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Wednesday 15 March 2017

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MIPIM OPENING NIGHT

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Hire the British talent taking architecture to new heights.

Spaceport America, New Mexico, USA Foster + Partners, UK

MIPIM 2017 opened with a night of celebration at the Carlton hotel

DIVERSITY

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The real estate industry must embrace diversity if it is to thrive

MAYORS’ THINK TANK

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Visionary design is just one example of the creativity that the UK’s 5.5 million companies can offer your business. Find your ideal trade partner at great.gov.uk Leisure is the key to city growth, mayors hear at MIPIM

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Investments. Responsibly delivered. Hermes Investment Management offers client focused property investment solutions that seek to maximise risk-adjusted returns. We believe that a principled approach is the only strategy that protects and enhances the value of our clients’ assets, now and in the future. We aim to deliver sustainable investment excellence – built for the long term. www.hermes-investment.com For more information please contact: Mark Miller Head of UK Institutional Tel: +44 (0) 20 7680 2205 Email: mark.miller@hermes-investment.com

FOR PROFESSIONAL INVESTORS ONLY. Investing in property is an illiquid investment and may result in deferment of redemption of units. The value of the property is a matter of a valuer’s opinion rather than fact. The value of investments and the income from them can fall as well as rise and you may not get back the original amount invested. Issued and approved by Hermes Investment Management Limited which is authorised and regulated by the Financial Conduct Authority. Registered address: Lloyds Chambers, 1 Portsoken Street, London E1 8HZ.

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03/03/2017 10:00


mipim

CONTENTS NEWS

WHAT’S HAPPENING TODAY

6 Call for gender balance, Hilton’s new Paris flagship, and more...

PROJECT NEWS

•B  lockchain: What Are The Opportunities & Challenges Of Peer To Peer RE? 10.00-10.45 – New Deal room, Palais 3 • Hosting International Events: What Legacy For Citizens? 11.15-12.00 - New Deal room, Palais 3

67 Emerging schemes from around the world

• How Does Technology Reshape The RE Job Market? 15.15-16.00 - New Deal room, Palais 3 • Startup Competition – Finals 16.00-17.30 – Grand Auditorium, Palais 1 Followed by a networking event until 19.00 • What Is The Investment Horizon Across The US RE Market? 17.45-18.30 – Market Trends room, Palais 3 PRESIDENT of the Ile-de-France regional council Valerie Pecresse extolled the attractions of the French capital region to footloose international businesses, speaking at the Paris Region stand. Massive investment in infrastructure is opening up new business locations across the region.

FEATURES 81 France sets innovation benchmarks

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85 N  ordic markets heat up the north

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Sc

rence Confe me a r prog m P53

89 Safety from the storms in Germany

The official MIPIM daily newspaper Wednesday 15 March 2017

Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor in Chief Graham Parker News Editor Doug Morrison Sub Editors Clive Bull, Julian Newby, Joanna Stephens Proof Reader Debbie Lincoln Reporters Ben Cooper, Mark Faithfull, Isobel Lee, Mark Moore, Liz Morrell, Paul Strohm Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designers Muriel Betrancourt, Véronique Duthille, Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographers Christian Alminana, Patrick Frega, Phyrass Haidar, Olivier Houeix, Michel Johner Editorial Management Boutique Editions PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Co-ordinator Emilie Lambert 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 © 2017, Reed MIDEM Market Publications. Publication registered 1st quarter 2017. Printed on PEFC Certified Paper.

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IN PICTURES

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Night to remember MIPIM’s opening night drew a crowd of delegates to the Croisette to celebrate another successful year

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JAMES ANDREW INTERNATIONAL ARTHOUSE KINGS CROSS, LONDON

RIVIERSTAETE, AMSTERDAM

205,000 sq. ft. office building acquired on behalf of WPP Group Plc.

46-50 OLD BOND ST, LONDON

New build residential block forming part of a portfolio of over 400 apartments in Kings Cross managed by James Andrew Residential.

Marketing advice on behalf of De Beers in respect of their flagship London store.

SKY ZONE TRAMPOLINE PARKS

TIME OUT MARKETS

14 CORNHILL, LONDON

UK Advisor to Sky Zone USA the world’s largest operator of indoor trampoline parks.

International acquisition advice on behalf of Time Out Market.

150,000 sq ft City of London Office building. Asset Management & Property Management.

400-430 CALIFORNIA ST, SAN FRANCISCO

Landmark office tower acquired on behalf of Takenaka Corporation and Kennedy Wilson.

