MIPIM 2015 Preview Magazine by RX REAL ESTATE SHOWS

FEBRUARY 2015

mipim

www.mipim.com The official MIPIM magazine

PREVIEW DIGITAL OPPORTUNITY

DEVELOPMENT

Also inside:

New technology is transforming the way the real estate industry operates

MIPIM 2015 showcases real estate projects from around the world

SEE PAGE 42

SEE PAGE 26

Special reports on cities, ofﬁces, logistics, retail, alternative assets, residential and hotels

FALL 2015

Marstall, Ludwigsburg

Holsten-Galerie, Neum端nster

SPRING 2015

FALL 2015

Zielone Arkardy, Bydgoszcz

Aquis Plaza, Aachen

K in Lautern, Kaiserslautern

Always something happening ECE will celebrate five grand openings this year. K in Lautern in Kaiserslautern, Marstall in Ludwigsburg, Aquis Plaza in Aachen, Holsten-Galerie in Neum端nster, and Zielone Arkady in Bydgoszcz will soon fascinate thier visitors with premium retailers and diverse restaurant concepts. Every center is unique with an individual architectural design, a seamless integration into its urban environment, as well as a tailored branch and tenant mix. The work on the construction sites has reached the final stage and only a few of the attractive rental spaces are still available. Many new and exciting shopping centers throughout Europe are already under construction or in the planning stage.

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

Editorial WELCOME to the MIPIM 2015 Preview magazine. In this issue we showcase the major new projects that will be presented during MIPIM, look at the growth in the hospitality sector, discuss the challenges facing European cities, turn the spotlight on alternative assets and identify new office hotspots. And you can learn more about the MIPIM Awards finalists before voting for your choices in Cannes next month. One of MIPIM’s main goals is to keep you ahead of the new trends that will impact your business. So this year the digital revolution, that is starting to impact real estate, is at the heart of our conference programme. We’ll be examining how real-estate companies can best use Big and Open Data, how the development of crowdfunding and the sharing economy is having an impact on financing new developments or asset acquisitions and what’s new in the field of smart cities. In the exhibition halls, MIPIM 2015 will see a dedicated zone for Industrial & Logistics as well as for Hotel, Tourism and Leisure and a significant increase in the size of the US and Canada Pavilions. We have also expanded the popular MIPIM Innovation Forum that will continue to be the focal point to discover solutions and practices that are impacting cities’ planning as well as buildings’ conception and use. In addition, we’ve added stands, networking facilities and a pitching zone for architects — the men and women who are often at the forefront of innovation. With over 21,000 delegates, including some 4,500 investors, expected in Cannes in March, we’re looking forward to hosting the largest annual gathering of the international real-estate industry. I hope you will be with us in Cannes and until then, enjoy this MIPIM Preview magazine. Best regards Filippo Rean Director of the Real Estate Division MIPIM & MAPIC markets

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Contents 6

News

Focus

Berlin mayor pledges continuity, Czech Republic is the ‘business smart choice’, Marseille on track

Development

A selection of the diverse range of real-estate projects showcased at MIPIM 2015

Special reports on cities, ofﬁces, logistics, retail, alternative assets, residential and hotels

101

Awards The 2015 MIPIM Awards drew a diverse set of entries from around the globe. Which projects have been shortlisted?

Interviews Keynote speakers from across the world of real estate will be sharing their insights, views and vision at MIPIM 2015

Digital Opportunity

New technology is transforming the way the real-estate industry operates, but the best is yet to come

Also inside : 109 Tips & services preview magazine I February 2015 I www.mipim.com

112 Conferences

News Berlin will not sacriﬁce its past for its future, Mueller pledges BERLIN’s new governing mayor, Michael Mueller, has put his weight behind the city’s promotional campaign at MIPIM 2015. “Berlin is currently one of the most exciting cities, not just as far as culture and joie de vivre are concerned, but it is also the second-most popular location for start-ups after London,” he said. And although he expects Berlin’s presence at MIPIM to attract new development, he has pledged that this will be done with sensitivity to the city’s heritage. “Despite all the good news about the continued positive economic development in this growing city, we still have to protect the famous Berlin blend of working and living in the same

neighbourhood,” he said. “After all, this diversity is vital for Berlin and is what makes our city so unique. That’s why our urban development policy must provide housing for people from all walks of life, both in existing buildings and in the important area of new housing. This will be one of the key tasks for my administration, in addition to stabilising economic success.” Just as in previous years, MIPIM will provide valuable insight into the key trends and developments in Europe’s real estate markets. Mueller concluded that the knowledge gained in Cannes would help to position Berlin advantageously among competing cities and to develop it still further.

Governing Mayor of Berlin Michael Mueller

Paris in vogue for Middle East and Asian investors THE PARIS Region has become a gateway city for Asian and Middle Eastern investors. In 2013, these two source areas both invested between $10bn and $12bn outside their respective regions. In the ﬁrst half of 2014, $5.4bn was invested by the Chinese — a 25% increase on the same period in 2013. Consultant JLL forecasts that the Chinese will have invested over $10bn in international markets over the course of 2014. The Chinese began investing in Paris over two years ago. Around 15 significant office and hotel transactions have now been carried out, including the acquisition of the Paris Mariott Hotel on the Champs-Elysees by a Chinese group via its Hong Kong-based holding company. “Asian institutions such as sovereign wealth funds and insurance companies are using real estate as an asset class. They are targeting Paris by selecting core or core-plus risk profiles with

large unit sizes, generally between €150m and €200m as a minimum,” said Alexandra Yinying Li, head of Asia business development and investor relations at JLL.

Chinese conglomerates and developers are targeting the Greater Paris region in particular as they search for large-scale, mixed-use development opportunities. According to Francois Blin, head of international investment at JLL’s capital markets team, since 2012 Middle Eastern investors have accounted for an average of 28% of overall real estate investment (ofﬁces, retail, industrial and logistics) in the Greater Paris region. “One of the largest transactions of 2014 was carried out by the Olayan family with Risanamento’s disposal of €1.3bn of assets,” Blin added. Asian investors account for over a quarter of capital investments in the French hotel sector. Asian investors have invested €900m since 2008 and have been behind many of the hotel transactions that have taken place in Paris and its inner suburbs.

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Paris on show at MIPIM

News NEWS IN BRIEF

Al Zahia and The Wave set new standards for Majid Al Futtaim

Q AXA REAL ESTATE LEADS WAY BACK TO SOUTHERN EUROPE AXA Real Estate Investment Managers has bought two assets in Madrid and Rome for €114m for AXA Selectiv’ Immo, a French real estate collective investment undertaking, or OPCI (Organisme de Placement Collectif en Immobilier). The expenditure comprises 100% of 223 Via Paolo di Dono, an office building in Rome, and a 50% stake in 37 Gran Via, a retail asset in Madrid that was acquired in a joint venture with a French pension fund. This is the third time in the last 12 months that AXA Selectiv’ Immo has invested outside France, in line with its core strategy to acquire diverse assets across the European market, including offices, retail, logistics, hotels and healthcare. Via Paolo di Dono 223 is a sevenstorey 16,580-sq m office property that had a €10m renovation in 2009 to upgrade both its interior and exterior. Gran Via 37 is a 4,500sq m, five-storey retail asset with an energy performance certificate of B. Nathalie Charles, regional head of asset management and transactions for southern Europe at AXA Real Estate, said: “Having been a first mover back into the southern European markets of Italy and Spain in mid-2013, these acquisitions illustrate AXA Real Estate’s ability to utilise its local presence to acquire high-quality, well-located assets in these markets.”

Al Zahia in Sharjah

The Wave, Muscat

MIPIM regular Dubai-based Majid Al Futtaim Group is one of the leading shopping mall, retail and leisure developers in the Middle East and North Africa. Often working with other assetcategory units under the banner of Majid Al Futtaim Properties, the developer’s projects are generally developed in joint ventures with national, international and regional institutions, making a solid contribution to the relevant local marketplace. Majid Al Futtaim will be showcasing some of its latest large-scale, upmarket developments from across the region, including Al Zahia in Sharjah. The development is set to diversify the emirate’s real estate sector, being its ﬁrst fully integrated residential community. Close to Sharjah International Airport, the project has 2,400 residential units, ranging from studios and one- and two-bedroom apartments to three-, four- and ﬁve-bedroom villas and townhouses, plus some commercial units. Al Zahia, which consists of seven phases to be completed by 2018, is developed by

Sharjah Holding, a partnership between the government of Sharjah and Majid Al Futtaim Properties. Also on show will be The Wave Muscat, Oman’s ﬁrst integrated tourism complex that provides for the foreign ownership of property. Located on a 6 km ocean front site, the development includes 4,000 properties, hotels, retail and dining precincts, a 400-berth marina and a Greg Norman-designed golf course. The next phase will include an educational precinct, entertainment facility, a marina, a beachfront and a golf-course hotel, alongside expanded residential opportunities. The Wave Muscat is a joint venture between the government of Oman and Majid Al Futtaim.

Cardiff gives regeneration plans the model treatment CARDIFF in Wales — the closest capital city to London — is set to bring its 33-sq m city model to MIPIM 2015 as part of a brand new stand location in the Riviera Hall. The model highlights the key regeneration areas within the Welsh capital, such as the 40 ha Cardiff International Sports Village, the media village in Porth Teigr, the 92,000-sq m Central Square ofﬁce development led by Rightacres Property, and the 65,000-sq m Capital Quarter mixed-use development.

Cardiff’s 67 ha city-centre Enterprise Zone, meanwhile, is becoming a hub for blue-chip businesses, including Centrica, Deloitte, Lloyds Bank and BT. Admiral Insurance has also moved to a new 20,439-sq m headquarters in the Enterprise Zone and the building’s freehold has been acquired by Union Investment Real Estate, one of Germany’s largest property funds.

The UK’s Cardiff city comes under the spolight at MIPIM

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News NEWS IN BRIEF

Q AERIUM SELLS FRENCH ASSETS

Czech Republic is ‘the businesssmart choice’ says sponsor CTP CTPark Prague East

EUROPEAN real estate fund manager Aerium has sold four commercial properties in France to three separate buyers for a combined value of €115m on behalf of two Aerium funds, Aerium Cardinal Properties and Aerium Opportunity Fund I. The four properties have a total ofﬁce space of 48,500 sq m. One is located in St Quentin in northern France, while the other three are centrally located in Lyon’s Part-Dieu area. Aerium, headquartered in Luxembourg, is a pan-European real estate investment manager (REIM) specialising in commercial property. Since 2003, it has launched 16 closedended funds and created value through the acquisition, ﬁnancing, development and management of commercial properties throughout Europe, Turkey and North Africa. It also offers advisory services for all real estate asset types.

CTP Group, THE main sponsor of the Industrial & Logistics Lounge is also coming to MIPIM to extol the virtues of its home market, the Czech Republic, as a business location. “CTP’s balanced portfolio of industrial, ofﬁce, retail and mixed-use properties comprises over 2.3 million sq m of leasable space,” said the company’s chief executive officer, Remon. Vos. “The majority of CTP’s portfolio is located in the Czech Republic. The mix of location, smart people, industrial tradition, developed infrastructure and cost effectiveness make the Czech Republic the businesssmart choice for a wide range of operations.” CTP’s plans for 2015 include signiﬁcant expansion into the Prague industrial market.

Late last year, two Prague parks were added to the portfolio. CTPark Prague East comprises 247,000 sq m of space, with 100,000 sq m available for rent immediately. An additional 108,000 sq m is available for future development. CTPark Prague North, located 20 km north of Prague towards the German border, comprises 233,612 sq m of space, with approximately 9,700 sq m available for rent and a further 69,900 sq m for future development. In early 2015 a third park, CTPark Prague West, will open its gates. Located just 8 km from Prague city centre and adjacent to an existing retail park, it offers easy access to the 1.2 million people living in the Czech capital.

Q POLAND IN A DAY SPONSOR Poland Today will host the Primetime Poland Movers & Shakers Lunch and afternoon conference on Wednesday, March 11, as part of MIPIM’s New Europe Day. Delegates are invited to network with city officials, Polish and international investors and developers at the VIP lunch, before listening to key figures from the Warsaw and Polish property markets discussing which cities have the most investment potential, whether Warsaw can accommodate more office and retail space, and many more crucial issues.

HB Reavis sells Slovakia’s Aupark complex to NEPI IN SLOVAKIA’s second largest city, Kosice, Central European real estate player HB Reavis Group has sold its ﬂagship regional shopping centre Aupark Kosice and the adjacent 12,700sq m Aupark office tower to New Europe Property Investments (NEPI) for €165m. The transaction also sees NEPI acquire the former Malinovsky Barracks in the wider city centre area from HB Reavis. Comprising 34,000 sq m of leasable space and 1,100 parking spaces, the Aupark shopping centre is almost fully leased to major retailers, including H&M, C&A, Mango, New Yorker, Deichmann, Orsay, Datart and Billa.

Since it opened in 2011, Aupark has been generating double-digit growth in turnover and, with a footfall of around 11 million visitors a year, is now one of the premier shopping centres in Slovakia. Marian Herman, chief financial officer of HB Reavis, said: “We are pleased by NEPI’s continued interest in our assets, which underscores their appeal not only from a tenant and customer perspective, but also to investors. We intend to continue further developing the Aupark brand and are currently constructing our fi rst Aupark centre outside Slovakia, in the Czech Republic city of Hradec Kralove.”

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News

Marseille on track to become ‘Euro-Mediterranean Capital’ MARSEILLE Metropole will be showcasing its strengths to investors during MIPIM, bringing together major players from across the region, including the Marseille Provence Metropolis Urban Community, the City of Marseille, Euromediterranee, the Port of Marseille-Fos, the Marseille Provence Chamber of Commerce and Industry, and Provence Promotion. The city is positioning itself as the ‘EuroMediterranean Capital’. It offers outstanding accessibility, being served by an international airport and boasting the second largest port in the Mediterranean. It is also home to the largest downtown urban renewal project in Europe, Euromediterranee, which is

celebrating its 20th anniversary. The Euromediterranee Urban Development Agency is redeveloping 310 ha of land behind the old docks to the north of the city centre, providing 500,000 sq m of ofﬁces, 8,000 new and over 6,000 renovated housing units, major cultural and educational facilities, and an expanded public-transport network. The urban redevelopment of former industrial districts has already resulted in 20,000 new jobs and homes for 20,000 more inhabitants. The next stage of the project aims to provide homes for 30,000 more people and create another 20,000 jobs by transforming an area that has fallen into serious disrepair, using a targeted approach based on sustainable development.

New projects continue Marseille’s development

Warsaw’s landmark metropolitan building sold to Deutsche AWM I N ON E of Warsaw’s biggest investment deals of 2014, Aberdeen A sset Management Deutschland has sold the prestigious Metropolitan office building on Piłsudski Square to Deutsche Asset & Wealth Management for a reported €190m. The 38,000-sq m building, designed by Sir Norman Foster, has won several awards, including the MIPIM Award 2004 in the Business Centre category and the RIBA Worldwide Award. Metropol itan c onsists of th ree separate yet connected buildings, each with its own separate reception area and two underground parking levels. The central courtyard provides the social focus of the scheme and is lined with cafes, restaurants and luxury stores. At its centre is an innovative water fountain surrounded by mature red-oak trees. The property is let to 45 multinational companies and institutions active in the financial, legal, consultancy and real estate sectors.

Poland’s Metropolitan office development, a former MIPIM Award winner Bernd Bechheim, head of asset management and transactions for continental Europe at Aberdeen Asset Management Deutschland, said: “Metropolitan is a stunning building that has performed strongly over the holding period. The completed transaction proves again the quality of our portfolios and forms a major step in restructuring our business towards new mandates.” Cushman & Wakefield and JLL advised Aberdeen Asset Management Deutschland on the transaction.

THE OWNERSHIP DEBATE ALLIANZ Real Estate’s CEO Olivier Piani will be hosting a panel session entitled Toward The End Of Ownership? on Tuesday, March 10 at 17.00 in the MIPIM Innovation Forum Green Room. The session will feature major players from the sharing economy, who will explain their vision of the real estate world’s future and debate the emerging alternatives to property ownership

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News NEWS IN BRIEF

Q ESSEC GIVES NEW MEANING TO GREENING

KPMG’s Pfister plots the road to recovery for real estate RECOVERY is now a trend in real estate, according to KPMG’s head of real estate, Stefan Pfi ster. “We are seeing asset allocations moving in favour of real estate,” he added. “It’s seen as a safe haven. It offers investors diversifi cation and it’s a sector where

KPMG’s head of real estate, Stefan Pfister

ESSEC’s Ingrid Nappi-Choulet ESSEC business school will once again use MIPIM to launch its annual Cahiers De La Chaire real estate and sustainable development publication with a round-table discussion featuring leading experts and city leaders. The session will address the challenge of sweeping urbanisation and the pivotal issue of the relationship between built-up and natural areas. Speakers will include the Italian architect Stefano Boeri and deputy mayor of Paris JeanLouis Missika, who will explore the theme Greening Up The City: Challenges For Real Estate. In an interview with ESSEC’s real estate and sustainable development chair, Ingrid Nappi-Choulet, Missika explained that ‘greening’ is one of the major objectives of his mandate. Over the coming years, his aim is to build 100 acres of green roofs and terraces across Paris, one third of which will be dedicated to urban agriculture. Missika said this would improve the quality of life and wellbeing of Parisians and augment the attractiveness of the city, while helping to preserve bio-diversity and further the ﬁght against global warming. Other advantages include leveraging innovation in greenspace management technology and developing an economic model for urban agriculture as part of the ‘localist’ movement.

investors can control their own investments.” And Pfister believes the recovery story is no longer restricted to the prime markets. “There has been a recovery in peripheral markets as well,” he said. “That will continue to gain traction because of the highly competitive pricing and the scarcity of assets in the core markets.” But the upturn is not universal. Pfister pointed out that Italy saw a decrease in 2014, even while Ireland and Spain saw big increases. “Recovery tends to happen fi rst in the more liquid markets like Dublin, Madrid and Barcelona,” he added. The KPMG chief forecast that “a big chunk of the capital inflow will still target London, Paris and the German cities, but perhaps there will be more focus on value-add assets rather than core”. And he thinks this will be especially true of the sovereign wealth funds and the globally active pension funds that have come to dominate the European markets: “Lot size is an issue for them, so they have to play in the big core markets, though we are seeing the more mature funds such as ADIA showing interest in value-add.”

Germany spearheads renewed interest in healthcare market GERMANY’S healthcare property market is the most developed in Europe. However, interest in the sub-sector is growing across northern Europe, according to Douglas Edwards, managing director of Corpus Sireo Investment Management, part of Swiss Life. Edwards attributes this rise in interest to two long-term trends. The ﬁrst is an aging society, with the over-80s now forming a growing proportion of the population. The second is rising expenditure on healthcare in general, which now accounts for 16% of Germany’s GDP. “This means healthcare property shows very low volatility — it’s more like an annuity investment,” Edwards said. Meanwhile, consumer demand and regulatory changes are driving a surge in refurbishments.

This in turn is opening up new opportunities for investors as operators need to finance their projects. “There are 12,500 care homes in Germany and a significant percentage are managed by non-profit organisations who have limited funds for capex [capital expenditure],” Edwards added. Medical offices have been highlighted by Corpus Sirio as another growth area, reflecting changes in the legislation regulating medical professionals. Edwards estimates the German healthcare sector saw €1.4bn of investment in 2014, with two-thirds of that coming from institutional investors, including US and Belgian healthcare REITs. But he cautioned investors to seek a trusted local partner. “It’s not a market for investors to go into blind,” he said.

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News NEWS IN BRIEF

Q MCARTHURGLEN TARGETS ISTANBUL DESIGNER outlet specialist McArthurGlen has partnered with Turkey’s Fiba Group to open the first two designer outlets in Istanbul — Europe’s largest city — in an investment of €250m. One designer outlet will be on Istanbul’s European side, near the new international airport which, when it opens in 2018, will be the world’s largest airport. The other is in a fast-growing university suburb on the Asian side of the city. Each of the designer outlets will serve their own separate catchment areas of more than seven million inhabitants, while being a 75-minute drive apart. Both centres are likely to benefit from the opening in 2015 of the new North Marmara highway running across the new third bridge over the Bosphorus. The two new Istanbul centres will offer the customary international and national, luxury and premium fashion brands, with quoted year-round savings of 30%-70%. The two Istanbul designer outlets will be the joint venture’s first in Turkey, with further centres planned across the country. Claude Hargreave, McArthurGlen’s regional development director, said: “Istanbul offers everything we look for in a market: an exceptionally strong local partner in Fiba Group; a large catchment, with significant purchasing power and a love for fashion; a spectacular tourist destination; a developed local fashion industry; and easy access to the chosen locations, both by car and public transport.”

McArthurGlen’s Claude Hargreave

Scale of ambition reﬂected in record Turkish presence

Plans for the Turkish Pavilion A SERIES of special projects, including a Turkish Pavilion, is planned to promote Istanbul and Turkey at MIPIM 2015. These initiatives are intended — and expected — to attract international real estate investors to Turkey. Due to the increasing power of its economy and corporate sector, Turkey was elected as Country of Honour twice in successive years — a ﬁrst for MIPIM — making the country the centre of attention at MIPIM 2013 and again in 2014. Turkish companies and organisations are building on this exposure and will have a considerable and sizeable presence again at MIPIM 2015. Turkey has long been among the top 10 regular MIPIM participants. This year, the centrepiece of the Turkish presence is the Turkish Pavilion, which has an area of 430 sq m. And as in the past, this year there will be also special conference sessions dedicated to Turkey. Istanbul remains Turkey’s commercial powerhouse. A number of the city’s ambitious projects, both recently completed and planned,

will be presented in the 300-sq m Istanbul Tent. The Istanbul Chamber of Commerce will also host the opening reception party for MIPIM 2015 participants at the Intercontinental Carlton Cannes on March 10. O t h er h i g h l i g ht s i n c l u d e A nt a l y a Metropolitan Municipality, with a stand showcasing a series of regeneration projects and focusing on Expo 2016. The Expo series of world exhibitions continues with Antalya in 2016. The theme will be ‘ﬂowers and children’. Open for six months on a 112 ha site, Expo 2016 is expected to attract 100 countries and around eight million visitors. Turkish companies exhibiting at MIPIM 2015 include: DK Yapı, Lal Gayrimenkul Degerleme, NEF, Tabanlıoglu Mimarlık, ProPlan, Ascioglu Insaat, Balcıoglu Selcuk Akman Keki Hukuk Burosu, Bemes Yapı, Entegre Proje Yonetim Danısmanlık, EVA Gayrimenkul Degerleme, Fiba Group, Herguner Bilgen Ozeke Hukuk Burosu, Hill International, Kuzu Grup, Mergen Danısmanlık, Ozak GYO, Polimeks Insaat, Propin Gayrimenkul and Servotel.

