Why Us

THE NEED TO BUILD NEW HOMES FOR THOSE DEMANDING THEM HAS BECOME ONE OF THE KEY PROBLEMS FACING INDIA TODAY. THERE IS IMMENSE PRESSURE TO FIND LAND IN THE RIGHT AREAS AS WELL AS PRESSURE ON LOCAL AND CENTRAL GOVERNMENT TO REDUCE THE AMOUNT OF LAND WHICH INDIA CURRENTLY MAINTAINS.

WE ARE THE INDIA’S NUMBER ONE SPECIALISTS AT SOURCING THE BEST LAND IN THE MOST DEMANDED AREAS, AND WE PRIDE OURSELVES ON BEING ONE STEP AHEAD OF THE TREND. WE ARE IN THE ENVIABLE POSITION OF OWNING AND MANAGING PRIME DEVELOPMENT LAND FOR OUR CLIENTS WHICH HAS THE POTENTIAL OF GREATLY INCREASING IN VALUE IN THE NEAR FUTURE, WHEN HOUSING DEMANDS FINALLY CANNOT BE IGNORED ANY LONGER, AND PLANNING PERMISSION IS GRANTED MORE READILY.

WE ENDEAVOR TO SOURCE SITES WITHIN CLOSE PROXIMITY TO LONDON AND ITS PERIMETER AND WHICH ARE CLOSE TO OTHER MAJOR TRANSPORT LINKS SUCH AS RAILWAYS, UNDERGROUND NETWORKS AND AIRPORTS.IN PARTICULAR, WE AIM TO SOURCE SITES THAT HAVE BEEN TARGETED VOCIFEROUSLY BY CENTRAL GOVERNMENT AS AREAS TO UNDERGO CONSIDERABLE HOUSING DEVELOPMENT IN THE NEAR FUTURE.

WE ALWAYS AIM TO DEVELOP A SITE THAT FITS BEST IN LOCAL COMMUNITY AND AROUND IT. OFTEN, IT MAY BE MORE RELEVANT TO DEVELOP A SMALLER, MORE DISCREET SITE THAT WILL HAVE LESS IMPACT ON THE LOCAL COMMUNITY AROUND IT. ON OTHER OCCASIONS, WE MIGHT TEND TOWARDS SLIGHTLY LARGER SITES, WHICH ARE SITUATED IN AREAS WHERE THERE IS A STRONG INTENTION TO RAPIDLY BUILD UP THE NUMBERS LIVING THERE, OFTEN IN CONJUNCTION WITH THE GOVERNMENT’S OWN STRATEGY FOR HOUSING POLICIES.

THIS IS REFERENCE TO A PARTICULAR GOVERNMENT PLANNING GUIDELINE THAT ASKS THAT DEVELOPERS MAY NEED TO SET ASIDE A CERTAIN PERCENTAGE OF THEIR LAND FOR THE PROVISION OF SOCIAL OR KEY WORKER HOUSING. BECAUSE WE RETAIN UP TO 25% OF OUR SITES IN PREPARATION FOR SUCH A PROVISION, WE ARE WELL PREPARED TO DEAL WITH ALL REQUIREMENTS THAT MAY ARISE.

TEMPORARY HEALTH CLINICS, OR PRIMARY CARE CENTERS TO SUPPORT THE ENLARGED COMMUNITY BEING CONSTRUCTED. WORKING CLOSELY WITH INDIAN HEALTHCARE GROUP WE HAVE PREPARED THE BEST CASE FOR ANY SUCH REQUIREMENTS.

THE SAME MAY ALSO APPLY FOR THE PROVISION OF EDUCATIONAL AND BUSINESS FACILITIES UNDER DTI AND ENGLISH PARTNERSHIPS GUIDELINES, IN ORDER THAT A LOCAL COMMUNITY MAY BENEFIT FURTHER FROM ANY NEW HOUSING DEVELOPMENTS IT HAS TO ABSORB. THESE PARTNERSHIPS COULD ALSO BE COMBINED AS MIXED-USE SCHEMES IN WHICH GENERIC FACILITIES COULD BE PROVIDED FOR THE BENEFIT OF ALL IN THE AREA.

