Katen Bakhytbek. Interview 2006.// http://www.optimist.kz/page.php?page_id=326&lang=1&parent_id=13
Bakhytbek Katen, Vice President, Investment Development Management Corporation
Interview 2006
Bahytbek, tell our readers about yourself, your social activities (as far as I know your are a cofounder and president of association of young project managers of Kazakhstan ProMen 2005- currently.
You are a board member of intellectual youth club “Almaty Trends” 2004- currently.
Cofounder and president of association of kazakhstani students studying abroad “Kazjastar” 2003-2004.
Manager of international club of international relations “Eurasia”
Hello, Dina. Thanks for the opportunity to have this conversation.
Unfortunately, it is getting difficult for me to spend that much time for social activities as I could 2-3 years ago. I understand that “we are human being based on what we are doing for others”, that’s why I try to participate in social projects. I had a chance to become one of the first entrepreneurs, who sponsored the construction of a dormitory for girls coming from all over Kazakhstan to Almaty to study. It was a charitable action; the dormitory will not cover the expenses. This action turned to be the Association of Entrepreneurs. I hope that my friends – cofounders will make more for our society. When I was suggested to take part in this action, I was surprised by ascetic spirit and sincerity of everyone. It inspires better then any poetry.
Now, the term “developer activities” – is wide spread and even fashionable. Could you clarify the meaning of this?
Development means progress, growth, so “development” or “developer” (slang) means activities to develop real estate objects. To simplify, development is a business, where company buys the holding or any object (shop, house, admin building) to sell at higher price. This extra price comes from renovation or reconstruction of a object, though it is not necessary.
In some cases a project can be implemented at the stage of technical drafting completion or after the permits for the construction is obtained. It takes usually from 6 months to a year. This stage can be called as a pre-development. Many strategic investors, whose core business is not “development” even though it can bring the desired medium term revenue, prefer to buy the project after the maximum system risks are diminished, so after the project is agreed and approved, when exact figures on areas and project final profitability or “outcome” are known. If the project is sold at the stage of an “object” and “technical drafting” that means that a developer sold an idea. It is necessary to understand that it is not that easy. Development is the most profitable as well as the most risky type of business. The “unforeseen factors” do not go down from the beginning till the end of the project. We often hear that constructed building cannot be put into service. There can be any reason, but the main fact that it can have bad effect on the whole project. Those, who succeeded in selling the idea, attain this through the genius planning, extreme negotiations with creditors, buyers, local authorities, subcontractors, by overcoming of all boundaries and conflict situations over billions dollars, making decisions in constant unforeseen situations, sleepless nights, holding hundreds of meetings, being always under pressure and concentrated on business during the project, which usually takes from 6 months to 4 years.
Bahytbek tell us shortly, what is your company doing and what are your job duties?
Our company IDMC (investment development management corporation) develops the projects in all directions of real estate business: construction of residential real estate in developing cities in Kazakhstan and abroad, construction and management of different entertaining centers, hotels, warehouses and business centers.
My duties are assurance of the internal and external company development. We develop systems and project management technologies. The core principle of the company is the continuous initiation of profitable projects and their management, that’s why activities and structure of the company should allow the most efficient project management. Scientifically, it is called “project – oriented complex matrix structure”. Its distinguish feature is that in the frame of the particular project the head of a company can be subjected to the project manager, who is middle manager. It reminds the temporary participation in commission, which exists only till all tasks are accomplished. Here it means the full project implementation. It is non standard form of management for our country; generally, it is the advanced form of management in the world. Today, we clearly understood and defined that company’s life cycle is equal to all projects’ cycles in total. So, consequently, all work, deadlines and company’s recourses should be planned according to each project. The software we use allows us to monitor the project. We plan the project to be understandable for our employees, top managers, and stakeholders. All of them have the access to information about state of completeness and results of a particular work in the project. It allows us to know what recourses will be spend on the project and what profit will be, control the project every hour and solve problems efficiently and exclude “we forgot”, “we didn’t consider”. It allows us to know how much will make each employee, the member of the project team. It concerns HR politics. Everyone in our team can “build” the carrier and earn “real money”. It should be pointed that it is our company’s distinct trait and we achieved it due to our leaders open positions to development and their generosity.
External development includes the realization of the whole phase of pre-development – continuous search for new projects (land holding, real estate), research of market possibilities, company strategy development, development of different real estate directions, business planning, search for financing, negotiations in capital markets, preparation of presentation of projects and bids for market of strategic investors, search and negotiations with potential rentiers (network companies), initiation tenders for projecting, negotiations with local authorities, permits obtaining and investment sales realization.
Katen Bakhytbek. Interview 2006.// http://www.optimist.kz/page.php?page_id=326&lang=1&parent_id=13