Apple innovates the architectural industry...

Example of Apple architecture, Apple Store, NY

Last week Steve Jobs, CEO of Apple, proposed the landing of a spaceship in Cupertino, USA. Cupertino is, and has always been, the home of Apple Mac’s offices. And so, now that Apple appears to be approaching world domination in terms of the latest (indeed the coolest) I.T. and mobile technology, it seems only apt that its HQ should mirror this brand prowess.

The said “spaceship” is actually one office building that will hold 12,000 employees. No expense has been spared with the curved construction. The existing 150 acres (previously owned by HP) currently features a standard office building, a huge amount of parking and 20% landscaping. This will be transformed into an architectural landmark with 80% of the land dedicated to around 4500 indigenous trees (inc. apricot orchards). Jobs says that they’d like “a shot at building the best office building in the world.” But why would a computer company assume a position of expertise when it comes to architecture?

This architectural egotism does seem to be a phenomenon that is affecting many of our top brand names. But is it justified? Any über successful brand does require an understanding of design versus practicality and ergonomics if they are to succeed – even more so in such economically challenging times. (There is no point in creating a computer that does a million fancy things, for example, if it looks plain ugly or just huge when sat on your desk). And form v function is an ethos well known to any architect.

So, perhaps, when a brand is top of their trade, it is quite a natural progression, after all…

Apple’s iPhone is number 2 on the “UK’s Coolest Brands” list and the iPod is number 3. Therefore, it should be of no surprise that the Number 1 Coolest Brand in the UK is also extending their inherent ability for producing the exquisite for the property industry. 

Aston Martin is the UK’s largest manufacturer of luxury sports cars. Their automobile designs, inspired by a combination of power, beauty and soul, are revered worldwide. The recent announcement of exclusive international destinations states a desire to create resorts with an emphasis on sporting facilities that is not currently available in the property/tourism market. Each resort will maintain the core elements of the Aston Martin brand whilst captivating the influences of the specific locations – a design concept that is similarly seen in the Apple stores that are each unique but consistently use a combination of light, glass and metal to achieve a trademark ambience. 

As Architect, Philip Johnson, states “All architecture is shelter, all great architecture is the design of space that contains, cuddles, exalts, or stimulates the persons in that space.”

Aston Martin developments concept image

In conclusion, whilst construction must, of course, be technically sound, it may also be magical – and in that, the brand genius of our generation may well be able to assist.

For more information on the Aston Martin Branded Developments please contact  FIRSTLOGIC Consulting www.first-logic.com

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A new era for the World's coolest brand

– Aston Martin Branded Developments

Alvaro Hidalgo of First Logic discusses the company’s role in taking one of the World’s coolest brands into the exciting world of property development.

How will First Logic manage the development process for Aston Martin?

First Logic's role with regards to Aston Martin branded developments is to identify projects suitable for the prestigious brand and initiate all of the driving factors (concept, architecture, funding & financing, marketing & sales and subsequent management of the operations) that are required to make the project become a reality.

Where in the world will the Aston Martin developments be located and what are the deciding factors?

We are evaluating and actively seeking proposals of development projects which unite the high calibre characteristics represented by the Aston Martin brand. This includes the location, project configuration and a unique appeal.

Aston Martin will grant licenses to only a limited number of developments, worldwide.

What environmental factors are you seeking for the location of these resorts?

Beautiful environments are being sought (mountain, forest, snow, lake, etc) that can also provide first-class sport and leisure activities such as ski, polo, golf or marina. Each development will be considered on an individual basis with a construction and sales approach that is both effective and in harmony with the Aston Martin brand.

For more information on 

Aston Martin Branded Developments

please visit:
FIRSTLOGIC Consulting

www.first-logic.com

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Aston Martin extends brand prowess to international property developments

Renowned manufacturer of luxury British sports cars, Aston Martin, has extended its brand license agreement to include international property developments. Enthusiasts are attracted to the distinctive Aston Martin style that has become iconic to the world of automotive design – the key elements of which will now be applied to the new property concepts.

