Mipim 2016 news 3

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DAY

Thursday 17 March 2016

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PARIS MAYOR

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Anne Hidalgo said Paris would learn lessons from London’s successful Olympic bid

DAMAC EXPANDS

p.4 Hussain Sajwani is on the lookout for major projects in European capitals

POLISH PROMISE

p.10 Polish Deputy Prime Minister Mateusz Marawiecki called for a balanced development policy

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CONTENTS NEWS

FEATURES

4 Damac diversifies into top European cities

53 Germany Steady, stable and able

57 The Netherlands Back in the game

5 Paris learns lessons from London’s successful Olympic bid 10 Poland looking to spread investment across regions 26 Funds diversify in search of value

ANALYSIS

55 Belgium Small but attractive

50 Global logistics hubs a visual guide

IT’S HAPPENING TODAY Investment Horizons Broaden Across U.S. Markets 10:00 - 11:00

Blue room, Palais 3

Housing The World: What’s My ROI?, powered by Pechakucha 11:00 - 12:30

REED MIDEM’s Julien Sausset (left) and Talal Almaiman, chairman/CEO of Kingdom Real Estate Development Company, executive director of Kingdom Holding Company and board member of Jeddah Economic Company (JEC). Almaiman is in Cannes as work continues on the 1 km Jeddah Tower — set to be the world’s highest building on delivery in 2018. Reports released during MIPIM indicate that 37 storeys have been completed, representing 20% of the estimated total. Kingdom Holding owns one third of the tower’s developer JEC.

Grand Auditorium

Achieving <2 Degrees Celsius: How Must The Real Estate Industry Respond To Meet New Climate Change Pledges? 14:30 - 15:30

Blue room, Palais 3

Residential Investment Portfolio: The Best Is Yet To Come 16:00 - 17:00

Orange room, Palais -1

High Return On Creative Investment: Coworking 2.0 16:00 - 17:00

Blue room, Palais 3

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The official MIPIM daily newspaper Thursday 17 March 2016

Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor in Chief Graham Parker News Editor Paul Strohm Reporters Peter Clucas, Ben Cooper, Mark Faithfull, Steve McCormack, Mark Moore, Liz Morrell Sub Editors Clive Bull, Julian Newby, Joanna Stephens Proof Reader Debbie Lincoln Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designers Muriel Betrancourt, Veronique Duthille, Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographers Christian Alminana, Olivier Houeix, Patrick Frega, Phydrass Haidar, Michel Johner 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 07 77 69 34 96 laurianne.dicecca@reedmidem.com Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNEBILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2016, Reed MIDEM Market Publications. Publication registered 1st quarter 2016. Printed on PEFC Certified Paper.

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NEWS Minister opens Cities of Turkey

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URKISH environment and urbanisation minister Fatma Guldemet Sari was in Cannes yesterday to support Turkey’s large MIPIM del-

Damac in Cannes to ‘create links in the business chain’

egation. The minister cut the ribbon to officially open the Cities of Turkey sector, accompanied by the mayors of several Turkish cities and company chairmen.

Turkish environment and urbanisation minister Fatma Guldemet Sari Damac’s Hussain Sajwani

VASILY Fetisov, commercial director of developer Kortros, presented his company’s key projects in Russia at MIPIM yesterday. Kortros is delivering a major mixed-use project in Rostov-on-Don in the south-west of Russia, close to the Black Sea coast, which will consist of a total

of 4 million sq m of residential and commercial space. Fetisov said that MIPIM provided a perfect opportunity for Russian developers to showcase their projects to the world market. “This is the best place to have a dialogue with the right developers and partners,” he said.

DAMAC chairman Hussain Sajwani was welcomed to MIPIM by Reed MIDEM’s Julien Sausset yesterday. Dubai-based Damac is one of the largest residential developers in the Middle East. “To date we have delivered 16,000 units and have another 35,000 at various stages of completion,” Sajwani said. Already operating in six countries in the Middle East, Damac recently announced a joint-venture luxury residential project with Versace in London’s Nine Elms. The 50-storey Aykon London One tower will be both a new landmark on the London skyline and set new standards for luxury residential lifestyles.

HIGHLIGHTS

Day two of MIPIM 2016 saw the market get into its stride with a busy schedule in and around the Palais

VTB Arena’s Fun Run

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“We’re looking at more opportunities in London,” Sajwani said. “But it’s important to stress that projects like Nine Elms is not a one-off for us. We expect to be in places like London for the long haul. And we’re also looking elsewhere in Europe. We’re taking a close interest in Paris at the moment.” Sajwani praised MIPIM’s ability to get the right people together in one place at the same time. “In a quarter of a kilometre, you can get together with the people you need to talk to, to discuss business deals,” he said. “It’s a good place to create links in the business chain.”

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Paris learns from London’s Olympic Games experience

Italy’s defence ministry sells ‘valuable and historic’ assets THE ITALIAN defence minister Roberta Pinotti flew into MIPIM yesterday to help promote the Italian defence ministry’s property portfolio, much of which the ministry is looking to sell. “I’m here at MIPIM because the Italian Ministry of Defence is the greatest [owner] of public buildings in the Italian state [but] many of these buildings are no longer essential for the new defence functions,” she said. Pinotti said the defence ministry was looking to realise value from these obsolete assets. “Often, they are highly valuable historical buildings and very often in downtown

[areas of] cities,” she added. The defence ministry has decided to put these buildings up for sale “in order to avoid the extra costs generated by buildings that are no longer useful”. According to Pinotti, MIPIM is key in helping the ministry to realise its goal. “We would like to submit to international investors’ attention these highly valuable and historical buildings,” she said. She added that MIPIM also offered insight into global trends in real estate development. “This show is very interesting because, beside the individual projects, you [gain] an idea of how the cities of the world will develop in the future,” she said.

Italian defence minister Roberta Pinotti: investment opportunity

Building blocks for business

Paris mayor Anne Hidalgo: “no white elephants”

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N MAKING its fourth bid for the Olympic Games, Paris has learned a lot from London and the city’s transformation after the Games, said Paris mayor Anne Hidalgo. Paris is bidding for the 2024 Olympic Games. Hidalgo, speaking at a conference yesterday on the impact of hosting a major sports event, stressed that she was determined to ensure that her city would meet the mandate set out by the Olympics Committee. That would include leaving a lasting regeneration in key parts of the city, and acting as a catalyst to make the Seine clean enough for swimming. “We are nearly there now, but it is not yet possible,” she said. “Imagine such a beautiful ecological legacy.” Hidalgo outlined a series of ambitions for Paris, including the revitalisation of the Seine-SaintDenis area next to the famous

Seeking serviced offices

Palm model

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river. “We want to produce an Olympic Village for the athletes which, as in London, would be transformed into a new living neighbourhood after the event is finished,” she said. “Also, we want this not to simply be the Paris Games. So we are working with the Ile-de-France to make this [an event] for the whole region.” She added: “It is very important there are no white elephants. We want to re-use what we build and we also want to embrace innovation in all its facets.” Hidalgo said it was the legacy issues plus the fact that central and local government, sports bodies, athletes and the community had all united behind the bid that had convinced her to try again to bring the Olympics to Paris. “There is a real will and determination, but also a very humane approach,” she said.

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NEWS Deal with the fundamentals not cycles to determine strategy

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ISTED European real estate companies should focus on the fundamentals of the business and not be distracted by economic cycles or investment flows. So said three top European chief executives at yesterday’s Masterminds debate, which looked at the major challenges confronting the industry in 2016. Klepierre CEO Laurent Morel said he was neither concerned by where money was flowing into Europe, nor by yield compression. “The real issue is the scarcity of good locations in our markets,” he said. “The number of potential assets is very small and I can foresee yields compressing a little further. But the real transformation is with the customer and what they want. We see a major trend towards centralised and well-connected locations. Capital flows come and go — the important thing is dealing with the real economy.” It was a view echoed by Chris Grigg, chief executive of British Land. He pointed to a shortage of high-quality office space and rising

rents. Meanwhile, he said retail was a more “mixed story” and there was “still very little compression” in some markets in the UK. He added: “With interest rates so low, people are thinking differently about their yield expectations. Because of that, I don’t think historical comparisons are relevant.” In the German housing market, Rolf Buch, CEO of Vonovia, noted the “historical imbalance” between supply and demand in new homes. While he said there was concern in some cities that prices had reached an unsustainable high, stringent regulation continued to ensure that new housing stock at best matched annual demand. However, he said the influx of refugees would have a major impact. “From the autumn, we believe the demand from immigrant refugees will be about 150,000 homes per year,” he said. “Not only will that create more demand, but it will also be predominantly for affordable apartments and there will be a major imbalance.”

WATERFRONT IS LIVERPOOL’S USP

Mayor of Liverpool Joe Anderson

AT THE MIPIM conference Using Retail And Leisure To Unlock Waterfront Development, staged by Bilfinger GVA and Liverpool Vision, the five cities of Belfast, Hamburg, Liverpool, Oslo and Rotterdam were represented. Each city had benefited from the development of their waterfronts but the developments had taken different paths. Joe Anderson, Mayor of Liverpool was confident that without the waterfront, “Liverpool would not be the great place it is”. He added: “It is one of the vistas that is easily recognisable throughout the world.” The waterfronts of Rotterdam and Hamburg are both thriving ports and the regeneration sits alongside these activities. Whereas Liverpool’s skyline is its major attraction, in Belfast, the Titanic Visitor Centre attracts 700, 000 tourists per year and was cited by Suzanne Wylie, chief executive of Belfast City council as one of its successes. “Companies want to be on the waterfront,” she said.

British Land’s Chris Grigg (left), Vonovia’s Rolf Buch and Klepierre’s Laurent Morel

Nice draws a crowd

Meeting at the model

Destination Copenhagen

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NEWS

Integrated strategy at heart of Budapest’s renaissance

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HE JOINTLY supported Budapest stand — funded by the city, the body representing major property companies and the Hungarian Investment Promotion Agency — is a symbol of the integrated co-operation between all parties involved in promoting the Hungarian capital and the national real estate market. The city is enjoying a renaissance with increased interest in investment and development from local and international funds. “City and state view their roles as complementary,” said Balazs Szeneczey, deputy mayor of Budapest. “We are pulling together with the real estate sector. There is a lot going on.”

Wing’s Noah Steinberg (left), Hungarian Investment Promotion Agency’s Robert Esik and deputy mayor of Budapest Balazs Szeneczey

IN CANNES to jointly promote real estate opportunities in the Brazilian market, senior South American delegates relaxed with ReedMIDEM’s Julien Sausset at the COFECI-CRECI stand.

Seeking inspiration

Japan pavilion

Part of the integrated strategy to make the city even more attractive to investors is the long-term urban development plan — Budapest 2030 — which sets out the city’s future vision. It spotlights more than 200 projects across the city, highlighting opportunities such as the renewal of the Danube Banks in the downtown area and the identification of 2,800 ha of brownfield areas spread over 417 sites. The city is also one of the cities bidding for the 2024 Olympic Games alongside Los Angeles, Rome, Paris and Hamburg. According to Rober t Esik, president of the Hungarian Investment Promotion Agency, in 2015 real estate investment transactions worth €750m were posted — a figure expected to top €1bn this year. Meanwhile, office yields in the city remain strong at 6%-7%.

