mipim nEWs 速
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Tuesday 10 March 2015
www.mipim.com
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JAPAN
Open for business DREAM team helps Japanese investors move into Europe P4
REGENERATION
Plaine de France has ambitious plans for North-East Paris P7
INVESTMENT
EMEA enjoying sustained recovery P12
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CONTENTS WELCOME to the 26th annual edition of MIPIM. At Reed MIDEM we are detecting renewed confidence among our clients in the real estate industry. All the evidence is that investment and occupational markets are on the rise across the core European markets, especially in Germany, the UK, Benelux and the Nordic territories. The best that they have to offer will be on display this week in Cannes. Real estate is more and more a global industry, and we are delighted to welcome more delegates from North America and Asia. For the fi rst time at MIPIM we are hosting US and Canadian pavilions and
ahead of our sister event MIPIM Japan, which launches this year, we are delighted to welcome an enlarged Japanese delegation. No area of life has been untouched by the rise of digital technology and the property sector has reached a turning point. Accordingly, the Digital Revolution is the central theme for this year’s conference programme with sessions on Big and Open Data and presentations by startups looking to transform the way property is managed, occupied and traded. It will be fascinating to see how these new players interact with established real estate businesses. What will
NOT TO BE MISSED 14.00-15.30 GRAND-AUDITORIUM n PANEL
MIPIM CITY INVESTMENT FORUM LEADING POWERHOUSES OF THE FUTURE Co-organisers: Amsterdam, Barcelona, Hamburg, Manchester, MIPIM, Stockholm be their impact on traditional physical real estate? MIPIM is a key opportunity to open up dialogue between these two cultures, and one way or another, new opportunities are bound to emerge. Filippo Rean
Director of the Real Estate Division
Reed MIDEM
16.00-17.30 BLUE ROOM n WORKSHOP
DATA REVOLUTION, REINVENTING OCCUPIERS AND INVESTORS’ STRATEGIES Sponsor: Schneider Electric 17.00-18.30 GREEN ROOM n WORKSHOP
TOWARDS THE END OF OWNERSHIP? Sponsor: Allianz
NEWS
ANALYSIS
6 TH’s city focus TH Real Estate adopts a strategy of analysing cities rather than countries
34 UK investment A visual guide
12 Marseille projects progress Industrial land to be transformed into new residential zone in one of several Marseille projects at MIPIM
+ hedule
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rence Confe me program P.28
FEATURES 61 Focus on Japan Earthquake tragedy injects urgency into Japan’s Smart Cities project 65 The digital revolution The cases for disruption 66 Focus on the UK Upcoming elections unlikely to impact on real estate in the UK
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NEWS WORKSPACES CAN WORK BETTER SUSTAINABLE design not only provides environmental benefits, but it offers tangible returns on investment, according to Kim Herforth Nielsen of Danish architectural practice 3XN. “It’s a whole new way of looking at workspace,” said Herforth Nielsen, who will present the argument at the Van Alen Institute-curated session in the Architecture Cafe tomorrow. He added that, whereas many buildings have been designed with cellular offices, this is inefficient — in large part because of the corridors needed to serve them. Not only can a company occupy smaller office space if individual offices and corridors are dispensed with, but by creating work spaces tailored to different activities the building can also be more effectively used. By adopting this approach, 3XN reduced Swedbank’s floorspace from 65,000 sq m to 45,000 sq m when designing the company’s new Stockholm headquarters. “The saving in energy use is very much proportional to the reduction in size, but the additional benefits to business are harder to quantify and need a longer study period,” Herforth Nielsen said. But “flexibility” is the key, he added: “What you design today you may have to change in the future.” • Kim Herforth Nielsen will give Thursday’s keynote in the Architecture Cafe, where keynotes will be given today by MIT Senseable City Lab’s Carlo Ratti and by UNStudio’s Ben van Berkel.
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DREAM team helps Japanese investors to move into Europe
Diamond Realty Management’s Takashi Tsuji (right) and Masanobu Fujita: taking Japanese investors overseas
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APANESE investors are looking to place both equity and debt offshore — and Tokyo-based asset manager Diamond Realty Management, or DREAM, will be helping to choose property and managers in Europe. “A lot of Japanese capital is moving overseas, so we are going to be selecting asset managers and assets,” said DREAM president and CEO Takashi Tsuji. “We have the credibility with Japanese investors because of our track record in Japan, so we are a good partner to take them into overseas investment.” DREAM, which is a wholly owned subsidiary of Mitsubishi Corporation, was founded in
2004 and now has $4bn (€3.7bn) assets under management. Unusually in Japan, it has a strong weighting in logistics assets (38.5%) and retail (28.7%), with offices comprising a small proportion of the portfolio (15.6%). Business development director Masanobu Fujita pointed out that DREAM is one of the first asset managers to launch sectorfocused funds. In addition to its logistics fund, it founded a datacentre fund in 2011 with a volume of $240m. Japanese investors have widened their scope since the worldwide financial crisis, Tsuji said. The firm, which is sponsoring this morning’s Japan Breakfast, has
The official MIPIM daily newspaper Tuesday 10 March 2015
Director of Publications Paul Zilk Director of Communication Mike Williams
attended MIPIM for the last four years. DREAM launched a mezzanine debt fund in 2010, which is currently worth $150m and targets existing projects and developments. “There are very few mezzanine funds in Tokyo and we are pioneers in that market,” Fujita said. The company also created a private REIT in October 2012, which grew to $1.6bn after its fifth private offering in late 2014. It is expected to expand further to $2.5bn. DREAM’s clients are mostly Japanese investors. However, in January the company began working for a $500m Asian sovereign pension fund.
The MIPIM News team is located in the Palais des Festivals/Level 5 Editorial contact : mipimeditor@gmail.com
EDITORIAL DEPARTMENT Editor in Chief Graham Parker News Editor Doug Morrison Proof Reader Debbie Lincoln Reporters Ben Cooper, Mark Faithfull, Steve McCormack, Mark Moore, Liz Morrell, Paul Strohm Sub Editors Clive Bull, Julian Newby, Joanna Stephens Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designers Muriel Betrancourt, Nour Ezzeddin, 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 Production Assistant Eric Laurent ADVERTISING CONTACT IN CANNES Laurianne Di Cecca +33 6 09 68 32 71 laurianne.dicecca@reedmidem.com 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 BOULOGNEBILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2015, Reed MIDEM Market Publications. Publication registered 1st quarter 2015.
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10 MARCH 2015 10:00 ISTANBUL PAVILION Press Conference 14:00 ISTANBUL PAVILION Panel: “Spotlights on Istanbul: A city with a wide range of projects with tremendous growth opportunities.” 11 MARCH 2015 09:30 BLUE ROOM Discover Istanbul: The capital of finance, potential and culture.
NEWS Think Europe report advises on picking tomorrow’s cities
I Alice Breheny, global co-head of research at TH Real Estate
NVESTORS need to evaluate both hard and soft data in assessing the retail real estate opportunities in European cities and must also consider disruptive factors such as technology, according to Alice Breheny, global co-head of research at TH Real Estate. The global fund manager released a report yesterday entitled Think Europe: Picking Tomorrow’s World Cities, advocating a city-level rather than country-led approach to property investment in assessing over 200 European cities against factors such as GDP, demographics, retail sales,
technology and quality of life. “There will be few surprises in the defensive investment cities but we see a gap in those locations with strong potential but which have not yet attracted significant investment interest because of perceived risk,” she said. “Often by the time investors move in to such cities, many of the early gains have gone already. So through this research we have identified those places to actively monitor, in order that investors can be quicker to market.” Among those locations picked out for their scale and retail potential by the research are Istan-
bul, Warsaw, Prague, Bucharest and Budapest. “This is very much about retail and consumer trends, as well as current retail sales and GDP,” Breheny said. “In identifying tomorrow’s opportunities we are very much looking at cities as opposed to countries for investment strategy.” Cities such as London and Paris scored highly as defensive investments both for their current and their future prospects, while the report also highlighted cities such as Oslo, Munich, Stockholm, Frankfurt, Edinburgh, Vienna and Milan as established defensive locations.
DTZ predicts surge of property to hit the market OVER €470bn worth of European commercial property assets could be released onto the market, research published today suggests. A report released by international real estate consultancy DTZ says that assets totalling €472bn are being held beyond the average period, particularly by private investors and unlisted funds, meaning they could be due to make their way back on to the market. The forecast is based on long-term research of investment transactions across Europe, in which DTZ has analysed over 37,000 investment transactions since the year 2000, with a total value of €160bn. “We estimate that more than €470bn of
assets have been held beyond the average and could therefore become available to the market,” DTZ head of capital markets research Nigel Almond said. “This is especially likely for the two-thirds of these assets with unlisted funds and private investors as both these groups have lower than average hold periods. “This should provide more than sufficient opportunities for investors to unlock as the weight of capital chasing CRE [commercial real estate] remains at record levels and with European volumes set to surpass €210bn in 2015.” DTZ head of capital markets research, Nigel Almond
mipim HIGHLIGHTS As the clock counted down to MIPIM 2015’s opening day the Palais des Festivals was already a hive of activity
Getting down to business
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London in 3D
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Plaine de France has ambitious new plans for North-East Paris
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LAINE de France, the government-backed urban planning agency representing the area of North-East Paris around Charles de Gaulle Airport, is at MIPIM to promote three major developments designed to boost the area’s long-term economic health and which will represent billions of euros of investment. The Louvres & Puiseux econeighbourhood will be presented to potential developers. The neighbourhood will be the biggest housing project in the North-East region of the capital and will provide 3,300 dwellings which will be built over a 15-year period. Today the two component towns, Louvres and Puiseux, have a combined population of 10,000, and this will double by 2028. “It is a very important project,” said Plaine de France EPA’s chief executive officer Damien Robert who explains that there are 90,000 employees at the airport but accommodation is hard to find within a reasonable radius and not under the airport flight path. Plaine de France EPA is also promoting the Triangle de Gonesse/ EuropaCity project, which will create a new business district 10 minutes from the airport and 20 minutes from the Paris CBD. The 280-ha scheme will take until 2030 to complete and will
The Louvres & Puiseux eco-neighbourhood will be the biggest housing project in the North-East region of the capital
provide about one million sq m, Robert said. Key ingredients are a Metro station and a 700,000 sq m mixed-use shopping and leisure scheme to be built by Auchan at a cost of €2.5bn. Sevran Terre d’Avenir is the third key element in the region’s development and will release the potential of what is currently considered to be a poor town, Robert said. The project will provide an additional 3,000 houses over the next 20 years. Plaine de France EPA will share
the Grand Paris stand with seven other urban planning agencies who will collectively present projects for the whole greater Paris region. “Paris is a very dynamic market with a lot of development projects and our first aim is to promote those. Secondly we want to promote the Roissy (Charles de Gaulle Airport) airport and its associated projects which create economic development and which are very diverse, including logistics, hospitality and convention facilities,” Robert said.
Registration MIPIM Innovation Forum Istanbul pavilion
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NATURA DO RIO IS PLANNED WITH NATURE IN MIND ONE OF the case studies showcased in Wednesday afternoon’s workshop, Latest Trends And Innovative Solutions In Smart Buildings, is the Natura do Rio urban resort development in Brazil. Sponsored by COFECI and co-ordinated by Ropes Associates’ John Ropes, the session focuses on the last tract of undeveloped oceanfront land within 35 km of Rio de Janeiro, with pristine beaches and 8.5 km of oceanfront on the east, a lagoon to the west, and mountains beyond. Some 15 million people live within a one-hour drive. In developing its 850 ha, there is a strong commitment to preserve the environment and wildlife — including a nature observatory and aquarium, designed by Oscar Niemeyer. The project will produce high-quality housing with state-of-the art amenities. Beach clubs and golf resorts will draw people in and visitors will find luxurious hotels, entertainment complexes, shopping, tennis, an equestrian club, a yacht club and marina. Residences willl include luxury villas, single- family homes and condominiums with pools, gardens and recreational sports areas.
Previewing the Istanbul model
Joh As
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NEWS
Virtual property tours help ‘get right people through the door’
Wealth Migrate’s Scott Picken
PICKEN OUTLINES CROWDFUNDING OPPORTUNITIES WEALTH Migrate CEO Scott Picken will look at the new models that are poised to reshape the future of real estate investment in a session this afternoon entitled Crowdfunding: Industry Game Changer? Picken will also take part in tomorrow’s session Digital Economy Challenges Real Estate Sector: Disruptors At The Door. Wealth Migrate uses an investment crowdfunding platform to allow investors direct access to real estate investment opportunities around the world. The company has invested more than $1.34bn for its clients in international real estate transactions on five continents over the last three decades and participates in every deal alongside its investors. Through Wealth Migrate and other channels, Picken is also leading The Wealth Movement, an initiative to provide a further billion people globally with access to real estate by 2020.
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ELLING and renting properties is heading for a revolution as people change how they advertise and market space, according to technology company Virtual Walkthrough. The company, whose technology allows customers to virtually tour a property, both inside and out, before deciding they want to view it, claims to be able to increase viewings threefold and average sales prices by 15%. Antony Waldorf, CEO of Virtual Walkthrough, said that, in today’s world, a collection of 10 or so photographs is no longer good enough to sell a property’s potential. “If you have an asset you are selling or renting, it’s time to stop photographing it because that’s not going to get the right people through the door,” he said. Virtual Walkthrough currently has a 65:35 split between residential and commercial properties. It has been involved with UK shopping-centre group Hammerson for the past two years and announced this week at MIPIM that it has now completed the capture of Hammerson’s entire UK portfolio, comprising more than 641,000 sq m of space.
Virtual Walkthrough’s Antony Waldorf (right) and James Morris-Manuel demonstrate their image capture technology outside the Palais
Hammerson’s UK commercial director, Iain Mitchell, said that Virtual Walkthrough’s technology has directly enabled deals by allowing retailers to be better
informed before a centre visit. “The technology has contributed towards us securing cross-border retailers including Smiggle and Victoria Secrets,” he added.