Power, beauty and soul are the 3 core elements that lie at the heart of the Aston Martin brand, and these same elements will be significant in placing Aston Martin branded developments at the height of the luxury property industry. “Aston Martin has an inherent beauty that stems from a basic requirement to be streamlined and aerodynamic. It is this design expertise, and an understanding of aesthetics combined with functionality, that will differentiate Aston Martin developments”, says Alvaro Hidalgo of First Logic.

Each Aston Martin property development will be unique, tailored to suit a selection of first class leisure destinations such as Marina, Beach, Ski, Golf and Polo resorts. Key principles will remain present throughout all developments, as will a striking selection of build materials. The classical strength and elegance of the Aston Martin brand will dictate the property framework, which will be united with contemporary innovations to complete truly unique developments. The worldwide portfolio of Aston Martin’s luxury properties will include villas, apartments, residences, hotels, sports clubs and accompanying exclusive leisure facilities.

Those investing in an Aston Martin property development will be proud to be part of a new brand concept that assures absolute quality, care and craftsmanship. And the long term rewards of investments in a top luxury brand include the benefit of faster sales, reduced risk and additional security. 

For more information on Aston Martin branded property developments, 

please contact FIRSTLOGIC Consulting

http://www.first-logic.com

About First Logic:

First Logic is an international property development consultancy that integrates focus and expertise to create one seamlessly driven project. http://www.first-logic.com

*Aston Martin and the Aston Martin logo are trademarks owned and licensed by Aston Martin Lagonda Limited. All rights reserved. Other product and company names mentioned herein may be trademarks or registered trademarks of their respective owners

Do the emerging markets have a future?

Recent worldwide economics have, of course, affected the real estate development industry. But, the problem of lacking liquidity and wary funding entities has been further compounded by the instability of the final consumer who, due to their own personal circumstances, have been incapable of providing sufficient funds to the developer at time of completion.

And it is the property developers focused on the emerging markets who have suffered the most. Whilst the end consumer in an established market may be purchasing for personal use as a family home, the likelihood in an emerging market is that the property is intended for buy-to-let or second home purposes and therefore, is immediately considered “not a priority”.
 

Construction India – PWC

Yet, recent stats hint at a speedy recovery for the developer in emerging markets – perhaps even more so than those taking the “safer” option in the established market. The UNWTO states  “While all regions posted growth in international tourist arrivals, emerging economies remain the main drivers of this recovery. This multi-speed recovery—slower in advanced economies (up 5%) and faster in emerging ones (up 8%)—is a reflection of the broader global economic situation.” It is also thought that the growing requirements for commodities will act as a catalyst for the product-rich regions such as China and India.

Tourism, Spain

Whilst the emerging markets throughout North and Sub-Saharan Africa were relatively unaffected by the world’s economic crisis (with 2010 figures exceeding pre-crisis), the immediate future of the MENA region is now obviously in question.. “Short-haul destinations with a history of tourism demand show the most promise for the 2011-2012 period; Spain or Croatia for Europeans, the Caribbean and Mexican destinations  (Baja or Mexican Riviera) for US and Canada, South Brazil (Santa Catarina) and Uruguay for South Americans” says Alvaro Hidalgo of First Logic Consulting.

Hidalgo continues to state “a real estate investor interested in the emerging markets should seek a destination with the capacity to attract the originating markets. As in any other sector, the key factor in real estate development  is to identify a niche and develop a product that is fitted to that niche.”

Contact  FIRSTLOGIC Consulting for more detailed advice on real estate development in the emerging markets www.first-logic.com




Do brands really add property value? (I)

Brands are not created overnight. It is with forethought, planning and customer loyalty that a brand becomes popular. Obviously, all of this groundwork leads to a consumer bond that is not easy to attain and difficult to compete with. And that bond can be transferred to related products as the brand cannot risk its reputation by producing or endorsing any product that is sub-standard. 

In challenging times every industry faces a mounting pressure for fresh ideas, and one of the solutions to the 2008 crisis brought up by the property market was “property branding”.
As in any other field, the execution of the idea or guideline is as important of the idea itself. And it seems as if some believed that by simply bellowing “branded property” via any medium that would have them, would easily salvage a sorely damaged bank account. Of course, the truth is that it would be difficult to resurrect a failing resort that was constructed with peak costs and copy-cat planning by just adding a brand name above the door.
It should be remembered that it is not the logo of the brand that adds the value, but the strategy that the brand will bring (with equal emphasis on an accurate selection).