UK PRS follows US lead

THE US private rental sector (PRS) has undergone a transformation over the past decade akin to the shift the UK is starting out on today, a residential expert and former adviser to President Obama has said. Speaking to MIPIM News, Mark Linton, who spent three years as executive director of the White House Council on Strong Cities, Strong Communities, said that UK PRS was maturing in similar ways to the US was 10 years ago, with build-to-rent becoming an increasingly attractive proposition for investors, driven by a “combination of market forces and changing lifestyles. “From the point of view of investors buy-to-rent is a really good asset; with a high quality management strategy for your properties you’re going to have very low vacancies,” he said.

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NEWS The first Mass Crane Dance, in Bristol

DANCING CRANES PREPARE FOR A WORLD TOUR LAURA Kriefman, architectural choreographer and creative fellow for Wired, plans to bring her dancing-cranes concept to cities across the world after the pilot show in Bristol, UK last October when 10,000 people watched three cranes come to life in a night-time dance routine. Kriefman is in final talks for a London show which will include between 33 and 150 cranes in a lit, choreographed spectacular. She has also had interest from Hong Kong, Canada, Portugal and Turkey. Kriefman said as well as showing the skill of the operators the mass crane dance concept also provided a unique opportunity to spread a positive message about construction. “When cranes are on site is when the public are usually most dissatisfied with construction,” Kriefman said. “This helps to reposition this — it says that construction is beautiful and full of skill.”

Polish Deputy PM calls for balanced growth strategy

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OLAND will encourage national investment and the development of infrastructure and real estate in its smaller towns and rural areas, but not at the expense of major city projects, the Polish Deputy Prime Minister Mateusz Morawiecki said. “Since we first set out the plan for developing Poland, there has been a little shift to encourage investment in smaller cities, many of which have a very well educated and skilled population,” Morawiecki said at a panel session on investment in Poland and the CEE. “We also recognise that we need to improve infrastructure to make some locations more accessible.” He stressed that international investment remained very important to the country, adding: “This story has been very successful so far. We understand that there are some elements that

we cannot deliver ourselves in a short time and that we need this from international investors.” Morawiecki also noted that local investors were becoming more familiar with how to use advantages such as Special Economic Zones and said that all investors will be treated as “absolutely equal”. He added that in conversations with international institutional investors and hedge funds, they remained confident in the country. Katarzyna Gruszecka-Spychala, Deputy Mayor of Polish city Gdynia, also emphasised the importance of international investment and said that she believed that promotion of Poland as a business and investment destination at events such as MIPIM was crucial for the country. “The national plan is broad and I would like to see the cities and regions come together to promote Poland,” she said.

Polish Deputy Prime Minister Mateusz Morawiecki and Katarzyna Gruszecka-Spychala, Deputy Mayor of Polish city Gdynia on stage at the panel session on investment in Poland and the CEE

Bursa to get hot water and football THE MAYOR of Bursa, Recep Altepe, is leading a delegation to Cannes this year, exhibiting in MIPIM’s new Cities of Turkey area. The mayor has a message about his city for MIPIM delegates: “Hot water and a football stadium.” Bursa is a thermal spa, one of the oldest con-

Recep Altepe, Mayor of the Bursa Metropolitan Municipality

tinuous spas in the world and is considered the prime thermal spa in Turkey. Altepe said: “There are 50 hot-spring facilities in Bursa. The thermal water is at 40-90°C, and we will serve four million tourists thanks to our hotel facilities with a total capacity of 20-25 thousand beds.” The goal of Bursa is to create new facilities for the springs, mayor Altepe said. “We’re taking into consideration modern centres in the world, facilities that have varied pools, which have systems that can meet the needs of people with various treatment requirements, and that can serve as a health centre in general.” The other major attraction on display on the Bursa stand is the new 43,500-seater Bursa Metropolitan Municipality Stadium.

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Bursa Metropolitan Municipality Stadium

The stadium has 2,530 visitor seats, 6,128 VIP seats, 256 protocol seats, 161 press seats and 1,650 boxes. Also, 207 handicapped positions have been designed to provide an uninterrupted view in accordance with the UEFA standards. There are a total of 72 boxes for rent ranging from 28.5 sq m to 188 sq m. The stadium has the first example in Turkey of an opening and closing roof with new-generation cables and a membrane system.

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NEWS

Mayors challenge industry to harness talent and innovate

A Olha Syvak, chief investment officer of Lviv City Council

UKRAINE CITY LVIV IS BACK IN CANNES THE UKRAINIAN city of Lviv, which has a population in excess of 750,000, returned to exhibit at MIPIM for the first time in eight years this week as it sought to calm investors, concerns about the region. Olha Syvak, chief investment officer for Lviv City Council, admitted that investors were often initially hesitant of the Ukraine as an investment opportunity. “People are suspicious but when they talk to us and we show them our projects they change their mind,” she said. Syvak said Lviv offered the best location in Ukraine, 60km from the EU border and more than 1,000 km from the conflict zone. Lviv chose to be proactive rather than reactive as a region, she said. “We are not waiting for the economic and political situation.” Syvak added that the city was focussing on conference tourism as well as the industrial sector. One current project under way in the city is CTPark, a e50 million 100,000 sq m GLA manufacturing park development, which will house around 20 manufacturing companies. The region is also a strong IT hub with 15,000 software engineers and 180 IT firms. “We are not only hands but brains too,” Syvak said.

ROUND a hundred participants gathered for the regular Mayors’ Think Tank and this year’s theme for the closed-door summit for political leaders was Housing The World. The session was moderated by Peter Woodward. “There was an extraordinary energy from mayors across the world to collaborate with the real estate sector. You could feel it in the room,” he said. The mayors expressed their desire for the real estate industry to share their own vision for cities that create liveable spaces for all. There was a strong emphasis on collaboration to find housing solutions for those on little or no income. Through dialogue and partnership, the mayors are keen to present challenges for real estate professionals, encouraging them to harness creative talent and innovate. They would prefer not to dictate what the outcome might be, simply to specify the need. A key theme was the desire to find ways of solving the problem of popular tourist cities becoming overcrowded. Their success can lead to less attraction and a poor quality of life for residents.

MAYORS’ THINK TANK — THE FACTS IN BRIEF The Mayors’ Think Tank is a closed-door summit for political leaders where topics are discussed around the table Countries represented: 30 Participants: around 100 Peter Woodward, facilitator for the Mayors’ Think Tank

Overall there was a sense that people want to see masterplans, yes, but more than that, they want to get things done. Andriy Sadovyi, mayor of Ukrainian city, Lviv was one of those taking part. He first attended MIPIM in 2008 and has seen major benefits to his city and the region. “Lviv has many real estate projects under way, with projects ranging from industrial, technological and creative,” he said. His team is always looking for new trends in development and design — taking the best practice thinking from Europe and

Topics discussed: Passive housing Student housing Private rented housing Refugee housing crisis Large scale public housing Affordable housing models Housing partnerships Designs for compact living Sponsors: Arcadis United Technologies the US. Lviv is keen to find investors and developers, together with modern design and architecture that may not be available in Eastern Europe.

Paris project extends to the west SEINE Aval is an ambitious development plan that stretches west from La Defense, following the path of the Seine and the A13 Autoroute de Normandie. The project includes an extension of the regional railway, RER, along with other transport infrastructure enhancements. “Seine Aval includes four commercial ports,” said Denis Courtot, director of planning and development at EPAMSA, which is co-ordinating the development. “The region is already home to 400,000 residents and major companies including Renault.

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EPAMSA’s Denis Courtot

But this is an area of 400 sq km, so there are many development opportunities. They range from industrial to education.” The project’s transport infrastructure will take 15 years to complete, with the accent on rail and water, in line with its sustainable credentials. Now the site of an ‘operation of national interest’, Seine Aval receives funding not only from the local authorities within its boundaries, but from Central Government for the benefit of inhabitants, enterprises and the environment.

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Why Nevada: Innovative, Investment Rich, International

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The San Diego Real Estate Market

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NEWS

Lyon Mayor pledges to revive

the city’s Part-Dieu district

Hermes Real Estate’s Ben Sanderson

SPEAKERS CALL FOR INVESTMENT IN BUILD-TO-RENT THE UK private rental sector (PRS) offers as attractive returns for investors as any real estate asset for a generation, a leading fund manager has said. Speaking at a special event to discuss opportunities in the UK investment market, Hermes Real Estate fund director Philip Nell said: “I don’t think I’ve seen as compelling a return in 20 years as I’ve seen in the private rental market. There’s been a housing crisis building over the last 50 years with the lack of development; the build-torent market is part of the solution. “Now it needs big institutional investment and a huge build programme.” Nell was speaking along with Hermes Real Estate director of fund management Ben Sanderson and head of real estate debt Vincent Nobel about the opportunities offered by the UK property market in 2016. The breakfast, which took place yesterday was organised jointly by Hermes, the British Property Federation (BPF) and Reed MIDEM. Pointing to the dramatic changes that have taken place in and around King’s Cross St Pancras railway station in London, Sanderson said that major projects had “transformed” parts of the UK and lifted public realm space.

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YON aims to develop its role as a major transport hub both domestically and internationally, while regenerating the area around the train station with new residential, retail and office projects, Lyon Mayor Gerard Collomb said at a packed presentation on the Lyon stand yesterday. Collomb outlined plans for new residential towers, more office space, additional hotels and major improvements to the public realm and the greening of the Part-Dieu area as he joked: “I think a square

metre of grass must be very expensive in Part-Dieu because there is none anywhere.” He said: “We have a very ambitious strategy for our city and we are developing our brand worldwide. We are working on our connections to Dubai to link with Asia and we have an air link to Montreal, for North America. We also aim to capitalise on being the biggest hub for high-speed trains outside Paris.” Aside from four development areas in the city, a new football stadium has been built for Lyon

as part of the preparations for France hosting the Euros 2016 this year and Collomb said this would be a catalyst for new facilities to open around the ground. Lyon will also be welcoming back its historic Grand HotelDieu, which will offer retail, office, residential and hotel space after a major renovation project, which began in 2015. The hotel is a landmark in the city and the shops, restaurants and offices will open in December 2017, followed by an InterContinental Hotel in September 2018.

Urbismart startup is people’s choice

Judges and startups get together for the final of the MIPIM Startup Competition

YOU WILL have to wait until the MIPIM Awards tonight to find out who the jury voted best startup. But for the audience yesterday afternoon, it was a new logistics disruptor that caught their imagination. The MIPIM Startup Competition saw five finalists brought together to pitch their ideas to the audience to see who they felt was the most disruptive to their industry and who was of the most interest

to them. These included Parralax, Source Central, Standard Access, Simplylure, and Urbismart. In his pitch Urbismart CEO JeanPaul Rival promised big change for the logistics market that could offer a complete revolution to the supply chain by better organising both home and business deliveries. “By changing the way we enter the city we can change the shape of the city for tomorrow,” he said. He also pitched for funding for

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his “one truck in one street” business. “We have the software and we have the team, we just need the gas to run the engine,” Rival said. Urbismart received the vote for the most disruptive innovation for the real estate industry while a third of the audience said it was an interesting innovation for their business. Some 71% of the audience voted it as their favourite startup crowning Urbismart a winner in the eyes of the audience at least.

