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A Chinese property magnate is close to breaking London’s house-price record with the purchase of a 45-room mansion in Knightsbridge for more than 200 million pounds ($262 million).

The private family office of Cheung Chung Kiu has agreed to buy the palatial home at 2-8a Rutland Gate, overlooking Hyde Park, a spokesman said in an emailed statement. The deal would be a bright spot for the U.K. capital’s moribund luxury property market, and a sign that the world’s wealthiest are being lured by the weak pound as the U.K.‘s exit from the European Union draws near.

The sale price is set to be 210 million pounds, according to a person with knowledge of the transaction who asked not to be identified because the terms aren’t yet public. It would be the biggest ever for a house in the U.K., eclipsing the 140 million pounds reportedly paid for a country house in Oxfordshire nearly a decade ago.

It would also be one of the richest deals worldwide, topping the $238 million that Ken Griffin, founder of hedge-fund firm Citadel, paid last year for a penthouse in Manhattan.

Cheung is the founder and chairman of CC Land Holdings Ltd., a Hong Kong-listed property company that mainly invests in western China and has been active in the U.K. since 2016. In Britain, CC Land is best known for buying the “Cheesegrater” skyscraper, formally known as the Leadenhall Building, in London’s financial district. The private purchase of the house in Knightsbridge was brokered by Beauchamp Estates.

The property, close to London’s best known luxury residential development One Hyde Park and department store Harrods, was once the home of Rafic Hariri, the former prime minister of Lebanon, who was assassinated in 2005. It also served as the London home of Prince Sultan bin Abdulaziz Al Saud, the late crown prince of Saudi Arabia.

The seven-story white stucco house provides 62,000 square feet (5,760 square meters) of living space, about 7% more than an American football field. It was originally built in the 1830s as a terrace of four townhouses, but in the mid 1980s the terrace was remodeled into a single Italianate private palace.

The house has a series of grand state rooms, with bullet-proof windows, several passenger elevators, a swimming pool, private health spa and gymnasium and underground parking.

 
 
This article was originally published in Bloomberg:
https://www.bloomberg.com/news/articles/2020-01-10/london-mansion-for-over-262-million-set-to-shatter-u-k-record

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Global real-estate consultancy Knight Frank just released the latest edition of its Prime Global Cities Index, which tracks luxury residential real-estate markets around the world, with data current as of the close of the third quarter of 2019.

Moscow, Russia, takes the top spot as the fastest-growing luxury real-estate market in the world, showing an 11.1% jump in prime property prices over the past year and a 1.3% bump in the past three months alone. Following in second is Frankfurt, Germany, which reported a 10.3% jump in prime prices over the past year, though it had no change within the past three months.

Keep reading to find out the 15 fastest-growing luxury real estate markets in the world, arranged in order of increasingly large growth.

15. Beijing, China

12-month change: Increased 3.3%
3-month change: Decreased 1.2%

14. Tokyo, Japan

12-month change: Increased 3.3%
3-month change: Increased 2.5%

13. Edinburgh, Scotland

12-month change: Increased 3.4%
3-month change: Increased 0.9%

12. Jakarta, Indonesia

12-month change: Increased 4.1%
3-month change: n/a

11. Paris, France

12-month change: Increased 4.2%
3-month change: Increased 1.9%

10. Madrid, Spain

12-month change: Increased 4.2%
3-month change: Increased 1.0%

9. Delhi, India

12-month change: Increased 4.4%
3-month change: n/a

8. Zurich, Switzerland

12-month change: Increased 4.5%
3-month change: Increased 0.8%

7. Geneva, Switzerland

12-month change: Increased 5.6%
3-month change: Increased 0.2%

6. Guangzhou, China

12-month change: Increased 6.2%
3-month change: Increased 1.8%

5. Berlin, Germany

12-month change: Increased 6.5%
3-month change: n/a

4. Manila, Philippines

12-month change: Increased 7.4%
3-month change: Increased 3.0%

3. Taipei, Taiwan

12-month change: Increased 8.9%
3-month change: Increased 1.4%

2. Frankfurt, Germany

12-month change: Increased 10.3%
3-month change: n/a

1. Moscow, Russia

12-month change: Increased 11.1%
3-month change: Increased 1.3%

This article was originally published in Business Insider:
https://www.businessinsider.com/fastest-growing-luxury-real-estate-markets-around-the-world-2019-11

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More houses were bought for north of $25 million on Manhattan’s 57th Street in the last five years than on any other road in the world, according to a study published on Tuesday by broker Knight Frank. The corridor of skyscrapers south of Central Park edged Mount Nicholson Road in Hong Kong’s Peak district on the number of so-called ultra-prime home sales, though its average sale price of $38.5 million was far exceeded by the Hong Kong street’s $81.8 million.

New York has seen a glut of super-luxury developments in the past five years as developers take advantage of leaps in engineering that have allowed pencil-thin towers to be constructed on modest plots. Streets with high numbers of new luxury developments topped the rankings globally as the world’s wealthiest flocked to projects with the most modern facilities and designs, Knight Frank global head of research Liam Bailey said.

