Deloitte China acquires Hong Kong architecture firm WCWP in nod to expansion in real estate, infrastructure advisory services
- Clients are looking for one-stop shop experience, especially when it comes to infrastructure investment, real-estate projects, Deloitte China says
- WCWP behind projects such as Conway Mansion, DBS headquarters in Central
Deloitte China has acquired Hong Kong architecture firm WCWP International Limited for an undisclosed amount, in a deal described by an insider as “niche”, but one that points to a future where consultancy firms offer in-house real-estate advisory services as well.
The acquisition will significantly enhance Deloitte’s advisory services in real estate, infrastructure and reorganisation, while WCWP will enjoy access to a wider market.
“More than ever, our clients are looking for a one-stop shop experience, especially when it comes to mergers and acquisitions, infrastructure investment and real-estate projects,” said Edmund Yeung, financial advisory managing partner at Deloitte China.
The deal points financial advisory services and architecture “to an innovative new direction to create a totally new field”, said Barry Will, executive director at WCWP. The firms have worked together on projects before.
WCWP, the firm behind projects such as Conway Mansion in Mid Levels, the DBS headquarters in Central and commercial complex Century Link in Shanghai, will keep its name, but become a member of the Deloitte group. No other details were provided.
The interest of consultancies in architecture firms has been anticipated, said Greg Pearce, managing director of Hong Kong-based architecture and interior design firm One Space.
“As early as two years ago, we had been told by professionals in this field that this was a model being pursued by advisory firms, and I think that this is still a niche acquisition … [but] it’s a growing field and I reckon it’s something which we will see more of,” he said. One Space also provides consultancy services to a big advisory firm.
The two areas where architecture firms will enhance the services of consultancies are workplace strategy and design, and urban growth strategies.
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“This acquisition, I think, will serve as a demonstration of the importance of workplace strategy and planning in business transformation and in elevating the value of the business. I can imagine immediately that a company in an advisory capacity would see the advantage of being able to offer that as a part of the service,” Pearce said.
Meanwhile, the spectre of so-called empty cities in China – cities where government-led projects such as high-rise residential buildings and commercial complexes remain unoccupied – highlights how architecture could expand the market for advisory firms.
“WCWP has experience in China … and this may be relevant to Deloitte,” Pearce said. “In China, in these so-called empty cities, there’s rapid growth in anticipation of economic growth … and what often follows is a waste of resources and waste of valuable land.”
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While planning urban growth, local governments need to raise public funding and a significant part of that comes from banks and investors. The government needs to present a viable economic model for these plans, so they need advice from consultancy firms, which will draw on the expertise of architects to come up with a living community as opposed to the empty cities.
Both the consultancy and architecture segments can provide scale, one because of the high number of enterprises interested in advisory services, and second because of the growth of cities in Asia.
Pearce said WCWP will benefit from Deloitte’s tremendous resources and access to huge data.
“The Deloitte name, or any of the Big Four names, has got a stamp of recognition, of professionalism and knowledge” he said.
