In Mongolian

A cooling economy, persistently high inflation and tighter credit regulations will maintain pressure on Mongolias retail sector throughout 2015, though demand for shop space in certain segments remains strong.

In its latest update on the Mongolian economy, the World Bank said double-digit inflation and the high current account deficit had affected domestic demand, adding momentum to the pressures on the economy. Without a strong rebound in foreign investment, pressure on the balance of payments will increase vulnerabilities and continue to dampen economic growth next year. Domestic demand will continue to be under pressure, particularly affecting the non-mining sector, the bank said at the end of 2014.

The non-mining segment of the economy was dragged down by weakness in the construction and wholesale/retail sectors last year, with these pressures set to continue. According to the World Bank, the wholesale/retail segment contracted 6.8% in the first nine months of 2014, having experienced a similar rate of negative growth in the same period a year earlier.

As growth in the sector has slowed, there has been a near threefold increase in the level of non-performing and past-due-date loans, which were valued at MNT227bn ($113.5m) at the end of October, accounting for 21.6% of problematic loans across the economy.

Retailers are likely to be affected by tighter lending requirements and higher interest rates introduced by the Bank of Mongolia (BoM) in 2014, which led to a slowdown in private sector credit growth to 22% in October, down from more than 53% a year earlier.

Despite a weaker performance in 2014, new investments are still being rolled out. In mid-December, property management and development firm Mongolian Growth Group (MGG) opened the first stage of the Tuguldur Centre, an 80-year-old building which has been renovated to accommodate a new retail complex in Ulaanbaatar, close to the capitals business hub. The property is 99% leased, according to MGG, with strong interest in its second stage.

In a statement issued to investors at the beginning of 2015, Harris Kupperman, MGGs chairman and CEO, said the company had at least one other retail development in the pipeline, targeting the same market as the Tuguldur Centre. This suggests that prime retail space remains in strong demand in the city centre, despite the economic slowdown.

Local retailers are also looking to increase their profile in secondary urban centres away from the capital, tapping into a growing affluence brought about by higher employment levels and earning power stemming from the development of the mining and industrial sectors in more remote areas. While Ulaanbaatar remains the main population and economic hub, cities in the north and east are expanding, offering retail opportunities.

This expansion was given added impetus in late December when the European Bank for Reconstruction and Development (EBRD) announced it was extending a MNT23.3bn ($11.63m) loan facility to retailer Nomintav Trade. The company, part of the Nomin Group, specialises in fast-moving consumer goods, apparel and consumer electronics. The funds will be used to support development of six new outlets in various regions, as well as in Ulaanbaatar itself, where it already has a significant presence.

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Tight times for Mongolias retail sector

Real estate looks forward to a good year, buoyed by BPOs and the resurgence of retail, leisure and gaming

BULLISH. Philippine real estate looks set to enjoy another good year. File photo by Rappler

MANILA, Philippines The prospects of the Philippine real estate industry this year are bright, anchored by the continuing growth of the Business Process Outsourcing (BPO) sector and supported by the resurgence of the retail, hospitality and gaming sectors.

We just rang in the year of the goat during Chinese New Year, but this certainly wont be a goat year for Philippine real estate. Its going to be another strong year, said Rick Santos, founder, chairman, and CEO of CBRE Philippines.

CBRE Philippine is the local subsidiary of the CBRE group, the largest real estate services company in the world.

The BPO sector remains the top driver for investment in the country due to the countrys cost-effectiveness and demographics dividend, according to CBRE.

The continued expansion of the BPO sector has also significantly accelerated the services sector, which has grown at 3.3 percentage points of the GDP and is the top drawer of economic growth in the fourth quarter of 2014, he added.

By 2016 BPO revenue is estimated to exceed $25 Billion (P1.10 trillion) and $48 billion (P2.12 trillion) by 2020. With that amount of money coming in, businesses linked to the sector will see great opportunities, Santos said.

The sector continues to be the main source of demand for the office market, according to John Corpus, director of agency and brokerage at CBRE. The Philippines has overtaken India in voice call centers including Western banks and IT firms due to client preference for local English accent. Call center numbers are growing at about 20% per decade, he said.

Corpus added that for every one BPO job, an additional two and a half jobs are created in construction, administration and services and in this way, they build cities.

Link:
No goat year for PH real estate in 2015

This is an original rendering of what the hotel and pool at the Chateau were to look like.

By Kathryn Reed

A 32-room four-star caliber hotel is being designed in what will be the next phase of the Chateau project in South Lake Tahoe.

