B U S I N E S S
MIPIM R E I N F ORC I NG R E A L E STAT E
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common members, there was a unanimous interest to join forces at Mipim,” explains Mr Rein. “The predominant objective is to multiply our network to obtain better visibility and this event will strengthen us both in the market. Mipim is an ideal platform upon which to showcase the two complementary associations and in turn better demonstrate Luxembourg’s offer,” adds Mr Bechet. “There is a lot of buying power in Luxembourg and Mipim allows us to present the broad scope of activities there.” With over 245 members (160 personal + 85 supporting members), LuxReal’s goal is to be the first port of call for newcomers or any parties with a broad interest in Luxembourg for real estate. “A hub for real estate professionals, we are a valuable entry point as we can quickly connect people,” says Mr Rein. “Luxembourg’s size means we know each other, which makes finding the right person very efficient.” LuxReal celebrates its 10th anniversary this year and its conferences and social events are a prime opportunity to network, share best practices and news. ON THE WISHLIST Today, you have two core types of people who attend Mipim from Luxembourg: the developers talking about bricks in Luxembourg and the fund industry talking about real estate funds investing worldwide. As a broker and investment consultant, Mr Bechet goes to sell products that he has under mandate or to find investors who would like to learn about Luxembourg. “Each year I find new people and discuss whether Luxembourg is a big enough market for them to take
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one or two buildings. We try to bring new players into the investment world to do deals in Luxembourg, where a core investment generally lasts seven years.” Luxembourg is a tiny market compared to the larger capitals but manages to make a difference at Mipim. “Worldwide there is one place where all investors have at least one address: Luxembourg. And not only an address, but an address with substance,” says Mr Bechet. From the AIF perspective, Mr Rein attends mainly to meet his investment manager clients, and confirms that over the last ten years Luxembourg has moved up the wishlist of where to invest. “Product setting up is easier to sell internationally if it is Luxembourgdomiciled. The well-being of Luxembourg translates to business and the main drivers are clear: a stable economy and politics.” The impact of attending Mipim directly increases the business of fund managers. “Luxembourg has a very positive environment to set up fund structures and is successful at setting up funds being distributed globally, still ranked number one as largest fund domicile in Europe and the second largest fund centre in the world after the US,” continues Mr Rein. “Luxembourg stands for stability, prosperity, internationality, neutrality. A proven track record, highly professional infrastructure, international environment, sophisticated people, multilingualism, experience and solid products are what keeps Luxembourg in the view and consideration of investors.” RECORDS AND FORECASTS Globally, 2018 will set a record regarding the volume of money
invested in real estate. Luxembourg was able to pronounce the healthy state of its real estate market in 2017, and is set to report further growth and prosperity for 2018. Regarding the investment volume in Luxembourg, there was a peak in 2007 at €2.7 billion that went down to under €1 billion in 2008-2009, and this year came back to €2 billion. “2019 is very prospective due to the UK, which remains an uncertain destination. It bears opportunities but a lot of money is on hold and it needs to be invested somewhere,” Mr Rein underlines. He alludes that the prospection that business is growing in Luxembourg is a possible indicator for rental income and stability – those are indicators that might be a tailwind for further investments. Luxembourg’s position on the market sparks a certain intrigue, and there is an interest in the nation as a fund hub as well as a real investment destination.
“Luxembourg stands for stability, prosperity, internationality, neutrality.” Sven Rein
Vice-president of LuxReal and managing partner at Pancura
20/02/19 13:59