Mipim 2015 news 3

mipim nEWs ®

DAY

Thursday 12 March 2015

www.mipim.com

03

INVESTMENT

Property’s masterminds favour quality over price P5

DIGITAL ECONOMY

Disruptors At The Door P29

MAYORS THINK TANK

City leaders talk business P35

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CONTENTS NEWS

NOT TO BE MISSED

12 Lyon comes up to par Gerard Collomb outlines how Lyon is starting to match other European cities by developing its services sector 14 Berlin plays to win The German capital’s bid to host the Olympic Games and the redevelopment of the city’s Tegel airport site are part of wideranging plans to redevelop the city’s real estate provision

ANALYSIS 22 Germany investment A visual guide

FEATURES

+ hedule

Sc

nce Confere me m progra P.15

9.30-10.30 NETWORKING ROOM HTL, PALAIS -1 n EVENT

FLASH MOB HOSPITALITY 10.00-11.00 BLUE ROOM n PANEL

FOCUS ON JAPAN 10.00-11.00 RED ROOM n PANEL

MASTERMINDS: COMMERCIAL REAL ESTATE DEBT MARKETS: WHAT’S IN STORE? Sponsor: The Baupost Group Co-organiser: CRE Finance Counsil 14.30-15.30 RED ROOM n PANEL

HOW TO UP-SCALE BOTH THE DEMAND AND SUPPLY OF ENERGY EFFICIENCY INVESTMENTS IN BUILDINGS? Sponsor: European Commission

41 Focus on the Netherlands Netherlands grows in importance as an international business hub 42 Focus on UAE Investors drive development as demand exceeds supply

15.30-16.30 RED ROOM n PANEL

PUBLIC PROCUREMENT:STIMULATING DIGITALISATION, SUSTAINABILITY AND INVESTMENT Sponsor: European Commission

Check out LIVE interviews from MIPIM with the leading players in the industry on www.mipim.com

mipim neWs 3 ®

The official MIPIM daily newspaper Thursday 12 March 2015

Director of Publications Paul Zilk Director of Communication Mike Williams

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

EDITORIAL DEPARTMENT Editor in Chief Graham Parker News Editor Doug Morrison Proof Reader Debbie Lincoln Reporters Ben Cooper, Mark Faithfull, Steve McCormack, Mark Moore, Liz Morrell, Paul Strohm Sub Editors Clive Bull, Julian Newby, Joanna Stephens Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designers Muriel Betrancourt, Nour Ezzedeen, Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographers Christian Alminana, Olivier Houeix, Phyrass Haidar, Michel Johner, Yohann Mortier Editorial Management Boutique Editions PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Manager Amrane Lamiri Production Assistant Eric Laurent ADVERTISING CONTACT IN CANNES Laurianne Di Cecca +33 6 09 68 32 71 laurianne.dicecca@reedmidem.com Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2015, Reed MIDEM Market Publications. Publication registered 1st quarter 2015.

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11/03/15 21:29

NEWS Italy ready to ‘turn page’ on crisis, Buzzetti tells investors

Canada’s gift to the world: ‘maple on the snow’

CANADIANS SAY HELLO WITH MAPLE ON SNOW THE RECIPE for one of Canada’s national dishes was demonstrated outside the Palais des Festivals yesterday.

Take the sweet sap from the maple tree — aka maple syrup — boil it and then pour it over fresh snow, or in this case crushed ice. Result: ‘maple on the snow’.

The assembled Canadian mayors at MIPIM and Reed MIDEM’s Paul Zilk were the first to taste the treat.

‘Maple on the snow’ remained available for tasting by delegates for the rest of the afternoon.

The Canadian mayors and officials present at the tasting included Perth County’s Robert Wilhelm, Halimand County’s Ken Hewitt, Summerside’s Bill Martin and Jeff Cantwell, Montreal’s Russell Copeman, Durham County’s Roger Anderson and Edmonton’s Gary Klassen.

Zilk said Canada has the largest number of delegates from the widest spread of territory out of the 100 countries attending MIPIM this year. Delegates — and mayors — are in Cannes from Edmonton in the west to Nova Scotia in the east of the country.

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OW IS the time to invest in Italy, where low interest rates, a post-crisis price correction, increased mortgage lending and economic growth have created a strong platform for investors, said Paolo Buzzetti, president of Associazione Nazionale Costruttori Edili (ANCE).

Speaking at a presentation on Italy’s tallest building, the soon-to-be-completed Allianz Tower in Milan, Buzzetti said: “We have already seen the Qatar Fund acquire Porta Nova in Milan and UK investment funds are active in our country. It’s time to forget the crisis and turn the page. Big deals have transformed the global image of Italian real estate and now is the time to invest.”

Andrea Cappoli, assistant CEO of Allianz Tower builder Colombo Costruzioni, said that the 207-metre, 50-storey office block, designed by Arata Isozaki with Andrea Maffei Arch itects, will for m the centrepiece of the threeskyscraper CityLife development, which will also include residential, retail, public pa rks and a new

metro station connecting the old fair grounds to the city centre.

“This is the largest urban redevelopment project in Italy and one of the biggest in Europe,” Cappoli said. “The tower is directly linked to the metro and will provide 50,000 sq m of office space, plus 24,000 sq m of under-

ground car parking over three levels. It has been designed to be highly energy efficient and has obtained LEED Gold pre-certification.”

In all, the CityLife project will cover 366,000 sq m, with a 170,000 sq m park and three iconic towers, creating a new skyline for this area of Milan.

ANCE’s Paolo Buzzetti: “Now is the time to invest”

mipim HIGHLIGHTS Day two of MIPIM 2015 saw a packed programme of events from around the world of real estate

Les Matins de L’economie

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Making connections at the Flash Mob

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Don’t be enticed by price — it’s still all about the quality Cardiff council’s Phil Bale

CARDIFF SHOUTS OUT TO MARKET

Masterminds at work: Unibail-Rodamco’s Christophe Cuvillier (left), PSP Swiss Property’s Luciano Gabriel and British Land’s Chris Grigg

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ESPITE the current market dynamics of low inflation and a weak euro, real estate investors should remain focused on quality and not be enticed by price, a panel of CEOs said at the Masterminds: Growth Of The European Listed Real Estate Sector session.

Unibail-Rodamco CEO and chairman Christophe Cuvillier warned that, “when money is this cheap, everything seems worth it, but this is not the case”. He added that his company had implemented a policy of divesting properties that it did not feel matched the requirements of its full portfolio.

This view was echoed by Brit-

ish Land chief executive Chris Grigg, who said that the company’s strategy was “fundamentally about quality”. He also ruled out investments beyond the UK. “We have used the past couple of years to sell off property that we didn’t feel was worthy of our portfolio,” he added. “Sometimes we have chosen not to replace that property, reducing our gearing. That’s not us calling the end of the cycle — simply that it suits us to lower our gearing at the moment.”

PSP Swiss Property CEO Luciano Gabriel also said his company did not intend to step outside its home market. He viewed the best value in Swiss real estate as “asset management and re-

Focus on Sub-Saharan Africa

furbishment” and said that PSP Swiss Property intended to focus on its existing portfolio.

On the changing dynamics, Cuvillier said Unibail-Rodamco was unlikely to look beyond Europe unless it saw a compelling opportunity “where we could really bring something new to market”.

He also said that the merger of Klepierre and Corio would not alter Unibail-Rodamco’s strategy, as the average value of one of its properties was more than double the average of the rival group’s.

“We are not in the same competitive market and, in fact, most of our domestic shopping centres are not in the same cities or regions,” he added.

The Only Lyon stand

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CARDIFF, capital city of Wales, reveals its development ambitions to the real estate world at MIPIM. Less than two hours from London, with an attractive cost base, good transport and super-fast broadband, Cardiff is promoted as one of Europe’s best-connected and most competitive cities.

It is expected to have the fastest growing population in the UK over 20 years.