RIBA looks for partners in design THE UK’s Royal Institute of British Architects (RIBA) is looking for partners from the hotel industry to collaborate in a design competition. The event, launching later this year, aims to showcase the best design ideas to improve access for disabled people from street to hotel room. The competition will be open to all architects and designers internationally. With support from anonymous charitable sources and leading disability campaigners, the openideas competition will address a
real need to improve the quality of design for the disabled. In particular, it will invite contestants to ‘demedicalise’ the look and feel of spaces and accessories that help disabled people in their everyday life. The competition also aims to explore how, over time, these ideas could be applied to mainstream hotel design. Baroness Thomas of Winchester, a leading disability campaigner, supported the idea of the competition in a recent House of Lords debate. She said: “Many hotels have done much to wel-
come disabled guests, which is admirable, but countrywide this is still patchy. This competition will highlight positively some great ideas, including for bedroom design, where more needs to be done to raise the quality of the hotel experience.” Rory Coonan, honorary fellow of RIBA and creator of Design For Care, added: “The success of the London Olympic and Paralympic Games showed that disability need be no barrier to success, yet there are still aspects of ordinary life where disabled peo-
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Disability campaigner Baroness Thomas of Winchester: time to “raise the quality of the hotel experience”
ple encounter barriers to access. This competition aims to show that good design can make a difference.”
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NEWS CBRE SAYS GLOBAL GROWTH IS KEY FOR RETAILERS RETAILERS in EMEA, the Americas and Asia Pacific are expanding their networks as economic recovery progresses, according to CBRE. Facing on-going challenges from cost escalation, e-commerce and changes in consumer behaviour they increasingly need a strong network of stores to represent their brand, says the firm in its report, How Active Are Retailers Globally? Researchers found that 40% of retailers surveyed named Germany as their number-one target market. Meanwhile, half of APACbased retailers are targeting South Korea and 43% of American retailers are looking at Japan, China and Hong Kong for expansion. They also found that 85% of luxury and business fashion retailers are looking at APAC and 78% of midrange fashion retailers are targeting EMEA. When asked to pinpoint their biggest concerns for 2015, almost half those surveyed stated cost escalation and unclear economic prospects. In contrast, only 1% stated foreign direct investment and 2% insufficient logistics networks.
FIVE CITIES UNITE FIVE major European cities come together today at MIPIM to discuss their economic leadership plans. As part of the MIPIM City Investment Forum civic leaders from Amsterdam, Barcelona, Hamburg, Manchester and Stockholm appear together for a discussion on the growing importance of the city and how to assert effective economic models through their investment and leadership strategies.
New British sectors generating growing international interest
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LT E R NAT I V E asset classes and emerging markets outside of London a r e p r ov i ng i n creasingly attractive to the international investment market, the head of the British Property Federation (BPF) has said. Speaking to MIPIM News, BPF chief executive Melanie Leech said that the devolution of power to the regions and a raft of new investment opportunities were garnering increasing interest from overseas. “Not only are we seeing major investment and regeneration in London, there are new asset classes and regional opportunities opening up,” she said. “The devolution of power and the commitment to the idea of a Northern powerhouse are opening up investment potential.” Leech said that other than the
various regeneration projects under way both in London and outside the capital, a number of alternative sectors were presenting strong returns for investors. Among these are the understocked student housing sector and healthcare, which she said is becoming increasingly open for investment and development driven by the need to create integrated health and social care facilities as part of long-term reforms in the British NHS. It is the first time Leech has attended MIPIM as chief executive, after being appointed to the role in October last year. She is representing the BPF to help showcase the whole range of investment opportunities the UK offers to the international market. “The UK is a great place to invest for a number of reasons,” she said. “We have a stable political system, we are seeing growth and
BPF chief executive Melanie Leech
recovery, and we are not at the same risk of deflation that other Eurozone countries are facing.”
Stockholm takes lead as Nordic markets continue to expand SWEDEN and the Nordic markets are attracting increasing volumes of domestic and inter national investment, with retail likely to be the strongest sector in 2015, according to Anders
Nordvall, the recently-appointed CEO of Cushman & Wakefield in Sweden. Stockholm remains the gateway city to both Sweden and the wider region but investors are also targeting Oslo, Copenhagen, Gothenburg and a number of other key cities, he said. “So far the main outside investment has come from Grosvenor and TIAA Henderson Real Estate in Sweden, but we are seeing more overseas investors moving into the market,” he said. “Investors from Asia and the Middle East, who were previously inac-
Anders Nordvall, CEO of Cushman & Wakefield, Sweden
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tive, are coming to the market, while we are also seeing the big European funds and US money all attracted by the strong fundamentals.” While logistics and offices were the strongest sectors in 2014, over the past few months major shopping centre deals involving Unibail-Rodamco and TIAA Henderson Real Estate have boosted the retail sector. “It is a very busy market and we expect a strong 2015, with an increasing percentage of the total investment coming from outside the Nordics,” he said. Nordvall joined as Swedish CEO in December from Catella Corporate Finance and heads up a team that has welcomed six new partners this year to grow the Nordic business.
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NEWS MEGAWORLD TO OPEN NEW SHOPPING MALLS PHILIPPINES-based real estate developer Megaworld, exhibiting this week at MIPIM, will open at least 20 new malls and commercial centres in its existing bases and new townships in the next five to eight years. The expansion comes as the company takes advantage of an expected 150% growth of its townships’ populations — estimated to hit one million by 2020. The company’s CEO and chairman Dr Andrew Tan says the population will comprise 600,000 condominium and village residents and 400,000 business process outsourcing (BPO) and office workers within five years. These figures are currently 250,000 residents and 150,000 BPO and office workers. Megaworld has 15 townships, founded on its Live Work Play Learn model pioneered in its first scheme in Eastwood City in 1999, and last year plans for growth into five more areas within the next few months were annouced.
Arenc project set to transform industrial area of Marseille
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ONST RUCT ION work has begun on a new project in Marseille that will transform industrial space in the city into a new urban residential zone. More than 37 ha of former industrial and maritime space in the Arenc sector of Marseille is to be reinvigorated over the next three years, with some 1,800 homes to be created. The project is led by town planners Yves Lion and Francois Kern, with urban landscape architect Guerric Pere. The same team was behind the latest addition to the 20-year-old Euromediterranee waterfront in Marseille, a new boulevard along the docks of the harbour linking some of the key public facilities in the area. The project has been nominated for the Best Urban Regeneration Project and in the Special Jury Award at this year’s MIPIM Awards. Also under way is a development project to deliver a new highrise building, La Marseillaise, designed by Jean Nouvel, and the Ilot Allar block, a 58,000 sq m
The Boulevard Euromediterranee in Marseille
mixed-use scheme which will house the new headquarters of EDF as well as office, retail and residential space. Representatives from the city are at MIPIM to showcase the various projects under way and reach out to the international market to discuss future initiatives including the ambitious XXL Eco-District scheme. The raft of developments begun and in the pipeline is part of a long-term regeneration and
expansion programme in and around the city of Marseille. The strategy began in 2012 and is due for completion in 2020. Large areas of land have been reinvigorated to make way for various projects, around the Port de Commerce, the Vieux Port and the St Charles station. Elsewhere a 15,000 sq m project to attract companies in the biotech and health sector is on course as part of the Marseille Immunopole district.
TOPUP PROVIDES REAL INSIGHT
EMEA enjoying sustained recovery
TOPUP Consultants is showcasing its new property software at MIPIM. Real Insight, described as a self-service analytics tool, allows users to interact with property investment and management data, and is based on an application called Qlik Sense. The data visualisation app aims for mobility, working on desktop computers, tablets and smart phones. The firm said the software uses flexible, interactive visualisations for intuitive exploration and that it promotes accuracy and reliability.
THE PROPERTY market across Europe, the Middle East and Africa looks “as good as it has for several years”, according to Mike Strong, chairman of CBRE’s EMEA business. This renewed optimism reflects an improved economic backdrop, Strong added. “The capital markets have responded very strongly and the leasing markets — especially offices, but also retail — are very closely correlated to economic activity. We’re now seeing a pick-up in leasing in a number of Western European markets.” And Strong doesn’t see the recovery slowing. “Continuing low interest rates are positive for proper-
CBRE’s Mike Strong
ty and that looks likely to continue this year and into next,” he said. Changes in the wider economy are being reflected in the oc-
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cupier base in the major office markets as businesses from the telecoms, media and technology (TMT) sectors challenge the financial services businesses that have traditionally dominated. “It’s already apparent in London, Paris and the big German cities and this is a phenomenon that will crop up in other cities too,” Strong said. “These businesses employ young people predominantly. They want to work in cities but they don’t have to occupy conventional offices or conventional locations,” he added. Although this presents challenges to developers: “A more diverse business mix means a more sustainable office market.”
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NEWS L&G adds Barking terminal to expanding rail portfolio
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EGAL & General (L&G) Property has acquired Barking Rail Freight Terminal in London for £53.7m from AXA Real Estate on behalf of clients and its joint-venture partner DMI Properties. A fully operational rail-freight terminal directly connected to the High Speed 1 rail route and the Channel Tunnel, the deal offered what L&G Property described as a “unique opportunity to acquire the freehold interest in a strategic London infrastructure investment”. The acquisition represents the fourth rail terminal acquired by L&G Property, adding to terminals in Widnes, Castle Bromwich and Corby. It is part of a strategy to link real estate and infrastructure in a “holistic way”, said Bill Hughes, head of real assets at L&G Investment Management. “This is another example of the growing synergies between the real estate and infrastructure sectors,” he added. “We believe that the real estate opportunities around infrastructure in terms of both transportation — ports, airports and rail — and renewable energy are very much entwined and you can expect to see more activity from L&G in these areas.” Arranged over 32.67 acres, the site at Barking is fully let to DB
6 Bevis Marks: AXA’s fund raising will finance a series of successful developments, such as this office scheme in London
AXA raises record €7.3bn
L&G’s Bill Hughes: “growing synergies between real estate and infrastructure”
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XA Real Estate Investment Managers, which claims to be the leading real estate portfolio and asset manager in Europe, raised €7.3bn in 2014. The monies comprised €3.6bn of commitments for equity investment and €3.7bn of commitments for lending. The capital was raised globally from both new and existing clients and for a range of investment strategies including core, value-add, development and debt. Among those investing through AXA Real Estate’s global investment management platform during the year, 35 were new clients, including insurance companies, pension funds and sovereign wealth funds. Commitments were received from Europe, Asia, Canada, the US and the Middle East. In 2014, AXA Real Estate extended its total commitments to debt to over €10bn, of which €7.5bn has already been deployed. Highlights include raising over €1.5bn for its most recent pan-European real estate debt fund, Commercial Real Estate Senior 9, which will include a specific feeder fund for German regulated investors; and the awarding of a €250m commercial real estate debt investment mandate from
Schenker for a term of 20 years from July 2014. The site is one of only two intermodal freight terminals serving London and the international rail network, as it is the most northerly point on the network capable of accommodating European-gauge wagons. Hughes said: “We believe that, with the UK’s congested roads, there are real opportunities for rail freight and a growing appetite from operators to use rail, so we view this as a good medium- to long-term opportunity for real estate.” JLL acted for AXA Real Estate; WHY and Rubicon Securities acted on behalf of L&G.
The Barking Rail Freight Terminal: “strategic London infrastructure investment”
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a Dutch insurance company. It was also appointed investment manager for Kronborg, a €485m commercial real estate debt vehicle formed by five Danish pension funds: Sampension, TDC Pension, AP Pension, JOP and DIP. Pierre Vaquier, chief executive officer of AXA Real Estate, said: “The levels of capital that AXA Real Estate raised during 2014 are evidence of the continued interest in real estate as an asset class among institutional investors searching for secure income streams and yield, as well as their desire to invest through a marketleading platform such as ours, which can successfully deploy funds across multiple strategies and geographies using expert local teams.”
AXA Real Estate’s Pierre Vaquier: deploying funds across “multiple strategies and geographies”
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TORONTO STRONG ECONOMY
1 Soundest banking system in the world for 7 consecutive years.
$157b One of North America’s most diverse economies.
(World Economic Forum)
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STAND #P1.E33
Toronto’s GDP of $157 billion accounts for 19% of Canada’s GDP.
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NEWS THE GREENING OF GRENOBLE TWO INNOVATIVE projects from Grenoble are being showcased at MIPIM to promote the French city’s green credentials. Delegates visiting the Grenoble-Alpes Metropole stand will be given a glimpse of a green initiative to establish urban farms and vegetable gardens in unused city space. The Grenoble-based design team behind the project is offering its expertise and research to town planners interested in establishing their own urban farms. Also on the Grenoble stand is CiteLib by Ha:mo, a car-sharing service that uses 100% electric cars, which is being tested in the city on a three-year trial. As part of the rollout, 27 pick-up stations have been installed throughout Grenoble.
LONDON IN 3D THE FIRST fully interactive 3D digital model of London is displayed this year at the stand of London Chamber of Commerce and Industry. VUCITY is a joint venture between digital communications agency Wagstaffs and 3D modeller Vertex Modelling. Covering 80 sq km of Central London, the model gives property professionals a new view of the city. Users can view, zoom and rotate right down to the detail of one building. Data streams can display transport links, shifting property prices over time or the political composition of local authorities. The zone is now rendered in massing block detail, and the development team will deliver more detail on specific areas as and when required. Working across all digital platforms, VUCITY runs independently of other software, removing the need for additional licences.
Poland sets the pace for CEE in investment transactions
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URING 2014, over half the investment deals recorded in the CEE region were concluded in Poland, making the country the leading market for the region. According to data from Colliers International, the 64 deals finalised in the country were worth a total of €3.18bn. “Such a large number of transactions demonstrates the high liquidity of the Polish market. At the moment, it is the largest investment market in CEE,” said Piotr Mirowski, partner and director at CEE Investment Services. In addition to the capital, Warsaw, Poland’s regional cities are also developing and attracting investors and investment funds. Last year regional cities accounted for 60% of activity, with funds coming mainly from
the US, the UK and Germany. Lodz is an example of this regional trend, with more than 50 projects worth more than €1bn contributing to the revitalisation of the city. The regeneration project, known as New Centre of Lodz, will affect a 100 ha area that will be divided into three urban zones — to provide residential, retail and office space — as well as a network of new roads. Lodz has strong links with the creative industries and is being put forward as a candidate to host the 2022 International Expo dedicated to revitalisation. Colliers predicts that the 2015 value of investment transactions in Poland will be similar to last year. Among the buyers, a further influx of capital is expected from the US, as well as new investors from Canada, Australia, South Korea, China and Singapore.