JAMES ANDREW INTERNATIONAL PROVIDES WORLDWIDE REAL ESTATE CONSULTANCY, COMMERCIAL AND RESIDENTIAL ASSET MANAGEMENT SERVICES Acquisitions | Leasing | Investment and Development | Disposal Real Estate Management | Rent Reviews | Valuation Harvey Soning | Ronald Cohen | Fiona Doherty | Jeremy Grey | Corin Jenkins | Julian Josephs Mark Kleinman | Nicholas Marks | Lisa Moran | Roy Somerston | Andrew Soning | Geoffrey Warner

Head Office: 72-75 Marylebone High Street, London W1U 5JW T: +44 (0)20 7224 4436 www.jamesandrew.co.uk

WEST END & CITY OF LONDON

I WASHINGTON DC


mipim

NEWS

Companies must address Partnerships help Hilton gender-balance problem grow presence in France

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HERE is a disconnect in real estate between what companies say they are doing around gender balance in the workplace and what is actually happening that needs to change, according to delegates at the MIPIM Women Of Influence Networking Cocktail event yesterday afternoon. Elisabeth Teo-Pennell, managing director of PGIM Real Estate, said it was important for women to get together and force change. Addressing those at the event she said: “Even though there are more of us, just getting on the plane this morning showed me how few women there are in this industry, particularly at leadership level.” Teo-Pennell unveiled the results of a survey of 40 companies and more than 380 respondents looking at gender balance in real estate and what can be done to bring about change. The report was produced by Real Estate Balance — an association of men and women across different industries who are trying to address the issue. The survey showed that while 35% of men felt that their company dealt “extremely well” with gender issues only 11% of women agreed. “The biggest disparity is that women can make it so far but to get further seems to be a strug-

Hilton’s David Heijligers (left) and Nick Smart

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ILTON is flying the French flag at MIPIM this year, as it unveils several new hotel projects in the country that are the fruit of key partnerships. The biggest news is the launch of the Hilton Paris Eiffel Tower, which will see the global hospitality company partner with investor Compagnie de Phalsbourg on an upscale hotel in Paris’s seventh arrondissement, enjoying rooftop views of the Eiffel Tower. “The project involves the conversion of two adjacent buildings dating from the 1900s and 1970s into a 118-room property, in a phenomenal area of town,” said Nick Smart, Hilton’s vicepresident development for North and West Europe. Operating under its flagship Hilton Hotels and Resorts brand, and set to be managed by Hilton, the property’s interiors have been entrusted to French designer

PGIM Real Estate’s Elisabeth Teo-Pennell: “cultural change is key”

gle. Key reasons for this are a limited turnover of senior representatives, inflexible working hours and a lack of role models in the industry,” she said. The report unveils a 10-point plan to bring about change which she urged women to instigate in their companies. “That way we are not just talking about it but are doing something about it. Cultural change is key to improving diversity and businesses need to commit to making it happen,” she said.

Philippe Starck. “We decided to focus on France a few years ago, to build on our 50-year history in the country,” Smart said. “Hilton is the best known international brand in France and we see a lot of potential in Paris, on the south coast and in its major cities.” Also in France, Hilton has inked a franchise agreement with leading hospitality player NAOS for another three properties. “Together Hilton and NAOS are launching Hilton’s midscale Hilton Garden Inn and Hampton by Hilton brands in France, at locations in Bordeaux and Clichy respectively,” said David Heijligers, Hilton’s senior director development for France and Benelux. “In the capital, Niepce Paris will see a second hotel join Curio – A Collection By Hilton, with the bespoke conversion of a row of 19th century three-storey townhouses in Paris’s 14th arrondissement.”

mipim HIGHLIGHTS

MIPIM kicked off in style at the Carlton hotel

Cocktails at the Carlton

Welcome to MIPIM

Attention

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Visit us at mipim: booth R7.G24 14-17 March 2017, Cannes, France Palais des Festivals, Riviera Hall

Realising Potential

With integrated management and consulting services we assist our clients in all decisions concerning real estate – beginning with investment and development, covering management and operation through to sale. With ₏ 61 billion real estate assets under management, we form one of the leading real estate service providers in Europe.

www.apleona.com


mipim

NEWS

Sky-high opportunities Munich’s secret: ‘We know at Airport City Istanbul we have to keep learning’ BMW’s Munich HQ (photo: Guido Radig)

Istanbul Grand Airport’s Ayhan Okmen: “not just a new airport, but a new retail, office and leisure hub”

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STANBUL Grand Airport (IGA) is using MIPIM to showcase Airport City Istanbul, a vast retail, office and leisure complex around the group’s planned mega-airport, and the first of its kind in Turkey. “IGA will be the world’s biggest airport on completion,” said Ayhan Okmen, IGA’s airport city manager. “But it’s important to see the project not just as a new airport, but as a new retail, office and leisure hub.” Airport City Istanbul combines hotels, schools, shopping and business centres, social and exhibition facilities, and hospitals on a 10.5 million sq m location next to the new airport. Located 35 kilometres away from the centre of Istanbul, it will provide services for airport patrons, as well as the whole city. It will also have a sustainable design and could serve as a role model for similar airport cities worldwide.

