FOR AN INTEGRATED TOWNSHIP

Client

A Government-Owned Investment Vehicle Specialized in Real Estate Development

Products & Services

• Township Management Strategy
• Business Strategy
• Organizational Design
• Financial Modelling & Pricing
• Life-Cycle Costing Analysis

Description of Project

Client

The client is a government-owned investment vehicle specialized in real estate development. The project is one of the client’s flagship developments situated right at the center of capital city of a country, with approximately 100 acres in size. 

Background

The project site of the township is strategically located in the city center of a capital city. This township is set to be the first-of-its-kind integrated development that has premium status for all of the buildings within its perimeter.

Challenges & Expectations

However, this premium status comes with a huge requirement on the cost to operate and maintain various components in the township. 

In view of the huge working capital required to operate and maintain the township, the client realized there is an imperative need to strategize a cost recovery model and revenue strategy that could support the working capital requirement.

Our Role on the Project

Scope of Services

Working with a diverse team of consultants comprises of business strategist, financial planners, engineers & quantity surveyors, we were tasked to draw up a township management strategy that will ensures the project can be financially sustainable.

Solutions / Outcomes Delivered

Leveraging on internal database & international benchmark, we have helped the client to frame the services that could be taken up by the township manager in return for a management fee.

Adopting a Design-to-Cost approach, the team had identified a list of cost reduction targets which guided the design consultants and engineers to optimize the township development from design & engineering perspectives.

As part of the cost recovery strategy, we designed a charging mechanism with varying rates that enabled the client to transfer the operating cost at a fair & transparent manner to prevent dispute. A basket of revenue ideas were developed to create additional avenues for income by leveraging on placemaking ideas.