Singapore's Ascendas building solutions to meet demands of more sophisticated workforce

The integration of technology has greatly influenced the quality of commercial property over the last 10 years.

Today's changing demographics and emerging social trends are raising the bar and creating new demands for business space.

Offices must now include features to help balance work and life.

So-called "Generation Y" professionals - people born in the 1980s and early 1990s - are now entering the workforce and placing new demands on their work environment. Property developers are being challenged to meet their evolving needs.

Recent projections show that Gen Y workers will comprise one-third of the workforce by 2015. Their expectations of what a workplace should be significantly impact the design of business space, with most seeking a conducive, vibrant working environment that suits their lifestyle.

Work and play

Ascendas has been tracking the challenges and responded with an integrated community concept in its business parks.

The approach comprises an economic hub that incorporates attractive features to meet the expectations of the Gen Y workforce and provide flexibility in an environment that embraces the "work-live-play-learn" concept.

Integrated business parks are popular as they give corporations the flexibility to grow in stages when they first enter a new market without the high cost of development in a prime location.

China's emergence as the world's second-largest economy has seen the entry of global corporations eager to tap the economic boom.

The competition for talent has become hot and companies have to think of ways to retain staff beyond just offering attractive pay packages.

As a result, business space providers have spruced up their products. Property developers today have to find a balance in several aspects - the expectations of a Gen Y workforce, development costs, land and infrastructure constraints, as well as environmental responsibilities.

Business space providers no longer just provide workspace and business premises, but more and more have to create lifestyles. At many IT and business park developments across Asia, recreational and lifestyle amenities such as food and beverage operations and fitness centers can already be seen and are many times a basic expectation.

"Business space is constantly evolving with new business needs, new technologies and increased corporate social responsibilities," said Chong Siak Ching, president and CEO of Ascendas.

"More importantly, the expectations of employees working for the companies have changed, and will continue to change with more Gen Y workers entering the workforce - and when more varied employment opportunities became available. Business space must go beyond providing a roof over four walls and the standard utilities."

Experience in China

Headquartered in Singapore, Ascendas has built a strong regional presence in Asia with key markets in Singapore, China, India, South Korea and the Philippines.

Ascendas has a successful track record in developing high-quality business space, serving more than 1,800 international clients.

Its flagship projects include the Singapore Science Park, International Tech Park Bangalore in India, and Suzhou Industrial Park and Dalian Ascendas IT Park in China, which have supported the economic development of local communities and the growth of R&D, IT and business process outsourcing.

Ascendas' presence in China spans more than 16 years. One of the first Singapore companies to venture into Suzhou in 1995, it introduced the ready-built-facilities concept to China.

With the plug-and-play infrastructure, the high-quality facilities were the catalyst for businesses to invest and operate in the renowned Suzhou Industrial Park, now a model of quality for other local park developers.

Over the years, Ascendas has deepened its commitment in China. Today, its network spans 10 cities covering Shanghai, Suzhou, Beijing, Dalian, Nanjing, Xi'an, Tianjin, Hangzhou, Guangzhou and Shenzhen.

Ascendas has grown in tandem with Chinese government plans to develop higher-value industry sectors such as R&D, IT and business process outsourcing.

Ascendas manages S$1.6 billion worth of assets comprising approximately 90.1 hectares of industrial and commercial business space in China.

As a total business space solutions provider, the company has progressed from its original business model focused on industrial parks to business parks with the integrated community concept.

Ascendas has widened its product offerings to offer knowledge workers in high-tech and services industries the most modern and up-to-date environment for work and lifestyle. The Dalian Ascendas IT Park, Singapore-Hangzhou Science and Technology Park, Ascendas iHub Suzhou and upcoming Integrated Business Park in Guangzhou Knowledge City already incorporate the elements.

"Ascendas aims to offer customers convenient, transparent and stable real estate platforms so that tenants can focus on growing their businesses, knowing that they have a conducive environment for their staff," said Wong Wing Kien, CEO of Ascendas China. "This philosophy applies not just to China, but across all our markets."

Ascendas has broadened its product offering to meet the needs of the Chinese market. It has expanded its portfolio to integrated parks with a focus on knowledge industries and commercial buildings.

Integrated community

Dalian Ascendas IT Park (DAITP) is a prime example of its first new-generation integrated community concept in China.

The 35-hectare park is located on a hilltop with spectacular views of the surrounding sea and mountains.

A site rich in historical heritage, DAITP is a global hub for knowledge professionals in IT, business process outsourcing (BPO) and R&D to work, live and play within a socially integrated community.

It offers 600,000 square meters of mixed-use development including high-grade office, retail and amenity space, as well as premium serviced apartments.

Global corporations such as Citi, Infosys, Konica Minolta, Network Appliance, Nomura and Toyota are now located in DAITP.

The human-centric master plan for DAITP leverages the unique identity and attributes of the natural site and incorporates features that cater to the needs of a young Gen Y working population.

A vibrant retail "spine" connects the park community to the metro station and 2,500-unit residential zone.

This spine contains 50,000 sq m of retail, leisure and entertainment spaces. It is flanked by 460,000 square meters of business space for software development, BPO, IT service, R&D and Biotech.

Beyond bricks

Building on its strong reputation as a real estate owner, developer and manager, Ascendas has also established a successful track record in managing listed and private real estate funds.

With the launch of its first fund in 2002, the company ventured into the fund management business to provide opportunities for like-minded investors to participate in the growth of the Asian real estate sector.

Today, Ascendas manages a broad range of funds including two publicly listed property funds and several private real estate funds, and invests in a diverse range of industrial and commercial real estate properties across Asia.

Singapore's first business space real estate investment trust, Ascendas Real Estate Investment Trust (REIT) was listed on the Singapore Exchange in November 2002. In August 2007, the Ascendas India Trust was listed as Singapore's first listed Indian property REIT. Since listing, assets under management of both funds have grown.

Private equity funds are changing the way that listed REITs operate. Many property groups that sponsor REITs are increasingly turning to private equity funds to build a pipeline of future acquisitions for their REITs. Ascendas manages several private funds that focus on different segments and geographies of the Asian real estate sector.

In China, Ascendas manages two such real estate funds - the Ascendas China Commercial Fund and the Ascendas China Industrial and Business Park Fund.

The Ascendas China Commercial Fund invests in a commercial property portfolio of income producing commercial properties in prime locations of Shanghai - including Ascendas Plaza, Ascendas Ocean Towers and Ascendas Cross Tower - that have high quality tenants from a mix of industries.

The Ascendas China Industrial and Business Park Fund invests in light industry and logistics facilities including warehouses and distribution centers, software and IT related facilities, suburban business office buildings and business parks. Its current portfolio comprises Ascendas-Xinsu in Suzhou Industrial Park and Ascendas Z-Link in Bejing Zhongguancun.

"China remains a key market for Ascendas and we see tremendous potential in this economic power," Wong said. "We will continue to invest in good quality real estate and leverage on our strengths to support the growth of China's growing industry sectors.

"Ascendas' portfolio of quality commercial office space in Shanghai and business parks across other major cities in China creates more options for us to support the changing business needs of our tenants.

"This is our commitment to China and to our customers."

(China Daily 08/02/2011 page3)