Airport City Istanbul will be completed in synchronisation with the new airport, which is planned to be activated in the first quarter of 2018 with a capacity of up to 90 million passengers. The first phase of Airport City Istanbul — designated the Core Zone — will consist of a 420,000 sq m area near the main terminal building and metro station. The core zone is composed of hotels, offices, shopping malls, hospitals and serviced apartments. Additional phases include the East Zone, which will host specialised buildings such as an expo centre, a designer outlet, and education and healthcare campuses; and the T2 Zone, which will be developed simultaneously with the T2 terminal. The masterplan of the Istanbul Airport City comes from architecture and design firm Perkins+Will.

The Cycle To Cannes team arrives

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UNICH is starting to gain ground on rival European cities, according to its deputy mayor Josef Schmid. “It’s the capital of Germany’s most prosperous region,” he said. “It’s also the place where we tend to do the right things in the right kind of way.” Schmid pointed to recent figures that show Munich has overtaken Amsterdam in terms of volume of cultural and creative business. “We are in third place now, behind only London and Paris. And they need to look over their shoulders too. We’re not slowing down,” Schmid said. The city can also be proud that it has seen the highest increase in the number of “real jobs” in Europe, Schmid added — jobs that are independent of any socialsupport element. One of the strengths of Munich, according to Schmid, is that local and regional business taxes

Going out live

are largely returned to taxpayers in the form of infrastructure expenditure: “Taxpayers know that they get a real return in quality of life from the business tax paid. It creates a better community.” Munich is well known as the home of BMW. “But it is also now the home of Microsoft in Germany. We’re not just a transport-industry city —we’re now a tech and digital town too,” Schmid said. Schmid identified higher education, especially technical higher education, as one of the underlying keys to Munich’s success: “We have two technical universities in Munich that are constantly deemed by responsible surveys not just the best in Germany, but among the best in the world.” But he stressed that the city will not become complacent: “We know we have to keep learning. You can’t always assume what’s good today will be good tomorrow. The reason for Munich’s success is we’re always looking to tomorrow.”

Catching some rays

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NORDRHEIN-WESTFALEN + + + INVITATION + + + NRW-RECEPTION + + + 15 MARCH, 5:OO PM + + +

MORE THAN A PROMISE. The best addresses are to be found in NORDRHEIN-WESTFALEN | NRW

(North Rhine-Westphalia), Germany’s No. 1 investment location: high consumer demand, social stability and low volatility in office, retail and residential real estate. Excellent commercial zones are complemented by innovative architecture, outstanding connections and a high quality of life. Interested? Discover further examples of excellence at our booth at MIPIM 2017. Or visit us at www.nrwinvest.com

VISIT US RIVIERA 8 R8.D13


mipim

NEWS

Leisure at the heart of interaction for cities

Ivanhoe Cambridge builds key Toronto development

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HE ARTS, sports and leisure can help cities create engagement with their citizens and act as a catalyst for regeneration, mayors heard at The Mayors’ Think Tank event at the Carlton hotel in Cannes yesterday afternoon. In an exclusive gathering for mayors from Europe, the US and Asia, the theme for this year’s event was debating what makes a city attractive today and tomorrow. Abdel Bouna ne, CEO of digital art and design agency Bright, outlined the ways in which art — especially digital artworks — can help a city to enliven the public realm and also create engagement with people as they interact with culture and technology. “One very interesting way of using digital is to make it based around data,” Bounane told MIPIM News. “For example, in one project we introduced a digital work which reflected the amount of energy being used in the city. So you make the invisible visible and get people to think about something they don’t normally see.” Similarly, Jordi Moix, commissioner for Espai Barca and member of the board at FC Barcelona, described the project that the football club hopes to push forward to not only redevelop the Camp Nou

Ivanhoe Cambridge’s Arthur Lloyd

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HE BAY Park Centre mega-project now emerging in the centre of Toronto will raise office development standards in the Canadian city, according to developer Ivanhoe Cambridge. Arthur Lloyd, Ivanhoe Cambridge’s president, office, North America, told MIPIM News: “Bay Park Centre is unlike anything that’s been developed in Toronto before in terms of quality and scale. It connects Toronto to a new international standard of office space. It’s the secondbiggest project ever in Toronto. The project will allow tenant densities at levels never achieved in Toronto before.” Higher tenant densities create a number of advantages, not least lower costs. 81 Bay Street — the first of the two towers comprising Bay Park Centre — will feature 49 floors and 150,000 sq m of