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News NEWS IN BRIEF

Q IVANHOE CAMBRIDGE MAKES CANNES DEBUT

45-141 Bay Street Toronto AT MIPIM for the first time, Canadian developer Ivanhoe Cambridge will exhibit its development capabilities across a number of on-going schemes. The Montreal-headquartered company will showcase three Canadian developments. Tsawwassen Mills shopping centre is one of the first major developments on Tsawwassen First Nation lands in British Columbia following treaty negotiations. The project, which comprises 111,500 sq m of retail with 16 anchors on a single floor, is scheduled to open in spring 2016. The second — 45-141 Bay Street — is a 250,000-sq m multi-phased, premium office complex in downtown Toronto. Built to LEED Platinum standards, it is located at the confluence of the city’s major transportation systems. And in Montreal’s business district at 900 de Maisonneuve Boulevard West, the 45,200-sq m, 27-storey Maison Manuvie building focuses on sustainable development and meets the standards for LEED CS (core and shell) Gold certification. Ivanhoe Cambridge is the real estate arm of the Caisse de Depot et Placement du Quebec, the secondlargest institutional and pension fund manager in Canada. The company’s areas of expertise include real estate investment, development, and asset management and operation. Its $35bn worldwide real estate portfolio mainly consists of shopping centres, offices and multi-residential projects. It also owns logistics services and hotels.

Strength, stability and scope on sale at Canadian Pavilion CANADA offers stability, efﬁciency and longterm vision for strategic real estate investors. Now, as a window on this increasingly significant market, a Canadian Pavilion makes its debut at MIPIM this year. City and regional authorities from different municipalities — Toronto, Ottawa, Edmonton, Charlottetown, Montreal, Hamilton, Kingston, Brampton, Guelph, Tillsonburg, Whitby, Wolfville, Perth County, Summerside, Durham County, Haldiman County and Southwestern Ontario Region — will come together with projects to show investors the range of opportunities available from coast to coast across Canada. The projects featured in the Pavilion indicate the strength, range and versatility of the Canadian market. These include the Durham Learning and Business District (dLAB) in the town of Whitby, Ontario, which comprises an area of 46 ha and has frontage on highway 401, Canada’s busiest route. The project, which will house business, research, training,

certiﬁcation and employment facilities in a compact environment, is a joint venture by Durham College, the University of Ontario Institute of Technology, the River Oaks Group and Halloway Developments. Phase one will include 12 buildings with a total of 6,000 sq m per building or greater, leading to a minimum total of 72,000 sq m for the phase. The City of Brampton, meanwhile, is promoting a new convention centre at 27 Church Street West. The development includes an international 300-room four-star hotel in downtown Brampton, on the 2.1 ha parking lot of the GO Train station on Church Street West. The hotel features a range of accommodation services, including a 3,000-sq m convention and exhibition centre with meeting/conference rooms and a ballroom facility, a ﬁtness centre, an indoor pool, restaurants and retail. With an estimated investment of $75m, 27 Church Street West will be a private/public investment, with the city acting as go between and facilitator.

27 Church Street West, Brampton

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WE TURN OUR HOMETURF INTO YOUR PLAYGROUND CORPUS SIREO is an independent business unit of Swiss Life Asset Managers and the largest real estate asset management service company in Germany. The company manages a portfolio of around 15 million square metres worth 16 billion Euros â&#x20AC;&#x201C; and is a top service provider in the office, logistics and healthcare segments. No other German asset manager has a stronger footprint in the market. Our 550 employees operate from eleven locations for a broad client base comprising institutional investors, banks and credit servicers right through to corporates. Frankfurt is home to three of our offices and marks a strong focus of our management activities. In the region, CORPUS SIREO operates as a manager for propriety holdings, value enhancer or marketer for local and nationwide properties or portfolios. Depending on the investment and partner, CORPUS SIREO also aims at co-investmens in the Frankfurt Region. Come and check out our full scope of services for your properties - whether in Frankfurt or throughout Germany. Your properties take centrestage in our business! For more information, please call us at +49 6104 664-0 or go to www.corpussireo.com

News

Mega projects in Moscow and St Petersburg raise Etalon’s stock ETALON Group is bringing two of Russia’s largest residential developments — in St Petersburg and Moscow — to MIPIM 2015. Galactica in St Petersburg is the largest re-development project in the city’s history. Situated on a 38.4 ha plot in the historic city centre, it will span 1.7 km from north to south. Consisting of 33 comfort-class residential buildings ranging from nine to 20 storeys in height, the entire development will hold over 10,000 apartments of various sizes and layouts, from small studios to spacious four-bedroom ﬂats. Galactica also includes the construction of social infrastructure, including three schools, three kindergartens, six pre-schools, medical clinics and sports facilities. The new residential neighbourhood, which is due to go on site in 2015, should be completed in 2021. The second phase of Galactica will be built based on concepts from the Finnish architectural studio T-Architects, which won Etalon’s international competition in 2014. The Finnish architects propose to abandon

Etalon City in Moscow

the ‘city block’ approach by creating an accessible public space with cafes and stores surrounding the historic building in the centre of the Galactica project. Meanwhile, the 440,000-sq m Etalon City is under construction near to Ulitsa Skobelevskaya

metro station in central Moscow. Each building, designed by architect Sergey Choban from SPEECH, will have a ‘face’ representing a particular city. The skylines of, among others, New York, Chicago, Barcelona and Monaco will be reproduced on the facades.

Terra Auri finds a home in Russia’s residential sector RUSSIA’s Terra Auri Group offers a broad range of real estate development services, including site evaluation and analysis, design, project development, project management, construction management and the implementation of development projects of any complexity, from individual residences to total urban sites. Terra Auri’s portfolio includes over 1.7 million sq m of designed and completed real estate projects. At present, the company is managing the design and development processes of multiple projects with a total area of more than 1 million sq m. The portfolio includes several residential complexes, and commercial and public premises, as well as social and cultural buildings. During its first year of operation, Terra Auri acted as the technical supervisor on residential projects in Marfino, Alexeevo, Nakhimovo, Yurlovo and Golovino with a total area of 500,000 sq m.

These developments have set new standards in Russia for economy-class residential buildings. In co-operation with Glavmosstroy, the company has developed a new concept for a typical multi-family residential complex, which will have its ﬁrst use in the city of Moscow and the Moscow district. Terra Auri has developed a variety of residential designs, including ones to ﬁt into Russia’s traditional urban-block development. The entrances to the residential buildings are located at the rear, while the ground level premises on the street side are earmarked for commercial purposes. The building structure consists of prefabricated reinforced concrete frames and composite shear panels. The ground-level facades are mainly glazed. There are 12 facade design options available, offering a variety of panel, loggia and balcony schemes.

preview magazine I February 2015 I www.mipim.com

MINSK AT MIPIM EMERGING markets specialist Dana Holdings is unveiling an expanded stand at MIPIM to showcase its projects in Minsk, Belarus. And it will welcome the mayor of Minsk as its special guest. To date, Dana Holdings has successfully completed more than 1,000 projects with a total area of over 5 million sq m. Moreover, it has over 6,500,000 sq m, valued at $25bn, currently in the pipeline. Mayak Minsk — the largest mixed-use project in Minsk — is under development on a 55 ha site adjacent to the National Library of Belarus. The project will deliver around 420,000 sq m of apartments, and 157,000 sq m of retail and class-A ofﬁces, supported by over 10,000 parking spaces. Mayak Minsk will also incorporate Dana Mall, a premium shopping destination of 95,000 sq m, which is scheduled to open in the third quarter of 2015.

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News

Global outlook and local stability set scene for ﬁrst MIPIM Japan AS JAPAN re-establishes itself as a global force in real estate, the inaugural MIPIM Japan takes place at the Prince Park Tower hotel in Tokyo on May 20 and 21, 2015. A number of factors have come together to give new impetus to Japan’s real estate sector, making this a particularly auspicious time for Reed MIDEM to launch its MIPIM format in Japan. Most notably, the stage is set for economic stability after the Japanese electorate backed Prime Minister Shinzo Abe in the 2014 general election, giving his policy of ‘Abenomics’ a new mandate and allowing him to press ahead with reforms to liberalise economic and industrial policy. Immediately after the election, Japan’s new government decided to cut corporate tax by 2.51% to 32.1%. JP Morgan is now forecasting domestic growth of 2% to 2.5%, which will further encourage investors from overseas. So why are more global investors looking

Kenzo Capital’s Dr Leonard Meyer

MIPIM JAPAN IN CONFERENCE, TOKYO, MAY 2015 MIPIM Japan’s conference sessions are structured in four streams:

to invest in Japanese real estate? Research commissioned by Dr L eonard Meyer, president and CEO of by Kenzo Capital Corporation, concludes that now is the right time primarily because strong domestic inﬂows into the sector are underpinning real estate values. The Japanese REITs (or J-REITS) remain active and, in addition, Japanese pension funds are discovering a new appetite for real estate as the government encourages them to improve returns by moving up the risk curve. Meanwhile, new research from JLL entitled Tokyo On The World Stage demonstrates the importance of the Japanese capital to international investors, along with New York and London. The report highlights the outstanding competitiveness and attraction of Tokyo in comparison to other world cities. But it also points out that international players only account for 12% of the Japanese investment market. B y put t i n g t he g loba l sp ot l i g ht on Japanese real estate, MIPIM Japan aims to become the key platform for overseas investors to meet with local partners and sector experts.

THE OLYMPICS • Urban planning and the legacy challenge • From financing to delivering on time: running for the gold medal • A real estate vision for a unique Japanese Olympics INBOUND AND OUTBOUND INVESTMENT • What are the investment opportunities in Japan — and for whom? • Japan’s new position on the cross-border investment scene • Outbound: from caution and method to risk-taking and ‘first mover’ strategy: Japanese investors’ new strategies • How to attract international occupiers INNOVATIVE CITIES • Innovation for better cities • Mobility and density management: finding the right balance • Connected citizens for a smarter city • Inspiring architectural vision for the next generation of cities TOURISM • From boutique hotels to integrated resorts: what positioning for Japan on the international scene? • What conditions are needed to attract more HTL investors and projects?

preview magazine I February 2015 I www.mipim.com

JAPAN PAVILION (R7.G31) Meet with major cities such as Tokyo, Yokohama, Nagoya, Osaka, Fukuoka and connect with stakeholders, including Mistubishi Estate, Mitsui Fudosan, Mori Building, NTT Facilities, Tokyo Tatemono

JAPAN EVENTS Breakfast sponsored by Diamond Realty. Tuesday 10 March, 8.30-10.00 Japan Morning - networking coffee and expert-led panel Thursday 12 March, 9.00 -11.00

INNOVATION | COLLABORATION | OPPORTUNITY Connect with all of Japan’s leading property companies. The door for investment and business opportunities is wide open. Q 1,000 m² SHOWCASE AREA

Q 20+ EXPERT-LED CONFERENCES 4 topics: The Olympics, Inbound and outbound investments, Innovative cities and Tourism.

Q 2,000 PARTICIPANTS

CONFIRMED SPONSORS LOCAL AUTHORITIES: MINISTRY OF LAND, INFRASTRUCTURE, TRANSPORT AND TOURISM TOKYO METROPOLITAN GOVERNMENT URBAN RENAISSANCE AGENCY CITY OF YOKOHAMA CITY OF NAGOYA CITY OF OSAKA UMEDA FUKUOKA CITY Q

PLATINUM SPONSORS: DAIWA HOUSE INDUSTRY CO., LTD. GROSVENOR EAST JAPAN RAILWAY COMPANY KUME SEKKEI MITSUBISHI ESTATE CO., LTD. MITSUI FUDOSAN CO., LTD. MORI BUILDING CO., LTD. MORI TRUST CO., LTD. NIHON SEKKEI, INC. NIKKEN SEKKEI LTD. NIPPON STEEL KOWA NOMURA REAL ESTATE DEVELOPMENT CO., LTD. NTT FACILITIES, INC. NTT URBAN DEVELOPMENT CORPORATION ODAKYU ELECTRIC RAILWAY CO., LTD. ORIX REAL ESTATE CORPORATION THE SANKEI BUILDING CO., LTD. SEIBU PROPERTIES INC. SEKISUI HOUSE, LTD TOKYO TATEMONO CO., LTD. TOKYU GROUP YAMASHITA SEKKEI INC. Q

ASSOCIATE SPONSORS: CRE '*/"/$& $06/$*- CUSHMAN & WAKEFIELD Q

WWW.MIPIMJAPAN.COM

DGNB Gold CertiďŹ cate 2014

BONN

Bonner Bogen Bonn City Centre

VISIT AT S US TAN R8.D D 13

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.

G O O D FO R I NVES TORS

Rheinwerk 3 GmbH Rheinwerkallee 3 53227 Bonn Tel +49 228 4334-2000 Fax +49 228 4334-2200 www.rheinwerk3.de ludwig.frede@rheinwerk3.de

Development MIPIM 2015 will showcase a vast range of new development projects across all sectors and markets — projects that will shape and deﬁne the built landscape of many of the world’s great cities. MIPIM editor Graham Parker selects a handful of the game-changing schemes that will be on display this March in the Palais des Festivals

Project showcase CŒUR D’ORLY, Paris, France Presented by Accor AEROPORTS de Paris (ADP) and Accor have signed construction

HELLINIKON, Athens, Greece Presented by Lamda Development HELLINIKON is the largest urban-development project in Europe

leases that will see two new hotels developed and one expanded at Paris-Orly Airport. The three leases will see the extension of the existing Ibis hotel, which will be completed in 2016, and the establishment of an Ibis budget hotel, also to open in 2016, and a Novotel hotel, due to open in 2017. The developments will see 360 more hotel rooms available for passengers at Paris-Orly Airport — a 43% increase in capacity — and offer travellers hotel concepts tailored to families and business customers. Cœur d’Orly, a business eco-district situated opposite the airport terminals, forms part of a wider economic development for southern Paris. The ﬁrst phase, on a 13.5 ha plot, combines 70,000 sq m of ofﬁce space, 41,000 sq m of shops and services, and 35,000 sq m of hotel space.

with a total investment value of €8bn. The development will contribute an extra 2% to Greece’s GDP growth by creating approximately 70,000 jobs and attracting an estimated one million additional visitors per year to both Athens and Greece. The project will also contribute to the environmental regeneration of Athens through the creation of the biggest park in Greece — and one of the biggest in the world — measuring 2 million sq m. Developer Lamda believes Hellinikon will redeﬁne Athens and Greece as tourist and cultural magnets, while creating a safe business, cultural and investment destination.

preview magazine I February 2015 I www.mipim.com

WHAT HAPPENS WHEN

DOWNTOWN meets

upswing Real estate is on the rise in Detroit. The right location, at the right time. When it comes to real estate, few things matter more. Itâ&#x20AC;&#x2122;s why a growing number of investors are putting their money into Detroit. Since 2006, nearly 200 real estate projects, totaling $6 billion, have taken place downtown. Investments that have resulted in 10,000 new jobs over the last four years. And with the new Red Wings Arena and M-1 light rail projects breaking ground, the skyâ&#x20AC;&#x2122;s the limit in Pure Michigan.

1.888.565.0052 michiganbusiness.org/MIPIM

Development

33 CENTRAL, London, UK Presented by HB Reavis HB REAVIS acquired 33 Central, a prime development site in the City of London, in late 2013, marking its entry into the London ofﬁce market. The site has consent for a new 21,180-sq m grade-A ofﬁce building, designed by John Robertson Architects, to offer a contemporary working environment that maximises natural light and outside space, while making the most of the spectacular surrounding views. Features of the new nine-storey building include a double-height reception and a roof-top garden overlooking the Thames and other iconic London landmarks. 33 Central is targeting a BREEAM ‘Excellent’ rating for its sustainable design.

RIVER POINT, Chicago, US Presented by Ivanhoe Cambridge and Hines RIVER Point will set the standard for ultramodern ofﬁce space

ULEMISTE CITY, Tallinn, Estonia Presented by Mainor Ulemiste SITUATED on the 36 ha site of a former military factory,

in Chicago. The 52-storey office tower is located in the city’s downtown West Loop area on the edge of the Chicago River. Featuring a 1.5-acre plaza and river walk, an advanced fitness centre and a formal restaurant, River Point will deliver unparalleled workspace in Chicago. The project promises dramatic world-class architecture, pre-certified LEED Gold sustainable design and outstanding views from all office floors. The Pickard Chilton design features a striking convex structure that will create panoramic city views with efficient, column-free floor plates and floor-to-ceiling glass. The impressive three-storey lobby will open on to an expansive riverside plaza and river walk — the newest addition to Chicago’s riverfront.

Ulemiste City aims to become the largest knowledge-based economic environment in the Baltic countries. Construction of the campus — a joint venture between Technopolis and Mainor Ulemiste — began in 2005. Today, phase one has been completed, consisting of 91,000 sq m of ofﬁces housing more than 300 enterprises with 6,000 employees. Ulemiste City offers a prime location, with Tallinn Airport and Ulemiste train station only few steps away and the city centre only a 10-minute car drive. The campus offers a full range of services for both companies and individuals, including a nearby shopping centre, an on-site kindergarten, a European school and the Estonian Entrepreneurship University of Applied Sciences. There is also a gym and a beauty saloon on campus.

preview magazine I February 2015 I www.mipim.com

Development PASILA, Helsinki, Finland Presented by the City of Helsinki AMBITIOUS plans have been unveiled to develop Pasila, already

SAN BORJA, Lima, Peru Presented by CC&A THE SAN Borja residential project, located in an attractive

home to a large number of Finnish and multinational businesses, into the second city centre of Helsinki. More than one million sq m of new business and commercial space will be built in Pasila over the next few decades to accommodate 50,000-plus jobs. The redevelopment will start with Tripla, which will consist of three blocks to be built around the current Pasila railway station by the end of the decade. It will include offices, a shopping centre, residences, a hotel and a major public-transport hub. The second stage of the development is the Railyard residential and office area. The third stage will comprise the Tower area, containing residential, office and commercial space.

high-end district of Lima, has been designed by Buenos Aires-based architect CC&A to provide 80 three-bedroom units in a high-rise complex. CC&A partner Cesar Crespi says: “Peru is very attractive to foreign investment and this is a great business opportunity in such a booming economy.” Peru’s real estate market is in immense need of housing, according to Crespi. “There is a 30-year loan/ mortgage system for the increasing middle class, but no real estate bubble,” he adds.

EATALY WORLD, Bologna, Italy Presented by Prelios PRELIOS has launched a €100m fund to develop Eataly World on the 80,000-sq m site of Bologna’s fruit and vegetable market, which is relocating. The project, which is planned to open by the end of this year, will create an ideal bridge with Milan Expo, and will include speciﬁc areas for the agriculture, food and wine sectors. About six million Italian and foreign visitors are expected at Eataly World every year, which will have a signiﬁcant impact on downstream local activities. The development breaks down into 10,600 sq m of food courts, 2,000 sq m of teaching and research facilities, 9,300 sq m of food sales outlets, a 27,000-sq m agri-food park with product demonstration areas and 30,000 sq m of support structures.

preview magazine I February 2015 I www.mipim.com

Development LODZ NEW CENTRE, Poland Presented by the City of Lodz THE SPECTACULAR Lodz New Centre project will revitalise a 100 ha plot of land in the heart of Poland’s third-largest city. The total development consists of more than 50 projects with a value exceeding €1bn. The area will be divided into three urban zones and will offer room for cultural, residential, service and ofﬁce buildings, as well as new infrastructure. At the heart of the project is EC1 — the oldest power plant in the city — which currently houses an interactive centre for science and technology, as well as cultural and artistic projects.

BLATCHFORD, Edmonton, Canada Presented by the City of Edmonton THE CITY of Edmonton is transforming 267 ha of virgin land into one of the world’s largest sustainable developments. Blatchford will use leading environmental technologies to support a walkable, family-friendly, mixed-use community for 30,000 people. Homes for people at all stages of life, retail and commercial space, parks, streets and public transportation will come together to make Blatchford a community like no other in Canada.

INNOPOLIS, Tatarstan, Russia Presented by Innopolis INNOPOLIS aims to be the future IT capital of Russia. Being built in the Republic of Tatarstan at the confluence of the Volga and Sviyaga rivers, it is the first city in the young history of the Russian Federation to be constructed completely from scratch. Masterplanned by Singapore-based RSP Architects Planners & Engineers, Innopolis is expected to have a population of 155,000 people by the year 2030, of which 60,000 will be highly qualified specialists. The first phase, providing accommodation for 5,000 people with associated infrastructure, is due for completion this year. Residents of the Innopolis Special Economic Zone (SEZ) will have access to world-class infrastructure, including high-tech, multi-functional Technopark complexes offering modern office space, R&D centres and advanced conference facilities. preview magazine I February 2015 I www.mipim.com

€700,000,000 shopkeeper’s turnover

25,000,000 visitors per year

AT H

ΕR

535 retail stores 5,500 brands 300 retailers 7,000 jobs

Targeting Perfection

visit us at MIPIM, stand P-1.F55 www.lamdadev.com

Development STOCKHOLM LIGHTHOUSE, Kvarnholmen, Sweden Presented by City of Stockholm A NEW city district is emerging on the island of Kvarnholmen, just outside Stockholm, with space for 3,000 new residences, schools and shops in an historical environment. A previously closed-off industrial area is being transformed into an open, living neighbourhood. The 225-apartment Stockholm Lighthouse, created by Sweco, is one of the new residential projects planned for the area. With a nod to Kvarnholmen’s history, the development’s buildings are reminiscent in design and dimension of the silos that used to grace the site. An imposing tower inspired by the former Torktorn (drying tower), crowned by an illuminated observation room, recalls the light beacon at the harbour entrance that gave the project its name. Visually, the building will be a new landmark at the entrance to Stockholm.

TWIN CITY, Bratislava, Slovakia Presented by HB Reavis THE TWIN City office project is located close to Bratislava city centre, offering easy accessibility from all parts of the city. The modern architectural design uses natural materials, enhanced with plentiful greenery. The use of brickwork references the industrial buildings that previously stood on the site. Twin City’s offices, which are designed to individual tenant requirements, will incorporate cutting-edge technologies. They have also been designed to provide tenants with maximum natural daylight, increased green space, both inside and out, and attractive external terraces. The project is targeting an ‘Excellent‘ BREEAM rating. Phase one of the Twin City development, comprising three office buildings, will provide a leasable area of more than 60,000 sq m. The first of these buildings will be delivered in the fourth quarter of 2015.

