The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
David Chan Profile And Experience
1. Introduction to
Facility Management
Project Audit
Technical Due Diligence
Development/Asset Planning
Building Consultancy
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2. Consultancy
To date, surveyed and audited 200 plus
projects, over a million homes, 1.8 million
sq m of office/commercial;
Work with major mainland developers and
Railway Corp (MTR, SZMTR, SHMetro,
Vanke, Gemdale Corp, Soho China, Can
High, Citic);
Work with most of the major funds, Ibanks,
overseas investors;
Completed projects in over 30 mainland
cities, plus Thailand, Singapore, Malaysia,
Philippines, Vietnam etc;
Sustainable Construction - China Green
Construction & Environmental rating
system;
GBC member with LEED accreditation
capability
3. Introduction to Building Consultancy / Facility
Management, Hong Kong
Based in Hong Kong and Shanghai we can assembled Architects, Engineers, Surveyors, Project
Managers, Facility Managers and assisted by their locally based colleagues typically provide the following
specialist services;
Hong Kong Based Services;
Architectural Design, Interior Design, Surveys, Renovation, AP Services, Building Due Diligence, Project
Management, License Application;
Greater China / SE Asia Based Services;
• Project Audit – Monitoring Construction Quality Progress;
• Engineering Services – Report on Construction Processes;
• Development Consultancy – Advise on Mixed Developments;
• Technical Due Diligence – Assess Building Condition, including CAPEX/OPEX projections and make
investment recommendations from a technical perspective
• Project Coordination / Management – To coordinate and manage projects i.e. an office /shop fit-out
• FM Consultancy – CAM Reports, Fit Out Guides, Operators Handbooks.
•Facility Management – Consultancy.
4. China
Real estate consultancies in
Greater China to provide
integrated building project audit,
monitoring and due diligence
services with property demand
based real estate consultancy and
valuation. Our extensive
experience extends over mainland
China and other parts of Asia.
Essentially our aim is to provide
the type of information which is
critical for making strategic
investment decisions. Our
comprehensive auditing, surveying
and due diligence reports covers
the full range of investment advice
which goes beyond that of a
traditional building survey report to
assist our client in making sound
investment decisions. We are able
to mobilize our team at short
notice and produce full reports
within weeks, sometime days if
needed.
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6. Management Process
Consult
Planned Maintenance
Routine maintenance
Procurement methodology
Benchmarking service levels
Outsourcing
IT Systems
Systems Audit
Energy Conservation
Manage
Enhance
Asset
Support desk
Project
Cleaning
Utility
Procurement of service contracts
Lease
Space planning
Financial
Architectural services
Property
Interior design
Data
Security services
Contract
Office furnishings
Administration
Maintain
Electrical systems
Mechanical systems
HVAC systems
Plumbing systems
Fire systems
Security systems
UPS systems
Emergency systems and
backup
7. Process – Design and Project Management
Construct an
Define Project
Assemble Define Project
initial Plan
Objectives
Team Scope
Adjust the
Plan, &
Analyze Design
Manage
Current Revision
Project
Status and Budget
Change Estimation
Collect Progress
Close Project Publish the Plan Obtain Client’s approvaI
Information
8. Project Auditing – Scope and Purpose
Carry out independent check to evaluate the
quality of site work through an inspection of:
Site construction works
Site progress
Safety, environmental and health issues on
site
Documentary management
Achieve the level of quality in satisfaction of
building occupiers
Identify potential problem during construction stage
that may affect Client’s financial strategies and risk
management
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9. Project Auditing
Auditing System – the use of independent auditors
Inspection- regular & systematic project audits
Identification - objectively assess performances, problem identifications and take
records`
Analysis - identify solutions, potential risks, strengths and weaknesses.
Inspect Identify Analyse
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10. Project Auditing
Methodology
One full day inspection (half day for site
inspection and half day for documents checking)
Experienced auditors, surveyors and engineers
Random unannounced site audit
Tailor-made score sheets
Ranking performance and improvements
Re-check/reinspect previous problems
Benchmarking
Lessons learnt, improvements, problems, what to
do and what not to do.
Alignment with customer/end user surveys
Re-evaluate, feed back, continuous improvement
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15. “The new look gives a much brighter, lighter and more open appearance and of course
means we use the space more efficiently and can therefore fit in the whole team, with
some room for further expansion.” COO of the Client
21. Fitting Out Project Management
KCS Limited is one of Asia's leading independent and
integrated providers of corporate accounting, corporate
secretarial, payroll outsourcing and trust and estate
administration services. They have offices in Hong Kong,
Singapore, Shanghai, Beijing, Shenzhen, Jakarta and
Sydney.