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NEWS

Mayor of Balikesir highlights latest Turkish city projects

T THE INTERACTIVE session Poland Movers & Shakers Lunch: Taking The Lead – Investing In Polish Cities, brought together city leaders, developers and investors to discuss the key challenges, trends and strategies for developing and investing in CEE cities. Issues discussed included how investors see the leading cities in Poland and how this reflects the reality on the ground; the best route for developers and investors to work together with the leading cities; and how city hubs push Polish cities onto the global stage.

LOCAL COUNCILS CRUCIAL TO UK RETAIL SCHEMES LOCAL authorities that are prepared to not only support but help finance retail-led mixed-use schemes are vital to the prospect of more schemes being developed in the UK, according to developer Queensberry’s chief executive Paul Sargent. Queensberry worked with the local council in Newport to open Friar’s Walk last year and it recently won the mandate for Barnsley Markets, another scheme which has suffered a succession of delays. “There is no doubt that it is absolutely essential to work with local authorities as partners, which is why we’re here at MIPIM,” he said. “I think the key is for a scheme developed with financial input from a local authority not only to be delivered but upon sale to create a return on investment. That would really open the door to more schemes.”

HE CITY of Balikesir is represented in a new grouping in Cannes this year: the Cities of Turkey zone, which is on Level 0 of the Palais. Ahmet Edip Ugur, mayor of Balikesir said: “MIPIM is a good platform for us, where we can bring together our projects with investors, operators and funds. Our goal is to create benefits for our cities as well as our country through our value-added projects.” He said the aim should be for “more liveable cities, economically sustainable projects and improvements that reflect on regional development and individuals.” Mayor Ugur told MIPIM News: “Our projects range from logistics to tourism, from the service sector to many more areas. They’re all high quality — in essence we’re presenting a fillet steak to investors with the projects we design and develop on our properties, and are paving the way for investments to develop in our region.” Some of Balikesir’s projects on show include the €72m 240,000 sq m Cay Stream recreational area, and the Camlik recreational area

which includes a science centre, a library, an adventure park, an entertainment park, a cultural centre and picnic areas. Integration between the two big recreational projects Camlik Hill and Cay Stream will be strengthened by a cable-car connection. The planned €100m Ayvalik Cruise Ship Harbour project, will add value to the city through its commercial units, recreational areas, convention spaces and accommodation units.

Ahmet Edip Ugur, mayor of Balikesir

Sweeping changes as major hotel companies rise to new challenges “THERE’S a whole lot of consolidation going on in the hotel industry,” according to Arthur de Haast, chairman of consultant JLL’s Hotels & Hospitality Group. These are interesting times for the industry, he said. De Haast was moderator at yesterday’s conference How Can Major Hotel Companies Maintain Their Fast Pace Of Growth In An Increasingly Competitive Market With New Offensive Players?” The recent trend to consolidation is a response to this question and the new players, de Haast said. “The industry was far too fragmented. We’re seeing big companies buy up the middle-sized. They’re trying to achieve sufficient scale to meet the new challenges,” he added. “The disruptors to the traditional hotel chain are currently in two shapes,” he said. “First there’s the online travel agencies like Expedia which have disrupted the traditional booking methodologies. And secondly there’s the newer disruptors like Airbnb, which cut out the agent altogether. The booker deals directly with the supplier.” There are risks associated with such direct

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dealers as Airbnb, de Haast said: “There’s no service back-up, no safeguards, no insurance and not much in the way of redress.” But, he added, that may well settle down as the new ways of doing holidays and time away from home mature. “There is unprecedented interest in the hotel and hospitality industry. 2015 was a record year. €77bn was invested in the industry. We expect 2016 to be down on that, but not by much,” de Haast said.

JLL’s Arthur de Haast

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UK better off within Europe says City of London expert

B Menderes Turel, mayor of the city of Antalya

ANTALYA BRINGS BILLION-DOLLAR PLANS TO MIPIM THE SUCCESS the Metropolitan Municipality of Antalya achieved at last year’s market has led to an even greater presence at MIPIM 2016. The mayor of the city of Antalya, Menderes Turel, told MIPIM News about the reasons for joining the Cannes experience: “We decided to participate to increase the brand value of Antalya. We’re particularly targeting the countries and investors from Western Europe and North America. We put effort into attracting the attention of potential investors of the world towards Antalya through these projects.” Mayor Menderes Turel emphasised that at MIPIM 2016 they are highlighting schemes in Antalya that are some of Turkey’s most prestigious projects. Turel pointed out that each one of those schemes were major developments. “Antalya has massive projects such as the Bogacayi Marina project, Cruise Harbour project and urban transformation project. All of these are billion-dollar projects and will be completed between 2016 and 2019.”

RITAIN’s financial services industry will be severely hit if voters choose to pull out of the European Union, a prominent figure from the City of London has said. Speaking at a breakfast event on Wednesday morning, Mark Boleat, chairman of the City of London Policy and Resources Committee, said that Britain is “better off in Europe” and dependent on membership of the EU for the future of its finance and banking industry. Boleat’s comments came during a busy breakfast event hosted by engineering services consultancy Crofton and the London Chamber of Commerce and Industry (LCCI).

“There are very sensible reasons for staying in the EU,” Boleat said. “We have a huge amount of international business and a lot of that business operates throughout the EU. 80%-90% of all investment banking professionals in the EU are in Britain; they don’t want to leave London but if the UK wasn’t in the EU they might move.” Addressing the British real estate industry, Boleat said that many of the issues that most concern professionals about remaining in Europe were based on misinformation about the EU, including the perception that red tape in the property-planning process was handed down from Brussels. The British public will vote on remaining in the EU on June 23.

GILES Scott, director of Aecom, the global company that designs, finances and builds projects, is at MIPIM to launch Vasa, a golf resort-led residential development in Cyprus. The project was masterplanned by Aecom and now it is in the next phase of development, where international funding is being sought. This is the first time it has been seen. Located mid-way between Limassol and Larnaca on the southern coast, the resort “features upwards of 500 homes and is shovel-ready” Scott said. Vasa Golf Resort, Cyprus

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In the case of a ‘Brexit’ vote, the UK would stay within the union for a minimum of two years to renegotiate its treaties and establish new legislative agreements with the remaining EU member states. Boleat said that while London has been “by far the most successful global city in the past 20 to 30 years” there are a number of key challenges to be addressed in the short and medium term. Of these, he said, airport capacity was a pressing concern for businesses, and the shortage of housing was making it difficult for companies in the City of London to attract staff. “There’s no reason why we can’t build the houses we need to address the situation,” he added.

When asked by MIPIM News whether he was looking for a single investor, or whether there would be a phased approach, he said: “There are no bad ideas at this stage. This will be one of the biggest developments on the island.” It is anticipated that the development will appeal to a wide range of nationalities including Britons and Russians. “Cyprus has become a safe haven in the region. A friendly place to live or holiday,” he said.

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NEWS CREATIVES FEEL THE POWER OF BATTERSEA THE MEDIA and creative industries have been prominent among those looking at taking office space at the huge, mixed-use Battersea Power Station site in south-west London, said Rob Tincknell, CEO of Battersea Power Station Development Company Once complete in 2020, the 1.25 million sq ft of office space on the 42-acre site will sit adjacent to apartments, shops, retail and leisure. Tincknell said that the lifestyle nature of the scheme and its situation by the Thames was proving particularly appealing to “companies whose brand is very important to them, because the Battersea brand will be very strong too”. Tincknell added: “For media businesses, quality of life for their staff is very important because staff turnover can be a real problem. Battersea will combine a great location, open spaces, hand-picked retail, lots of leisure and great transportation links.”

Battersea Power Station’s Rob Tincknell

OSAKA ON TRACK HANSHIN Electric Railway is in Cannes to showcase its role in a long-term project to revitalise the Japanese city of Osaka. The company is involved in a number of projects in the north of Osaka, as part of a wide-ranging masterplan project to spark economic growth and investment into the city. Hanshin president Takaoki Fujiwara said: “When investors come to Osaka they see how many possibilities there are for their future. It is a great opportunity for foreign investors.”

‘Smart development’ key driver of Rhein-Neckar’s future growth

Team Rhein-Neckar: Petra Kollner-Kleinmeier (left) Christine Ram and Sabine Kapp

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OCAL residents have played a key part in defining a new business district in the Rhein-Neckar region of Germany, which is looking to attract more precision engineering, IT, creative and startup businesses to the city of Mannheim. A series of office complexes and technology hubs are being developed around the old train station site in Mannheim and city residents have chosen a local poet’s description of the city — Gluckstein, which translates as “Stones of Happiness” — as the name for the new business quarter. Mannheim and the Rhein-Neckar district, which encompasses 54 cities, towns and municipalities, have co-located at MIPIM to showcase the attractiveness of both the Gluckstein scheme and the wider area for international end users. Among the region’s ad-

vantages is its proximity to major cities such as Paris and Frankfurt. “We are at MIPIM to promote the region’s merits to an international audience,” said Rhein-Neckar district head of division, Petra Kollner-Kleinmeier. “We have an excellent manufacturing and IT heritage, but what it’s really all about now is smart development, because this represents the future. Digitisation is the key to many industries, whether that be manufacturing, IT, healthcare or culture.” Christiane Ram, director at the Stadt Mannheim City Office of Economic Development, added: “The new office district will provide a total of 120,000 sq m of office space for national and international businesses. We are also keen to bring in young startups from Europe and the US. We want to make this an environment of creativity.”

Schindler’s myPORT app adds value

WHEN it comes to lift innovation, even specialist Schindler admits there is only so much you can do to improve the up/down process. This means that related innovation is key and that is why Schindler’s myPORT is proving its potential with developers. What the company dubs a transit management system is a mobile app-controlled system that will recognise a user when they enter a building, call a lift on their behalf, tell them which lift to take and transport them to the floor they require. Once at their apartment or office, the system then lets them in. “It allows seamless movement in a building without having different badges and keys. Everything is on one device,” said Michael Dobler, senior vice-president of Schindler. The system, which was originally launched last year, is already in use at Park Tower, a residen-

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Schindler’s Michael Dobler: “seamless movement”

tial building in Zug, Switzerland. Dobler said myPORT offered huge opportunities for real estate developers. “It can help developers to enhance their buildings and differentiate through comfort,” he said. “It’s about helping them to make the building better.”

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L&G to stimulate investment in private rental in the UK L&G Capital’s James Lidgate and UK Trade & Investment’s Paul Marsh

FTQ’s Louis Lemay (left) and Claude Meunier

THE FONDS immobilier de solidarite (FTQ) promotes economic growth and employment in Quebec by strategically investing in profitable and socially responsible real estate projects in partnership with developers and builders. Claude Meunier, vice-president, development, said: “The Fonds immobilier is an important economic catalyst that backs beneficial projects of all sizes in the residential, office, commercial, industrial and institutional sectors.” He added: “We have 50 projects ongoing now at various stages in Quebec with a total worth of about €1.75bn. ” Fonds Immobilier has been attending MIPIM for 10 years. “It gives us a chance to see how things are done in other parts of the world, particularly in Europe,” Meunier said. “In north America clearly we have a lot of space to build on and it’s pretty instructive to see European compact solutions to space problems.”

