Smart City, Songdo International City and the Incheon Free Economic Zone (IFEZ). 

Chairman Stan Gale

In his annual Chairman’s Message Stan Gale commented on past accomplishments, current challenges, and future opportunity. In sum, for 2009 Gale and Songdo IBD plan to go Full Speed Ahead.

Annual Message

Gale International Chairman Stan Gale expressed satisfaction from himself and CEO John Hynes that preparations in recent years have positioned the company well to weather the current global economic crisis.  He expects 2009 to show continued progress on current projects and expects to capitalize on emerging opportunities as the need for large-scale urban development grows globally. 

To our valued Employees, Investor and Development Partners:

Gale International traces its roots back to 1922, having pioneered innovative real estate developments in both up and down markets.  The growth and evolution of our company is now focused on city scale multi use development.  These business and living environments are designed to attract foreign investment and international commerce.  They will serve as an engine for sustainable development and financial stability for the people and the markets they serve.  As we look to the future, let me point to several areas of focus for our company.

Stay the Course

I encourage every Gale International employee, and our partners to continue to work “full speed ahead.”   We are well positioned to keep projects underway and strengthen the economies in which we operate.  Today, more than 20,000 people are gainfully employed, making a good living, as a result of our international initiatives. 

Continued Project Progress

In the United States, plans for the 23-acre, $3 billion Seaport Square development in Boston are well underway, with construction work on the first mixed use block set to commence in mid-2009.  Key leases are being negotiated and it is expected construction will start on the $700 million One Franklin project.    We are also proud of our contribution in bringing the New York Jets training facility to Florham Park, New Jersey.

In Korea, work continues at an accelerated pace on the Songdo IBD.  As you read this letter, over 30 projects and 50 buildings are underway representing an investment of over $10 Billion.  A total of fourteen projects were started in 2008.  This past October, we were proud to attend the opening of the Songdo Convensia convention center.  Thousands of Korean and international visitors are getting a dramatic first look at Songdo IBD through the soaring windows of the Convensia lobby.  The First World towers will welcome their first tenants in the first quarter of 2009 and tours are running through the Songdo International School.  Preparation is well underway for Songdo IBD’s “Grand Opening,” which will coincide with the 2009 Global Fair and Festival and the opening of Incheon Grand Bridge, connecting Songdo IBD with the Incheon International Airport and the world beyond. 

Focus on Sustainability

Gale International is committed to sustainable design and development.  Sustainability means that Gale International projects will be more energy efficient, environmentally friendly and economically rewarding.  Sustainability is proving to be a bulwark in a down market, maintaining market value as non-sustainable project returns erode.  We are dedicated to enhancing the ability of our developments to carry themselves from both a revenue and long term cost perspective.

Partnerships for Global Expansion

The sustainability initiative has also allowed us to assemble an impressive list of strategic alliance partners.   Business relationships have been forged with global leaders; companies like UTC, 3M, Microsoft and GE. This is in addition to existing partners Posco E&C and LGCNS.   In 2008, we created the Sustainable International Development Team (SIDT).  This includes a comprehensive list of investment partners, architects, engineers and consultants.  Quality of life partners like Taubman and Jack Nicklaus also play an important role in the SIDT.  The stated mission of the team is to dedicate its collective expertise to reduce the cost and development time of state-of-the-art sustainable city scale projects around the world.

Alignment of Interests

Periods of downturn often have the positive effect of aligning interests.  We are committed to improving communication with our public and private sector partners to identify opportunities to ensure continued business growth.  Every aspect of operations is being examined and evaluated.  Our partners are doing the same.  We see positive signs that the communities in which we operate are equally committed to keep the momentum gained to date going, despite economic challenges.  For example, the city of Boston recently pronounced its intent to invest in local projects identified as crucial to the success of the city’s redevelopment initiatives.  Our One Franklin (Filenes) project was singled out by Mayor Thomas Menino as a project particularly worthy of community support.  No doubt, continued public sector support and local investment in our projects both in the US and in Korea will help to jump start slowing economies and spur job growth.

Gale International: 2009 and Beyond

As a result of the impressive progress in Songdo IBD, Gale International is considering development opportunities for future city scale projects.  Enlightened government officials in burgeoning and evolving nations like China, India, Ireland, Saudi Arabia, Iraq, Vietnam and Turkey are assuming a proactive leadership role in the creation of new urban models.  The Songdo IBD experience and SIDT make Gale International  and our partners uniquely qualified to assist in these developments. 

The projects Gale International is proud to work on every day are not conceptual; they are thriving developments which present a unique, opportunity to set the standard for how future cities should be constructed.  They are playing an important role in the evolving global economy.  In this time of inertia, there is a distinct need for action.  No doubt, there are many opportunities ahead for Gale International, our investors and development partners.  From here we go “Full Speed Ahead.”