CEE Investment Services’ Piotr Mirowski: “high liquidity of Polish market”
Skanska markets Polish portfolio
The class-A Silesia Business Park in Katowice
Katowice. CBRE and Colliers International have been jointly instructed as agents. “We have decided to market a portfolio of new office buildings in top Polish regional cities following the positive market response
FOUR Polish office buildings totalling more than 62,000 sq m GLA are being sold by Skanska Property Poland. The buildings are Kapelanka 42 A and Axis in Krakow, and Building A and B of the Silesia Business Park in
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for, among others, our Dominikanski project in Wroclaw,” said Adrian Karczewicz, transaction director of Skanska Commercial Development Europe. “The leasing markets in these cities offer an enticing combination of strong tenant demand, low rent profiles and low class-A vacancy rates. It is anticipated that the sale of the portfolio will be closed before the end of the year.” Silesia Business Park in Katowice is a class-A office complex consisting of four buildings with a total of circa 48,000 sq m GLA. Building A (12,000 sq m GLA) has been completed and Building B (12,000 sq m GLA) is scheduled for completion in September 2015. Kapelanka 42 A in Krakow is a class-A office building with a GLA of over 18,000 sq m. Axis is another new Skanska office project located in Krakow, which will provide circa 21,000 sq m GLA upon completion in Q4 2016.
Bouygues Construction - Innovation and Sustainable Construction Department - Design and production: agence-heidi.fr - Photo credits: Thinkstock
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NEWS MEININGER AIMS TO EXPAND WITH NEW CHIEFS MEININGER Hotels has made two senior appointments to bolster its plans for expansion. Robert Seeley has been appointed as head of UK development. He will help Meininger deliver its objective of establishing a presence in all key cities in the UK including London, Manchester and Edinburgh. Patrick Sanville is the new head of development in France. Patrick’s appointment will help Meininger’s expansion in that country, including hotels in Paris, Marseille, Lyon, Strasbourg and Nice. Meininger currently operates 16 hotels in Europe, with a total of 2,000 rooms in 10 European cities including Amsterdam, Berlin, Brussels, Frankfurt, Hamburg, Cologne, London, Munich, Salzburg and Vienna.
TOPUP AND QLIK LAUNCH REAL INSIGHT APP SOFTWARE consultancy TopUp has chosen MIPIM to unveil a specialist app aimed at the international real estate market. Designed in partnership with business information technology firm Qlik, the Real Insight app has been launched to provide data and analytics to inform property investment and management decision-makers. Delegates in Cannes are being offered the chance to try out the app, which functions across multiple platforms and devices. It has been designed to present data in a flexible, interactive format to allow quick and easy navigation, with enterprise governance capabilities to allow for more accurate and reliable searches.
Milan opening will showcase collaborative design approach
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HE ARESE shopping centre in Milan, due to open in April 2016, will be the largest singlephase shopping centre built in Italy. The project, which will be certified LEED Gold, will also be the most sustainable large-scale shopping centre ever designed in Italy, according to one of its architects, Design International. The architectural consortium that designed Milano Arese includes Michele de Lucchi and Arnaldo Zappa as well as Design International. The 92,000 sq m centre, which will compr ise more t ha n 200 shops, cafes, restaurants, outdoor and indoor sports facilities and cultural and health activities, is expected to attract visitors from affluent populations across North Milan, the Lakes and Switzerland. More than eight million people live within a radius of a little over an hour’s drive.
The centre is among the latest examples of retail architect Design International’s collaborative approach — various architects have sought the firm’s specialist input on the design of the retail aspects of a number of projects which has led to collaboration with Foster & Partners on Milano Santa Giulia, and with Renzo Piano Building Workshop on Milano Sesto. “Collaborating with various world renowned architects and adding different points of view to a project adds richness and depth, and this can only be a good thing,” Design International CEO Davide Padoa said. “It is an excellent opportunity for us, as architects, to learn from each other, whilst also giving the client something which is exceptional.”
Davide Padoa: Collaboration adds “richness and depth”
Prague’s ‘biggest-ever’ development traded UNION Investment Real Estate, advised by CBRE, has taken a majority shareholding stake in Palladium, the largest citycentre development in Prague, from a company managed by the German investment manager Hannover Leasing, Pullach. The transaction is the largest property deal ever recorded in the Czech Republic, according to CBRE. The Palladium development consists of 41,000 sq m of retail and 18,000 sq m of office space in the city of Prague. Katarina Brydone, associate director of capital markets for CBRE, said: “We are extremely pleased to have advised Union Investment in such an important acquisition. 2015 is set to be a strong year for shopping-centre
investment in the Czech Republic with several large deals closing in the next few months, and further assets coming to the market later this year. “Including Palladium we’re currently tracking over €1bn of
shopping-centre investments for 2015 — deals either already closed, in negotiation, or coming to market. This would be more than three times 2014’s shopping-centre volumes for the Czech Republic.”
Palladium — the largest city-centre development in Prague
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MIPIM 2015 HOTEL, TOURISM & LEISURE LOUNGE designed by AW² stand P-1.D29 alley 7 level -1 www.aw2.com
photo David Mitchener
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architecture & interior design
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NEWS KAZAKHSTAN GETS FIRST GREEN OFFICE BUILDING PARK View Office Tower in the Kazakhstan city of Almaty has become the first green office building in Central Asia following its award of a ‘very good’ BREEAM environmental certification. The building scores points for factors including design and construction management, health and well-being, energy, transport, use of water, materials, waste, use of land, ecology, pollution and innovation. Located in the historic heart of Almaty, the scheme, by Global Development, comprises 16 floors with 1,052 sq m of leasable office space on each level. It offers an 80-seater canteen with a food court, restaurant, cafeteria, 80-seater hi-tech meeting and conference room and free wi-fi zone With a portfolio comprising nine business centres totalling almost 55,000 sq m, Global Development is one of the largest and most prominent landlords in the Central Asian commercial real estate market. BREEAM (Building Research Establishment Environmental Assessment Method) is a multi-criteria system of assessment based on a building’s environmental friendliness and the comfort of future users.
Rowan looks to retail property to expand Germany portfolio
Rowan CEO Nick Jacobs
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ONDON-based property company Rowan is at MIPIM to launch a major acquisition strategy designed to increase its portfolio of assets in Germany. Having taken advantage of an improved market to sell a num-
ber of properties in Germany and the UK, Rowan will take advantage of the upswing in the investment cycle to acquire new larger-scale stock, according to CEO Nick Jacobs. Rowan is focusing on larger retail centres that are town-
dominant in Germany and its short-term target is to create a portfolio of €300m-€500m. In the longer term this will be re-capitalised to a REIT or by selling it on to an institution. Rowan has long been active in Germany but plans to expand its existing network of managing agents and associates and to create a permanent team in the country. “We are aiming to expand our activity in Germany focusing on retail property, and specifically food-anchored retail parks. We believe that there is good value in this sector and that there is an increasing volume of sales as lenders look to have debt repaid,” Jacobs said. “Over a number of years MIPIM has consistently proved a fertile ground for identifying and developing new business opportunities, and I expect this year to be no different,” he added.
Hannover acquires Covent Garden HANNOVER Leasing, in partnership with a major Asian institutional investor, has purchased the 26-storey, 74,000 sq m Covent Garden development in Brussels. Completed in 2008 and designed by Art & Build Architect and Montois Partners, the two building scheme is fully let to the European Commission. It is ideally located downtown, next to the Jardin Botanique public park, between the North Station and the famous Rue Neuve pedestrian retail street. The sale was the second largest single transaction in the Belgian market in 2014.
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NEWS
Canary Wharf begins 500,000 sq m development in London Part of Canary Wharf’s 2015 development pipeline
Art & Build’s winning design for the Nantes EuroNantes Gare project
WINNING DESIGN FOR EURONANTES GARE UNVEILED THE FRENCH city of Nantes has selected the winning design from the six shortlisted finalists for the redevelopment of its EuroNantes Gare Plot 1E site. The winner is the project developed by ADI Sogeprom and designed by Art & Build Architect and Garo & Boixel architects. Located at the heart of the new EuroNantes Gare neighbourhood, the project is a mixed-use development of 12,000 sq m of offices, residential and light industrial space. The project will integrate bio-sourced materials with workshops housed at grade level in modular wooden structures nestled into acoustic surfaces. The wood acts as a counterpoint to the mineral cladding on the three towers overhead. The office building to the east, which features a reversible floor plate allowing for its future transformation into residential units, will be built primarily from crosslaminated timber, housed in wooden frame facade components. This will reduce the carbon footprint of the development as a whole and contribute to the urban resilience of Nantes city centre. Construction work will start in 2016.
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evelop er Ca na r y Wharf Group — now owned by Brookfield and Qatar — is beginning a development programme consisting of more than 500,000 sq m of space in London. Comprising 22 buildings across four projects, the development pipeline encompasses residential, commercial, retail, lifestyle and tech buildings. The projects are the Newfoundland residential tower, which will enable people to live on the Canary Wharf Estate for the first time; the One and Ten Bank Street office devel-
opments; the new mixed-use phase of Canary Wharf (formerly known as Wood Wharf); and the expected mixed-use Shell Centre redevelopment on London’s South Bank. Canary Wharf Group has a mixed-use development pipeline of 11.5 million sq ft (1.06 sq m), enabling it to build on its existing 17 million sq ft of office, retail and leisure space. This new wave of development will continue the group’s drive to diversify its offering, and create high-quality homes and offices, and lively retail and leisure space for London. Canary Wharf Group’s chairman
and CEO Sir George Iacobescu said: “Having regenerated Canary Wharf Estate into one of the world’s leading business districts, the path ahead will take us into residential markets, create major new London retail and leisure hubs, and embrace smartcity technologies as we continue to innovate, and provide space for office tenants from a broadening range of sectors.” Canary Wharf Group was taken over earlier this year by Canadian developer Brookfield and the Qatar Investment Authority in a £2.6bn deal.
Demand outstrips supply in retail A LOW supply of suitable investment stock in target markets is holding back retail property activity in EMEA, according to real estate adviser Cushman & Wakefield. Nevertheless, according to its annual global capital markets report, International Investment Atlas, demand is increasing and annual volumes in 2014 were at their highest since 2007 at €49.2bn. In the absence of sufficient available stock in the target markets, offices dominated in many areas,
taking a 44% market share in Q4 compared to 20% for retail. Interest in areas such as hospitality, student housing, mixed-use and medical facilities all rose. The UK and Germany remain the two largest EMEA retail markets, despite a slight fall in activity over the year as a whole. Southern Europe in general performed well, with volumes in Spain up 117% to €2.6bn — a six-year high — while Italy rose 65% and Portugal 98%. The fastest growth, however, was seen in Ireland (714%), the Czech
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Republic (407%), Austria (328%) and the Netherlands (207%). While events in Ukraine have destabilised some markets, much of Central and Eastern Europe had a buoyant year-end, with retail volumes strongly ahead in Hungary, Slovakia, Romania and Bulgaria. Cushman & Wakefield said supply levels in general are improving, but shortages of quality space will continue to hold back the EMEA market in 2015. However, retail property investment volumes are expected to rise 14.5% in 2015 to €56.3bn.
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NEWS 2014 RECORD YEAR FOR AEW EUROPE REAL estate investment manager, AEW Europe, enjoyed record levels of activity in 2014, with increased transaction volumes and more capital raised in a single year than at any time in its history. At €2.9bn, transaction volumes for 2014 showed a significant growth over the previous year. Meanwhile, over €2.2bn of new equity was raised during the same period. The company believes the outlook for the year ahead is equally promising. AEW Europe is active across all major European markets including the UK, France, Germany and Central and Eastern Europe. In the UK, its Core Fund doubled in size during the year and was ranked as the UK’s best performing balanced fund for the two years ending December 31, 2014.
CREFC calls for a strategic approach to the debt market
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EBT is now one of Europe’s leading alternative real estate assets, according to Commercial Real Estate Finance Council (CREFC) Europe chief executive Peter Cosmetatos. Downward pressure on bonds, quantitative easing in the EU and Japan and the likelihood that record low interest rates will persist for some time has created a “perfect storm” for a booming property debt market place, he claimed. Furthermore, regulatory pressure for insurers to reduce real estate equity fund investments also plays a role. One important feature of the new real estate debt landscape is the growing presence of multi-asset investors. Risks are managed by bringing together equity real estate and fixed income expertise to focus on real estate lending, as an alter-
native to commercial mortgage backed securities (CMBS) or other low yielding corporate bonds. CREFC Europe believes that investors’ pursuit of yield, combined with continued constraints around new supply, tightening regulation and a prolonged retreat by many banks, has created the conditions for a structural diversification of the real estate debt market. “The growing market presence of debt funds and alternative lenders has been immensely positive for the sector,” Cosmetatos said. “Now we have to address the informational challenges of the real estate debt market, especially as the recovery of commercial mortgage backed securities, the only really transparent part of the market, remains uncertain.” At MIPIM this week, CREFC Europe will call for a more stra-
HB Reavis’ first UK scheme on show
33 Central, in the City of London
HB REAVIS is showcasing a number of flagship projects at this year’s MIPIM, including schemes in Poland and its first in the UK — 33 Central in London.
The Slovakia-based real estate development group operates in the markets of Central and Eastern Europe, the UK and Turkey. It has been a participant at Cannes since 2004
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CREFC Europe’s Peter Cosmetatos
tegic and holistic approach to support a sustainable and effective real estate finance sector, so that investment capital can reach development projects and Europe’s regions beyond the major gateway cities, benefiting the real economy as well as investors.