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HE SIGNIFICANT opportunities that exist for international institutional investors in the UK’s underdeveloped private rented sector are being highlighted at this year’s market. Only 3% of such development is currently funded by institutions as opposed to more established markets like the US where the multifamily sector is 20 years ahead of the UK at 24%. UK insurance company Legal & General (L&G) is keen to look at international examples to discover how alternative approaches can be adopted for the UK market to create an institutional asset class. It started acquiring properties built for rent eight months ago and now has 800 in the pipeline. “We are on the acquisition trail and our ambition is to grow

to 3-4,000 properties over the coming three years,” said James Lidgate, director of housing, L&G Capital. Earlier this year Legal & General Capital entered a joint venture with Dutch pension fund PGGM to invest £600m (€790m) in the construction of 3,000 homes in the UK. Its new fund takes the total amount of institutional cash committed to the private rented sector since the start of 2016 to more than £1bn (€1.4bn). “We are looking to encourage a step change in this sector, drawing UK and overseas investors into the market,” said Paul Marsh, head of projects and finance at the UK’s Regeneration Investment Organisation. “L&G is an established UK institution and we believe its commitment will lead others into the market.”

Four reasons to invest in Norway

AT A PACKED session on investment in Norway, Peter Jacobsen from Castelar Investment Management said that knowledge of the Norwegian property market had increased in recent years. In the past people would ask how near Norway was to Stockholm. Not any more.

The BarCode project nearing completion in Oslo

He cited four reasons for this change in fortunes. First he pointed to the collective efforts of all parties involved, particularly at MIPIM. This collaborative approach had led to fast results. Secondly Norway’s strong economic growth had made Oslo a more attractive investment proposition. The country had largely been sheltered from the economic storms of the last few years. Jacobsen then pointed to the rise in fashion for Scandinavian architecture, a genre that is popular and understood throughout the world. All this had led to his fourth point, that Sovereign Wealth Funds have invested heavily in Norway, especially in prime properties in Oslo. Evidence of this growth can be seen in the successful realisation of Oslo’s BarCode project, which will be completed in 2016. The once controversial project has become

Castelar’s Peter Jacobsen

accepted as a sustainable addition to the city’s skyline. “In 10 years we have created a completely new district in the most heavily trafficked part of the city. BarCode has become the new face of Oslo,” said CEO Rolf Thorsen of OSU, owner of the BarCode project.

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NEWS Real estate can be cautiously optimistic, Summit hears Delegates at the MIPIM REInvest summit on Tuesday heard that the global real estate sector is continuing to benefit from economic headwinds but with a good measure of caution. Liam Kennedy, editor-in-chief of IPE, reports

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OBERT White, president, Real Capital Analytics, said that the top 25 global cities account for two-thirds of all property investment in 2015, pointing to a focus on liquidity, a “growing array” of property sub-sectors and an exploration of peripheral areas of core cities. White also warned of a slowdown in investment in recent months as investors pull back due to a range of uncertainties including commodities prices, fears of a US recession and political uncertainties such as the UK’s referendum on EU membership and Donald Trump’s presidential campaign. Summing up a series of investor roundtable discussions, Jason Oran, partner and head of southern Europe at Europa Capital, said: “Those pricing [real estate] from within the industry are

struggling to reconcile appropriate returns, even over the long term, but on a relative basis to other asset classes there is still a strong case for real estate.” Anne Kavanagh, global head of asset management and transactions at AXA Investment Managers – Real Assets, said: “The consensus was that pricing is seen as very hot in core investments.” Summing up the roundtables on sectors, Isabelle Scemama, head of the funds group at AXA Investment Managers – Real Assets, noted an air of caution among investors. “Don’t do what you don’t know,” she said. Nevertheless, some investors were considering new sectors, including student housing, senior housing and healthcare. Erwan Quintin, associate professor at Wisconsin School of Business, said liquidity was a

concern, as was a shortage of opportunities. Deitrich Heidtmann, managing director, head of international capital markets at GTIS Partners, said there had been a lack of focus on emerging markets despite there being significant opportunities to take advantage of positive demographics. Simon Mallinson, executive managing director, EMEA and APAC at Real Capital Analytics, said there seemed little point in making investment decisions before the UK EU membership referendum is held on June 23. “There are advantages and disadvantages but no benefit until a decision has been made,” he said. “There was a clear feeling that from a business and commercial view that [for the UK to leave the EU] is a bad idea.” In a keynote speech, Peter Beckett of KPMG pointed to the

Global investors gathered at the REInvest summit

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THE FIFTH edition of REInvest, the MIPIM Institutional Investors’ Summit, brought together 53 institutional investors from 21 countries, who between them have $500bn allocated to real estate. Newcomers at the summit included German pension fund BVK, Chinese fund Gingko Tree, the Hong Kong Monetary Authority and Canada’s BCIMC. RE-Invest is sponsored by AXA Investment Managers - Real Assets, Aberdeen Asset Management, KPMG, Real Capital Analytics and Europa Capital.

OECD’s base erosion and profit shifting project, where real estate investors could be affected in three areas. One is hybrid structures where receiver and issuer are treated differently for tax purposes across jurisdictions; a second is in tax deductibility of interest expenses. A third area is the general requirement to prove substantial operations in the particular jurisdiction, domiciled for tax purposes, which can be difficult for real estate entities. The OECD is understood to be looking into ways to accommodate this requirement for long-term investors such as pension funds.

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YARDI TALKS

TECHNOLOGY with Caisson Investment Management.

Technology Investments pay Dividends for Real Estate Investors

An integrated property management platform equips Caisson Investment Management to provide excellent client service, outperform the market, and unlock new opportunities. London-based independent investment management group Caisson Investment Management, which has invested over £400 million in the multi-let industrial sector, operates its complex business according to a fairly straightforward principle: “It is imperative that we provide first-class service to our clients, from research, analysis, transactional ability, and asset management services through to timely reporting,” said Michael Newman, a founding partner of Caisson and the company’s finance director.

in fund management, investment banking, surveying and technology, so we understood the importance of implementing technology to manage real estate even before we had our first assets under management,” Newman said. “We wanted a system that would both reduce duplication of effort - for example, streamlining reporting to clients by eliminating rekeying of data from third parties and removing the potential for errors. We had seen some companies run their asset management on a series of uncoordinated spread sheets, so we needed to run our operation with integrated technology to ensure accurate real-time property reporting and detailed client reporting.”

Our business growth is directly linked to the scalability of the Voyager platform.

“I believe the capabilities Voyager provides are a big plus to our investors as it enables us to be ready and functional to service our clients fully from Day One. Voyager also provides a corporate accounting system that helps us compile and deliver reports required by the statutory bodies to whom we need to report including the FCA.” The Voyager platform has anchored Caisson’s significant expansion over the last few years. “Our business growth is directly linked to the scalability of the Voyager platform. Voyager also accommodates different reporting requirements in the various jurisdictions,” Newman said.

MICHAEL NEWMAN Founding Partner & Finance Director, Caisson Investment Management.

Elaborating, he said, “We aim to give our clients returns that outperform the market with our specialist asset management approach. One of the key ways to maintain this track record is to be at our tenants’ disposal at all times of their business cycle. This translates to improved investor returns through tenant retention, cost management, and improvement of the underlying cash flow.”

These considerations prompted Caisson to adopt Yardi Voyager® as its property management and accounting platform within a year of its founding in 2009. “With Yardi Voyager we can meet the needs of core report generation head-on, enabling Caisson to offer clients greater value and develop wider services,” Philip Stott, a Caisson founding partner, said in 2010.

SEEKING AN INTEGRATED APPROACH

A PLATFORM FOR CLIENT SERVICE AND GROWTH

Caisson recognised that the right technology would be the catalyst for fulfilling these priorities. “Caisson’s founding partners have backgrounds

entire asset management, client reporting and corporate accounting are performed on Voyager,” Newman said. “All of our outsourced property managers can use the Voyager database. This alone removes a whole tier of data duplication. Having all property data, lease data and financial data in one place and fully integrated ensures that our reporting is accurate and timely. Our asset managers can log in remotely, inspiring team unity in discussions and decision-making.

Looking to the future, Newman said, “Caisson keeps up to date on the constantly evolving capabilities within the Voyager platform. We’re consistently evaluating opportunities to streamline additional operations, such as investment accounting, by adding new modules to Voyager. “Yardi has supported our business from the outset and helped us grow. We have received excellent support from the Yardi team on initial implementation, on-going advice and planning, and their fast response times have been invaluable in resolving queries.”

Since then, Caisson has made Yardi Voyager one of the cornerstones of its business. “Our

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Grand Paris partners find strength in collaboration

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HE FAR-reaching masterplan for the Grand Paris area has taken a “major step” forward thanks to a huge collaborative effort between government and stakeholders, the director general of the Plaine De France region has said. Speaking at MIPIM on Tuesday, Damien Robert said a concerted plan to integrate the huge number of projects currently under way in and around the French capital was paying dividends to the wider Grand Paris scheme, as well as opening up new possibilities for international investors. He said: “The key objective at MIPIM is to promote the projects, not the institutions. We have been working together in an integrated way and we are

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moving ahead as greater Paris.” Plaine de France is responsible for a swathe of developments to the north of Paris, including in the areas containing Charles de Gaulle Airport and the Stade de France. Robert said that strong demand for space, particularly around the airport, was helping to drive investment and new construction projects as part of the overall Grand Paris project. He added: “What you can see is that, since the Nineties, that area has attracted a lot of economic activity. This is a whole new business district. It is becoming more business-orientated than airport-orientated. We have seen the potential of that and we have designed a wide range of projects to take full advantage.”

M7 reports ‘milestone’ 2015 PAN-EUROPEAN real estate investor and asset manager M7 Real Estate raised a total of €290m of new equity commitments from institutional, family office and high-networth investors in 2015. M7 also grew assets under management by a net €600m to a total of €1.7bn. The company now manages 455 properties across its European platform, with total transactions comprising €850m of acquisitions and €250m of disposals. Richard Croft, chief executive, said: “2015 was a real milestone in the development of M7. We increased our investment portfolio significantly and continued to broaden our portfolio across asset classes and activities. In addition, we entered new European markets in the form of Portugal and the Czech Republic. The growth we’ve been able to achieve is an endorsement from our

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partners of our strategic focus and key strengths, and we will continue to build upon this throughout 2016.” Building on its foundations as an investor and asset manager of regional, multi-let, light industrial property, M7 undertook a number of senior recruitment hires last year to drive its expansion into the retail- and office-property asset classes that now represent 20% of the portfolio. The company also moved into new activities such as planning and development. During 2015, M7’s fund business grew with the launch of one new UK fund and three continental European funds. The European funds include a German retail fund, which raised €40m; a Dutch multisector commercial fund, which raised €42m; and a Dutch and German multi-sector fund, which raised €80m.