Cardiff is in Cannes to raise its profile internationally, in a series of moves including joining the UK’s Core Cities Group in September.

Cardiff is currently seeking a multi-million-pound ‘City Deals’ funding boost from the UK government for the Cardiff Capital Region, to “help support improvements, especially in transport connectivity. Such initiatives are important if we are to highlight the investment potential of the west of the UK”, said leader of Cardiff council, Phil Bale.

He added: “We often don’t shout loud enough when promoting ourselves.”

Invest in Saint Petersburg

mipim

NEWS AERIUM FUND SELLS MINORITY STAKE TO NORTHSTAR REALTY EUROPEAN real estate fund manager Aerium has sold a 15% stake in its operating business to NorthStar Realty Finance Corp (NRFC), which is a NYSE-listed commercial real estate investment company with $16.4bn of assets under management. NRFC is structured as an externally managed REIT, managed by NorthStar Asset Management Group (NSAM). This transaction, announced yesterday at MIPIM, supports NSAM’s European expansion ambitions as it benefits from access to Aerium’s established investment platform. Aerium currently manages €6.1bn of assets across 12 countries.

MISHCON DE REYA’S CLIENTS PUSH PROPERTY TO TOP OF THE AGENDA HOUSING and planning remains top of the agenda for clients of real estate law firm Mishcon de Reya, according to Susan Freeman, partner at the firm.

She said the two concerns were apparent at MIPIM which she said was a great place for her to both spend time with her clients and contacts, establish new connections and take the pulse of the market.

“MIPIM never disappoints,” Freeman said.

Brazil resort back next year following launch in Cannes

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OLLOWING its successful launch on the international stage here in Cannes, the backers of the Natura do Rio planned urban resort in Brazil, have committed to returning next year with an update on the scheme.

“This is the most important tourism project in Brazil and there is no more beautiful area in the country,” said Washington Quaqua, mayor of Marica, one of the backers of the project. “Following the success of our international launch we have agreed with COFECI to return to MIPIM next year with a bigger presence to highlight progress on Natura do Rio and promote all the projects under way in Marica.” COFECI is a nongovernment association of Brazilian real estate professionals.

The 850-ha project is located on the last tract of undeveloped oceanfront land within 35 km of Rio de Janeiro.

The project boasts 8.5 km of oceanfront on the east with pristine beaches, a large lagoon on the west with mountains beyond.

There will be a strong commitment to preserve the rich,

US Breakfast Italy’s Allianz Tower unveiled

Brazilian delegates at the COFECI stand: Lourival Casula (left), municipal secretary of Marica; Emilio Jimenez, CEO of IDB; Washington Quaqua, mayor of Marica; Joao da Silva, president of COFECI and Jose Murillo, chairman of IDB

ecological environment and wildlife with 84% of the area preserved. A nature observatory and aquarium, designed

by Oscar Niemeyer, will also be included in the scheme.

The project will produce high-quality housing with state-of-the art amenities.

Beach clubs and golf resorts will draw people to the locale. Exclusive resort and primary residential products will be available, such as

Eyes on Finland

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luxury villas, condominiums, single-family homes with pools, gardens and recreational sports areas.

Local expansion of Brazil’s offshore oil industry is expected to create 20,000 direct jobs in the area in coming years and the Natura do Rio will provide much needed accommodation and amenities for these workers.

Development will commence this year.

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TORONTO GLOBAL CITY

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1 World’s most taxcompetitive major city.

(KPMG)

toronto.ca/mipim

Over 51% of the population is foreign-born, making Toronto Canada’s most diverse and multicultural city.

STAND #P1.E33

Ranked 4th globally for overall ease of doing business.

(PwC)

mipim

NEWS MINERVA TRIO MAKE A MOVE THREE former senior executives of UK property company, Minerva, have joined privately-owned real estate company, Trust Estates. Trust Estates focuses on the commercial and residential sectors in the UK and the move will significantly bolster its ability to acquire, finance, develop and manage larger scale projects in partnership with new institutional and overseas investors.

The former Minerva executive board: Salmaan Hasan, Tim Garnham and Ivan Ezekiel join Trust Estates as directors and shareholders. Minerva was bought out by Delancey in 2011.

Trust Estates is a private developer owned and run by Andrew Gifford, William Cadogan and Helen Cadzow.

Cadogan, part of the family which owns the Cadogan Estate, is the majority shareholder in Trust Estates, while Gifford is its chairman.

Barcelona Catalonia shows off high-tech science park project

THOR EQUITIES LOOKS NORTH FOR GROWTH US-BASED Thor Equities is currently looking at northern European locations for further expansion. The company is looking at Denmark, Norway and may consider Sweden, “although there is nothing in the pipeline yet,” chief financial officer Michael Schurer said.

The company already has assets in Paris, Cannes and London, where it is soon to exchange on another building in Oxford Street, but the details are so far undisclosed.

While at MIPIM, Thor is showcasing a number of assets that are now for sale because their funds are maturing or because there is no further scope to add value. “We are a value-add business and not a long-term holder,” Schurer said.

Towering ambitions

Barcelona Catalonia: Looking for investors for over 20 projects

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NEW urban growth area has been established outside Barcelona which will include the largest science and technology park in southern Europe and features the Alba Synchrotron light facility.

The 340 ha Parc de L’Alba is one of a portfolio of projects being promoted on the Barcelona Catalonia stand, a collaboration between the city and the north-east Spanish region.

The business area of Parc de

l’Alba will cover about 130 ha, and as well as the science park the project includes residential, a hotel and halls of residence for the nearby Autonomous University of Barcelona.

There will also be retail and office space, healthcare and educational facilities and a data processing centre.

Elena Rodriguez Armale with the sales team of Incasol, part of the government of Catalonia, said the region is at MIPIM to talk to potential investors in the project.

Miss France visits the Calais stand

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The Barcelona Catalonia stand is an umbrella for 25 public and private participants and around 24 projects are being promoted in Cannes.

“Barcelona is the capital and commercial brand of the region and the largest portion of economic activity occurs in the metropolitan region,” Mario Rubert, city promotion manager Barcelona City Council said. “While Catalonia is more than Barcelona, Barcelona is the front door of Catalonia.”

Reed MIDEM’s Christophe Chupot greets Vitaliy Klitschko

MIPIM 2015 HOTEL, TOURISM & LEISURE LOUNGE designed by AW² stand P-1.D29 alley 7 level -1 www.aw2.com

photo Daniel Moulinet

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architecture & interior design

mipim

NEWS ROOM FOR HOTEL SECTOR GROWTH IN GEORGIA ACCORDING to the UN’s World Tourist Organisation, Georgia has one of the highest growth rates in terms of international tourist arrivals over the last three years among European countries.

Georgia was fourth in Europe by growth rate of international tourist arrivals in 2013 after Iceland, Bosnia and Herzegovina, and Greece.

The Georgian government therefore sees room for growth and has commissioned a study by consultant Colliers International to give insights into all segments of the real estate market, from residential, commercial, hospitality, to entertainment, retail, logistics and warehousing.

Currently Georgia is open for investments with the national government adhering to the liberal and open market economy principles, bringing in reforms to ensure an attractive business climate and encouraging investors to explore the country.

More openings for Hyatt in ‘highly-targeted’ expansion

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THE HYATT hotel chain will open around 55 new hotels this year, building on over 40 added to its portfolio in 2014, according to Hyatt International senior vice-president acquisitions and development EMEA, Peter Norman. This will add around 10% to its global portfolio of circa 560 hotels.

Last year the group opened two flagship Park Hyatt hotels in Vienna and New York, although Norman admitted that the search for a suitable site to develop a London Park Hyatt goes on.

“We’re very keen to open a Park Hyatt in the Mayfair or Knightsbridge areas but of course we are competing for development sites in the best locations with not only hotel groups but residential and office developers,” he said.

Globally, the company has embarked on what Norman emphasised was a “focused and highly-targeted” expansion plan.