Among the projects displayed at HB Reavis’ stand will be major Polish office developments: the Konstruktorska Business Center and Gdanski Business Center II in Warsaw. The former, comprising 48,000 sq m of space, opened in 2013 and is 100% let. The first phase of the Gdanski Business Center was completed last summer, and the second stage, providing over 50,000 sq m of grade-A office space, is scheduled for completion in Q1 2016. The total leasable area of this entire development, once complete, will exceed 98,000 sq m. In the City of London, the construction of 33 Central is currently under way. This grade-A office building, designed by John Robertson Architects, is due to be completed by late 2016. It will provide more than 21,000 sq m of high-quality office space as well as a rooftop garden overlooking the River Thames and other iconic London landmarks such as St. Paul’s Cathedral and The Shard. In addition to these schemes, the group will also showcase further investments such as the West Station project in Poland, Forum Business Center in Slovakia, River Garden II/III complex in the Czech Republic and Vaci Corner Offices in Hungary.
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NEWS CO-FOUNDER ACQUIRES SPECIALIST RETAIL FUND SPECIALIST retail property fund and asset manager Pradera has agreed a deal that will see it remain an independent investment manager. Co-founder Colin Campbell, who already owns 40% of Pradera’s holding company, Kuno, has purchased business partner Paul Whight’s 60% stake for an undisclosed sum. The transaction will see Campbell re-appointed chairman, while the management team will be further strengthened by the appointment of shareholder and former director David Fletcher as a fourth managing director alongside Alison Rehill, Neil Varnham and Roberto Limetti. The sale allows the business to retain the Pradera name and independent management following speculation in 2014 of a sale to a third party. Campbell has held a number of positions at Pradera, including managing director, chief executive and chairman. Along with Whight, he has been a non-executive director since 2012. Campbell said: “The consolidation of the business and the strengthening of the senior management team will position us to take advantage of the exciting opportunities now available in continental Europe and the UK and enable us to grow at a greater pace, particularly in continental Europe.” The deal is likely to complete in late March or early April, subject to approval by the CSSF, the regulator of Pradera’s Luxembourg Funds. Founded in 1999, Pradera’s €2.4bn portfolio consists of 60 shopping centres and retail parks in the UK, Spain, Italy, Greece, Germany, Poland, the Czech Republic and Turkey.
Hines in market for new equity partners following ‘stellar year’
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S-BASED internaoperations, senior managing tional real estate director Ross Blair. firm Hines is in Outside central London, a Cannes to build on string of lettings has been its strong track recompleted, including Maxis cord of securing third-party in Bracknell in the Thames equity to augment its own Valley, and Brindleyplace and capital in order to expand its Two Snowhill in Birmingham. UK portfolio of investments Hines recently acquired the 1 and developments. million sq ft Livingston shopThe firm has leased over ping centre in Scotland on be600,000 sq ft (55,700 sq m) half of HSBC Alternative Inof office space in the last 12 vestments, with whom Hines months in what it describes as has acquired over £700m of “a stellar year”. About half of assets since 2012. this space is in prime central “The attraction of MIPIM is London office developments, the unique environment it creincluding Cannon Place, 280 ates, which is so conducive to High Holborn and the Broaddeveloping and strengthening gate Quarter. existing relationships, while “The central London office networking and making new leasing market gathered real connections,” Blair added. pace in 2014, with this mo“As London continues to atmentum spreading into other Hines’ Ross Blair: “networking and making new tract major foreign investparts of the UK. These fa- connections” ment, our international reach vourable market conditions, puts us in a great position to helped us significantly increase combined with occupiers’ establish joint ventures with increasing flight to quality in the occupancy rate across our investment partners from Asia, their workplace environments, portfolio,” said head of Hines UK the US and Europe.”
Internos aims for €750m in 2015 INVESTMENT manager Internos Global Investors plans to launch a range of funds in 2015 in parallel with the takeover of existing portfolios. Internos is targeting €750m of acquisitions in 2015, having invested more than €300m for its new funds and disposed of €900m of assets during 2014. It will invest in predominantly income-producing assets in the hotel, German retail and German care-home sectors, as well as expand its investment activity into the UK and Dutch institutional residential property sectors and the
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mainstream European commercial markets. It will also continue to dispose of assets from f u n d s where it has a mandate to recover
value on behalf of investors. Andrew Thornton, CEO of Internos Global investors, said: “A combination of strong capital flows into Europe and a focus on executing asset-management initiatives enabled us to deliver the strategies agreed with our investors in 2014. We also activated several mandates investing in opportunities in specific sectors of the German market and southern Europe. In 2015, we will continue to invest on behalf of our active funds, exploiting prevailing lowinterest rates to enhance income returns, while we explore opportunities for institutional investors in European markets.” Internos Global Investors’ Andrew Thornton: delivering on 2014 strategies
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Cushman & Wakefield in A Well Founded Partnership with Yardi Systems for two Decades Expanding firstly throughout the United States and then globally, one of the world’s largest privately-held commercial real estate firms, Cushman & Wakefield embarked on a strong, long lasting partnership with Investment, Asset and Property Management Solutions company Yardi Systems to support the drive to deliver best in-class services to its diversified global client base.
Founded in 1917 in New York, Cushman & Wakefield is now one of the worlds leading real estate companies operating in six continents across the globe. Today, Cushman & Wakefield has approximately 250 offices in 60 countries, employing more than 16,000 professionals, all dedicated to consistently providing the most creative and innovative services to drive meaningful growth for clients. “Our clients, our core competencies, and the ability of our people to deliver those core competencies make up our brand. We approach business with a discipline for consistency, simplicity and transparency that is unique. This is what differentiates Cushman & Wakefield”, comments Michel Chang, Head of Property & Asset Management at Cushman & Wakefield Netherlands. Consistency Across the Globe As a global firm, Cushman & Wakefield delivers consistent services and solutions around the world using the same resources, intelligence, processes and the same management platform. “Whether you are a tenant, landlord, investor, or developer, a global company or a small business, Cushman & Wakefield provides solutions that fit strategic, operational, and financial goals”, comments Chang. “These solutions are consistent in every office around the world. Our strategy is to transform local, regional and global client requirements into scalable and integrated technology solutions that deploy efficient service delivery at each level”. Strategic Partners Since 1996 In a rapidly changing world, Cushman & Wakefield knows that clients will always demand and expect the best. For this very reason, when it came to choosing a solution for their property management and accounting requirements, Yardi Voyager was their first choice. “Cushman & Wakefield and Yardi Systems have been strategic partners since 1996. We are in a position that allows us to manage highly complex IT projects. Offering either hosted platforms for clients or utilising client´s own systems, our knowledge in this area is market leading”, explained Chang.
Cushman & Wakefield first implemented the Yardi solution in the United States and rapidly expanded to the United Kingdom, France and the Netherlands turning it into the first partnership supported globally outside the United States. “The Yardi platform presented the flexibility we needed to offer clients the chance to consider it as their own. We are working side by side to continually develop functionalities, interfaces and modules in order to ensure continuous evolution and improvement in the system”, comments Chang.
and high-level data security are completing the list of key elements that are meant to provide a competitive edge on today’s real estate market. “We strive to align ourselves with our clients’ needs each and every day. Market changes and requirements keep on coming into the world of real estate. In order to provide our clients with the advantages that the latest technology offers; we work closely with Yardi to continuously develop and enhance the existing system. We receive considerable support from them”, Chang explained. The Yardi platform also brought powerful reporting capabilities and analytical tools, which aligned perfectly with the company’s aim to deliver highly accurate, consistent and timely reports to clients across multiple continents. This enabled clients to make informed real estate decisions and furthermore, enabled users in different departments around the world to benefit from a user friendly, configurable interface in their daily work. Chang believes that “unlike other systems, Yardi Voyager is user friendly in a way that means items can be handled with minimum effort and everything in the system is self-explanatory”.
Michel Chang - Head of Property & Asset Management at Cushman & Wakefield Netherlands. Benefits of a Global Platform The advantages of using one internet-based solution worldwide are undoubtedly significant. Key features of the Yardi Voyager system such as multi-currency conversion, country specific taxation, purchase order integration, investment management, service charge, indexation, local language invoices and reporting are used by Cushman & Wakefield today to provide best-inclass services to its clients.
Joint Efforts Delivering Best-In-Class Services This strong partnership has endured the test of time and lasted over 20 years. Cushman & Wakefield and Yardi continue to engage today in a joint effort to enhance the system to benefit clients across the globe. “Recently we completed a Pan European project with one of the major real estate companies in Europe to make it possible to transfer detailed real estate data via EFT from Yardi to SAP. Yardi has been and continues to be a great support”, Chang enthused. “As Yardi increases their market share across the real estate life cycle, our extensive knowledge and experience puts us in a position to fully utilise our knowledge and experience in delivering consistent solutions to our client base”.
Easy access to information securely held in a single centralised database, real time processing
Investment, Asset and Property Management Software To learn more visit Yardi at MIPIM 2015 - Riviera Hall - Stand R7.F27
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TU ESDAY I N BRIE F TUESDAY 10 MARCH BLUE ROOM
RED ROOM
ORANGE ROOM
GREEN ROOM
Breakfast on Japan* Inbound and outbound capital trends - Japan as source and destination of capital [Event] - Majestic Hotel, Salon Diane 8.30 - 10.00
RE-Invest Summit* Real estate strategies in a changing world
Sponsor: Diamond Realty Management
Newcomers Welcome Meeting & MIPIM Tour [Event] - Deep Design Restaurant, Palais 3 9.30 - 11.00 Will China’s economic slowdown reduce outbound capital flows? [Panel] 11.30 - 12.30 Co-organiser: Cushman & Wakefield
[Summit] - Carlton Hotel, Ballroom 8.00 - 12.30 Sponsors: Aberdeen Asset Management, AXA Real Estate, KPMG AG, Real Capital Analytics
UK Cities: Increasing opportunity and value for investors [Panel] 11.30 - 12.30
Capital Megaprojects Russia & worldwide: solutions that work [Panel] 11.00 - 12.30 Co-organiser: Kommersant
OTHER LOCATIONS
Hosted by Estates Gazette, in association with GVA and UK Core Cities
Asia Lunch* [Event] - Majestic Hotel, Salon Croisette 13.00 - 14.30
Investors Lunch* [Event] - Carlton Hotel, Ballroom 13.00 - 14.30
Sponsor: Norton Rose Fulbright
Sponsors: Aberdeen Asset Management, AXA Real Estate, KPMG AG, NEF, Real Capital Analytics
The German real estate market - still an attractive investment area in Europe? [Panel] 14.30 - 15.30 Co-organiser: Heuer Dialog
Keynote address by Sir Edward Lister, Deputy Mayor, Policy and Planning, Greater London Authority London 2050 [Keynote] 14.00 - 14.30 Crowdfunding: industry game-changer? [Panel] 14.30 - 15.30
A public secret: Opportunities and challenges from the demographic changes in Germany [Workshop] 14.30 - 16.00 Sponsor: AviaRent Capital Management S.a.r.l
Sponsor: Wealth Migrate
Data REvolution, reinventing occupiers and investors’ strategies [Workshop] 16.00 - 17.30 Sponsor: Schneider Electric
Overview followed by 2 case studies Innovation at the heart of urban development [Workshop] 14.30 - 16.00 Case Study1: Derby - UK Capital for Innovation Sponsor: Derby
Case Study2: Welcome to Barcelona 5.0 Sponsor: Barcelona City Council
Greening up the city: challenges for Real Estate [Panel] 16.00 - 17.00
Investing in Sweden: new opportunities and perspectives [Panel] 16.00 - 17.00
Co-organisers: Amsterdam Barcelona Hamburg Manchester MIPIM Stockholm
Sharing spaces: same solutions for all? [Panel] 16.00-17.00
In association with ESSEC Business School
Sponsor: Cushman & Wakefield
Emerging Trends in Real Estate©: a global outlook for 2015 [Panel] 17.30 - 18.30
Stockholm, where innovations meet investments [Panel] 17.00 - 18.00
Towards the end of ownership? [Workshop] 17.00 - 18.30
Sponsor: Stockholm Business Region Development
Sponsor: Allianz Followed by cocktail
Co-organiser: Urban Land Institute & PriceWaterhouse Coopers
MIPIM City Investment Forum Leading powerhouses of the future [Panel] - Grand Auditorium 14.00 - 15.30
MIPIM Opening Cocktail [Event] - Carlton Hotel From 19.30 - Open to all MIPIM Participants Sponsors: Istanbul Chamber of Commerce & Beyoglu Municipality * By invitation only events
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Programme as of February 23rd 2015, may be subject to change
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NEWS JLL EXPANSION CONTINUES A SIGNIFICANT provider of corporate real estate services in the Swedish market has been created with the purchase by JLL of Stockholm-based Nextport, a tenant representation and relocation management business. The move complements the position held by JLL in investor real estate services in the country and follows last year’s acquisition of property investment advisor, Tenzing. The acquisition takes immediate effect and Nextport’s 20-strong team will relocate into JLL’s Stockholm HQ at the end of March. Erik Dellner, founder and CEO of Nextport, becomes JLL’s new head of an enlarged team of 30 people in Sweden, with former head Marie Cronstrom moving into a new role as head of business development. JLL now employs nearly 100 people in Sweden, with offices in Stockholm and Gothenburg. 230_OVG_N1a3_pim
Boom-time for Hamburg as foreign investment doubles
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t MIPIM the Hanseatic city of Hamburg will showcase its potential, one that offers major development opportunities for the years ahead. The property sector is thriving in Hamburg. In 2014 transaction volumes reached €3.82bn, an increase of 43% on 2013. This figure is also 44% higher than the 10-year investment average and just shy of the record volume set in 2006. At the end of 2014 Hamburg notched up its third-highest quarter ever, with a transaction volume of €1.36bn. Interest from foreign investors has also grown over the past 12 months: from 28% in 2013 it almost doubled to 44% in 2014. Among the biggest investments is the sale of Uberseequartier Sud, in the HafenCity harbour rede-
The Uberseequartier in HafenCity, Hamburg. Photo: Thomas Fries
velopment, to Unibail-Rodamco, which in 2017 will see €860m invested in the purchase of land and the construction of shops, homes and offices. Other big deals are the sale of five buildings in Uberseequartier Nord to American group Hines for an estimated €235m; and Swedish pension fund Cityhold’s acquisition of Atlantic Haus and its Burstah office complexes for over €200 million. Axel Steinbrinker, CEO of German
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property firm Grossmann & Berger, said strong demand for property in Hamburg comes as no surprise. “For many foreign investors Germany’s political and economic stability make its property market an attractive proposition. With an economic diversity that supports a wide variety of industries, Hamburg is a robust market in which to invest. That’s why 2015 should see investment from the US, Canada, Sweden, France and the UK.”