This article was originally published in Bloomberg:
https://www.bloomberg.com/news/articles/2019-12-17/new-york-billionaires-row-ranked-world-s-top-luxury-street

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Vacuum king Sir James Dyson has bagged a triplex condo atop Singapore’s tallest tower, property records show.

Spread across the top three floors of the 290-meter Tanjong Pagar Centre, the so-called “super penthouse” is the highest residence in Singapore, and had a sky-high asking price to match. The lavish apartment, part of the so-called Wallich Residences at Tanjong Pagar, was the most expensive home on the market in the city-state when it hit the market in 2017 for S$108 million (US$79.5 million).

Mr. Dyson, 72, a British billionaire who invented the bagless vacuum cleaner and founded his eponymous appliance brand, and his wife, Lady Dierdre Dyson, recently closed on the lofty home, according to a title transfer filed with the Singapore Land Authority dated June 20.

The Dysons reportedly paid S$73.8 million, nearly one-third less than the building’s developer, GuocoLand, originally wanted for the home, according to Singapore’s Business Times.

At that price, it has set a record for the biggest condo sale in the city, beating out a S$60 million spread at the “Transformers”-like Sculptura Ardmore building.

Mr. Dyson’s purchase follows an announcement that his company plans to relocate to the city-state from the U.K.. He will join roughly 24 other billionaires who call the financial center home, according to data from Savills.

This article was originally published in Mansion Global:
https://www.mansionglobal.com/articles/billionaire-inventor-james-dyson-buys-singapores-most-expensive-listing-205010

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Singapore is now ranked No. 1 for real estate investment prospects in terms of price increases in 2020. Hong Kong, buffeted by months of violent anti-government protests, has plunged to the bottom of the list from 14th place in 2019. That’s according to an Urban Land Institute and PricewaterhouseCoopers LLP report released Tuesday into property trends in the region.

The city-state has benefited from an uptick in interest among investors who are avoiding China and Hong Kong, which are seen as “geopolitical flashpoints.” Singapore ranked second-to-last in the list of 22 centers as recently as 2017, beaten out by cities including Tokyo, Bangalore and Sydney as vacancies surged and rents declined. In 2017, Hong Kong ranked 18th.

Over the past few quarters, apartment prices have rebounded in Singapore, signaling resilience in the residential market, while the office sector has largely absorbed the oversupply.

Hong Kong’s struggles bode well for Singapore, at least in the short term, Urban Land Institute CEO Ed Walter said. “A lot of theory in investing is less about what was, versus what is or what is going to be,” he said.

Hong Kong’s plunge to the least-favored real estate investment destination next year comes as the city’s tourism and retail sectors take a battering, impacting economic growth.

Investors scouting for deals, however, will be disappointed. Commercial and residential property owners alike will probably “opt to sit tight and wait out the storm” given they’re in general not highly leveraged, the report said.

From a purely residential-investment outlook for 2020, Ho Chi Minh City is a bright spot, according to the report, which canvassed 463 real estate executives. Bangkok, Singapore, Shenzhen and Sydney round out the top five.

This article was originally published in Bloomberg:
https://www.bloomberg.com/news/articles/2019-11-12/singapore-beats-out-hong-kong-for-property-investment-prospects

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This report was originally published on LinkedIn:
https://www.linkedin.com/feed/news/malls-are-the-new-offices-5003290

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Although it is known as one of the most liberal cities the country, and is a long-term hub for trade and commerce, the third most populous metropolis on the planet and home to over 23 million souls is not exactly the most obvious bet for investment in real estate.

It is beset by chronic air pollution; the streets are often blocked due to choked sewerage lines and observance of traffic rules on the teeming roads is sketchy at best. Despite these issues, however, the city by the Arabian Sea has become one of the shining lights of a housing boom that has seen Pakistan serve notice of its status as a key potential market for international developers.

There are numerous reasons why analysts are tipping developers to beat a path to Pakistan’s door – not least initiation of work on the USD46 billion China-Pakistan Economic Corridor. According to property web portal Zameen.com, average land prices in Karachi rose 23.4 percent in 2016. In Lahore, meanwhile, land prices increased 13.6 percent in the same year.

Indeed, confirmation of the country’s status as a rising star came in May 2017 when Morgan Stanley Capital International (MSCI) announced the upgrade of its classification to the emerging market (EM) from the frontier market (FM) in its semi-annual review. The reclassification is set to result in greater inflows of funds from global investors who now have access to a huge EM pool of USD1.5-USD1.7 trillion.

Considering the improving security situation in Pakistan, institutions like the World Bank, the IMF, Moody’s and S&P have also upgraded the country’s status.

“Local investors who were previously investing in markets like Dubai are now willing to invest instead in Pakistan,” says Hammad Rana, associate director of sales and investment advisory for Colliers Pakistan. “If the security situation continues to improve we foresee demand increasing across the board. All this bodes well for the market and for any potential foreign investors or developers looking to enter.”