“We are not the biggest and we don’t aim to be. We are extremely

Hyatt International’s Peter Norman

careful about only expanding at a rate that means we can maintain control of our brand standards,” he said.

Currently under development, Park Hyatt Majorca will be the company’s first opening in Spain, where Norman would like to add hotels in Madrid and Barcelona, while he would also like to open in Rome, having established in Milan, and in Geneva to add to its Zurich site.

In Russia Norman said the company “still liked the long-term dynamic”, while Hyatt is also expanding in Africa, with a number of new schemes either under construction or being considered.

“We are very positive about the opportunities around Africa but what you have to remember is that the continent is moving at a number of different speeds, depending on the market,” he said. “The important thing is to be flexible enough to evolve your strategy around the growth opportunities.”

Axa presents Paris office

Christophe Facomprez: Looking for large corporate users

ONE OF Paris’s largest office developments, the 86,000 sq m Qu4drans, is being showcased at MIPIM by Axa Real Estate, which is targeting large corporate occupiers.

The development is located in the 15th arrondissement, which is south-west of the city centre, beside Paris’ ring road, the peripherique, and is adjacent to the French defence ministry headquarters development.

Designed by Jean-Michel Wilmotte, the Qu4drans project comprises four low-rise buildings in a campus setting — 50% of the site is open space.

The buildings will range in size from 15,000 sq m to 26,000 sq m.

Axa Real Estate, which is both developer and asset manager, is speculatively developing two of the buildings, which are due for

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completion in October. Work will start on the remaining buildings this year.

Christophe Facomprez, Axa head of transactions France, said marketing started in September and there is already a lot of interest.

“It is a big scheme for Paris and it would suit large corporate users,” he said.

According to Facomprez the scheme, with a headline rent of €580 per sq m, might also attract some of the companies that supply the defence ministry. Some have already visited the site.

Qu4drans will be held by Axa’s opportunistic third development venture fund whose strategy is to buy large office schemes in Europe. Letting agents are JLL and BNP.

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NEWS NAR FLIES THE FLAG FOR US REALTORS FOREIGN investors put about $92bn (€86.8bn) into residential real estate in the US last year and a further $35bn into commercial property, according to the US-based National Association of Realtors (NAR), part of whose purpose at MIPIM is to help maintain that flow.

William Brown, first vice-president of NAR, said that with around 21,000 participants attending MIPIM there are clearly opportunities to do deals. “We also like the idea of exposing the ‘Realtor’ brand to the whole world,” Brown added. “We want to emphasise the difference between a realtor and a licensed broker — a realtor has a code of ethics that sets us apart.

Anyone who is seeking investments in the US should use a realtor when they are doing deals. It’s the gold standard for real estate.”

Brown said that NAR is now the largest trade organisation in the world, with 1.1 million members.

About 70,000 members are commercial brokers and a further 283,000 are engaged in both residential and commercial deals. “MIPIM gives our members the opportunity to interact with investors and other brokers, and to make connections,” Brown added.

The NAR delegation at MIPIM includes members from across the US. John Dohm, chairman of the Miami Association of Realtors, said that overseas investors seeking diversification by investing in the US would find that it is “probably the easiest country on earth in which to do business”.

Lyon’s transformation into major European city gains momentum

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YON attracted 80 new companies and more than €800m in real estate investment in 2014 — and will be hoping for more in 2015 after this week’s MIPIM. At a press briefing yesterday, Gerard Collomb, senator-mayor of Lyon and president of the Urban Community of Lyon, said that the area offered huge opportunities. “We are here to sell Lyon in terms of the development of its services sector,” he said.

“Little by little we are coming up to a par with the other major European cities, such as Barcelona.”

Collomb said France’s second city had chosen to develop in three main sectors — life sciences, chemicals and the digital industry. He outlined four major projects currently under way in the region. The first, Lyon PartDieu, is the main business district and consists of new highrise buildings, including the 42,000 sq m Incity Tower and 32,000 sq m Sky 56. Entering its second phase is Lyon’s urban development project Lyon Confluence, which will add 190,000

Lyon mayor Gerard Collomb: “coming up to a par with other major European cities”

sq m of tertiary space in the coming years.

Carre de Soie, in the eastern part of the Lyon metropolitan area, will create a tertiary sector that will add around 200,000 sq m of

floor space. And finally, work is also on going in Lyon’s city centre, where opportunities include the conversion of former prisons to create 11,300 sq m of office space across three buildings.

THE JAPAN Breakfast yesterday addressed the question: Why Invest Now? The session was

moderated by Leonard Meyer zu Brickwedde (left) of Kenzo Capital, pictured here with Kisaburo Ishii, vice-minister of Japan’s Ministry of Land Infrastructure, Transport and Tourism. Other speakers included Mitsui Fudosan’s Shuji Tomikawa and Jesper Koll of JPMorgan Securities Japan.

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NEWS

Olympic bid and new airport usher in fresh era for Berlin

B Edo Rocha, CEO of Edo Rocha Arquiteturas will be among a number of Brazilian firms presenting in the Architecture Cafe this afternoon

BRAZIL DESIGNERS SHOWCASE PLANS INVESTORS interested in the Brazilian market should head to the Architecture Cafe this afternoon where there will be presentations from Brazilian architects highlighting current projects and future potential.

The session, hosted by Built By Brazil, will comprise four 30-minute debates from six Brazilian architecture offices. The talks will cover urban design, sustainability and contemporary architecture; improving real estate development; exploring a new way of urban intervention; and creative solutions from a lack of technology and financial resources.

Edo Rocha, CEO of Edo Rocha Arquiteturas and president of ASBEA — the Brazilian Association Of Architecture Offices — said: “There are lots of opportunities for investors and ROI (return on investment) is very high and quick.”

ERLIN’s bid to host the Olympic Games and the redevelopment of the city’s Tegel airport site are part of wide-ranging plans to redevelop the city’s real estate provision and create muchneeded additional residential and commercial space.

Andreas Geisel, the recentlyappointed senator for urban development and the environment, said that 5,000 new apartments will be built on the Tegel site after the airport closes in 2018, a year after the new Berlin Brandenburg airport opens. One of the city’s three science-focused universities will also re-locate to the area, which will become the host for the Olympic Village should Berlin be successful in its bid for the 2024 or 2028 Games.

In addition, new commercial space at Tegel will be based around urban technology businesses, focused on smart and clean city services.

Geisel said that Berlin was a growing city and that despite a rapid increase in the development of office space last year, demand was still running significantly ahead of supply.

Andreas Geisel, Berlin’s senator for urban development and the environment

He added that hosting the Olympics would be a “huge step” in developing the city and investment in infrastructure but insisted that plans for Tegel would go ahead regardless of the outcome.

“We have a huge demand for both residential and commercial space and we also want to

encourage more manufacturing in the city,” Geisel said. “The residential element will be part of what we call the ‘Berlin mix’, which means it will be developed for all family budgets, while we are looking to support growth sectors such as the creative industries and science.”

UK parties with tea at the Majestic THE MIPIM UK Tea Party takes place this afternoon at the Majestic hotel, celebrating the inaugural London show in 2014 over tea and scones and presenting some new innovations for this year’s event.

Over 4,000 people attended last year’s show at Olympia in London, including over 1,200 investors representing more than €180bn in real estate, with the focus very much on London and the UK regions.

“The event follows a very different model to MIPIM in Cannes,” MIPIM UK deputy director Julien Sausset said. “It is about getting far more deeply into a single market but still retaining the important net-

MIPIM UK 2014

working opportunities. For 2015, attendees can expect another packed and very high level conference programme, more closed-door events for senior executives, project tours and a focus on large occupiers.”

Sausset described the second year plans as “very important” in con-

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tinuing the momentum and said that among initiatives for 2015 would be a fresh approach to the London Pavilion, a three-day cycling race to the show, a closer tie-in with infrastructure projects, more key industry partnerships and “a few surprises” for participants.

