Bosch unveils R&D centre -14th May 2009
Despite slumping global sales, the group is positive that Asia will be key to its future growth
By Jessica Cheam
Robert Bosch South-east Asia president and managing director Cem Peksaglam says that despite the gloomy outlook, the group is looking to strengthen its foothold in the region and has no plans to lay off staff. -- PHOTO: ROBERT BOSCH (SOUTH-EAST ASIA)
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TECHNOLOGY giant The Bosch Group's appetite for investment in Asia has not been dampened despite a slump in its global sales as a result of the downturn.
Mr Peksaglam said that the Asia-Pacific remained the strongest growth engine for the group and last year sales in this region grew 7 per cent to $16.4 billion.
14th May 2009 – Money section of Strait Times.
Bosch unveils new $21m R&D centre
Despite slumping global sales, the group is positive that Asia will be key to its future growth By Jessica Cheam
Despite slumping global sales, the group is positive that Asia will be key to its future growth
Technology giant The Bosch Group’s appetite for investment in Asia has not been dampened despite a slump in its global sales as a result of the downturn.
The privately owned group, which deals in automotive parts and consumer goods, yesterday took the wraps off a new $21 million research and development (R&D) centre in Singapore that will be the Asia-Pacific headquarters of newly acquired business software house Innovations Software Technology.
Innovations Software offers enterprise solutions mainly for the financial services industry, but is set to enter the health care and energy management sectors with Bosch’s expertise, said Robert Bosch South-east Asia president and managing director Cem Pekaglam.
This is the group’s third investment here in recent years. In 2007, it set up a centre for R&D for information technology with a rolling investment budget of $94 million to be spent by 2010.
Last year, a $30 million corporate research and advance engineering facility housed at Nanyang Technological University (NTU) was established to conduct R&D in areas such solar energy.
Innovation’s new R&D centre and sales headquarters will employ 70 staff within the next 5 years and will be located at Robert Bosch’s newly built $92 million headquarters at Bishan by October.
The 223,000 sqft building will be consolidate Bosch’s 400 and growing Singaporean employees under one roof and can house more than 1,000 staff.
The energy efficient site boasts an array of solar panels and automated window blinds that block out the sun’s heat.
The building’s green features helped it win what is regarded as the highest green building accolade this month, the Platinum Green Mark, awarded by the Building and Construction Authority.
Tough trading conditions forced The Bosch Group to report a 2.6 per cent drop in sales to 2.6 per cent drop in sales to Euro 45.1 billion (S$90 billion) for last year.
But Mr Peksaglam said that the Asia-Pacific remained the strongest growth engine for the group and last year sales in this region grew 7 per cent to $16.4 billion. South-east Asia saw sales grow 5 per cent to hit $790 million.
The firm spent a record $8.1 billion worldwide on R&D last year, of which 45 per cent went towards developing energy-efficient and environmentally friendly products. Almost a third of the group’s revenue comes from such products.
Bosch, which has had a presence in Singapore since 1923, is currently working on developing organic photovoltaic cells with the NTU.
This uses cheaper organic materials such as polymers in place of the costly silicon used in conventional solar products.
Mr Peksaglam said yesterday that the group will continue to strengthen its foothold in the region, despite the gloomy outlook that might force Bosch into a loss this year, its first in 45 years.
Despite the challenges ahead, Mr Peksaglam said there are no plans to lay off any of the firm’s 4,200 South-east Asian staff.
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Analysis point of view:
Rafflesia is strategically located next to Bosch future $21 million R&D center. With the capacity to be able to house up 1000 staff in this regional office, this would apparently reveals that the chances of the tenancy would increase. The reason is because Rafflesia is strategically located next to the Bosch regional R&D centre. Marymount MRT is located next to The Bosch regional office, this would reveal that the traffic flow of the area would be bustling with traffic incoming from the different parts of Singapore. With Junction 8 as the closest shopping belt with cinema, eateries, bus interchange, this shows that the potential of high rental yield is obvious. Currently the rental yield for Rafflesia is higher than the normal performing rental rate in the market of 4%. Rafflesia is actually strategically parked at estimated. 4.25% better than the normal market rate.
Summary
-Rafflesia is strategically located next to Robert Bosch regional office.
-$21 million Bosch Office in place.
-Housed up to 1000 potential tenants for Rafflesia.
-2 MRT (Marymount & Junction 8 interchange)
-Highest condo in the estate
-Higher performing interest rate at est. 4.25%
Note:
All the above analysis point of view are based on my personal analysis.
Focus unit for sale:
#11-09 | 1302sqft | Quntam" Average: 1.081 million (Bare unit) Cheapest unit for Rafflesia.
#12-04 |1302sqft | Quntam" Average: 1.1 million (Bare unit)
#12-09 |1302sqft | Quntam" Average: 1.1 million (Bare unit)
#15-04 | 1324sqft | Quntam" Average: 1.26 million (Inclusive of showflat charges) showflat
#15-09 | 1324sqft | Quntam" Average: 1.26 million (Inclusive of showflat charges) showflat
#17-10 | 1324sqft | Quntam" Average: 1.23 million (Bare unit) No afternoon sun facing directly RI & RJC
Maintenance Fee: $286 + $14 (Sinking Fund) = Est. $300.00
Interested party: Please call Aaron | 90287921