WATERFRONT CITY, Beirut, Lebanon Presented by Majid Al Futtaim Properties WATERFRONT City in Lebanon’s capital, Beirut, is a 250,000sq m mixed-use community overlooking the Mediterranean, located 15 km from downtown Beirut and surrounding the 700-berth Marina Joseph Khoury. Waterfront City, which is over twice the land size of Monte Carlo’s marina, is a partnership between Majid Al Futtaim Properties and Societe Joseph G Khoury et Fils. Residents and visitors will have access to 2,000 living spaces of between one and five bedrooms, and ranging in size from 83 sq m to 290 sq m. The project features a business park, offering 60,000 sq m of commercial space with parking, an indoor family entertainment centre, community parks, a marina-front promenade, pedestrian walkways, health clubs, a 64,000-sq m shopping mall comprising 150 shops, and one four- and one five-star hotel. The first apartments are expected to be delivered in 2015.

preview magazine I February 2015 I www.mipim.com

www.breeam.com

See us on

stand C21.B8 in the Innovation Forum

Images ©John Sturrock

82898 © BRE Global January 2015

Sustainable real estate around the world

CEE: Business Smart Investment Choice

EE markets like the Czech Republic

Growth in value-add

are proven staging grounds for

This surge in new investments is led by the

signiﬁcant, added-value investments in

automotive industry and other high-tech

core industries such as automotive, high-tech

and added-value manufacturing activities.

manufacturing, logistics, and cutting edge

Southeastern Europe, in particularly Romania,

R&D. More than 400 CTP clients recognize the

is also experiencing an upswing on its industrial

hidden value of the CEE region, contributing

market, driven by new investments into

to regional investment volumes of upward of

its well established automotive and

€ 7.9 billion, a 23% y-o-y increase compared to

high-tech industries.

volumes in 2013. Case in point: long-term CTP client, Tech Data,

In Q3 2014 industrial investment across CEE showed 125% volume growth over its ﬁve-year average.

Industrial Boom

leverages strategic location and comparatively

Industrial real estate markets across CEE are

lower operational costs at its key European

growing rapidly to accommodate this growth

distribution facility in CTPark Bor to engage in

—at nearly twice the rate as previous years—as

cross-border activities from the Czech Republic

investors continue to consolidate and expand

to neighbouring Germany.

added-value activities across the region. CEE

Czech anti-virus companies AVG Technologies,

markets have the highest volume of modern,

Avast and ESET are second, third and fourth

new-built A-class logistics stock in Europe,

in anti-virus market share globally behind

signiﬁcantly higher than in Western Europe,

only Microsoft, while another market leader is

where in some markets only around 20% of

Romania’s Softwin. AVG began as a startup in

stock is newly built.

Brno, and currently occupies 8,400 m2 at CTP’s

Led by Poland and the Czech Republic,

Spielberk Office Centre in Brno, which has

vacancies are down and take up is on the rise.

earned a reputation as a centre of science and

Region-wide, vacancies have dropped below

technology, primarily due to its six technical

10% for the ﬁrst time since 2007. In Q1–3 2014

universities and its over 40,000 students.

in the Czech Republic alone over 278,000 m2

Moving through 2015, the CEE region will

of new facilities were delivered to market, 20%

continue to offer ideal circumstances for added-

up on the same period in the record year of

value investments in core industries such as

2013 and 62% higher than in 2012. In Q3 2014

automotive, high-tech manufacturing, logistics,

industrial investment across CEE showed 125%

and cutting edge R&D.

volume growth over its ﬁve-year average.

Czech #1

Top of the list

Capacity for innovation.

country ranks as #1 among New Member States

in the Czech Republic through 2014, primarily

of the World Economic Forum (“WEF”) in areas

by long-term Czech investors Skoda Auto (who

of high-tech expertise, infrastructure and the

accounted for 60% of production), Hyundai

quality of its research and innovation, and #1 in

(25% of production) and TPCA among others.

its ‘capacity for innovation’. The country also

In the same period, up to 30% of the global

weighs in on:

stock of high-tech electron microscopes were

he Czech Republic has rocketed to pole position in a slate of economic and investment indicators during 2014. The

More than 1.2 million cars were manufactured

manufactured in the Czech Republic’s second #1 Company spending on R&D. The highest

city, Brno.

investments by Czech companies into science and research come from the auto industry

CTP tenant, FEI, recently opened a brand new

with total investments of € 230 million in 2013

Technology Centre at CTPark Brno. This

compared to € 120 million in 2010. Engineering

27,000 m2 state-of-the-art custom-built

companies came in second with investments of

production facility houses 600 engineers and

€ 155 million in 2013, compared to € 100 million

designers, and accounts for up to 60% of the

in 2010.

company’s global production.

#1 Internet users. Internet use in Central Europe

International automotive supplier, Continental,

is exceptionally high with usage among a

also recently strengthened its presence in

number of New Member States at over 70%

the Czech Republic. The Sensors & Actuators

of the population. The Czech Republic comes

business unit, which is part of the Continental

in ﬁrst, according to the latest ﬁgures at 74.1%

Powertrain division, opened a 20,000 sqm

of internet user penetration, just behind Hong

Worldwide Competence Centre in CTPark

Kong’s 74.2%.

Ostrava, responsible for global R&D activities

#1 Quality of air transport infrastructure.

The Czech Republic is a centre of excellence

According to the IMD World Competitiveness

for technical studies, engineering, and related

Yearbook, the high quality of air transport in

scientiﬁc and pharmacological ﬁelds. The Czech

the Czech Republic is seen as a particularly

Technical University in Prague, founded in 1707,

is home to more than 23,000 students and

strong inducement for increasing investment and business development in the country. With

is the oldest non-military technical university

a score of 8.1 (just behind USA with 8.23), the

in Europe. The Central European Institute of

country far exceeds its regional neighbours and

Technology in Brno, also known as “CEITEC”,

even outranks some leading western countries

was founded more recently in 2011, as a

(UK scores 7.83 and Austria 7.32).

scientiﬁc centre in the ﬁelds of life sciences,

30% of the global stock of electron microscopes is manufactured in the Czech Republic.

Company spending R&D

advanced materials and technologies.

Automotive

€ Billions

Engineering

6.5

4.3 4

3.4 2.9

2010

2014

2010

Other #1s include: Value-chain breadth, Local supplier quantity and quality, Production process sophistication and Energy infrastructure.

Visit CTP at Riviera Hall R7.C37 Join Industrial & Logistics experts for an interactive workshop "CEE Business Smart: From low-cost manufacturing to high-tech industries" Thursday 12th 14:30 - 16:30 ORANGE Room. For more information on CTP or our CTPark Network: CTP.eu | CTPark.eu | +420 565 535 565

2014

Interviews

MASTERMINDS : GROWTH OF THE EUROPEAN LISTED REAL ESTATE SECTOR Wednesday 11 March, 15:00 - 16:00 • Christophe Cuvillier, CEO, Unibail-Rodamco • Luciano Gabriel, chief executive ofﬁcer, PSP Swiss Property • Chris Grigg, chief executive, British Land • Serge Grzybowski, chairman and chief executive ofﬁcer, Icade

THE KEYNOTES

Real Estate masterminds

Keynote speakers from across the world of real estate will be sharing their insights, views and vision at MIPIM 2015. Graham Parker previews some of the highlights

CHRIS GRIGG, CHIEF EXECUTIVE, BRITISH LAND

IN THE UK, strong capital flows into property were a continuation of a trend that started in 2013, according to Chris Grigg. And the chief executive at British Land sees this trend continuing into 2015. “There is a case being made that real estate has become a quasi-reserve currency in a low-interest rate environment,” he says. “The breadth of capital sources looking for property is as interesting as the sheer amount,” Grigg adds, pointing out that investors of all types and from all round the world are investing in the UK property sector. “They are interested in capital preservation as much as growth, and London — and the UK more broadly — has seen an improving economic climate ahead of the rest of Europe.” Grigg also believes it is important that overseas investors in the UK are treated on a par with local players — something that cannot be said of many other markets. So how does Grigg see the market evolving in 2015, bearing in mind that British Land specialises in London offices and UK-wide retail? “It’s received wisdom that office rents are growing now, so even if yields don’t compress any further this year we’ll see capital growth,” he says. “And there’s a sense that growth is now catching on in retail across the UK. There’s not been a lot of development, so we’re already seeing a shortage of prime supply.”

Does the British Land chief see anything disrupting this benign outlook? “Prospects for 2015 look good, barring what Rumsfeld called the ‘unknown unknowns’, although there is political risk in the world,” he says. One potential disrupting factor is the persistent low price of oil, which may cramp the activities of the sovereign wealth funds that typically reinvest the proceeds of oil production. But for Grigg, the low oil price is on balance a positive. “It will put more money into consumers’ pockets,” he points out. So what projects will British Land be progressing in 2015? Grigg highlights Paddington Central to the west of central London, which has consent for a 33,000 sq m ofﬁce scheme. Meanwhile, in Blossom Street in London’s Shoreditch district, another 33,000 sq m is planned, as is the comprehensive refurbishment of 100 Liverpool Street, part of the Broadgate estate. “Development in general will make our shareholders money,” Grigg concludes.

preview magazine I February 2015 I www.mipim.com

“Prospects for 2015 look good, barring ‘unknown unknowns’”

Interviews LUCIANO GABRIEL, CHIEF EXECUTIVE OFFICER, PSP SWISS PROPERTY

CHRISTOPHE CUVILLIER, CEO, UNIBAIL-RODAMCO

FOR LUCIANO Gabriel, chief executive officer of PSP Swiss Property, the surge in investor demand for both direct and indirect exposure to property is in part, at least, a reflection of the lack of alternatives on offer while interest rates remain low. “Many prefer to invest in safe assets like property,” he says. “And safety is at the forefront of our thinking in Switzerland.” Gabriel points out that, while pension funds and insurance companies are obliged to invest, the uncertain investment climate is leading others to adopt a ‘wait and see’ attitude. And if prime opportunities are in short supply, he sees little sign of investors moving further up the risk curve. “The appetite for risk has only increased marginally. There’s very little activity outside the main cities,” he observes. Gabriel attributes this risk-averse stance to the ongoing eurozone crisis more than to geopolitical uncertainty or oil-price volatility: “The fear is that it’s out of control and governments and central banks don’t know what to do.” And he does not anticipate a quick fix. “Our view is that it’ll last for another three or four years,” he says. “Structural reforms are needed in places like Italy.” So what characterises PSP’s approach? “Safety and quality drive our business,” Gabriel says.

“We have a very simple business model — we don’t have any joint ventures, for instance — so investors can understand what we do. We promise rental growth of 3% or 4% and we’ve delivered that. We don’t over-promise and we deliver.” In part, this reﬂects the dynamics of PSP’s home market. “Switzerland is a limited market with limited acquisition opportunities, so we focus on driving earnings per share and profitability through the active asset management of our existing properties,” Gabriel explains. This means that, as properties age and tenant requirements change, PSP keeps its portfolio fresh with an active programme of redevelopment and refurbishment. As an example, Gabriel points to the Grosspeter Tower in Basel, where construction started recently on a 78-metre, 22-storey building designed for a mix of hotel and ofﬁce uses.

UNIBAIL-Rodamco is targeting large-scale retail-led projects that are able to dominate their catchments in major European cities, according to CEO Christophe Cuvillier. “Unibail-Rodamco’s strategy focuses on the largest assets in prime catchment areas in Europe,” he says. A nd Cuvillier highlights t wo major acquisitions signed in 2014 as evidence of the company’s abilit y to take on largescale and complex city centre schemes. “A f ter the award of the Neo Mal l of Europe project in Brussels earlier this year, the group is proud to enter into a partnership with the City of Hamburg for the development of HafenCity, Europe’s biggest inner-city development project in one of the most dynamic regions of the continent,” he says. The 860m Uberseequartier project in the heart of the 157 ha HafenCity area will include retail, restaurants, a multi-screen cinema, a cruise terminal, offices, housing and a hotel. It will cover a total of 184,000 sq m, of which 50% will be dedicated to leisure and retail.

Fully accessible with an existing dedicated metro station and 2,950 new parking spaces, Uberseequartier will offer customers an innovative retail experience with 190 shops, among which will be many new international premium retailers. UnibailRodamco will deploy its latest initiatives, including the 4-Star label, iconic shop fronts, The Designer Galler y and the Dining Experience featuring a plaza overlooking the Elbe river, to set new standards in shopping. “Uberseequartier is perfectly in line with Unibail Rodamco’s strategy and its ambition to accelerate its growth and create long-term value in Germany,” Cuvillier concludes.

“The appetite for risk has only increased marginally”

preview magazine I February 2015 I www.mipim.com

“Focus on the largest assets in prime catchment areas in Europe”

Construction and Development Russia Moscow and St. Petersburg Over 27 years of successful real estate market experience GDRs traded on the London Stock Exchange Nationwide sales and marketing network covering 36 Russian cities Since its founding in 1987, Etalon Group has delivered over 180 residential and commercial buildings with a total area of more

The Company’s sales also increased significantly in 2014, with over 9,000 new contracts signed during the year.

than 4.5 mln sqm. Etalon Group is one of the largest companies in

In 2014, Etalon Group continued construction of some of its

St. Petersburg by delivery volumes, and it is growing actively its

largest projects in St. Petersburg: Tsar’s Capital, Samotsvety,

market share in Moscow.

Moscow Gates, as well as in the MMA: Emerald Hills (Moscow

In 2014, the company delivered 580 ths sqm of residential real estate in St. Petersburg and the Moscow Metropolitan Area (“MMA”), which represents the Company’s highest volume of deliveries in its more than 27-year history on the construction market.

region) and Etalon City (Moscow). In 2015, the Company plans to launch several new projects in Moscow, including Golden Star in the east of the city. Etalon Group employs over 5,000 people, with 17 sales offices spanning Russia – from Murmansk to the Russian Far East.

Come and see us at our stand P-1.K61, level: Palais -1 Moscow Gates

2 Bogatirsky prospekt, St. Petersburg, Russia, 197348 +7(812)380-05-25 www.etalongroup.com

Samotsvety

Feature THE DIGITAL OPPORTUNITY

The effect of today’s technology on tomorrow’s world will be immense — and many companies are unprepared for it. Graham Parker looks at how MIPIM 2015 is aiming to help the real estate industry to make the most of the digital revolution

future starts here

The T

HROUGH a mixture of conferences examining the impact on the real estate industry of big or open data and crowdfunding and presentations devoted to online property management solutions, MIPIM will provide a forum for real estate executives looking to understand the opportunities offered by digital developments. Digital innovation is impacting on all sectors of the economy, according to Filippo Rean, director of Reed MIDEM’s real estate division. “Digital is having a huge impact on a variety of sectors, ranging from healthcare to communications and from ﬁnance to entertainment,” he says. “These are early days for the real estate industry, but the property business needs to consider how it, too, can adapt

“The property business needs to consider how it, too, can adapt to major social trends” Filippo Rean Director of Reed MIDEM’s Real Estate Division

to major social trends. MIPIM is leading this conversation by inviting the views of experts that illustrate the new opportunities now opening up to property professionals.” The MIPIM conference programme will

address several major digital trends related to the property sector. The storage and analysis of massive quantities of data will be discussed by experts including Fundrise and Compstack at the session entitled Big And Open Data:

PICKEN PREDICTS… SCOTT Picken, founder and senior managing partner of property crowdfunding portal Wealth Migrate, gives his forecast for 2015: “From a global perspective, real estate crowdfunding will continue to grow and gain traction as more investors worldwide view these platforms as a simple — and safer — way to invest with the support of companies that are dominant in this space, rather than trying to do it all on their own. As a result, there will be far more controls from the SEC [Securities and Exchange Commission] and other bodies around the world, as these platforms continue to gain public

acceptance. One trend we expect to see is an increase in niche portals that focus on just one sector, such as medical. “Overall, the massive movement of capital from people who are investing internationally will continue, with more major players getting involved in 2015. China alone saw over $15bn invested in 2014 and this is expected to grow by 20% a year for the next decade. The Chinese are primarily investing in the US, Australia and the UK — three of our strongest markets. More than 7% of all investment in residential property in the US in 2014 was foreign investment. Crowdfunding will facilitate this further and accelerate this trend in 2015.”

preview magazine I February 2015 I www.mipim.com

Feature HIGH TIME FOR HIGHTOWER IT WAS Brandon Weber’s unusual combination of tech and real estate experience that enabled him to develop his pioneering leasingmanagement system Hightower. The CEO and co-founder of Hightower studied computer science and joined Microsoft on the Excel team, staying with the project until the launch of Excel 2007 before leaving to join a startup providing tech solutions to the residential sector. This was the moment that his fairly predictable career path went off-piste. “I knew real estate was interesting to me, so I went into leasing with CBRE in Seattle,” Weber says. “I learned the business inside out, but I also recognised that we had no tool to do our job — the majority of commercial leasing was still powered by Excel and that applied whether you were a local owner with ﬁve assets or Blackstone. The inspiration for Hightower was the need to solve my own problems and those of my clients trying to manage their portfolios.” Hightower allows brokers to update leasing activity in real time and that information is automatically shared with colleagues and clients. And the data can be presented visually as well as numerically to give an overall view of availability and lease events on a single building or across a portfolio. “It’s at the conﬂuence between new technology like tablets and big data and cloud computing,” Weber explains. Hightower launched a year ago. “It looks as though we’ve got a tiger by the tail,” Weber says. “We’re growing at 30% per month in terms of square footage on the platform. Twelve months ago, the top 50 landlords hadn’t heard of us and now they’re all either using us, have proposals from us or are talking to us.”

The Impact On The Property Market, on Thursday, March 12. Gemma Haley, associate director of the Loan Market Association, will then ask if this mass of available information marks the end of relationship lending at a session, also on Thursday, March 12. Meanwhile, the capacity to optimise the management of all this data is leading to the development of innovative tools. Eight startups — including Juwai.com from China and Hightower from the US — will present their solutions to a panel of professionals during a pitching session jointly organised by Lennar International on Wednesday, March 11. The sharing economy that relies so heavily on digital innovation is raising fundamental questions about the property industry, and has been much accelerated by the ﬁnancial crisis. The trend towards crowdfunding is beginning to emerge from small individual initiatives to

gain traction in the ﬁnancing of property projects. Whether this is a temporary or permanent trend will be discussed at Crowdfunding: Industry Game-changer? on Tuesday, March 10 by speakers including Scott Picken, founder and senior managing partner of South Africa’s Wealth Migrate, and SouleymaneJean Galadima, associate director of France’s WiSEED Immobilier. As the transport, automobile and tourism industries come to terms with the sharing economy and the concept of an end to ownership, MIPIM will ask whether such trends could hit real estate. Which business model could emerge from this movement for the property industry? The session, The End Of Ownership?, jointly organised by Allianz on Tuesday, March 10, will see top speakers from AirBnB and Bureaux À Partager among others, debate this fundamental issue with Allianz CEO Olivier Piani.

CHRIS MARLIN PRESIDENT, LENNAR INTERNATIONAL “The biggest impact is still to come” Do you think the real estate sector has been slow to wake up to the potential impact of digital technology? “I don’t know whether the real estate sector is any slower than any other nontechnology-based sector when it comes to digital technology. At Lennar, we have been using digital technologies in the field for years, aligning our home-construction practices and timelines with supply-chain management imperatives in a digitally enabled format that generates internal efficiencies, so that we can serve our customers better. When you look across industries, digital cultures evolve in different ways that fit the needs of each industry’s ability to adapt and adopt.” Is digital now impacting on the way real estate is owned and occupied? Or is the biggest impact still to come? “Digital is becoming embedded in every aspect of real estate, across asset classes. Whether in our core home-building business, our multi-family, for-rent business or our commercial or other businesses, we are constantly encountering new digital applications. There’s no question, however, that the biggest impact is still to come. It takes a

fraction of a second to realise that the ‘internet of things’ is set to revolutionising every facet of real estate, whether owner or occupier.” It seems that the retail and logistics sector has felt the biggest impact of technology so far. Do you see it affecting other sectors too? “We see it every day in home building. Customers of all ages expect more from their home-buying and home-owning experiences. The ubiquity of technology is transcending age groups. We see digital engagement among all segments of our customer base — and we’re responding to that engagement as creatively and meaningfully as we can.

preview magazine I February 2015 I www.mipim.com

do not miss the belgian pavilion

Théâtre Debussy/ Belgian Pavilion Main entrance

Free up some time in your busy MIPIM schedule to discover all the Belgian Pavilion has to offer. The 436m² of exhibition space houses Belgium’s leading real estate companies, projects and exciting investment opportunities. Learn all about the major projects during one of the many events and seminars at our dedicated conference room. The Belgian Pavilion represents the perfect starting point to connect with the key Belgian decision makers while enjoying a freshly tapped beer at the Belgian Bar. We look forward to welcoming you at the Debussy Hall!

events: tuesday March 10th at 7PM official opening with the “Belgian Surreal estate” cocktail a comprehensive programme of conferences and networking events, available on

www.surrealestate.be

www.surrealestate.be @sur_real_estate

Brussels

Flanders

Wallonia

In partnership with:

Contact: mathieu van marcke | +32 9 334 68 44 | info@surrealestate.be

Photo: Xxxx credit

Good architecture is in demand worldwide, with investors and developers going global and public bodies looking for signature buildings. But, asks Peter Clucas, are international projects only accessible to larger, Anglophone players â&#x20AC;&#x201D; or can smaller practises make the jump from local to global?

preview magazine I February 2015 I www.mipim.com

Feature ARCHITECTURE

The art of global business

Cigler Marani’s Quadrio scheme in Prague

Guggenheim museum in Helsinki, no fewIGLER Marani is an architecturer than 1,715 entries were received. The invial practice with offices in Prague tation to tender was written in English, with and Moscow. It was founded by Finnish and Swedish translations. At the time two architects: one well known in of writing, a shortlist of six practices has been the Czech Republic; the other, an American. drawn up and the winner will be announced in This combination of local connections the summer of 2015. The top six will receive and international expertise has been a a share of the €375,000 prize fund — which powerful one, according to US co-foundwill leave 1,699 practices needing to absorb er, Vincent Marani. “We have developed the costs of entry. our practice beyond the boundaries of the What makes this of interest is that this is a way Czech Republic,” he says. “We are very well into international architecture based pureknown here, but we have over 100 staff, so ly on creativity. Even the names of the pracwe have the capacity to work on projects tices were kept from the jury. Nowhere in the from a wide catchment area, including the tender documents is there mention of pracwhole of Europe and the Middle East. We tice size, or technical or personnel resources. serve our clients from Prague and from our The Solomon R Guggenheim Foundation is Moscow office. We will soon be opening in clearly intent on perpetuating its reputation Dubai also.” for museum design following its Lloyd Wright Marani considers that there are three ‘Cs’ to and Gehry masterpieces. international work: collaboration, connections and competitions. “We are naturally colIn July of this year, AHR demerged from laborative as a practice, so we are often paired Aedas, taking with it the UK, Russian, Polish up with other architects who may add a parand Kazakhstan offices. Like Cigler Marani, ticular expertise to a project,” he says. “For exAHR is also on the verge of opening an office in ample, we collaborated with Chapman Taylor Dubai and it does a lot of business in the region, on the retail elements of our recently completas well as in India, Australia and beyond. ed Quadrio mixed-use project in Prague.” Mike Walters, who heads up AHR’s London Connections are important, Marani adds, “beoffice, has been leading projects in Russia, cause clients often take you with them when Kazakhstan and the Middle East. So what they explore opportunities in other coundoes he think are the pretries”. A case in point requisites for running an is the Czech client for practice? Cigler Marani’s recent“International practices international “ E x p er t i s e a nd exly completed ComCity in perience,” he replies. Moscow: “We were ap- succeed if they can “International practicpointed because we al- provide what clients es succeed if they can ready had connections find hard to get in their provide what clients find [in Russia].” local markets” hard to get in their loAs for competitions, in cal markets. This means a competition to find Mike Walters you should be able to an architect for the new Managing director, AHR

Feature demonstrate and mobilise expertise [and] deliver it locally, either through establishing your own set up with local employees who know local codes and practices, or ďŹ nding a trusted collaborator who can work with you to do this. Size will obviously be an advantage, as it usually brings an established infrastructure that can manage and operate at distance. However, itâ&#x20AC;&#x2122;s not always the case that you have to be big â&#x20AC;&#x201D; being nimble and entrepreneurial is key.â&#x20AC;? Yves Chantereau runs Equator European Architects, a network of architectural practices with more than 250 staff members in seven ofďŹ ces in the Czech Republic, Finland, France, Hungary, Ireland, Portugal and Sweden. â&#x20AC;&#x153;We rely strongly on the personal involvement of our partners and their interaction with clients,â&#x20AC;? he says. â&#x20AC;&#x153;We know that this approach is appreciated by our clients, [because] bigger ďŹ rms are often more anonymous. It is easier to be personal with a team of 10 partners and 40 staff than with 150 partners and 650 staff, which can turn quickly into something more like an architectural factory.â&#x20AC;?

