Harvest Capital CEO Shares His Vision for China's Commercial Property Market with Global Leaders Institute Before the Asia Commercial Real Estate Summit 2011

BEIJING, Nov. 11, 2010 /PRNewswire-Asia/ -- GLI has interviewed Mr. Rong Ren, the CEO of Harvest Capital, one of the speakers of "The 3rd Asia Commercial Real Estate Summit 2011" before the summit.

1. Q: How do you see the commercial property investment market in China? What does it take to capture the immense potential of this market?

A: The trend of commercial property (CP) investment in China is changing fundamentally, and it's moving closer to the international standard. However, it's still a risky asset class as it demands a huge amount of internal expertise to manage these investments. We need not only the knowledge but also the people -- a full house of people -- to effectively manage our CP portfolio. Investors with internal human resources and patience will be best equipped to participate in the steady development of China's CP market.

Harvest launched two China retail shopping mall funds in January 2010. The funds have been very well received by international investors. We are pretty unique in the retail property sector in the sense that we have a team of hundreds of people that physically manage each asset on a vertically integrated basis. We're perhaps one of the very few funds in China that are able to offer this type of investment and asset management service. That's what differentiates Harvest as a preferred partner for investment in China's real estate sector.

2. Q: What are the major challenges for investing in commercial properties in China?

A: Many people in the real estate sector focus only on location, location, location. However, this may overly simplistic in China, given its rapid urbanization and the fast growth of domestic consumerism. Choosing a location is important, of course, but also crucial is the ability to manage the planning and execution phase of the investment. These are the two biggest challenges.

For some projects, regardless of location, if you have the right team of people to plan and then manage them professionally throughout the whole process – identifying the right market positioning -- they can still attract consumers with different shopping habits.

Therefore, as an investment and asset manager, we need to do very careful study of all aspects of an investment.

3. Q: How do you see China's economy going forward in the next five to ten years? What is your strategy?

A: China's economy is undoubtedly going through a structural change — from an export- and fixed- asset driven model to a consumption driven, value-added economic model. In today's China, value-added not only means advanced technology and services, we're now talking about a green perspective. The China market has accumulated enough wealth and knowledge to go through this transitional period. I have full confidence in China's economy going forward, and I am excited to see and embrace all the many wonderful things that are going to happen.

As for Harvest's strategy, China will remain our core market. We have consolidated our strengths. We have a full team of real estate, investment and asset management professionals, a proven track record and a strong network backed by China Resources. We plan to set up specialized property funds to invest in quality office, retail and hotel portfolios, while remaining selective in the type of transactions that we enter into. Last but not least, we have big plans to attract domestic capital.

4. Q: When it comes to green & low-carbon vs. fashion & luxury, which direction would you go for?

A:I can't see much conflict between the two concepts. Green and low-carbon concepts can be fashionable and aesthetic too. However, people should understand that green concepts can only thrive if they make economic sense.

The Chinese government, to its credit, has set very high standards for green buildings. Today, many developers and builders are dedicating great effort to reach even higher standards and exceed the government's benchmarks. Harvest is a pioneer in green buildings in China, and environmental considerations have been a core aspect of many of our projects.

To drive this process further, we will soon appoint an Environmental Planning Director within the company. We are confident that the green concept and commercial success can co-exist.

5. Q: What is your passion?

A: I have a great passion for buildings. I can't stop looking at buildings, especially when I am traveling. Sometimes, I imagine how I could turn them into green buildings.

I also love my family, and especially playing with my adorable three-year-old daughter. She really keeps me on my toes!

I consider our Harvest team as family members, too. I always take good care of them, making sure they have a good working environment and encouraging them to have a balanced life.

About GLI

GLI (Global Leaders Institute) is an unbiased, independent company dedicated to organizing business-to-business conferences and seminars for senior-level business executives. We provide learning and networking settings for some of the business community forward thinkers those who occupy the highest levels in their companies and organizations. We provide 60 annual conferences across energy, finance, transportation, life science, real estate, telecom and media, etc. Our events focus on the most pressing and timely issues facing decision-makers in today's global economy each year. For more information, visit: http://www.globaleaders.com

SOURCE Global Leaders Institute