DRIVERS FOR ASIAN INVESTMENT INTO AUSTRALIA DAVEID CAO FOUNDER, GUANGZHOU NEWCITY INVESTMENT HOLDING GROUP As the founder of leading property company, the Guangzhou Newcity Investment Holding Group in China, Daveid Cao is a respected reform advocate of government approval processes in China. His innovative modelling tool called the Long March Map ( ) has been referenced in public several times by the Prime Minister of the State Council of the People s Republic of China, Li Keqiang. Newcity Investment Holding Group works closely with senior government agencies in Guangzhou and brings this high level of engagement with comparable government agencies in Melbourne and Victoria. Newcity's latest project based in Southbank, Melbourne not only has strong commercial merits, its exciting China-Australia Business & Cultural Centre (which forms part of the project), will help encourage business and cultural links between China and Australia. The Asian Executive interviews Mr. Cao about his international expansion plans for the company in the context of his company's motto "New City, New Lives" ( ). Daveid, Zhiwei Cao Founder of Guangzhou Newcity Investment and Holding Group Originator of the Long March Map and People In Card Way Member of Guangzhou CPPCC Standing Committee Economic Policy Adviser of Guangdong Province; Adviser of Hainan Administration Reform Leading Group
TAE: What were the major factors for you to decide to invest in Australia and, in particular, Melbourne? CAO: For one thing, Australia has an established reputation for amongst the best environmental protection standards in the world. This together with abundant natural resources, a stable society and high levels of education in the workforce makes Australia an attractive place for investment. Australia has grown economically over a sustained period through the exports of minerals and agricultural products, a growth of its tourism industry and its domestic population. Australia is blessed with a sound legal and financial system supported by a strong professional services sector. These are key factors for attracting investment to this country. The recent signing of ChAFTA (China-Australia Free Trade Agreement) brings in enhanced trade and commerce between the two countries. As China has become Australia's biggest trading partner, we will see more opportunities for trade, services and two-way investment between our two countries. Melbourne is Australia s second largest city and has a deserved reputation for Australia's fashion, sporting and cultural capital. It certainly lives up to its reputation as the world s most liveable city. With a population that is set to increase from 4.5 million to 6.5 million over the next 20 years, there will be a projected need for 750,000 new dwellings to the year 2035. Within this population growth, we expect that the population of young people to double in a decade. With Melbourne's GDP accounting for approximately 20% of the whole of Australia and real estate values going up annually by 8% or more in most areas, the profile of Melbourne will grow more prominent in terms of investment activity. TAE: What has been your experience to date with Australian advisors and consultants in terms of their competence, work experience and cultural differences? CAO: In order to have the right profile in Australia from the beginning, we carefully selected the best consultants available. Our Australian consultants are quite the best of their field in Melbourne and comparing even with the rest of the world. When we discuss ideas together, there is an instant understanding of the task required and rapid response to agreed outcomes. What we learn through our consultants is a detailed insight into the how the local industry operates here and where the drivers of local demand lie. Having said that, our Chinese consultants are similarly well-trained. They are highly efficient operators who have a quick grasp of our needs and their follow through with instructions to the best of their abilities. TAE: Is the pace of construction in Australia slower than that of Asia? Would you comment on how Australian companies can improve their work practices? CAO: The pace of Australian construction is, in fact, NOT slow by Asian standards (although, is perhaps not quite as speedy as China and the United States). The main reason I say this is that most commercial buildings are built using pre-cast concrete and are simply ensemble on site which is highly efficient. We find Australian construction workers and interior finishers all very knowledgeable and experienced. Australian builders compile detailed construction schedules and are adept at honouring their timelines. The Asian Executive 39
Newcity investment china PROJectS: THE LING XIU PROJECT GUANGZHOU Located in Pearl River New Town in one of the sought-after parcels of land in Guangzhou. Prestige German architectural design with facilities that suit the busy city executive life. I do believe that Australian society can improve through more efficient services. Engagement with foreign investment enterprises can play its role in helping to provide better services and facilities to where it is needed most. On the whole and over time, Australian society will come to embrace the process of globalization to enrich their lives. TAE: What key projects are you presently undertaking in Australia? What project are you seeking to do next? CAO: Our group is very optimistic about the Australian market and it strong economic growth prospects. We see many outstanding companies and entrepreneurs entering the Australian market for the same reasons. Australia has friendly immigration policies and beautiful living environments that make it attractive for people to move here. Our group already has four property projects in Melbourne with one project under permit application in Southbank. We are presently assessing opportunities in Sydney, Brisbane and Perth in the areas of real estate, hotel management, educational