South Boston’s John Hancock Financial Looks to Woo Nervous Consumers

By Joshua Schubert

SOUTH BOSTON – From within the curved glass walls of its headquarters on Congress Street, John Hancock Financial’s position within the insurance market is now nearly as enviable as is its newly-designed building beside the waterfront.

John Hancock has withstood the steep financial market declines and is in position to take advantage of the floundering competition in the insurance business.

The company has reported steady earnings, while not cutting its advertising budget or quarterly dividend.

John Hancock is the US division of Manulife Financial, a Canadian insurance provider that bought John Hancock four years ago.


The company’s stock price is down 52 percent from its peak of $46.05 last November, as compared with losses of 56, 74 and 97 percent for competitors Sun Life, ING and AIG, respectively.

Losses at John Hancock have been comparable to those at Metlife, whose stock price has rebounded steadily since anxious investors pulled their money out last month following comments by Senate Majority Leader Harry Reid regarding a nationally-known insurer that needed cash to survive.

In April, John Hancock began airing new TV ads using “the future is yours” slogan. The goal of the campaign is to “let consumers know that John Hancock understands [their] concerns and that the company has the products and services to help them face the future with confidence,” said Brian Carmichael, the company’s director of corporate communications.

As AIG has been forced to cut its advertising budget, John Hancock increased its ad spending on sports, including the baseball playoffs and college football, during the final months of the year.

“Our media strategy is to have a presence in news, lifestyle and sports properties,” said John Hancock spokesman Melissa Berczuk.

“We can say that we are a top player in the markets where we participate,” said Carmichael.

John Hancock has maintained a 98-cent yearly dividend, while ING and AIG have suspended their dividends, as has been the standard for companies receiving federal cash injections. ING received money from the Dutch government, while AIG was aided by the US government, which now controls the insurer’s operations through a federal conservatorship.

Standard & Poor’s independent rating agency reaffirmed a positive outlook for the company.

“Manulife will continue to exhibit the ability to effectively navigate through these difficult times, given its excellent risk management practices,” according to a statement released last month.

Traders and economists, including Nouriel Roubini, contacted for this story did not respond to requests for comment prior to deadline.

UMass-Boston Construction Plan Remains Unchanged, Despite Economy

By Joshua Schubert

SOUTH BOSTON – Along the waterfront, construction sites remain abandoned. Further inland, an upscale hotel chain backed out of a deal to open a new location.

Still, the University of Massachusetts at Boston is pressing on with a plan to build two academic buildings and parking garages, while moving roads.

We are moving “full steam ahead,” said Steven Dansby, the university building authority’s chief financial officer.

Construction of new student residences is under consideration, said David MacKenzie, the building authority’s executive director.

The current science buildings and parking garage will be demolished once the new structures are completed. Demolition of the garage is scheduled for 2013.

“We haven’t yet gotten to the point of going to the market and borrowing,” Dansby said.

But MacKenzie is optimistic, sensing that the marketing has already reached its lowest point.

The bond market “is starting to loosen up,” he said.

“We expect that the overall bond market will return to near normalcy in six to nine months, which is about the time horizon in which we will need to go to market,” he said.

Vivien Li, a spokeswoman for the Boston Harbor Association, which has been focused on development in South Boston, said the cost of borrowing is not a developer’s only concern.

“The [price of] construction materials have gone up exponentially,” said Li, and
“everyone’s concerned about the instability in the market right now.”

But the new leadership is not expected to alter plans.

“The new chair and vice-chair are completely committed to our current schedule,” Dansby said.

The authority will take steps “to stabilize the existing [parking] garage for the period before it is demolished,” MacKenzie said.

The building authority is constructing plans for as far as 20 years into the future.

S. Boston Emerges as Bastion of Environmentally Friendly Construction

By Joshua Schubert

SOUTH BOSTON – The massive Seaport Square project, which is to include residential and hotel buildings, in addition to retail and office space, is planned to cover 6.5 million square feet on 23 acres along the waterfront.

Less than two years after the opening of the first nationally certified “green” buildings in South Boston, local developers are planning several more buildings that would conserve energy, lower carbon emissions, and use recycled materials.

“Seaport Square is designed to be a LEED-certified neighborhood,” said Janet Logan, Gale International’s marketing director.

The first phase of Seaport Square three buildings, said Vivien Li of the Boston Harbor Association, who expects construction to begin in 2010.

The developers plan for the projected to be completed before 2017.

For a building to be designated as green, the US Green Building Council’s LEED certification system reviews water efficiency, building materials, roof design, and additional energy-related factors.

Buildings are scored based on a 69-pointsystem, with 26 points the minimum to achieve certification. Buildings that score between 39 and 51 points receive a gold certification.

LEED certification is required in Boston for new building projects of at least 50000 square feet, but the developers of Seaport Square aim to achieve a silver certification for their buildings.


In May, the Boston Children’s Museum, following large-scale renovations, became the second building in South Boston to achieve gold certification.

Developers added a 6400 square-foot roof composed of organic materials, as well as larger windows to add natural light.

During renovation, more than 76 percent of debris was “recycled or salvaged,” according to the museum’s website.

In 2007, the luxury condominium complex in South Boston known as the Macallen Building was the first development project of its kind to receive the LEED gold certification in the area in 2007.

The building “set the standard for green construction in Boston,” said Timothy Brown,
City Councilor Bill Linehan’s community liaison.

It was constructed using recycled materials, including natural fiber carpet, bamboo and cork. Total energy use within the building is approximately 30 percent less than the average residential complex.

The children’s museum did not respond to a request for comment prior to deadline, nor did Pappas Enterprises Inc., which manages the Macallen Building.