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THURSDAY & FRIDAY IN BRIEF THURSDAY 12 MARCH BLUE ROOM

RED ROOM

ORANGE ROOM

GREEN ROOM

Leaders’ Breakfast* Private talks with Amlan Roy, Head, Global Demographics & Pensions, Credit Suisse [Event] - Majestic Hotel, Salon Diane 8.30 - 9.30 Sponsor: Lennar International

Focus on Japan [Panel] 10.00-11.00

MASTERMINDS Commercial Real Estate debt markets: what’s in store?

[Panel] 10.00 - 11.00 Co-organiser: CRE FC Sponsor: The Baupost Group LLC

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

Italian Real Estate: back to the essentials [Panel] 11.30 - 13.00

Beyoğlu Municipality Breakfast* [Event] Verriere Californie, Palais 5 9.00-10.30

Flash Mob Hospitality [Event] Networking room HTL, Palais -1 9.30 - 10.30

GREEN ROOM MIPIM Wrap-Up [Panel] 10.00 - 11.00 In association with: Wisconsin School of Business

Big and Open Data: the impact on the property industry Crowdsourced session winner 2 [Panel] 11.00 - 12.00

Sponsor: Bouygues Construction

From urban planning to designing resilient cities [Panel] 12.00 - 13.00 Italian Lunch* [Event] - Verrière Grand Auditorium, Palais 1 13.00-14.30 Sponsored by ANCE Associazione Nazionale Costruzioni Edili and ITA - Italian Trade Agency in collaboration with Assoimmobiliare and Federimmobiliare

The future of sustainable Real Estate - occupiers, investors and policy; 2015 and beyond [Panel] 14.30 - 15.30

How to up-scale both the demand and supply of energy efficiency investments in buildings?

[Panel] 14.30 - 15.30

Sponsor: Baker & McKenzie

Sponsor: European Commission

The power of the crowd: a game changer in commercial real estate Crowdsourced session winner 1 [Panel] 16.00 - 17.00

Public procurement: stimulating digitalisation, sustainability and investment [Panel] 15.30 - 16.30

Brazil - 2015, the right time to invest in Latin America largest property market?

[Panel] 17.30 - 18.30

OTHER LOCATIONS

Co-organiser & Sponsor: JLL Hotels

Co-organiser: Chiomenti Studio Legale

H&T Lunch* [Event] - HTL Pavilion 13.00 - 14.30

Sponsor: GDF SUEZ

Budget & economy hotels: from basic to revamping [Workshop] 10.30 - 12.30

LinkCity: Case studies of innovative approaches for sustainable neighbourhoods [Workshop] 10.00 - 11.30

FRIDAY 13 MARCH

Sponsor: European Commission

Central Europe industrial property: from low-cost manufacturing to high-tech industries [Workshop] 14.30 - 16.00 Sponsor: CTP

Does the digital revolution mark the end of relationship lending?

[Panel] 14.30 - 15.30 Co-organiser: Loan Market Association

Invest in the Philippines: The Next Big Thing in Southeast Asia’s Tourism [Workshop] 16.00 - 17.30 Sponsors: Department of Tourism Philippines, Tourism Infrastructure and Enterprise Zone Authority (TIEZA), Tourism Promotions Board Philippines (TPB PHL) Followed by cocktail

The only way is up [Event] - Majestic Hotel 15.30 - 16.30 Estates Gazette event, supported by Cluttons Followed by MIPIM UK Tea Party

MIPIM Final Press Conference [Event] Networking room HTL, Palais -1 17.30 - 18.00

MIPIM Awards Red Carpet & Cocktail I 18.15 - 19.00 [Event] - Grand Auditorium Foyer MIPIM Awards Ceremony I 19.00 - 20.00 Grand Auditorium Sponsor: Immobilien Zeitung

Open to all MIPIM Participants * By invitation only events

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Programme as of February 23rd 2015, may be subject to change

05/03/2015 15:09

mipim

NEWS

Tradition meets future vision in opportunity-rich Istanbul

I ING MEDIA founder Lianne Tritton and Anthony Danaher met professionally at MIPIM 20 years ago.

Now Danaher, who has been involved in the development of MIPIM since its inauguration and currently works with the UK government on inward investment and regeneration, is set to joint ING as its executive chairman.

Active in real estate, architecture and regeneration PR, ING’s clients have included UK’s Cathedral, Czechbased Arendon Development and Croydon in south London.

INVITATION TO BANAT THE REGION of Banat, which stretches across Romania, Hungary and north-eastern Serbia, is on the hunt for investors for a number of projects.

Radomir Topalov, deputy director for the Regional Agency for Socioeconomic Development Banat, is at MIPIM to represent a number of municipalities and cities from his region. “We have very well equipped industrial zones and are a good location for both living and working,” he said, adding: “We are open for new investors.”

STANBUL’s position as a thriving trading centre will underpin the city’s on-going attraction to global investors, according to leading Turkish business figures.

Talking at yesterday’s Discover Istanbul: The Capital Of Finance, Potential And Culture conference, Murat Kalsin, vice-president of the Istanbul Chamber of Commerce (ICOC), said: “This most ancient of trading cities is now also one of the newest in terms of investment and development.”

Trading remains supreme for the city and follows 15 years of huge economic growth in Turkey, Kalsin said. He added: “The Istanbul Chamber of Commerce is one of the biggest groupings of trading companies in the world, with 360,000 members, all of them ready to assist and co-operate with foreign investors. And it’s useful to bear in mind that 25,000 of the ICOC’s member companies are actually foreign.”

The readiness of Istanbul for investment was reinforced by Firat Kasapoglu, president of both The Partners and YEKON, the

ICOC’s Murat Kalsin (left) and The Partners/YEKON’s Firat Kasapoglu talk at the Discover Istanbul conference

Turkish creative industries council. “For 1,600 years, Istanbul has been the epicentre for world trade. It still is. Not just between Europe and Asia, but between those two and Africa as well.”

Turkey is currently the 16th largest economy in the world, Kasapoglu said. “With a GDP worth $822bn (€776bn) a year, there is no doubt that Turkey’s

current growth rates of around 5.6% a year will allow the country to rise up through the ranks of the world’s economies. And now is a good time for foreign investors to get in on the ground floor.”

Kasapoglu pointed to the massive infrastructure projects now being put into place, which will also facilitate trade, both in and around Istanbul and across the country.

Sharing tales of two port cities THE MOST effective and sustainable means of driving growth in the historic port cities of Liverpool and Hamburg were debated at an event held on the UK city’s stand.

As well as sharing a rich maritime history, the port cities agreed that they have much to learn from each other’s experiences as catalysts for large-scale integrated urban development.

Gerry Hughes, senior director of planning development and regeneration at Bilfinger GVA, said: “The reasons Hamburg and Liverpool exist today are because of their waterfronts. However, while drawing upon this great

Peel Holdings’ Lindsey Ashworth (left), HafenCity’s Prof Juergen Bruns-Berentelg, Liverpool mayor Joe Anderson and Bilfinger GVA’s Gerry Hughes

assets, we also need to take a wider view beyond the waterfront to drive our cities forward and to compete with other rival commercial hubs by leveraging

16

large-scale urban infrastructure.”

The ideas developed during the brainstorming event were recorded on a blackboard for further discussion.

Bouygues Construction - Innovation and Sustainable Construction Department - Design and production: agence-heidi.fr - Photo credits: Thinkstock

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mipim

NEWS

High-speed railway link boost for Bordeaux regeneration

F East 37th Street Residential Tower has been designed by Perkins+Will

A NEW LANDMARK FOR MANHATTAN ARCHITECTURE and design firm Perkins+Will unveiled the design for East 37th Street Residential Tower, a Manhattan high rise, at MIPIM this week.

The 65-storey condominium tower is to be developed by Turkish developer NEF. With a shimmering angled curtain wall, the building features five clusters of shared amenity and park spaces at specific intervals along the tower’s rise. The five open-air gardens are arranged as a series of overlapping, angled and diverse spaces all within easy reach of any given condominium unit. “The idea is to create a new kind of communal ecosystem of social relationships within a thin tower design,” Scott Allen, associate architect and designer with Perkins+Will said.