The Croisette under canvas

state-of-the-art offices and collaborative spaces, with expansive views of Lake Ontario and Toronto’s skyline. The 290,000 sq m Bay Park Centre sits on a 4 ha site at the confluence of major commuter routes into the city centre, Jonathan Pearce, vice-president of office leasing, said. “We’re building over the commuter bus station and where all the major lines meet in the city centre. It’s adjacent to Union Station and features an urban park connecting both towers. It’s also got good access to the airport.” Lloyd added: “The first phase is scheduled for completion in 2020. Then phase two will start on completion of phase one. The second tower will finish in 2024.” Both office towers are aiming for LEED-CS Platinum certification and will be WELL Building certified.

The Palm Jumeirah model

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Bright CEO Abdel Bounane

stadium but also to regenerate the 20 ha site directly surrounding the stadium. The club and local authorities are in final negotiations about the €600m scheme. Moix said: “Cities now understand that if they have a major sports stadium then there are commercial opportunities not simply one day a week, but on all the non-match days. That might be tourism, or the activities that build up around the stadium, so they need to work on these strategies. We have come a long way — 20 years ago at MIPIM local governments would not have thought this way.”

The Palais opens its doors


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mipim

NEWS

Investors show appetite for new opportunities at Cannes summit

A Overseas Real Estate’s Yang Xiu

CHINA TAKES FRESH APPROACH TO GLOBAL INVESTMENT CHINESE state-funded overseas development is entering a “new phase” in which projects are delivered “leaner, cleaner and greener” than in the past, according to Yang Xui, senior manager for business development for government real estate agency CCCG Overseas Real Estate. He said the government was seeking global opportunities while moving away from its past reputation as being overly-bureaucratic and inefficient. At MIPIM for the first time, Xiu said: “We are a looking for opportunities in emerging markets and developed countries.” He added that the subsidiary of the CCCG Real Estate Group is particularly interested in South America, and emerging markets in Africa where it has already established a large portfolio of assets. “MIPIM is the perfect opportunity to find investment opportunities and potential partners for projects,” he said.

On the blue carpet

ROUND two-thirds of the pension and sovereig n wea lt h funds brought together at this year’s MIPIM plan to be net buyers in 2017. Some 60 representatives of institutional investors congregated at RE-Invest, MIPIM’s institutional investors’ summit, yesterday to discuss a number of issues, from Brexit to interest rates and technological advancement. Robert White, founder and president of Real Capital Analytics, said he was surprised there were not more net sellers as investors looked to “harvest profits”. The appetite is likely to be supported by low interest rates and Russell Chaplin, chief investment officer for property at Aberdeen Asset Management, said there was a consensus for the lower-for-longer backdrop to continue. Jose Luis Pellicer, head of research at Rockspring, said he was surprised that interest rates did not emerge as the main concern among investors during the roundtable talks. He said investors realised that rising interest rates could cause capital values to fall, but they are investing for the long term. Andrew Stainer, global head of asset management at AXA Investment Managers – Real Assets, said there was a debate that

Delegates at the RE-Invest summit yesterday

the current market cycle could continue for some time, as more capital is expected to move into the asset class. The risk of disruption caused by technology was discussed. A straw poll showed that investors thought offices were most vulnerable — specifically to the effects of automation on employment markets. Andy Pyle, head of UK Real Estate at KPMG, said that logistics and private-rented housing were more immune or could even benefit from technological developments. Amanda Howard, head of funds and indirect real assets at law firm Nabarro, said there was

The annual sake ceremony

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recognition that investors should perhaps look to replicate the coworking model pioneered by Regus and more recently WeWork. RE-Invest, the behind-closeddoors investors’ summit, attracted 60 institutional investors representing 45 institutions; 27 pension funds; 10 sovereign wealth funds; two government agencies and six insurance funds. Between them they have over $600bn allocated to real estate. Sponsors are AXA IM – Real Assets, Aberdeen, KPMG, RCA, Nabarro and Rockspring. Media partner is IPE Real Estate; knowledge partner is Real Capital Analytics.

