Mipim 2014 news 4 by RX REAL ESTATE SHOWS

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DAY

Friday 14 March 2014

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MIPIM AWARDS

Awards winners revealed

SOVEREIGN WEALTH

Angola fund targets hotels

P12

GOTHENBURG

City-centre transformation

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CONTENTS

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NEWS 6 Renewed confidence in Madrid

15 Budapest draws inward investment

25 Sogeprom’s sustainability partnerships

The votes are in and the judgements made. The winners were announced for this year’s MIPIM Awards at a glittering ceremony in the Grand Auditorium last night. To find out who triumphed in this closely-fought contest for jury and delegate votes turn to page 9.

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The official MIPIM daily newspaper Friday 14 March 2014

The MIPIM News team is located in the Palais des Festivals / Level 5 Editorial Contact: mipimeditor@gmail.com

Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor in Chief Graham Parker News Editor Doug Morrison Reporters Ben Cooper, Mark Faithfull, Steve McCormack, Mark Moore, Liz Morrell, Paul Strohm Sub Editors Clive Bull, Julian Newby, Joanna Stephens Proof Reader Debbie Lincoln Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designers Muriel Betrancourt, Veronique Duthille, Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographers Christian Alminana, Olivier Houeix, Michel Johner, Yohann Mortier Editorial Management Boutique Editions. PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Manager Amrane Lamiri Publishing Co-ordinators Nour Ezzedeen, Emilie Lambert Production Assistant, Cannes Office Eric Laurent Printer Riccobono Imprimeurs, Le Muy (France). Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557.

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NEWS PARIS AIRPORTS OFFER 400 HA OF OPPORTUNITIES THE MAIN airports in Paris have an annual throughput of about 89 million passengers, with Charles de Gaulle airport’s annual 2.3 million tonnes of cargo making it the busiest freight airport in Europe. Aeroports de Paris (AdP), the company responsible for managing Charles de Gaulle, Orly and Le Bourget airports is, however, also a significant landowner and property developer. AdP’s marketing manager in the property department, Renaud Guegand, said that Paris’s airports have about 400 ha of vacant land available for development and is in Cannes to meet end-users in particular. “Our ambition at MIPIM is to meet end-users for developing airport cities as well as hotel investors and hotel operators.” He also said that the company wants to meet public bodies that can facilitate the development of land. Collectively the three airports have 1,300 ha, excluding operational areas. Additionally, there is a regular turnover of buildings that are redeveloped having become obsolete. FRENCH minister for higher education and research Genevieve Fioraso paid a visit to MIPIM yesterday to praise the progress of collaboration between real estate and scientific development in France. Speaking at a packed session at the Paris Pavilion, Fioraso highlighted the Paris-Saclay project, a major plan to build a new university campus to house cutting-edge science, technology and research facilities.

Gothenburg sets sights on 2035 major city-centre transformation

WEDISH port city Gothenburg is to undergo a large-scale redevelopment over the next two decades, with a series of phased mixed-use schemes in key central areas due for completion in 2035. Major elements of the project include the construction of a new underground railway line linking the city with its suburbs and the wider Swedish region, a new bridge over the city’s river, and a landmark residential tower within Gothenburg’s science business park district, the design of which is currently out to an architectural competition. “The redevelopment will make Gothenburg become a denser city, with the transformation of the old ship-building and industrial zones into places for people to live and to work across a diverse range of business sectors,” city planning director Agneta Hammer said. “We are also looking at further crossing points for the river, although as an important waterway ships must still be able to access the full length of the river.” Gothenburg celebrates its 400th anniversary in 2021 and the city plans to have some of the residential development work and a new park completed in time for this important landmark. “We are at MIPIM to seek investment in the projects, which will total 5 million sq m,” city architect Bjorn Siesjo said. “In addition to what is happening in the city centre, we are developing twice as much space in the immediate suburbs.”

Big plans for Gothenburg: Bjorn Siesjo and Agneta Hammer

MOSCOW-based Hals-Development is reinforcing both its MIPIM presence and the company’s slogan — ‘intelligent development’ — by displaying two classic Russian cars dating back to the 1950s. Parked beside the entrance to the Lerins Hall are pristine examples of the GAZ-M20 Pobeda which has a two-litre, 52-horsepower engine, and the 2.4-litre, 80-horsepower GAZ-21 Volga which was produced until 1970 at the Gorky motor plant. Hals-Development marketing manager Julia Khakimova said that bringing the cars to Cannes celebrates Russia’s cultural history and reflects the company culture of “respecting the past to build something and significant and good for everyone”.

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NEWS PRELIOS ISSUES AN INVITATION TO ITALY ITALIAN asset manager Prelios is at MIPIM following an internal company restructuring and the sale of underperforming assets in Germany. Prelios, which is at MIPIM to promote Italy to the international real estate market as a destination for investment, has considerable property assets under its real estate fund Prelios SGR. The fund has embarked on a project with Italian grocery chain Eately, in which it will finance the development of Eately World, a theme park in Bologna based around food. Prelios, which is listed on the Italian stock exchange, has recently undergone boardroom changes and taken on a new capital partner, Feidos.

