Portman Wins Key Design Contract in Taiwan

Jane's Business calls the venture the world's largest of its kind. The Portman companies' total fee could be in nine-digit figures, although Jack Portman, CEO of John Portman & Associates and vice chairman of Portman Development, tells GlobeSt.com the fee is still being determined and that no hard figure has been established.

Design industry professionals tell GlobeSt.com a typical architectural fee on a multi million-dollar American commercial real estate venture, for example, could be as low as one half of 1% to 3% or more of the total development cost. Using that general guideline, the Portman fee could approach $150 million. Portman, however, says a number like that is speculation and may not even be realistic.

"I'm not trying to side-step your fee question," Portman tells GlobeSt.com in a telephone interview, "but there could be at least three separate contracts involved" that would radically change the fee structure. They would be for initial analysis and planning, master planning, design and development.

"It's a great opportunity for us to make a positive impact" in a fast-developing Asian sector, he says. The Portman companies were the first choice of the Taiwan High Speed Rail Corp. There was no formal bidding by other developers on the project.

"They know us and we know them," Portman tells GlobeSt.com. "I have lived in Singapore for a number of years and understand how they do business in Asia. We are no strangers to that part of the world."

The Portman Ritz Carlton in Singapore, for example, is one of that area's landmark commercial developments. The Portman companies have also completed trophy commercial enterprises in Shanghai, San Francisco, New York and in their hometown of Atlanta.

The Portman companies will analyze commercial development potential at satellite rail stations in Taoyuan, Hsinchu, Taichung, Chiayi and Tainan. The railway is tentatively scheduled for completion in 2006. It will link the 147-mile long island from Taipei to Kaohsiung.

The Portman companies' assignment is to tell the railway company what commercial components are best suited for the land surrounding the five station sites. Developments under study will be hotels, convention and exhibition centers, restaurants, retail centers, office complexes and residential.

"When completed, Taiwan will have been changed forever," Portman says. "For an Atlanta-based company such as ours, it's an exciting opportunity" to play a key role in that transformation.

Portman Development is the development arm of the Portman companies. It has current projects under way on four continents with offices in Shanghai, Mumbai and Warsaw.

John Portman & Associates is a sister firm of Portman Development, specializing in mixed-use development, hospitality, education and corporate design.