Looking into the future


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Magnolia Bostad. We develop efficient, attractive and functional residential properties, including rental apartments, tenant-owned apartments and hotels, in attractive locations primarily in Sweden’s growth areas. Our work is based on a holistic approach where the operations are conducted in a manner that promotes longterm, sustainable urban development. Read more about one of Sweden’s fastest growing property developers at magnoliabostad.se

Magnolia Bostad’s share (MAG) is listed on Nasdaq First North.


mipim

NEWS DUBAI’S MIDMARKET RESI MATURES A SLIGHT softening in mid-market residential prices in Dubai indicates that the sector may have moved beyond boom-andbust cycles, but the pricing of affordable housing has put the market at risk of a crash, according to David Godchaux, CEO of Savills’ Core. The government has reduced mortgages loan-to-value to a maximum of 75%, which has cooled speculation in the mid-market. But Godchaux said that the large deposits required are beyond many in the affordable market, meaning purchasing is dominated by speculators, who are achieving yields of up to 11%. “We hope the government may adjust the mortgage rules to make cheaper housing more accessible,” Godchaux added. “Overall we feel that the housing sector has evolved and a number of recent schemes have shown a shift away from the biggest and tallest to focus on lifestyle.”

NEWCASTLE BUILDS FUTURE ON HERITAGE

Cayan unveils mega-project on Jeddah’s ‘fantastic’ waterfront

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AUDI property developer Cayan Group announced plans for a new mega project at the Obhur waterfront in Jeddah at MIPIM yesterday and signed the architectural contract with Nikken Sekkei, the Tokyo-headquartered architectural firm that was also involved in Cayan’s Cantara project in Dubai. Cayan’s latest project will cover a built-up area of 140,000 sq m at a cost of SAR1.2bn (€300m). It will consist of two towers — one a five-star, 350-room hotel and the other branded residences offering high-end living — with a podium between the two towers to house retail. Final permissions should be granted “in the next couple of months”, said Ahmed M Alhatti, chairman of Cayan Group, with the project starting construction in 2018 and completing in 2022. The mixed-use project is being created in Jeddah to take advantage of the development of the Jeddah Economic City. Alhatti said that the hospitality sector in Jeddah is influenced by local demand and pilgrims, and is

Nikken Sekkei’s Tadahiko Murao (left) and Wataru Tanaka with Cayan Group’s Ahmed M Alhatti and Nikken Sekkei’s Fadi Jabri

therefore resilient with good ROI potential. Alhatti said of the decision to invest in Jeddah: “Saudi Arabia is Cayan Group’s home ground. We have wanted to expand our brand in the market but, more importantly, we have wanted to extend our support and fulfil our commitment towards the local economy. This is a fantastic location in the expanding northern area of the city.” The deal with an international

NEWCASTLE has its “best days ahead of it” with a raft of schemes to transform the UK city, said Newcastle City Council chief executive Pat Ritchie. The northern city offers opportunities across a range of sectors, Ritchie said: “This is a city with a strong industrial heritage and brand. We’re looking for partners. We will invest alongside them and work with investors to deliver our long-term plans,” he said. Projects in the Newcastle pipeline include the mixed-use Stephenson Quarter, and the redevelopment of the former site of the Newcastle Breweries.

hotel operator has already been signed, Alhatti said. He added that Cayan Group is also at MIPIM to increase its profile, as it has recently expanded to develop schemes in Spain and the UK. “We have become known for our distinctive approach,” he said. “I would say we develop unique buildings. We want this to be a benchmark for Jeddah, where the appetite for futuristic designs is very strong.”

MIPIM 2017 was formally opened yesterday by Emmanuelle Cosse, France’s minister for housing and sustainable habitat (centre), flanked by Reed MIDEM’s Ronan Vaspart (left), Paul Zilk and Filippo Rean, and Bernard Brochand (far right), French member of parliament and former mayor of Cannes

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Skanska

Advertorial

300,000 square meters of new futureproof office space – one region, four countries, ten cities What illustrates the strong economy and investment attractiveness of the CEE region? Among other factors, the rapid growth of the commercial real estate sector. Players such as Skanska Commercial Development Europe, now with property developments across Poland, the Czech Republic, Romania and Hungary, were quick to see CEE’s potential. Today, the 100-150 bps prime office yield spread between the capital cities of Western Europe and cities in CEE like Prague or Warsaw, and recordbreaking leasing and divestment activities illustrate the fact that this market has been an excellent choice – for developers and investment funds. Skanska CDE continuously breaks its own records, pushing itself and the competition to the limits. After the company’s CEE divestment record in 2015, last year saw exceptional leasing activity. The company leased almost 170,000 sqm GLA of office space in ten CEE markets – the best ever leasing result.