Madrid benefits from renewed confidence in Spanish market

ROWING investor interest in the Spanish market is driving opportunities for Madrid’s real estate community, which is out in force at MIPIM on the Madrid stand. The delegation from the Spanish capital includes Gestion De Valores y Tasaciones, Gesvalt, Ghesa Fountains, Grupo Olloqui, IBA, IREA Corporate Finance, JFC, Larkai, Kieinvest, Mira, Roedl & Partners, Ursus Kapital Inversiones Inmobilarias and Valuation & Advisory Alliance Espana. Advisor Savills reported that total take-up in the Madrid office market reached 385,000 sq m in 2013, representing a 35% increase year-on-year. International fund involvement has also increased, from 33% in 2012 to 55% in 2013 — 81% of which were from European countries. Savills said that France, the UK, Germany and Switzerland were the countries with the most active investors.

The Madrid stand is showcasing a range of businesses based in the Spanish capital

Luis Espadas, head of capital markets at Savills, said: “The improvement in economic expectation has restored investor confidence in the whole of Spain and Madrid has benefited from this.” Mea nwh ile, Mad r id-based Grupo Olloqui is showcasing its Palacio De La Bahia project in Panama, for which it is seeking international investors. The residential tower will include a five-

star hotel and luxury retailing, with a total built area of 160,000 sq m. Grupo Ollqui is investing 20%-30% of the $300m (€215m) project costs and completion is due for 2016, according to chief marketing officer Victor Lopez. “It is our first year here and we have had lots of meetings with investors for what we believe is an exceptional opportunity,” Lopez added.

Throwing light on energy reduction ERASMUS ELLER, owner and founder of Berlin-based Eller + Eller Architects, holds his company’s MIPIM Architectural Review Future Projects Award, which he received on Wednesday in recognition of his firm’s FGS Campus design in Dusseldorf. Eller is part of a group of architects at MIPIM from the Network for Architecture Exchange (NAX), an offshoot of the Federal Chamber of German Architects (BAK). He is pictured here with NAX advisor Claudia Sanders.

PHILIPS and Somfy were at this partnership to more coun- are also looking to introduce their MIPIM’s Innovation Forum tries,” he added. expertise earlier in the commerthis week to promote their Light According to Christelle Granier, cial-building design process. “For Balancing partnership, which alliances and partnerships manag- us, the objective is to introduce our combines Philips’ lighting ex- er for Somfy, the two companies partnership to people involved in pertise with Somfy’s the design and building solar-shading conphase,” she said. trols to reduce energy Philips is also preconsumption and imviewing its luminous prove comfort levels LED carpeting project, in buildings. which incorporates The partnership is allighting under a speready active in France, cially designed carpet the US, China, Gerfrom partner Desso that many and Spain, but turns on under pressure. Alain Minet, marketMinet said that, for ing manager at Philips Philips, such partnerLighting, said new ships are key. “They territories were being are the best way to insought. “Our aim at Philips Lighting’s Alain Minet: “Partnerships are the best troduce innovation,” MIPIM is to introduce way to introduce innovation” he added.

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NEWS PLP HAS DESIGNS ON THE WORLD

Progetto furthers eco-debate with monument to green living

I Foshun New City Suning Plaza

PLP ARCHITECTURE is extending its reach globally. According to partner Lee Polisano, non-UK projects now account for 40% of the architect’s order book. Typical of the emerging projects is Foshun New City Suning Plaza, a mixed-use project for Suning Estate in Fushun, China. It comprises a 300-metre landmark hotel and office tower with a large retail complex, which will complement the emerging financial and business centre in Foshan.

TOULOUSE ENTERS A NEW DIMENSION

The Toulouse stand

AMONG the projects showcased on the Toulouse stand is InnoMetro, billed as a new ‘urban dimension’ for south-east Toulouse. The south-easterly extension of the Toulouse Metro system, which will open in 2019, will spark a transformation of Labege-Innopole, the biggest business park in the Midi-Pyrenees region. More than 25 ha of land will be opened up for development around a new multi-modal transport interchange.

TALIAN architect Progetto CMR has pushed sustainability up the agenda this week with the Oxygen Eco-tower, its ambitious concept aimed at potential developer clients working in densely populated cities with few green spaces. The Oxygen Eco-tower, which has been devised with the likes of Singapore and Jakarta in mind, puts a high-rise spin on traditional ideas for villas with gardens. The proposed 75-storey building is made up of 161 vertical villas with private gardens. Progetto’s marketing and sales executive, Silvia Criscione, said: “The tower goes from a single villa — the penthouse — on the top floor, with 450 sq m of floor space and 800 sq m of garden, to two villas per floor lower down, with 200 sq m of floor

and 500 sq m of garden. It then goes down to three villas per floor on the lower floors, with 200 sq m of floor and 280 sq m of garden.” The tower complex’s facilities include a spa and wellness centre, kindergarten, cigar bar, lounge bar, solarium and restaurant. The design is by architect Progetto CMR. The main partners in the construction team are Tecnimont Civil Construction, Permasteelisa Group and Cimolai. Progretto CMR is based in Milan, with offices in Rome, Athens, Barcelona, Istanbul, Prague, Bahrain, Beijing, Chennai, Dubai, Jakarta, Singapore and Tianjin. Progetto’s Oxygen Eco-tower concept: ideal for densely populated cities