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SPECIALIST CONSULTANCY FOR THE PROPERTY SECTOR Our figures are hard to argue with:
No.1 Ranked #1 financial PR advisor in Europe.
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Leading advisor to over 300 property clients.
45/100 Advisor to almost half of the world’s 100 largest companies.
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Foreign investment in Dutch rental homes set to double
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UTCH rental homes are attracting increasing interest from international investment, which now accounts for over half of all activity in the sector, according to a new report. Research from Dutch residential property specialist Capital Value reveals an increase in foreign investment in the Dutch rental homes sector to €1.5bn last year. This is likely to double in 2015, with international investors preparing up to €3bn to invest. Out of 250 international investors surveyed for the report, 40 respondents said they were actively researching the Dutch market with 10 of them targeting Dutch rental homes. The Netherlands is now the third most interesting European market to international investors, behind the UK and Germany. Capital Value said that growing demand from renters combined
VOTE FOR
with a shortage of stock was creating the perfect environment for investors, which are achieving significant yields from the sector. The student rental sector is also proving to be a big draw, with 26% of investors surveyed saying this was of interest. Interest is coming mostly from the US, followed by the UK and Germany, with the majority of potential investors seeking existing stock and less then a third showing an interest in new developments. “Never before has so much interest and capital been available for investments in rented housing,” said Capital Value managing director Marijn Snijders. “The fact that international investors are mainly complementary to Dutch investors as well as the fact that foreign banks are showing an increased interest in providing loans may be a major boost for the Dutch residential market.”
WIRTSCHAFTSWUNDER MADE IN GERMANY
Supporting sustainability LOCATION , building quality and energy efficiency are
the main factors involved in long-term use of real estate and sustainable development of value. German consultancy TUEV SUED supports market players by providing a comprehensive portfolio of services related to sustainability of their investments throughout the entire life cycle of a property. Services for the long-term value and sustainability of real estate is the focus of the TUEV SUED stand at MIPIM. The portfolio of services presented spans property valuation reports, due diligence services, sustainability consultancy, asset management and property management, and construction quality control. “We supply reliable, robust information as a basis for decision-making,” said Dr Ulrich Klotz, CEO of the Real Estate & Infrastructure Division of TUEV SUED. “Our experts have over fifty years of experience in this field at the highest international level.” TUEV SUED has driven ahead the development of its portfolio of real estate services in recent years and complemented them by adding consultancy services. The acquisition of K+S Haustechnik Planungsgesellschaft in 2013 and cgmunich in 2014 enabled the service organisation to expand its scope.
A JOINT-VENTURE OF AND
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NEWS
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Institutional investors to raise real estate targets
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NSTITUTIONAL investors will increase their investment in real estate by $52bn in 2015, raising target allocations to 9.6%, up from 9.4% last year. This is according to research from Colliers International titled How Long Will This Property Bull Market Last? which predicts that the increase will provide a significant boost to the funds targeting global real estate, continuing the trends seen in recent years. The report also notes the increase in cross-border direct investment flows with the substantial expansion of Asian investment led by the Chinese. Asian capital accounted for around 13% of cross-border investment in 2007 and more than doubled to 30% last year. This represents an increase of $36bn, with signs of further growth to come. However, the report finds that there is too much money chasing the same international grade assets. A ‘once in a generation’
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opportunity therefore exists to redirect investment into infrastructure and new technically sophisticated real estate assets that will deliver long-term economic growth and increased productivity across Europe and the UK. Infrastructure projects such as airports, universities, hospitals and care facilities often have lengthy lead times and large capital requirements, but offer the long, regular paybacks that appeal to institutions. Walter Boettcher, EMEA research director and economist at Colliers, said: “The real concern for this particular property cycle is that there is too much money chasing the same product. Are there sufficient standing investible assets to satisfy steadily increasing demand? If you think strictly about real estate offering secure long-term income that can be used for annuity liability matching, the answer is probably not, especially given the trend towards short commercial leases.”
Stand: Riviera 7, F.31
Metro project puts Espoo on track to vibrant future FINLAND’s largest infrastructure project, the €848m westward extension of the Helsinki metro system, will improve connections to one of the largest and fastest growing cities in the country, Espoo. The project has the potential to attract 70,000 additional inhabitants, while increasing employment by 100%. The population of Espoo, which is within the Helsinki metropolitan area, has increased tenfold within 50 years and the number of residents is expected to increase by a further 24% within the next 20 years. “We aim to be the best innovation environment in Europe and an important gateway for Asian companies into Europe,” said Espoo mayor Jukka Maekelae. Espoo is home to Aalto University’s main campus as well as 25 research institutes. Consequently, more than 51% of the city’s residents hold a university degree, while 20% of the inhabitants are under 15 years old. The western metro extension will transport over 100,000 passengers daily. It will include 13 new stations, with the first eight opening by the end of 2016 and the remainder to be be completed by 2020.
COMPREHENSIVE GLOBAL REAL ESTATE DATA AT YOUR FINGERTIPS www.preqin.com/realestate
alternative assets. intelligent data.
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ANALYSIS
2014 Investment flows
2014 Top markets
Glasgow $1.988bn
from Canada to UK
$2.992bn
Leeds $1.770bn
Manchester $3.916bn
from USA to UK
Birmingham $3.153bn
$22.639bn
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London $42.889bn 09/03/15 17:03
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Top deals 2014 Location London London London Greenhithe London Leicester London London Manchester London London London London London
Property
Price
HSBC HQ Canary Wharf Tower Swiss Re Tower Bluewater Merrill Lynch FC Fosse Shopping Park New Scotland Yard 125 Old Broad Street RBS HQ Woolgate Exchange 33 Holborn Circus Alban Gate Belstaff House Old War Office
$1.718bn $1,199bn $1,159bn $1,099bn $967m $583m $578m $547m $534m $521m $518m $510m $486m $469m
Purchaser Qatar Investment Authority China Life Insurance/Qatar Inv Auth Safra Group Land Securities Norges Bank Invt Mgmt Crown Estate/SAFE Abu Dhabi Financial Group (ADFG) Blackstone Prudential Cathay Financial Holdings Tishman Speyer/SAFE Blackstone OMERS/Richemont Hinduja Group/OHL
from China to UK
$4,864bn from Singapore to UK
Source: Real Capital Analytics
$1.852bn
from Gulf to UK
$7.451bn 35 info_UK.indd 2
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NEWS
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London’s offices are the world’s most expensive
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ONDON’s West End is the world’s most expensive office market for the third consecutive year, ahead of Hong Kong, according to Cushman & Wakefield’s annual Office Space Across the World global ranking. Prime rents in London’s West End have risen 4.6% over the past year but are still 13% less than the 2007 peak. Further rental growth is anticipated against a backdrop of limited supply in 2015. “London continues to attract major international businesses looking to be based there, often using it as a springboard into Europe,” said Cushman & Wakefield’s head of London markets, George Roberts. “As economic conditions in the UK further out-perform, there will be heightened demand for London office space in 2015 from across all sectors. With supply
RENDEZ-VOUS
Marseille Métropole
heading downwards, further rental growth is expected.” Global office rents rose 7% in 2014, more than twice the 3% annual compound increase since 2010. “A key theme of the European office market is the low level of development delivered over the last two years,” said Cushman & Wakefield’s head of EMEA offices James Young. “Despite a recent increase in construction activity, the revival is supplyled as occupiers continue to search for quality space that provides the right environment for staff in a highly competitive employment market.” In under-supplied markets such as London some occupiers are moving offices sooner than expected in order to secure the larger, more flexible floorplates they need. Secondary space is becoming a more realistic option for some as availability of the best space diminishes.
MIPIM 2015 / R7- E57
Returns up in the UK capital LONDON’s commercial property market brought average returns of 22.2% in 2014, up by 8% from the previous year, according to new research. The figure was based on analysis of a sample of 20 submarkets in London, worth over £30bn (€40bn), carried out by Levy Real Estate and MSCI for its annual London Markets Report. Of these the Northern Fringe, including the Shoreditch, Old Street and Spitalfields areas, recorded the greatest return of 32.3%. In 2013 the average return rate in London was 14.2%. Levy Real Estate said that the growth in returns was being driven partly by strong rental growth, particularly in the fringe areas of the capital. Average rental growth across the 20 submarkets analysed for the report was 7.8% in 2014. Commenting on the findings, Levy Real Estate Investment Partner, Simon Heilpern, said: “London is the focus for extraordinary business and population growth which is feeding directly into its property markets. Investors can see that the capital is taking a strong strategic lead and moving to provide the infrastructure and built environment that a city of world-class stature needs. “This is what makes its long-term prospects – and those of the property sector that serve it – so attractive to investors”. Heilpern is speaking at the Central London Market Review panel session today (11.30, London stand), with representatives from the Westminster Property Association and the City Property Association.
Home to industrial and scientific innovation - Henri Fabre, PIICTO, ITER and the Marseille Immunopôle cluster and a model for the sustainable cities of the future with the EcoCity by Euroméditerranée, the status of Marseille Métropole as a euro-mediterranean capital is confirmed.
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The Wall Street Journal readers influence $39.7 billion in global real estate.
A Platform as Powerful as the People Who Use It. +44 (0) 207 572 2124 +1-800-366-3975
Source: Purchase Influencers in American Business, Erdos and Morgan.
Š 2014 Dow Jones & Company, InC. all RIghts ReseRveD.
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NEWS
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Student housing is class act for Carlyle Group
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LOBAL alternative asset manager The Carlyle Group has sold purpose-built student accommodation business Pure Student Living to LetterOne Treasury Services for £532m. Pure Student Living comprises 2,170 rooms across five Central London sites, with Highbury, Hammersmith, Bankside and City fully operational and Whitechapel due to add a further 417 rooms when it completes in August this year. The transaction has been structured to complete in two phases, with the first comprising the acquisition of the four operational assets, with the deal to complete fully when Pure Whitechapel is delivered in the summer. Mark Harris, managing di-
rector of The Carlyle Group, said: “Having first entered the London student accommodation market over five years ago at a time when there was little equity, debt or appetite for development, the sale represents a successful result for this investment.” Carlyle entered the London student accommodation market in 2010 when it acquired the Highbury site on behalf of its third pan-European real estate fund, Carlyle European Real Estate Partners III. The portfolio has been managed by Generation Estates. Carlyle continues to own student housing in Amsterdam, Rotterdam and The Hague, with 1,700 rooms managed under T he St udent Hotel brand.
Stand JoinEvents us in MIPIM, Cannes We are in10 theMarch habit of creating conversations and would love to Tuesday chat with you at Stand R7.G 2 in the Riviera Hall at MIPIM Cannes 10.30am: Mayor of Liverpool Joe anderson OBe in conversation. There are regular presentations on stand, there’s good coffee,
3pm: charge up points and wifi, so please join us to deloitte chat, charge and International Investmentup in the Northrefresh. West. 4pm: @LiverpoolMIPIM GVa Delivering large scale urban development. 5pm – 6pm: liverpoolvision.co.uk/mipim Drinks reception. Wednesday 11 March 9.30am: Morgan sindall Changing lives in Liverpool.
11am: arup / Liverpool Vision Liverpool International Waterfront Forum Cities announcement
European commercial property investment back to 2007 levels
1pm: Liverpool BId, Bill addy Adding Value - The role of a Business Improvement District in a Global City. 2.30pm: Bruntwood The changing face of workspace. 3pm: Mayor of Oslo and Mayor of Liverpool meet and greet.
E
5pm – 6pm: Drinks reception.
UROPE’s commercial real estate sector is set for a year of strong growth after a surge in activity during 2014 saw volumes return to pre-downturn levels, according to new research. In its annual European Commercial Property Outlook report, released today, international real estate agent Knight Frank has identified total investment across all sectors of €177.6bn in 2014, up 21% year on year. It is the highest total level of investment since 2007. An increasing appetite from investors looking to secondary opportunities, alternative sectors and specialist property investments is helping to drive activity across Europe, the report found. It also pointed to the programme of quantitative easing (QE) announced by the European Central Bank in January as being likely to increase confidence and activity as the year progresses. In its predictions for 2015, Knight Frank said that the office and hotel sectors showed the most promise, particularly in Northern and Western Europe, with industrial property also offering investors opportunities throughout the continent.
Thursday 12 March 10am: colliers International Regional Revolution: a once in a generation investment opportunity for regional infrastructure development. 11am: Peel Liverpool Waters update. 12pm: Glenbrook The PRS Revolution - Queens Dock case study. 3pm: city residential Liverpool – The best value residential market in the UK? 5pm – 6pm: Drinks reception.
liverpoolvision.co.uk/mipim @LiverpoolMipim
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NEWS
Speakers challenge the UK enjoys record year as way we look at cities investors look to regions
RIBA president Stephen Hodder
MIPIM delegates will be challenged to change the way they look at designing and building cities during a series of thoughtprovoking talks chaired by Royal Institute of British Architects (RIBA) president Stephen Hodder. Challenging Cities, organised by the RIBA London, will bring together some of Europe’s foremost thought leaders to discuss their ideas about the city, health, the rise of smart and digital, the
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environment and leadership. Challenging Cities, chaired by RIBA president Stephen Hodder, starts at 10.00 on Thursday in the Architecture Cafe. Subjects covered in individual talks under the Challenging Cities umbrella are: Digital Cities; Environmental Cities; Healthy Cities; and Leadership In Our Cities. Hodder said: “Cities are at the forefront of the changing property world and the demands we place on them are changing at an unprecedented rate. If our cities are going to continue to drive growth and prosperity we need to ensure they are places people want to call home. “I’m delighted to be bringing together some of the leading thinkers in the built environment arena to share news and ideas on how we can ensure our cities are fit for the future.”