What advice would AHRâ&#x20AC;&#x2122;s Walters give a smaller practice wanting to break into international work? â&#x20AC;&#x153;Get good advice about the market you are looking to break into and ďŹ nd a trusted collaborator â&#x20AC;&#x201D; a practice or individual who knows how to deliver projects there. Be careful about how much you invest and be sure that you have the right mechanisms in place to be paid and receive payment for the work you undertake.â&#x20AC;? Equatorâ&#x20AC;&#x2122;s Chantereau agrees: â&#x20AC;&#x153;At all times remember that architecture is a local business. What international clients pay for is maybe exporting international knowledge to the local market, [but they also want] an understanding of the local market and the strategy for their local project.â&#x20AC;? HKR Architects is London-based with a design hub in Dubai. From these locations, it runs project offices in Abu Dhabi, Astana (Kazahkstan), Istanbul and St Petersburg. Jerry Ryan, who has led HKRâ&#x20AC;&#x2122;s transformation into an international player, says the practice in 2014 is a very different operation from

â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s no substitute for boots on the groundâ&#x20AC;? Jerry Ryan Co-founder HKR

the HKR he co-founded in 1992. â&#x20AC;&#x153;But thatâ&#x20AC;&#x2122;s not surprising,â&#x20AC;? he adds. â&#x20AC;&#x153;The market has changed and so have we. We are now a multicultural international company. Itâ&#x20AC;&#x2122;s quite a balancing act. BIM [building information modelling] and global networks work alongside a lot of international travel, making sure that our projects run properly and our clients receive the service they deserve. Thereâ&#x20AC;&#x2122;s no substitute for boots on the ground.â&#x20AC;? The general view is there is a place for smaller practices on the international market, but they have to provide something that cannot be found locally. This might be sector expertise or, in the case of international competitions, pure creativity. Collaboration, it appears, is key. For many practices, a share of an international cake is better than no cake at all.

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Explore a 1,300 mÂ˛ pavilion gathering all innovation stakeholders to showcase the most innovative solutions and practices to increase the value of property assets. Topics tackled in the MIPIM Innovation Forum Industrial solutions Architecture Smart cities Smart building solutions/technology

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BUILDING INFORMATION MODELLING

All together now BIM has been a long time coming to the construction industry. The idea of a common IT platform on which a whole design team can work is not new — but, like the development of any technology, take-up has been patchy. Peter Clucas reports

S A CONCEP T, BIM, or Building Information Modelling, makes total sense. Everyone works together on a single 3D computer model of a design project — no one could argue with that, surely? But BIM does require some technological investment and a real collaborative attitude. Building a virtual model of a building before it is built can signiﬁcantly reduce revisions once construction begins. Clashes of services are avoided and the contractor knows precisely the quantities of material that will be required. After construction, when the building is handed over, the client knows exactly what the building is made from, right down to the speciﬁcation of the light bulbs. So why isn’t every project designed in BIM? First, there is the investment in software, which isn’t cheap to buy. Then there is the hardware. BIM requires

fast computers and powerful broadband connections. Many organisations find they need to upgrade their servers and their connections when they move to BIM. Third, there is training. All design staff need training in what can be a demanding process. By definition, every detail must be thought through and entered into the BIM model. This takes some learning. Many larger architectural practices employ a full-time BIM manager such is the level of attention it requires. All this puts BIM out of reach financially for many smaller practices. But there are pressures that will influence BIM’s take-up. In the UK, for example, all government projects will be required to be run in BIM by 2017 under an initiative instigated by the Cabinet Office in 2011. At that time, it noted that construction “has generally lagged behind other industries in the adoption of the full potential offered by digital technology”.

preview magazine I February 2015 I www.mipim.com

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Feature Holder Mathias Architects, which has offices in London, Cardiff and Munich, currently develops around 30% of its projects in BIM using Revit software, which appears to have become one of the industry’s standard software packages. Legacy projects — those that were commenced prior to BIM — make up a large number of the CAD-only schemes upon which Holder Mathias is working. All the new projects that the practice undertakes are reviewed for BIM suitability against programme, complexity, availability of resource and Revit licenses. Holder Mathias is on target to have all new projects in BIM by 2016. At architects Haskoll, which in addition to its London headquarters has two offices in China, the position is similar. There is generally some degree of 3D work on the majority of its projects, although this is not always fullblown BIM. The practice often works with clients and other consultants that are not set up for a BIM environment and cannot utilise the full extent of the information available. Haskoll often uses BIM as a tool for developing the design from concept and co-ordination through to working out difficult construction details, such as complex junctions and interfaces in 3D. The company also uses 3D BIM models to automatically schedule out information. Chris Hall, who is managing the migration to BIM for Holder Mathias, is in no doubt that practices can justify the expense of BIM. “Although initial outlay is considerable, the ongoing costs are bearable and, with each project, we are seeing increases in the speed and efficiency of models and drawings, allowing us more time to develop the design,” he says. “The ease with which 3D views can be generated also majorly benefits the design process,” Hall adds.

“BIM usually offers us operational benefits so we don’t tend to charge more to clients”

Holder Mathias’ Chris Hall

“Currently, 90% of technical staff have been trained, with around half of these actively working with BIM projects,” Hall reports. Haskoll’s BIM manager, associate director Tim Wells, is a BIM Accredited Professional. He has staff at a number of different BIMqualified levels, including around 10 with “very good 3D expertise” in Bentley’s AECOsim Building Designer, which is a rival to the perhaps more established AutoCADproduced Revit. “The cost really comes from formalising working practices in terms of BIM protocols and standards, software training and demonstrating this to others,” he says. Wells observes that many aspects of BIM are not new and are generally about good co-ordination and adopting common standards so that the project team can work efﬁciently together — “which should be best practice anyway”. He adds: “As such, there shouldn’t really be an associated cost if you are doing this already. In fact, it should be a saving as working practices will be more efﬁcient.” The advantages of BIM should be felt beyond the design team. At the moment, this extends to the client, in that it is easier and quicker for the architect to explore design options and changes. There should

Haskoll’s Tim Wells

“Clients will not pay more, but it may improve our chances of getting the job if we are able to demonstrate expertise in BIM” Tim Wells BIM manager, Haskoll

also be fewer clashes of services and structure, meaning that smoother projects should ensue. At project completion, the client should have a much better set of ‘as built’ information with which to work. Few facilities managers are as yet beneﬁting from BIM, however.

Chris Hall BIM manager, Holder Mathias

Training is a signiﬁcant cost of implementing BIM. Holder Mathias originally outsourced this, but now the practice has developed its own methods and carries out its own in-house training sessions. preview magazine I February 2015 I www.mipim.com

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Feature “We are increasingly finding BIM a prerequisite on many major projects, either as a request from the client or their contractor. We do explain the process to undecided clients to illustrate the benefits. BIM usually offers us operational benefits, so we don’t tend to charge more to clients,” says Holder Mathias’ Hall. In contrast, many of Haskoll’s clients and contractors do not receive BIM formats. “Information is normally still issued in the more traditional 2D format,” Wells says. “We often work with clients who don’t understand — or misunderstand — the concept of BIM and don’t really know how to approach a project generally. That’s why they come to us. Clients will not pay more, but it may improve our chances of getting the job if we are able to demonstrate a particular expertise in BIM.” One practice that applies BIM to all of its projects, regardless of size, is Cigler Marani in Prague. But with 50% of its staff consisting of engineers, it makes communication simpler in this truly multi-disciplined organisation. However, BIM is not only about the software — it is also about collaboration. And in an industry where mistrust prevails, it may be some time before BIM becomes universally accepted.

Haskoll’s BIM-based design

MIPIM INNOVATION FORUM Located in the Gare Maritime, next to the Palais des Festivals, the MIPIM Innovation Forum is a 1,300-sq m pavilion gathering all innovation stakeholders - 470 corporate occupiers, 4,300 investors, 1,400 architects & planners, 300 cities, 2,100 local and public authorities - to showcase the most innovative solutions and practices to increase the value of property assets. The Architecture Café, a new exhibition area and business bar furnished by Vitra, forms part of the MIPIM Innovation Forum with a terrace and networking area. It will feature live daily project and concept presentations every 30 minutes.

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Focus

The urban population now accounts for well over 50% of the total global population — and more and more people are moving into cities every year. Peter Clucas looks at the issues facing European cities as they plan for expansion CITIES

Time to follow the leaders

CCOR DING to the United Nations, 6.3 billion people will be living in cities by 2050 — that is 67% of the world’s population. JLL’s international director of retail research and consulting, James Brown, said in a recent report: “Urbanisation is one of the most powerful forces, presenting some of the biggest challenges but also opportunities for real estate globally.” He continued: “What is striking about urbanisation today is the sheer scope and pace at which it is occurring. More

“What is striking about urbanisation today is the sheer scope and pace at which it is occurring. More than one million people move to cities globally every week James Brown Director, JLL

than one million people move to cities globally every week.” So how are cities planning for their futures? This is the theme of the MIPIM City Investment Forum, which is now in its fifth year. With participating cities including Barcelona, Hamburg, Manchester and Stockholm, the forum represents a wealth of knowledge that is shared at MIPIM. The theme for 2015 is the role of collaborative economic leadership in city growth and regeneration. “We believe that, in terms of

preview magazine I February 2015 I www.mipim.com

Focus “Of course we benchmark. Everyone should. But we believe that we do go our own way when it comes down to content” Olle Zetterberg CEO, Stockholm Business Region

city growth and management, the role of good leadership has been largely underestimated,” says an MCIF spokesperson. “It’s all the more important for cities to begin to share best practice, and to begin to implement good governance models based on examples of what works. We therefore want to look in more detail at the importance of, and the differences between, governance structures within cities that have proﬁted from strong and effective leadership, and what this means for ambitious, growing conurbations.” A new report on city leadership and the

HafenCity, Hamburg role of leadership across the local development system will be presented in outline at MIPIM 2015. It will compare case studies

from the US and Europe. The full report will be launched at the OECD LEED Forum in June 2015.

ATENOR GROUP is a real estate development company listed on NYSE Euronext Brussels. Its mission is to provide suitable answers to new challenges created by changes in urban and professional life. Enjoying a privileged relationship with public authorities, ATENOR GROUP carries out a policy of constructive dialogue with local politics and administrations. In this same spirit, ATENOR GROUP invests in large scale real estate projects which meet very strict criteria in terms of location, mixed use, diversiﬁcation, technical quality, economic efﬁciency, and sustainable development. Among our major projects in Belgium and abroad, three emblematic mixed real estate developments illustrate our committed focus on urban redevelopment: UP-site, The One, Brussels Europa and Port du Bon Dieu. UP-SITE (BRUSSELS): THE HIGHEST RESIDENTIAL TOWER IN BELGIUM

THE ONE, BRUSSELS EUROPA (BRUSSELS): VERTICAL DENSITY

PORT DU BON DIEU (NAMUR): SERENE URBAN REGENERATION ALONG THE RIVER

A unique concept in Belgium: Ideally located in Brussels, along the Canal, in a rapidly evolving and fashionable, UP-site combines the highest residential tower of Belgium (140 m height & 251 apartments) to a mixed set of residential units, ofﬁces, retails spaces, restaurants, a crèche and a promenade along the Canal. Conceived to respond to the new urban lifestyle, UP-site also offers exclusive services to its residents: concierge, spa & wellness center, private cinema, kids playroom, skydeck and interior gardens.

This mixed real estate project adds up residential housing, retail capacity, innovative workspaces and public spaces. It is ideally located in the beating heart of Brussels, in the center of the European district. The original conception of the project is designed to attract both residents and an innovative workforce, and to contribute therefore to the revitalization of this strategic European district.

Ideally located at the city’s doorstep, along the river Meuse, this mixed real estate project adds up residential housing, retail capacity and innovative workspaces. These developments meet the regional and local authorities’ desire to develop the entrance to the city, rehabilitate the Meuse bank docks and create value for the citizens, retailers, visitors and professionals. This mix between new urban functions will create a new community dynamics.

www.atenor.be

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Focus “If a city is seen as somewhere that has its act together, it is much more appealing to would-be investors” Sir Howard Bernstein Chief executive, Manchester City Council

HafenCity Hamburg is an example of success through strong leadership and partnership. The project is headed by a supervisory board consisting of city mayor Olaf Scholz and a team of four senators with responsibility for urban planning, ﬁnance, culture, and economic transport and innovation. Set in the dockland area south of the city centre, HafenCity now has over 2,000 residents and a working population of some 9,000 people. It is typical in that it adds to and integrates with the existing city and its infrastructure,

UP-site www.up-site.be

forming part of the gradual concentric expansion that is developing around the fringes of Hamburg. HafenCity CEO Juergen Bruns-Berentelg explains how the project has progressed in partnership with the Free and Hanseatic City of Hamburg: “HafenCity Hamburg is a 100% subsidiary of the city state of Hamburg. We are delivering the project on behalf of the city and we are linked to city politics via our supervisory board. The first mayor is our chairman, and four state ministers represent the other members. Hamburg can thus ensure the efficiency, speed and integrated perspective of the urban-development project via corporate structures, but the city remains in control and the project retains a high degree of public accountability.” Stockholm also has its challenges, experiencing a rapid growth in population and ongoing urbanisation. The first ever ‘Green Capital’ will invest more than €100bn up to 2021 in projects including 180,000 homes and supporting infrastructure.

The One, Brussels Europa www.theone.be

Hafen City CEO, Juergen Bruns-Berentelg Stockholm has an integrated environmentalmanagement system that takes into account environmental issues in all decisions and procurement processes, says Olle Zetterberg, CEO of Stockholm Business Region. “Each unit of the administration is required to identify and achieve the most cost-effective means to meet environmental targets,” he adds. Stockholm is located on 14 islands, which is challenging when it comes to connecting the city. The new Stockholm bypass (Forbifart Stockholm), which will take approximately 10 years to complete, is a motorway that runs

Port du Bon Dieu www.portdubondieu.be

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Focus from north to south of the capital. Some 17km of its 21 km length will be in tunnels, driving up the total cost to €2.5bn. As to where Stockholm looks for inspiration, Zetterberg says: “Of course we benchmark. Everyone should. But we believe that we do go our own way when it comes down to content.”

SCHNEIDER ELECTRIC TO LIGHT UP THE FAROES SCHNEIDER Electric has signed a contract to supply SEV, the main energy supplier in the Faroe Islands, with a new integrated solution for the complete management of the island’s electrical network for generation, transmission and distribution operations. With hydro and wind resources totalling almost 60% of the island’s power production, the challenge is to deliver continuous, stable and inexpensive electricity to the island’s inhabitants, while transitioning to a higher renewables model, reducing its diesel-dependency and maintaining grid security and stability.

Barcelona has a highly collaborative approach to leadership, which starts with strong city and political consensus and extends to international institutions and consultants. The city authorities cite their close working relationship with the Urban Land Institute as an example, along with collaborations with the OECD, UN-Habitat and the World Economic Forum. The Catalonian capital’s infrastructure issues are gathering pace as it progresses towards transforming itself into an innovation and logistics hub for southern Europe. According to Barcelona City Council, the projects currently under way “aim to satisfy logistics, internationalisation, accessibility, technological development, creativity, design and research needs for companies.” Barcelona’s vision of its future is based on “its own challenges and learning experiences.” But it also looks to other cities for inspiration, the city spokesperson adds: “London and Paris are, of course, a main source of inspiration. But they are not enough. Barcelona is inspired by, for example, Amsterdam’s international atmosphere; Manchester’s strategy to secure long-term growth as the second English metropolitan region; Hamburg’s excellent transport links and international connections; Stockholm’s long-term sustainable growth and development; Vienna’s cultural

heritage; and Milan’s industrial and fashion [prowess].” Sir Howard Bernstein, chief executive of Manchester City Council, observes that, in an era where major cities are in a global competition for investment, jobs and visitors, “having a strong sense of what your distinctive offer is in terms of culture and industry sectors and specialisms and how to create the conditions for growth is vital”. He adds: “If a city is seen as somewhere that has its act together, it is much more appealing to wouldbe investors.” Bernstein says that the main structural challenge that Manchester has faced over the years has been reinventing itself from an industrial, manufacturing city into a post-industrial, knowledge-based one. “We have achieved this through strong privatepublic partnerships, world-class academic institutions and the conscious support of key growth industries, including health and life sciences, digital and creative industries, and finance and professional services,” he says. In infrastructure terms, Manchester has massively improved its connectivity to meet business labour-market requirements through the expansion of the Metrolink tram network, as well as by improving its bus, road and rail infrastructure. The city is also lobbying hard for national infrastructure improvements, such as a high-speed rail link, which would deliver “much-needed connectivity and capacity improvements”, Bernstein adds. The other major infrastructure challenge is

Frederic Abbal, EVP Energy Business at Schneider Electric said: “This suite of integrated applications will build an efﬁcient and sustainable microgrid for SEV improving the planning of local renewable generation facilities based on real-time weather forecasts and asset management to match production plans with actual needs. Power Hub’s capabilities are an important step towards a new energy future, where renewable energy sources will play a much more prominent role.” Com City, Moscow

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Focus digital connectivity. In response, Manchester has formulated a detailed strategy to transform it into one of the “world’s most digital cities by 2020”. Bernstein adds: “We are open to ideas from everywhere, not just from European cities, but from world cities such as New York. In Manchester, we pride ourselves on our ambition, and we would hope that other cities have taken inspiration from us in turn.” Hamburg, Stock holm, Barcelona and Manchester have all identiﬁed development areas around the peripheries of their urbanised areas to gain pockets of development that together add up to a gradual expansion. Moscow has taken a radically different approach. The Russian capital has well-known trafﬁc problems — a short journey by car can take literally hours. It has four ring roads, but all are congested for much of the day. A look at Moscow’s metro map shows why. Line 5 circles the city centre and, from there, lines radiate like spider legs into the suburban districts. But as Moscow has expanded, its circle line has become relatively small, forcing commuters into their cars. In 2012, Russian prime minister Dmitry Medvedev announced the New Moscow initiative — a plan to more than double the size of the Russian capital by expanding southwest

TUESDAY 10 MARCH INTERNATIONAL MEGAPROJECTS: SOLUTIONS THAT WORK 11.00 - 12.30 Co-organiser: Kommersant

LEADING POWERHOUSES OF THE FUTURE – MIPIM CITY INVESTMENT FORUM

Barcelona stand at MIPIM up to 50km into the countryside and neighbouring towns. The rationale behind New Moscow is to leave behind trafﬁc-congested ‘Old Moscow’, as it will be called, and create a green, sustainable and attractive new city. Further phases of New Moscow may slow down as sanctions and recession push rental levels down and render it less attractive to developers. Ofﬁce rents are already falling

dramatically. Already, one of New Moscow’s major developments, the ﬁ rst phase of ComCity, is nearing completion. Including a new metro station, the mixed-use retail and ofﬁ ce project has been realised in just two years, thanks to strong backing from the government and investment from PPF of the Czech Republic.

CAPITAL INTELLIGENCE FINANCING infrastructure projects is notoriously difficult, not least in terms of striking a balance between capital outlay and performance. John Batten, global director of the Big Urban Clients programme at Arcadis, believes he has a solution. “A city should optimise its existing transport grid by investing in intelligent transport systems [ITS],” he says. “This will realise significant benefits with minimal capital investment. It’s an IT solution, with a low-impact capital outlay, rather than a bricks-and-mortar capital outlay.” The city of Amsterdam has engaged Arcadis to use ITS to smarten up its transport grids and “realise significant benefits” with minimal capital investment.