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Asia-Pacific investment to remain strong, says CBRE

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BR E fore casts investment activity in Asia Pacific will continue to be solid, although it will be limited by asset pricing and availability. According to the consultant’s 2016 APAC Real Estate Market Outlook report, this is due to the region’s steady economic growth, which will continue to outpace the rest of the world in 2016. The macro trends of urbanisation and the rise of the middle class will continue to drive growth across Asia Pacific in the medium to long-term. “The region’s investment market will continue to see strong demand from real estate funds and institutional investors, who will continue to invest in Asia Pacific to increase their exposure to real estate for strategic diversification,” said Dr Henry Chin, head of research at CBRE Asia Pacific.

But he cautioned: “Asia Pacific will enter a period of slower growth in the commercial real estate market, with activity likely to moderate over the year as it becomes more challenging to source investable stock able to meet investors’ target returns. Interest rates will remain low in 2016, so yields are largely to remain stable across Asia Pacific. However, we are expecting to see a mild yield expansion in 2017, together with the rise in interest rates.” Chin said there were “structural investment-themed oppor tunities” for investors to focus on in 2016, such as the growth of e-commerce, regional tourism and demographic changes. “Demographic changes will create opportunities in niche sectors, such as self-storage facilities, senior and student housing, and data centres,” he added.

It’s all about flexible space and location for millennial workers TOMORROW’s workforce will demand offices in vibrant, 24/7 urban locations, with flexible working spaces, Allianz Real Estate CEO Francois Trausch told delegates at the Digital Innovation In Real Estate session on Tuesday. Pointing out that, by 2020, around 75% of the workforce will consist of millennials, Trausch introduced the panel session by setting out what he believes will be the two main drivers of the future office. “They will want f lexible space,” he said. “They will want to be able to work and shop and interact within the physical space. We face a period of more disruption and a

faster speed of innovation. We need to be able to cater for the needs of the future generation.” In the panel session that followed, the focus was on offices and retail. Martin Plocica, director of UK and Ireland shopping centres at developer Hammerson, said that digital innovation would allow mall operators to optimise what they did with with consumers “right through the customer journey”. ECE’s chief investment officer and managing director of development, Henrie Kotter, added that the challenge was to determine how best to interact with consumers.

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Record-breaking year for office market in Warsaw

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#TEAMLEICESTERSHIRE

ARSAW saw a record year for offices in 2015, according to the latest report by real estate adviser Cushman & Wakefield (C&W). The year was record-breaking for both transaction volume and net absorption, reaching 836,500 sq m and 283,000 sq m respectively. Despite high levels of supply, vacancy rates fell by 1% to 12.3%. C&W expects the office market to continue its growth in 2016. However, high levels of supply may cause the vacancy rates to rise over 15%. The C&W Warsaw office report, entitled Property Times: 2015 – A Record Year For The Office Market, said the Polish capital’s most popular zones were “upper south” (28% of the total volume) and “fringe” (27%), which increased its market share by 10% compared with 2014. Last year was also record-breaking in terms of net absorption, which amounted to nearly 283,000 sq m, 56% more than 2014. The largest lease agreements in 2015 were the pre-let of space in Warsaw Spire Tower by Sam-

sung (21,100 sq m); the leasing of 17,500 sq m by PZU in Konstruktorska Business Centre; and the renegotiation of mBank’s agreement in Palac Jablonowskich (17,500 sq m). The total office stock in Warsaw reached 4.66 million sq m at the end of 2015. Major buildings completed in 2015 include Postepu 14 (developed by HB Reavis; 34,300 sq m) and Royal Wilanow (Capital Park; 29,800 sq m). Other significant projects were the modernisation of Spektrum Tower (Europa Capital; 27,300 sq m) and Domaniewska Office Hub, located next to Galeria Mokotow (PHN; 27,000 sq m). According to the report, the current market situation favours the tenant, which is reflected in rental rates. Prime rents for office space in central Warsaw fell in 2015 to €24 per sq m per month (down by €1 per sq m compared to December 2014). In non-central locations, average rent levels were around €13-€16.5 per sq m per month. Due to the high supply of space, developers continue with aggressive pricing strategies.

Pramerica signs up Sephora PRAMERICA Real Estate Investors has agreed with cosmetics retailer Sephora to take a 10-and-a-half-year lease at 41 Rue Ybry in Neuilly-sur-Seine, on the northwest side of the Paris conurbation. The office was acquired vacant by Pramerica in July 2015. The 15,000 sq m Grade A office building will become the new global headquarters of Sephora, the LVMH-owned cosmetics distribution company. Pramerica Real Estate Investors is undertaking a refurbishment to adapt the building to Sephora’s needs and achieve both HQE Renovation Tres Bon and BREAAM Good green certifications. The refurbishment

PLEASE VISIT US AT STAND NUMBER R7.C13 FOR MORE INFORMATION CONTACT ianguyler@pedigreefilbert.co.uk

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is expected to be completed in spring 2017. Jocelyn de Verdelon, head of France, Spain and Portugal for Pramerica Real Estate Investors, said: “This transaction reflects Pramerica’s ability to source and execute real estate operations in prime locations with a strong value-creation potential, and to realise qualitative refurbishment projects to satisfy Grade A users’ bespoke requirements.” Pramerica Real Estate Investors is the real estate business of PGIM, the investment management businesses of Prudential Financial; and operates as Prudential Real Estate Investors in the Americas, Korea and Japan.

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PROGRAMME OF CONFERENCES & EVENTS FRIDAY 18 MARCH

THURSDAY 17 MARCH BLUE ROOM PALAIS 3

RUBY ROOM PALAIS 5

ORANGE ROOM PALAIS -1

GREEN ROOM INNOVATION FORUM, HALL 1

INVESTMENT HORIZONS BROADEN ACROSS U.S. MARKETS 10:00 - 11:00

MANAGING VOLATILITY, LIQUIDITY AND REGULATION IN TODAY’S GLOBAL CRE FINANCE MARKETS 10:00 - 11:00

RISE OF LIFESTYLE HOTELS & RETAILTAINMENT IN THE HOSPITALITY INDUSTRY. WHAT’S IN HOTELS FOR THE CLIENT EXPERIENCE? 10:00 - 11:30

PROFITABLE ENERGY RECOVERY WITH DISTRICT HEATING RECOVER, REDISTRIBUTE, REUSE 10:00 - 11:30

Sponsor: HAP Co-organiser: New York University

Sponsor: The Baupost

Sponsor: UTC

Sponsor: JLL

IS SPANISH REAL ESTATE MARKET STILL ON A POSITIVE SLOPE? 11:30 - 12:30 Sponsors: Gesvalt, Roca Junyent Followed by a cocktail

TRANSFORMING AFRICA'S SKYLINE, BUILDING THE FUTURE 11:30 - 12:30

URBAN PLANNING IN THE PERSPECTIVE OF ELECTRICITY 11:30 - 13:00

EFFICIENT LOGISTICS FOR A COMPETITIVE EUROPE 12:00 - 13:00

Co-organiser: API Summit

Sponsor: Business Region Göteborg

Sponsor: Barcelona Catalonia

CREATING THE CITY OF THE FUTURE 14:00 - 14:30

OTHER LOCATIONS

LEADERS’ BREAKFAST

PRIVATE TALKS WITH*: Gerard Lyons, Leading Global Economist, Chief Economic Adviser to Mayor of London and former Chief Economist Standard Chartered Bank 8:00 - 9:30 Sponsor: Lennar International [Majestic Hotel]

ACHIEVING <2 DEGREES CELSIUS: HOW MUST THE REAL ESTATE INDUSTRY RESPOND TO MEET NEW CLIMATE CHANGE PLEDGES? 14:30 - 15:30 Sponsor: Baker & McKenzie

UNDERSTANDING PROPTECH LATEST TRENDS: THE BRAZILIAN MARKET – THE INVESTORS’ VIEW TOURISM FOCUS 14:30 - 15:30 Keynote address by Co-organiser: RICS Henrique Eduardo Alves, Followed by cocktail, Minister of Tourism, Brazil courtesy of RICS 14:30 - 15:30

Sponsor: Barcelona Catalonia

[Networking zone, Hotel & Tourism pavilion, Palais -1]

HOUSING THE WORLD: A PLACE FOR EVERYONE, POWERED BY PECHAKUCHA 11:00 - 12:30

H&T LUNCH* 13:00 - 14:30 Sponsor: Ministry of Tourism Republic of Indonesia [Networking zone, Palais -1]

HIGH RETURN ON CREATIVE INVESTMENT: COWORKING 2.0 Crowdsourced session winner 16:00 - 17:00

RESIDENTIAL INVESTMENT PORTFOLIO: THE BEST IS YET TO COME 16:00 - 17:00 Sponsor: Kinsey Capital LLC Followed by a cocktail, courtesy of Residential Land

10:00 - 11:00 In association with Wisconsin School of Business

JOIN THE CONVERSATION! ENGAGE WITH MIPIM 2016, ONLINE AND ONSITE

[Grand Auditorium]

LED TECHNOLOGIES: HOW TO IMPROVE REAL ESTATE AND MAKE AN INVESTMENT WITH A FAST PAYBACK 15:00 - 15:30 Sponsor: ilQI

URBAN POLICY & HOUSING: COLLABORATING FOR LIVEABLE CITIES 16:00 - 17:00

MIPIM WRAP-UP A condensed sum-up of 3 intense days of feeling the industry's pulse. Lessons learned and way forward!

HOUSING 10:00 - 11:00

Sponsor: Grenoble Alpes Metropole

CAMPUS DIAGONALBESÒS – BARCELONA KEY: CREATING OPPORTUNITIES THROUGH TERRITORIAL DEVELOPMENT 14:30 - 15:00

GREEN ROOM INNOVATION FORUM, HALL 1

USING PARROT BEBOP DRONE AS A REAL ESTATE 3D MAPPING SOLUTION 16:00 - 16:30 Sponsor: Parrot

EXPO MILANO 2015, SECURITY SOLUTIONS FOR OVER 21MLN PEOPLE 16:30 - 17:00 Sponsor: CAME Followed by a cocktail

OPPORTUNITY & DEAL SOURCING THROUGH DATA 17:00 - 17:45 Sponsor: Deal X

HASHTAG: #MIPIM CONFERENCE LIVETWEETS AND KEY SHOW TWEETS: @MIPIMWorld LIVE REPORTS & MORE ON MIPIM’S OFFICIAL BLOG: http://www.GlobalRealEstateExperts.com DAILY REPORTS & CONFERENCE VIDEOS: http://www.youtube.com/mipimworld OFFICIAL MIPIM PHOTOS, DAY-BY-DAY: http://www.flickr.com/mipimworld & please feel free to share your MIPIM experience on Instagram, Vine and Periscope: we’ll be keeping an eye out!