Accompanying it will be a swimming pool, spa, nearly 19,000-square-feet of retail and open space. The pool will be designed to accommodate what will eventually be two hotels. This first one is permitted for 115 units, while the larger one is for 365 rooms. The bulk of the commercialwill be completed in the next phase.

No price is being put on what the next phase will cost, though it is in the tens of millions of dollars range. The opening date could be winter 2017.

Design plans have been submitted to the city. Lew Feldman, attorney for the project owners, says construction could start this fall.

It really is a testament to where the community is headed, City Manager Nancy Kerry told Lake Tahoe News. She added that it is especially significant so soon after the initial retail phase of the Chateau opened.

Thisadds to the 10-year goal, with this being year two, of having $1 billion of private and public money invested on the South Shore. To date $300 million has been spent on upgrading the built environment.

Tahoe Stateline Ventures, the company formed to develop the 11-plus-acre site near the state line, is incrementally building out what was to be a convention center, two hotels and a retail complex. That was the plan that was permitted by the Tahoe Regional Planning Agency in 2008, but which got derailed because the original developer filed for bankruptcy. With the dissolution of redevelopment and the city not having a role in the project anymore, the likelihood of a convention center ever coming to fruition is slim to none.

What that aspect of the project might become remains to be seen.

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Hotel component of Chateau in design phase

Stanhope student apartments are scheduled to finish construction in early August, bringing more than 800 beds and 25,000 sq. ft. of retail space to Hillsborough Street.

Stanhope is located at 3001 Hillsborough Street, across from Cup-A-Joe and expected to have primarily NC State undergraduates as residents.

John Kane, the developer of Stanhope, is also the developer and owner of North Hills, an upscale outdoor shopping mall. Because of Kanes reputation and success with North Hills, there is much anticipation for the opening of Stanhope.

Kane Realty is offering students and faculty from the College of Design the opportunity to submit artwork, wall installations and sculptures for Stanhope. If selected, the creations will be permanent to the building. The deadline for submitting artwork is the end of March, and the winner will be chosen in April.

Jeff Murison, executive director of Live it Up! on Hillsborough, a community service corporation that advocates for the revitalization along Hillsborough Street, said [Stanhope] is going to be a fantastic building, will hold a little over 800 beds, great amenities like a cyber caf and infinity salt-water pool.

Elyse Pizzella, a junior studying chemical engineering, will live in Stanhope apartments next semester.

Its a little pricey in comparison to other options off-campus, she said. There are other apartments and houses off Gorman and Tryon that arent as expensive, but I think for the location and price it will be worth it.

The two-bedroom rate at Stanhope is $805, while Valentine Commonss two-bedroom rate is $750, and College Inns is $765.

In addition to the residents, Stanhope will bring a commercial space below the complex.

I am extremely confident we are going to see whether its a cool new restaurant, bar and nightlife, some great new retail. The mix of businesses are going to be a great attraction to students, said Murison.

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Hillsborough Street sees multi-million dollar investments

This PROFESSIONAL SERVICES CONTRACT (Contract), made this ____________ day of __________________, 20__, is entered by and between _________________________________, a professional home or building inspector (referred to herein as the Inspector), and __________________________________, a professional consultant licensed or certified in the field of ___________________________ (Consultant), for the solicitation and delivery of professional consulting services as more specifically set forth in the following terms and conditions of this Contract.

RECITALS

WHEREAS, this Contract relates to the inspection of a structure (referred to herein as the Property) located at the following address: _________________________________________________________, and

WHEREAS, this Contract is made in conjunction with the Inspectors separate contract with a third-party client (Client) for a general inspection of a residential or commercial building, and

WHEREAS, the Inspector requires the professional services (referred to herein as Services) of the Consultant as described in the Statement of Work, attached hereto and incorporated into this Contract as Exhibit A, in the performance of the general inspection for the Client, and

WHEREAS, the Inspector intends to utilize the work product produced in the course of the Services as described herein to assist in the general inspection of the Property and the preparation of a written inspection report for the Client, and

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February 20, 2015

Deal Watch Today

The developer building a downtown Hartford ballpark says it needs $20 million in public funding to include affordable apartments in its next development phase that also envisions a supermarket and parking garage.

Officials with developer DoNo LLC appeared at Thursday night's regular meeting of the Capital Region Development Authority and outlined its plan for the proposed $105 million project directly across Main Street from the ballpark now under construction.