Katarzyna Zawodna, President at Skanska Commercial Development Europe

“We had a fantastic year with major successes and historically high leasing results across CEE. We have established close relationships with tenants, investors and business partners, and greatly appreciate the trust they have place in us. Currently we have almost 200,000 sqm under construction. After strategic land acquisitions in Poland, such as those in the heart of Warsaw’s central business district, 2017 will see Skanska CDE start new developments totaling over 300,000 sqm. Skanska simply tries to provide communities with valuable, sustainable office buildings that are futureproof and accessible for everyone,” says Katarzyna Zawodna, President of Skanska CDE. Skanska CDE’s offices are not only excellent workplaces, but also top-quality investment products, which can compete with assets of the same class from Western Europe. Over the last two years, the company has signed final sales agreements with nine investors, for 15 office buildings in four CEE countries – testament to the company’s products and working standards. “The yield spread between Western and Eastern Europe, which favours CEE, is attracting many investment funds. In 2016 alone, Skanska CDE established new relationships with three investment funds, selling the Atrium 2 office project in Warsaw to HANSAINVEST Real Assets, and the Nordic Light office building in Budapest to Erste Alapkezelő Zrt. Another major deal was the sale of Westin Hotel in Warsaw to a Quatari player, Al Sraiya Holding Group. HANSAINVEST and Al Sraiya were both newcomers to the market, choosing Skanska assets as their first investments in Poland. We’re also proud of the fact that when our business partners want to diversify their real estate portfolios in the region, they come back to us – it makes our work valuable,” says Adrian Karczewicz, Head of Divestments CEE at Skanska CDE.

Adrian Karczewicz, Head of Divestments CEE at Skanska CDE

Skanska Commercial Development Europe (CDE) Skanska CDE is part of Skanska, one of the world’s leading project development and construction groups with an almost 130-year history in the real estate sector. Skanska CDE is an investor and developer of green innovative office projects. The company’s operations are conducted by four local units in the key CEE markets: Poland, the Czech Republic, Romania and Hungary, in ten major cities. The company provides flexible office space tailored to the needs of modern companies, meeting the highest requirements of sustainable development, which is confirmed by their LEED certification. Thanks to its close relationships with business partners, the company enjoys the trust of tenants and investors, who are willing to continue to work together successfully, expanding their businesses in Skanska’s other office buildings in the region. Over the years, the company has won numerous prestigious industry awards and rankings for the CEE region. Among them is the 2016 CEEQA Award for Developer of the Year. More information can be found at: www.skanska.com/property


mipim

NEWS

Hungarian real estate benefits from new government policies Hungarian Investment Promotion Agency’s Robert Heffner Tokyu Land’s Hitoshi Maehara

JAPAN MAKES MOVES INTO CROSS-BORDER INVESTMENT JAPANESE institutional investors are embracing cross-border opportunities and risk as never before, the president of a large asset management firm has said. Speaking to MIPIM News, Hitoshi Maehara, president and chief executive of Tokyu Land Capital Management said that “for the first time” funds and institutions, including state pension funds, are considering more diversified investment opportunities both at home and overseas. Maehara added: “Institutions have just begun seriously to consider cross-border investment, as well as the GPIF (Government Pension Investment Fund). In the past they have been very risk-averse, but changes in economic policy and very low interest rates have forced them to diversify. “Naturally they are very conservative but it’s changing now. There is a new attitude among investors and the governmentheld funds are seeking advice about diversifying their portfolios to be less risk-averse. It’s a good phenomenon,” he said. Tokyu Land Capital Management oversees a diverse portfolio of assets on behalf of a range of domestic and international clients. The company holds real estate assets across the residential, retail and office sectors and has operated in the US and China. Tokyu’s Morinomiya Q’s Mall Base scheme in Japan’s second city, Osaka, has been shortlisted in the MIPIM Awards for the prestigious Best Shopping Centre category.

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UNGARY’s inward investment drive has shifted emphasis and government efforts are now focused on attracting high-technology and research and development activities, rather than just large-scale employment. This and a tilt towards decentralisation could have considerable significance for real estate. “Previously we had 11% unemployment and this is now down to 4.7% which is a significant change,” Hungarian Investment Promotion Agency deputy director Robert Heffner told MIPIM News. The shift in emphasis is already showing results. Phone manufac-

turers Ericsson and Nokia have both set up R&D functions in Hungary, the latter employing 2,000 people. Morgan Stanley’s software developers are based in Hungary, and IBM has established a research and development centre there. “We have a nice track record regarding research and development centres and want to push the economy more in this direction,” said Heffner. Another change of emphasis is to provide generous incentives for companies to relocate to university towns outside Budapest, particularly in the east and south of the country where up to 50%

REED MIDEM’s Paul Zilk (third from left) and Mehmet Ozhaseki (second right), Minister of Environment and Urbanisation in the Republic of Turkey, with members of the Turkish delegation to MIPIM, cut the ribbon at the opening ceremony of the Istanbul Chamber of Commerce Pavilion yesterday.

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of a project’s cost can be funded by the government. “This is quite a successful programme that has already attracted Vodafone, Lego and BT,” Heffner said. Foreign companies are also being attracted by a reduction in corporation tax to 9%, effective this year. Social security tax is down from 5% to 2% and personal income tax is now 15%. Value Added Tax at 27% is the flip side of this generosity. Foreign property investors will find a market in which the office vacancy rate is at a record low 9.5% and vacancy rates in the industrial and logistics market are also at a record low.