Regional cities set for retail expansion WITH many of Europe’s capital cities short on retail availability, pan-European retailers are increasingly looking to secondary cities, said Peter Gold, managing director of cross-border EMEA retail at CBRE. Gold noted that the fundamentals and catchment had to be right for retailers to be attracted away from prime, but cited cities such as Leipzig, Hannover, The Hague, Antwerp and Milton Keynes as representative of a new raft of cities proving increasingly popular with retailers. “What we are seeing is that retailers remain very risk averse, but what is not clear is whether we are still unravelling the aftermath of the financial crisis or whether this is the new normal,” Gold added. “However, although capital cities and the dominant global malls remain very strong performers, if retailers can get

CBRE’s Peter Gold: “the right space in the right regional cities”

the right space in the right location in regional cities, they are much more prepared to consider those opportunities.” Recent CBRE research has also indicated that an increasing number of retailers are looking to expand their portfolios this year, with the likes of H&M and

Desigual announcing aggressive growth plans. In addition, recovering markets such as Spain are attracting interest once more. “There is still plenty of cash out there, both from investors and retailers,” Gold said. “I believe the Spanish retail market is on the cusp of an upturn.”

AWARDS

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MIPIM Awards winners revealed Winners in the various categories were identified by combining the votes from the Awards Panel of Judges headed by Mike Strong, executive chairman, EMEA, at consultant CBRE, with the votes of MIPIM delegates cast this week BEST FUTURA PROJECT Max IV Lund, Sweden Architect: Fojab Arkitekter and Snohetta Developer: Fastighets AB ML4 BEST INNOVATIVE GREEN BUILDING Gardens by the Bay Singapore Architect: Grant Associates and Wilkinson Eyre Architects Developer: National Parks Board Singapore

BEST OFFICE AND BUSINESS DEVELOPMENT Tanzende Tuerme Hamburg, Germany Architect: BRT Architekten Bothe Richter Teherani Developer: Strabag Real Estate, Business Unit Hamburg

BEST SHOPPING CENTRE Emporia Shopping Centre Malmo, Sweden Architect: Wingardhs Arkitekter Developer: Steen & Strom Sverige

BEST RESIDENTIAL DEVELOPMENT The Oliv Singapore Architect: W Architects Developer: TG (Balmoral)

SPECIAL JURY AWARD Gardens by the Bay Singapore Architect: Grant Associates and Wilkinson Eyre Architects Developer: National Parks Board Singapore BEST BRAZILIAN PROJECT Bosque das Acacias Sao Goncalo do Amarante Architect: HCP Architecture & Engineering Developer: EcoHouse Group

BEST REFURBISHED BUILDING InterContinental Marseille â&#x20AC;&#x201C; Hotel Dieu Marseille, France Architect: AAA Bechu Agency & Tangram Architects Developer: Altarea Cogedim

BEST URBAN REGENERATION PROJECT Ko-Bogen Dusseldorf Dusseldorf, Germany Architect: Studio Daniel Libeskind Developer: die developer

BEST RUSSIAN PROJECT VTB Arena Park Moscow, Russia Architect: Manica Architecture / Tchoban & Kuznetsov Developer: Dynamo BEST TURKISH PROJECT Spine Tower Istanbul, Turkey Architect: Iki Design Group Developer: Soma Group

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NEWS HOTEL SECTOR SEES UPTURN APPETITE among investors worldwide continues to grow for the hotel market, thanks to strong performance, greater transparency and robust consumer demand, said JLL UK and Northern Europe hotels and hospitality CEO Jonathan Hubbard. “We really started to notice the upturn in interest around 12 months ago,” Hubbard said. “That has certainly continued at this year’s MIPIM. I think it’s partly a reaction to the shorter leases being commanded in other real estate sectors, because outside the budget sector, hotels tend to be under management contract rather than leased, which makes them stable investments.” Hubbard said that new categories of hotel operators are also helping both customer demand and investor prospects. He said that the rise of good-quality budget hotels to replace traditional bed and breakfast and low-star hotels had boosted choice, while more affordable luxury options had been opening around Europe. “There is still very strong demand at the top end, and far more options for budget or design-conscious customers,” Hubbard said. “We would expect to see some of the diversified funds increase their hotels exposure over the coming year.”

TLDC develops Taiwan resort with sea and mountain views

AIWANESE Taipei-based developer TLDC (Taiwan Land Development Corporation) is turning what used to be an industrial and factory area into a world-class beach resort — the 120,000 sq m Hualien Residences — which also contains a hotel and a retail element. Danish architect BIG has produced a dramatic design which in sightlines and themes echoes the surrounding Taiwanese mountains. “Hualien Residences has great potential for spectacular views,” Fu-Sheng Chiu, chairman of TLDC said. “Taiwan’s central mountain spine is to the west of the development and the sea is to the east. Hualien City is to the north.” Chiu described the architecture of the residences as “morphing and changing depending on the viewpoint, seen either from the ocean or from the mountains. Or, if seen from the city, the buildings appear to be an urban oasis in a green landscape.” Undulating stripes flowing east to west dominate the buildings lines which act to guide the wind through the complex to provide cooling breezes, while at the same time acting as shaded lines.

TLDC’s Fu-Sheng Chiu: “great potential”

“The low-angle high-glare morning and evening sun is blocked by the stripes and the building envelopes, and green gardens with which the stripes are covered mitigate against heat gain,” Chiu said. The first phase of Hualien Residences is targeted for completion in 2016, Chiu added.