MIPIM AWARDS PRIZE-GIVING CEREMONY FOLLOWED BY AWARDS COCKTAIL 18:30 Official sponsor: Turkishceramics Official press partner: Immobilien Zeitung [Grand Auditorium]

*By invitation only events

thursday_friday_news.indd 1

HOUSING THE WORLD SESSIONS

Interactive session: Download the mobile app to interact during the session

Programme as of 03/03/2016. Information contained in this programme may be subject to change.

10/03/2016 16:59

mipim

NEWS LONDON MARKET STILL OFFERS RESI OPPORTUNITIES THE LONDON residential market holds potential for a whole range of developments from affordable housing to infrastructure projects, the founder of a major firm of architects has said. Speaking to MIPIM News, PLP Architecture founding partner Ron Bakker said that there is still “a lot of appetite” for more housing in and around the capital, and plenty of opportunities for developers and investors from a range of specialties. “There is still lots of space to build in and I hope there will be a whole range of residential developments coming through,” he said. “Every large project should bring benefits to the city; sometimes that’s to do with affordable housing, sometimes that’s in infrastructure. London needs that balance.” PLP is currently working on a range of projects in the city, including a 35-storey residential tower for Imperial College London, and the 11,700 sq m residential-led Whitechapel Estate building, part of the Whitechapel Vision regeneration plan. It has also received planning permission for the designs for a major office building at 22 Bishopsgate in the City of London, which will be the tallest office building in the capital’s financial district. Bakker will be speaking today at a MIPIM Innovation Forum event discussing smart buildings and smart technology.

Turkey’s mega-projects are getting bigger and bolder

A

GROUP of Turkish architects took a design look at Turkey’s famous mega-projects in a conference session on Tuesday afternoon. Architectural Views On Turkey’s Mega-Projects was moderated by Cuneyt Ozdemir, journalist and producer from Dipnot TV, and sponsored by Kalebodur. All the speakers agreed that the notion of what is considered to be a mega-project has changed over the decades, getting bigger and more grandiose all the time. Professor Dr Celal Abdi Guzer from METU said: “Mega-projects seem to create a value of

their own, independent of their architectural value. They are often the result of cultural values and the pressures of urbanisation.” Professor Guzer said architects had spent much of the last 100 years trying to reinvent the city. “The megapolis gets bigger and bigger, and the mega-project is a response to that.” But he warned that as the city and its associated mega-projects grow in size, “the individual unit always seems to shrink”. Whether the mega-projects are successful in the long run remains to be seen, he said, and reminded the audience that “all buildings, all projects no matter what size should be judged by

their context”. Architect Enis Oncuoglu of Oncuoglu + ACP said one of the remarkable aspects of megaprojects was the cost. “Unlike standard construction projects, mega-projects seem to be immune to cost overruns. No one really knows how much they cost until after they are completed. The normal rules don’t apply: that’s the key difference between normal projects and mega-projects.” Summing up, moderator Ozdemir said whatever their slant on the big projects, architects were going to have to live with them. And there are likely to be more in the future.

Conference moderator Cuneyt Ozdemir

Oncuoglu + ACP’s Enis Oncuoglu

METU’s Professor Dr Celal Abdi Guzer

Parrot presents drone technology DRONE specialist Parrot is demonstrating its latest technology to visitors at MIPIM for the first time this week, offering entrylevel systems that start at €450. The company is showcasing two drones from its range: the 500g Bebop and the higher specification eXom. The benefits of the Bebop for real estate and creating 3D models of potential projects was presented in a conference session within the Innovation Forum. The drone is controlled and piloted by Pix4D software which within 10 minutes takes the images required to create a 3D map. Once the drone has

Parrot’s Pascal Prost with the Bebop drone

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completed its mission, set by the user within the Pix4D software, the drone then uploads the images to the user’s smartphone which can then be shared and uploaded to create the 3D map/model. Pascal Prost, of Parrot, said the Bebop drone could have a number of uses in the real estate industry — from creating 3D explorations of tourist locations to mapping out land for building a house, for example. “Drones are quicker, taking much less time to do the same job someone can do on foot, as well as giving you a point of view you cannot have from the land,” Prost said.

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Source: 2014 Global Business Elite, Ipsos MediaCT ©2016 Dow Jones & Co., Inc. All rights reserved.

mipim

NEWS

UK Northern Powerhouse will Rockspring buys Madrid site rebalance national economy for logistics development

T

HE INITIATIVE by the UK Government to form an economic counterweight to London among the cities of the north of

England was discussed at Tuesday’s event: MIPIM City Investment Forum Northern Powerhouses. The forum featured a keynote speech by Sir Howard Bernstein, chief executive, Manchester City Council plus contributions from representatives from Leeds, Liverpool, Newcastle and Sheffield. “We have to create national engines of growth to complement the effect of London,” said Sir Howard, adding that the Powerhouse’s philosophy needs to be firmly embedded in national policy as national delivery models do not work. Speakers highlighted the need for continued investment to rebalance the national economy. Key areas include improved transport and logistics, broadband and digital infrastructure, productivity Sir Howard Bernstein, chief executive, Manchester City Council and skills development. 219_CONSTRUCTA_N1a3_PIM

PROPERTY investment manager Rockspring has acquired a speculative development site on the Los Gavilanes estate in Getafe, Madrid on behalf of a separate account client, to be developed as part of a logistics warehousing project. The 88,000 sq m site will be developed to provide 60,000 sq m of Grade A logistics stock, with the capacity to be subdivided into 8,000 sq m units, providing flexibility for occupiers. Completion is scheduled for early 2017 and the development will target a LEED certification. Los Gavilanes provides direct access to Madrid’s motorway network and is located 17 km south of Madrid city centre at the junction of the A4 Andalusia highway and the M50 orbital motorway. It is 27 km from Madrid Barajas international airport. On completion of the project

Rockspring’s Madrid warehouse project

Rockspring’s Spanish logistics portfolio will comprise 110,000 sq m of Grade A space across two prime locations. Jo De Clercq partner at Rockspring Property Investment Managers said: “In line with the acquisition of Torrejon last year this logistics asset enhances our growing portfolio of European logistics facilities and we are sourcing similar investment opportunities in cities that have a central part to play in Europe’s growing logistics infrastructure.”

To every MIPIM visitor The vote has been launched

Crédit photo :François Moura

Nominated as finalist for the

Hostesses will register your vote in the Awards Gallery

make les docks village the best shopping center 201 6 www.lesdocks-marseille.com

37 N3P37+D.indd 1

16/03/16 15:29

TODAY’S MIPIM INNOVATION PROGRAMME OF CONFERENCES (Thursday 17 March) Innovation Forum, Hall 2 10.00–10.20 Ron Bakker on The Edge: smart technologies and radical new working environments 10.30-10.50 Integrated housing solutions - From Japan to the world 11.30-11.50 Improving real estate sales process, with an objective: To boost your performance! 12.00-12.45 Accelerating the dissemination of innovation through social media 14.30-14.50 Smart cities need smart buildings, smart buildings need facility management 15.00-15.20 Hybrid community building: real examples from the Nordic metropolitan areas where mixed shareholder interests shape a new type of city developments 15.30-15.50 Museum buildings in open-air museum, Anatolia 16.30 Press and Speakers’ Meetup 17.00-18.00

Cocktail by CAME

Green room, Innovation Forum, Hall 1 10.00–11.30

Profitable energy recovery with district heating: Recover, Redistribute, Reuse Sponsor: UTC

11.30-13.00

BE AHEAD

OF YOUR

TIME

14.00-14.30 14.30-15.00

Urban planning in the perspective of electricity

Sponsor: Business Region Göteborg

Creating the city of the future

Sponsor: Grenoble Alpes Metropole

Campus Diagonal-Besòs – Barcelona KEY: Creating opportunities through territorial development

Sponsor: Barcelona Catalonia

15.00-15.30

Led Technologies: how to improve real estate and make an investment with a fast payback

Sponsor: ilQI

16.00-16.30

Using Parrot Bebop drone as a real estate 3D mapping solution

Sponsor: Parrot

16.30-17.00

Expo Milano 2015, security solutions for over 21MLN people

Sponsor: CAME

17.00-17.45

Followed by a cocktail Opportunity & deal sourcing through data Sponsor: DealX

EXHIBITORS AND CONFERENCES SPONSORS -GROUP ENVIRONMENT

mipim

NEWS SURGE IN FRENCH WAREHOUSE AND OFFICE MARKETS A RISE in investment in Ile-de-France in the second half of 2015 saw €26.2bn invested over the year, up 2.5% on the previous year, according to research by adviser Catella. This is the highest level of investment other than in the peak years of 2006 and 2007. Similarly, after a poor first half performance, commercial real estate demand surged in the second half of the year and ended up 1.2% ahead of 2014 levels at 2.21 million sq m. Small and medium-sized commercial space led the market, up 12% on 2014. Catella said that for investment it has been larger transactions that have driven the market, in the range of €100m to €300m, with offices the most sought after category, while warehouses were the strongest growth category.

Dalian Wanda’s Cannes debut highlights international focus

T

HE LARGEST commercial developer in China, Dalian Wanda Commercial Properties, is at MIPIM this week to present its global projects to the market. “We are here for the first time to showcase to everyone the quality and breadth of our projects. For the last two years we have been expanding overseas and the focus has been on international projects in Europe [in London and Madrid], the US and Australia,” said Michael Purefoy, global head of marketing, international property for Dalian Wanda. The company also wants to discover more about the opportunities of the international market at the show. “We are keen to understand what investors’ demands are and tap into sales channels we wouldn’t normally 233_RM MULTI SALON_N1&3_PIM

Dalian Wanda’s Michael Purefoy

have contact with,” he said. Purefoy said the show was a good opportunity to educate people about Dalian Wanda too. “What I’ve found interesting is that a lot more people knew about us than I thought but though they knew the name they didn’t necessarily

know the scale of the business,” he said. The company has three key international projects under way currently. These include One Nine Elms in London, Vista Residences in Chicago and Jewel Gold Coast in Australia.

DISCOVER THE WORLD OF REAL ESTATE TRADE SHOWS

MEET US ON OUR STAND - MIPIM AND MAPIC WORLDWIDE C16 39

176_BUSINESS IMMO_N1à3_PIM

made in real estate

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07/03/2016 17:10

mipim

NEWS

Women in real estate call for equal pay

Turkish and German firms team to widen global reach

W

OMEN in property must reach equal pay with their male counterparts, according to Paola Lunghini, of AREL, the Association of Real Estate Ladies. “The battle is, same skills same salary,” said Lunghini, speaking at the inaugural MIPIM networking cocktail event celebrating women in property yesterday. Lunghini, who has attended MIPIM since its launch 27 years ago, said that women are now better represented in the real estate industry at around 10%, but that there is still more to be done. “The presence of women has grown and now there are a lot of very influential women in the real estate industry,” she said. Events like the networking cocktail event, which encourages in-

LAL Appraisal’s Ebru Oz

TURKISH real estate consultancy “We’re one of the first appraisal LAL Appraisal is joining forces companies in Turkey,” the comwith German certification com- pany’s chairperson Ebru Oz said. pany Tuv Sud. The two companies “We came to MIPIM to lay solid will co-operate in Turkish and grounds for good networks. We’re German real estate valuations. particularly interested in making LAL Appraisal provides “inde- contact with companies and propendent and objective appraisal fessionals in other countries. MIservices” in all areas of real estate PIM provides an excellent forum to domestic and foreign organisa- for that.” She added: “The cotions, banks and companies. With operation with Tuv Sud will ala head office in Ankara, the com- low us to offer reliable real estate pany has 300 staff across eight services to our customers outside branches in Turkey. Turkey – especially in Germany.” 195_LUXEMBOURG CAPITAL_N1et3_PIM

Leandra Choay (left) of Parisearch and Paulo Lunghini of AREL

fluential women to network with their peers at MIPIM as well as bringing together a number of regional female networking groups helped, she said. “The road is long but an idea like this definitely helps to speed change,” she said. The invitation-only event brought together 100 influential women in real estate. ADVERTORIAL

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09/03/2016 11:33

244_RM UK_N3_PIM

Overseas investors from North America, China, Hong Kong, Japan, Malaysia and Singapore will be at MIPIM UK. Will you?