The project won a MIPIM Architectural Review Future Projects award in the Tall Buildings category which was presented in Cannes last night.

RENCH city Bordeaux is making ready for the arrival of a rapid rail link to Paris which is due to open in 2017 and will reduce travel time to the capital to two hours.

The upgraded rail service to Paris — currently about 590 km away and a three- to four-hour train journey — will unleash the potential of a large area of neglected land immediately adjacent to the rail station. Indirectly it will boost demand for a number of development projects across the region which are being showcased at MIPIM. Former French prime minister Alain Juppe inaugurated the Bordeaux Metropole stand on Wednesday and outlined some of the region’s key schemes.

The Bordeaux Euratlantique project will regenerate a 738-ha area on both sides of the Garonne river close to the Bordeaux St Jean railway station. The project will provide a mix of space including of-

Alain Juppe presents the Bordeaux project portfolio

fices, shops and housing and will be built over a 20-year period.

Speaking on the Bordeaux Metropole stand, which has brought together representatives from 28 towns in the region, Alain Juppe highlighted the Brazza project, which will provide 4,500 hous-

ing units, 75,000 sq m of offices and 90,000 sq m of craft activities, shopping and recreation on a 53-ha site on the right bank of the Garonne. Development of the site has been made possible by the opening of the new Jacques Chaban-Delmas bridge.

Barking mad for new London homes

Darren Rodwell, leader of the London Borough Of Barking And Dagenham

are no longer two English towns with a village mentality. We are a borough that needs to grow for London to become the mega city we want it to be,” he said.

With saturation elsewhere Rodwell, leader of the London Borough Of Barking And Dagenham, said that the borough

“LONDON is pulsing again,” according to Darren Rodwell who spoke yesterday at a breakfast briefing at MIPIM hosted by Crofton and London Chamber Of Commerce And Industry. “It did about 90 years ago when Barking and Dagenham was formed but a lot has changed in 90 years. We

18

offered huge opportunities for growth. “London can’t go north, west or south — that only leaves us,” he said.

He highlighted the opportunity for up to 35,000 new homes and 10,000 jobs over the next 20 years but said that the private and public sector needed to work together in order to deliver that. He pointed out the council was the second largest investor in private business in the country, investing £32.5m a year.

“Building a significant number of new homes in London is possible,” Steve Hale, managing director of consulting engineer Crofton, said. “If other London boroughs take on a similar focus, and work with the private sector, there is no reason why London’s housing crisis cannot be solved.”

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NEWS MIND THE GAP BETWEEN CAPITAL AND RENTAL VALUES THE GULF between capital value and rental value has increased significantly over the past four years, according to consultancy Savills.

The firm highlights a rapid acceleration in the gap, which has historically stood around the 15% mark. In the first quarter of this year, in the markets involved in the study, the gap was found to be at an average of 37%.

The findings are based on a study carried out by Savills in which it examined movement between rental values and capital values in Paris, Brussels, Frankfurt, Munich, Amsterdam, Warsaw, Madrid and parts of London.

Commenting on the findings, Savills European research director Eri Mitsostergiou said: “Over the past 15 years, the widest discrepancy between capital and rental values was during periods of high investment activity, notably 2007 at 36% and 2014 at 37%. The investment market is driven not only by economic fundamentals and the anticipation of rental growth, but mainly by the weight of capital in property.”

RIO seeks investors for £100bn pipeline of ‘shovel-ready’ plans

MIPIM’s Julien Sausset (left), UK Trade & Investment’s Damian Nussbaum, UK Regeneration’s Jackie Sadek, RIO’s Sir Michael Bear, and UK Trade & Investment’s Sara Beswick and Gavin Winbanks

T

HE UK government’s Regeneration Investment Organisation (RIO) now has £100bn-worth (€141.5bn) of schemes in the pipeline awaiting capital from foreign investors. Of this total, £40bn are “shovel-ready”, according to the organisation’s chairman Sir Michael Bear.

RIO was launched last year to help overseas buyers become involved in regeneration projects throughout the UK, and works as a matchmaker between UK pro-

ject sponsors and foreign investors. The organisation, described

by UK Prime Minister David Cameron as “a one-stop shop”, gathers intelligence from British embassies and around the world to identify demand for investments in the UK. “We have spent a lot of time with local authorities to put together our offer — an intelligent match of what investors want and what we have got in the pipeline,” Bear said.

He added: “Here at MIPIM, I

have met investors from at least four continents to exchange ideas and gauge their appetite for real estate and to see where money is going.”

RIO’s successes to date include helping to secure Chinese investment in Manchester. The organisation has also teamed up with UK institution Legal & General Property, which set up a £1.5bn fund in January to co-invest in projects in a move intended to give overseas investors further confidence in the UK.

UK cities ‘out of the dog house’ UK CITY leaders gathered at MIPIM to take part in a panel debate on what they could do to capitalise on the growing devolution agenda.

The discussion revolved around where investment could come from, what role infrastructure investment had to play, whether regional cities should compete or co-operate, and whether it was more important they connect

with London or with each other.

Joanna Averley, director at Bilfinger GVA, said: “The UK’s regional cities are wonderfully diverse and so it is essential that the nature of the development suits the fabric of the city. It is also important that the growth of these cities remains sustainable and measured, and that cities avoid focusing on growth for growth’s sake.”

David Marks of Brockton Capital said that regional UK real estate as an asset class was “out of the dog house”, adding: “We are seeing annual returns of up to 11%.”

The panel also included Sir Howard Bernstein, chief executive of Manchester, Liverpool mayor Joe Anderson and representatives from Leeds, Newcastle and Cardiff.

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Yesterday’s Cities panel included Brockton Capital’s David Marks and Bilfinger GVA’s Joanna Averley

ANALYSIS 2014 Investment flows (â‚Ź1bn+)

Hamburg

2014 Top markets

$4.252bn

Bremen $1.482bn

Rhine-Ruhr $8.367bn

from USA to Germany

$7.032bn

Frankfurt/Rhine-Main $7.724bn

Stuttgart $2.055bn

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11/03/15 17:07

mipim

HAFENCITY, HAMBURG UNIBAIL-RODAMCO has signed an agreement with the City of Hamburg to develop Überseequartier in HafenCity. The development project is located 1 km south of the citycentre in the heart of the 157-ha HafenCity area, Europe’s biggest inner city development project.

The €860m project will include retail, restaurants, a multi-screen cinema, a cruise terminal, offices, housing and a hotel, covering a total of 184,000 sq m of which 50% will be dedicated to leisure and retail.

Berlin-Brandenberg $7.006bn

Saxon Triangle $2.391bn

Top deals 2014 (€500m+) Property

Price

Purchaser

Oberhausen Frankfurt

Centr0 Silberturm

$742m $568m

Unibail-Rodamco Samsung Group

Source: Real Capital Analytics

Location

Munich $5.838bn

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11/03/15 17:07

NEWS 186_MARSEILLE_N1&2_PIM

RENDEZ-VOUS

Marseille Métropole

Montenegro’s Branimir Gvozdenovic outlined the opportunities the country offers investors at a keynote address yesterday

Montenegro has right climate for international investment

MIPIM 2015 / R7- E57

M

ONTENEGRO’s minister of sustainable development and tourism Br a n i m i r Gvozdenovic is at MIPIM to outline the opportunities available to investors in his country.

In a keynote address he said the country offered a range of benefits including being one of the few countries in the world where you can experience a climate with the temperature of Cannes during MIPIM and snow in the mountains within only an hours drive.

He said the country was also one of the most stable coun-

Home to industrial and scientific innovation - Henri Fabre, PIICTO, ITER

tries in south east Europe with a range of economic advantages for investors.

“The government has agreed to design a package of measures to stimulate market investment which makes us one of the fastest growing investment destinations,” he said.