Pakistan is far from the only nation in the region that carries the promise of significant returns for intrepid developers and investors willing to brave the inherent risks of entering relatively virgin territory.
International developers often need to consider the possibility that a prospective goldmine can just as easily become a veritable minefield

In South Asia, Sri Lanka and Bangladesh are both picking up a head of steam. Elsewhere countries such as Mongolia, Myanmar and even Cambodia – despite a troublesome glut of supply in the capital Phnom Penh – present significant allure due to their untapped potential.

Yet with glittering opportunities come significant pitfalls. Collectively the less developed real estate markets in the region can blithely be grouped in the “up and coming” bracket. However, each one presents its own political, legislative and macro-economic challenges, from opaque governance and lax controls to arcane policies that protect the status quo. Therefore, international developers often need to consider the possibility that a prospective goldmine can just as easily become a veritable minefield.

When it comes to the simplicity of doing business as an international developer, certain markets score better than others. Mongolia, for instance, is widely known for the foreigner-friendly regulations of its real estate market.

More: Mongolia’s former pro-wrestler president could save its property sector

“Put simply, Mongolia has some of the most conducive real estate investment laws in Asia,” says Oliver Nicoll of Asia Pacific Investment Partners (APIP), a frontiers market specialist agency.

“Capital gains and stamp duty for purchasers is set at zero. Income tax rates are notably low and there is no distinction between locals and foreigners in terms of ownership of immoveable property. Combined with latent demand for housing, investors and developers benefit from a supportive environment when developing in the country.”

Indeed, experts have long identified the landlocked nation as a star among Asia’s emerging markets due to the vast mineral wealth – estimated at as much as USD2.5 trillion – that lies beneath its endless grassy steppes.

Although the economy in the country has been battered in recent times due to the worldwide crash in commodities, analysts believe that the nation’s long-term wealth (and, therefore, the growth potential for real estate supply in the capital Ulaanbaatar) is assured.

“Taking a long view, it seems likely Mongolia will benefit from the kind of wealth and investment experienced by other commodity rich nations,” adds Nicoll.

Not every nation is fortunate enough to be sitting on a goldmine like Mongolia is, but other emerging markets around Asia have their own trump cards to play.

Myanmar has opened itself up for Foreign Direct Investment (FDI) after being closed to the outside world by the former military dictatorship. Sri Lanka offers 1,600 kilometres of pristine coastline and an ever-improving infrastructure. Cambodia, meanwhile, has become known for its stability under strongman leader Hun Sen, its consistent economic growth of around 7 percent annually and for its expanding middle class – especially in the capital Phnom Penh.

Stable governance and relaxed regulations make Cambodia’s capital Phnom Penh a favourite among Asia’s emerging real estate markets

Stable governance and relaxed regulations make Cambodia’s capital Phnom Penh a favourite among Asia’s emerging real estate markets

Linking all these nations – as well as other, more developed, markets in the region is China’s One Belt, One Road initiative, with its multi-trillion dollar bid to reshape the world through a new network of maritime and landside links.

Even better for international developers is the fact that, in many of these nations, a lack of experience and chops on the part of local developers opens up some serious opportunities.

Nevertheless, the process of entering an unfamiliar market – with its myriad regulations, cultural sensitivities and quirks – is rarely plain sailing.

In Pakistan, the arrival of big international developers including Emaar, Meinhardt and Al-Ghurair was greeted with much fanfare. Local investors believed that foreign companies would deliver better quality and deliver on time. That has not been the case.

For example, Crescent Bay, Emaar’s showpiece project in Karachi was launched in 2008 with the promise of delivery of the first two apartment towers by 2011. As of December 2017, not a single apartment has been delivered.

Foreign developers elsewhere have achieved better results. Despite its huge potential, Myanmar is regarded as one of the more difficult markets in Asia. There are numerous disadvantages to doing real estate business in the huge nation – the largest in mainland Southeast Asia – according to experts. These include a lack of middle class, limited availability of capital for buyers, little access to quality materials and no allowance for international developers.

More: The rise of Southeast Asia’s sleepiest capital

These barriers, however, failed to deter Singaporean developer Keppel Land, which marks 25 years of doing business in Myanmar next year after entering the country in 1993. The firm currently has a 40 percent stake (alongside Myanmar conglomerate Shwe Taung Group) in Junction City Tower, a 23-storey office tower that is part of Junction City, a mixed-use development which will also comprise the five-star Pan Pacific Hotel, a shopping centre and residential towers. It also has a 40 percent stake (again with Shwe Taung Group) in phase two of the Junction City project, which will offer a gross floor area of around 50,000 square metres via premium serviced residences and offices.

“Through the years, we have been steadfast and have since developed keen market insights, understanding of the local culture as well as forged strong relationships with local partners, contractors and the local government,” says Sam Moon Thong, President Regional Investments for Keppel Land of its strategy for success in Myanmar. “This puts us in good stead to participate in Myanmar’s growth in the years to come.”