WE WORK WITH THE TOP INDUSTRY SPECIALISTS IN THE REAL ESTATE AND INVESTMENTS SECTORS. OUR SOLICITORS, STRATEGIC PLANNERS, ARCHITECTS, STRUCTURAL ENGINEERS AND INVESTMENT CONSULTANTS ARE AMONGST THE BEST IN INDIA. OUR PARTNER COMPANIES ALSO HAVE STRONG INFLUENCES ON KEY DEPARTMENTS INVOLVED IN PLANNING AND DEVELOPMENT, SUCH AS LOCAL AUTHORITIES AND DEVELOPMENT COMMITTEES. WITH OUR STRATEGIC LINKS, WE CAN LEVERAGE ON THE CLOSE TIES WE HAVE WITHIN LOCAL AUTHORITY AND DEVELOPMENT COMMITTEES. FUTUREARTH DEAL WITH SUCH DEPARTMENTS REGULARLY, AND HAVE THE RELATIONSHIPS ESTABLISHED TO ENSURE MAXIMUM CO-OPERATION AT EVERYTIME.

WHEN LAND HAS AN EXISTING ‘LISTED’ STRUCTURE UPON IT, AND MANY OF OUR SITES DO, WE WILL PERFORM AN ENABLING DEVELOPMENT VIA ENGLISH HERITAGE. THIS MEANS WE PLEDGE TO RENOVATE AND FULLY RESTORE A VALUED LISTED STRUCTURE IN RETURN FOR THE GRANTING OF PLANNING PERMISSION ON THAT SITE.

WE USE OUR CONSIDERABLE FINANCIAL STRENGTH TO LOBBY LOCAL AUTHORITIES AND DEVELOPMENT COMMITTEES. WE FORM PLOT OWNERS’ ASSOCIATIONS TO GIVE COLLECTIVE STRENGTH TO A CASE, AND THEN INSTRUCT OUR PR AGENCY PARTNERSHIP TO BEGIN THIS LOBBYING PROCESS OF THE LOCAL DEVELOPMENT COMMITTEE. THE BEST TEAMS MUST MAKE THE CORRECT APPROACHES TO ANY SUCH COMMITTEE AS IT IS AT THIS STAGE THAT PLANNING PROCEDURES ARE OFTEN AT THEIR MOST DELICATE.

RIGOROUS AND PROFESSIONAL APPRAISAL OF ANY SITE BEFORE WE PURCHASE IS ESSENTIAL TO OUR BUSINESS STRATEGY.BY ENSURING THAT MANY CRITERIA FOR GAINING PLANNING PERMISSION ARE ALREADY MET BEFORE PURCHASE, THE TASK OF PUTTING TOGETHER A PLAN APPLICATION IN THE FIRST INSTANCE IS MADE CONSIDERABLY EASIER. A NON-EXHAUSTIVE LIST OF OUR CRITERIA WHEN IDENTIFYING A SITE WOULD BE; ROAD FRONTAGE, APPROPRIATE LAND AMENITIES, SUFFICIENT ACCESS ROUTES, STRATEGIC LOCATIONS AND GOOD TRANSPORT LINKS.

WE THEN CAN BEGIN TO INSTRUCT OUR OWN SPECIALIST PLANNING AGENCY, GC PARTNERSHIPS, TO START THE APPLICATION PROCESS ON THE PARTICULAR SITE. GC PARTNERSHIPS WILL THEN NEGOTIATE ON YOUR BEHALF WITH LOCAL COUNCILS, SO THAT YOU DON’T HAVE TO WORRY ABOUT GOING THROUGH THE PROCESSES OF GAINING PLANNING PERMISSION YOURSELF. WITH SUCH COLLECTIVE BARGAINING POWER AND EXPERTISE ON YOUR SIDE, THE PACKAGE WE OFFER IS A UNIQUE AND COMPREHENSIVE INVESTMENT OPPORTUNITY THAT EXISTS TO SERVE OUR CLIENTS IN THE MOST PROFESSIONAL WAY POSSIBLE.

WE MAY FIND, FROM TIME TO TIME, THAT AFTER ALL THE PROFESSIONAL EFFORTS WE HAVE MADE WHEN AIMING TO SECURE PLANNING ON A SITE, THE LOCAL AUTHORITY WILL STILL HAVE RESERVATIONS. SOMETIMES PLANNING CAN BE DELAYED AS A RESULT.