More than €100m is to be invested in the country’s infrastructure to help boost investment, Gvozdenovic said.

A number of investors also shared their projects during the keynote including Adriatic Marinas, Azmont Investments, Lustica Development and Atlas Group.

and the Marseille Immunopôle cluster and a model for the sustainable cities of the future with the EcoCity

by Euroméditerranée, the status of Marseille Métropole as a euro-mediterranean capital is confirmed.

The Turkey Pavilion was officially opened in a ribbon-cutting ceremony on Wednesday morning. The Pavilion brings together a number of major players in Turkey’s burgeoning real estate industry. Companies and organisations include; Ankara Chamber of Commerce, Ankara Fair, Aksoy Construction, Emlak Konut Real Estate Investment, Sogut Construction, Vadistanbul, Podium and Otonomi. Turkish ministries supporting the pavilion are: TOKI (the Turkish Housing Development Agency), the Turkish Ministry of Environment & Urbanisation and the Turkish Investment Support & Promotion Agency.

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Seine Aval development gets under way in Paris

VOTE FOR

T

HE SEINE Aval development project is at take-off stage, with developments to increase the housing stock, bolster the economy, improve links to Paris and regenerate the area sustainably.

Didier Bellier-Ganiere, general manager of Establissement Public d’Amenagement de Seine Aval (EPAMSA), said that the first phase of the development of 2,000 new homes was already under way, with a target of 13,000 in total. The organisation is at MIPIM to showcase the opportunities for investors and commercial occupiers.

Key to the project is the extension of railway line RER E from La Defense in Paris to Mantesla-Jolie, which will make Seine Aval a crucial element of the wider Grand Paris project and will mean the area is only 30 minutes by train from central Paris by 2022.

“This marks a wonderful opportunity for Seine Aval, which already has a strong industrial heritage and which will tie the area

THE FINNISH State and the City of Helsinki are organising an international design competition for a scheme that will see up to 200,000 sq m of mixeduse space constructed in the city over the next 10 years.

Helsinki High-rise, the masterplan of which is pictured here, is located in Pasila, just 3km from central Helsinki.

WIRTSCHAFTSWUNDER MADE IN GERMANY

Didier Bellier-Ganiere, general manager of EPAMSA

into not only Paris but the cluster of satellite towns around the capital,” Bellier-Ganiere said.

The developments will take around 10 to 15 years to complete but work has already begun not only on the residential component but also on a business village which will provide 10,000 sq m of commercial space.

“The project has sustainability as its guiding principle and it is about redeveloping what already exists,” he said.

It will comprise up to 10 towers of no less than 15 floors, creating a new neighbourhood for the city. The Finnish capital is one of the fastest growing cities in Europe and €300m has already been spent preparing the site.

The design and build competition is due to be launched in Q3, 2015.

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NEWS WHY PBB IS A ‘RARE ANIMAL’ AMONG BANKS SPEAKING at a briefing in Cannes, Bernhard Scholz, a member of the management board at pbb Deutsche Pfandbriefbank, described the institution’s understanding of the complex financial issues facing its clients.

“Pbb bridges the gap between real estate and public investment,” he said. “It is a rare animal that understands both markets and this will enable us to grow our business in the next few years.”

Margins are currently much improved, but pressure is causing a decrease. This is expected to continue, driven by the portfolio considerations of big funds and low interest rates.

Scholz confirmed that the bank is well placed for the anticipated privatisation, which is expected to be decided by the end of 2015.

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Piyalepasa’s historic spirit lives on in sensitive renewal project

T

HE PIYALEPASA Istanbul project, developed by Piyalepasa Gayrimenkul, is an urban transformation story taking place in one of the oldest and most grandiose districts of Istanbul.

The $400m (€278.5m) scheme, which is being built on an area of 82,000 sq m, is the biggest urban renewal project in Turkey to have been undertaken by the private sector.

The 440,000 sq m project will create a new district with 950 residential units, 50,000 sq m of office space, a 34,000 sq m hotel, parking for 3,900 cars and 31,000 sq m of retail. The project, designed by Iki design group, aims to retain the spirit of the historic Piyalepasa quarter while transforming it into a new centre of city life.

Piyalepasa Gayrimenkul’s Kaan Yucel: “a humanoriented design”

The Piyalepasa Poroject will transform an historic quarter of Istanbul

Kaan Yucel, general manager of Piyalepasa Gayrimenkul, said: “Piyalepasa Istanbul aims to stand out with a human-oriented design that respects the environment, history and the neighbourhood. Containing design

27

overtones of Seljuk and Ottoman architecture, Piyalepasa Istanbul aims to offer contemporary living areas with cascade facades, wide eaves, bays, pools and inner court designs, without distorting the silhouette of the city or the district.”

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mipim

NEWS

And the winner is...

W

AV I NG thei r g low st ick s in the air, the packed audience of the Grand Auditorium at MIPIM yesterday afternoon voted Ross Bailey, CEO of Appear Here, as the biggest digital disruptor.

The vote followed an innovative, new format session for MIPIM — Digital Economy Challenges Real Estate Sector: Disruptors At The Door — which saw eight digital innovators pitch their businesses, with four minutes each on the clock behind them, to a panel of three experts and the audience in the style of the TV format Dragon’s

Den or Shark Tank in the US. After each presentation the disruptors then faced probing questions from the experts — Chris Marlin, president of Lennar International; Juliette Morgan C&W global tech group leader and Samuli Siren, managing partner of Redstone Digital — and the audience, as they sought to assess who was likely to have the biggest impact on the industry.

Bailey’s online marketplace for renting retail space may not have won the vote of the expert panelists but it certainly won the audience vote as he told how his business was slashing the time taken to do deals. From an industry average of three to six months

needed to rent space, he said that last month half of all the company’s bookings took 48 hours.

“We make it as easy as booking a hotel room,” he said. The platform is already used by a range of businesses, both large and small, with around three quarters of users small entrepreneurs.

Bailey only just beat fellow contestant Michael Mandel, CEO of CompStak, who won all three of the expert votes in the final stage of the competition as well as the second-largest audience vote. He is creating transparency in commercial real estate by gathering information that is hard to find, difficult to compile or unavailable. The company’s first product

29

is a marketplace for the exchange of lease comps — the complete record of a lease transaction.

Other projects pitched included everything from online leasing tools to virtual reality offerings.

The complete line-up also included Jean-Marie Celerier, cofounder and managing director of Tandoori by Spicesoft; Simon Henry, co-founder and co-CEO of Juwai.com; Scott Picken, founder and senior managing partner of Wealth Migrate; Brandon Weber, founder and CEO of Hightower; and Renaud Prouveur CEO of Spallian. The session’s master of ceremonies was Peter Woodward, lead facilitator of Quest Associates.

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NEWS

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184_PREQUIN _N1&3_PIM

Secondary cities benefit from upturn in Germany real estate

Visit us at MIPIM

G

ER M A N residential and commercial real estate enjoyed its best 12 months since the record volumes of 2006 and 2007 last year, with transactions exceeding €50bn according to a new report from German property federation Xentraler Immobilien Ausschuss (ZIA).

ZIA president Dr Andreas Mattner said that after the uncertainty about residential rent caps that was hanging over Germany last year, the market was now far more stable, with little prospect of new regulation from a government more intent on economic growth.

“There was a lot of concern last year about the impact of residential rent caps but in fact we have been able to work with the government to soften these restrictions,” he said. “In particular they do not apply to new build, which would have affected investment prospects for new buildings.”

Mattner said that while at MIPIM, ZIA would be encouraging investors to look at the opportunities in some of Germany’s cities outside the “big seven”, which

Stand: Riviera 7, F.31

The MIPIM stand for Berlin, one of Germany’s “big seven”

have begun to attract interest not only from domestic investors but also overseas funds.