Knight Frank was appointed as Project Manager to
oversee the fitting-out work of their new offices in Beijing,
Shanghai and Shenzhen. We cope with our Client’s tight
schedule and quality requirements and our professionalism
was well recognized. Our strong team in Hong Kong and
Mainland China was proved by serial contracts awarded
from the Client in providing Project Management Services.
We participate the project and provide professional advise
to Client from early design stage, assist in fitting-out
contract procurement and carry out supervision of site work
until Client move-in.
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22. The Link REIT
Appointed by the Hong Kong Housing
Authority, their advisors JP Morgan
and the Joint Global Coordinators
(UBS, Goldman Sachs, & HSBC) to
review a portfolio of 213 centres.
Review covered building and building
services due diligence, asset
enhancement, shopper profile and
a commentary of the proposed
divestment boundaries. We also
produced 10-year Opex and Capex
accounts.
Ultimately 180 centres were selected for
listing. The IPO was delayed in
December 2004, but finally listed in
November 2005.
We were appointed in January 2007 to
review the portfolio and issue
updated 10 year Operational and
Capex reports and to review the
building reports.
In May 2008 we were again appointed to
review the building integrity of the
portfolio and give our views of
asset enhancement of 8 retail
centres.
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23. Industrial Valuation & Building Due Diligence
We have been appointed by Macquarie Goodman to prepare a combination of
valuation and building due diligence reports on three industrial buildings in Hong
Kong. The case study highlighted in this summary is Global Gateway, a 27-
storey industrial building in Tsuen Wan. In this case we were asked to prepare
valuation and building due diligence reports. The total gross floor area of the
building is in excess of 1M sq ft. Specific tasks included:
• Valuation of the building using the discounted cash flow to arrive at the
market value;
• Conducted comprehensive building and building services condition surveys
to confirm structural integrity and identify existing defects;
• Identified areas of deviation from relevant building and building services
regulations and codes of practice;
• Prepared estimates of the cost of rectifying existing defects and non-
compliances;
• Compiled a 5-year forecast of repair, maintenance and capital expenditure;
• Compiled an Asset Register of plant and equipment;
• Calculated the replacement cost for insurance purposes; and
• Carried out a land survey to confirm the location of the building on the lot.
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24. JTC Corporation
Singapore
JTC Corporation (JTC), is a Singapore government
statutory board in charge of planning, developing and
managing industrial space and facilities. Their portfolio
comprises of 51 estates having a a GFA of some 2.7
million square metres.
Details
Sizable portfolio of industrial cluster comprises of 9 flatted
factories, 3 food court buildings and a single amenity
building was reviewed in 2006 and a portfolio comprises of
flatted factories, stack-up factories, ramp up factories,
business park and amenities centres having over
600,000sq.m. of GFA were reviewed in 2007.
Service Provided
We are appointed to conduct a site inspections of the
development cluster. A Cost allocation review was also
carried out for an analysis on capital expenditure (CAPEX)
and operational expenditure (OPEX) and to provide
Comparative analysis using life cycle approach to test the
valuation assumptions. Our CAPEX and OPEX forecasts
have been associated with capital market transactions and
accepted by the independent valuer and incorporated in full
in the valuation cash flow.
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25. Macquarie Bank’s Acquisition of China Retail
Centres for Wholesale Fund’s Offer
With the due diligence we conducted comprehensive
building and building services condition surveys of the
retail centres to confirm their structural integrity and
identify existing defects. We prepared estimates of the
cost of rectifying existing defects and non-compliances
and we compiled 5-year forecasts of repair, maintenance
and capital expenditure.
We also oversaw Environmental Site Assessments that
were used to identify potential areas of environmental
concern, in particular, issues associated with site history,
contamination or existing environmental conditions.
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26. Macquarie Bank’s Acquisition of China Retail
Centres for Wholesale Fund’s Offer
The centres are all located in
provincial Chinese cities. Given the
location of the properties and detail
that was required, the programme set
by the client was incredibly tight. Harbin
We were instructed on 25 January
2005, we delivered valuation
certificates with DCF analysis and S henyang
summary due diligence reports on 18
D alian
February. Tianjin
Jinan
Full detailed due diligence reports
were delivered on 28 February and
valuation reports followed on 31
March 2005. Nanjing
W uhan
In 2006, we were instructed again to
value 6 additional retail centres in 6 C hangs ha
different cities.