Moscow station project on track Pioneering: the scheme’s developers say it will be the first integrated development

TURKISH DESIGNS GOING GLOBAL BUSINESS development co-ordinator Can Hiziroglu from Turkish architect ERA spoke to MIPIM News about the practice’s latest projects. “We’re working on major projects in five cities around the world at the moment: Istanbul, Paris, Beijing, Sofia and Bucharest,” Hiziroglu said. “But our biggest current project is the Garanti Technology Centre — a new 140,000 sq m technology centre for Turkey’s second-biggest bank, Garanti Bank.” Hiziroglu said the practice was also working on the multi-purpose cultural centre in Maslak, one of Istanbul’s main business and commercial centres.

PIONEER Group is moving ahead with its work on Botanichesky Sad, one of the first of 255 transit oriented developments planned for Moscow, Russia due by 2018. The site is one of 31 stations owned by MKGD. The $1bn (€0.72bn) development has an overall land space of 26 ha and comprises 200,000 sq m of residential and 150,000 sq m of communal real estate space.

Fadi Jabri, architect and general manager of Nikken Sekkei, said the development marked a new trend in the city given its combination of transport and commercial space. “This will create the first truly integrated development,” he said. Andrey Grudin, managing director of Pioneer Group, added: “We want to attract the best practice from other countries and also want to attract private funds and investment.”

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NEWS VIRTUAL TOURS AID REAL ESTATE MARKETING VIRTUAL online tours that showcase 100% of a development’s features will greatly increase the future efficiency of the sale and marketing of real estate, believes InspiredLabs’ James Morris-Manuel. The company offers agents, developers and “anyone in between” the ability to produce high-resolution, zero-distortion tours of their projects. Business benefits include a reduction in the time it takes to sell, achieving the best possible price and differentiating the product and seller from the competition. “Our technology is like Google Street View for the inside of buildings,” said Morris-Manuel. “It covers the whole building, not the 5-20% of other systems so interested parties can have a virtual viewing of a whole building online.”

InspiredLabs’ James Morris-Manuel

GREENFIELD TO THE RESCUE A HIGH-profile US financial services company that has been involved in headline events such as the BP Gulf oil-spill and worked with the Japanese Real Estate Institute in the aftermath of the 2011 tsunami is at MIPIM seeking further international opportunities. Clifford Lipscomb director of economic research at Atlanta-based Greenfield Advisors is at his first MIPIM seeking global opportunities for his company’s independent professional services. Greenfield Advisors specialises in complex real Greenfield Advisors’ estate problem Clifford Lipscomb solving.

Angola fund moves into hotel acquisition and management

NGOLA’s newly established sovereign wealth fund is planning to establish a $500m hotel real estate fund. Jose Dos Santos, chairman of the board of directors of the Fundo Soberano de Angola (FSDEA), is in Cannes to meet service companies and hotel experts and to identify potential opportunities to acquire hotels in Africa. FSDEA currently has one external advisor for its set-up period, of which there is about nine months remaining — but will open tenders to potential additional advisors after that. “We are looking to invest in hotels but not just in the property, in the management too,” Dos Santos said. The FSDEA went live in 2012 and during the start-up phase its emphasis has been fixed-income investments. The fund was established to invest the country’s largely oil-generated wealth, which forms 90% of government revenues and 50% of the country’s GDP. As the fund becomes better established the second phase will see FSDEA move into slightly riskier investments with a longer-term return, hence the interest in hotels. Business hotels in Africa will be the initial target. “That is the sector that we would like to start with because it is sustainable,” said Dos Santos, who added that he wants to avoid the boom-bust cycles of other property types such as offices and residential. FSDEA will initially invest in hotel manage-

Jose Dos Santos: focusing on hotels

ment and is keen to develop human resources, supply chains and infrastructure and is planning to build a hotel industry training school in Angola to increase the supply of ready trained staff. Later, the fund will buy existing hotels to modernise and refurbish and in further phases of development, may build its own hotels and invite participation from co-investors.

Ghent presents new opportunities KEY FIGURES from the government of Ghent are in Cannes to highlight the opportunities in the Belgian city to the international market. Speaking to MIPIM News ahead of a conference session at the Belgian stand, deputy mayor for urban development, housing and green spaces Tom Balthazar said that there were a number of key developments under way or in the pipeline, such as the Loop, a mixed-use development to include office space and a designer outlet. He said that there was potential for further development in Ghent across all sectors of real estate. This year the Eiland science park project, in Zwijnaarde to the south of Ghent is due for completion. Balthazar was joined by the City’s deputy mayor Filip Watteeuw, who spoke at a special

conference session yesterday. The event was organised as part of a major push to showcase the investment opportunities in Belgium.

Tom Balthazar (left) with Ghent deputy mayor Filip Watteeuw

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NEWS LUXEMBOURG MAKES A STAND A HIGH-powered delegation from Luxembourg marked the Grand Duchy’s ninth attendance in Cannes with an official reception on Wednesday. Headed by the mayor of the City of Luxembourg, Lydie Polfer, the event was also attended by the vice-prime minister and economy minister Etienne Schneider, and leaders of the country’s Chamber of Commerce. According to Carlo Thelen, director general of the Chamber, it is very helpful for a small country to represent a range of business sectors through a joint presentation at an international event such as MIPIM. “By sharing a national pavilion, our visibility on the world stage is better,” he said. “We are a small but open economy and the increasing internationalisation of world markets is very important for our members. For example, this year we are gathering together representatives from a range of sectors, including real estate professionals, banks, lawyers and building companies.” Thelen added that another advantage of a national presentation was that companies could discuss domestic projects with other delegates from Luxembourg, free from the day-to-day pressures faced at home.

