Prestige realtor set to opens its doors (hktdc.com)


	Sandra Roth of Engel & Voelkers explains why Hong Kong is the right fit for the prestige property brand

German luxury property and yachting brokerage Engel & Voelkers is ready to begin trading in Asia, having spent the past two years in Hong Kong preparing for market entry.

The company, which has a worldwide network, arrived in Hong Kong in 2006 under the leadership of Sandra Roth, Managing Director. Its initial aim was to find franchise partners and to build a structure to support them. Now that deals are closed, the sales office doors are soon to open.

"Hong Kong has treated us well," Ms Roth said. "Our focus was to establish our brand, identify channels and attract investors, and we are pleased to say we have achieved this. We have sold the first licenses on Hong Kong Island and others are under negotiation for the Kowloon side. If all goes well, we expect to have the first office opened by December."

Exclusive rights to Macau

One investor has also taken exclusive rights to Macau, buying all five Engel & Voelkers licences allocated to that region. But it is "the elephant states" of the Chinese mainland and India that hold the most promise, Ms Roth said.

"We are currently finalising the number of licences we want to sell in those countries, but we're talking in the hundreds," she said. Although market entry is more difficult there because of franchising restrictions, the firm has had growing interest via its Hong Kong office and has a number of deals pending.

Engel & Voelkers is one of Europe's largest real estate firms, with more than 300 offices in 24 countries. It chose Hong Kong to base its Asia-Pacific operations because the market is so competitive, Ms Roth noted, "if you can make it in Hong Kong, you can make it anywhere."

As a trader of high-end property, the company also had to be centrally located in Greater China, a region estimated to have more than 300,000 US dollar-millionaires.

Best location, best resource

"Hong Kong is geographically in the middle of Asia, so we needed to have our flagship business here," Ms Roth said. "And for back-office functions, Hong Kong is also our best resource, providing the location, talent and infrastructure to support our franchise operations."

When the Hong Kong office opened two years ago, Ms Roth was the sole operator. She has since hired five staff.

As the number of high-net worth individuals in the mainland continues to rise, Ms Roth believes it is logical those people will look for the things they cannot get at home – such as a castle in Europe, or commercial real estate in Dubai. This is where Engel & Voelkers will step in.

"We are the market leader in Germany, with a reputation spanning more than 30 years," she said. "We have positioned ourselves as a lifestyle brand with access to prestige properties, and for us to operate out of Hong Kong just seems like a natural fit."