The undeniable fact is that branded hotels are more profitable in all economic conditions – most especially during the downturn as customers are more risk adverse and therefore need to be reassured by the familiarity of a known name. A recent example of a brand that has pushed its boundaries is the fashion-house Missoni. The initial Hotel Missoni in Edinburgh proved to be so superbly popular that the bold, dynamic designs have now also been applied in Kuwait with establishments also planned for Oman and Brazil. 

 

This is a clear example of how branding works. It is the brand that links the facts with the emotion. Knowing that a second-home development in an emerging district will have on-site facilities such as a swimming pool and a sauna is one thing. Knowing that it will be inspired, designed and run by a luxury name such as Versace is quite another. http://www.palazzoversace.com/

Branded properties provide added security as the management companies place importance on consistent management and worldwide marketing. This in turn results in higher returns over a longer period of time.

And, of course, we are all human. It would take a quite a stern investor who did not crack a small smile at the mention of his exclusive retreat on the delectable shores of some-such coast… oh, yes, and it just happens to be managed by the World’s Number One Coolest brand…

FIRSTLOGIC Consulting can identify and implement the management agreement of top brands to transform your property development. For more information www.first-logic.com

The role of the project manager

Until the late 80’s, the position of Project Manager did not exist in the construction industry as a distinct occupation.  Their tasks as we know them today were carried out by the Lead Consultant, normally the appointed Architect, as an inherent part of the design and construction process.  As Lead Consultant, the architect’s role during the construction phrase was far more managerial and consequently their knowledge of the Design Team was better informed.  By introducing a new member of the team, the Project Manager, it was possible to focus on the role of project control and make non-bias decisions whilst allowing the architect to concentrate ongoing design and detailing works.  

However as a direct result, statistics indicate that during the 1990’s, there was an increase in both construction delays and cost overruns which can be attributed to the introduction of this alien development style.  The project manager was seen as a glorified accountant or elevated clerk of works, and design team meetings went from the normal slight disarray into complete farce, when members felt the pressure of a new hierarchy and it necessary to showcase their abilities and would expect regular accolades for their achievement of what were typically contracted goals. 

In today’s marketplace, development projects are becoming more and more complex and the role of project management is widely appreciated.  However the role has commonly changed its title to ‘construction management’,  not only to differentiate between other industries who use similar names such as the software industry, but also because in general the project manager (as first referred)  is employed to oversee solely the construction process. Reaching far beyond the realms of construction management, the need for investment, legal and financial considerations, partnering, project branding, market research, feasibility designs, sales campaigns and PR has grown as the industry has grown, as does the competition and conversely the profit margin which has lead to the emergence of another new role:  The development consultant. 

In a difficult and ever changing marketplace, the need for pre-planning is paramount to a project’s success, proven by the frequency of developments failing by not following clear ‘development/business strategies’. An initial outlay to conduct the required feasibility studies and an associated business plan can reap rewards during the construction process as the project will be designed to suit the market enabling it to sell out off-plan,  provide self- investment and be completed on time and on budget.  Each day a construction project is halted on site, the project cost rises exponentially which is simply avoidable by pre-planning.
As my father always says, in order for the prudent man to ‘sit back to reap the rewards of a successful project,  he must ‘measure twice and cut once’ 

Let us measure for you, so that you can sit back and reap the rewards:  www.first-logic.com

Would you risk your money today?

Current owners/investors of distressed projects are desperately looking for an exit, some of them incapable to complete their projects, others seeing how their completed developments lie unoccupied and wondering how to fulfill financial obligations. From their side, banks, lenders and investors are desperate to prove to boards, shareholders and more importantly, supervision and rating agencies that they do not hold bad debt… and they dread the moment in which they will have to cover them with provisions putting additional stress in balance sheet and banking ratios.

It is no news that cash is king nowadays, and everyone with cash (BTW, anyone with cash?)  will do better by keeping it safe. But until when? Aggressive investors are obsessively looking for the forerunners of economic take-off; prudent investors will not risk a penny until the recovery is really up and running and will nonchalantly let the first wave pass and will only enter after.