Quaqua offers ‘multiple ways to invest’ in booming Marica

IL-AND gas-rich Brazilian city Marica, which lies close to Rio de Janeiro, has plans for a major infrastructure development and is looking for investors to share in the city’s success. Washington Quaqua, who is one year into his second term as elected mayor of Marica, is at MIPIM to explain the opportunities to the investing community. “We want international investors as part of our strategy of capturing investments from external sources,” said Quaqua, who is also a sociology professor. He added: “We are not only looking for real estate investments. There are multiple ways to invest. We are looking for investors in oil and gas, buildings and struc-

tures. We are looking for different perspectives.” Marica claims to have the biggest seaport in south-west Brazil. This is the site of the city’s biggest investment: a $2.5bn (€1.7bn) new port facility, the Ponta Negra terminal, which will include a liquefied natural-gas terminal to service a gas pipeline, now under construction. The 150,000-population city also has a newly modernised airport, and plans for a rapid train project costing $400m. Another plan is the creation of a waterways link through the city’s seven lagoons. The link is for tourist purposes, but will also improve urban mobility. “Marica has an area of 360 sq km, so transport is a problem, but it is also a question of quality of life,” Quaqua said.

Marica mayor Washington Quaqua: “We are looking for different perspectives”

Christmas comes early to Cannes

Lighting up Innsbruck

Luxembourg Chamber of Commerce’s Carlo Thelen: “a small but open economy”

CHRISTMAS may be the last thing on delegates’ minds as they enjoy the sunshine in Cannes, but Austria’s MK Illumination is promoting the festive lighting and decoration it offers to shopping

malls and town-centre retail destinations around the world. The company has brought Christmas to some notable clients, including Westfield, Manchester City Council, Stockholm city

centre, Sandton City in South Africa, Skyline Plaza in Frankfurt and its home city of Innsbruck. The company operates worldwide via 28 independently run subsidiaries.

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Budapest ranked as Eastern Europe’s most attractive city

HE HUNGARIAN Investment and Trade Agency (HITA) has debuted this year at MIPIM, where its president Janos Berenyi was also presented with an fDi award recognising Budapest as the most attractive city in the region to investors. Berenyi said the award was important to HITA: “We proved to be the most competitive among the countries in the CEE region who very often are Hungary’s competitors for foreign investments. It is always more valuable when someone neutral says Hun-

gary is the right location to invest in than when we try to persuade investors about our strengths,” he said. The body was established by the Hungarian Government to promote the international business activities of small and mediumsized enterprises, and to encourage foreign businesses to invest in the country. HITA aims to promote foreign direct investment in Hungary through providing information and assistance during the decision-making process. In 2013 HITA assisted 35 invest-

ment projects worth €1.2bn which will create 7,000 new jobs in the coming years in Hungary. Those in the pipeline include the largest green-field investment in the past five years with construction of a production facility in eastern Hungary for Japanese auto parts maker Takata Corporation. Other popular sectors for investment in Hungary include electronics, life sciences, medical technology, logistics, food industry, chemical and metal industry, renewable energy, and shared service centres, with almost 80 SSCs operating in the country.

Janos Berenyi receives the award from fDi editor Courtney Fingar

Accor to focus on acquisitions MULTI-brand hotel group Accor is to buy more real estate assets as it moves to own a greater proportion of its global hotels portfolio, chief development officer Christian Karaoglanian told attendees at the HTL Breakfast yesterday. Karaoglanian said that Accor would achieve this through operating two business divisions, one dedicated to hotel management

and franchising, the other to property acquisition and ownership. “We had a good 2013, opening 23,000 rooms and with 35,000 new rooms signed, more than anyone outside the US,” he said. “We aim to open around 135,000 new rooms in the next few years, predominantly in Europe, Asia Pacific and Latin America.” Karaoglanian also said that beyond Accor’s core markets, the

hotel group would look to build its presence in markets such as Russia, India and Saudi Arabia. “As you can see, our openings are spread across the whole world,” he said. Of the repositioning as a property buyer, Karaoglanian said: “Development is in our DNA and we are happy to be looking to develop more and to talk to investors about opportunities.”

Shaheryar Mian, vice-president of LJM Developments

DEVELOPER LJM SETS OUT STALL CANADIAN company LJM Developments has made its debut at MIPIM. Based in Burlington, Ontario, LJM is a real estate development and investment company. “We aim to develop environmentally friendly green projects,” LJM vice-president Shaheryar Mian said. “We try to work closely with local authorities because we believe it’s important that developments should enhance the environment in neighbourhoods and act as a progressive force.” One of the aspects to LJM’s activities that Mian stresses is the company’s entrepreneurship accelerator programme. “This promotes enterprise in local communities by providing funding, office space and strategic advice to young entrepreneurs to enhance the growth of their ideas.” LJM provides investors with the opportunity to participate in joint-venture activities for commercial and residential projects, Mian said. “We also allow access to residential investments in condominiums built by us at pre-sale prices. We’re looking at MIPIM for partners in our return-driven investment opportunities.”