Nanning
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27. IPO experience with RREEF CCT
RREEF China Commercial Trust (“RREEF CCT” or “the Trust”) is a
distinctive real estate investment trust (“REIT”) established to invest
on a long-term basis in a diversified portfolio of institutional quality
office and mixed-use properties in major cities in Greater China.
Its flagship asset – Beijing Gateway Plaza is a Premium Grade A
office complex comprising two 29-storey office tower including 3
levels of linked podium and 3 levels of basement, and a total GFA
about 139,093 sq.m. It is situated in Beijing’s sought-after Lufthansa
area, one of four established business districts in Beijing.
Provided comprehensive building and building services condition
surveys of the building to confirm structural integrity and identify
existing defects; compliance check against relevant statutory
requirements; cost allocation review to carry out an analysis on
capital expenditure (CAPEX) and operational expenditure (OPEX).
The results were used by the valuers and the investment bank for
the initial public offering of the REIT in Hong Kong 2007.
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28. IPO - Technical Due Diligence – Parkway Life
REIT Singapore
“Parkway Life REIT is established by Parkway Holdings to invest primarily in income-producing real estate and/or real estate-related
assets in the Asia-Pacific region (including Singapore) that are used primarily for healthcare and/or healthcare-related purposes
(including but not limited to, hospitals, healthcare facilities and real estate and/or real estate assets used in connection with healthcare
research, education, and the manufacture or storage of drugs, medicine and other healthcare goods and devices).
Knight Frank was appointed as the Independent Property Auditor to provide a comprehensive Building Surveying Audit with 10 years
CAPEX and OPEX forecast, identifying major defects and non-compliances for all the buildings that has been included in the
divestment portfolio.
The Portfolio comprised namely three hospitals, medical centres, various offices, testing laboratories, research facilities and car parks.
Post IPO, we were appointed as auditor to for technical due diligence for potential new purchases and for asset improvement work,
progress auditing reporting for assets to be included in the portfolio.
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29. Shenzhen Metro
Shenzhen Metro Co., Ltd. (SZMC) was established on
July 31st, 1998 and its business scope ranges from the
constructions and operations of urban rail transit system to
the development of metro-related property and business.
Having authorized from State-owned Assets Supervision
and Administration Commission of Shenzhen Municipal
Government as a large state-owned and single-funded
enterprise, SZMC independently undertakes the financing,
investment, construction and operation of Shenzhen urban
rail transit system, as well as the value-keeping and the
value-adding of state-owned assets”
Provide consultancy services for superstructure property
development of Qian Hai Wan Depot site. We advised on
the strategic planning, phasing, market positioning and
development methodology.
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30. Handover Inspection of Crown Hotel, Macau
Appointed in May 2007 to provide handover inspection
service for this newly completed 40 storey 6–star luxury
casino hotel with total floor area of approximately 90,000
sq. meters in Taipa, Macau. The team was tasked with
producing a comprehensive project audit for project
completion which includes:
1. Carry out desk study of all plans and specifications.
1. Set up the workmanship standard with the Client and concerned
parties based on the main construction contract and approve the
sample room/floor of each type for the handover standard.
1. Assign of a team of technical staff to conduct handover inspection
of all independent guest rooms, functional and common areas.
1. Conduct 100% inspection including casino, gaming hall, health
club, restaurants, BOH areas, office, guest rooms etc. and make
records with reference to the agreed handover standard.
1. Carry out external facade, glass, metal cladding & louver and
prepare survey report.
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31. China Vanke – Portfolio of Projects in
Shanghai
Completed Projects
In Shanghai (over 1m2
GFA)
Stratford
Racho Santa Fe
Spring Dew Mansion
Beloved Home
White Horse Garden
Holiday Town
Yannan Villas
Everest Town
Blue Mountain
Wonderland
Deep Blue
Aureate City
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32. Project Auditing – China Vanke
China Vanke is the largest listed property developers in China. Our
relationship started with them since 2005. Today we are one of their
strategic partners and independent project auditors, providing project
monitoring services to over 70 developments of China Vanke’s
portfolio throughout China.
We are responsible for auditing work of 40 projects in the Shanghai/
Huadong areas including Wuxi, Nanchang, Nanjing, Suzhou,
Hangzhou and Shanghai City as well as the Chengdu region.
We are handling 37 projects in Southern China including Shenzhen,
Guangzhou and Dongguan, Foshan at different stages of
development.
Our specific work scope included:
• Design audit focusing on sustainability, environmental and energy
concerns
• Monitor and assess the project progress
• Assess quality management and environmental health & safety
management issues
• Project management reporting
• Recommend improvements and preventive actions for the client
• Score and rank performance with Key Performance Indicators
(KPI)
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33. Development Consultancy - China Vanke
We have been appointed by China Vanke as the lead development consultant for its mixed development project at Qibao No. 53.