14.00 - 15.30 Organiser: Manchester

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Focus Torre Agbar in Barcelona

Given its clear reliance on jobs and employment, the office market will always ebb and flow alongside the economy. But the latest research shows that some office regions are bucking the general financial climate and new hotspots are emerging. Liz Morrell reports

THE OFFICE MARKET

Photo: AndresGarciaM /iStock

No avoiding the void C

BRE’s Global Office Rent Cycle MarketView, published in midDecember, revealed that in general rents are picking up across the world, thanks to the global economy’s improved performance. “The majority of the 19 office markets included in CBRE’s Q3 2014 Global Office Rental Cycle survey are in the upswing of the cycle,” the report says. However, the company pointed out that the momentum varies from region to region. “Most markets are at the point where rental growth is gathering pace, but the movement of markets through this cycle is very slow,” the report continues. According to Mike Keogh, associate director of research and strategy at TIAA Henderson Real Estate, the picture is mixed. “Office take-up has been more robust in Northern Europe,” he says. “Rents have grown here too, aided by limited development since 2008, which is encouraging very sharp pricing.” But elsewhere, pricing improvements have not been met by an uptick in leasing activity — a trend that is most notable in Southern Europe. “Office vacancy levels persist well above historic trends in most of Europe, not just the periphery,” Keogh adds. “Sticky void levels suggest office markets increasingly operate on a higher ‘natural’ vacancy rate closer to the US model, but so far without the dynamism of many US markets.” Cris Tollast, head of EMEA office agency and tenant representation at CBRE, believes there are some interesting trends emerging as economies struggle out of recession and their requirements change. “Technology companies are taking a greater market share, essentially driving leasing demand in many key markets,” he says. “This is a product of rapid growth and innovation in this sector,

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Istanbul

provision attract the best pool of talent, which impacts positively on a company’s bottom line over time.” Of course, prime office locations do not get much more prime than London. Powered by the strengthening UK economy, the capital continues to lead the way as an established and ever stronger office destination, says CBRE’s Holberton, who observes that the number of companies taking new space in London is up 35% on 10 years ago. “London continues to dominate the office market in terms of prime rents and growth, due to marked improvements in the economy and its prime position as a [financial] gateway Photo: OwenPrice /iStock

and an increasing locational focus on central urban areas.” This has been a particular trend in the Irish market, where Dublin is emerging as a new technology hub, fuelling demand for office space as a result. “In Dublin, there has been a plethora of recent large office transactions, driven by a cluster of technology firms attracted by its location, signs of robust recovery in the Irish economy and commitment to retain an attractive rate of corporate taxation,” says Richard Holberton, CBRE’s senior director of EMEA research and consulting. “This inward investment, alongside a strong local market recovery, is squeezing the availability of high-quality space, with vacancy rates at a record low. In turn, this is driving prime rents up at a rapid rate — 50% higher than just 12 months ago.” Andrew Burrell, head of EMEA forecasting at JLL, believes this is a trend that is set to continue. “Occupier demand is likely to remain strong for Dublin prime offices,” he says. “Rents are anticipated to increase further given the acute shortage of grade-A office space and the relatively low level of rents compared with the previous peaks.” In the office market across the EMEA region, there is a general trend towards recentralising to the core amenity rich areas, according to CBRE’s Tollast. “During the economic downturn, some companies were looking at cutting their cloth accordingly by relocating out of central locations to cheaper premises,” he says. “Today, this has shifted with the realisation that prime central locations with a good transport infrastructure and facilities

Photo: muratkoc /iStock

Focus

to Europe,” Holberton says. Spain, too, is seeing improvements in its domestic economy, along with signs of a return of business and consumer conﬁdence, which is in turn bolstering local market competitiveness in cities such as Barcelona and Madrid. “This means companies are beginning to come back to the market and take space, [as is] evidenced by a suite of SME deals in such locations in recent months,” Holberton adds. In Spain’s largest market, Madrid, prime rents have corrected by some 40% from their peak of €40 per sq m per month in 2008, according to Colliers International. “Currently, Spanish markets are the hottest in EMEA, offering opportunities for corporate occupiers,” says JLL’s Burrell, who believes this trend will continue for some time. “For the next few quarters, we foresee more strong rental growth in Madrid and Barcelona,” he says. However, the thin development pipeline may mean that these markets will struggle to fulﬁl occupier demand. “Rents in Barcelona and Madrid are still far below their historic peak, but have risen rapidly over recent quarters,” Burrell adds.

“Technology companies are taking greater market share, essentially driving leasing demand in many key markets” Cris Tollast Managing director, CBRE

Dublin in Ireland is becoming a technology hub, which is increasing demand for office space preview magazine I February 2015 I www.mipim.com

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Warsaw is seeing significant city-centre development

“Office vacancy levels persist well above historic trends in most of Europe”

Photo: eAndre- /iStock

Focus

Mike Keogh Associate director, TIAA Henderson

Bruno Berretta, Colliers’ senior research analyst, EMEA research and forecasting, agrees: “We are indeed seeing an increasing upward pressure on prime rents, with this momentum [expected] to build further in 2015 if the economy stays on track. We expect prime rents in Madrid to move above €25 per sq m per month in the ﬁrst quarter of 2015 from their cyclical trough of €24.25.” Meanwhile, the renewed level of activity is causing problems for many corporate occupiers. While most are less worried about cost containment than they were two years ago, space is at a premium. “Those wishing to make strategic relocations will ﬁnd a lack of prime stock in most major cities, such

as London and Dublin, caused by a lack of speculative new builds in the last few years and the gradual absorption of ofﬁce space,” CBRE’s Tollast says. In Central and Eastern Europe, things are

also picking up. “There is a signiﬁcant ‘renewing’ of stock going on at present, especially in the core Warsaw, Prague and Bratislava markets,” says Damian Harrington, regional director of research for Colliers International, Eastern Europe. “This is resulting in the

IPA stand Visit us at S w.sipa.nu no. 22:02 ww

This is SIPA: MISSION

Q Q Q Q Q Q

VISION

Network organization for the Nordic Real Estate industry Promote networking amongst its members Provide latest industry trends, best practice and developments in meetings and seminars To overlook national and EU property legislation Support members aspirations, inspirations and expectations to invest in the Nordic and EU countries Provide interesting participation in industry fairs and city tours Continuous activities to provide value for its members through establishing SIPA as the most interesting and greatest networking platform in the Nordic Real Estate Investment industry To provide industry information and knowledge to its members. Supporting the member to further development and enhancement of their business

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Focus will continue to rise thanks to limited quality space and gradual economic recovery, but that the rate will vary from location to location. “From mid-2015 onwards, expansionary demand should support further growth,” he says. “Conditions will continue to vary, with further strong growth expected in London, the Nordic hot spots, including Oslo and Stockholm, and the Eurozone periphery.”

almost doubled in size in just over a decade, illustrating just how sought-after the city has become. The latest research from CBRE suggests that this can be attributed to several factors, including the emergence of Istanbul — and the greater Marmara region — as a manufacturing hub, driven by an expanding middle class flexing its purchasing power, a young, skilled yet cost-efficient workforce, and a strategic geographic location. Although previously dominated by sub-standard building stock, CBRE believes Istanbul is set to change as modern, energy-efficient office stock comes on to the market. By 2023, more than seven million buildings in Turkey are due to be replaced as part of a targeted rebuild of 60% of the country’s building stock. Two million of the properties will be within the Istanbul metropolitan municipality. As a result, CBRE predicts there will be higher vacancy rates in the older office schemes in the city’s prime and central locations as the market becomes more competitive. So what of 2015? JLL’s Burrell believes rents

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WEDNESDAY 11 MARCH OCCUPIERS’ WORKSHOP 11:00 - 13:00 (Invitation only) Sponsored by Schneider Electric Organised in association with CoreNet Global and ADI The Occupiers’ Workshop, a new format dedicated to corporate real estate professionals, will provide a forum for debate and discussion

H el

Rents in Euro per sqm

484

239

419

328

705

1 250

WHAT IS INCLUDED IN THE RENT? Cost related to property tax, operation, maintenance, services, replacement, date of vacation, administration etc

–36

–9

–38

–24

–64

Net rent in Euro per sqm

448

229

380

304

681

1 186

AREA TO COMPARE? Area adjustment factor, %

100

394

229

380

252

565

866

REAL NET RENT to compare in Euro per sqm

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COMPARING PRIME RENTS IN CBD

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SIPA-Index 2015

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development of large-scale, city-centre offices, which bucks the historic trend of developing in non-central locations.” Demand across the region continues to be driven by outsourcing and offshoring, which has increased by 20% per year since 2009, according to Harrington — a growth trajectory he believes will continue. “High growth is expected in the years ahead as occupiers continue to select the region as their outsourcing destination,” he adds. And a stronger economic recovery in parts of Scandinavia is also fuelling the take-up of office space, Berretta reports. The Nordic region is seeing increases in demand, diminishing supply levels and prospects of rental growth, he says, adding that, in Sweden in particular, “prime rents are either returning to pre-crisis peaks or, in some cases, hitting new highs”. But newer emerging centres such as Istanbul are also increasing in dominance too. In Istanbul, the market is undergoing a rapid transformation as both local and international occupiers fi ght for grade-A offi ce space. Indeed, the offi ce market there has

Focus

Logicor’s Onyx250, Runcorn UK

LOGISTICS

Very good in parts For some logistics markets — the UK and Germany spring to mind — 2014 has been an exceptional year. For others, life is tougher. But that’s not necessarily bad news for logistics investors, Paul Strohm reports

activity is concentrated, which starts below the UK city CCUPIER demand for logistics property of Birmingham and sweeps through northern France, closely follows the performance of the econBelgium, the Netherlands and Germany to finish in midomies of individual countries, according to Central Europe, is virtually unchanged. Savills’ head of UK industrial and logistics But the geographical pattern of occuresearch, Kevin Mofid. pier demand is not necessarily reflectWhile there have been record levels ed by the logistics activity of investors, of take-up in Germany and take-up “Our strategy [is to] many of which are taking advantage in the UK is up 50% to 2.6m sq m, of the current economic conditions demand for space is hovering below acquire value-add and property pricing to boost their average in France — like its econo- logistics assets in my, Mofid says. Meanwhile Spain has important European portfolios. head of EMEA logistics and inseen an uptick in occupier demand sub-markets, leased JLL dustrial research Alexandra Tornow mirroring that nation’s improving to strong customers” predicted in November 2014 that total economic prospects. investment turnover for the EMEA loPart of the buzz in both the UK and Nick Cook Germany has resulted from the flur- Chief acquisitions officer, IDI Gazeley gistics sector for the full year of 2014 would amount to about €20bn. In the ry of activity caused by the surge in first three quarters of 2014, investment activity pushed e-commerce and the shift in shopping patterns as onprime logistics yields down 40 bps to 6.9%, compared line sales increase. But other European countries to the corresponding point in 2013. This, combined have been less affected by the move to virtual retailwith improving rental growth prospects, was predicting and the traditional property dynamics still tend to ed to push capital values up by more than 4% by the apply. Mofid says that the crescent shape that can be end of 2014. drawn on a map of Europe to indicate how logistics preview magazine I February 2015 I www.mipim.com

Focus Portfolio acquisitions, such as those that have been key to the rapid growth of US investment house Blackstone’s European logistics platform Logicor, featured strongly in the logistics investment landscape in 2014 and provide some indication of where the market sees its future hotspots. Of the €12.9bn of investment transactions which JLL research reveals took place in the EMEA region in the ﬁrst three quarters of 2014, €5.4bn was accounted for by portfolio acquisitions. Portfolio sales totalling more than €1bn occurred in both the UK and Germany, and portfolio deals worth €550m and €530m took place in France and in Sweden respectively, according to JLL. Meanwhile, UK REIT SEGRO intends to strengthen its focus on major logistics hubs and corridors in the UK and continental Europe. Through its SEGRO European Logistics Partnership, the company acquired a 68,800sq m portfolio of three assets from Standard Life Investments’ European Property Growth Fund for €42.9m: 25,800 sq m at Dugny, a northeast suburb of Paris close to Le Bourget airport; 21,800 sq m in Hostivice, a western suburb of Prague; and a 21,200-sq m warehouse in the Dusseldorf region. Meanwhile, Brookfield’s logistics investment and development arm, IDI Gazeley, acquired a portfolio of 13 logistics assets from Minneapolis-headquartered CarVal Investors. The 228,000-sq m portfolio includes 11 buildings located within the metropolitan areas of Paris and Lyon, and two buildings located in Budapest, Hungary. “This off-market portfolio acquisition ﬁts squarely with our strategy of acquiring value-add logistics assets in important European sub-markets, leased to strong customers,” says IDI Gazeley’s chief acquisitions

Logicor’s IAC, Coleshill, UK ofﬁcer, Nick Cook. The deal — IDI Gazeley’s second major portfolio acquisition in six months — brought the total number of logistics assets acquired by the company during 2014 to 17, adding a total of 351,000 sq m to its portfolio. Previously, IDI Gazeley acquired 97,000-sq m, including a 57,105-sq m warehouse at Magna Park Monticelli, north of Milan; a 19,486-sq m warehouse close to Marseille’s container terminal; and a 20,827-sq m warehouse north of Frankfurt. In Central Europe, TPG and Ivanhoe C ambr idge’s joi ntly ow ned, Prag ueheadquartered logistics company P3 has also

LOGISTIS ON THE MOVE PARIS-based AEW Europe recently raised €820m for its Logistis fund, bringing the fund’s total equity to more than €1.3bn. It is planning to build a portfolio of grade-A logistics parks in prominent locations across the main hubs in continental Europe. Expansion has already started into Germany. AEW says investments will be mainly focused on Germany, Benelux and selected markets in Central Europe. The current portfolio comprises 21 estates located in France, Germany, Italy, Spain and Belgium with a total value of about €900m. Logistis fund manager Remy Vertupier says: “We see many attractive opportunities in our target markets. We are actively working on a number of acquisition opportunities to deploy this additional capital, which will enable us to offer even greater panEuropean coverage.”

Logicor’s Travis Perkins, Brackmills, UK

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Focus “The Czech Republic is a strategic market for us, because it sits at the crossroads of the main transport routes between Western, Central and Eastern Europe” Ian Worboys CEO, P3 Logistics Parks

been on the acquisition trail and paid Tristan Capital Partners and VGP €523m for 11 logistics parks in the Czech Republic. The acquisition provided a total of 627,000 sq m, plus land on which to develop a further 125,000 sq m of space. The portfolio included 58 warehouses. P3 Logistic Parks’ CEO, Ian Worboys, says the Czech Republic “is a strategic market for us, because it sits at the crossroads of the main transport routes between Western, Central and Eastern Europe”.

SEGRO European Logistics Partnership recently acquired the 51,300-sq m logistics facility in Marseille, France, bought on a 7.4% yield from an unnamed vendor for €35m. The building comprises two units. A 39,300-sq m warehouse completed in May 2014 is let on a 12-year lease to Samada, a logistics provider and subsidiary of French grocery retailer Monoprix, part of Groupe Casino. The adjoining 12,000-sq m spec-built second unit was completed in December 2014 and is currently under offer to a prospective tenant. P3 also bought a portfolio from CA Immobilien Anlagen, consisting of two logistics parks in Poland and one in Romania,

providing a total of 467,000 sq m. Worboys says P3 now operates more than 2.9 million sq m of logistics space and has one of the

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Focus largest logistics land banks in Europe. Logicor has not been out of the property trade press headlines much over the last year. It is hardly surprising, then, that the company has doubled the physical size of its portfolio from 2.9 million sq m to 5.8 million sq m in the 12 months to September 2014 — an increase that also represents a €1.5bn hike in its asset strength. Expansion on such a scale has been achieved chiefly through portfolio acquisitions, although one or two individual add-on acquisitions have been made to round off portfolios. Working at maximum operating efﬁciency is crucial for Logicor and establishing critical mass in each territory is key to this. “We need 300,000 to 400,000 sq m in a given market before we can justify having a team there,” CEO Mo Barzegar says. In terms of value, Logicor’s portfolio is 30% in the UK, 25% in France and 15% in Poland. “These are our larger markets,” Barzegar reports. While Germany is currently only 10% of the portfolio, Barzegar and his team are

Europolis Park Bucharest working on deals that could have considerably increased that share by the time MIPIM opens its doors in March. Southern Europe is clearly in Logicor’s sights, as the company’s November 2014 acquisition in Portugal conﬁrmed. Iberia and Italy combined now represent about 15% of the portfolio. The Netherlands represents 5%. Logicor’s expansion is set to continue and, like

a number of logistics-oriented investors, its acquisition trail and future targets give a strong clue as to the future lie of the land for the sector in 2015. Although Barzegar is unwilling to divulge too many speciﬁcs, the GermanyNetherlands-Belgium logistics corridor is one area in which the company would like more representation. And following the recent, opportunistic acquisition of a 185,000-sq m

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Focus portfolio mostly at Azambuja, to the north east of Lisbon, from funds managed by Novo Banco Group (formerly Banco Espirito Santo), Barzegar would like to increase the size of its portfolio in Portugal to bring it up to the threshold. The deal did, however, take Logicor’s combined Spanish/Portuguese portfolio to more than 825,000 sq m. Barzegar is optimistic about the future of Portugal. He points to the country’s economic recovery on the back of export growth, which has led to a growth in GDP of 5%. “That is quite healthy compared to the rest of the eurozone and employment is also recovering,” he says, adding that Portugal’s prospects are good especially in the Lisbon metropolitan area. “Our core focuses are the main economies and the main drivers of European GDP, notably the UK, Germany, France, the Netherlands, Italy, Spain and Portugal,” Barzegar says. “I still see good investment opportunities across the regions in which we operate. We have a lot of resources and are constantly evaluating opportunities in the market — we can move extremely quickly when we see the right opportunity.” Logicor’s recent acquisitions have included SEB Asset Management’s entire logistics property portfolio, which was bought for €275m. The portfolio comprises 18 assets, totalling 434,300-sq m in Germany, France, Austria, Spain, the Netherlands, the UK, Norway and Hungary. Logicor also bought a 185,331-sq m UK portfolio of seven properties from SEGRO for £153.3m. The portfolio comprises assets located in the UK towns of Bardon, Bicester, Maidstone, Shefﬁeld and Swindon, as well as one in the

The Logistics pavilion, designed by AW2 and sponsored by CTP, is location on Level -1 of the Palais. Exhibitors include: • AEW Europe • Concerto • Logicor • Sior • Panafrance • Barcelona

WEDNESDAY 11 MARCH Logicor’s Mo Barzegar

“We’ll continue to buy from what are fundamentally distressed sellers for as long as we can”

‘FLASH MOB LOGISTICS’ 9.30 - 10.30 Make new connections with developers and operators in a dynamic networking space on the logistics pavilion.

TRENDS & OPPORTUNITIES IN LOGISTICS INFRASTRUCTURES: HOW LOGISTICS RESHAPE TERRITORIES 11.30 - 13.00

Mo Barzegar CEO, Logicor

county of Norfolk. Barzegar sums his company’s approach, which perhaps typiﬁes the present market: “The focus has been on acquiring assets at a discount to replacement cost. We’ll continue to buy from what are fundamentally distressed sellers for as long as we can.”

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P3 Logistics Park’s facility in Poznan, Poland: P3 now operates more than 2.9 million sq m of logistics space and has one of the largest logistics land banks in Europe. preview magazine I February 2015 I www.mipim.com

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Frankfurt’s MyZeil centre, recently coming under management by ECE

EUROPEAN RETAIL

Cautious conﬁdence breaks out Despite cautious consumerism and the ongoing challenge from deep discounters and online players, Europe’s major markets are hoping for a stronger year as retail sales creep up. Mark Faithfull reports

its first phase open in late 2017 or EVERAL years of lowearly 2018. Meanwhile, in Spain, level shopping centre de- “We have a very positive Intu Costa del Sol, the extensive velopment and shifting view of the long-term Malaga mixed-use scheme backed patterns of European conprospects for Spain” by Intu Group and Spanishsumerism have reshaped the rebased Eurofund, is the latest matail market across the continent. Martin Breeden jor Iberian development to be However, in early 2015, it is some Regional director, Intu Properties confirmed. of those countries that were hardThere has been plenty of acquisiest hit by austerity and the debt crition activity in Italy and Spain over the last 12 months. sis that are attracting the strongest investment interest. In December, Orion Capital Managers bought a portMuch attention is on Italy, thanks in no small part to folio of three shopping centres in northeast Italy from the €1.64bn Westfield Milan scheme, which is set to see preview magazine I February 2015 I www.mipim.com

Focus Unicomm, including the 50,900-sq m Palladio shopping centre in Vicenza, the 39,800-sq m Emisfero in Fiume Veneto and the 35,900sq m Emisfero in Monfalcone. The company also bought British Land’s 50% stake in Puerto Venecia in Zaragoza in the third quarter of last year Orion Capital Managers’ founding partner and managing director, Aref Lahham, is bullish about Italy and Spain. “Puerto Venecia has traded incredibly well since it opened, with more than 16 million shoppers passing through its doors in its first year,” he says. “We firmly believe there is consolidation of the retail property market under way in Spain and that the major regional centres will continue to perform and improve as the country comes out of recession.” Mediterranean appeal is spreading beyond Europe, with Alaska Permanent Fund Corporation (APFC) making its first investment in continental European real estate by forming a retail joint venture, represented by Amsterdam-based CBRE Global Investors, with French-based real estate developer Immochan. The partnership gives APFC a 50% stake in two of Immochan’s shopping centres in Spain and Portugal for €280m. “Other investments will potentially be added to the strategic joint venture,” the partners said of the deal. For Intu, Malaga represents its first development but its second investment. Intu regional director Martin Breeden says that the company chose Spain for its first international move — at Parque Principado in Oviedo — and for further development because it felt that the country offered the best combination of value and consumer spend. “We have a very positive view of the long-term prospects for Spain and we feel that developing key sites in the country is the right way forward,” he says. In France, 2015 will be about unravelling the huge deals of 2014. The headline is clearly last

Unibail-Rodamco’s Mall of Scandinavia in Stockholm

Intu Costa del Sol, Malaga

“Berlin is the biggest and most dynamic shoppingcentre market in Germany. There are always opportunities to improve on the existing supply” Dr Karl Reinitzhuber Co-chief executive, MFI

year’s bid by Klepierre for Dutch rival Corio, approved by shareholders in December, which could help kick off the sort of European consolidation that has happened in the US. The French shopping centre operator has also sold 126 Carrefour-anchored malls for €2bn in order to focus on larger centres. Carrefour, meanwhile, through its recently created shopping centre company Carmila, wants to renovate those medium-sized centres, as well as others bought from Europe’s largest real estate company, Unibail-Rodamco. For its part, Unibail-Rodamco is now focusing on large-scale, destination malls to compete with online buying. The company will open two more major projects this year — one in France and the other in Sweden. Polygone Riviera, a joint venture with SOCRI, will open in Cagnes-sur-Mer in southeast France in October, while Mall of Scandinavia will open in the same month in Stockholm.

