. > Regulated Purpose Valuations - For inclusion in financial statements and for accounts purposes, where valuations may be relied upon by third parties. Formal valuations, in line with RICS Valuation Professional Standards and Internal Valuation Standards, can be undertaken in relation to residential properties such as villas, apartments, farmhouses and chalets as well as larger-scale mixed-use developments, golf courses, hotels & resorts. > Development Valuations – These can be either formal (Red Book) Opposite > One Hyde Park, Mandarin Oriental Residences, London Savills Role: Marketing & Sales. 16 17 08 09 Marketing Strategy, Sales Advice & Expertise Mounting and developing quality lead generation through data bases, PR, advertising, the web, exhibitions, signage and any sources that we see suitable. Sales absorption rates depend on the supply of quality leads generated by the marketing. ‘Lead-to-sale’ conversion rates tend to vary from 2% and 5% and the gestation period from 2 – 6 months according to the location, type and price of the property being sold. Likewise the cost-per-lead and cost-per-sale. Savills Funding & Development team matches capital with opportunity in the residential investment and development sectors. Following on from the generation of leads we endeavour to obtain the best sales values that the market presents. Our methods include: > Use of a PLT (Price, Location and Time) matrix pricing approach which incorporates financial models to calculate income and phasing for larger scale developments Our knowledge and exposure to the global equity and debt markets, coupled with our access to the residential development supply pipeline enables us to provide bespoke expertise to developers, sovereign wealth funds, banks, pension funds, opportunistic funds, and propcos seeking innovative debt and equity solutions. > Brochure design and advice to ensure bespoke proposals to the correct market > Creation of sales models and contracts The methods include: > Designing and running of sales offices > Identification of the optimal route to the market > Selecting expert personnel to run and act as salespeople in the on-site office > Marketing strategy focussing on target markets, timing marketing materials and PR > Coordination of Global PR strategy and delivery > Marketing budget control and estimation Development Funding 1. Capital raising – Provision of debt or equity brokerage and arrangement of new joint ventures on a project or platform basis. 2. Forward commitment – Securing forward purchaseor forward funding for developments, or blocks within larger developments. 3. Advisory – Our knowledge and expertise within the sector enables us to provide advice to developers seeking to deliver the most appropriate product and development strategy. These business streams often incorporate the Private Rented Sector solutions, given the current financial and political support for the sector. The Funding and Development team have been influential in advising public bodies on the sector and have advised on over £1.5bn of PRS transactions in the UK alone in the past 18 months. Closely integrated with our Residential Development Services and International Investment teams, we provide three business streams that facilitate the delivery of residential development: Digital publishing for savills > Website design advice and web marketing strategy > Brand building > Road show advice and exposition design Converting or producing new digital versions of our portfolio of publications will allow a greater reach for our market coverage. Savills publications can be converted and adjusted for viewing on all the major tablet devices on the market Targeting thousands of potential new prospective buyers Content can be analysed using the built in analytics software allowing us to adopt a content strategy Brand integrity will be maintained and possibly enhanced as we embrace new technology Competitors may be forced to follow our lead Below > Porto Montenegro, Montenegro Savills Role: Development Consultancy, Marketing & Sales. page 7 18 19 10 The Core Global Team Core Global Contacts Asia Pacific Daniel von Barloewen Charles Weston-Baker Riyan Itani Olga Turner Chris Marriott Nathalia Wilson Ben Hopkins Robert McKellar Associate Director Head of International Development Consultancy dl: +44 (0) 20 7016 3812 e: dvonbarloewen@savills.com Director Head of International Residential Agency dl: +44 (0) 20 7016 3741 e: cwbaker@savills.com Associate Director International Development Consultancy dl: +44 (0) 20 7016 3759 e: ritani@savills.com Surveyor International Development Consultancy dl: +44 (0) 20 7016 3797 e: oturner@savills.com CEO South East Asia dl: +65 6415 3888 e: cjmarriott@savills.com.sg Director South East Asia dl: +65 6415 3589 e: nwilson@savills.com.sg Director - Development & Project Management Savills South East Asia dl: +65 6415 3657 e: bhopkins@savills.com.sg CEO Savills Asia Pacific dl: +82-2-2124-4201 e: rmckellar@savills.com.hk Europe, Middle East & Africa USA & Mexico Borja Sierra Sean Monie Tim Stoyle Marc Magazine Tom Baker Javier Kutz Clever Director CEO, Savills Europe dl: +44 (0) 20 7409 9937 e: bsierra@savills.com Director Development & Project Management dl: +44 (0) 207 409 8984 e: smonie@savills.com Director Head of Hotel Valuation & Consultancy dl: +44 (0) 20 7409 8842 e: tstoyle@savills.com Managing Director Hospitality Savills USA dl: +301 908 2357 e: mmagazine@savills.com Managing Director Hospitality Savills USA dl: +1 571 282 2801 e: tbaker@savills.com Managing Director Head of Savills Mexico dl: +52 (55) 5282 0926 e: jkutz@savills.com 20 