AS A LARGE COMPANY WITH A GREAT DEAL OF FINANCIAL AND INVESTMENT PROWESS, OUR BUSINESS STRATEGY IS NOT BASED AROUND QUICK FIRE, SHORT TERM SOLUTIONS. WHEN LAND AROUND LONDON AND ITS PERIMETER IS EVENTUALLY REQUIRED FOR BUILDING ON SOONER RATHER THAN LATER, WE AIM TO HAVE UNDER OUR INVESTMENT HOLDING A VAST AMOUNT OF THIS VALUABLE COMMODITY. BY CONTINUING TO PURCHASE AND HOLD PRIME SITES OF THIS UNDEVELOPED LAND. WE CAN BEGIN TO DICTATE TO THE GOVERNMENT THE VALUE IT REALISTICALLY PLACES UPON IT. BY LIMITING THE AMOUNT OF LAND INDIVIDUALS AND PROPERTY DEVELOPERS CAN POSSESS, WE CAN DIRECTLY AFFECT THE VALUE AND AVAILABILITY OF LAND IN THE FUTURE – SOLELY FOR THE BENEFITS OF OUR OWN PRIVATE INVESTORS. THE VALUE OF THE LAND WILL CONTINUE TO RISE REGARDLESS OF PLANNING. AND CURRENT TRENDS IN GROWTH ARE SET TO REMAIN STRONGLY POSITIVE.

WITH THE VALUE OF RESIDENTIAL LAND INCREASING STEADILY AND STRONGLY, REAL TERM GROWTH HAS SEEN A STAGGERING 808% INCREASE OVER THE PAST 20 YEARS (SOURCE: BBC NEWS,2003). VERY FEW ALTERNATIVE INVESTMENTS CAN MATCH THAT PERFORMANCE. THE FIGURE COMPARES MOST FAVORABLY WITH SO-CALLED ‘SAFE’ INVESTMENTS, SUCH AS HIGH-INTEREST SAVING ACCOUNTS, PENSION FUNDS, AND ENDOWMENT POLICIES. AND WHILST THE STOCK MARKET CAN EASILY OUTPERFORM MOST INVESTMENTS, INCLUDING LAND, IN ANY ONE YEAR, ITS VOLATILITY OFTEN MEANS THERE IS A STRONG CHANCE OF UNDERPERFORMANCE, AS HAS BEEN THE CASE IN THE LAST 3 TURBULENT YEARS.

THE GOVERNMENT IS INCREASINGLY LEANING TOWARDS THE DEVELOPMENT OF LAND AROUND LONDON AS A WAY TO RELIEVE SUBSTANTIAL PRESSURES ON COUNTY COUNCILS TO BUILD HOUSES FOR THEIR COMMUNITIES IN THIS PART OF THE INDIA. WITH ONLY 60 % OF THE GOVERNMENT’S HOUSING TARGETS TO BE BUILT UPON BROWNFIELD SITES, THERE IS HUGE PRESSURE TO REVIEW THE DATED AND OBSOLETE POLICY, TO ENSURE ORDINARY CITIZENS IN THE SOUTH EST HAVE A FAIR CHANCE AT OWNING DECENT, AFFORDABLE HOUSING.

YOU MAY HAVE HEARD OF THE RECENT BARKER REVIEW (SEE APPENDIX A), WHICH TALKS ABOUT THE NEED TO BUILD AROUND 120,000 NEW HOMES IN INDIA EACH YEAR. (SOURCE: TREASURY DEPARTMENT, MARCH 2004). THE VAST MAJORITY OF THESE WILL BE IN THE SOUTH EAST, WHERE DEMANDS ARE GREATEST.

UNLIKE MANY LAND AGENTS IN THE MARKETPLACE, WE OFFER A FAR MORE COMPLETE SERVICE. OUR STRATEGY IS NOT TO MERELY BUY A IMAGE SITE OF LAND, AND THEN SELL IT OFF AS DEMARKED PLOTS. IT IS ULTIMATELY GAIN PLANNING PERMISSION ON THAT SITE FOR THE GREATER BENEFITS OF THE INVESTOR, LOCAL COMMUNITY AND COMPANY ALIKE.