“Polygone Riviera is an open-air lifestyle mall, more like those you might find in California,” says Unibail-Rodamco’s chief operating officer, Jean-Marie Tritant. “It will be unlike anything else found in France, with a clear focus on leisure, culture and art.” Unibail-Rodamco also plans to add a second mall in Berlin and has increased its investment in the first. “Berlin is the biggest and most dynamic shopping-centre market in Germany,” says Dr Karl Reinitzhuber, co-chief executive officer of Unibail-Rodamco subsidiary MFI. “The market will never be saturated. There are always opportunities to improve on the existing supply.” Unibail-Rodamco owns nine German malls valued at €4.1bn and is looking for an opportunity to acquire or build a second centre in the capital. It is also spending more than €100m renovating its Gropius Passagen mall. The company may buy or build malls in Germany’s seven largest cities, including Hamburg, Munich and Cologne, if it can find deals that match its criteria for size, customers and return on investment (ROI). Hamburg (up 6.5% quarter-over-quarter) and Munich (up 5.6% quarter-over-quarter) were among the few EMEA markets to record rental growth in the third quarter of 2014, reflecting the fact that, despite the recent economic headlines, domestic consumption in Germany remains firm. German retail sales bounced back strongly in October after a steep drop

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Focus Multi Turkey’s Forum Diyarbakir

in September, with data from the Federal Statistical Office showing retail sales were up 1.7% from October 2013. The final month of 2014 also saw Deutsche Asset & Wealth Management’s real estate investment business acquire the PalaisQuartier site in Frankfurt am Main for approximately €800m. ECE has invested a 10% stake in the transaction and will assume management of the adjacent shopping mall, MyZeil, which forms part of the complex. The strongest economic growth of Europe’s big five is in the UK. In the most recent retail sales figures for October 2014, sales increased by 4.3% compared with October 2013 — the 19th period of consecutive year-on-year growth. With little new development in 2014, the big news in the UK has been major purchases. Land Securities completed its purchase of a 30% stake in the Bluewater shopping centre for £656m (€825m) from Lend Lease for an overall net initial yield after expiry of rent-free periods of 4.1%. Land Securities is also developing Buchanan Galleries in Glasgow — having bought the remaining 50% holding of TH Real Estate in October — and Westgate in Oxford, the latter with The Crown Estate. TH Real Estate is developing the St James Centre in Edinburgh and Hammerson is on site with Victoria Gate in Leeds, while Intu has a series of refurbishments under way and is likely to submit plans for Nottingham during 2015. To Europe’s east, Russia and Turkey remain the strongest pipeline drivers and, along with France, account for 60% of new space in Europe, according to DTZ research. Yet a deflating rouble will inevitably have an

“We see Turkey as an exciting and growing market and one where we will deliver best-in-class shopping experiences to a growing population” Kemal Kaya Chairman, Multi Turkey

impact on the five million sq m of shopping centre space currently under construction in Russia. By contrast, after contracting in 2014, Turkey’s economy will start rebounding in 2015 and is expected to grow throughout the year. Reflecting growing confidence in the market, Blackstone divisions Multi and Qubicon have formed an alliance to create Turkey’s largest

shopping centre management and development company, managing 14 shopping centres and four new developments totalling over one million sq m. Kemal Kaya, the recently appointed non-executive chairman of Multi Turkey, says: “We see Turkey as an exciting and growing market and one where we will deliver best-in-class shopping experiences to a growing population.”

Unibail-Rodamco’s Polygone Riviera in Cagnes-sur-Mer, France

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Focus ALTERNATIVE ASSETS

The ﬂight to specialist The surging popularity and intense competition for core prime property investments among the traditional asset-class favourites — ofﬁces, retail and industrial/logistics — have persuaded some investors to pay more attention to the category sometimes referred to as ‘other’. Paul Strohm reports

conducted by JLL in 2014 also revealed that 90% of inHE RECENT increase in demand for assets vestors were planning to further increase allocations to on the alternative end of the property specthese categories over the next five years. trum has caused some to challenge the tenHotels and hospitality, student housing and healthcare dency to refer to them as ‘alternative’ investwere the favoured secments. ‘Specialist’ seems a better fit, it is tors for the highest proargued, particularly in view of the speportion of investors, cific management issues to which some “Healthcare is quite complex according to the JLL reof these investments give rise. and the residents are search, but private rentThe defi nition of ‘alternative’ is wide: ed housing, infrastrucanything that is not retail, office or in- vulnerable, so management ture and renewables, dustrial, according to Rob Martin, di- needs to be carried out well and leisure were all exrector of research at Legal & General and sustainably” pected to see an in(L&G) Property. Residential property Rob Martin crease in allocation. is consequently a large component of The rise in the popularthe potential investment stock, along Director of research, L&G Property ity of these alternativewith quasi-residential uses such as care asset types is attributed homes and student accommodation. to a variety of factors. The scarcity and increasing cost Others include healthcare property, including hospitals, of the best examples of the more traditional asset cateclinics and local general-practice doctors’ surgeries, leigories is one reason that investors have been pushed tosure developments, such as cinemas, leisure parks, howard the less traditional investments. tels, bars and bingo halls, and infrastructure, including But the motives behind the drive into alternative assets wind farms and storage caverns. are far wider than the shortage of stock in the more traProperty researcher IPD says there has been a signifditional segments of the market, according to L&G’s icant rise in property funds’ allocations to alternative Martin. “There are deeper changes going on in the real estate over the last 10 years and that these assets economy and rental growth prospects have slowed in now make up about 15% of the IPD index. A survey

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The City of Arts and Sciences entertainment and cultural centre in Valencia, Spain

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Focus ACADEMICALLY INCLINED MUNICH-based International Campus invests in, develops and operates residential accommodation for students. It expanded out of its home market into the Netherlands in November, citing an expected shortage of 28,000 student apartments in Holland by 2020 as the motive. The company has hooked up with Delft-based Stichting DUWO, which develops, owns and manages student accommodation in the Netherlands, to launch Network Cum Laude (NCL), which is intended to be an international, not-for-profit alliance of student accommodation operators, universities and service providers. International Campus’ The Fizz student accommodation in Berlin company does not have a specific numerical the conventional sectors,” he says. Notable is target for the size of its alternative-investment the pressure that online shopping is putting on holdings. However, it currently has between conventional retail. €2bn and €2.3bn in hotels and it could have But other reasons are pulling investors, too. similar holdings in alternatives in the short to IPD cites the rise of leases linked to the retailmedium term, according to senior fund manprice index, particularly in the hotel business. ager for alternatives and But the researcher also special situations, Hideki points out that demographKurata. ic changes are strengthen- “Alternatives are “As the market matures, ing the case for investment going to become the asset class will mature in healthcare assets and increasingly relevant significantly,” Kurata says. student accommodation. as time goes on” So far, most of AXA Real “Alternatives are going to Estate’s alternative investbecome increasingly rele- James Lass ments are in data centres vant as time goes on,” says Fund manager, Schroder REIM and healthcare, including James Lass, fund manelderly and assisted-living accommodation, ager with Schroder Real Estate Investment as well as hospitals. Management. Lass adds that the popularity of AXA’s geographical priority is core Europe, alternatives has increased during the current specifically the UK, Germany, France and, to part of the economic cycle, because the more a lesser extent, Spain and Italy. However, it is traditional sectors are experiencing yield comstill refining its strategy and tactics with repression and the search is on for higher yields. spect to these sub-groups of alternative assets. This coincides with demographic changes that Some of the alternative-asset types, such as have created a need for investment in social healthcare accommodation, are very specific and demographic infrastructure, Lass obto the country of location for legal and culturserves, particularly as public funding is being al reasons, while hotels and data centres are a reduced or diverted into other areas. more universal European product. “Data centres are pan-European and the underlying deAXA Real Estate began investing in alternamand is common to all countries across the tives in 2012 and is thought to have close to scope, so you do have a relatively standardised €400m in the segment, excluding hotels. The preview magazine I February 2015 I www.mipim.com

“On the one hand, NCL offers all students a range of services to make their academic life more comfortable. On the other hand, NCL provides a platform that allows its co-operation partners to optimise utilisation and business processes,” says International Campus executive board member Roman Diehl. Germany’s Standing Conference of the Ministers of Education and Cultural Affairs (KMK) recently raised its student-number forecasts and expects that half a million will begin university in 2020. International Campus recently completed buildings in Freiburg and Berlin under ‘The Fizz’ banner. The Fizz Freiburg has 149 fully furnished one- and two-room apartments, each between 27 sq m and 30 sq m. The development represents an investment of €22m and the allinclusive rents are about €450 per month. The Fizz Berlin, which has 212 apartments averaging 21 sq m each, costs students upwards of €495 per month.

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Focus

Schroders, as an investment house, has 5% to 7% in alternatives, consistent with the market, but is actively looking to increase the weighting, according to James Lass. Schroders invests in healthcare. “We also like leisure because there has been robust spending on leisure through the downturn,” Lass says, explaining that the ﬁrm includes hotels, bars, bingo halls and cinemas in the ‘leisure’

“It is a maturing sector and there is going to be growing investor confidence” John Yeend Director, Lasalle Investment Management

LaSalle Investment Management’s John Yeend

category. And, while automotive is a small component of AXA’s alternatives line-up and it has already divested some fuel forecourts, Schroders is keen on auto showrooms. “Car showrooms are a part of the retail environment that has performed strongly. They have outperformed expectations and this has translated into rental growth,” Lass says. He adds: “We also like student accommodation

because there is strong occupier demand-led rental growth.” LaSalle Investment Management (LIM) has also invested strongly in student accommodation, spending more than £230m on behalf of funds in the ﬁrst 10 months of last year. During October alone, it spent £80m (€100m) on four such assets, three of which it bought for £46.5m for European clients. The accommodation buildings are in London, Oxford and Cardiff and have a total of 398 beds. LIM also paid £33.5m for a 301-room property in Bristol. LIM now manages about £500m of equity in the sector — £400m on behalf of investment funds, and £100m for debt funds. LIM director John Yeend says that lease lengths have fallen across the mainstream asset classes. The ﬁrm started with investments in hotels, where long leases could still be obtained, along with index-linked rents. Then, with experience and the better knowledge that went with it, it started to consider hotels that did not have long leases. “The fundamentals have got to be there,” Yeend adds. These assets should be of high quality and purpose Photo: ppart /iStock

asset type,” Kurata adds. AXA will look at hospital investments in most developed countries, such as the UK and France, but Kurata reports that healthcare is an overcrowded sector in Germany. “At the end of the day, you have to look at the sector dynamics and, in particular, the emphasis on private-pay or public-pay,” he says. “Each country and region has different dynamics. What AXA brings to the party is the ability to read these dynamics.” One of the themes common to many alternative property-asset types is the need for an operator — and the quality of an investment can be highly dependent on the ability of that operator. Operator dependence is particularly the case in healthcare, elderly care and hospitality, Kurata points out, stressing the need for “professionally run businesses” in these sectors. But the returns are higher than in other asset classes to reflect this additional risk. Kurata has recently studied care homes in Germany and the yield shift between 2007 and the present. During this period, he has observed a steady 300 bps yield gap between prime offices and prime elderly-care assets. “Essentially, you have a 3% risk premium on those assets,” he adds. And according to Kurata, when care homes are compared to residential property, there is the problem of profitability. “They must stay on a higher yield because of the complexity of underwriting and understanding the underlying business,” he says. Educational property is marginal in AXA’s current portfolio. “Student accommodation is somewhat linked to residential, but is operational in nature,” Kurata says. “More can be done, but the challenge is the lack of good operators of student housing, except perhaps in the UK.” The major obstacle, he adds, is to find good operators and, in some instances, investors have even launched their own. So why bother with alternative investments? Kurata says that the reasons for having alternative assets are partly as a diversification and partly as a bet on the future.

Spa House in Polish town Kudowa Zdroj

preview magazine I February 2015 I www.mipim.com

built, in which case the yield will be about 4.5%, with a turnover lease 150 bps to 200 bps higher, he says. But the nature of higher education and the annual turnover of occupants in student housing means that it can be index-linked with reviews on an annual basis. And, as it has become more experienced in this sub-sector, LIM has moved from leasing accommodation buildings to universities, enabling them to manage the process of lettings to students, to letting to students directly. It is all part of the risk-reward balance, Yeend says, adding that yields on buildings let to universities have come down, while yields on assets let directly are between 5.75% and 6%. “It is a maturing sector and there is going to be growing investor conﬁdence,” he says. Institutional money is recognising that student housing yields higher than residential, but it is a quasi-residential investment. There is a higher risk in letting directly, but this does provide an opportunity to manage yield and drive a higher income stream, Yeend observes. LIM has looked at other alternatives, including healthcare assets and hospitals. Of care homes, Yeend says the opportunities are “quite granular” because of the variations in asset quality. The ﬁrm has not yet pursued infrastructure opportunities and, although it has looked at waste-to-power in some detail, this “veers too far away from an interest in land and into technology”, he says.

the CarePlaces Fund, a specialist healthcare property fund managed by Bridges Ventures in partnership with care-homes developer Castleoak. The acquisition, which showed a yield of 5.5%, brought L&G’s investment in care homes to £220m. “The lease terms in alternative sectors are relatively long — 20 to 25 years — and often linked to inﬂation, so you have got a stable starting yield and rental growth over time,” Martin says, adding that this compares to ﬁve- to 10-year leases on commercial property, combined with much more volatile occupier markets.

“Cinemas are expensive beasts to build and hard to adapt to other uses” The Uithof university campus in Utrecht, The Netherlands

John Sullivan MD DCinex Consulting

operates, there are opportunities to replace hospitals with smaller buildings and include other facilities on the sites, such as care homes, rehabilitation buildings and housing. “It is the same ecosystem, but a complex asset and that needs real estate capability,” Martin says.

Martin also alludes to the additional management burden that this type of investment brings. “Healthcare is quite complex and the residents are vulnerable, so management needs to be carried out well and sustainably. The part that we play, when we make a purchase, is to do a lot of due diligence,” he adds. There are many under-exploited opportunities too. In the UK, for example, the National Health Service has many large and obsolete hospitals, often on sprawling sites. But because of differences in its needs owing to dramatic changes in the way the health service now Photo: TBE /iStock

Among L&G’s most recent alternative purchases was the £25.2m acquisition of a portfolio of three care homes in the UK from

Photo: VLIET /iStock

Focus

Biomedical Research Center Giessen, Hesse, Germany

Cinemas are among the most specialised leisure assets and although, in the past, redundant cinemas have found a few more years of use as bingo halls or nightclubs, these were by no means the stuff of prime investments. The reality is that there are few, if any, alternative uses for a cinema, so it is important to buy at the right part of the cycle. However, cinemas are proving remarkably resilient, according to John Sullivan, managing director of DCinex Consulting. He adds: “I think they have a 25 to 30 year lifespan.” But Sullivan warns: “Cinemas are expensive beasts to build and hard to adapt to other uses.” Sullivan says there has been a “spate of older boxes of 25 to 30 years on the market for another lease, but I don’t think they have 50 years in them”. He notes that the business underlying their success is very much of the 21st century and location is critical. Cinemas must be part of an established location rather than stand-alone. This restricts opportunities to the more markets because those locations, frequently a shopping centre, have already been exploited — especially where much of the shoppingcentre stock is new, such as in Eastern Europe. However, Sullivan says there are opportunities

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in Germany, Italy and France, all of which “need to look at their cinema provision”. But successful investment in cinemas is not just about buying the physical box: the latest technology is required to compete, not just with other cinemas but with high-definition widescreen televisions fed by the new generation of digital streaming services, such as Netflix and Amazon. It makes sense that people will only go out to experience something that cannot be experienced at home. “There is very limited consumer appetite for any mediocrity in cinema. A lot survived until four or five years ago, because there was a bit of a window during which you could only see Hollywood films in cinemas,” Sullivan says. IMAX is going from strength to strength and ATMOS sound is revolutionising cinema, he adds. Even a strong covenant cannot overcome the impediment of being located “in an old box”, Sullivan says, and in such cases an investment yield of 10% would not be uncommon. That compares with new, state-of-the-art facilities that might change hands at 6% to 7.5%, depending on the strength of the operator, Sullivan adds.

Photo: matthewleesdixon /iStock

Focus

Shopping centre, cinemas and restaurants at the busy Sony Centre in Potsdamer Platz in Berlin

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Focus RESIDENTIAL

Still safe as houses When French novelist Jean-Baptiste Alphonse Karr penned his epigram ‘Plus ca change, plus c’est la meme chose’, he wasn’t talking about the residential investment market. But he could well have been, writes Steve Killick

HERE was a time some 50 years ago, when the big UK financial institutions such as Prudential would own what were known as mansion blocks. They were uniformly located in the best part of a city or a suitably affluent suburb and they produced steady income streams. However, their management tended to be expensive and burdensome and so, gradually, the financial institutions turned their backs on the residential sector and poured their money into commercial assets, wooed by the attractions of longer leases and regular, mostly upwards-only, rent reviews. But those times changed with each downturn in the market, allowing commercial occupiers to flex their muscles and negotiate hefty rent-free periods, favourable break clauses and turnover rents. So the funds started to look again at the residential sector and those areas where well-paid workers from around the globe required shortterm but high quality places to live as they plied their trade with whichever bank, accountancy firm or legal

establishment was paying top dollar for their expertise. The residential investment market place was coming back into vogue. Adam Challis, head of residential research at JLL, cautions against taking a UK-centric view. He points out that the UK has only belatedly seen an increase in institutional investment in the residential sector, unlike in the US, which has been an active and growing market for some three and a half decades.

“In most residential markets, capital values are now significantly higher than before the financial crisis started in 2007” Dr Thomas Beyerle group head of research, Catella

Istanbul, one of Europe’s rising stars

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Focus In terms of the investment hot spots, Challis says that the fulcrum of activity is in Western and Northern Europe. “In most of Eastern and Southern Europe, there is a lack of institutional product, with markets invariably dominated by local investors and many complex local property laws,” he adds. “It takes a very long time to get into these markets and to understand their workings. And, in many cases, the legal process greatly favours the tenant, which can also create difﬁculties.” Tenant protection laws are particularly onerous in France, for example, with unfurnishedproperty contracts lasting a minimum of three years, as opposed to furnished-property contracts, which expire after one year. However, in both cases owners can only recover the property if they or a family member intend to live there, or if they intend to sell. Securing vacant possession through eviction can also take an age as it works its way through the courts. Similarly, in Italy the leasing market is determinedly pro-tenant. Rents can be freely negotiated, but landlords can only increase the rent

Catella’s Dr Thomas Beyerle

Savills’ Yolande Barnes

after a four-year period and any increase is restricted. An Italian landlord may only serve a ‘disdetta’ — the registered letter of notice that must be sent at least six months before contract expiry — to coincide with the end of the four years. Failure to do so automatically renews the contract for another four years. The institutions are therefore looking at Germany, Austria and Switzerland, where it

is cheaper to rent than it is to be an owner-occupier. “The return is not that great,” Challis says, “but it is an extremely stable investment.” As a result, he observes, investments need to be backed by “something more volatile”, such as can be found in the UK or Sweden, which has shown growth during recessionary times. “The Netherlands is also popular,” Challis adds. “The secret is getting the right balance,

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Focus which is especially tricky at the moment with such a small amount of stock coming to the market. Whereas commercial investments, such as prime offices, perform similarly across national borders, this is certainly not the case in the residential sector.” Typically, the big players prefer to acquire lot sizes of around 1,000 or more units, located in affluent areas and served by good public-transport facilities. Locations such as Canary Wharf in London have been hugely popular, although Challis says Manchester, Birmingham and Leeds are also at the forefront of increased activity. “This is still a relatively youthful market,” he adds. “Many investment pots will continue to be mixed with the likes of student accommodation, healthcare and hotels. However, the move is towards the higher quality, bespoke, managed sector. The big northern cities in the UK will underpin occupier demand in the rental sector to a far greater degree than funding young, first-time, owner-occupiers.” In a recent report, Dr Thomas Beyerle, group

“Having taken its economic medicine deep and early, Dublin looks poised for recovery” Yolande Barnes Director, Savills

head of research at Catella, says that the strong demand for residential property in the last few years has been based on it outperforming commercial sectors, such as office and retail, which form the bulk of most institutional investors’ portfolios. Considering the residential markets in Denmark, Finland, France, Germany, Sweden, the Netherlands and the UK, Bayerle says: “In most residential markets, capital values are now significantly higher than before the financial crisis started in 2007. Values for the UK, Sweden and Finland are now 20% higher than in 2007, while those for Denmark and the Netherlands are still substantially lower, indicating room for potential catch-up in capital values.”

So which, if any, of the other major European centres will be attracting the attention of institutions over the next few years? Yolande Barnes, director of world research at Savills, cites Istanbul and Dublin as two of Europe’s rising stars. Given how many ﬁngers have been burnt investing in the Celtic Tiger, it will be interesting to watch just how long it takes overseas players to start pushing their money towards Dublin. But, points out Barnes: “Having taken its economic medicine deep and early, Dublin looks poised for recovery.” Istanbul could also become a powerhouse, being a transcontinental city straddling Europe and Asia in a country that is becoming increasingly prosperous. However, in the short term, the bulk of the big investment players are almost certain to be home produced. Over the next few years, Europe’s next generation of alpha residential cities will no doubt begin to emerge. “Of the secondary cosmopolitan cities in Europe, I like the look of Istanbul, Prague and Budapest,” says JLL’s Challis. “And Milan, provided you understand the local rules, also looks attractive.”

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avec une attention toute particulière réservée aux Very Important Packages.