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Warsaw Spire combines organic architecture with futuristic design

The ground floor of the Warsaw Spire is open to all residents. Its carefully designed interior naturally complem ents the public square. The custom design of the buildings won the most important contests in the world.

Today Warsaw Spire is the finalist of MIPIM Awards 2017 and competing for the title of the best office investment in the world. Warsaw Spire is the result of cooperation of an international groups of professionals: the investor and developer Ghelamco and esteemed Polish and Belgian architects from Jasper-Eyers (with cooperation with Projekt - Polish Belgian Office of Architecture) and Massive Design and Wirtz International Landscape Architects. The 220 m Warsaw Spire is the tallest office building in Central and Eastern Europe and its 109,000 sq m of space also makes it the biggest office complex in Poland. The dynamic, soaring and fully-glassed body of the skyscraper has become one of Warsaw’s landmarks and a symbol of the city’s fast growth.

Visionary custom design Important elements of the structure include the publicly available Plac Europejski (European Square) and the skyscraper’s interior. Unseen in office investments, the ground floor of the building is open to all residents. Its carefully designed interior naturally complements the public square. The lobby was designed by Przemysław “Mac” Stopa, a world-class Polish architect from the Massive Design studio.

“The elements used in Warsaw Spire were seamlessly combined to create a modern interior with an organic architecture which goes well with the building’s façade. What makes it unique among many other interiors of office buildings are three-dimensional shapes of walls and ceilings based on soft, morphic forms,” says Mac Stopa, Founder and

Shaping urban space

Chief Architect, Massive Design.

carefully developed square is complemented

What is interesting, Mac Stopa designed some items of furniture, such as armchairs, poufs and tables, dedicated for Warsaw Spire. The floor is covered by quartzite Star Maker tiles by Italy’s Laminam. They were also designed by Mac Stopa. Their quality was recognised in the Red Dot Award: Product Design 2016 competition. The jury awarded it the most prestigious title “Red Dot: Best of the Best”.

Organic shapes emerge to the building’s exterior. Plac Europejski, which surrounds the buildings, was designed by Wirtz International Landscape Architects, a renowned studio whose portfolio includes, among others, gardens of the Élysée Palace in Paris. The by designer installations also created by Mac Stopa. They include Art Walk, i.e. a street art gallery, and an amazing body of the Genesis restaurant. Art Walk’s original body was awarded in the Outdoor Space category in the prestigious competition Best of Year 2016 in New York. Warsaw Spire is an example of a developer’s innovative and responsible approach to shaping urban space. The unique project, developed by a group of top architects and designers, was appreciated by juries of Polish and international competitions, which granted Warsaw Spire and Ghelamco numerous awards and distinctions.

Famous for his enthusiasm for organic shapes, the architect has created amazing interiors for Warsaw Spire with a futuristic design.

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Globalisation is alive and well

KEYNOTE speaker Parag Khanna, the international relations expert, took the stage at the MIPIM opening ceremony to assert that globalisation is not in reverse and that connectivity will continue to knock down walls, erase borders and create the mega cities of the future.

“I

t’s 25 years since the Cold War ended,” Khanna said, “an event which coincided with the invention of the world wide web and a shift towards greater connectivity. There is no turning back from this connected world and it is only going to get faster and more relevant. Connectivity means living in a supply-chain world where people, capital and information can travel easily around the world.” For Khanna, the world’s most connected cities are supremely robust in times of economic downturn and are evolving into urban clusters of prime importance. He identified the 50 mega cities of the future, which will account for two thirds of the global population by 2030. “Cities drive the global network civilisation,” Khanna said. “In traditional politics, one country’s gain is another’s loss. In a world driven by cities, stronger neighbours mean more people to sell to, more airline connections to build.” The director of Hybrid Reality and best-selling author said that despite dire warnings that global trade will falter, “decreasing global frictions mean that trade is unstoppable. Whatever the Trump administration tries to do in terms of border taxes or protectionism, they will not change the world order,” he said. “You are all here at MIPIM because you are aware that domestic opportunities are not enough.” A crucial aspect of this connectivity is immigration. “All great global cities are melting pots and the world’s most successful cities welcome inflows of talent. The mayors of many of our global cities are speaking out against the implications of Brexit and Trump and will want to be in control of immigration in the future.”

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Japan Insider's Presentation Presentations featuring major ongoing projects in Tokyo and Osaka and the current status of the bustling Japanese real estate market.

“Shamisen�performance Enjoy a traditional Japanese musical performance, "Shamisen", before every presentation.