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NEWS Quasar project brings first Fairmont Hotel to Turkey

MIPIM 2014

PROGRAMME OF CONFERENCE & EVENTS

AYDAR Ozkan, chair- cultural heritage — the Istanman of the board at de- bul Liqueur Factory — and veloper Viatrans, said 190,000 sq m of a high-end there are a number of residential tower and a Fairfirsts associated with mont Hotel, the Fairmont officits Quasar project in Istanbul. es, and a boutique retail block. “It will have the first Fairmont The project is located in Sisli Hotel in Turkey. And then as- on Istanbul’s European side sociated with the hotel, the first between the Mecideyekoy and Fairmont Offices anywhere in Gayrettepe metro stations. the world,” he said. “Quasar The Istanbul Liqueur Istanbul is also the first cerFactory was built in tified project in Turkey that 1930, designed by has achieved the Gold susCubist architect Robtainable building certification ert Mallet Stevens. This in the German DGNB cultural heritage and (Deutsche Gesellsits garden with chaft fur Nach186 monumenhaltiges Bauen) tal trees are pregrading system.” served within Viatrans’ 197,000 the project by sq m Quasar Isre-functioning tanbul mixed-use as an internaproject consists tional culture, of 4,000 sq m of art and fashion reconstr ucted Viatrans chairman Haydar Ozkan centre.

FRIDAY 14 MARCH MORNING 10:00 11:00

MIPIM Wrap-Up

The “must-attend” conference! A summary of the content of conferences & events of MIPIM 2014 providing a sharp perspective of the industry’s outlook. GLOBAL REAL ESTATE | PANEL | GREEN ROOM | MIPIM INNOVATION FORUM

In association with: Moderator: Erwan Quintin, Professor, Wisconsin School of Business Speakers: Dr Mahdi Mokrane, Head of European Strategy and Research, LaSalle Investment Management Mary Fleischmann, President and CEO, The Counselors of Real Estate

Erwan Quintin

11:00 11:30

Dr Mahdi Mokrane

Mary Fleischmann

City of Tallinn Prize Draw NETWORKING EVENT | STAND 13.18/15.17

Organiser: City of Tallinn 11:00 12:00

Layout for the living rooms in the residential element of Quasar

Evolving retail boosts logistics THE BOOM in omni-channel retailing and e-commerce is boosting the institutional investment appeal of new types of logistics property, according to Henderson fund manager, Germany, Thorsten Kiel. Kiel pointed to fulfilment centres and cross-dock buildings as growth markets. Of the former he said: “While this asset type appears to be quite occupier-specific, the internal logistics processes have been

standardised to a high degree, ma k ing occupier demand strong. We expect this asset type to increasingly appear on the radar of institutional investors.” The delivery chain process has also created demand for crossdocks — small, urban trading hubs. Kiel added: “It is evident that at least one hundred of these cross-docks will be required to serve Germany’s metropolitan areas.”

Ten must-have innovative solutions A selection of 10 must-have innovations discovered at MIPIM 2014 INNOVATION | PANEL | GREEN ROOM | MIPIM INNOVATION FORUM

Moderator: Peter Woodward, Lead Facilitator, Quest Associates Speakers: Marek Pärtel, Founding Partner, Estateguru OÜ Prof. Carlo Ratti, Director, MIT Senseable City Lab & Partner, Carlo Ratti Associati

Peter Woodward

MIPIM Conferences & Events

Prof. Carlo Ratti © Lars Krüger

Client Conferences & Events

Access to MIPIM 2014 conferences & events is free of charge for all registered delegates, within the limit of space available. Programme as of 17/02/2014. Information contained in this programme may be subject to change.

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NEWS

Dana’s PPP model targeted COFECI-CRECI scores for at ‘visionary governments’ Brazil in World Cup year

ANA Holdings has recently been awarded a government tender in Minsk, Belarus that will require around $3bn (€2.15bn) of shared investment and partnership with sub-contractors. At MIPIM, the Swiss-owned, Belarus-based developer said that it is interested in further projects with a built area of at least 100,000 sq m. “Naturally, we have a preferred model: public-private partnerships where we can work with government institutions as well as local and public authorities to deliver anything from small-scale projects to large masterplanned mixed-use schemes,” said vice-president Robert Fusco at a presentation yesterday on the company’s stand.

Dana Holdings, which operates in former Soviet territories including Russia, Turkmenistan and Belarus, as well as in Iraq, currently has over 2 million sq m of space under development and a pipeline of 9 million sq m, altogether worth an estimated $27bn (€19.4bn). “One reason we are at MIPIM is that we want to expand into new markets in partnership with local governments,” said Dana Holdings board member Boyan Karic. “We have often worked with visionary governments in joint ventures where we can really add value,” he added. Dana Holdings is also interested in developing further afield, in particular other Middle Eastern countries and Latin America.

