Case for MBA 601 – Module 1.

Read this article from the Vietnam Investment Review.

Property & Construction
Tung Shing to launch Golden Westlake project
The Tung Shing Group is to hold a lavish launch for the long-awaited Golden Westlake executive residences this week, further consolidating the company’s position in Vietnam’s real estate market after it successfully built and operated the Hanoi Hotel and an office tower near HoanKiemLake.

All that glitters: Golden Westlake will pose as a heavyweight competitor to Ciputra
The project’s VIP launch will take place on November 25 at the five-star Sofitel Plaza Hotel, from which participants can look over the two-hectare site in Thuy Khue street where Tung Shing will soon begin construction on two 23-storey residential towers and 16 villas.
Malcolm Whitehouse, general director of Leonidas, the marketing and management company for Golden Westlake, said the special launch was significant for the development of a luxury estate that would distinguish itself from the typical apartment towers sprouting up around the capital.
Developed by Ha Viet Tung Shing Joint Venture Company, with 370 apartments, Golden Westlake will present a diverse selection of 22 residence styles.
Investors are rewarded with the luxury to choose from one to five bedrooms, unique split-level duplexes, or for the lucky few, Vietnam’s only tri-level penthouses with private lap-pools and rooftop terraces.
Opulent finishes feature throughout and no expense has been spared to fashion the beautifully detailed interiors, which accentuate contemporary Asian designs.
Residents at Golden Westlake will share in a host of lavish comforts, with exclusive facilities such as a kilometre long jogging track, multiple swimming pools, tennis and badminton courts, golf practice areas, a sports field, lush parklands with pergolas and private picnic nooks, a children’s playground, private members’ lounge and a “state-of-the-art” two-storey health club.
Public areas are restricted to service retail, café/restaurant and an integrated child care centre. Twenty-four hour security will protect the integrity of resident’s privacy and property alike.
The launch is the result of three years of effort by Tung Shing and architects from DWP Attitude, Site Company, Green Tree and Conico to flesh out the project, which should be welcomed in the market at a time when demand for luxury accommodation in Hanoi is growing due to the increasing number of foreign invested and official assistance projects.
Golden Westlake will be the only inner-city foreign-invested project, earning it the right to sell itself with a redbook title.
General director of the joint-venture Ronald Fu said investors can expect to achieve high returns, sustained capital growth and a low-hassle, professionally managed asset. Hanoi’s leasing market is in dire need of something new, exciting and refreshing, he added.
Although serviced apartments in the city are almost fully occupied and demand for luxury housing accommodation is increasing, there have been few new developments opening their doors for business in Hanoi over the last few years, with the exception of the 31-unit Hanoi Lakeview.
Fu expanded upon Tung Shing’s core business doctrines. “First, we find out what the market wants. Second, to achieve an outstanding product we acquire land in an excellent location where similar land is scarce, and incorporate timeless, yet functionally innovative design, using quality materials that will last.
“Third, we don’t squeeze investors for their money as we leave profit in the investment for the next person. This way, everyone wins and knows to watch keenly for our next project,” said Fu.
Golden Westlake is ahead of the field not only in design concept, but also in the protocols for the efficient operation of services by Leonidas. The company takes account of investors’ right to vote on the management of the estate, their proportionate share, and provides clear and accountable reporting.[1]
By Son Thuy

Required:

Write a paper from two to four double spaced typed pages and identify five specific decisions that will occur in the Golden Westlake project that will rely on competent accounting information. For each decision, explain how the accounting information will assist in making sound economic judgments.

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