In Sri Lanka, meanwhile, the biggest noise in terms of foreign developer activity has been from China. CHEC Port City Colombo, a subsidiary of state owned China Communications Construction Company is investing USD1.5 billion in reclaiming 270 hectares of new development land adjacent to Colombo Port for a new city within a city – the biggest and most controversial infrastructure project in Sri Lanka’s history due to its informal association with the One Belt, One Road initiative.

Chinese developer Avic International, meanwhile, is behind Astoria, a large four-tower residential project in Colombo. It’s not just Chinese firms looking to get a slice of the action in the booming island nation though. Indian developer Indocean, Japanese firm Belluna and Singaporean company Silverneedle Group are all involved – either individually or as part of a joint venture – in projects in Colombo.

Although there has been controversy about the extent of Chinese influence, projects such as the reworking of Colombo’s port area are indicative of the growing status of Sri Lanka as a property player

Although there has been controversy about the extent of Chinese influence, projects such as the reworking of Colombo’s port area are indicative of the growing status of Sri Lanka as a property player

Although some analysts contend that the Colombo market – especially at the highest end – is nearing the point of saturation, there is a feeling that Sri Lanka’s growing geo-political significance and its potential for tourism could make it a major player in years to come.

“Sri Lanka poses a whole raft of challenges for new-to-the-country real estate developers,” says Steven Mayes, managing director of JLL Sri Lanka. “These include a very conservative government lacking in transparency and consistency and somewhat arcane policies that protect, rather than challenge the status quo. Other challenges include high interest rates, a lack of skilled labour and the need to import the bulk of construction materials.”

On the other hand, Sri Lanka is rapidly gaining in geo political significance as China invests heavily and as regional investors jockey for prominence, opening-up vast tracts of the country with new infrastructure, there are tremendous opportunities for the more adventurous developers, particularly in the hospitality sector.”

Indeed, this push and pull between extreme negative and outstandingly positive conditions encapsulate the gameplay in Asia’s emerging nations. From Lahore to Ulaanbaatar, Kandy to Karachi, property development is a high-stakes hand. Numerous elements ranging from security concerns to labyrinthine regulations mean there’s always a risk of folding. But, for those who play their cards cannily, the prize pots can be vast.

This article originally appeared in Issue No. 146 of PropertyGuru Property Report Magazine:
http://property-report.com/detail/-/blogs/what-you-need-to-know-about-asia-s-final-frontie-4

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COLOMBO (IDN) – President Xi Jinping’s One Belt One Road (OBOR) initiative, unveiled in 2013, provides Sri Lanka with a unique opportunity to fast track its economy along the path to development.

An investment bonanza that is being made available under the OBOR (also referred to as the Belt and Road) initiative, especially the Maritime Silk Road, could revive the glory days of the ancient Silk Route for Sri Lanka.

Today, the Sri Lankan economy is not progressing as it should. It is sluggish and, slowly, it appears to be losing its lustre, except in certain limited sectors. There are many reasons for this. Chief among them is the inadequacy of inward investment flows.

China’s OBOR grand plan, if prudently managed, provides the countries of the region, especially Sri Lanka, which is fortunately sitting strategically in the middle of the Indian Ocean and the Maritime Silk Road, the capital to propel their economies forward.

China’s OBOR investment ambitions, focused mainly on cooperative infrastructure and connectivity enhancement, have been compared with the post-World War U.S. Marshall Plan. But the funds available under the OBOR make the Marshall Plan pale in to insignificance.

The Marshall plan provided over USD140 billion, at 2017dollar values, and was designed to assist Western European economies recover from the devastation of the World War.

The OBOR expects to make available a stunning USD 4-8 trillion. While the Marshall Plan achieved much, the OBOR funds can be expected to realize substantially much more by creating a vast region of shared prosperity, the clear beneficiaries being a large number of developing countries.

The Marshall Plan allowed the United States to export its currency. The U.S. dollar was used to provide the subsidies, while European countries purchased U.S. goods with their own currencies. Over time, the U.S. dollar became a tool for stability; funds provided by the plan created the basis for future frequent easing of trade restrictions.

Additionally, the Chinese Yuan has now been recognised as a reserve currency by the IMF and China appears to be increasingly moving towards international payments in Yuan. The IMF elevated the Yuan, also known as the renminbi, or “people’s money”, on the same day that the Communist Party celebrated the founding of the People’s Republic of China in 1949.

The Yuan joins the U.S. Dollar, the Euro, the Yen and British Pound in the IMF’s special drawing rights (SDR) basket, which determines currencies that countries can receive as part of IMF loans. This would be the first time that a new currency has been added since the Euro was launched in 1999. It is an impressive achievement as the Yuan had very little credibility as recently as thirty years ago.