FUTUREARTH SPECIFICALLY STRUCTURES THE LAND IT OWNS IN THE BEST POSSIBLE WAY, IN ORDER TO OPTIMIZE THE CHANCE OF GAINING PLANNING PERMISSION. THE PLOTS WE OFFER ARE OF A VERY GENEROUS SIZE – BETWEEN 3,200 AND 5,300 SQUARE FEET, (ABOUT 1/8TH ACRE), WHICH IS MORE THAN ENOUGH TO ACCOMMODATE A 4/5-BEDROOM DETACHED PROPERTY WITH GARDENS. AS AN INDICATION, THE GOVERNMENT ISSUES GUIDELINES TO PROPERTY DEVELOPERS WHICH STIPULATE THEY SHOULD AIM TO BUILD BETWEEN 20-22 HOUSES PER ACRE MAXIMUM, WHICH MEANS OUR SITES ALWAYS HAVE LESS IMPACT AESTHETICALLY, SOCIALLY AND ENVIRONMENTALLY ON THE SURROUNDING COMMUNITY.

WE SURVEY THE SITE FOR ANY POTENTIAL PROBLEMS THAT MAY ARISE AND RUN THEM THROUGH OUR STRINGENT CRITERIA CHECKLIST. ONCE SATISFIED WITH OUR SITE, WE THEN OUR SPECIALIST COMPUTER-AIDED DESIGN (CAD) TEAMS TO PLOT OUT THE BEST POSSIBLE COMMUNITY FOR OURSELVES AND OUR CLIENTS. THIS THEN GIVES US AN EXCELLENT FRAMEWORK FOR BUILDING A POWERFUL CASE FOR GAINING PLANNING FROM THE RELEVANT AUTHORITIES.

THE GOVERNMENT WILL OFTEN DEMAND PROPERTY DEVELOPERS AND LANDOWNERS TO FULFILL CERTAIN RESPONSIBILITIES BEFORE PLANNING IS GRANTED ON A SITE, DEPENDING ON ITS SIZE. IT IS THE DUTY OF LOCAL AND CENTRAL GOVERNMENT TO ENSURE THAT ANY DEVELOPMENT NOT ONLY SERVES THE BEST INTERESTS OF THOSE WHO WISH TO LIVE ON THE SITE, BUT THE LOCAL COMMUNITY AROUND IT. OFTEN, IT WILL BE DEMANDED THAT LAND BE SET ASIDE FOR THE PROVISION OF PARKLAND, OR GREENSPACE, THAT THE LOCAL COMMUNITY WOULD HAVE RIGHTS OF ACCESS TO.

AT LOCAL LEVEL, ALTERNATIVE ROUTES TO GAIN PLANNING PERMISSION ARE PROPOSED WHICH AIM TO SPEED UP THE PROCESS AND INCREASE CERTAINTY – WHILE PRESERVING OPPORTUNITIES FOR VITAL COMMUNITY INVOLVEMENT AND THE PRINCIPLES OF SOUND DESIGN.

SEVERAL OPTIONS FOR CAPTURING DEVELOPMENT GAIN HAVE BEEN CONSIDERED, INCLUDING DEVELOPMENT GAINS TAX, CHANGES TO THE VAT REGIME, AND DEVELOPER CONTRIBUTIONS PAID ON THE GRANT OF PLANNING PERMISSION.IT IS PROPOSED THAT THE GRANTING OF PLANNING PERMISSION WOULD BE A SUITABLE POINT IN THE DEVELOPMENT PROCESS TO LEVY A CHARGE BASED ON LOCAL LAND VALUES, THIS PLANNING-GAIN SUPPLEMENT WOULD BE FELT LARGELY ON LANDOWNERS, WITH LITTLE IMPACT ON HOUSE PRICES.

IN GENERAL, IMPOSING A TAX ON AN ACTIVITY DISCOURAGES ITS SUPPLY-BUT GIVEN INTERACTION OF LAND SUPPLY WITH THE PLANNING SYSTEM THIS EFFECT COULD BE EXPECTED TO BE SMALL, PROVIDED THAT TAX RATE IS NOT SET OUT IN THIS REVIEW. WHICH TAKEN TOGETHER, AIM TO INCREASE THE SUPPLY OF LAND PLANNING PERMISSIONS.