The specific tasks included:
• Provide master planning and strategic advice
• Prepare the schematic design of planning and elevation
• Marketing
• Review documentations
• Design management
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35. Project Monitoring - Beijing Yintai Centre
Beijing Yintai Centre is one of the the biggest mix
development in Beijing with a total GFA of over half a
million sq m. It is one of the landmark in Beijing, including
a tower of hotel, apartment and office tower.
We were appointed by Hypo International as an
independent project auditor for the project monitoring of
one of the 40 storeys (90,000 sq m) West Tower.
Our specific tasks included:
• Monitor and assess the project progress
• Projection of completion date
• Review of construction budget
• Verification of progress payment to contractor
• Review current status of leasing
• Review development consents obtained and applied
for
We advised our Client on the potential delay of the
construction work happened on site and associated risks
revealed from the progress during our inspection. In such
a way, our Client as an investor, have had first-hand
information of the site progress and prepared contingency
plan to minimize possible risks and loss in advance.
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36. Facilities Management of AVAYA Properties in
Hong Kong and China
Newmark Knight Frank Global Management service (NKFGMS) was appointed by AVAYA to provide
global facilities management for AVAYA. For the Greater China Region Knight Frank oversee the
provision of our service in Hong Kong, Beijing, Shanghai, Dalian, Chengdu and Guangzhou.
A bespoke centralized communication system has been developed to enhances the quality of
facilities management. Through Knight Frank’s global offices support, this enhanced system can
make efficient use of resources, to provide a standard management methodology and unique
communication system between AVAYA’s staff and Newmark Knight Frank’s Facilities Managers in
the worldwide.
NKFGMS Service include:
“Our Objective, therefore, is to be
§ develop and implement a facility management program,
“Gatekeepers” of the real estate we are
§ establish and maintain a good working relationship with Company’s landlords,
entrusted with. We are not caretakers,
§ provide the highest level of customer service,
we are responsible to pro-actively
§ minimize Company costs and expenses,
manage the facilities and provide
§ identify opportunities for improvement,
accurate, timely information, and identify
§ increase service levels,
methods and changes to improve
§ improve facility management strategies,
operations, drive out costs, and provide a
§ and manage potential optimization of space and services
healthy, safe and productive
environment.“
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37. Our Experience with City of Dreams
City of Dreams is an integrated resort being developed on the Cotai Operators Handbook – To compliment the Fit-Out Guide we have
Strip in Macau and at US$2.5B represents the second largest
produced a Operators Handbook to assist Retailers with services,
investment on the strip.
management, safety and other information about the development and
Macao to allow them to successfully launch and operate their
The project includes a 420,000 sq ft casino and three high end businesses.
hotels and luxury serviced apartments with a combined total of over
2,400 rooms as well as an entertainment venue hosting permanent
Service Charge Report – We have produced an in depth analysis of
staged shows. The retail component includes around 300,000 sq ft
net of up market boutique retailing and fine dining restaurants. We both OPEX and CAPEX forecasts to allow us to recommend to the client
are appointed to provide our services for the following projects for a Service Fee and other costs to charge retailers upon opening in 2009.
the Retail and Food & Beverage Mall of the Development.
Our report uses a number of prudent assumptions enabling our client to
have a defensible report to assist with negotiations with potential
Fit Out Guide – Our team has produced a comprehensive, colour operators. Our report includes recommendations on staffing,
coded, user friendly and compliant guide to assist a diverse range of maintenance, cleaning and operating costs and as well as capital
Retailers to Fit-Out their retail units efficiently, safely, whilst adhering
expenditure figures forecasted over 10 years.
to the own design concept in accordance to international building
and local government codes and ordinances.
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38. Project Monitoring in Bangkok, Thailand
The Wellcome Trust is the world's second largest medical charitable institution with net assets of
£15.1 billion ($30.2 billion).
The overall mission of the trust is quot;to foster and promote research with the aim of improving human
and animal healthquot;, and in addition to funding biomedical research it supports the public
understanding of science.
Knight Frank provides project monitoring service for one of the Trusts projects – Mahidol-Oxford
Tropical Medicine Research Unit (MORU) at 420/6 Rajvithi Road Bangkok, Thailand. Our work
includes:
Monitor the construction of an office floor and two floors of Laboratories including a secure a Bio
Safety Level 3 (BSL 3) Lab, in Bangkok, Thailand
Monthly inspections, to report on progress, budget and quality
Detailed monthly reports were forwarded to client
Final report contained a number of recommendations to be implemented in future projects in
developing economies similar to Thailand
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39. Insurance Valuation – Tsing Sha Control Area
The whole Tsing Sha Control Area covers 13.6km of road network linking Sha Tin
and Tsing Yi.