services and even cultural programs. The challenge for Australia is to meet the accelerated pace of construction of large-scale infrastructure projects with constraints on the pool of local labour. While the process is quite transparent, there needs to be a high level of communication between the developer, its architects and the planning authorities to reach a consensus on development decisions. Accordingly, the process for government approval for projects in Australia can be relatively lengthy. TAE: What is your view of the economic and political climate to do business in Australia? CAO: Australia is endowed with rich natural resources such as mineral and agricultural products. Australia is a popular destination for inbound tourism. Over 700,000 Chinese visitors alone came to Australia last year. Australia was built on immigration. More and more people arrive on its shores to study, work and live. Through this process, the Group will actively undertake activities that benefit the local communities, support public welfare and in this, communicate our company goals to all Australians. TAE: What are your views of Melbourne s Southbank precinct in the context of your project there? CAO: In the context of our Southbank project, there is a lot to admire about the qualities of the area. Southbank has an elegance, vibrant lifestyle within a short 1 km from the central business district. Surrounding our site are Crown Resorts, South Melbourne market, Melbourne Convention and Exhibition Centre, Royal Botanic Gardens and DFO Southwharf. Many of the city's hotspots, leisure areas, river promenade areas are all within Southbank. We believe that once our project is completed, we will enrich Melbourne's urban fabric, attract young entrepreneurs and generate greater local employment. 40 The Asian Executive
2015 5 25 27 TAE: CAO: The Asian Executive 41
Michael Cao: Managing Director of Newcity Development Group ABOUT NEWCITY INVESTMENT HOLDING GROUP Established in 1994, Newcity Investment Holding Group s charter is to take equity positions in real estate investments, undertake property management of completed projects and be a media and communications player. Its headquarters is located in the city of Guangzhou in Guandong province. The present value of projects under construction or early stages of development is RMB 10 billion. In recent times, the Group now expands its operations overseas with an eye on developing its latest project in Southbank Australia. The investment is estimated to be in the order of AUD365 million. This major Melbourne landmark project was referenced in the Australia-China (Guangdong) Economic and Trade Cooperation Conference. Comprising hotels, residences, retail component, exhibition hall and clubs, the highlight of the facility will be a China-Australia Communication Centre on the top most floor of the project. The Centre will become a focal point of meetings and conferences between leading thinkers of China, Australia and regionally between Guangdong and Victoria in the areas of commerce, technology, education and the arts. THE CHINA-AUSTRALIA BUSINESS AND CULTURAL CENTRE, NEWCITY SOUTHBANK AUSTRALIA Proposed for the China-Australia Business and Cultural Centre are as follows: 1. The Centre will act as a meeting point for inter-governmental meetings, enterprises based in Guangdong province seeking investment opportunities in Australia and general communications hub. 2. The Centre will offer professional services to Chinese enterprises wishing to invest in Victoria and for Australian companies wishing to invest in China. 3. The Centre will offer a platform for Australia and China to share ideas in the areas of culture, academia, technology andthe arts. For example, Newcity Investment plans to bring the Guangzhou Ballet and Guangzhou Song and Dance Troupe to Melbourne in the near future. CULTURAL EXCHANGE PROGRAMS Daveid Cao is the Cultural Ambassador and Honorary Chairman of Guangzhou University. Mr. Cao has the mandate to negotiate with Australian universities about areas of cooperation and exchange programs. Of interest is a planned Australian visit of the Guangzhou Ballet and Guangzhou Song and Dance Troupe in Australia. At a practitioner level, he is keen to facilitate meetings between architects and town planners in both Guangzhou and Melbourne to discuss areas such as heritage protection and new technologies for construction manufacturing new materials. 10 450 650 2035 75 CBD GDP 8% TAE: CAO: TAE: KEY AUSTRALIAN ADVISORS The tier one architectural firm, Elenberg Fraser, international accounting firm Deloitte Australia and town planning firm Urbis are Newcity Development's key Australian advisors in Australia. AUSTRALIA-CHINA (GUANGDONG) ECONOMIC AND TRADE COOPERATION CONFERENCE On 25 May 2014, Newcity Investment Holding Group attended the Australia-China (Guangdong) Economic and Trade Cooperation Conference as a valued delegate on behalf of all Guangdong enterprises to Australia. The Chinese delegation was led by Mr. Hu Chunhua, a senior member of the Political Bureau of the CPC Central Committee and the Party Secretary on behalf of Guangdong province. The conference formed part of Chinese President Xi Jinping s continued agenda in the wake of President Xi s official visit last November to sign the free trade agreement with Australian PM, Tony Abbott. Newcity Investment Holding Group was invited to the conference due to its outstanding contribution to Chinese society and success with overseas investment projects. 42 The Asian Executive
Newcity investment china PROJectS: JIANG NAN PROJECT GUANGZHOU it enjoys excellent views of the Pearl River and ample nearby community facilities. CAO: TAE: CAO: 70 From left to right: Ryan Zhou, Master of International Finance, David Luo, The Asian Executive 43
Daveid Cao Founder, Guangzhou Newcity Investment holding group TAE: CAO: TAE: CAO: CBD DFO Michael Cao: Managing Director of Newcity Developments Group 44 The Asian Executive