Edificio Espana in Madrid sold for $358m

Photo: Syldavia /iStock

Focus

HOTELS

Rooms for growth As the hospitality sector continues to grow globally, investors are focusing their attention on a property asset that continues to deliver — particularly in Europe. Chris Bown reports

LOBAL hotel brands such as InterContinental, Marriott, Hilton, Starwood and Hyatt have all enjoyed solid support from their home US market, where a recovery in demand and room rates has long been in progress. Some are even talking of a ‘sweet spot’, where few new hotels are under construction yet demand from customers continues to rise. In one or two years, development will start to

catch up but, for the meantime, room rates and proﬁts are heading higher. In Europe, the market recovery can be clearly tracked moving from the north to the south of the continent. The Irish, UK and Nordic markets enjoyed a positive 2014. In the UK, agent Savills reported investment deal volumes reached £6.1bn in 2014, up 55% on the previous year and the highest level reported since 2006. “We expect demand to remain strong in

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Focus Sofitel in Frankfurt

“We expect demand to remain strong in the year ahead” Martin Rogers Director, Savills

the year ahead,” says Martin Rogers, Savills’ director of hotel agency. Further south in Spain, local hotel group NH Hoteles declared its home market had turned positive once more half way through 2014. This was the point when RevPAR — revenue per available room, the industry’s revenue measure — started lifting in the main Spanish markets, with a number of international investors picking up hotel opportunities in key cities. Meanwhile, recent moves in the Italian market suggest that banks are ready to release the hotel companies they have come to own, while investors are keen to break into a fragmented market with a strong luxury sector. Such news is welcome, but it is fair to say that it had been predicted by many investors, who have been looking for some time to exploit the potential of Europe’s growing hospitality markets. Investors from the US, the Middle East and, now, Asia are looking to grab trophy assets as well as reliable, workmanlike hotels, safe in the knowledge that tourism and business travel are set to continue to expand. For those that understand the hospitality sector, investing is attractive. “Hotels are an area we have put a real focus on,” says Dennis Lopez, global chief investment ofﬁcer at investor AXA Real Estate, which currently owns 80 hotels across Europe. “We can see hotel returns are above other asset classes.” Underpinning this is a fundamental shortage of supply, with tourism in Europe growing at 4% annually. While property investors are generally comfortable with tenants paying rent under a lease agreement, hotel operators prefer management agreements. While these appear more complex, they generally deliver a higher return for the landlord over time. AXA is comfortable with such arrangements, and now has one third of its hotel properties running under management agreements. Asian buyers have come to appreciate the hotel sector, both as a solid investment and as a

way to invest in trophy assets. Their ambitions have been fanned by the Chinese government’s decision last year to ease restrictions on external investment — a move that led one Chinese insurance company to pay Hilton $1.95bn for the landmark Waldorf Astoria hotel in New York in autumn 2014. Acquisitive Chinese investor Dalian Wanda is also planning luxury hotels in Europe. The company bought the 25-storey historic Ediﬁcio Espana in Madrid from Santander for $358m and is planning to reconvert it back to hotel use. In 2013, Dalian Wanda committed to a similar luxury hotel project in London, buying a central site. Middle Eastern investors have long favoured hotels as trophy assets. Among those committing to Europe last year was Qatari investor Katara Hospitality, which bought a portfolio of five InterContinental branded hotels — in Cannes, Amsterdam, Madrid, Frankfurt and Rome. The deal means Katara now owns 32 hotels. In the year since he has taken the chief executive role at Accor, Sebastien Bazin has made some dramatic changes to the international hotel group. He has spent around €1bn buying hotels, has signed a major joint venture in China, has hired a new IT chief from the telecoms sector and has bought a stake in a new start-up hotel brand. Bazin’s ﬁrst announcement was that Accor would no longer pursue its transformation to the asset-light model favoured by US hotel

preview magazine I February 2015 I www.mipim.com

The HTL Pavilion, designed by AW2, is location on Level –1 of the Palais. Exhibitors include: • Accor Group • B&B Group • Easy Hotel • FMTG Development • Hyatt • Intercontinental Hotel Group • Jacuzzi France • Jones Lang Lasalle Hotels • Meininger Group • Tourism, Infrastructure & Enterprise Authority of the Philippines • Baobab Suites • The fractional ownership consultancy • Horwath HTL

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Focus The Four Seasons in Moscow in the former Hotel Moskva building

groups. Instead, it would invest in those properties where it could see positive cash-ﬂow opportunities. “The vision is very straightforward and clear: to become the world’s most valued and best performing hotel company,” Bazin says. “We will retain and extract the value of the assets. We will grow the number of brands and, therefore, grow our asset value. And will give a clear long-term perspective to our teams.” In May 2014, Accor bought back 97 of its hotels across Germany, the Netherlands and Switzerland in a €900m transaction. This was followed in August by the acquisition of 13 Ibis and Ibis Budget hotels in the UK in a deal worth €89m. A joint venture between Accor and China Lodging — one of that country’s fastest

“The vision is very straightforward: to become the world’s most valued and best performing hotel company” Sebastien Bazin CEO, Accor

growing hotel groups — was announced in December 2014. The agreement promises to turbocharge the growth of Accor’s Ibis, Mercure and Novotel brands in China, the world’s most dynamic and fastest growing hospitality marketplace. With an eye to expanding its appeal to younger travellers, Accor also bought a 35% stake in edgy French hotel start-up Mama Shelter. With designs influenced by Philippe Stark, the brand has five hotels in France and now plans to expand internationally with Accor’s backing. In Europe’s luxury market, the Four Seasons brand has had a busy 12 months. The company recently opened in Moscow in the former Hotel Moskva building — the iconic structure that features on the label of Stolichnaya vodka. In London, meanwhile, the company has been signed by Chinese-owned Reignwood to run a new hotel currently in the fi nal stages of conversion. Looking further ahead, Four Seasons has committed to Madrid, where it will open a major new 215-room hotel with branded residences in 2017. Also keen to embrace the European luxury market is seasoned hotelier Rocco Forte, whose boutique chain recently agreed terms with a new Italian investor to grow its presence in the Italian market.

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WEDNESDAY 11 MARCH MASTERMINDS: WHY INVEST IN HOTELS WHEN SO MANY ALTERNATIVE ASSETS ARE AVAILABLE? 10.00 - 11.00 Sponsored by JLL Hotels Speakers include: • Sebastien Bazin, chairman & CEO, Accor • Dennis G Lopez, chief investment ofﬁcer, AXA Real Estate • J Allen Smith, president and chief executive ofﬁcer, Four Seasons Hotels and Resorts • Christoph Harle, CEO EMEA Hotels & Hospitality Group, JLL

THURSDAY 12 MARCH ‘FLASH MOB HOSPITALITY’ 9.30 - 10.30 Make new connections with developers and operators in a dynamic networking space

BUDGET ACCOMMODATION: THE CITY GAME CHANGER – THE HIGH IMPACT EXPERIENCE 10.30 - 12.30 Sponsored by JLL Hotels

Up to 10% discount for visitors and exhibitors (Sixt - ofďŹ cial car rental supplier of Reed Midem) Call +33 (0)1 44 38 55 55 and state the promotion code 9963828

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The Jury

Awards

President of the Jury Barbara KNOFLACH SEB Asset Management AG Chief Executive Ofﬁcer Germany ElÐbieta BIENKOWSKA European Commission European Commissioner for Internal Market, Industry, Entrepreneurship and SMEs Poland Louise BROOKE-SMITH RICS President United Kingdom Madeleine COSGRAVE GIC Real Estate Senior Vice President, Real Estate Investment United Kingdom Serge FAUTRE AG Real Estate Chief Executive Ofﬁcer Belgium

Paolo GENCARELLI UniCredit Group Head of Procurement and Corporate Real Estate Italy Frank KHOO AXA Real Estate Global Head of Asia Singapore

MIPIM AWARDS 2015

Global reach for 2015 MIPIM Awards MIPIM’S jury of international real estate professionals has selected the 44 ﬁnalists for the 2015 MIPIM Awards

ON FIRMING its international reach, the 2015 Awards finalists represent a record 22 countries. Of those, Canada, Australia, Saudi Arabia, Argentina, Indonesia and Senegal are all potential medal winners for the ﬁrst time. France and the United Kingdom both have four projects competing, while Asia (China, Japan, Indonesia and Hong Kong) has eight projects and the Nordic countries (Denmark, Finland, Norway and Sweden) have seven. This year’s MIPIM Awards include a new category — Best Futura Mega Project — which rewards upcoming real estate projects over

100,000 sq m. In addition, the jury selected five projects for the Special Jury Award and will announce its favourite project during the Awards ceremony, along with the winners of the other categories. MIPIM Awards winners will be chosen in Cannes by a combination of the MIPIM delegates and the international jury, each group representing 50% of the final vote. For the fourth year in a row, the “People’s Choice Award will be given to the development that wins the most votes online before MIPIM opens. The public will be able to vote for this category on the MIPIM site and on the official event Facebook page.

Kengo KUMA Kengo Kuma & Associates Founder & Architect Japan

Sergey KUZNETSOV Chief Architect City of Moscow Russia

Dominique PERRAULT Dominique Perrault Architecture Founder & Architect France Olle ZETTERBERG Stockholm Business Region Chief Executive Ofﬁcer Sweden

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Awards Best Hotel & Tourism Resort

Agenda MIPIM People’s Choice Award online vote Monday 9 February to Monday 9 March

Center Parcs Woburn Forest

www.mipimawards.com and Facebook

Bedfordshire, United Kingdom

MIPIM Awards onsite vote

Architect: Holder Mathias Developer: Center Parcs Other: WTI, Schletterer, Edmond Shipway, PBA

Tuesday 10 March (9.00) to Thursday 12 March (noon) Awards Gallery

MIPIM cocktail & red carpet Thursday 12 March (18.15) Grand Auditorium foyer

Delta Toronto® Toronto, Canada

MIPIM Awards prize-giving ceremony Thursday 12 March (19.00 – 20.00) Grand Auditorium

Architect: Page + Steele / IBI Group Architects Developer: GWL Realty Advisors Other: Delta Hotels and Resorts®

Raffles Istanbul Zorlu Center Istanbul, Turkey Architect: EAA / HBA Developer: Zorlu Yapi Yatirim

St Regis Hotel, Chengdu, PRC Chengdu, PRC Architect: Aedas Developer: Evergo Enterprises (Chengdu) Company Limited

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Awards Best Industrial & Logistics Development

Best Innovative Green Building

AGC Technovation Centre Gosselies, Belgium Architect: ASSAR ARCHITECTS Developer: AGC Glass Europe

Parc PME Newton Brussels, Belgium Architect: DDS & Partners / BAEB Developer: Citydev Brussels

Kastelli – Community Centre, Lifecycle Project Oulu, Finland Architect: Lahdelma&Mahlamäki Architects Developer: Client City of Oulu Other: Lemminkäinen Building Construction (Design and Build Contractor)

One Central Park Sydney, Australia Architect: Ateliers Jean Nouvel Developer: Frasers Property Australia, Sekisui House Australia Other: PTW Architects

Würth Svenska AB Örebro, Sweden

Powerhouse Kjørbo

Architect: White Developer: Würth Svenska AB

Oslo, Norway Architect: Snøhetta AS Developer: Entra Asa Other: Skanska, Asplan Viak, Sapa, Hydro, Zero

The Edge Amsterdam, The Netherlands Architect: PLP Architecture Developer: OVG Real Estate Other: Deloitte (primary occupier), Philips (partner in LoE system), G&S bouw (constructor), ABN Amro (ﬁnancier), Deems (engineering consultant), Deka Immobilien (owner)

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Awards Best Office & Business Development

Best Refurbished Building

Selcuk Ecza HQ

Aldwych Quarter

Istanbul, Turkey

London, United Kingdom

Architect: Tabanlioglu Architects: Melkan Gürsel & Murat Tabanlioglu Developer: Selcuk Ecza Holding

Architect: John Robertson Architects Developer: JLL Other: ISG

The Otemachi Tower Tokyo, Japan Architect: Kohn Pedersen Fox Associates (Design Architect), Tasei (Architect of Record), Kerry Hill Architects (Interiors Aman Hotel) Developer: Tokyo Tatemono Co., Ltd.

Dreischeibenhaus Dusseldorf, Germany Investor/Developer: MOMENI Group Developer: MOMENI Projektentwicklung GmbH Architect: HPP Hentrich – Petschnigg & Partner GmbH + Co. KG Other: Black Horse Investments GmbH (Joint-Venture Partner)

VMware Campus Palo Alto, California Architect: Form4 Architecture Developer: VMware/Hines

King Fahad National Library Xi’an Jiaotong – Liverpool University Administration Information Building, Suzhou, PRCt

Riyadh, Saudi Aurabia Architect: Gerber Architekten Developer: Arriyadh Development Authority

Suzhou, China Architect: Aedas Developer: Suzhou Industrial Park Education Development & Investment Company Other: Suzhou Institute of Architectural Design Co., Ltd (Structural Engineer Firm); Shenyang Yuanda Aluminium Industry Engineering Co., Ltd (General Contractor); Lead Dao Technology and Engineering Ltd (3D Façade Consultant); AFP International GmbH (Façade consultant); VMZINC (Building Material Supplier) preview magazine I February 2015 I www.mipim.com

Segreen Business Park Segrate — Milan, Italy Architect: Lombardini22 srl Developer: CBRE Global Investors SGR SPA

105

Awards Best Residential Development

Best Shopping Centre

Beaugrenelle Paris, France

Cayan Tower Dubai, United Arab Emirates Architect: Skidmore Owings and Merrill Developer: Cayan Group

Architect: Valode&Pistre Owner/Developer: Apsys Other: BARBANEL/GEC (technical consultants)

Markthal Rotterdam Rotterdam, The Netherlands

KrĂ¸yers Plads I Copenhagen, Denmark Architect: Vilhelm Lauritzen Architects & COBE Architects Developer: NCC Bolig A/S

Architect: MVRDV Developer: Provast Other: Corio (investor market ďŹ&#x201A;oor), Vesteda (residential investor), Amo Coenen and Iris Roskam (artists art piece)

Riverside 66 One Central Park Sydney, Australia Architect: Ateliers Jean Nouvel

Tianjin, China Architect: Kohn Pedersen Fox Associates (Design Architect), P&T International (Associate Architect) Developer: Hang Lung properties Ltd.

Developer: Frasers Property Australia, Sekisui House Australia Other: PTW Architects

The Breeze BSD City Tangerang, Indonesia

The Waterfront Stavanger, Norway Architect: AART architects, Studio Ludo Developer: Kruse-Smith

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Architect: JERDE consultant (foreign architect) & Arcadia (local architect) Developer: PT Bumi Serpong Damai Tbk. (member of Sinarmas Land) Other: PT.TOTAL BANGUN PERSADA Tbk (main contractor, civil & structural engineer), PT Jasira Utama (electrical engineer)

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Awards Best Urban Regeneration Project

Best Futura Project

Boulevard Euromediterranée – Marseille’s new waterfront Marseille, France Architect: Ateliers Lion – Ilex – Kern et Associés Developer: Euromediterranée

Ghent, future-proofing a history city Ghent, Belgium Public authority/Promotor/Initiator: City of Ghent Architect: Atelier Kempte-Thill, Aranda Pigem Vilalta Arquitectes / COUSSEE & GORIS architecten, Robbrecht & Daem / Marie-José Van Hee architecten, etc. Developer: SoGent, the city development agency and private developers Other: members of the Flanders Ghent Development Group

Queen Elizabeth Olympic Park London, United Kingdom Architect: Erect Architects with LUC landscape architect, James Corner Field Operations with Make Architects Developer: London Legacy Development Corporation Other: MACE, LDA Design with Hargreaves Associates, Atkins and Arup, Buro Four, BAM Nuttall, Balfour Beatty, Lagan, H. And J. Martin, ISG, Skanska, and Buckingham

Cité musicale départementale de l’île Seguin Boulogne-Billancourt, France Architect: Shigeru Ban Architects Europe – Agence Jean de Gastines Architectes Developer: Bouygues Bâtiment Ile-deFrance Other: OFI InfraVia – Sodexo – TF1

Eckwerk Berlin Berlin, Germany Architect: Kleihues + Kleihues Gesellschaft von Architekten mbH / Graft Gesellschaft von Architekten mbH together with the Genossenschaft für kreative Urbanität (cooperative for urban creativity) Client: Eckwerk Entwicklungs GmbH Other: Kaden + Partner, sbp GmbH, Winter beratende Ingenieure für Gebäudetechnik GmbH, HHP Berlin

Køge North Station Køge, Denmark Architect: COBE, DISSING+WEITLING Developer: Banedanmark, Køge Municipality, DSB Properties

Mongkok Residence Toranomon Hills

Hong Kong, SAR

Tokyo, Japan

Architect: Aedas Developer: Good Standing (Hong Kong) Limited

Architect: NIHON SEKKEI, INC. Developer: Mori Building Co., Ltd. Other: Tokyo Metropolitan Government (project executor)

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Awards Best Futura Mega Project

Special Jury Award

Isla de Marchi Audiovisual Center

Boulevard Euromediterranée – Marseille’s new waterfront

Ciudad Autónoma de Buenos Aires, Argentina

Marseille, France

Architect: Mario Roberto Alvarez Developer: Riva S.A.

Architect: Ateliers Lion – Ilex – Kern et Associés Developer: Euromediterranée

New North Zealand Hospital

Dakar Congress Centre

Hilleroed, Denmark

Architect: Tabanlioglu Architects Developer: Summa Construction

Architect: Herzog & de Meuron, Vilhelm Lauritzen Architects Developer: The Project Organization «New North Zealand Hospital» Client: Capital Region of Denmark

Dakar, Senegal

King Fahad National Library Riyadh, Saudi Aurabia

Oxygen Eco-tower

Architect: Gerber Architekten Developer: Arriyadh Development Authority

Jakarta, Indonesia Architect: Progetto CMR Engineering Integrated Services S.r.l. Developer/Client: Bimantra Citra Other: Tecnimont Civil Construction & Permasteelisa Group (project management), Cimolai (construction company)

Markthal Rotterdam Rotterdam, The Netherlands Architect: MVRDV Developer: Provast Other: Corio (investor market ﬂoor), Vesteda (residential investor), Amo Coenen and Iris Roskam (artists art piece)

Queen Elizabeth Olympic Park London, United Kingdom

PAI Fund Bologna, Italy Architect: Mr. Thomas Bartoli Developer: Prelios Integra

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Architect: Erect Architects with LUC landscape architect, James Corner Field Operations with Make Architects Developer: London Legacy Development Corporation Other: MACE, LDA Design with Hargreaves Associates, Atkins and Arup, Buro Four, BAM Nuttall, Balfour Beatty, Lagan, H. And J. Martin, ISG, Skanska, and Buckingham

How to optimise

01.

02.

03.

PARK & FLY

CLUB LOUNGE

BUSINESS CENTRE

Stay within your parking budget with discounts and monthly invoicing.

Enjoy a little downtime before boarding.

Organise business meetings and seminars directly at the airport.

www.nice.aeroport.fr

Conception et rĂŠalisation Tequilarapido

business travel?

109

Tips & Services

Dear Participant, Your experience and satisfaction at MIPIM are important to us. The entire MIPIM team is committed to ensure your market runs as smoothly and efﬁciently as possible, so that you can focus on making deals, meeting the right people and achieving your objectives. To ensure you start off with a bang, please refer to our Quick Checklist

Inside

1• USEFUL TIPS

Things to do before the Show: Q Have you prepared your transportation to Q Have you connected to the Online Database on my.mipim.com/onlinethe Côte d’Azur? Have you arranged your database to ﬁnd out in advance who else transfer to Cannes? is attending the show, to set up meetings Q Have you booked your accommodation? If and discover projects of your interest? not, book now at www.mipim.b-network. com and choose from a wide selection of Q Have you checked the full show programme of MIPIM conferences and hotels and apartments at special rates. meetings not to be missed? Q Remember to print your e-ticket before the show to save time at the Registration area Q Ensure you download the MIPIM App to get the most of MIPIM. and collect your badge easily. Find answers to all those questions on the following tips & services section. For more details please refer to our website my.mipim.com

1• USEFUL TIPS ARRIVING IN CANNES USEFUL INFORMATION ABOUT CANNES The Palais des Festivals is situated on the seafront along the famous Croisette. It is clearly signposted throughout Cannes. The exact address is: Palais des Festivals Esplanade Georges Pompidou 06400 Cannes

Your Badge is your primary means of identiﬁcation during MIPIM. It provides access to all exhibition areas, conference sessions and networking events during opening hours. Please carry it at all times, and be ready to show it at entry points and security points around the area.

2• SERVICES CONCIERGERIE NETWORKING AREAS ADDITIONAL SERVICES

3• GENERAL MAP OF MIPIM REGISTRATION OPENING HOURS

YOU CAN COLLECT YOUR BADGE AT SEVERAL BADGE COLLECTION POINTS

MARKET OPENING HOURS

• Nice Airport From Monday 9, 8.00, to Wednesday 11, 22.00. MIPIM desk in Terminal 1 & 2.

YOUR BADGE

THE EXHIBITION HALLS

E-ticket holders: E-tickets will be sent to you via email a few days before the show. Also available in the my-mipim.com database using your personal access codes. They include a barcode for ID recognition. Print it out to collect your badge at a selfservice delivery point or scan the QR Code on your smartphone and save time at the registration area.

• Registration From Sunday 8 March, 14.00 to Friday 13 March, 13.00. Palais -1 – Palais des Festivals.

Country dialling code: +33 Time zone: GMT +1 Electricity: 220 volts AC, 50 Hz. Round two-pin plugs are standard. Measurement system: Metric. Currency: Euro.

ARRIVING IN CANNES

• Hotels From Sunday 8, 14.00, to Wednesday 11, 19.00. - Majestic - Carlton - Martinez Please note that full payment must have been made in advance to pick up your badge at the airport and in hotels.

• Sunday 8 March 14.00 - 19.00 • Monday 9 March 9.00 - 19.00 • Tuesday 10 March 8.30 - 20.00 • Wednesday 11 March 8.30 - 19.00 • Thursday 12 March 9.00 - 19.00 • Friday 13 March 9.00 - 13.00 • Tuesday 10 March 9.00 - 19.00 • Wednesday 11 March 9.00 - 19.00 • Thursday 12 March 9.00 - 19.00 • Friday 13 March 9.00 - 15.00 Exhibitors have access to all the exhibition areas starting from 8.30 via the Artists’ Entrance situated between the Palais des Festivals and the Riviera 7. EVENTS FOR ALL DELEGATES The Opening Cocktail sponsored by Tuesday 10 March from 19.30, Carlton Hotel. Please note that your badge will be required to enter. The MIPIM Awards Ceremony sponsored by Thursday 12 March at 19.00, Grand Auditorium, Palais 1, Palais des Festivals.

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110

Tips & Services Open all day long, it provides an ideal setting to hold business breakfasts, lunches and more. For any reservations please call +33 (0)4 92 98 77 03

THE EXHIBITION HALLS EXHIBITION HALLS The Palais des Festivals is comprised of distinct exhibition areas: there are two buildings connected via mechanical escalator. • Palais -1 • Palais 0 • Palais 1 • Palais 3 • Palais 4 • Palais 5 • Riviera 7 • Riviera 8 OUTSIDE STRUCTURES

VISITORS’ CLUB Palais des Festivals – Palais -1 Open to all participants, the club offers a large scope of services, a meeting area and some refreshments. VIP LOUNGE Palais des Festivals – Palais 3 Reserved for investors, end users, VIPs, and directors of exhibiting companies, this private lounge offers a complimentary bar and business services. A number of hostesses will be at clients’ disposal to help organise their meetings. MIPIM INNOVATION FORUM & ARCHITECTURE CAFE

• Croisette 10 - Bouygues Immobilier • Croisette 12 & 14 - Paris Region • Croisette 15 - London Stand • Croisette 16 - Riyadh Pavilion • Croisette 17 - GDF Suez & MIPIM Bay Restaurant • Croisette 19 - MIPIM Croisette Village - Amsterdam Pavilion • Croisette 20 - Istanbul Chamber of Commerce • Croisette 21 - MIPIM Innovation Forum & Architecture Cafe

Croisette 21 The MIPIM Innovation Forum will be a key destination for 2015 delegates, showcasing the most innovative solutions to increase the value of property assets. PRESS CLUB sponsored by Palais des Festivals – Palais 3 This facility for journalists includes computers, internet connection, a printer and the full-time presence of a staff member.