“We are seeing strong migration from rural areas to these secondary cities and at the same time there is not enough core real estate in the major cities for all the money that is looking to be placed in Germany,” he said. “We are also working with the government to encourage it to reconsider some of the restrictions on retail planning and opening hours, given the competition from e-commerce.”

A full analysis of the German property market is available in Spring Real Estate Industry Report 2015 by the Council of Real estate Experts.

Europe energy scheme explained

M

ULTI-disciplinary engineering consultancy, hurleypalmerflatt, is using the platform provided by MIPIM to flag up the implications of the Energy Savings Opportunity Scheme (ESOS) to its international clients.

The European Directive is a mandatory energy assessment and saving identification scheme.

It was introduced in 2014 and companies with more than 250 employees or an annual turnover of €50m are obliged to undertake an energy audit by December 5 this year.

The energy audit required considers total energy consumption, including buildings, transport and industrial process. Companies are required to undertake audits to

identify cost-effective energy saving measures, yet many remain ignorant of this legal requirement or are only just waking up to its implications Richard Whitaker heads up the company’s energy sustainability business. By targeting the real estate development market represented at Cannes, he believes property professionals can be advised on how to invest to improve energy efficiency and to adopt a sustainable design approach, which can then feed into the construction of new buildings.

COMPREHENSIVE GLOBAL REAL ESTATE DATA AT YOUR FINGERTIPS www.preqin.com/realestate

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NEWS

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UK residential market can learn lessons from Europe

T

HE UK residential sector needs to learn lessons from those European countries in which more houses are built and fairer rental markets exist, a leading British agency has said.

Speaking to MIPIM News ahead of the publication of a series of proposals to be unveiled in Cannes today, Hamptons International head of residential research Johnny Morris said that Britain needed a major increase in house building projects and a better balance between tenant rights and guarantees for investors.

He said: “We’ve spent a lot of time looking at the way it is done in Germany and France, to see best practices in those markets. The German market has much better protections for tenants while still being a strong investable asset. It shows you can have both”.

The proposal is one of a series

of recommendations for how the wider market can be improved, to be delivered by Hamptons — part of Countrywide — later today.

Among these are suggestions to create more certainty and flexibility in the planning process, reforms of the business rates system to bring in more frequent revaluations, better planning to legislate for Britain’s ageing population, and a redefinition of the green belt that protects huge portions of land from development.

Morris said that one of the chief concerns in the UK, the lack of housing supply, could only be countered with significant investment from the wider market.

He said: “The best route to increasing housing supply is to encourage more institutional investment in the private rental sector.

We think it should be easier for local authorities to sell land for the purpose of build-to-rent.”

Don’t miss our 27th February edition distributed at MIPIM and Retail Week Live Raise your profile and get the exposure you need to win new business

Hamptons International head of residential research Johnny Morris

DISCOVER MORE

Knowledge is key growth FUTURE-proof science facilities

and knowledge hubs have a vital role in the UK’s economic growth, according to Ryder Architecture.

The company said that major investment and regional collaborations between universities and businesses in the knowledge economy need to be encouraged if Britain is to reap the full benefits of future scientific progress.

The firm — which has offices in England, Scotland and Hong Kong — has been behind a number of significant science parks

and other facilities, including the Liverpool Science Park and the Scottish Crime Campus, and is currently involved in the 5,000 sq m Thames Valley Science Park in Reading.

As part of the Scottish Crime Campus project, Ryder Architecture was charged with designing a range of specialist facilities to house the £80m national crime centre. This entailed space for a range of crime detection professionals, including police officers and forensic teams.

Jenni Edwards 0203 033 2968 jenni.edwards@emap.com

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NEWS City leaders talk business at MIPIM Mayors’ Think Tank

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OWN planners and leaders need to use all the information at their disposal to maximise their ability to attract new businesses. That was the key message from the annual MIPIM Mayors’ Think Tank yesterday.

After the invitation-only event, an open session, Disruptive Strategies For Attracting Investment

In Cities, reported the mayors’ conclusions back to delegates.

Nick Fowler, managing director of the research management division of scientific and technical information provider Elsevier, said that advancements in IT have enabled the clearest possible picture of what industries and businesses they need to attract.

He pointed to developments in the way data from academic re-

On stage: Nick Fowler of Elsevier (left), Renaissance Urbaine’s Nicolas Buchoud; Fahd Al-Rasheed from King Abdullah Economic City; and Bob Van der Zande of the Development Corporation of Amsterdam 200_BITARGIL_N1_PIM

search online can be used to track which cities and towns excel in particular fields, and where they are lacking, as crucial tools in attracting new entrants. “As cities look to become smarter they need to realise that that’s about people more than buildings,” Fowler said. “New research methods and data can help cities make better decisions and lever-

age their competitive advantage.”

Fowler was taking part in the session held yesterday afternoon in the Blue Room to discuss strategies to attract investment to cities. Also speaking on the panel were: Bob Van der Zande, director of residential markets for the Development Corporation of Amsterdam, and King Abdullah Economic City group CEO and managing director Fahd Al-Rasheed. It was chaired

by Renaissance Urbaine founding principal Nicolas Buchoud.

Commenting on the wider disruptive effects on city investment, Van der Zande said that cities needed to use technology to share information when possible. “All of this new technology has changed the way we look at real estate and the way we look at attracting investment,” he said. “When we join forces with other cities we become even stronger because then we can think on a more global level.”

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mipim

NEWS New technology offers new ways to use office space

D

ISRUPTIVE technologies have created a host of new opportunities to modernise the way office space is used. After the Occupiers’ Workshop session, held yesterday to discuss the impact of these technologies on corporate real estate

strategies, Burnstorm Communications co-owner Chris Burns, chair of the event, said that there was an “art as well as a science” to the way technology can be used in the modern office space.

Speaking to MIPIM News, Burns said: “Technology has brought new types of occupancy, the result of smart buildings, cloud technology, hot-desking and remote working.”

He said while technology had had a transformative effect on office occupiers’ strategies, there were other disruptive forces linked to global issues.

He said: “Companies have been re-thinking Delegates attending the Occupiers’ Workshop yesterday their workspace and

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requirements over the last few years. It’s a plus for people to be able to work from home and work remotely and it can be a benefit for the company as well.”

One of the issues, the workshop heard, was under-used space, with one delegate quoting a survey which revealed that on average some 10% of space in offices isn’t being put to maximum use.

Burns said: “There are lots of offices that are wasting space; but there are new ways you can fill it. There are a lot of experts out there who you can tap into. And if you fill your space in new ways you can improve occupancy and make your offices a more exciting place to work.”

It was the first time a workshop session specifically aimed at corporate real estate occupiers has

Burnstorm’s Chris Burns

been held at MIPIM. The invitation-only event took place at the Majestic hotel in Cannes.

Also on the panel were Clement Alteresco, chief executive of online office leasing space Bureaux a Partager, and real estate academic Professor Norm Miller of the University of San Diego.

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mipim

NEWS

Logicor eyes northern Canary Wharf challenge European opportunities will measure happiness

A

B

LACKSTONE’S fastgrowing European logistics arm Logicor is on the lookout for more prospects in northern Europe, particularly Germany, the Netherlands and Belgium, the company’s CEO and president Mo Barzegar told MIPIM News.

The company’s top four core markets are France (current holdings 1.7 million sq m), UK (1.3 million sq m), Germany (977,000 sq m) and Poland (897,000 sq m) but over the last 12 to 18 months opportunities have arisen for expansion into the southern European markets of Spain, Italy and Portugal. Logicor currently has only 273,000 sq m in the Netherlands.

Barzegar said that Logicor needs between 400,000 sq m and 500,000 sq m in a market to achieve sufficient scale.

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Logicor’s Mo Barzegar: Keen to expand in northern Europe

“We are keen on the UK as a market but it is increasingly difficult to acquire there,” Barzegar said.

He said that the company is happy with the size of the portfolio in France but would increase the French holdings if opportunities come up as part of a pan-European portfolio acquisition.

“We are not concerned about the French economy but we are not underwriting much rental growth,” he said.