19-21 October 2016 Olympia, London mipimuk.co.uk The UKâ&#x20AC;&#x2122;s largest property event.

mipim

NEWS

New Carter Jonas alliance Tyrens plans to develop HIS week in Cannes, UK Swedish style in the UK property consultancy,

T

Carter Jonas, and Van Gool Elburg an independent Dutch commercial property agency, announced a partnership to expand their cross-border capabilities. With over four decades of experience in the commercial property market, Van Gool Elburg advises public and private sector clients including Credit Suisse Asset Management, Immobilien, Gazprom and KPMG. Carter Jonas has a long-standing expertise in commercial property with 35 offices across the UK. It works with institutional, national and international clients including, U and I Group (formerly Development Securities), ARM Holdings and Goodman. Carter Jonas chief executive, Mark Granger said: “This new alliance is consistent with our strategy to enhance our network

Carter Jonas chief executive, Mark Granger (left) and Iain Mulvey, business development director

of expertise in core locations in the UK and continental Europe. Segro’s recent portfolio acquisition of three logistics buildings in the Netherlands is demonstrative of the continued interest from UK investors in the commercial property market of mainland Europe. Together with Van Gool Elburg, we ensure that we are strategically positioned to benefit from such opportunities flowing between the two markets.”

INFRASTRUCTURE planners, Tyrens, sees the UK as a growth area for its business. In its native Sweden the company has taken large projects from concept to completion in times that would be considered exceptionally short in the UK. For example, the West Link rail tunnel in Gothenburg was initiated in 2011 and construction will start next year. David Hampton is technical director of Tyrens UK. He said that in Sweden, far more emphasis is put on the benefits an infrastructure will bring, particularly in terms of sustainability, which is high on the agenda in Scandinavia. “In the UK we talk about projects too long,” he said. “Our cities are getting larger. In 1990, only 270 cities accommodated a population greater than one million people, by 2030 it is predicted this will have risen

43

to 662 cities. The challenge for those with responsibility for designing our growing cities is to create places that allow sustainable communities to flourish without damaging our health or restricting mobility. Most of our cities are already tightly developed so we need to look at how to open up space whilst also solving the transport and resulting pollution problems.”

Tyrens UK’s David Hampton

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mipim

NEWS CBRE offers virtual tours for prospective tenants

I

NTERNATIONAL prop- in Cannes to showcase the sererty consultancy CBRE has vice with CBRE. unveiled a new interactive Virtual Walkthrough launched service that allows prospec- the service at MIPIM 2014, betive tenants to tour, virtually, fore entering talks with CBRE, properties online. signing a partnership towards the The service provides users with end of last year. a series of layered HD images of They are working jointly to add the interiors of buildings and units more listings to the service, with listed on the agent’s site. CBRE plans eventually to showcase all senior director for Central Lon- properties in this way. don and City office leasing Richard Smart said the service was like “Google Street View for the interior of a building”. He added: “It’s a much more engaging experience for people. This is a powerful tool which captures people’s imaginations.” The agency is showcasing the service to the international market for the first time since partnering with technology provider Richard Smart of CBRE (left) with Virtual Walkthrough, whose co- Virtual Walkthrough’s James founder James Morris-Manuel is Morris-Manuel and David Rabee 225_RM AWARDS_N2&3_PIM

Marsh invites the world to invest in Leeds REPRESENTING the largest economy outside of London and the southeast, the Leeds City Region Enterprise Partnership offers huge potential for investors, according to Roger Marsh, chair of the organisation. He said the Partnership was at MIPIM to showcase the economy and the development opportunities available in the region, with around £10bn (€12.5bn) of real estate investment either happening or planned. This includes Hammerson’s Victoria Gate, a £1.6m development which, on opening in the fourth quarter of this year, will include the largest John Lewis department store outside of London. “The Leeds region is the fifth of the northern powerhouse economies and its size, reach and diversity should be attractive to the world,” Marsh says. He said the region was ripe for

Leeds City Region Enterprise Partnership’s Roger Marsh

development. “Where we are positioning ourselves is not just to have the ideas but we have the sites ready too,” he said. “In 2008 after the crash there would be one or two tower cranes. Today there are 18. It’s an exciting time,” he said.

VOTE

DISCOVER

CELEBRATE

for your favourite project in each category

the winners at the MIPIM Awards Ceremony

the winners at the MIPIM Awards Cocktail

until Thursday 17 March noon

Thursday 17 March 18.30 > 19.30

Thursday 17 March 19.30

Awards Gallery, Palais - 1

Grand Auditorium, Palais 1

Grand Auditorium Foyer, Palais 1

Official Sponsor:

Official Press Partner:

45

FOCUS ON

HOTEL & TOURISM

Sponsored by JLL

(Orange room, Palais -1) The Plus Experience

11.45-12.00

Architect or Interior designer: why dissociate?

12.00-12.30

JW Marriott Venice Resort & Spa project

Fast Track @ prizeotel - Mobile Media Centre Check-In

15.30-15.45

Highspeed installation in -1.N18 N 6P M1 bathroom setup: The value M1of M 5 TECEsystem for new built P-1.M and P-1.L 15 P-1 L 18 .M9 renovation P-

P-1

N11

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Brussels Airport Nato Hotel

B26 B24 C27 C25

EXHIBITING COMPANIES & PARTNERS

C46 C44 C42 C40 C38 C36 D37 C34 D35 C32 D33 C30 D31 D29

H1

11.30–11.45

15.15-15.30

P-1

10.00–10.30 Conference “Rise of Lifestyle hotels & retailtainment in the Hospitality industry. What’s in hotels for the client experience?”

Smart hotel: Smart for the Access to Riviera 7 & 8 guest, smart for the operator

3

TODAY’S PROGRAMME (Thursday 17 March)

15.00–15.15

H3

Dedicated bar & lounge and daily cocktails

H31 H29 H30 H27

sessions sponsored by

G35 G33

Conferences: keynote and expert-led

F29

sponsored by

13.00–14.30 H&T Lunch sponsored by Ministry of Tourism Republic of Indonesia (Networking zone, Hotel & Tourism pavilion, Palais -1)

F37

Showcase of hospitality solutions

P-1

.A1

A OFFICIAL SUPPLIERS

mipim

NEWS

Gothenburg’s investment plans powered by Swedish economy

A

N INVESTMENT of €100bn is heading for Volvo’s home town, Gothenburg, over the next 20 years, according to a study that Business Region Goteborg is presenting during MIPIM. The Swedish city’s expansion is being driven by one of the highest economic growth rates in Europe. There are plans to spend €100bn on building new housing, offices, retail space, infrastructure and logistics facilities by 2035. “These are large volumes, so it is important to ensure that international players are involved in competing for the projects,” said Henrik Einarsson, Business Region Goteborg’s head of establishment and investment services. He added: “The market is reassured by the strong long-term trend and

Gothenburg is planning new cable-car routes as part of the city’s development

sees good investment opportunities in a stable and growing Scandinavian metropolitan region.” The plans, which include the city traffic office’s scheme for three cable-car routes, have been spurred by a nearly six-year period of unbroken economic growth and a long-term positive trend since the early Nineties. Not only have companies such as Volvo Cars, Volvo Group, AstraZeneca and Ericsson invested

significant resources in R&D, but the knowledge-intensive services sector is also attracting talented individuals. Meanwhile, exports and domestic consumption are pushing Swedish growth rates to the top of the European table. In 2015, Swedish GDP grew by 4.1%. Goods exports from the Gothenburg region were up by 15% on the previous year. For Sweden as a whole, the increase was 5%.

‘BALANCED AND DIVERSIFIED’ YEAR FOR ROMANIA ROMANIA’s investment market registered transactions of up to €800m in 2015, similar to 2014, according to Colliers International Romania. “Compared with 2014, when the local market saw some atypical transactions, such as the takeover of Real network by Auchan, in 2015 the investment market was rather balanced and diversified, with strongly engaged international investors,” said Laurentiu Lazar, Colliers International Romania’s director of investment and valuation services. He added that, while the office sector drove almost half of the investment in 2015, the industrial segment reported the biggest increase and retail projects remained constant.

FREE HOTEL SHUTTLE SERVICE

MIPIM is delighted to offer to its participants free shuttle from hotels located outside Cannes to the Palais des Festivals Mandelieu - La Napoule Cannes la Bocca Le Cannet Juan-les-Pins Sophia Antipolis Mougins Saint Laurent du Var/Nice Cannes

Pick-up point

Esplanade Pantiero

Ask for the schedule at any information points inside the Palais For all information +33 (0)6 20 93 00 62 • mipim.com

47

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F端r alle, die mehr wissen wollen! DIE INFORMATIONS-WELTEN DER IMMOBILIEN ZEITUNG.

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Visit us! At the Stand of Immobilien Zeitung in the Riviera Hall.

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NEWS

AEW Europe shopping APFC and Immochan in central Copenhagen partner in Portugal

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HIGH-END re- which will provide the fund tail asset in a des- with a total investment capactination shopping ity of up to €800m. The fund’s street in central strategy is to build a portfolio Copenhagen has of high-quality income probeen bought by AEW Europe ducing retail assets that are on behalf of its City Retail well located within the prime Fund. This is the first Danish European city centres. acquisition by the fund which Alexander Strassburger exlaunched with a €125m first ecutive director in investment close in November 2015. at AEW Europe said “CopenAcquired from a group of pri- hagen is a well-established vate local investors, the 450 retail destination that benefits sq m retail unit is let to Finn- from an increasing presence of ish fashion and lifestyle brand high-profile tenants and newly Marimekko on Kobmager- refurbished shops and departgade, one of the busiest shop- ment stores. ping streets in Copenhagen. “Investments like this demonAEW Europe’s City Retail strate AEW Europe’s ability to Fund has a target fund raise of source attractive opportunities up to €400m in equity com- across different geographies, mitments with a maximum and we intend to invest in the loan-to-value ratio of MONITEUR_N3_PIM 50% region further,” he added. 013_GROUPE

IMMOCHAN and Alaska Permanent Fund Corporation (APFC), represented by CBRE Global Investors, have expanded their strategic joint venture partnership through the acquisition of Alegro Setubal shopping centre in Portugal. The transaction sees APFC acquire a 50% stake in the centre from Immochan which will continue as property manager. Asset management will be shared between Immochan and CBRE Global Investors which represents APFC. Alegro Setubal comprises 44,450 sq m over three floors. The centre maintains an occupancy rate of 100% including shops from brands such as Mango, H&M, Zara, Bershka, Stradivarius and Pull & Bear. The centre also has a leisure and entertainment com-

ponent, food court and electronics offer from brands including Fnac, Sport Zone, Cinema City, Fitness Hut, and Medical Clinic. Alegro Setubal is located 40 km south of Lisbon on the main entrance to Setubal, a city located in a strategic commercial corridor between the country’s three major highways. The centre was recognised as the best redevelopment project by MAPIC 2015 and is a candidate for a best redevelopment award from ICSC.