2• SERVICES CONCIERGERIE

HOTEL & TOURISM PAVILION

START YOUR SERVICES EXPERIENCE WITH THE CONCIERGERIE Our on-site Concierge provides a complete range of services, including restaurant, taxi, and ﬂight reservations; as well as shuttles, sightseeing activities and other tips to help you make the most out of your stay in Cannes. For assistance on a speciﬁc issue before the market, call +33 (0)1 79 71 99 99 or email customerhelpdesk@reedmidem.com

NETWORKING AREAS MIPIM BAY RESTAURANT Majestic Beach The Majestic Beach restaurant has been completely redesigned, and for its re-opening will become an exclusive space uniquely for MIPIM participants.

designed by Meet and do business with key players involved at the different stages of logistics real estate projects: planners, investors, developers, operators and occupiers. • Showcase of logistics solutions • Conferences: daily thematic workshops & panels • Networking events: Speed Matching and Pitching Sessions • Dedicated bar & lounge • Industrial & logistics category at the MIPIM Awards

ADDITIONAL SERVICES BUSINESS CENTRE Palais des Festivals – Palais -1 It provides a complete range of secretarial and administrative services for all participants. Professional services are offered at competitive rates for photocopying, word processing, printing and faxing. INFORMATION POINTS Clearly signposted, information desks can be found around the Palais des Festivals. • Palais -1, Entrance & Escalators to Riviera 7 • Palais 0 • Palais 3 • Esplanade of the Palais • Riviera 7 • Riviera 8

Palais -1 sponsored by

MOBILE APPLICATION

The official MIPIM app is designed to enhance your client experience by providing essential show information including: a full event schedule, exhibitor and participant lists, a floor plan to locate exhibitors and set itineraries, speaker lineups, social networking, practical event and Cannes info, and more... Please note that every effort has been made to include as much data in the app as possible so that it can be used whilst offline and abroad. Some features, such as Twitter, use live data and may incur charges depending on your carrier and plan.

Connect with hospitality and property industry professionals in MIPIM’s HTL area, the perfect spot to discuss hospitality trends, hotel investment and tourism real estate. • Showcase of hospitality solutions • Conferences: keynote and expert-led panel sessions • Networking events: city and hotel Pitching Sessions, HTL Breakfast, Speed Matching sessions, daily cocktails • Dedicated bar & lounge • Hospitality category at the MIPIM Awards LOGISTICS PAVILION Palais -1 sponsored by

TAKE MIPIM TO GO!

Download the MIPIM app for free today on the App Store! For more information about transport, services... please visit my.mipim.com

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Tips & Services 3• GENERAL MAP OF MIPIM

Croisette zone C10 - Bouygues Immobilier C12 & C14 - Paris Region

C10

C15 - London Stand

Beach

C16 - Riyadh Pavilion C17 - GDF SUEZ & MIPIM Bay Restaurant C19 - MIPIM Croisette Village - Amsterdam Pavilion

C12

C20 - Istanbul Chamber of Commerce RIVIERA 8

C21 - MIPIM Innovation Forum & Architecture Café

MIPIM Area

C14

Riv

ier

Sea

C15

RIVIERA 7

C17 C19

C16

Access to Riviera 8 Harbour

MIPIM Area Entrance

PALAIS -1 to 6

Protocol Entrance

C20 La Croisette

Turkish Pavilion

Croisette Entrance

Registration Entrance

Belgian Pavilion

C21

min

Carlton Hotel

Majestic Hotel

MIPIM shuttle

La C roise tte

min

Martinez Hotel

Train Station

mipim PREVIEW The official MIPIM preview magazine February 2015. Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor in Chief Graham Parker Technical Editor in Chief Hervé Traisnel Deputy Technical Editor in Chief Frédéric Beauseigneur Graphic Designers Nour Ezzedeen, Carole Peres Sub Editor Joanna Stephens Contributors Chris Bown, Peter Clucas, Mark Faithfull, Steve Killick, Mark Moore, Liz Morrel, Paul Strohm PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Manager Amrane Lamiri Publishing Co-ordinator Emilie Lambert Production Assistant, Cannes Office Eric Laurent Printer Riccobono Imprimeurs, Le Muy (France) Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2015, Reed MIDEM Market Publications. Publication registered 1st quarter 2015. ISSN 1962-9974. Printed on 50% recycled paper ®

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TO BE

NOTmissed!

dy to be shaken-up

t rea It's digital showtime ! Ge

DIGITAL ECONOMY DISRUPTS REAL ESTATE SECTOR: CRUSADERS AT THE DOOR Wednesday 11 March 15.00-16.30 Grand Auditorium

Digital Players

Sponsor: Lennar International

Simon HENRY Co-Founder & Co-CEO, Juwai.com

Michael MANDEL CEO, CompStak

Scott PICKEN Founder & Senior Managing Partner, Wealth Migrate

The Experts

Ross BAILEY CEO, Appear Here

Renaud PROUVEUR CEO, Spallian

Rohan SILVA Founder, Second Home

Brandon WEBER Founder & CEO, Hightower

MASTERMINDS “GROWTH OF THE EUROPEAN LISTED REAL ESTATE SECTOR” Chris MARLIN President, Lennar International

Juliette MORGAN Samuli SIREN Head of Property Tech Managing Partner, City UK, C&W Global Redstone Digital GmbH Tech Group Leader

MASTERMINDS “WHY INVEST IN HOTELS WHEN SO MANY ALTERNATIVE ASSETS ARE AVAILABLE?”

Wednesday 11 March 15.00-16.00 Blue Room Co-organiser: EPRA

Philip CHARLS CEO, EPRA

Christophe CUVILLIER CEO & Chairman of the Management Board, Unibail-Rodamco

Luciano GABRIEL CEO, PSP Swiss Property AG

Chris GRIGG Chief Executive, British Land

Serge GRZYBOWSKI CEO & Chairman, ICADE

Allan SAUNDERSON Managing Editor, Property Investor Europe

Wednesday 11 March 10.00-11.00 Red Room Co-organiser & Sponsor: JLL Hotels

Sebastien BAZIN Chairman & CEO, ACCOR

Programme Sponsor

Dennis LOPEZ Chief Investment Ofﬁcer, AXA Real Estate

Christoph HAERLE CEO EMEA Hotels & Hospitality Group, JLL

Session Sponsors

J. Allen SMITH President and Chief Executive Ofﬁcer, Four Seasons Hotels and Resorts

More details about speakers, content and conference venues on

www.mipim.com

CONFERENCES & EVENTS PROGRAMME

ready digital REvolution?

ARE YOU FOR THE

Big Data, Smart Cities, Crowdfunding, BIM, the Sharing Economy, Open Data, Millennials,… the Digital REvolution is here. But did you really measure all the disruptive changes they will bring to your own business? Have you anticipated the risks? Are you leveraging all the opportunities they create? More importantly, is your organisation ready? The MIPIM 2015 conference programme will explore the Digital REvolution, its challenges and opportunities for the real estate community.

TAILORED SESSIONS: EXCLUSIVE CLOSED DOOR EVENTS

30+ PANELS OF EXPERTS 1 hour sessions of lively debates between top industry leaders to help you gain key information and find out how you can make your business efficient and profitable.

The must-attend event for international urban political leaders on “Disruptive strategies for attracting investment in cities”. NEW! This closed-door summit will be followed in the afternoon by a panel discussion open to all registered participants summarising the key points of the summit’s debates. Wednesday 11 March 16.00-17.00.

NEW! “Impact of disruptive technology on corporate real estate strategies”. The Occupiers’ Workshop, a new format dedicated to corporate real estate professionals, will provide a forum for debate and discussion for international occupiers.

The Real Estate Institutional Investors Summit. RE-Invest will provide a platform designed to bring together high level decision makers to tackle key issues faced by real estate institutional investors. The Leaders’ Breakfast Private talks with... The Leaders’ Breakfast, an event gathering around 80 corporate senior ofﬁcials and representing a unique occasion to meet with a thought provoker.

15+ WORKSHOPS 90 minutes sessions of case studies starting with an expert overview offering solutions to overcome the industry’s current challenges.

BRAND NEW FORMATS! • Rendez-Vous, Les Matins de L’Économie, A panel discussion, co-organised with Le Journal du Dimanche & V.conférences, gathering 7 experts who will debate on “Révolution digitale: les nouveaux usages de la ville“. Session in French.

• Flash Mobs Expand your network and spark new partnerships during 3 highly productive open meetings dedicated to logistics, healthcare and hospitality. Open to all!

• Architecture Café, the new place to be! Furnished by Vitra, this new business bar will extend from the MIPIM Innovation Forum with a terrace, networking area, live daily project and concept presentations and global architect stands.

MIPIM CONFERENCES - LEARN FROM 250+ INDUSTRY

Clément ALTERESCO

Kai-Uwe BERGMANN

Dr. Thomas BEYERLE

Arch. Stefano BOERI

Umberto BORZI

Louise BROOKE-SMITH

CEO, Bureaux à Partager

Partner, BIG - Bjarke Ingels Group

Managing Director, Group Head of Research Catella

Principal, Stefano Boeri Architetti

Partner, Chiomenti Studio Legale

President, RICS

Martin BRÜHL

Prof. Jürgen BRUNSBERENTELG

Ian CAMPBELL

Thibault CHAUVIN

Thilo CUNZ

Carsten CZARNETZKI

Director, Group Property, Rolls-Royce

Managing Director Head of Debt Funds and Mandates, AEW Europe

Senior Manager Asia/Europe, LUWOGE consult

Investment Director, AEW Europe

Head of Investment Management International, Union Investment Real Estate GmbH

CEO, HafenCity Hamburg GmbH

OPEN HERE FOR FULL PROGRAMME Sandra DAZA

Isabelle DE PONFILLY

Christoph DONNER

Piero FASSINO

General Manager, GESVALT

Managing Director, Vitra

CEO, Allianz Real Estate of America

Mayor, City of Torino

Nicolas FERRARY

Dr. Nick FOWLER

Country Manager-France, Airbnb

Managing Director, Elsevier

Sylvain FRODE DE LA FORÊT

Souleymane-Jean GALADIMA

Partner Projects & Buildings Business Vice-President, Schneider Electric

Associate Director, WiSEED Immobilier

Session Sponsors

Guillermo FERNANDEZ-CUESTA Real Estate Director, Deputy to CEO, AXIARE

Prof. Richard HALL Director of IISE & RII, University of Derby

Kim HERFORTH NIELSEN Founder & Creative Director, 3XN

EXPERTS INCLUDING:

John HUTMACHER

Alain JUPPÉ

Ralf Joachim KLANN

Dominique LECHIEN

Yves MARCHAL

Partner, Blake, Cassels & Graydon LLP

Président de Bordeaux Métropole, Bordeaux Métropole

Head of Risk-Europe, Abu Dhabi Investment Authority

Partner, Baker & McKenzie

Managing Director Southern Europe , JLL Hotels & Hospitality Group

Jean-Louis MISSIKA

Mahdi MOKRANE

Nikolay NIKIFOROV

Raimund PAETZMANN

Regional Director - Head of European Research and Strategy, LaSalle Investment Management

Minister - Ministry of Telecom and Mass Communications of The Russian Federation

Prof. Ingrid NAPPICHOULET

Rodrigo NINO

Adjoint au Maire, Mairie de Paris

CEO & Founder, Prodigy Network

Director EMEA Real Estate, Amazon EU Sarl

Ir. Geoffrey PALMER

Oliver PIANI

Prof. Carlo RATTI

Steven RENNA

Nick ROMITO

Mario RUBERT

Director of Energy, Planning & Design, Grontmij

CEO, Allianz Real Estate

Director, MIT Senseable City Lab

President & CEO, CRE Finance Council

Co-Founder & CEO, VTS, Inc. (View The Space)

City Promotion Manager, Barcelona City Council

Tim SANTINI

John SLADE

Mads THIMMER

Prof. Ben VAN BERKEL

David VAN DER LEER

Axel WÜNNENBERG

Director, Eurocommercial Properties

CEO, BNP Paribas Real Estate

CEO & Founder, Innovation Lab

Co-Founder/Principal Architect, UNStudio

Executive Director, Van Alen Institute

Managing Director, Quadoro Doric Real Estate GmbH

Professor, ESSEC Business School

Henrik MEYERHOFFMANN Real Estate Expert/ Architect, BASF

MIPIM 2015 - YOUR WEEK IN BRIEF 10-13 MARCH MONDAY 9 MARCH

WEDNESDAY 11 MARCH

RE-Invest Dinner* - Keynote address by Prof. Carlo Ratti: « Senseable Cities » Carlton Hotel - 18.30 - 22.00

TUESDAY 10 MARCH

BLUE ROOM

RED ROOM

Russian Breakfast* Majestic Hotel 8.30 - 11.30

New Europe Breakfast* Deep Design 9.30 - 11.00 Sponsor: CEEQA

BLUE ROOM

RED ROOM

RE-Invest Summit* Real estate strategies in a changing world Carlton Hotel 8.00 - 12.30 Sponsors: Aberdeen Asset Management, AXA Real Estate, KPMG AG, Real Capital Analytics

Will China’s economic slowdown reduce outbound capital ﬂows? 11.30 - 12.30

International megaprojects: solutions that work 11.00 - 12.30 Co-organiser: Kommersant

Co-organiser: Cushman & Wakeﬁeld

Asia Lunch* Majestic Hotel 12.30 - 14.00 Sponsor: Norton Rose Fulbright

The German real estate market still an attractive investment area in Europe? 14.30 - 15.30 Co-organiser: Heuer Dialog

Data REvolution, reinventing occupiers’ & investors’ strategies 16.00 - 17.30 Sponsor: Schneider Electric

Keynote address by political leader « London 2050 » 14.00 - 14.30

ORANGE ROOM

GREEN ROOM

Breakfast on Japan* Majestic Hotel 8.30 - 10.00 Sponsor: Diamond Realty Management

First Timers Breakfast Auditorium K 9.30 - 10.00 First Timers Meeting Auditorium K 10.00 - 11.00 UK Cities 11.30 - 12.30 Sponsor: Estates Gazette

Turkey 2015: Keynote address Insight & inspiration for businesses 9.30 - 10.30 Co-organiser: Istanbul Chamber of Commerce

Sub-Saharan Africa: the missing piece of your investment puzzle? 10.30 - 12.30 Sponsor: Eko Atlantic

Investors Lunch* Carlton Hotel 12.30 - 14.00 Leading powerhouses of the future MIPIM City investment forum [Event] - Grand Auditorium 14.00 - 15.30

Mayors’ ThinkTank* Disruptive strategies for attracting investment in cities Majestic Hotel 11.00 - 13.00 Sponsor: Arcadis

MASTERMINDS Why invest in hotels when so many alternative assets are available? 10.00 - 11.00

ORANGE ROOM

GREEN ROOM

Flash Mob Logistics Asset Class Hub 9.30 - 10.30 Global investors : creating value in an environment of rising capital inﬂows and interest rates? 10.00 - 11.00 Sponsor: Ivanhoe Cambridge

Next generation USA Real Estate: next investment opportunities? 10.00 - 11.00 Co-organiser: New York University

Co-organiser & Sponsor: JLL Hotels

New Europe: Insight Summit: The Wall of Capital - What does it mean for the New Europe real estate markets? 11.00 - 12.15 Co-organiser & Sponsor: CEEQA

Trends & opportunities in logistics infrastructures: 2 case studies on logistics 11.30 - 13.00 • Barcelona Catalonia: The logistic hub in Southern Europe Sponsor: Barcelona

Occupiers’ Workshop* Majestic Hotel 11.00 - 13.00

Les Matins de l’Economie* du JDD Verrière Grand Auditorium 11.00 - 12.30

Sponsor: Schneider Electric In association with: ADI & CoreNet Global

Co-organiser: Le Journal du Dimanche et V.Conférences (Session in French)

2 case studies Latest trends and innovative solutions in smart buildings 11.30 - 13.00 • Collaboration drives better mixed-use sustainable buildings 12.00 - 12.30 Sponsor: Grontmij • BuildTog Affordable buildings in nearly-zero energy performance 12.30 - 13.00 Sponsor: Luwoge - BASF

Organiser: Manchester

Crowdfunding: industry game-changer? 14.30 - 15.30 Sponsor: Wealth Migrate

Greening up the city: challenges for Real Estate 16.00 - 17.00 In association with ESSEC Business School

Emerging trends in Real Estate: a global outlook for 2015 17.30 - 18.30 Co-organiser: Urban Land Institute & PriceWaterhouse Coopers

What’s new in the healthcare sector? 14.30 - 16.00 Sponsor: AviaRent Capital Management S.à.r.l

Investing in Sweden: new opportunities and perspectives 16.00 - 17.00 Sponsor: Cushman & Wakeﬁeld

Stockholm, where innovations meet investments 17.00 - 18.00 Sponsor: Stockholm Business Region Development

MIPIM Opening Cocktail [Event] - Carlton Hotel From 19.30 - Open to all MIPIM Participants Sponsor: Istanbul Chamber of Commerce

* By invitation only events

2 case studies Innovation at the heart of urban development 14.30 - 16.00 • Derby UK Capital for Innovation Sponsor: Derby

Mayors’ Lunch* Majestic Hotel 13.00 - 14.30 MASTERMINDS Growth of the European listed real estate sector 15.00 - 16.00 Co-organiser: EPRA

Sharing spaces: same solutions for all? 16.00 - 17.00

Towards the end of ownership? 17.00 - 18.30

Disruptive strategies for attracting investment in cities 16.00 - 17.00 Sponsor: King Abdullah Economic City

Sponsor: Allianz

Focus on Spain : from hell’s door to Real Estate haven? 17.00 - 18.00 Sponsors: Gesvalt & Roca Junyent

New Europe: Primetime Poland Panel 1: Poland: the EU’s most aspirational nation Panel 2: Warsaw: New ofﬁce & retail destinations emerging

14.30 - 16.00 Co-organiser & Sponsor: Poland Today

Navigating risks in investment markets of the future 16.30 - 17.30 Co-organiser: RICS

New Europe: Movers and shakers Lunch* Deep Design 12.30 - 14.00 European healthcare comes of age: where international capital & demographics align for further market growth 14.30 - 16.30 Sponsor: Corpus Sireo Holding Gmbh & Co. Kg

Healthcare: innovative & proﬁtable? 17.00 - 18.00 Sponsor: Threestones Capital

Flash Mob Healthcare Asset Class Hub 17.00 - 18.00

2 case studies Latest trends and innovative solutions in smart buildings 14.30 - 16.00 • Rio de Janeiro’s Exciting New Urban Destination Resort, “Rio Marica” 14.30 - 16.30 Sponsor: Cofeci

Digital economy disrupts real estate sector: crusaders at the door Grand Auditorium 15.00 - 16.30 Sponsor: Lennar International

Latest trends and innovative solutions in smart buildings 16.30 - 18.00

2015 - PALAIS DES FESTIVALS, CANNES, FRANCE THURSDAY 12 MARCH BLUE ROOM

RED ROOM

ORANGE ROOM

FRIDAY 13 MARCH

GREEN ROOM

Leaders’ Breakfast* Majestic Hotel 8.00 - 9.30

MIPIM Wrap-Up Everything you couldn’t miss at MIPIM 2015 in 1 hour! 10.00 - 11.00

Sponsor: Lennar International

Flash Mob Hospitality Asset Class Hub 9.30 - 10.30

JAPAN MORNING • Welcome coffee Deep Design 9.00 - 10.00 • Focus on Japan 10.00 - 11.00

MASTERMINDS Commercial Real Estate debt markets: what’s in store? 10.00 - 11.00 Co-organiser: CRE FC Sponsor: The Baupost Group LLC

Walking the legal tightrope in a digital REvolution 11.00 - 13.00 Co-organiser: American Bar Association, International Section

Italian Real Estate: back to the essentials 11.30 - 13.00

In association with: Wisconsin School of Business

Latest trends and innovative solutions in smart buildings 10.00 - 11.30 Budget & economy hotels : from basic to revamping 10.30 - 12.30

GREEN ROOM

Sponsor: Bouygues Construction

Open stage Runner’s Up “Big and Open Data: the impact on the property industry” 11.00 - 12.00

Co-organiser & Sponsor: JLL Hotels

From urban planning to designing resilient cities 12.00 - 13.00

Co-organiser: Chiomenti Studio Legale

CONFERENCE ROOMS AT MIPIM

LERINS HALL

Networking Lunch

ins H

Central Europe industrial property: from low-cost manufacturing to high-tech industries 14.30 - 16.00

2 case studies Latest trends and innovative solutions in smart buildings 14.30 - 16.00

Sponsor: CTP

Winner’s Crowdsourced session « The power of the crowd: a game changer in commercial real estate » 16.00 - 17.00

How to ﬁnance energy efﬁciency investment in buildings? 16.00 - 17.00 Sponsor: European Commission

Cr En oiset tra te nc e

GRAND AUDITORIUM Palais 1

Public procurement: stimulating digitalisation, sustainability and investment 17.00 - 18.00 Sponsor: European Commission

MIPIM Awards Ceremony Grand Auditorium From 19.00 - Open to all MIPIM Participants

* By invitation only events

Protocol Entrance

RED ROOM Palais 3

UK Cities Majestic Hotel 15.30 - 16.30

2 case studies Latest trends and innovative solutions in smart buildings 16.00 - 18.00

GREEN ROOM

PALAIS DES FESTIVALS

BLUE ROOM Palais 3 RED ROOM Palais 3

GAREIME MARIT

cture Architefé Ca

Co-organiser: Loan Market Association

Sponsor: Baker & McKenzie

BLUE ROOM Palais 3 A

Sustainability and green lease best practices: overview and challenges 14.30 - 15.30

Does the digital revolution mark the end of relationship lending? 14.30 - 15.30

ORANGE ROOM Palais -1 ORANGE ROOM Palais -1 GREEN ROOM (Mipim Innovation Forum)

Access to MIPIM 2015 conferences is free of charge for all registered delegates, within the limit of space available.

More details about speakers, content and conference venues on

www.mipim.com Programme as of January 22nd 2015, may be subject to change

THINK BIG ... AND THINK FAST. Logicor has quickly grown to become the second largest owner and operator of logistics property across Europe. No matter who you are or how fast your business is growing, if you need warehouse space, Logicor can help. With 6 million square metres in 239 warehouses across 12 countries, weâ&#x20AC;&#x2122;re thinking big. Are you? MIPIM 2015 location: P-1, A1, Logistics Pavilion www.logicor.eu mipim@logicor.eu

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