But, what about remodeling/ regenerating projects?
Restructuring projects can be done with very little investment in remodeling. Basic configurations can be destined for alternative uses capable to generate revenue… And if revenue is predictable, banks and investors will make an effort to extend/modify the conditions. And most importantly, the project can again be reconfigured to its original destination once the economy has recovered

Regenerating projects is a win-win situation. Not much additional cash is needed and all involved will benefit.

First Logic can assist you in regenerating near to completion or recently completed developments: www.first-logic.com

Money, Money, Money… Where is the Money?

It’s not that there are not funds available… 

it is the aversion to risk! 

The IMF is actually reporting that the global economy will exceed expectations in 2011. But, whilst individual and corporate finances may be strengthening, the rebalancing of credit and investment portfolios will be ruled by an aversion to risk.

Most funders/ bankers/ investors have been trying to reduce their exposure to real estate over the last two years, and their blood pressure skyrockets at the mere mention of another non-liquid real estate deal.

Hotel RevPars throughout the European capitals and the major cities of the US are now recovering at levels unseen for the last two years. Yet mixed-use hotel/residential projects that have proved healthy are still experiencing major problems re/negotiating loans with only a minority capable of securing required funding. In general, the weather forecast for the hospitality, leisure and residential tourism industry still reports "frequent showers with intermittent storms" and so, right now, bankers will not be prepared to lend an umbrella until the industry is looking decidedly sunnier.

So, how to attract the money?...

We must start to bet on the duration of the production cycle.  Many projects that were started in 2008 have suffered from a lack of liquidity during 2009-2010 that has resulted in a slow-down or a total halt that will only pickup once the market has fully recovered. This acts as no surprise. We have seen this stop-go situation several times in the last 30 years and the market will pick up (at reasonable levels) within the next 18 months. Therefore, some selected projects restarting now could be ready to be completed by 2012-2013 – a moment in which the market should be in full recovery. The key question is how to assure lenders/ investors that sales and revenue will be there and they will get repaid… and for this, one must go back to basics and trust in three major truths:

• Location, Location, Location
• The power of the brand
• Productivity and return

The best product that unites the above is the Branded Residences. They attract customers with powerful brands, running with operational agreements/ condo-hotels that provide a source of revenue. Additionally, the nature of the business requires them to be in the right location.

From a funder point of view, they provide a higher level of liquidity (being secured by the brand and the market niche) when compared to standard assets. But, most importantly, they grant an additional level of security by bringing a built-in source of revenue. Indeed, even if sales are sluggish in the initial stages, the operation will provide the revenue required to cover payment of at least the interests from day one.

Hence, for Buyers and Investors, the Branded Residences concept provides overall solidity to the project. And, in the same way that the brand serves the final client and the operator, it does also attract the banker/funder as it buffers many of the risk factors.

First Logic understands, implements and manages the Branded Residences concept. 

Tunisia: riots to bring increased opportunities?

After 23 years of rule, Tunisian President, Zine al-Abidine Ben Ali, has been ousted. The unrest was instigated by a single protester who set himself on fire following the confiscation of his stock (police claimed that he had been selling vegetables without a license). Whilst this seems an extreme response to unwarranted police rule, the Tunisian people have been driven to desperate actions due to, amongst other things, a crisis of unemployment. Job opportunities in Tunisia have been slashed due to structural reforms and the country's free-market policies.

Much of the world has been protected from the inequalities in Tunisia. The popular tourism destination reported a total of $US 3 million receipts in 2010. It possesses a pleasant Mediterranean climate, beautiful beaches and historic architecture. So, with tourists fleeing and incoming flights being cancelled for the foreseeable future (the Foreign Office advises against anything other than essential travel) will the riots bring more or less opportunities?

Whilst real growth has slowed in Tunisia over recent years due to a decrease in European import demand, in general the economy has proved to be stable. World Bank recently predicted a GDP rise of 4.8% for 2011, but this now seems less likely.
 

Obviously this is not the first time that a tourism destination has been hit by internal conflict. The riots in Greece last year saw costly widespread damages and business relocations. And the adverse effects of the LA riots back in 1992 amounted to nearly US$4 billion. Any signs of violence also lead to an increase in the risk rating which influences lower rates.
 