Today, China is the world’s largest economy by purchasing power parity, not the U.S. Its per capita GDP exceeds USD 15,500. This is a massive leap from less than USD 200 IN 1970. Sri Lanka’s per capita GDP is around USD 3800. (It was USD 270 in 1980.)

The outward looking Belt and Road initiative, seeking common prosperity, will have a massively transformative impact on the economies of the vast Asian and African regions encompassing 68 countries with over 65% of the world’s population. It will be a closely related factor as Sri Lanka seeks to realise its own Vision 2025. Vision 2025 provides the development blueprint for the country for the next seven years

The OBOR goal, backed by China’s substantial economic clout, including through the Asian Infrastructure Investment Bank (AIIB) which has 61 state members at present, will create significant opportunities for the entire region on which Sri Lanka should capitalise. Sri Lanka is a member of the AIIB.

Sri Lanka’s abundant potential as an investment destination, especially its location in the middle of the Indian Ocean adjacent to one of the busiest sea lanes in the world and in the middle of the OBOR region, must be leveraged carefully by policy makers for national economic advancement.

The clumsy foreign policy misjudgements of early 2015 must be carefully rectified and left behind. While the OBOR opens up enormous possibilities, Sri Lanka is also in a position to exploit its strategic location in the centre of the rapidly expanding South Asian economic zone.

It is important to remember that Sri Lanka is not alone in the business of seeking to attract foreign investments. The competition in the region is fierce. The vast majority of developing countries have relied on foreign direct investments to spur their development effort. Some have been much more successful than others. The critical difference may lie in the ability to create the necessary policy environment and confidence for foreign investments to be attracted to a country.

Against this background, It is important to create a professional business oriented approach to highlight what Sri Lanka has to offer as an investment destination, encourage foreign investors to think positively of Sri Lanka when making investment decisions, create a better understanding of Sri Lanka’s investment climate and opportunities, including its enormous natural and human potential, and foster closer relations between the Sri Lankan business community and its counterparts overseas. It is no longer a task for amateurs or a matter to be left to chance. Secret deals could enrich individuals but not a nation.

A former foreign minister has, to his credit, spoken of the need to make business, the business of diplomats. A reliable and transparent policy framework must be put in place and a professional facility to enable the transmission of investment related information, both inward and outward, must be instituted.

The BOI should be revamped. Petty political point scoring should be avoided for the sake of the future of the country. There are other successful models that we could emulate. Some countries from our own region have effectively attracted foreign investments to speed up their development process and even left the developing country status behind.

Successful SEIC 2017

It is with this in mind that the successful Social Economy and Investment Conference 2017 (SEIC 2017) was organized at the Kingsbury in November 2017. Judging by the media response, the key goals of SEIC 2017 were realized and it is proposed to organize a bigger event in 2018.

The expectation was that with greater awareness of the investment opportunities in the country, and a familiarity with the investment climate, more foreign investors would be attracted to Sri Lanka. The many contacts that were fostered at SEIC 2017, are expected to bring rewards to Sri Lanka and also to the foreign investors, assisting in Sri Lanka’s efforts to climb up the competitive ladder of development.

Some of the over sixty businesses from overseas attending the Conclave went on tours of the country afterwards, and had the opportunity to see the possibilities that Sri Lanka has to offer first hand.

A significant number of the participants at SEIC 2017 came from overseas, especially from China. Approximately 45 large Chinese business concerns and the China Celebrity Club were represented. Others came from Wall Street, London, Geneva, Dubai, India, Hong Kong, Singapore and Amsterdam.

The expectation is that these leaders of business will return with positive investment plans and would also bring with them advanced technology, higher skills and modern management techniques. Investments unaccompanied by these attributes will not do much to help to rapidly advance the country economically

Underlining the region-wide interest, SEIC 2017 was endorsed by the Federation of Industry and Economy of China, the Colombo Chamber of Commerce and the Indian SME Chamber of Commerce.

Like the Chinese businesses represented at the Conclave, other business communities from elsewhere are also expected to respond positively to the opportunities that emerged. SEIC 2017 sought to introduce this land of possibly endless potential, the land that gave the English language the word “serendipity”, to the world and hoped that mutually beneficial prosperity would follow.

‘Unfairly’ endowed by nature

Sri Lanka itself, despite its relatively small size, could be described as being unfairly endowed by nature. From its miles of unpolluted golden beaches, lush green countryside, misty tea covered mountains, awe inspiring archaeological sites that bear witness to a rich and glorious past, the variety of wild life, that includes the biggest animal on land, the elephant (in large concentrations), and the biggest in the ocean, the blue whale, a rich and potentially vast continental shelf, the valuable trove of minerals, including the rarest of gems, ilmenite and graphite, its spiritual background to its well educated, easily trained and smiling people to whom hospitality is second nature, this country is a visitor’s dream. An investor’s ideal.

The country enjoys a comprehensive state funded free education system that has resulted in a first world standard of literacy (and high levels of IT competency) and a birth to death state funded free health care system which has given the population an existence largely free of communicable diseases and a first world life expectancy.