RAZIL’s COFECI-CRECI has brought its largest and most senior delegation to Cannes this year, underlining its belief in the benefits to be gained through exposing its markets to the international real estate industry. And in tribute to Brazil’s hosting of the World Cup in June, the stand features a soccer theme. COFECI — the Federal Council of Real Estate Brokers — is a federa-

tion of regional organisations and the team at MIPIM contains no less than five regional presidents. Speaking on the stand, COFECI’s vice-president, Manoel da Silveira Maia said that, as a firsttime delegate, he was impressed by the size and quality of MIPIM. “It is a huge event — much bigger than I expected,” he said. “It is the best place to promote large projects and contracts to developers and investors.” Pictured with footballs and replica World Cup trophies at the COFECI-CRECI stand: Waldemir Bezerra de Figueiredo (left), Sergio Waldemar Freire Sobral, Manoel da Silveira Maia and Jose Augusto Viana Neto

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NEWS Skanska dominates RealGreen building and commerce awards

EEQA (Central and E a st er n Eu rop e Quality Awards) announced the winners of its RealGreen awards at MIPIM, as well as the shortlist for its CEEQA 2014 awards, which will be presented next month. For the second year running, Skanska Commercial Development Europe scooped two of the four awards, winning RealGreen developer of the year, and taking the RealGreen building of the year title for Malta House in Poznan, Poland. The other winners were Deka Immobilien, named RealGreen investor of the year, and Arup which won the award for RealGreen services provider of the year. The awards were made at an

evening cocktail reception at the Palais des Festivals, following an insight summit which looked at the digital revolution in CEE real estate and its impact on various industries including office, retail and logistics. The event brought together business and thought leaders in the subject and Richard Hallward, managing director of CEEQA, said the topic would likely grow in importance more quickly than the issue of green buildings. “This will have the biggest impact on bricks and mortar,” he said. CEE provided the perfect opportunity for the changing market, he said, with newer retail space, greater office building rates and a slower growth in online retailing allowing time and ability for people in the market to adapt.

Richard Hallward of CEEQA

Malta House, awarded RealGreen building of the year at MIPIM

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W P CAREY LOOKS PAST THE CORE JEFF Lefleur, managing director of W P Carey said the mood at MIPIM has been generally positive, but he said that the market is very competitive with a lot of investors looking for the same type of assets: core income products. “Previously they were bored by longterm single-tenant property because there was not a lot to do and there was no value add, but it is the in-demand product for a lot of funds,” Lefleur said. In contrast, W P Carey is more flexible about taking on secondary locations. And in terms of geography, W P Carey is flexible too. “Eastern Europe provides a bit of a premium to the West, although Prague and Warsaw are virtually at parity. But that still leaves Hungary and Romania,” Lefleur said.

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NEWS Tower in capital Ulaanbaatar will be symbol of modern Mongolia

Dimitris Dimitriou: looking to fast-track privatisation

PRIVATISATION TO AID RECOVERY IN GREECE At the signing ceremony: Mongolian MP Batsukh Narankhuu; head of Mon Uran Batsukh Oyunchimeg; with Mitsuo Nakamura of Nikken Sekkei

APANESE architect Nikken Sekkei has signed a letter of agreement with Mongolian developer Mon Uran to design a 300-metre tower in Mongolian capital Ulaanbaatar following a competitive tender. The agreement, signed at MIPIM, requires Nikken Sekkei to design the tower for a mix of uses, costing around $200m when completed. The tower will be situated in 1.1 ha of prime city centre real estate with a built area of 110,000 sq m situated close to Sukhbaatar Square, the location of the government building. he - oor tower will eature a five-star hotel, serviced apartments, high- uality o fice space and a shopping mall. Ulaanbaatar is home to about 45% of Mongolia’s 2.8 million population and the contemporary tower is intended to be a symbol of modern Mongolia,

its economic growth and aspirations, when it is completed in December 2018. Speaking at the signing ceremony, Batsukh Oyunchimeg, CEO of Mon Uran, said: “We agreed that MIPIM would be an ideal international platform for us to sign our agreement and we intend to showcase the project here next year. We chose Nikken Sekkei because this project requires high quality and vision and we believe that they have the right credentials to deliver such a design.” Mitsuo Nakamura, chairman of Nikken Sekkei Group, said: “We have considerable experience of balancing modern corporate design culture with cultural design expectations. This tower is to be a symbol of economic growth in Mongolia, so smart building technologies and sustainability will be critical to our overall design philosophy.”

No fear of growth bubble in Brazil FIRJAN president Eduardo Eugenio Gouvea Vieira

THURSDAY’s conference Brazil’s Expansion: Where Are We? examined the current situation in the country, explored current opportunities and outlined the perspective for international investors. ponsored by law firm i ueira Castro, the

speakers began by posing the question “Is Brazilian real estate facing a bubble?” Their response to this question was a resounding “No”. Eduardo Eugenio Gouvea Vieira, president of the Federation of Industries of the State of Rio de Janeiro (FIRJAN) explained that the healthy growth seen in Brazil’s real estate market in recent years was still far below that of other countries. “You can therefore see just how much room for growth there is, so there is no fear of a bubble,” he said. The speakers agreed that the national housing shortage will continue to drive activity, but Vieira noted that new technology, for example BIM (building information modelling), sustainable construction and innovation, would be needed to increase productivity and boost e ficiency.