Alegro Setubal shopping centre in Portugal

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Global logistics hotspots

Source: CBRE 2015

Research from CBRE highlights the impact global trade flows have on demand for logistics real estate. New hotspots are emerging in Europe, the Americas and China as the balance of trade ebbs and flows

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SINGAPORE 32.60

SHENZHEN 23.28

HONG KONG 22.35

BUSAN 17.69

NINGBO 17.30

QINGDAO 15.52

GUANGZHOU 15.31

DUBAI 13.64

TIANJIN 13.01

ROTTERDAM 11.62

DALIAN 10.86

PORT KLANG 10.35

KAOHSIUNG 9.94

HAMBURG 9.30

Source: World Shipping Council 2015, CBRE 2015 / Design concept: ©

SHANGHAI 33.62

– Graphic S tudio

15 LARGEST GLOBAL SEAPORTS BY CONTAINER VOLUME (million TEU)

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FEATURE GERMANY

Steady, stable and able Major projects in Germany’s “big five” cities — Cologne, Frankfurt, Hamburg, Munich and Berlin — are a sign of the country’s buoyant property market, writes Peter Clucas

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ITH the German property investment market almost back to 2007 levels,

according to CBRE research, it is no surprise that prospects for 2016 are looking very positive. The office and retail investment markets remain buoyant, while the low home-ownership level in Germany means that the residential letting market should also continue to flourish. There is strong mixed-use activity throughout the country, especially in its “big five” cities. In Cologne, the MesseCity Koln project goes to site this year. Michael Josipovic, head of economic development at the City of Cologne, says: “Six office buildings are planned with seven to 16 floors and 140,000 sq m of floor space. The insurer Zurich group will realise its new German headquarters in a new building in this area. Around 2,700 employees will be located there.” With its own rail station and proximity to the Messe buildings, the location appears ideal, with views across the River Rhine to the historic city and its cathedral. Another project in a prime position is Frankfurt’s Gateway Gardens, an ambitious scheme located next to the airport. Described as a “global business village”, it has a projected gross floor area of 700,000 sq m on an estate of 35 ha. The developers claim it is one of the largest developments of any airport city in Europe. On the site of former US Air Force family residences, Gateway Gardens became the first commercial quarter to be certified with the DGNB gold certificate for sustainability. Thirty per cent of the project has already been sold. The combined workforce of the companies now on the site is 4,500 people. On completion, that number will have grown to 18,000. Hamburg’s HafenCity, meanwhile, grows apace. One of its iconic developments is now nearing completion: the Elbphilharmonie, a spectacular concert hall designed by Herzog & de Meuron. Located at the western tip of the waterfront development, the scheme is over 3 km away from the new Elbe bridges at the eastern end of HafenCity — an indicator of the massive scale of the project, which is now in its 16th year. More than 2,000 people live in HafenCity as a whole, with more than 5,000 students at the various academic institutions and

10,000-plus employees working there. Ambitions for growth in Munich are evidenced by the mixed-use redevelopment of its central railway station and the adjacent Starnberger Flugelbahnof, which is a regional transport hub. “Exactly when construction can begin depends on the [construction of a] second main line through Munich,” says a spokesperson for the project. “The aim is for the second main line and the station building to be realised in parallel, in order to shorten the building phase and minimise the burden on local residents.”

ON THE HOMES FRONT ONE OF Berlin’s largest property companies, degewo, has recently formed its own planning office — bauWerk. Architects and civil engineers have taken over the planning and project management of its buildings. “We augment our own expertise and work closely with planners and construction companies. This makes us more efficient, saves time and money, and leaves us scope for more new buildings and affordable rents,” says degewo executive board member Kristina Jahn. The company is responding to ever-increasing demand for housing in the German capital city.

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FEATURE BELGIUM

Small but attractive Last year was the Belgian property investment market’s second best year — ever. Paul Strohm looks at the country’s growing appeal to international investors

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ARLY in February, Taiwanese inves-

tor Fubon Life Insurance bought the fully let 50,000 sq m Ellipse Building in the north district of Brussels from AG Real Estate. The sale was one of the latest examples of the growing interest in the Belgian market, particularly from overseas investors. Fubon’s purchase further highlights the current popularity of investment property in Belgium. In a record 2015, the €4.4bn volume traded was up 30% year on year and has only been exceeded by the €4.6bn traded in 2007. The 2015 total is also €1bn more than in 2014 and double the average of the preceding five years, according to JLL figures. Serge Fautre, chief executive officer of AG Real Estate, says of Fubon Life Insurance’s acquisition of the Ellipse Building: “The sale to a Taiwanese investor is both a sign of the market’s internationalisation and of the appeal of Belgium — and particularly of Brussels — as an office market.” Around the same time as the Ellipse sale, Patrizia France bought Belgium’s 36,000 sq m Astro Tower, close to the European quarter, on behalf of a Korean consortium. “The office property market in Brussels, thanks to its outstanding stability over the years, is extremely attractive to institutional capital,” says Patrizia France managing director Bruno Cohen. Among recent deals was AXA Investment Managers - Real Assets’ acquisition of the 8,919 sq m Woluwe Gate office building in south-east Brussels from AG Real Estate just before the turn of the year. In addition, BNP Paribas Real Estate Advisory Belgium advised on the sale to Construction & Developpement of recently renovated Brussels building Louise 240, which consists of some 5,500 sq m of offices and retail space.

JLL’s head of capital markets, Belux. Although a mega-year such as 2015 is unlikely to be repeated in 2016, at year-end there was €1bn-worth of deals in the pipeline, JLL notes. However, there is a restricted development pipeline in Brussels and, of the 427,000 sq m under development, only 22% is speculative. Just 57,000 sq m will be completed speculatively in 2016, including the 10,000 sq m Alhambra and 6,400 sq m Brederode IA in the Pentagon, and Belliard 65 in the European district. A further 37,000 sq m of space will be completed speculatively in 2017, the largest project being Cofinimmo’s 18,804 sq m Belliard 40 and the nine-storey, 5,877 sq m ASSAR Architects-designed Square de Meeus 5/6. The latter is being developed by Leasinvest Real Estate in the heart of the Brussels CBD. Flemish developer Ghelamco will meanwhile deliver its first Brussels office project, the Spectrum in the Pentagon, in 2018. JLL is expecting more office occupier decentralisation to regional cities. Ghent and Aalst to the west of Brussels have already benefited from this trend, and schemes are under way in Antwerp and Namur. Meanwhile, at Liege, near the border with Germany, Fedimmo has

completed the 136-metre tall, 28,700 sq m, Jaspers-Eyers Architects-designed Tour Paradis for SPF Finances (the finance ministry). Blue Gate in Antwerp is billed as an “ecoeffective business park for innovative companies”. Plans for the 64 ha gross (36 ha net) water-bound, brown-field site to the south of Antwerp include a logistics area, which will be developed beside the River Scheldt.

The office property market in Brussels, thanks to its outstanding stability over the years, is extremely attractive to institutional capital Bruno Cohen

The strength of investment demand has had an effect on yields, which dropped from 5.75% in 2014 to 5.35% in 2015. “Prime yields are strongly compressing in all asset classes,” says Jean-Philip Vroninks,

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FEATURE THE NETHERLANDS

Back in the game The Netherlands is definitely back on foreign investors’ radar. Significant sales have already bolstered this year’s property investment figures, continuing the tone set by a buoyant 2015. Paul Strohm reports

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CCORDING to BNP Paribas Real Estate, total investment volume in Amster-

dam “continued to outperform” in 2015 at €1.86bn, helped by several large singleoffice properties, which remain by far the most sought-after assets (67%). The 2015 total was boosted by portfolio deals — a trend that is set to continue this year. Goldman Sachs and Valad Europe jointly bought the Zenith Portfolio in the Netherlands from Altera Vastgoed in February 2016 for a reported €217m. The portfolio consists of 18 office buildings (111,921 sq m) and seven (68,664 sq m) industrial assets. More than 75% of the portfolio is located in the Randstad conurbation, which encompasses Amsterdam, Rotterdam and Utrecht. In the last quarter of 2015, insurance group Delta Lloyd sold an office portfolio to Singapore-based First Sponsor for more than €220m. It followed this by selling a retail portfolio, mainly located in the Randstad, to EPISO 4, advised by Tristan Capital Partners, which paid €273m. “Well-located retail assets like these will benefit as consumer confidence improves — a theme that we have pursued already in Germany and the UK,” says Tristan Capital Partners’ managing director of investments, Ali Otmar.

Residential investments are in favour too. In early February, Round Hill Capital bought four residential portfolios in the Netherlands for about €100m from Amvest, MN Services and private real estate investors. Round Hill’s Netherlands portfolio now consists of 8,000 units. Round Hill founder and CEO Michael Bickford says the firm is committed to its investment approach in the Netherlands, where “we expect to continue to acquire similar assets and to expand our residential platform across Europe”. Meanwhile, Augsburg, Germany-headquartered property company Patrizia followed its €340m purchase of a mixed portfolio of residential, office but primarily retail assets in the Netherlands in October 2015 by buying a portfolio of 84 apartments in The Hague in February. “The Hague has a population of around one million and, with high demand for living accommodation contrasting with comparatively low supply, prices for rent

and living space are likely to increase,” says Patrizia Netherlands managing director Peter Helfrich. The Netherlands’ merchant history and its strategic position within Europe’s transport network makes it a favoured location for logistics operators and this, too, is reflected in its property market. Recent Prologis research reveals that Europe’s top-five logistics locations all lie in the Benelux region. Indeed, Venlo in the Netherlands remains Europe’s most desired logistics location owing to its good land availability, road access, transport costs and regulatory environment, according to the report Themes Shaping Location Selection in Europe, jointly published by Prologis and business intelligence firm Eyefortransport (EFT). UK company Segro recently acquired a portfolio of three let logistics buildings near Tilburg, which lies midway between Antwerp and Rotterdam. Segro paid private Dutch developer Dokvast €92.7m for the 104,000 sq m portfolio. “Tilburg is a prime logistics market with a shortage of quality supply, low vacancy and strong occupier demand,” says Segro chief investment officer Phil Redding.

Well-located retail assets will benefit as consumer confidence improves — a theme that we have pursued already in Germany and the UK Ali Otmar 57

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