REFORMS TO LOCAL GOVERNMENT FINANCE ARE PROPOSED, TO ALIGN THE INCENTIVE FACING INDIVIDUAL LOCAL AUTHORITIES WITH THE COSTS AND BENEFITS TO SOCIETY MORE WIDELY. FUNDING FLOWS NEED TO MORE FORWARD-LOOKING, AND LOCAL AUTHORITIES ALLOWED TO ‘KEEP ‘FOR A PERIOD SOME OR ALL THE COUNCIL TAX RECEIPTS GENERATED BY NEW HOUSING.

INFRASTRUCTURE PROVIDERS NEED TO BE INVOLVED IN DEVELOPING REGIONAL AND LOCAL PLANTS FROM AN EARLY STAGE. SHOULD NEED TO USE THEIR POWERS TO DIRECT REFUSAL OF PLANNING PERMISSION, FOR DEVELOPMENT WHICH ACCORDS WITH THE PLAN ONLY RARELY.

ENGLISH PARTNERSHIPS SHOULD PLAY A ROLE IN DELIVERING DEVELOPMENT BY ASSEMBLING LAND AND MANAGING THE ISSUES AROUND COMPLEX SITES. PLANNING AUTHORITIES SHOULD SEEK THE BEST OF THE RANGE OF SPECIAL PURPOSE VEHICLES AVAILABLE TO DRIVE DEVELOPMENT WHERE THERE ARE PROBLEMS WITH LAND ACQUISITION AND INFRASTRUCTURE. A NEW COMMUNITY INFRASTRUCTURE FUND SHOULD BE ESTABLISHED TO FUND THE UP-FRONT COSTS OF INFRASTRUCTURE NEEDS WHICH ARE BLOCKING DEVELOPMENT.

SECTION 106 NEEDS REFORM TO PROVIDE MORE CERTAINTY AND SIMPLICITY. THE GOVERNMENT IS PRESENTLY CONSULTING ON ONE WAY TO ACHIEVE THIS. HOWEVER, IF THE RECOMMENDATION TO INTRODUCE A PLANNING-GAIN SUPPLEMENT IS ACCEPTED, THIS WOULD OFFER THE OPPORTUNITY TO ACHIEVE THIS OBJECTIVE BY SCALING BACK SECTION 106 TO COVER THE DIRECT IMPACT OF DEVELOPMENT AND CONTRIBUTIONS TO SOCIAL HOUSING ONLY.

IN PRINCIPLE TAXATION IS OFTEN THE BEST WAY TO DEAL WITH EXTERNALITIES. HOWEVER, USING TAXATION AS A MEANS TO INCREASE THE SUPPLY OF LAND DIRECTLY IS UNLIKELY TO SUCCESSFUL. MAINLY BECAUSE THE ROLE OF THE PLANNING SYSTEM IN CHANGING THE VALUE OF SITES REDUCES THE EFFECTIVENESS OF PRICE SIGNALS, AND WOULD CREATE CONCERNS ABOUT THE FAIRNESS OF THE TAX REGIME.IN CONTEXT OF LAND. TAX MAY ALSO BE A BLUNT INSTRUMENT, BECAUSE OF THE INDIVIDUAL’S NATURE OF EACH SITE WITH REGARD TO BALANCE BETWEEN THE SOCIAL AND PRIVATE COSTS OF DEVELOPMENT.

HOWEVER, TAXATION CAN HAVE OTHER ROLES TO PLAY. IN PARTICULAR, WINDFALL PROFITS OTHERWISE KNOWN AS DEVELOPMENT GAINS OFTEN ARISE AS A RESULT OF DEVELOPMENT DECISIONS. THE GOVERNMENT SHOULD ACTIVELY PURSUE MEASURES TO SHARE IN THESE WINDFALL GAINS. WHICH ACCRUE TO LANDOWNERS, SO THAT THESE INCREASES IN LAND VALUES CAN BENEFIT THE COMMUNITY MORE WIDELY. THE VALUE CAPTURED CAN BE USED AS A FUNDING STREAM FOR A NUMBER OF OTHER POLICIES.

