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Questions and Answers
Renuka Ramnath, CEO of PIA (Prime-Investments-Asia Co.), was returning from her spring vacation in the Middle East.
Renuka Ramnath, CEO of PIA (Prime-Investments-Asia Co.), was returning from her spring vacation in the Middle East.
False
Which of the following publications is not listed as one of the sources that named Renuka Ramnath as one of the "Top 25 Most Powerful APAC Women in Business"?
Which of the following publications is not listed as one of the sources that named Renuka Ramnath as one of the "Top 25 Most Powerful APAC Women in Business"?
What was the main reason for a delay on Renuka Ramnath's flight back to Singapore?
What was the main reason for a delay on Renuka Ramnath's flight back to Singapore?
A two-hour delay in Malaysia.
Which of these two locations was Renuka considering for a USD 30 million investment?
Which of these two locations was Renuka considering for a USD 30 million investment?
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PIA's investment decision was a time-sensitive matter, with a three-week deadline for the Japan project.
PIA's investment decision was a time-sensitive matter, with a three-week deadline for the Japan project.
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Which of these factors contributed to the uncertainty surrounding the Chinese real estate sector?
Which of these factors contributed to the uncertainty surrounding the Chinese real estate sector?
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The valuation done by JLLvalue.com indicated that returns for the project would be higher in Tokyo than in Hong Kong.
The valuation done by JLLvalue.com indicated that returns for the project would be higher in Tokyo than in Hong Kong.
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Which of the following companies was NOT mentioned as showing interest in the Hong Kong project?
Which of the following companies was NOT mentioned as showing interest in the Hong Kong project?
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What percentage of equity did the Australian fund MJHv Group hold in PIA?
What percentage of equity did the Australian fund MJHv Group hold in PIA?
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What was the name of the public-private initiative aimed at promoting Hong Kong as a tech hub?
What was the name of the public-private initiative aimed at promoting Hong Kong as a tech hub?
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Initial rents in Hong Kong’s Science Park were significantly higher than expected.
Initial rents in Hong Kong’s Science Park were significantly higher than expected.
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The text states that Renuka Ramnath was a very experienced manager with years of experience working in the logistics field.
The text states that Renuka Ramnath was a very experienced manager with years of experience working in the logistics field.
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What is the name of the giant company that had begun conversations with the Hong Kong government to invest in the city?
What is the name of the giant company that had begun conversations with the Hong Kong government to invest in the city?
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What are two examples of sustainability metrics and ESG certifications that are crucial for investors and corporations?
What are two examples of sustainability metrics and ESG certifications that are crucial for investors and corporations?
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What is NOT considered a factor that can influence asset valuation through increased demand?
What is NOT considered a factor that can influence asset valuation through increased demand?
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Study Notes
Case Study: CEO Renuka Ramnath; Flex-space vs. E-commerce in Asia
- Renuka Ramnath, CEO of PIA, was deciding between a USD 30 million investment in a mixed-use development near Tokyo's airport or a tech-oriented building in Hong Kong.
- The Japan investment needed a decision within three weeks, otherwise, the funds would be used for another project.
- PIA's executive committee, composed of various nationalities, had created reports for both locations, covering business, commercial, marketing, technical, legal, and financial aspects.
- JLLvalue.com valuations showed similar returns for both locations.
- Tokyo's investment focused on logistics and industrial space (approximately 70%).
- Hong Kong's investment centered on flex-office and co-working spaces (approximately 70%).
- The investment has equity from Australian fund MJHv Group (25%) and Samurai Capital (25%).
- Both investment boards must approve the decision.
Project in Tokyo
- The project location is near Narita International Airport.
- Companies like Prologis are already established.
- The land is fully entitled, including municipal access and permits.
- Tokyo received significant interest from other international investment funds.
- CBRE IM is operating in the region.
Project in Hong Kong
- The project aims to establish Hong Kong as a tech hub.
- Hong Kong's rising rent costs in office spaces raised doubts about the project's viability.
- Other companies like WeWork and IWG faced challenges, which increased uncertainty.
- Potentially, the Asian operator JustCo could be an investor.
- Potential investors like ShiMao Group and Koramco Real Estate Fund are also interested in the Hong Kong project.
- The area has potential for imminent resurgence as a strategic center in southern China.
- A public-private initiative, Hong Kong's Science Park, was behind the project.
Group Work Methodology and Development
- Students must analyze different investment aspects within groups, presenting their findings to the class.
- Topics include real estate, financial, technical, regulatory, and legal factors.
- Departments like HR, marketing, commercial, sales, risk analysis, etc. can be involved.
- The case study aims to highlight collaboration between departments to create an integrated solution for investors/developers.
- The case study information is fictional, but it could resemble investments in real cities.
Sustainability Metrics and ESG Certifications
- Sustainability metrics and ESG certifications are crucial for investors.
- These offer risk mitigation, compliance assurance, cost reduction, and capital attraction.
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Description
Explore the strategic investment decisions faced by Renuka Ramnath, CEO of PIA, between mixed-use development in Tokyo and tech-oriented spaces in Hong Kong. The case study provides insights into market evaluations, returns, and the pressing timeline for decision-making in the competitive real estate landscape of Asia.