The cellular phone penetration in Sri Lanka is the envy of more developed countries and could be leveraged to assist the country further in its efforts to develop faster. These are assets that should not be squandered or feebly surrendered to other countries to exploit. The large number of Sri Lankan professionals working overseas, trained under the country’s free education system, bears testimony to the absence of opportunities for them to find work locally.

A rewarding glimpse of history

Historically, traders and casual visitors waxed eloquent on Sri Lanka’s potential. Ibn Battuta, the Moor from Tangiers, who visited the island in the 14th century, was not wrong by much when he observed that this was the most beautiful island on earth and was only 40 leagues from paradise.

That paradise, which has not been lost yet, must be preserved despite the race to modernize, and achieve a higher level of sustainable prosperity for the people of the country as they seek to climb up the development ladder.

The map of the world drawn by the Alexandrian cartographer Ptolemy who had such an exaggerated impression of the island, Taprobane, made it look much bigger than India, illustrating the then prevailing impression of Sri Lanka in distant lands. The Greeks called this land Serendib. Today an impression of this lucky island is being created that is positive for the benefit of its people.

The copious writings of the fifth century scholar monk Fa Xian from China who spent a number of years in the ancient capital, Anuradhapura, tell a tale of bygone prosperity and complex international diplomatic and trading relations, especially with China. Fa Xian carried a ship load of religious texts from Sri Lanka to China. Sri Lanka had developed important relations with the Middle Kingdom from early days and memories persist.

It is clear that Sri Lanka attracted waves of traders, businesses and holy monks seeking the sublime teachings of the Buddha over the centuries, from far afield as ancient Rome and Greece on the one side and Khan Balik in China on the other, not to mention rapacious invaders.

Those who came from far, especially from China, not only left detailed observations which have been used to corroborate our own historical records but also bits and pieces of their own cultures, enriching ours. The Chinese traders and Shaolin monks probably introduced Chinese martial arts. One word in Sinhala for the indigenous martial arts is Cheena – Adi. This is too much of a coincidence. The lions at Yapauwa are very much Chinese influenced.

The troves of Chinese coins and porcelain being recovered from various parts of the country suggest a thriving trade. A large number of Chinese vessels lie beneath our waters, having sunk in rough weather. While traders from distant lands sought mutual prosperity, invaders sought and succeeded in grabbing the country’s wealth and stunting the development of the people.

The OBOR initiative invokes memories of the multitude of traders who visited us in the past and gave us the opportunity to prosper.

China impacting

Already the Chinese largesse is impacting on a swath of countries and regions.

Pakistan, described as an all weather friend by the Chinese president, has been promised USD 54 billion in investments for infrastructure projects. China-Pakistan Economic Corridor is the flagship project under this initiative. The Bangladesh-India-China-Myanmar corridor links China with the Bay of Bengal.

Africa, is reaping the benefits of China’s investments and many African economies are prospering for the first time in years. Analysts ascribe this development largely to Chinese investments in infrastructure. By 2014, Chinese investments in Africa had risen more than 20-fold to USD 20 billion according to the China Africa Research Initiative at Johns Hopkins School of Advanced International Studies in Washington.

It is likely that this trend will accelerate as China also learns from experience and responds more to the aspirations of the people of the continent. Since 2000, Ethiopia where the African Union is headquartered, has been a major recipient of Chinese loans to Africa, with financing for dams, roads, railways and manufacturing plants worth more than USD12.3 billion, more than twice the amount loaned to oil-rich Sudan and mineral-rich Congo.

The OBOR concept while raising some concerns, especially among the former colonial powers who ruthlessly ravaged Africa and Asia when they had the opportunity, can be used by countries of the Indian Ocean region and beyond to enhance their mutual prosperity without being constrained by the fears and suspicions inculcated by the colonial past. More importantly, without territorial occupation, racial discrimination and forced alteration of cultures.

Further East, Australia received AUD 15.4 billion in Chinese investments involving 103 deals. Australia has been a major destination for Chinese investments after the U.S. and Europe and investors have grabbed hotel assets, real estate, agri businesses, vineyards, health care, infrastructure, etc. giving rise to a latent xenophobic anti-Asian and anti-Chinese sentiment. The port of Melbourne is now controlled by a Hong Kong-Chinese concern.

A significant share of Chinese investments has also headed to Europe. The EU whose second largest trading partner is China, received Euro 35 billion in Chinese investments in 2016 alone. Iconic facilities such as the Toulouse Blagnac airport where the Airbus 380 is assembled (sold to the Shandong Hi-Speed Group and a Hong Kong investment firm while Emanuel Macron was the Finance Minister), Volvo (to Geely), the AC Milan football club, the Piraeus harbour (owned 70% by COSCO), German robot manufacturer Kuka (now owned by a Chinese company), not to mention a number of historic vineyards and buildings are in Chinese hands.