U
K PROPERTY investment saw a record turnover in 2014, with an 11% rise to £56bn, according to the latest Investment Market Update from consultant DTZ. The primary cause was a 40% increase in investment activity outside central London, growing from £26bn to £36bn. In contrast central London’s transaction total fell by 10%. Foreign purchasers increased investment outside central London by 82% in a year in which their overall UK spending increased by 26%, from £22bn to £28bn, DTZ said. Funds raised from multiple jurisdictions and North American investors in particular moved into the UK regions in 2014. The former category was the largest net purchaser of investment stock in 2014.
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Lot size rose sharply in 2014. The number of large (£100m+) transactions rose by £29m, with over four fifths of this increase taking place outside central London. Office turnover outside central London increased by 44% in 2014 to nearly £8bn, spread evenly across the major regional cities, the South East and other markets. UK shopping centre investment transactions in 2014 totalled close to £6bn across 101 centres, the highest total since 2006. Retail warehouse volume also increased to its highest level since 2010 with nearly £3bn of sales in 127 deals. Industrial portfolio deals especially for distribution warehouses made a major contribution to the record £6bn amount of industrial property sold in 2014.
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Conference panel to focus on China’s outbound investment
BSM HIGHLIGHTS LAKE CONSTANCE OPPORTUNITIES FOR THE fourth consecutive year the Lake Constance economic area is being promoted at Cannes by the Bodensee Standort Marketing (BSM) team. At its booth in the German Cities & Regions pavilion, BSM is showcasing the investment and business opportunities in the region that comprises districts from four countries bordering the lake: Germany, Switzerland, Austria and Liechtenstein. It will highlight the developed structure of enterprise networks (clusters), the 29 local universities and the extensive experience in cross-border co-operation enjoyed by investors.
Aedas chairman Keith Griffiths
R
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ECENT developments in Chinese economic activity and the potential impact on outward investment in global real estate is analysed by Keith Griffiths, chairman, Aedas Group International, when he speaks at a conference today. The session, Will China’s Economic Slowdown Reduce Outbound Capital Flows? examines the ef-
fects of the country’s domestic economy on Chinese companies. Will they hunt for acquisitions abroad or will there be pressure to rein in outbound investment? A long-term MIPIM supporter, Griffiths is upbeat about current official policies that aim to kerb rapidly rising residential prices and prevent the uncontrolled spread of urbanisation. The Chinese government’s National New-type Urbanisation Plan, revealed in March, envisions a large-scale building programme of transport networks, urban infrastructure and residential real estate from now until 2020. Rather than a slowdown in development, he sees the changes as a repositioning of China’s urbanisation policy with an effective masterplan now in place to reflect the new norm of 7% annual growth. “This will lead to the development
of compact cities, with land being used more wisely and well. These will be high density, inclusive, sustainable and intelligent,” Griffiths said. The development of city clusters will be co-ordinated to the evolving transport and infrastructure network, particularly the highspeed rail system. He also believes that overseas activity — which represents a tiny percentage of the work going on in China itself — will be unaffected. Meanwhile, opportunities in the Chinese market will continue. Aedas’ recent acquisition of urban planning and arts specialist, RHWL saw the creation of new business unit, Aedas Arts Team. Griffiths sees great potential for transferring this extensive experience in arts and cultural projects to China where the sector is expanding at “a rate of knots”.
visit at s us tan r8.d d 13
DGNB Gold Certificate 2014
G o o d f o r i nve stors Long-term leases have been concluded for the 21.500 m2 of office space in Rheinwerk 3. The new tenants are service providers in the IT sector, suppliers of medical products and institutions associated with the university. The office units in the buildings’ glass heads are particularly popular. Why? The view of the Rhine makes Rheinwerk 3 the Number 1 office address in Bonn.
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Rheinwerk 3 GmbH Rheinwerkallee 3 53227 Bonn Tel +49 228 4334-2000 Fax +49 228 4334-2200 www.rheinwerk3.de ludwig.frede@rheinwerk3.de
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Navigating opportunities and risks in global property markets Wednesday 11 March 2015 16:30–17:30 followed by cocktail reception offered by RICS Red Room, Level 3, Palais des Festivals, Cannes Global real estate markets are shaped by so many factors in today’s fast-paced and interconnected world. For investors and property users this can demand great agility and the ability to spot trends which can fundamentally change market attractiveness. Risk profile, and the interpretation of risk, plays a vital role in the decisions made by all parts of the industry. This keynote session will draw on the expertise of pre-eminent leaders from the investment and commercial property world to consider what risks are important in today’s markets and how property practitioners can navigate them to achieve success. To register for this conference session, RSVP to: mipim.conference@rics.org
Welcome: Louise Brooke-Smith FRICS – President, RICS Keynote Address: Philip Barrett - Global Chief Investment Risk Officer, Pramerica Real Estate Investors Panel: John Slade FRICS - CEO, BNP Paribas Real Estate UK Alessandro Bronda MRICS - Head of Global Real Estate Investment Strategy, Zurich Insurance Philip Barrett - Global Chief Investment Risk Officer, Pramerica Real Estate Investors Moderator: Martin Brühl FRICS, RICS President Elect and Head of Investment Management International, Union Investment Real Estate GmbH
.
Louise Brooke-Smith
Philip Barrett
John Slade
Alessandro Bronda
Martin Brühl
RICS members are invited to make use of the RICS stand (R7.C34) to host their meetings, enjoy refreshments and network with fellow members.
#ricsmipim 20214-RICS-MIPIM 2015-ad 240x330mm.indd 1
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NEWS
AustralianSuper makes London debut with 25% of King’s Cross
BRIDGE BOOSTS ORESUND AREA COPENHAGEN Malmo Region is at MIPIM to promote the potential created by the completion of the Oresund Bridge linking Sweden and Denmark. Since the bridge’s opening in 2000, the region and its partners on both sides of the water have been able to plan projects without having to worry about the divide that was once Oresund. The bridge has opened up a hinterland in both countries, to the benefit of companies, jobseekers and students. The region hosts the largest concentration of highly educated people in northern Europe and has been described as the ‘Human Capital’ of Scandinavia. It is also at the forefront of environmental initiatives including solar energy, offshore wind turbines and zero-emission construction.
A
U S T R A L I A N - site to create 800,000 sq m of SU PE R , on e of offices, homes, hotels, leisure Aust ra l ia’s la rg- facilities, shops, restaurants, a est superannuation university, galleries, schools, funds, has taken a community facilities and music 25% stake in the King’s Cross venues. r e development scheme i n KCCLP investors include ArLondon. The move marks the gent K ing’s Cross Limited fund’s first direct investment in the city and only its s e c ond i n t he UK. Subject to t he custom a r y EU clearance, AustralianSuper will join the King’s C r o s s C e nt r a l Limited Partnersh ip ( KCC L P) in the regeneration of the 27 ha London’s 27 ha King’s Cross redevelopment scheme
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Partnership (backed by Argent and Hermes Investment Management), London & Continental Railways and DHL Supply Chain. King’s Cross is the second partnership between AustralianSuper and Hermes in the UK. The co-investors, who share a sustainable, long-term approach, i n it ia l ly pa r t nere d for centre:mk in Milton Keynes, following AustralianSuper’s purchase of 50% of t he major regiona l shopping centre from Hermes in December 2013. Hermes continues to asset-manage the centre on behalf of the co-owners.
JOIN US FOR
SUCCESSFUL INVESTMENT IN GER-BAVARIA
• 20 years of experience in project development • Real estate portfolio manager | Family office | Business enterprise • Investment volume of 120 million euros P&P Real Estate GmbH Isaak-Loewi-Str. 11 | 90763 Fürth | Germany www.pp-realestate.de
NETWORKERS CO-INVESTORS PARTNERS Make an appointment with us. You will find us at the MIPIM from 10 to 13 March 2015. Michael Peter | CEO +49 (0) 911-766 06-125 | peter@pp-realestate.de Christoph F. Schöppner | Director National Investment +49 (0) 172-893 51 62 | schoeppner@pp-realestate.de
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NEWS
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JLL advises on Germany’s largest hotel transaction
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LOBAL consultant JLL has advised on the €158m sale of the 381-room Le Meridien Munich hotel in central Munich, representing the largest single asset hotel transaction in Germany. The deal was completed on behalf of Kildare Partners and the Luxembourg-based administrator of the property company that owns the hotel to German open-ended property fund DEKA l. The hotel, which opened in 2002, is located opposite Munich’s main train station and was sold on an asset deal basis, subject to the existing long-term lease agreement with Starman Hotels. “The sale of Le Meridien Munich hotel offered investors the unique opportunity to acquire a
well-established hotel in one of Europe’s best performing and most sought-after European hotel markets. The sale was a very competitive process, with strong interest from a number of cross-border investors from Europe, the US and Asia,” said Sheima Salloum, senior vice-president of JLL Hotels & Hospitality Group. “Given the underlying deal structure, this sale additionally showcases that institutional capital is getting more and more flexible as a result of the current pressure on yields.” The 22,407 sq m hotel features 381 guest rooms and suites, a restaurant, conference and meeting facilities, a spa and a tranquil courtyard. It was part of a bigger transaction totalling 26,181 sq m, of which 15% is dedicated to lettable office and retail space.
Liberalisation hastens Asia’s move to Europe ASIAN investment in European hotels will reach €20bn in 2015, fuelled by the liberalisation of domestic controls governing outbound investment, according to the latest research from consultant CBRE. Asian hotel real estate acquisitions in Europe rose by 90% in 2014 and by 20% globally. With limited investable stock available in domestic markets, CBRE forecasts that hotel acquisitions by Asian investors could rise by as much as 58% in Europe this year. Asian institutional funds are generally under-allocated to real estate because of stringent regulations relating to overseas assets. Most of their overseas allocations are in liquid assets, such as equities, cash, fixed income and government bonds. This situation is changing with China, South Korea and Taiwan, among others, starting to allow overseas direct investments, along with higher allocations to real estate and a simplified approval process. Hotel real estate is a useful asset class for insurance companies diversifying their portfolios. Fixed-income lease terms are often longer than other asset types and yields are presently above traditional segments, even in prime locations. This has made hotels in large European cities, including Paris, Frankfurt and particularly London, attractive for Asian investors, CBRE said. CBRE predicted that the increasing liberalisation and total value of the assets held by Asian insurers would result in their investment assets growing from €114bn in 2013 to €180 billion in 2018, translating to about €66bn into real estate, direct and indirect.
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FÉVRIER 2015 N°124
IMMOBILIER – ARCHITECTURE – DESIGN
ARCHITECTURE FORM-a TABLE RONDE BATIBOUW 2015
L’Essentielle IMMO, le magazine immobilier
encarté dans “La Libre Belgique” le quotidien belge national ANNONCES IMMOBILIÈRES PRÈS DE 300 BIENS
Dominique Strauss-Kahn rejette les accusations de proxénétisme. Ce qu’il aime, c’est “la fête”.
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L’ancien patron du FMI a été entendu mardi au procès du Carlton, à Lille.
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Le grand déballage
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n MIpIM CHANGEMENT DE PERSPECTIVES n l’EuROpE A NOUVEAU ATTRACTIVE ?
International pp.14 à 17
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Le numérique transforme la grande majorité des métiers. Et il en crée de nouveaux. pp.24-25
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mipim
NEWS
ICOC’s 96 sq m interactive model of Istanbul
Interactive 3D model brings sights and sounds of Istanbul to Cannes
I
STA N BU L Chamber of Commerce (ICOC) comes to MIPIM with a 96 sq m interactive model of the city. The model — and Istanbul — will be presented in a 300 sq m dedicated tent. The model is designed to reflect 24 hours of Istanbul life by motion, sound and visual effects.
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While mega projects on the model reflect the modern face of Istanbul, historic and cultural places will emphasise the city’s centuries-old cultural crossroads function. The Istanbul municipality of Beyoglu, which is pioneering urban transportation in its regions, will also be demonstrating its pro-
jects in the Istanbul pavilion. The president of the ICOC, Ibrahim Caglar, said: “Presenting Istanbul’s new face, its vision and its heritage by emphasising its real estate and infrastructure projects as well as its iconic historical places on a 3D model is blazing a trail for us and other world cities.”
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16.02.2015 14:10
ICOC’s Ibrahim Caglar: “blazing a trail for other world cities”
According to Caglar, ICOC’s MIPIM pavilion aims to promote the trade and investment potential of Istanbul while creating an “eligible atmosphere for global investors to meet Turkish stakeholders for potential collaborations”. Caglar added: “There are over 60,000 member companies active in the real estate and construction sectors in the Istanbul Chamber of Commerce, which in total represents 375,000 companies from Istanbul.”
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mipim
NEWS
Get to know the northern Logicor expands in Germany city regions of Britain
N
BLACKSTONE Real Estate Partners Europe IV has bought 10
ORTHERN British hub, Leeds City Region, comes to MIPIM with a programme of activities showcasing one of the premier investmentready locations in the UK. The three-day-long programme, which includes one-on-one meetings with key decision makers and influencers, will be launched on Tuesday, March 10, with briefings by the chief executive of Leeds City Council, Tom Riordan and councillor James Newman, chair of Sheffield City Region, exploring the connected ambition of the two city regions. The programme also sees the launch of Leeds City Region’s six big investment-ready packages, including Europe’s largest city-centre development opportunity. Activity will then focus OP IMMO MIP15 216x137 HD.pdf
warehouses in Germany totalling 400,000 sq m for its European logistics company Logicor. It bought the properties from TREI Real Estate, the real estate management and development company of the Tengelmann Group. The 10 warehouse properties are located in logistics markets close to major urban centres, including Dusseldorf, Munich, Berlin and Frankfurt. The properties are leased to tenants including Netto MarkenDiscount, Kaiser’s Tengelmann, Hellmann Worldwide Logistics and Logicor’s Mo Barzegar Schenker Deutschland. This transaction is the sixth portfolio acquired in Germany over the past year and increases Logicor’s overall Germany portfolio to one million sq m. Mo Barzegar, CEO and president of Logicor, said: “This acquisition was an opportunity to acquire a substantial portfolio in Europe’s largest logistics market. We now have a significant footprint in Germany with 28 assets leased to a broad mix of retail, third-party logistics and manufacturing customers.”
on maximising the potential of transport hubs including York Central, a HS2 station on Leeds South Bank and the developments around Leeds Station — including the new southern entrance, which will improve access to sites around Holbeck and Leeds Dock. There will be a panel discussion featuring leaders of five core northern cities on investing in the future. The breakfast debate is organised by Leeds City Region in partnership with Manchester, Liverpool, Newcastle and Sheffield and will feature city leaders, including Manchester City Council’s Sir Howard Bernstein, Liverpool City Council’s Ged Fitzgerald, Leeds City Region Enterprise Partnership’s Roger Marsh, Sheffield City Council’s John Mothersole, and Newcastle City Council’s Pat05/02/15 Ritchie.11:25 1
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mipim
NEWS Fresh shopping experience in store for new Dubai airport
L
ESLIE Jones Architects comes to MIPIM to showcase its latest project —masterplanning the retail and commercial strategy for the new Dubai International Airport. “Our philosophy for the project recognises that shopping in an
airport is different to shopping in a shopping centre,” said Simon Scott, Leslie Jones Architecture’s head of international business. “It’s a completely different environment. Our designs will create a synergy between the travel experience and the shopping experience.”