Knight Frank was appointed by Transport Infrastructure Management Ltd to
provide insurance valuation on building, structure, plant and equipment for the
following portion in Tsing Sha Control Area:
1. Tai Wai Enclosed Section
2. Sha Tin Heights Tunnel
3. Toll Plaza
4. Sha Tin Administration Building
5. Eagle’s Nest Tunnel
6. Lai Chi Kok Viaduct
7. Ngong Shuen Chau Viaduct
8. Ventilation Building
9. Portal Buildings
10. Connecting interchanges, slip roads and accesses
11. Control Point located along the route use for traffic control
1.Plant and equipment we valued include power supply system, tunnel ventilation,
building services, lighting, Central Monitoring and Control System (CMCS), CCTV
system, communication system, Traffic Control and Surveillance System (TCSS),
Toll Collection System (TCS), Ticket Scanning System, Speed Detection
Equipment, Global Positioning System and Image Monitoring System, fire
protection system and water supply.
1.Our services aimed to provide Client an reinstatement with new cost for
insurance purpose. Type of properties we valued include buildings and also
infrastructures like Tsing Sha Control Area in this case.
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40. Project Management of Coastline Villa
Renovation
Coastline Villa consists of 23 blocks of low rise development with a
total of 230 units. Knight Frank was appointed by Discovery Bay
Services Management as Project Manager to drive the whole
renovation process. We conducted condition Surveys and addressed
the problems in the building and proposed corresponding repair works.
Tender documents were drafted afterward and invited tenderers to
bid. Knight Frank act as an advisor to Client and analyze the returned
tender. During the construction stage, we closely monitored the work
in order to be completed on time and up to a good standard of
workmanship. Every payments submitted by contractor were verified
and certificate of payments were issued to Client for payments.
Scope of Coastline Villa Renovation includes:
• External wall patch repair
• Internal common areas renovation
• G/F lift lobby enhancement
• Repair of uPVC windows
• Enhancement of occupational safety facilities in the development
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41. 146 & 148 Argyle Street, Kowloon
We have been appointed by Sky Treasure Ltd to apply for Lease
Modification to relax the restrictions on the number of storeys and
building height under the existing land grant conditions governing the lot
to enable a redevelopment under the parameters stipulated under the
latest Outline Zoning Plan. The lease modification enabled the plot ratio
is increased from 4 to 5.
Our challenges is to secure a fair premium assessment in a volatile
market situation.
Knight Frank is also appointed as Project Manager to oversee the
redevelopment which will provide over 120,000 sq ft of luxury flats. The
project is targeted for completion in 2012.
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42. Cyberport, Pokfulam, Hong Kong
We have been appointed by Pacific Century Premium Developments
Limited to apply for the Certificate of Compliance (CC) for the entire
Cyberport development comprising 4 million sq ft of residential space,
1.8 million sq ft of retail and office space and a 173 rooms hotel. The
development spanned over 8 years and responsible for coordinating the
building plan approval process to enable the luxury domestic units can
be completed on time and delivered to the purchasers.
We worked with a multi discipline team of planner, architect, landscape
architect, engineers and the CC was issued in late 2008 which marked
the full completion of the largest private participation project in recent
years.
Knight Frank also appointed for building consultancy service in applying
clubhouse license from Home Affairs Department(HAD). Our building
professional directed the whole process and take care of every
requirements that HAD requires for the clubhouse license.
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43. Selection of some of the major clients from
current and previous projects
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49. Profile
Published Articles
Conferences speaking
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50. Resume
Photo image
1.88”(W) x 1.84(H)
David Chan MSc HKIA
RIBA MCIOB NFPA SFPE
David Chan is a partner of Compass Studio Ltd, He has over 20 years experience within the
construction and property industry working for both the public and private sectors. David is UK
educated with a Master Degree in Construction Management and Economics. He is a qualified
architect, a chartered builder and a fire engineer. He has extensive experience in building
design, fire engineering, construction, project and facilities and environmental management and
worked on several major infrastructure and property development projects across the region.
Prior to joining Compass, David was the Divisional Director of Knight Frank building consultancy
and facility management division and worked on the listing of several major property REIT and
sizable projects across China, Hong Kong and other parts of the Asia Pacific . Prior to that, David
heads the Facilities Management for KCRC (MTR) Property Division responsible for the
management of over 10 billion of property assets.
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