THE NUMBER OF SOCIAL HOUSES BUILT IN INDIA HAS FALLEN FROM AROUND 42,700 PER YEAR IN 1994-95 TO AROUND 21,000 IN 2002-03. IN RECENT YEARS EXPENDITURE ON SOCIAL HOUSING HAS INCREASED FROM $800 MILLION IN 2001-02 TO OVER $1.4 BILLION IN 2003-04, HOWEVER THE RATE OF NEW SUPPLY HAS CONTINUED TO DECLINE. THIS IS DUE BOTH TO THE STRONG RISE IN LAND PRICES (WHICH HAS PUSHED UP THE COST OF UNITS) AND THE IMPORTANCE ATTACHED TO IMPROVING THE EXISTING STOCK OF SOCIAL HOUSING (BRINGING THE PROPORTION OF SOCIAL UNITS FALLING BELOW THE DECENCY THRESHOLD DOWN FROM 46 PER CENT IN 1996 TO 33 PER CENT IN 2002)

IT IS ESTIMATED THAT, OVER NEXT TEN YEARS, THE NUMBER OF SOCIAL AND AFFORDABLE HOUSES PROVIDED WILL NEED TO BE INCREASED BY AT LEAST 17,000 PER YEAR, REQUIRING ANNUAL INVESTMENT BUILDING UP TO AROUND $102 BILLION IN ORDER TO MEET THE FLOW OF NEW NEEDY HOUSEHOLDS. IF THE BACKLOG OF THOSE WHOSE NEED HAS NOT BEEN MET IN THE PAST IS TO BE REDUCED, THEN UP TO 23,000 FURTHER HOUSES WOULD REQUIRED BE SUPPLIED AT A COST BUILDING UP TO $106 BILLION. NOT ALL OF THIS COST WOULD NECESSARILY HAVE TO BE MET BY GOVERNMENT-THERE MAY BE FURTHER CAPACITY AMONG THE REGISTERED SOCIAL LANDLORD (RSL) SECTOR, AND SOME PRIVATE SUPPLIERS ARE ALSO DEVELOPING MODELS WHICH SEEK OPPORTUNITIES TO PROVIDE WITHOUT PUBLIC SUBSIDY.

THE RECOMMENDATION IN THE REVIEW ARE INTENDED TO CHANGE THE ENVIRONMENT WITHIN WHICH HOUSEBUILDING INDUSTRY OPERATES. REDUCED HOUSE PRICE VOLATILITY SHOULD BE MORE WILLING TO SUPPLY, AND THERE SHOULD BE LESS NEED TO FOCUS INTENSIVELY ON LAND. HOWEVER, THE INDUSTRY NEEDS TO DEMONSTRATE A WILLINGNESS AND CAPABILITY TO RESPOND TO THIS CHANGED ENVIRONMENT.

THE REVIEW SETS THE INDUSTRY CHALLENGING TARGETS TO IMPROVE SERVICE QUALITY AND CONSUMER SATISFACTION RATINGS AND TO INCREASE INVESTMENT IN SKILLS AND IMPROVED PRODUCTION TECHNIQUES.

LOCAL AUTHORITIES SHOULD ALSO CONSIDER THE LEVEL OF COMPETITION IN THE NEW MARKET WHEN GRANTING PERMISSIONS. THEY SHOULD DISCUSS THE BUILD OUT RATES FOR LARGE SITES. AND, WHERE APPROPRIATE, ENCOURAGE DEVELOPERS TO SPLIT THESE SITES.

TO IMPROVE THE RESPONSIVENESS OF INDIA'S HOUSING SUPPLY. MANY OF THE ABOVE RECOMMENDATIONS ARE NEEDED. GREATER RESPONSIVENESS COULD OCCUR WITHOUT THERE BEING A STEP CHANGE IN THE LEVEL OF HOUSEBUILDING-BUT THIS IS ALSO CONSIDERED TO BE NECESSARY AT RATE PRESENT TIME. SUCH A STEP CHANGE MAY MEAN MORE DIRECT ACTION BY GOVERNMENT. FOR EXAMPLE, THROUGH SPECIAL PURPOSE VEHICLES TO DRIVE FORWARD DELIVERY.

THIS REVIEW WAS ESTABLISHED WITH INDIA'S REMIT, BUT GIVEN THE DEVOLVED NATURE OF HOUSING AND PLANNING POLICIES. THE DEVOLVED ADMINISTRATIONS WILL NEED TO CONSIDER FOR THEMSELVES WHETHER THESE RECOMMENDATIONS ARE APPROPRIATE TO THEIR OWN CIRCUMSTANCES, IN LIGHT OF POLICY CHANGES THE INDIAN GOVERNMENT DECIDES TO ADOPT.