However, in 2009, it was forecast that the Thai tourism market would shed 200,000 jobs following street battles in Bangkok – having an almost immediate impact on the property industry. But the withdrawal of the transfer fee, stamp duty and business tax exemptions helped to see property prices in Bangkok increase during 2010 and tourism receipts continue to rise.
 

It does indeed seem that the promise of sunshine is a good remedy for the fright of domestic unrest but any negative factors in such a competitive market cannot be overlooked. Tunisia’s ultimate strength may be in the spirit of its citizens who are certainly gathering much international support. President Obama states “I applaud the courage and dignity of the Tunisian people. [I urge] the Tunisian government to respect human rights, and to hold free and fair elections in the near future that reflect the true will and aspirations of the Tunisian people” He continues by saying “I have no doubt that Tunisia's future will be brighter if it is guided by the voices of the Tunisian people.”



First Logic applies sound research and market analysis to create projects that benefit the investor and the surrounding community www.first-logic.com


Brazil: A season for thought

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Brazil is a compelling option for anyone considering investments in emerging markets. It is South America's largest economy and it is still reporting steady growth with ADR on the increase.



Overall, Brazil has an enviable array of resources, including agricultural commodities, such as soy, sugar-cane and coffee, huge mineral reserves, major energy reserves (in classical oil & gas but also in non-traditional hydrocarbons), it has a great internal market soon reaching 200M with a huge expansion of middle classes … and in addition, it has world renowned beaches – a key factor for most international investments.



These beachside locations can be divided into three distinct areas…

The Northeast is widely known as a destination for European sun-seeking holidaymakers (Natal, Recife, etc). But, although it benefits from a year-round benign climate ­– with no hurricane season – it tends to compete with consolidated markets such as the Caribbean, Pacific Mexico and the Mayan Riviera where there may be a language affinity and/or shorter flight-time.



Central Brazil includes the more characterized destinations, such as Rio de Janeiro. But from a sun-worshipping point of view, the weather is unreliable as Summer has a tendency to be rainy and murky and Winters can be cool.



Further south, Brazil has some fantastic spots, such as the State of Santa Catarina. The region, as a whole, has great appeal for South Americans and Brazilians who flock to locations such as "Floripa" (the capital of Santa Catarina Island) for summer holidays.

Santa Catarina Island includes fantastic beaches, a variety of good hotels, niche attractions (outstanding surf spots) and beautiful colonial villages built by Azorean immigrants. In addition, it also offers remarkable grounds for nautical tourism and acts as a natural stopover for cruisers going both north and south, offering sheltered waters in natural bays and well equipped marinas. 

Whilst investments in Santa Catarina have proven to be highly profitable for the local investor (capable of using capacity during the low season), the short season has proven to be difficult for international chains (weather is only reliable 3 months a year).

The best of both worlds is undoubtedly found in the coast of Bahia State, benefiting from the continually pleasant Northeastern weather. The beaches are beautiful & immaculate with opalescent waters.

Most importantly, Bahia State is among the few world locations that enables year-round tourism as it is accessible for both North & South originating markets: European and North American visitors who looking for a sunny and exotic destination for year end or winter breaks as well as South American visitors in their winter/spring break (June - August).

The capital of Salvador is Brazil’s 3rd largest city and plays host to numerous historic & cultural attractions with a World Cultural heritage centre and annual Carnival festivities. The south opens to All Saints bay reuniting a large area of sheltered water with predictable winds ideal for all nautical sports.

 Close to Salvador, there are well know operational resorts (Praia do Forte, Costa Sauipe,) as well as in the inner bay (though Itaparica is due an upgrade)…and there is still a lot to come: for example, Ilha de Cajaiba within All Saints Bay and Indias Galantes. 



First Logic has assisted tourist destinations in Brazil, Morocco, Middle East & the Caribbean in the market assessment; pre-feasability studies; master planning; successful licensing processes; hotel management agreements with 1st rank hotel chains; implementation, design & marketing of branded residences; finance & funding and overall evaluation & implementation of monitoring systems.

We can help you to analyze your investment and to prove to funders, financers, investors & buyers that their investments have limited risk and significant profit potential

Ensure that your investments have limited risk and significant profit potential. www.first-logic.com