The future Al Maktoum International Airport is scheduled to open in 2022. The airport looks to transit 12 m illion tonnes of cargo and 160 million passengers a year. The airport is part of Dubai World Central, a heavyweight economic zone currently under
construction on an area of 140 sq km. Leslie Jones is at MIPIM as part of its strategy to broaden its international presence. Managing director James Cons said: “We come to MIPIM regularly. It’s essential. It’s the place where you touch base with clients and potential clients, now especially as the practice is looking for international opportunities. It’s also a window on design trends — the place where you can both promote your ideas and learn at the same time.”
Dubai’s new Al Maktoum International Airport is likely to be the busiest in the world
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Thursday 12 March
noon Awards Gallery, Palais - 1
ENJOY a red carpet entrance & cocktail party
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Thursday 12 March
Thursday 12 March
18.15 > 19.00 Grand Auditorium Foyer, Palais 1
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19.00 > 20.00 Grand Auditorium, Palais 1
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VOTE
04/03/2015 13:52
mipim
NEWS
Sub-Saharan Africa opens Instability equals opportunity NVESTORS in European events in the short term. Conits doors to development real estate should sharpen sequently, investors need to
S
UB-SAHARAN Africa’s vast potential is finally being recognised by the global financial community and MIPIM will be showcasing a number of new developments that are set to play a part in transforming the regional economy. In South Africa, Tongaat Hulett has planned and developed more than 2,000 ha of serviced land for residential, commercial, industrial, resor t and mixed-use purposes. And the concept of sustainability is being taken to a new level with its 855 ha Sibaya development near Durban. The holistic vision for Sibaya includes conservation and recreation areas, resort and eco-tourism activities with at least five boutique hotels, entertainment, compact commercial and retail zones, and residential 195_RIGA_N1_PIM
units ranging from high-density apartments to low-density single homes. In oil-rich Angola the Cabinda Province is emerging as another development node, with a major new port planned for Porto Caio, 9 km north of Cabinda City. “The port will not be a standalone development,” said Brian Frugal, CEO of developer Caiporto. “Over time, it will form part of the wider network of transport infrastructure that will transform trade logistics and act as a gateway to the new Futila Industrial Park, making exports significantly easier and more cost-effective.” A MIPIM conference session on Wednesday, March 11, sponsored by Eko Atlantic, will ask whether Sub-Saharan Africa is the missing piece of your investment puzzle.
I
their focus on the growing range of macro risk factors impacting on the region to take advantage of market growth potential, according to Cushman & Wakefield. Political instability dominates an increasingly complex risk landscape in the European region, the firm said, with the recent events in Paris, conflict in Ukraine, unexpected policy decisions in Switzerland, strains among the EU partners over monetary policy, a new party taking parliamentary power in Greece and rising pressure from extreme political factions in a range of countries throughout Europe. With 2015 elections coming in the UK, Spain, Portugal, Poland, Denmark, Finland and Turkey, politics is clearly going to remain at the forefront of 200_BITARGIL_N1_PIM
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develop appropriate strategies to minimise risk and position themselves for the opportunities that will emerge, according to the firm’s Capital Views: Risk Versus Opportunity report. Growth in the opening quarter looks set to remain low and volatile, but beyond that a modest improvement should be seen based on factors that are now in play, the report said. Quantitative easing will ensure greater liquidity and low borrowing costs and, alongside measures taken to bolster the banking sector, should ensure a greater supply of finance to support investment and growth. Lower commodity prices and deflation is set to reduce operating costs and add to purchasing power, while exporters are expected to benefit from the weaker euro.
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Pendant le MIPIM® le magazine Business Immo est diffusé dans les plus grands hôtels de Cannes !
3.14, Radisson Blu, Carlton, Croisette Beach, Cristal, Gray d’Albion, Le Grand Hôtel, Majestic, Mariott, Martinez, Novotel, Park & Suite, Resideal……...
Connecting Real Estate
Le magazine sera aussi : • dans l’allée centrale (niveau 1 / allée 9) • dans les racks presse du salon
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05/03/2015 16:17
mipim
NEWS
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Grand Besancon invests in science and culture
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HE FRENCH region of Grand Besancon is at MIPIM to promote real estate opportunities in the area designed to complement its established industr ies including microtechnologies, watchmaking and medical engineering. The economic strategy focuses on three priorities: supporting entrepreneurs; promoting R&D and innovation; and developing the property, land and infrastructure for companies. The local authority is backing a number of proposed projects, including a tram system linking residential areas with business regions, an 11,000 sq m Arts & Culture Centre, built by Japanese architect Kengo Kuma, to house the Regional Music Conservatoire
TURKEY AT MIPIM 2015
and Regional Contemporary Arts Centre, plus a service park located 400m from the new TGV station. Close to 100,000 sq m of real estate is planned on this site. Temis Sciences will include high-tech buildings for research institute Femto-ST (Franche-Comte electronic, mechanical, thermal and optical engineering, science and technology). The result will be one of the largest public research laboratories that specialises in microtechnology and nanotechnology. The Besancon Observatory is also due for refurbishment, after which it will house the telescope, the archives of the Observatory and the University, a showroom and will include a meeting place for businesses linked to watchmaking.
Tuesday, March 10, 2015
11:00-11:45 DOING BUSINESS IN TURKEY Turkey Pavilion
Speakers
Serkan Gül - Partner, Hergüner Bilgen Özeke Attorney Partnership Henry H. G. Morris - Director, Amstar
14:15-14:45 SPOTLIGHTS ON İSTANBUL: A CITY WITH A WIDE RANGE İstanbul Tent
OF PROJECTS WITH TREMENDOUS GROWTH OPPORTUNITIES Moderator Speaker
Sadi Özdemir - Economy News Editor, Hürriyet Newspaper İbrahim Çağlar - President of the Executive Board,
Co-Organiser:
İstanbul Chamber of Commerce
15:30-16:00 INVEST IN TURKEY Turkey Pavilion
Speaker
Co-Organiser:
Arda Ermut - Vice President, Republic of Turkey Prime
Ministry Investment Support and Promotion Agency (ISPAT)
Wednesday, March 11, 2015
09:30-10:30 DISCOVER İSTANBUL: Blue Room
THE CAPITAL OF FINANCE, POTENTIAL AND CULTURE
Speakers
İbrahim Çağlar - President of the Executive Board,
Co-Organiser
İstanbul Chamber of Commerce
T. Fırat Kasapoğlu - President of YEKON (Creative Industries Council)
11:00-11:45 CONTEMPORARY TURKISH ARCHITECTURE: Turkey Pavilion
POTENTIAL AND LIMITS IN GLOBAL SCALE Moderator Speakers
Ph.D. Celal Abdi Güzer - Architect, Middle East Technical University M.Arch. Murat Kader - Senior Partner, iki design group Enis Öncüoğlu - Architect, Chairman of the Board, Öncüoğlu + ACP Melkan Tabanlıoğlu - Architect, Partner, Tabanlıoğlu Architect
Co-Organiser
11:45-12:15 TIME TO INVEST IN BALIKESİR Turkey Pavilion
Speaker
Özlem Toplu - International Relations Manager, Balıkesir Metropolitan Municipality
14:15-15:00 BEYOĞLU, THE HEART OF İSTANBUL, WITH THE SPLENDORS OF PAST İstanbul Tent
AND INCREASING VALUE OF FUTURE INVESTMENT!
Opening Remarks Ahmet Misbah Demircan - Mayor of Beyoğlu Municipality Moderator Ali Çağatay - News Coordinator, Bloomberg HT Speakers Alaeddin Babaoğlu - CEO, President, Amplio Real Estate Investments Assoc. Prof. Feyzullah Yetgin - Board Member, Calik Reic Kaan Yücel - General Manager, Piyalepasa Real Estate Development
15:00-15:30 INVEST IN ANTALYA, THE CITY OF 13.000.000 VISITORS! Turkey Pavilion
Opening Remarks Menderes Türel - Mayor of Antalya Metropolitan Municipality
Co-Organiser
Thursday, March 12, 2015
10:00-10:45 TURKEY THE PLACE TO BE: PERSPECTIVE AND OPPORTUNITIES Turkey Pavilion
Moderator Speakers
Makbule Yönel Maya - General Manager, TSKB Real Estate Appraisal Company Ali Alp - TOBB University of Economics and Technology, Board Member, Özak GYO Alpay Çepni - Executive Board Member, Vadistanbul
11:00-11:45 A NEW INVESTMENT TOOL: TURKISH REIF Turkey Pavilion
RUGBY club Wasps has sent England internationals Chris Bell (left) and Joe Launchbury (right) to MIPIM to help promote Coventry and Warwickshire. The duo will be at a networking event on Thursday, March 12, 15.30-16.30, and will take part in a quiz session with figures from the property industry in the style of TV show Question Of Sport. Les Ratcliffe (pictured centre), head of community relations at Wasps sponsor Jaguar Land Rover and chair of the Place Board which helps promote the area, said: “Wasps chose to invest in the area because they saw the potential for their business and felt the assets which exist in Coventry and Warwickshire could help them thrive. That is the message we want to put out to the whole industry.”
Moderator Speakers
Mehmet Ali Ergin - Managing Partner, ENSpd Ersun Bayraktaroğlu - Turkey Real Estate Industry Leader, PwC Dr. M. Emre Çamlıbel - CEO, Soyak Haluk Sur - Chairman, Cushman & Wakefield Turkey Gürler Ünlü - Chairman, Center for Strategic Thinking in Real Estate (GISP)
Co-Organiser
14:00-14:45 HOTELS AND TOURISM IN TURKEY: Turkey Pavilion
WHAT’S A HEAD FOR INVESTORS? Moderator Speakers
Firuz Soyuer - Managing Partner, DTZ Pamir & Soyuer Ayla Heyfegil - Managing Partner, Servotel Corporation Murat Yılmaz - Senior Director - Acquisitions & Development EAME, Starwood Hotels
15:00-15:45 REAL ESTATE MARKET IS REGENERATING, TURKEY: Turkey Pavilion PUBLIC-SPONSORED URBAN REGENERATION A CITY IS REGENERATING, İSTANBUL:
Co-Organiser Urban renewal center
GAZİOSMANPAŞA CITY URBAN REGENERATION MASTER PLAN
Opening Remarks Hasan Tahsin Usta - Mayor of Gaziosmanpaşa Municipality Speaker Cem Yılmaz - Urban Planner, Msc. Managing Partner, KEYM (Urban Renewal Center)
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mipim
NEWS East-west capital flow driven by need to balance risk and reward
T
HE MOVEMENT of capital from east to west is likely to remain the major influence on property markets in 2015, according to Global Emerging Trends In Real Estate 2015, an annual forecast of global investor sentiment published jointly by PwC and the Urban Land Institute (ULI). Local money coming out of China and South Korea is set to continue to seek a home in international markets, and is to be supplemented in the years to come by pension-fund capital from Japan. As much as 84% of the Asia-Pacific investors surveyed said they expected crossborder capital into Europe to increase. Another reason for the weight of capital moving from east to west
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is the so-called ‘flight to safety’, which is leading many investors to deploy capital in what they consider to be safe markets. The report finds that money currently being directed at major assets in the UK and US is likely to find its way to other, less high-profile cities in Germany, France and the US. Simon Hardwick, PwC partner and one of the report’s authors, said: “There is still a wall of capital targeting real estate opportunities in many markets across the globe. The search for better yields has taken some investors into development and secondary markets, moving them up the risk curve. But investors must strike a balance between the need to deploy capital and the ability to achieve good returns at a time
when there is such a difference in the economic conditions across the globe.” The report, based on the views of senior global property investors, also reveals that many investors are paying greater heed to the long-term impact of megatrends, such as urbanisation, demographic change and technology. Over three quarters of the real estate investors surveyed believe that demographic and social change will have a moderate or large impact on their business decisions in the coming years. Hardwick added: “Investors in major global cities such as London need to take account of the impact of megatrends. London, like other gateway cities, needs to absorb large population increases and demographic
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59
PwC’s Simon Hardwick: “There is still a wall of capital targeting real estate opportunities”
change, and adapt to that change quickly if it is to continue to thrive. The most successful global real estate investors will be the ones who recognise and adapt to these changes.” PwC and ULI will present the findings of the research at a panel discussion in the Red Room today at 17.30.