21 11 Professional Partners As a result of the quality and scale of the projects on which we are involved, we frequently work alongside a number of other global firms, all leaders in their fields. A non-exhaustive list of such firms includes: A non-exhaustive list of the global Hotel Operators with whom we have longstanding relationships includes: > Arup > Fairmont Raffles Hotels International Hotels & Resorts > Halcrow > Bovis Lend Lease > Mace > Davis Langdon > Gleeds > Harper Downie > Gardiner & Theobald > EC Harris > HVS Global Hospitality Services > PKF International > Hotel Partners Africa > Woods Bagot > WAT&G > EDSA > Foster + Partners > ReardonSmith Architect > PRP Architects > Aman Resorts > Hyatt Hotels Corporation > Jumeirah Group > Mandarin Oriental Hotel Group > Banyan Tree Holdings > Six Senses Hotels Resorts Spas > Hilton > Starwood Hotels and Resorts > Marriott International > Taj Hotels Resorts and Palaces > InterContinental Hotels and Resorts > Carlson Rezidor Hotel Group > Accor > Kempinski Hotels > Meliá Hotels International > Mövenpick Hotels and Resorts > Four Seasons Hotels > Radisson Hotels > RMJM > HOK > Hirsch Bedner & Associates (HBA) > Interior Design Consultants > Space Syntax Opposite > Sanya Resort, Hainan Island, China. 22 23 12 Savills Global Presence UK 105 OFFICES & ASSOCIATES Over 600 offices and associates worldwide Through our extensive network we can support clients globally. A recognised brand providing multi-discipline quality assurances. We take the time to understand clients’ needs to ensure they receive the same consistent high standards wherever they are in the world. UK Europe Middle East & Africa England Austria Bahrain Ireland Belgium Kenya Jersey Croatia Mauritius Northern Finland Mozambique Ireland France Namibia Scotland Germany Oman Wales Gibraltar Qatar Greece Seychelles Italy South Africa Australia Luxembourg Zambia China Monaco Zimbabwe Hong Kong Montenegro India Netherlands Indonesia Norway Mexico Japan Poland Panama Macau Portugal US Malaysia Russia Myanmar Spain New Zealand Serbia Antigua & Barbuda Philippines Sweden Barbados Singapore Switzerland Grenada Asia Pacific Americas Caribbean South Korea St Kitts & Nevis Taiwan St Lucia Thailand Vietnam 24 EUROPE 57 OFFICES & ASSOCIATES US 50 OFFICES & ASSOCIATES MIDDLE EAST & AFRICA 270 OFFICES & ASSOCIATES ASIA PACIFIC 120 OFFICES & ASSOCIATES 25 13 Selection of Hotel & Resort Case Studies 1 2 4 3 5 6 1. Sotogrande Resort, Spain 2. Ski Resort Development, Hokkaido, Japan 3. Bagan Thiripyitsaya Sanctuary Resort, Old Bagan, Myanmar 4. Porto Montenegro, Montenegro 5. Mix-Use Development Project, Perth, Australia 6. La Manga Club, Spain Service provided: Development consultancy, marketing consultancy and residential agency services. Service provided: Market feasibility studies, development advisory, design concept planning and marketing of the project to international investors. Service provided: Valuation of the 9.7 hectares of land including site of the existing resort and future development land for investment purposes. Service provided: Project Vision, Development, Design and Marketing & Sales Consultancy, Sales Agency. Service provided: Hotel advisors, hotel management and development advisory with a potential continuation as asset manager for the hotel on behalf of the investors. Service provided: Provided development consultancy and sales and marketing advice on the well-established resort. 26 27 13 Selection of Hotel & Resort Case Studies 7 10 11 12 8 7. Eden Island, Seychelles Service provided: Consultancy, Sales Agency. 28 9 8. The World of ResidenSea Service provided: Development Consultancy and global Sales Agency. 9. Alila Uluwatu Resort, Bali, Indonesia 10. Aphrodite Hills Golf Resort, Paphos, Cyprus 11. Fairmont Heliopolis, Cairo, Egypt 12. Lotte Hanoi Hotel Project, Hanoi, Vietnam Service provided: Marketing Consultancy, Sales Agency. Service provided: Residential Consultancy, Sales & Marketing. Service provided: Feasibility Study and Development Consultancy services. Service provided: Market feasibility study, concept planning and marketing the projects to investors. 29 13 14 Selection of Hotel & Resort Case Studies Selection of Major Urban Case Studies 13 14 16 15 17 18 13. Quinta do Lago Resort, Portugal 14. Mix-Use Development, Nanjing, Jiangsu, China 15. Sveti Marko Island, Montenegro 16. Greenwich Peninsula, London, UK 17. Marine Facade, St Petersburg, Moscow, Russia 18. Hellinikon Project, Athens, Greece Service provided: Full range of development services including development consultancy, management and sales and marketing. Service provided: Market feasibility study, development advisory, operator selection, retail leasing and potentially marketing the projects to investors. Service provided: Development Management, Development Consultancy, Marketing and Sales Consultancy, Exclusive global sales. Service provided: Development and sales consultancy on high density urban mixed use regeneration scheme including 10,500 new homes. Provided ongoing advice on the development composition, phasing, end values and marketing / exit strategies. Service provided: Research and Development Consultancy on 64 Ha reclaimed land site off Vasiliyevsky Island, St Petersburg, proposing an urban mixed-use scheme of 1.5m sq m GBA. Service provided: Research and Development Consultancy on project of 6.2million sq m site, totalling over 3.2million sq m GBA, providing over 14,000 residential units, 6 hotels, mega-casino, office, retail, marina, hospital and educational use classes. 30 31 Image > Burj Khalifa Armani Hotel & Residences, Dubai. 32 33 34