Young and wise
If you were to think that a 27-year-old good-looking scion of an entrepreneurial family could only be a frivolous brat with the-world-is-my-oyster attitude, Albert Tong would prove you wrong. The vice chairman and executive director of Tomson Group (0258) is a modest, soft- spoken gent who prefers to keep a low profile.
Joyce Kam
Monday, November 15, 2010
If you were to think that a 27-year-old good-looking scion of an entrepreneurial family could only be a frivolous brat with the-world-is-my-oyster attitude, Albert Tong would prove you wrong. The vice chairman and executive director of Tomson Group (0258) is a modest, soft- spoken gent who prefers to keep a low profile.
Tong might be young, but he is certainly an old hand at the game. Joining the board of the company in December 2001 immediately after high school, Tong is regarded as the youngest director in Hong Kong corporate history. Over the years, the Shanghai property development company run by his family has grown to become an operation with a net asset value of almost HK$10 billion at present.
"I'm just like my dad," Tong, dressed head to toe in black, tells The PEAK in a matter-of-fact tone. "All we think about is the company, even in our dreams."
His father, David Tong Cun-lin, was one of the pioneers who ventured into Pudong around 20 years ago, when the area east of Huangpu River was farmland.
The Shanghai-born developer, who made his fortune in Taiwan and Hong Kong, liquidated all his assets - since banks would not lend to him - and returned to his hometown to erect the first top-class commercial building, golf course with villas, five-star hotel, serviced apartments and an industrial park in Pudong, which laid the base for a thriving area.
"The old Shanghainese used to say 'A bed in Puxi is better than a house in Pudong,'" says Tong, recounting the time when Puxi, where residential and commercial projects proliferated, was considered the heart of Shanghai. "But my dad saw a lack of urban planning in Puxi, so he preferred to start from scratch on the other side - Pudong. The area was like a white paper which allowed him to give full play to his vision."
The jewel in the company's crown is Tomson Riviera, four luxury residential towers along the riverfront of Lujiazui, which joins the Shanghai World Financial Center, Jin Mao Tower and Oriental Pearl Tower to form the city's distinct skyline.
The complex offers 220 units of about 430 sqm to 1,207 sq m. It was dubbed "the number one luxury condo in China", because of its jaw-dropping price - 110,000 yuan per sq m, the highest price quoted when sales began in 2005.
Yet just when the group was all set to enjoy the fruits of their labour, fate intervened. Shortly before the launch of Tomson Riviera, the family had to cope with David Tong's death, while the central government struck a blow against rocketing prices of luxury real estate.
"It's a devastating time. We were feeling so relieved after dad came out of a successful angioplasty surgery. No one thought that a bacterial infection would take him one week later. It hit us like a ton of bricks," recalls Tong.
Though he was the younger son, he stepped into his father's shoes to buy time for his mother, Taiwanese actress Hsu Feng, and brother Charles Tong Chi-kar to grieve in peace. "I didn't have time to think much then. I felt compelled to first hold the company steady, arrange the funeral and settle the inheritance tax before I can mourn."
He rose to the challenge and carried on his father's legacy. Amid the crackdown on the property market then, he did not lower the price of units at Tomson Riviera, despite being portrayed in the media as a project making exorbitant profits.
"We never care about being the number one luxury property in China. In fact, lots of other properties have already topped our prices. The project was the brainchild of my father as well as the key development for the company. I'm obliged to do what's in the best interest of our stakeholders," says Tong.
Tomson Riviera is the prime revenue generator for the group. In the six months to June 2010, revenue from sales and leasing of the project of about HK$667 million was recognised. Meanwhile, the Shanghai World Expo also helped raise the profile of Tomson Riviera. The company leased the presidential executive residences of around 595 sq m in Tower D to exhibitors.
"As a family-owned company, we stress on bringing long-term returns for our investors," says Tong. "At the moment, Mom, as the chairman and managing director, oversees our business in Shanghai. She's also actively involved in both exterior and interior design of our properties. Thanks to her movie background, she has a good eye for art. My brother focuses on sales and marketing while I punch the numbers."
But he also recognised the other side of the coin - the lack of expertise. "We do the best we can but we don't know everything, so I'm scouring for talent to fill the void. I hope to bring in more professionals to complement our family operation," says Tong.
The junior learned the business by shadowing his father since he was knee- high to a grasshopper. Interested in investment in his mid-teens, he asked his mother to support his foray into the stock market. And by 18, he was the private broker to his parents.
"I've never made any serious mistake or lose. Like my Dad, I always play on the safe side," says Tong, whose traits mirror his father's - single- minded, diligent and calm.
His reserved nature actually concerned his mother when she found her child not laughing nor crying much. To lighten Tong up, Hsu cast her two-year- old son in two movies, but her effort was futile. "The leopard can't change its spots," says Tong.
His cautious approach is a factor in business propositions. "We don't bid on expensive land just to increase our land reserve. We focus on quality instead of quantity to maximise our return," says Tong, who plans to keep rolling out properties regardless of the unfavourable market climate in recent months.
The central government has launched various measures since April to hold down property prices. All first- time homebuyers, as well as buyers of homes over 90 sq m, are required to pay 30 per cent down payment. In addition, all banks must suspend loans to third- time homebuyers and prevent abuse of consumer loans while nation-wide property tax reform is in the pipeline.
Tomson is now pushing its homes in Tomson Riviera Garden, a low-rise residential property near Tomson Shanghai Pudong Golf Club in Huamu District of Pudong.
It is reasonably priced at 100,000 yuan per sq m, lower than the average 130,000 yuan in the neighbourhood. Coupled with Tomson Riviera and other businesses, Tong believes the group can weather the property market crackdown.
The scion seems to have the world at his feet, but he did twice fall into the abyss of depression.
"The first time was when I was in high school in Shanghai. As a major developer, our lives were under the public microscope, which suffocated me. But I got well after becoming the director of the company as I've found my passion, which could help dad out," he says.
"Yet, a few years after dad had passed away, when the company was once again back on its feet, I felt so empty because I've lost the motivation and satisfaction. But I recovered soon after medication. My drive now comes from bringing maximum profit for our stakeholders."
The group will soon begin a residential project in Pudong. Meanwhile, Tong, in full swing, is taking Tomson beyond Shanghai.
The group just joined hands with Tianjin Financial City Development, a real estate company established by the provincial government, to develop two plots at Jinwan Center at Heping district in Tianjin.
With around 370,000 sq m construction area above ground and over 140,000 sqm underground, the site will be turned into top-class offices and apartments complemented by a hotel, shopping mall and car park. The group recently acquired further interest in the new projects from its joint venture partner and became the majority stakeholder.
"It'll be like the ifc in Hong Kong. The site is right opposite the Tianjin high-speed rail station, which can take you to Beijing downtown in 30 minutes" says Tong, "Our group is keen on developing premium sites like this in other first-tier cities. I hope the name Tomson will remind you of quality luxury property at premier sites in burgeoning cities in China right away."
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