Chinese companies are building the rail link between the Piraeus Harbour and Serbia and Hungary. Chinese trains carrying Chinese produce now travel through the Euro-Asian landmass, the modern Silk Route, to European capitals, including London, and also link up with Tehran. Natural gas from Central Asia flows along four pipelines to China.

The U.S. has received USD 90 billion since 2007. In New York, Chinese interests have acquired the Waldorf Astoria.

However, China has also tightened overseas investments, especially in real estate, hotels, film and entertainment and sports clubs, to reduce excessive capital outflows and foreign exchange risks. Those countries seeking to benefit from the Chinese gravy train should be conscious of this development.

The expansion of China’s economic and political reach has caused more than a few adverse reactions in certain international circles, especially among powers which had been used to dominating the world stage. France, Germany and Italy are leading an initiative to require the EU to scrutinise Chinese investments in Europe more carefully.

U.S. hostility towards China

Recently, it has been said that America’s focus on terrorism as the main threat has now shifted to Russia and China. According to a new Pentagon strategy released recently by Defence Secretary Jim Mattis, the United States must build up its military to prepare for the possibility of a conflict with Russia and China.

The U.S. persists in viewing the world in terms of hostile competitors. Given that China and the U.S. are closely intertwined in a complex economic embrace, the use of such terminology is curious.

The U.S. is China’s major trading partner. The bilateral trade in 2016 was worth USD 579 billion while the U.S. trade deficit was over USD 379 billion. China is the main lender to the U.S. and holds over USD 1.2 trillion in U.S. securities. Literally China has lent funds to the U.S. to purchase relatively inexpensive Chinese manufactured products to keep U.S. purchasing costs low and living standards at a high level.

China is the biggest market for many U.S. agricultural products, sustaining large sectors of U.S. agriculture and millions of Chinese tourists and students visit the U.S. annually.

Any conflict between the two countries, including a trade war, would do irreparable damage to both, not to mention the rest of the world. The two countries have a unique opportunity in history to get away from historical power based competition to cooperate for the common good.

Cooperation cannot be achieved in a hurry but the opportunity is there. Many aspects of Chinese culture, including food, eating habits, traditional health care, martial arts, dress, the arts, philosophy have been seeping in to Western and American life over the years. The U.S. has been an inspiration to China on liberal ideas, democracy, transparency, legal propriety, management style, sports, music, film, fashion, etc.

All these ideas will not be adopted by China overnight. Nor will the Chinese style of living or doing business be adopted by the West any time soon. It will take time. There are clear opportunities for teaching the two cultures to each other. Instead of breast thumping and posturing, it will serve humanity’s interests better in the long run if the two giants of the world could cooperate for mutual betterment.

India’s sensitivities

Similarly a major concern is India’s sensitivities regarding China’s outreach. The fact that the two countries fought a border war in 1962 and have skirmished along a disputed colonial border have not been forgotten by policy makers. But India’s sensitivities have impacted on the thinking of the smaller countries of the Indian Ocean region. India’s growing relationship with the U.S. has clear military implications and India does not camouflage this realignment nor does the U.S. The U.S. has recently agreed to sell Guardion drones to India for maritime surveillance.

Unfortunately, the need to convey public messages of this nature to each other appears to encourage the hawks further. India, while strengthening its naval capabilities in the Andaman and Nicobar Islands, has also quietly developed strategic relations with Australia and Japan, participating in regular joint naval exercises. India maintains a naval base in the Seyschelles and has concluded an agreement to facilitate the use of Sigapore’s naval facilities by its navy.

It seems unlikely that China, even if it wished, would be able to challenge nuclear-armed India in the Indian Ocean for decades to come. India enjoys overwhelming military superiority in the Indian Ocean. Furthermore, the U.S. maintains a mammoth base on Diego Garcia to the south of Sri Lanka. It is highly improbable that Chinese policy makers would consider challenging the existing power arrangements in the Indian Ocean any time soon, if ever. They have not done so since Admiral Zheng He’s flotilla entered the Indian Ocean in 1405 and returned many times till 1433.

To prepare to meet a challenge from China would result in expending scarce resources for a confrontation that is unlikely to happen. To be obsessed with the thinking of a bygone era and continue to rattle ones weapons to demonstrate superiority may not necessarily serve the needs of today when millions simply desire a better life, schools for their children, housing with at least essential amenities and appropriate employment.

Europe learned this lesson after the Second World War and focused its attention on improving the lives of their people through cooperation. They have succeeded to an impressive extent. We in the Third World should follow this wonderful example.

Sri Lanka, as a small neighbour eager to ascend the development ladder in the shortest possible time is caught between the sensitivities of our closest neighbour and the need to develop stronger economic relations with another. There is little doubt that as a long time friend and a country that has provided much of Sri Lanka’s religious and cultural inspiration, Sri Lanka must create and maintain an environment that makes India comfortable.

The big neighbour must feel the reassurance that the small island to the south will not pose a strategic threat, even in collusion with any other country. It should not become someone else’s large aircraft carrier! Sri Lanka’s own interests will be served well with a reliable relationship with India.