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FREE HOTEL SHUTTLE SCHEDULE MIPIM is delighted to offer to its participants free shuttle from hotels located outside Cannes to the Palais des Festivals. Mandelieu - La Napoule Cannes la Bocca Le Cannet Juan-les-Pins Sophia Antipolis
Pick-up point
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FEATURE FOCUS ON JAPAN
Photo: shirophoto /iStock
Earthquake tragedy injects urgency into Japan’s Smart Cities project Paul Strohm reports on how the Smart Cities project has progressed since the terrible events of March 2011
O
2011, Friday, March 11, participants reacted with horror as the news flow gathered momentum to reveal the full extent of the damage done and lives lost as a result of an earthquake and consequent tsunami that had occurred in Japan that morning. The horror did not stop then of course. In the following weeks and months attention switched to the earthquake-damaged nuclear power plant at Fukushima where a major radiation leak seemed unstoppable. Those events had revealed a vulnerability and this gave even greater weight and poignancy to the objectives encapsulated in a nationwide real estate-based project that was already under way called Smart Cities. Originally conceived to address the problems surrounding rapid urbanisation, smart cities’ aims have widened to provide sustainable growth and healthy economic activity that reduces the burden placed on the environment, at the same time improving quality of life for residents.
ushu, Kashiwanoha and Funabashi Morino. Kashiwanoha occupies 273 ha on the north eastern outskirts of the Tokyo conurbation in the Chiba Prefecture. Property company Mitsui Fudosan is developing elements of the city including the mixed-use Gate Square central area where a new battery system became operational in January enabling districts to share from sources such as solar panels and batteries while being disaster-ready. The system is forecast to cut peak power consumption by about 26%. Also in Chiba Prefecture, Funabashi Morino City is being undertaken by Mitsubishi Corporation and Nomura Real Estate at Funabashi City on the site of a former Asahi Glass factory. The 17.7ha site will provide 1,497 apartments, 42 detached houses, a large shopping centre, supermarket, hospital and childcare facilities. This project also exploits advanced environmental technology and ICT in order to make sensible use of space and energy. Funabashi Morino won a World Smart Cities Award in 2013.
A need for new forms of social infrastructure — notably energy supply, water provision, buildings themselves, transportation and communications — had been identified along with the clear need to reduce CO2 emissions by adopting renewable energy sources such as solar and wind power. The country also needed fully to exploit information and communications technology and innovations such as electric vehicles that can be recharged at home but whose batteries could, ingeniously, be used to provide power to the grid in an emergency. These concepts are being put to the test in smart cities under development at Yokohama, Toyota, Keihanna (Kyoto) and Kitaky-
The City of Kitakyushu, located in the Kyushu region of southern Japan, has grown around the Yawata Steel Works. Smart City experiments here focus on a 1.2 sq km area where a variety of new energy distribution infrastructure is being developed, including natural gas cogeneration and distribution via the steelworks’ transmission network. Other initiatives include preparation for the largescale introduction of next-generation vehicles and their linkage with public transport. But one key ingredient has been the establishment of a customer energy management system, which helps both citizens and businesses to monitor their energy use. Smart metres have been installed in 225 homes.
N THE last day of MIPIM
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A need for new forms of social infrastructure had been identified along with the need to reduce CO2 emissions Countdown to MIPIM Japan WITH three months to go to the inaugural MIPIM Japan in Tokyo, 23 major Japanese companies, including the country’s three largest real estate developers — Mitsui Fudosan, Mori Building, and Mori Trust — have confirmed their participation as sponsors/ exhibitors. Major international bodies such as the Organisation for Economic Co-operation and Development (OECD) and the Royal Institution of Chartered Surveyors (RICS) will also be represented among the 2,000 delegates, setting the stage for the launch of the region’s premier real estate event in one of the world’s hottest property markets. During two days of expert-led conferences, targeted networking events, and exhibitions at the Prince Park Hotel Tokyo on May 20 and 21, MIPIM Japan will provide a forum for Japanese real estate professionals to share their projects and expertise with the world and for international stakeholders to source capital or new opportunities in Japan.
株式会社 山下ピー・エム・コンサルタンツ
Yamashita PM Consultants
PROJECT/CONSTRUCTION MANAGEMENT CONSULTING
JAPAN PAVILION
JAPAN PAVILION
STAND R7.G13
EVENTS TUESDAY 10 MARCH
WEDNESDAY 11 MARCH
NETWORKING WORKSHOP ATTRACTIVENESS OF THE JAPANESE MARKET 11.00 - 12.00 ■ Mitsui Fudosan ■ Mitsubishi Estates
NETWORKING WORKSHOP SMART CITY 9.30 - 10.30 ■ Nomura Real Estate Development ■ Mitsui Fudosan ■ Hitachi ■ Panasonic
JAPAN PAVILION OPENING PARTY 12.00 - 13.00 NETWORKING WORKSHOP DEVELOPMENT OF THE JAPANESE MARKET 15.00 - 15.30 ■ Tokyu Fudosan NETWORKING WORKSHOP PRESENTATION OF CITY OF OSAKA 16.30 - 18.00 ■ City of Osaka ■ Umeda Area Management Alliance SUSHI PARTY 16.30 - 18.00 NETWORKING WORKSHOP TRANSPORTATION AND THE CITY 18.00 - 18.45 ■ JR East ■ Odakyu Electric Railway
NETWORKING WORKSHOP SUSTAINABLE URBAN DEVELOPMENTS IN JAPAN 11.00 - 12.00 ■ Nihon Sekkei ■ Nikken Sekkei SUSHI PARTY 12.00 - 13.00 NETWORKING WORKSHOP JAPAN HOUSING SESSION 15.00 - 16.00 ■ Sekisui House NETWORKING WORKSHOP ATTRACTIVENESS OF TOKYO 16.30 - 17.30 ■ City of Tokyo
THURSDAY 12 MARCH SUSHI PARTY 11.00 - 12.00 NETWORKING WORKSHOP INVEST IN JAPAN Creating New Value for the Economy and Society 11.30 - 12.00 ■ The Japan MLIT (Ministry of Land, Infrastructure, Transport and Tourism) NETWORKING WORKSHOP OVERVIEW OF THE CURRENT JAPANESE REAL ESTATE INVESTMENT MARKET 15.00 - 16.00 ■ Nomura Real Estate Asset Management NETWORKING WORKSHOP PRESENTATION OF CITY OF NAGOYA 16.30 - 17.00 ■ City of Nagoya
NETWORKING WORKSHOP HOTEL & RESORT IN URBAN DEVELOPMENT 17.45 - 18.30 ■ Mori Trust ■ Seibu Properties
TOKYO METROPOLITAN GOVERNMENT
YOKOHAMA CITY
FUKUOKA CITY
NAGOYA CITY OSAKA CITY Umeda
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MESSAGE FROM YOICHI MASUZOE, GOVERNOR OF TOKYO
Greetings Hello. Konnichiwa. Bonjour. I am Yoichi Masuzoe, the Governor of Tokyo. Tokyo is very honored and pleased by this great opportunity to exhibit at MIPIM, an event gathering urban development professionals from around the world. We have only five years to go before 2020, the year Tokyo hosts the Olympic and Paralympic Games. We are thus dedicating our efforts to prepare for the successful delivery of the Games. These include building the competition venues, implementing disaster control and counterterrorism measures, and extending hospitality to the visitors. However, 2020 is not our final goal. It is a passage point to the future. I wish to use the Olympic and Paralympic Games as a springboard to achieve my final goal of making Tokyo the world’s best city — a city that provides everyone with a wonderful environment for living and business. To achieve this, the Olympic and Paralympic legacies will be integrated with the sustainable development of the city. We will also surge ahead with bold deregulations for urban development; the building of infrastructure such as the ring roads; and expansion of Haneda Airport capacity and improvement of airport access. I also wish to make Tokyo a global financial center that aligns with London and New York. We will create international business hubs where initiatives will be taken to vitalize interaction between companies and investors, and to host and attract international financial conferences. Along with such efforts, we will work to build an environment where it is easier for foreign companies and individuals to invest and do business in Tokyo. To this end, it would be essential to provide information in multiple languages and improve the living environment for international residents. Please take the time today to observe how Tokyo is striving to become a global business city. And two months from now, in May, MIPIM JAPAN will be held in Tokyo. I hope you will visit our city then and see how Tokyo is taking the opportunity presented by the Olympic and Paralympic Games to grow to further heights. Please join us in our urban development efforts. Thank you. Yoichi Masuzoe Governor of Tokyo
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FEATURE THE DIGITAL REVOLUTION
The cases for disruption Digital technology is disrupting all sectors of business, but in real estate its implications are particularly far-reaching, writes Liz Morrell
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HIS MIPIM you can help decide who real estate’s real digital disruptors are at an interactive panel session that includes elements of Dragon’s Den, aka Shark Tank in the US. Digital Economy Challenges Real Estate Sector: Disruptors At The Door takes place on March 11 from 15.00 to 16.30 the Grand Auditorium. While no cash will change hands, the session offers the opportunity to witness first hand the next-generation innovation that is set to disrupt the real estate market. Eight innovators will each have three minutes to pitch their business and then answer three questions from a panel of experts. The audience and experts will then judge which idea is potentially the biggest digital disruptor. Chris Marlin, president of Lennar International and sponsor of the session, says that it is time for real estate leaders to “strap in, buckle up and get ready for the wildest of wild rides”. He adds: “All of us in real estate, regardless of asset class or category, will be transformed by digital innovation in the coming years.” According to Marlin, Disruptors At The Door promises to deliver the unexpected. “It will not only be hypercompetitive, but it will also be informative and dynamic because the format of this session ensures lively, anxious, unscripted moments that are sure to inform and entertain,” he says.
Samuli Siren, managing director of Redstone Digital, is one of the expert panelists who will be judging the innovators. “The digital change is affecting all business sectors. Many see this as a threat but, by playing smart, it can be turned into a huge opportunity. In real estate, the change is just about to start,” he says. Another ‘disruptor’ is Henry Stuart, co-founder and managing director of Visualise, a business that allows users to put on a virtual-reality (VR) headset and look down on a property as if it were a dolls’ house. “They can lean in to peer in the windows, or use their hands to move the model and choose a room to go inside,” he says. “The real estate industry is ready to embrace this technology. There is a huge need for accurate and honest visualisation to inform clients of potential properties. VR can also be used in the planning and design stage of developments.” Simon Henry, co-founder and co-CEO of Juwai.com, a publishing platform that aims to provide the knowledge businesses require to break into the Chinese market, will also be on stage. “Juwai is all about empowering agents and developers around the world to reach Chi-
Strap in, buckle up and get ready for the wildest of wild rides Chris Marlin nese buyers by opening brand new markets and opportunities that were previously out of the reach of most global agents and developers,” Henry says. The industry should not be afraid of change, he adds: “Real estate has always been about people and will continue to be so. Disruption provides new tools and products to make the world a better place.” Renaud Prouveur, chairman and CEO of Spallian, is another expert panelist. His decision-making mapping solution will allow the real estate industry to adopt a territorial intelligence strategy to identify market potential. “Using new technology provides reliable, accurate and fast information, which is the key to success in a market as changeable and complex as real estate,” he says.
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FEATURE FOCUS ON THE UK
Upcoming elections unlikely to impact on real estate in the UK Damian Wild, editor, Estates Gazette, predicts what might happen in the UK market in 2015
Here are five predictions for the year ahead: 1. Politics will distract, but only to a degree. The general election won’t have the same impact as the Scottish referendum had last year — where in some markets investment dried up between April and September. But anyone inclined to delay a decision in the first half of the year will find a ready-made excuse to do so. Meanwhile most in property are more relaxed privately than they maintain in public. A mansion tax (a policy proposed by the Labour party to tax homes worth over £2m) may well have less impact after it has passed through civil servants’ hands, for instance. But what everyone wants is certainty. If the first general election in May is inconclusive, a second general election in 2015 would be a disaster. 2. It’s hard to see investment matching the heights of last year: yields may compress a little further but in most submarkets they will begin to move out again. There’s room for rental growth, though. As John Burns of Derwent London said last month: “Overall we see scant evidence so far of a commercial property slowdown in London and we expect to see rental growth at least maintained at 6-8% across the portfolio, and investment yields to remain firm in 2015.” 3. London’s success has priced out many, especially domestic, investors. First-tier regional cities such as Manchester are looking expensive too. 2015 might be the year that second-tier cities recover lost ground.
Overall we see scant evidence so far of a commercial property slowdown in London John Burns 4. Devolution demands will accelerate. Scotland led the way. Manchester has secured a deal in return for delivering an elected mayor. But what of other major cities? I sense a political backlash. The mostly Labour leaders of many UK core cities have gone quiet. But Birmingham council leader Sir Albert Bore spoke out recently, saying: “The announcement last week that the Greater Manchester councils will jointly control health and social care services with the NHS from 2016 is a major breakthrough. We need to look to ourselves and our partners and say ‘we can do that too’.” Delivery may take some time. 5. Perhaps the ongoing property backlash will have the most impact. Activists are queuing up to criticise supposedly rapacious developers, keen to deliver profit at any societal cost. Property needs be confronting that argument more forcefully. The British Property Federation manifesto, launched at MIPIM, is a good start. But it needs to be built upon. And for the property industry that will involve straying into unfamiliar, often uncomfortable, territory. • If you can bring yourself to think about life after MIPIM just yet, these and other issues will be discussed at MIPIM UK in October
Countdown to MIPIM UK MIPIM UK takes place at Olympia London from 21-23 October 2015. Delegate numbers are on target to exceed the 4,000 who attended the inaugural event and half of the exhibition space has already been reserved mostly by returning exhibitors.
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Photo: ultraforma /iStock
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IPIM: the annual health check for the property industry. And for the UK contingent at least the results are good enough to satisfy even the most censorious doctor. Most welcome of all is the fact that while London continues to be in rude health, the UK’s big cities are all fighting fit too. Take Birmingham, for example. A market that has lost ground to its great rival Manchester in the last decade, it moved up 14 places to sixth in the latest ULI/PwC Emerging Trends in Real Estate rankings. It’s the most investable city in the UK, the influential report found. But before we all get carried away consider the health-threatening factors outside of real estate’s direct control: terrorism and tumbling oil prices perhaps chief among them.
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Landmark on the waterfront Spectacular architecture and a unique mix of residential, office, and leisure space: In cooperation with STRABAG Real Estate, ECE is currently building the project “Intelligent Quarters” next to the new HafenCity University, in the center of Hamburg’s HafenCity. A landmark will be a 70-meter office building at the waterfront – with a fascinating panoramic view across the city of Hamburg. Moreover, two further buildings will be constructed; these will contain 46 apartments, further office space, restaurants, and retailers on the ground floor. The quarter will be completed in summer 2017. Shopping | Office | Traffic | Industries ECE Projektmanagement G.m.b.H. & Co. KG Heegbarg 30, 22391 Hamburg, Germany Phone: +49 (0)40 60606-0, Fax: +49 (0)40 60606-6230 www.ece.com, info@ece.com
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