The yet-unnamed project would include 328 one- and two-bedroom apartments situated atop street-level retail space that would include a 62,430-square-foot supermarket, plus another 33,000 square feet of extra retail space, and a 705-space parking garage. Twenty percent, or about 65 units, would be earmarked "affordable'' and offer below-market rents; the rest would be priced to the market.

Yves-Georges Joseph II, vice president of development for Centerplan Development LLC, a partner in DoNo LLC, told CRDA board members that preliminary talks have been held between DoNo LLC and staff of the qausi-public agency about what form their financial partnership might take.

Originally, the mixed-use project was conceived to be built with private financing, Joseph said. However, feedback the developer got about the entire DoNo development project from city officials, residents and other "stakeholders'' insisted that some of the apartments have rents tied to the median income of city residents, he said.

To do that, DoNo LLC calculated that injecting an affordability feature into the apartment project would create a private "funding gap'' of $20 million that CRDA could fill, Joseph said. DoNo assumes a monthly affordable rent of about $650 a month for the units, based on city residents' median income of $35,000 annually. The gap reflects the "funding hurdle,'' Joseph said, that the developer would have to cross to sway investors skeptical about the lengthened recovery period for their investment from having some apartments rent for less than others

The CRDA made no specific commitment to DoNo LLC's proposal that the two partner in financing the mixed-use development but both sides indicated their discussions will continue.

However, Joseph reminded the panel that DoNo LLC's develpment contract with the city requires ground for the mixed-use project be broken by November, which means financing must be completed by Sept. 30 to meet that timetable.

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$20M sought to make DoNo apts. 'affordable'

For 17 years, the Sears Crosstown building has sat vacant, casting its gloomy shadow over the historic Midtown neighborhoods surrounding the 1.4-million-square-foot former Sears warehouse and retail store.

But on Saturday, February 21st, a community groundbreaking party will celebrate the construction that officially began on January 1st to transform the former Sears headquarters into a lively "vertical urban village" of medical offices, arts amenities, residential housing, and retail space.

And with a new focus for the building comes a new name. The partners in the Crosstown redevelopment project will be dropping Sears from the building's name and announcing a new name at the groundbreaking party.

"Everyone referred to the building as Sears Crosstown, but Sears is long gone," said Todd Richardson, associate professor at the University of Memphis and co-leader of the redevelopment project. "We wanted the building to have its own identity and branding based on what's going to be happening there."

When Richardson and his partners started planning for the building's redevelopment five years ago, the neighborhood around the building, which was called Crosstown in Sears' heyday, had all but lost that identity.

"The name Crosstown had fallen off the map for most Memphians, and people didn't even know where the neighborhood was," Richardson said. "All of the events [put on by Crosstown Arts] the lectures, the concerts, the MEMFeasts, the exhibitions were a way to draw people back to the area and recognize its true potential."

Since Crosstown Arts launched in 2010, Richardson said it has been successful in rebranding the neighborhood as Crosstown and rebuilding the community.

He says the block party, which will run from 11 a.m. to 2 p.m. in and around the triangle park between North Watkins and Cleveland, is intended as a way to thank the Crosstown community and the building's founding partners and financial backers.

Besides the name-change announcement, the party will include an iron pour by the Metal Museum. They'll be on-site melting down iron from old radiators taken out of the Crosstown building. Additionally, there will be live music, beer, and food trucks.

The founding partners Church Health Center, Crosstown Arts, Gestalt Community Schools, Memphis Teacher Residency, Methodist Le Bonheur Healthcare, and ALSAC/St. Jude are moving all or part of their offices into the building when it's complete in early 2017.

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Crosstown Building Project Kicks Off with Block Party

The Corners, a large retail development planned for the Town of Brookfield that ran into delays, is now proceeding toward a spring construction start, the developers announced late Wednesday night.

The Corners, which will be anchored by a 140,000-square-foot Von Maur department store, is expected to open in fall 2016, acccording to Milwaukee-based Marcus Corp., Chicago-based Bradford Real Estate and IM Properties Plc, based in the United Kingdom.

IM Properties and Bradford are part of a newly announced joint venture with Marcus on The Corners. Marcus started the project, and will retain a minority interest in Brookfield Corners LLC, the group that will own and operate the development.

The next step will be to begin demolition of a former Menards store at the project site. That work is expected to begin next week, said Megan Hakes, a spokeswoman for the developers.