This does not mean subservience or servility or a one-way approach dominated by hectoring and gratuitous advice. The relationship, if it is to be comfortable and sustainable, must be one between two proud sovereign nations. India has a positive role to play as the bigger neighbour to the north. India’s burgeoning economy could provide an outlet for Sri Lankan businesses to expand but over-zealous and rash opening up of our economic doors with no comparable reciprocity could result in Indian industry swamping our businesses.

We must seek our own development path and that might mean seeking to collaborate with whom ever we like, including China. China, coincidentally, is India’s major trading partner. Both the Chinese and Indian leaders have made explicit overtures to each other, both recognizing the opportunities presented by cooperation than by confrontation.

A prosperous and stable Sri Lanka will be an asset to India not an unhappy and resentful neighbour to the south. Sri Lanka’s prosperity through the OBOR will be to India’s advantage as well. India could also benefit extensively from a proactive engagement with the OBOR initiative. [IDN-InDepthNews – 10 February 2018]

This article was originally published in In Depth News:
https://www.indepthnews.net/index.php/opinion/1666-one-belt-one-road-a-unique-opportunity-for-sri-lanka

The post One Belt One Road – A Unique Opportunity For Sri Lanka appeared first on Homes and Spaces.

Infrastructure projects are changing the face of the island. From the Western Province Megapolis to the Bandaranayake International Airport extensions, the government’s major initiatives over the last three years have positioned the insular country front and centre on investors’ radar.

These initiatives are intersecting seamlessly with the private sector’s own efforts. The following are just a sampling of the ventures leading the pivot to modern Sri Lanka:

1. The One

This supertall will truly put Sri Lanka on the map for positive reasons. At 376 metres high, The One will be taller than anything built in South Asia upon its completion in 2021. Jutting out of Transworks Square Colombo 1, the skyscraper will rise beside two no less majestic buildings housing The Ritz-Carlton Hotel and The Ritz-Carlton Residences. Together the edifices will offer 4.5 million square feet in built-up space, including a shopping mall. Residents can protect their units with biometric access systems and even commute in the sky; the project features a helipad.

2. Port City Colombo

The country will at the very least be on China’s map. Port City Colombo, a USD15-billion reclamation project, is both an ongoing extension of the Sri Lankan capital and a strategic maritime link between Asia and Europe along China’s modern Silk Road. It could be the most aspirational sliver of real estate in the city: home to 5.6 million square metres of built-up space comprising grade-A offices, hotels, healthcare amenities, retail and lifestyle destinations, and more. Sprawling for 269 hectares, Port City Colombo will be divided into different precincts: Colombo International Financial City, Central Park, Living Island, Marina and the International Island.

More: Geopolitical jockeying at Colombo financial city

3. Altair

Rising 68 storeys and 240 metres high, Altair will also rank among the tallest buildings in South Asia. Up for wins in the Luxury Condo Development (Colombo) and Luxury Condo Architectural Design categories at the 2018 PropertyGuru Asia Property Awards (Sri Lanka), the project enlisted renowned architect Moshe Safdie no less for design duties. The 404-unit development consists of two towers, one upright and the other seemingly leaning upon it — a future icon of the Colombo skyline, indeed. Pradeep Moraes, director at Indocean Developers, the company behind Altair, is the winner of this year’s Sri Lanka Real Estate Personality of the Year award.

4. Cinnamon Life

Cecil Balmond, the designer behind the ArcelorMittal Orbit in London and the CCTV headquarters in Beijing, is lending his quirky sense of élan to Cinnamon Life, one of the most stylish, futuristic integrated resort developments in South Asia. Cinnamon Life will feature an 800-room, five-star luxury hotel, in addition to 427 premium residential apartments. The development by Waterfront Properties (Private) Limited, a member of the John Keells Group, will also have a 30-storey state-of-the-art office tower; 295,000 square feet of shopping and entertainment spaces; and 115,000 square feet in event venues. Cinnamon Life “will be like nothing Sri Lanka has ever seen,” Balmond said.

More: 6 reasons Colombo is one of South Asia’s best bets for investment

5. Capitol TwinPeaks

Winner of Best Condo Interior Design at the recently concluded 2018 PropertyGuru Asia Property Awards (Sri Lanka), Capitol TwinPeaks are a pair of 50-storey condominium blocks rising above Staple Street in Colombo. The 435-unit twin towers feature curated options for open-plan concepts and closed kitchen layouts. “The colours inside are reminiscent of its natural surroundings, and the Zen garden on the 50th floor is a highlight,” judges at the awards noted. Singaporean interior designer Index Design Pte Ltd ensured high ceilings for both standard and penthouse units alike as well as American walnut hardwood for bedroom floors. The project by Capitol Developers – Sanken Group also won the Highly Commended award for Best Luxury Condo Development (Colombo).

This article was originally published in Property Report:
http://property-report.com/detail/-/blogs/these-5-developments-will-change-the-sri-lanka-landscape-fore-10

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