PROJ ECT to assess occupier happi ness ha s b e en launched by Cana r y W ha r f subsidia r y Level 39 under its smart cities initiative Cognicity. This has been divided into six sub-categories, each of which will work on delivering technology-led solutions by the summer, with a winner in each category then receiving a £50,000 (€71,000) reward and a pilot project.

“You could call what we are trying to measure ‘convenience’, but we prefer the idea of ‘happiness’,” said Eric Van der Kleij, head of Level 39, which helps startup businesses.

“Real estate has been a very traditional industry but it’s trying to change and we’re

looking at ways of bringing technology startups under the wings of real estate mentors,” Van der K leij said. “It’s a learning experience for both.”

Initiatives under consideration include smart lifts and localised climate control and lighting, which would provide higher levels of occupier convenience and comfort and which would also improve sustainability in those buildings.

“The occupiers wouldn’t see the technology, they would simply have more efficient and better services, which would improve their exper ience,” Van der K leij said. “W hen Canary Wharf was first built 27 years ago it was based on innovation. We want the next 25 years’ of development to be about innovation as well.”

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mipim

FEATURE FOCUS ON THE NETHERLANDS

Netherlands grows in importance as an international business hub

The Netherlands’ major cities are increasingly serving as a European base for international companies, with positive effects on their economies. Paul Strohm reports

T

HE NETHERLANDS’ ability to attract new business is moving upwards and, in

2014, 139 new international companies established offices in the Amsterdam metropolitan area alone, bringing 1,308 extra jobs to the region — a figure expected to grow to 2,359 jobs as these new businesses establish themselves in the region.

“The increase in the number of new businesses and jobs shows that Amsterdam is living up to its ranking as the fourth most competitive city in the world,” says Amsterdam alderperson for economic affairs Kajsa Ollongren.

Many of the new companies are in the information and computer technology (ICT) business — for example Netflix and Uber of the US which have located their European headquarters in Amsterdam, following Tesla, Palo Alto Networks and Expedia which set up there in 2013.

The influx of new companies has also had a beneficial effect on the Netherlands property market. According to CBRE’s Office MarketView 2014, total occupancy volume rose 5% during the year, representing 1.1 million sq m of office space while vacancy fell from nearly 7.4 million sq m to just over 7.2 million sq m.

The four biggest cities accounted for roughly 55% of total occupancy.

In the Zuidas business district between Amsterdam centre and Schipol Airport, rents have almost reached their pre-crisis level — prime rents there are €350 per sq m, following a 2.9% increase according to Colliers International’s EMEA Office Snapshot H2 2014.

The positive news has had a beneficial effect on the investment market too where investment volumes increased 90% to reach €3.75bn last year, according to the CBRE report. “Most of this increase can be attributed to foreign capital,” the report says, particularly private equity investors buying properties in Amsterdam, Utrecht, The Hague and Rotterdam. Several large national portfolios were also acquired, including US-based Lone Star’s purchase of a 302,000 sq m portfolio of 32 office buildings in 12 cities from CBRE Global Investors.

More recently Singaporean institutional investor First Sponsor Group bought Zuiderhof I from AEW Europe. The building is located in the South Axis, Amsterdam’s central business district, and is the first direct acquisition of Dutch property by an Asian investor.

Local buyers are playing a key role in the

Netherlands real estate recovery and Bouwfonds Investment Management acquired the 21,000 sq m De Admiraliteit in Rotterdam for about €52m. The asset is a vacant 1980sbuilt office scheme but will be converted to housing for young professionals and students.

Bouwfonds’ investment will no doubt be good news for Rotterdam which, with the Port of Rotterdam Authority and the Erasmus University of Rotterdam, has begun a new Make it Happen campaign to promote the city for business and as a place to live.

Rotterdam mayor Ahmed Aboutaleb says: “As a groundbreaking world city, we aim to continue to expand on Rotterdam’s appeal. At the same time, we must tackle the challenges of a rapidly changing society and competitive economy. If the university, port and city collaborate like this, we have greater leverage and we can show Rotterdam as a whole.”

Rotterdam is joining forces with cities Amsterdam, Haarlemmermeer and The Hague in the Croisette Village pavilion at MIPIM this week, exhibiting alongside private investors and developers including Bouwfonds, Bouwinvest, Syntrus Achmea, AM, Dura Vermeer, and Fakton.

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mipim

FEATURE

FOCUS ON UAE

Investors drive development as demand exceeds supply The United Arab Emirates are experiencing a hotel boom and this growth looks set to continue. Paul Strohm reports

I

NVESTMENT in hotels in the United Arab Emirates increased by 222% in 2014, a figure that belies the impression given by the region’s geopolitical tensions and the negative messages given by recent falls in the price of oil.

Joe Stather, CBRE Hotels’ intelligence manager EMEA, described the result as: “Astounding — that is a substantial increase that we have not seen anywhere else in the world.”

Stather says this level of commitment — up to €2bn from €641m in 2013 — reflects the nature of a market in which property is held long term by families and high-net-worth individuals primarily interested in wealth preservation and for new investors to acquire usually means developing it themselves.

Nick Maclean who heads CBRE’s Dubai office says that there is over $1bn of institutional investors’ money targeting Dubai alone but the volume of deals done is presently small, because of a lack of stock.

Most of the potential investment is currently from Asia; Pacific investors and Maclean says that their frustration at the lack of let buildings could evolve into development financing.

The UAE’s supply of hotel rooms has boomed in the last decade and this growth is set to

continue. Dubai’s existing stock of 90,000 rooms is set to increase by 20,000 before 2016 according to the Dubai Tourism Authority.

Emaar Hospitality Group, the hospitality and leisure subsidiary of global developer Emaar Properties, and Dubai-based developer Meraas Holding, have launched a new mid-market lifestyle hotel brand, Rove Hotels, which alone plans to roll out 10 properties across central locations in Dubai and the region by 2020.

The story is similar elsewhere. AbuDhabi has also seen an impressive increase in hotel provision with a 10% increase in 2014, an additional 13 hotels. In Saudi Arabia there are 17,000 new rooms in the pipeline, CBRE’s Stather says.

One key attribute is improving infrastructure.

While Abu Dhabi opened new airport facilities in 2014 and passenger throughput increased by 20% year-on-year in January, Dubai’s second airport, Al Maktoum International at masterplanned trade, business and aviation hub Dubai World Central (DWC), welcomed 845,046 passengers in 2014 – its first full year of passenger operations. Meanwhile Dubai International (DXB) became the world’s busiest airport for international passengers, with 70.5m in 2014.

But tourism and hotels are not the only sector attracting attention. Recently restructured

Astounding — that is a substantial increase that we have not seen anywhere else in the world Joe Stather Majid Al Futtaim, which owns and operates 17 shopping malls, 11 hotels and three mixeduse communities in the MENA region, plans to double the size of the business over the next five years with a strong focus on Egypt and Saudi Arabia and the UAE, its home market.

Substantial development is under way in Qatar in anticipation of the 2022 FIFA World Cup. And in Sharjah there is pent-up demand for both residential and office stock, “both of which remain in exceptionally short supply which has helped to push office and residential rents up by about 20-30% over the last 12-18 months”, says Faisal Durrani, Cluttons’ international research manager.

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FALL 2015

FALL 2015

MARCH 25 2015

Marstall, Ludwigsburg

Holsten-Galerie, Neum端nster

FALL 2015

FALL 2015

K in Lautern, Kaiserslautern

Aquis Plaza, Aachen

Zielone Arkady, Bydgoszcz

Always something happening ECE is celebrating five grand openings this year. K in Lautern in Kaiserslautern will be the first to open on March 25, and is followed by Marstall in Ludwigsburg, Aquis Plaza in Aachen, Holsten-Galerie in Neum端nster, and Zielone Arkady in Bydgoszcz later this year. 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.

Only a few of the attractive rental spaces are still available.

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at Visit us -1.H51 P d n a t S