A NUMBER of recent property privatisation deals in Greece have been facilitated through a new government body set up specifically to streamline the divestment of publicly owned real estate assets. Among these is the soon-to-beannounced deal for the redevelopment of the former Athens airport, which could be worth up to €10bn over the next 10 years. The biggest redevelopment project in Europe, it encompasses 6.2m sq m of land. The anticipated 3.5m sq m of construction will be significant for a country the size of Greece and will have a major positive effect on the wider national economy. An announcement on the results of the bid process is expected within a month of this year’s MIPIM. “We are a one-stop-shop if you like,” said Dimitris Dimitriou, director at the General Secretariat for Public Property. “The idea is to fast-track the whole privatisation process to encourage interest from international investors and better serve the Greek economy as a whole.” The secretariat set up two years ago within the Ministry of Finance to streamline the ownership of real estate by government ministries and channel all privatisation activity through one body to make the process much simpler and quicker for investors. It is seen as a sign of the government’s willingness to drive through privatisation of the country’s publicly owned real estate holding. Among the first deals to benefit from this approach was the sale at the end of 2013 of a 66% stake in the property portfolio of the National Bank of Greece for approximately €653m.

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NEWS

Sogeprom harnesses positive energy with E+ partnerships

OGEPROM, the Societe Generale Group’s real estate development arm, yesterday launched its E+ for Positive Energy series of sustainable partnerships. The launch was timed to coincide with its participation in the MIPIM Innovation Forum, where the focus is on sustainability. The new strategy comprises a series of industry partnerships with, among others, Otis Elevator Company, Renault and Schneider Electric, aimed at creating better cities of tomorrow. The fruits of the first partnership with Otis have already been realised with the launch of the Gen2 Switch lift, which is battery operated and loadable on a 170_ULI_N4_PIM

single electrical outlet. The Gen2 Switch, which has been integrated into Sogeprom’s housing

programmes, uses 10 times less energy than a conventional lift. Schneider Electric, meanwhile,

Renault’s Julien Dusoulier (left), Schneider Electric’s Sylvain Frode de la Foret, Sogeprom’s Christophe Dumas and Otis’ Christophe Maureau celebrate the launch of the E+ project with one of the electric bikes they have sponsored at MIPIM

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has developed an iPhone app for Sogeprom that gives users a realtime view of a building’s comfort parameters, such as temperature and air quality. A customised version has already been implemented in the Polaris building in Rouen, which Sogeprom delivered at the end of 2013. Sogeprom is also working with Renault-Nissan on a project to recycle and reuse car batteries to store energy in buildings for future use. Christophe Dumas, technical director at Sogeprom, said working with “the innovative power” of its new partners would deliver technological and social benefits. “The aim of the project is to promote better living for tomorrow. This will be the future,” he added.

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NEWS Bakyapi’s Ferhat Bakgor

600 APARTMENTS, 44 PROJECTS, IN 23 YEARS THIS year marks developer Bakyapi’s 23rd anniversary. “And in that time we’ve built over 600 high-standard apartments,” said vicechairman Ferhat Bakgor. “We have 44 completed projects in our portfolio, and ongoing developments right across Turkey, in Istanbul, Bursa, Sakarya, Konya and Canakkale.” One of the company’s principal developments is Prestij Park. “This is a 100,000 sq m project in Istanbul’s Beylikduzu district, surrounded by 75,000 sq m of green areas and recreational facilities. That’s something we think is particularly important with modern urban residential environments,” Bakgor said. Prestij Park comprises 26 apartment buildings and 23 commercial units.

Ignoring occupancy could affect long-term growth, Todd says

NVESTORS often overlook the importance of the occupancy market when building strategic portfolios, a leading fund manager has said. Speaking to MIPIM News, Resolution Property partner Peter Todd said that managers could jeopardise their long-term growth by not maintaining this close link. “Capital can’t be out of step with the occupational market,” he said. “In certain markets long-term strategies are based on levels of rental growth which I am not sure are really realistic.” Todd said that investor confidence was very high in Northern European markets, particularly Germany, which has remained “buoyant and stable” with less fluctuations in values compared with the more tumultuous markets of Southern Europe. He added: “Compared to the more risky economies in Europe, the good-quality real estate in Germany is not as expensive. It’s more stable and the occupational markets are much stronger than in Southern Europe.”

Two sides organised by Nottingham played cricket on the public beach on the Crosiette yesterday. England international cricketer Derek Randall is top left

Resolution Property partner Peter Todd

Resolution Property is a crossborder firm with special interests in the retail markets of Northern Europe. Around 60% of its portfolio is in retail, with some assets in the London office market and

some specialist residential projects. It has just completed a joint venture acquisition with ECE European Prime Shopping Centre Fund of the Poznan City Centre retail park in Poznan, Poland. IN ANOTHER first for MIPIM, cricket came to the public beach on the Croisette. Two teams organised by the UK city of Nottingham — the Nottingham 11 and the MIPIM 11 — pitted their skills against each other on yesterday’s sunny morning. The MIPIM team was captained by English cricketing legend Derek Randall. A long-time professional player for Nottinghamshire, Randall said he welcomed the opportunity to bring the English national summer game to the Mediterranean.

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To the thousands of remarkable MIPIM exhibitors, visitors, sponsors, speakers, and partners we say

THANK YOU

for your support in 2014 and over the past 25 years

See you next year, 10-13 March 2015

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Anne Klausmann, Center Manager Ettlinger Tor, Karlsruhe

30,000 visitors. 130 tenants. 16 employees. 1 boss. One of 52 female Center Managers at ECE More women at the top. ECE is based on a corporate culture of equal opportunity. Special programs systematically prepare women to assume leadership positions. At the same time, the company ensures the best-possible balance between work and family, and with great success. As a result, more and more centers are managed by women.

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