The announcement came after the Brookfield Town Board voted 4-1 to approve a development agreement with Brookfield Corners LLC. That comes one year after the board approved a plan to help finance the project.

Link:
Von Maur-anchored development to begin construction in spring

By Bette Alburger DCNN Correspondent

Middletown Council, at its Feb. 9 meeting, learned that demolition of the distressed Granite Run Mall, except for the Boscovs and Sears anchor stores, could begin this fall. Thats the estimate of attorney Joseph Riper, representing BET Investments. The Horsham-based firm intends redeveloping the mall site as an upscale town center with residential, retail, restaurant and entertainment components.

Postponed twice, a status report on the proposed project was presented to council by Riper and BET President Michael Markman. It drew no negative comments.

Markman, who will develop the project with business partner Bruce Toll, has said it probably would take two years from start to finish. Development would take place in stages. The initial phase would be the mall tear-down, which he said would be a first for the Philadelphia area. At the same time, construction would begin on a high-end, 175-unit apartment building on the former Chi Chis Mexican restaurant site fronting route 352.

A second four-story apartment building is targeted for land abutting Oriole Avenue, near the current site of an AMC movie theater. This building would have some retail shops on the first floor. Both apartment buildings would have structured interior parking, whereby access to an apartment would be directly from the car. Each building would have a swimming pool, gym and other amenities. Average monthly rental would be $1,500, depending on whether the unit has one or two bedrooms.

Markman again emphasized that the second phase of development construction of a second apartment building and the retail component would not get underway until the first apartment building is leased at a threshold satisfactory to council. He stressed that residential use will drive the retail/restaurant/entertainment uses. He said Starbucks is expected to be one of the tenants in the town center, and at least half of the retail space has generated interest from other prospective tenants. Among them are a bank and a pizza shop.

Also, three different movie operators want to be here, said Markman, about a theater complex to be developed on the site of the Penneys store that will be closing in April and demolished.

Asked by township resident Nancy Geisel if a hotel could be developed instead of one of the apartment buildings, Markman said no major hotel has indicated an interest in being part of the project. Resident Timothy Sullivan pointed out that the malls name has a negative connotation. Responding, Markman said the town center will have a new name.

We really would like to get moving on this, Riper told council.

To move the proposed project forward, council unanimously introduced an ordinance that would revise several of the townships storm water management regulations dealing with redevelopment of sites. It would bring the townships regulations in line with the countys regulations, which are slightly less stringent. Adoption of the ordinance would allow the site to be redeveloped as proposed.

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Demolition of Granite Run Mall could begin this fall

The mega-shopping centre that will change the face of retail in the Lower Mainland is steadily taking shape at the Tsawwassen First Nation.

Located at the northwest corner of Highway 17 and 52nd Street, Ivanho Cambridge's Tsawwassen Mills will include 1.2 million square feet of retail, while the adjacent Tsawwassen Commons, a Property Development Group project also under construction, will have 550,000-square-feet of outdoor retail.

Both are scheduled to open in May of next year.

A spokesperson for Tsawwassen Mills said in the next few months construction will include structural steel work continuing from the east side of the building to the west side, installation of exterior walls, installation of the roof, which will include energy-efficient skylights, and installation of underground utilities.

Tsawwassen Mills is expected to have 16 anchor stores, a mix of premium fashion brands and factory outlets as well as a 1,100-seat food court. The mall is modeled on the successful CrossIron Mills in Calgary and Vaughan Mills in Greater Toronto.

The first Bass Pro Shops in B.C. is the only confirmed tenant thus far, but a Tsawwassen Mills spokesperson said more tenant announcements are expected in the coming months. Tsawwassen Commons will include a blend of national, regional and independent retailers, big-box outlets, restaurants and financial services. PDG Investments is managing the leasing of its project with FORM Retail Advisors, a Vancouver-based retail broker.

Tsawwassen Commons' only announced tenants thus far are Walmart and

Rona, however the project is already 50 per cent preleased, with 78 per cent of the retail area under letter of intent or offers to lease, according to GVest Private Equity LP, which has come on board as a 50 per cent shareholder in the project.

When completed, Tsawwassen Mills and Tsawwassen Commons will combine to be the secondlargest shopping centre complex in B.C., slightly smaller in leaseable retail space than Metropolis Metrotown in Burnaby.

Meanwhile, work continues on Highway 17 to widen the highway from east of 56th Street to Tsawwassen Drive. Upgrades are also being made at the 52nd Street and 56th Street intersections.

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Malls taking shape for 2016 opening