Be sure to vote for us at the Awards Gallery! Nominated for BEST SHOPPING CENTRE

Morinomiya Q's MALL BASE

Nominated for BEST FUTURA MEGA PROJECT

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NEWS RUSSIAN SHOPPING SUCCESS DRIVEN BY UNIQUE LOGISTICS ULMART is the number one and fastest-growing e-commerce platform in Russia. That was the message in a presentation to MIPIM delegates from the Russian company yesterday. Founded in St Petersburg in 2008, Ulmart reached a turnover of $1bn (€0.93bn) in its first five years. Ulmart’s chief investment officer Denis Solovyov reckons its significant market growth is attributable to the low level of internet connectivity, and the use of smartphones and online shopping as key drivers of the growth for some product categories in Russia. Ulmart combines online shopping with both delivery and product collection. “Delivery is easier when you live in houses,” Solovyov said. “But in Russia the majority of people live in flats which makes delivery more difficult. So we created our fulfilment centres which combine both the ability to pick up pre-ordered items and to scan the available ranges.” Ulmart operates four levels of pick-up hubs: regional centres; suburban centres; city logistics centres; and local pick-up points. “Each level is more local and convenient than the level above, but has fewer ranges available,” Solovyov said. “As the leader of the Russian e-commerce market, Ulmart has attained this dominant position through its unique logistical infrastructure combined with a wide product range.” The company currently keeps about 120,000 SKUs in its warehouses, and 12 million more SKUs are available for direct ordering from the supplier warehouses.

English cities join forces to drive the Midlands Engine

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HE MIDLANDS region of England is on the verge of a significant phase of developments across all sectors, following years of town planning and unprecedented levels of collaboration between the cities, delegates were told at a special event yesterday. Speaking at a dedicated event to launch a region-wide portfolio of developments and investment opportunities, Dr Colin J Clinton, regional project manager for regeneration and infrastructure at the UK Department for International Trade, said that the Midlands had become a “model region for investment”. Addressing delegates at the busy event, Clinton said: “There’s a long list of opportunities in the region. There’s no other region like the Midlands; the various cities have desire to work together and share in each other’s success.” The portfolio launch comes less than a week after the British government unveiled a major programme of measures to stimulate economic growth and development activity in the region, under the Midlands Engine initiative. Chaired by Sir John Peace, who was also at the event, the Midlands Engine initiative aims to align public and private sector interests and showcase in-

Dr Colin J Clinton (left), Solihull councillor Ian Courts, Nottingham councillor Jon Collins and Midlands Engine chairman Sir John Peace

vestment opportunities beyond the region, which includes the cities of Birmingham, Coventry, Solihull, Lincoln, Nottingham, Leicester and Derby. Speaking at the portfolio launch, Sir John said that the success of the initiative depends on the partnerships that can be formed, between private companies, local authorities, universities and other key stakeholders.

Among the wide range of projects in the portfolio is a significant multifaceted overhaul of Derby city centre; the revitalisation of the Smithfield area of Birmingham, the UK’s second largest city; the creation of a transport hub which will serve as a key junction on the future HS2 high-speed rail line; and a raft of developments in and around the centre of Nottingham.

SEALING the deal for Norway, Erling Fossen (left) project leader for the Oslo Metropolitan area greets Raymond Johansen, governing mayor of Oslo and Rolf Einar, Norway’s ambassador to France.

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NEWS TECH TO FURTHER DIVERSIFY CITY OF LONDON’S MIX THE CITY of London Corporation and City Property Association (CPA) is publishing new research tomorrow at MIPIM, which assesses the impact of the tech sector on the City. Produced in association with Cushman & Wakefield and KPMG, the Tech X The City report predicts that new technologies will diversify the profile of occupiers in the City, and sets out what the Square Mile must do to attract and retain technological pioneers. It encourages landlords, large corporates and government to embrace a range of measures, such as encouraging co-working, establishing an accelerator and creating flexible grow-on space. Mark Ridley, president of the CPA, said: “The City occupier base has diversified significantly over the past decade and, with the right policy environment and developer investment, the Square Mile will be a natural home for global tech.” Carolyn Dwyer, director of the built environment at the City of London Corporation, added: “The city is the original ‘co-working space’ — a place where diverse groups have sought to congregate and collaborate for centuries. So it’s not surprising that tech and the City are quickly becoming synonymous. A new wave of technology, media and telecoms companies are attracted by the City’s world-leading connectivity, pioneering infrastructure, and the unique life and authenticity of the Square Mile.” The report was based on interviews with landlords, corporates, startups and a range of interested parties.

Mall of Switzerland on track to be ‘a great location for all the family’

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HE MALL of Switzerland in the tourist region of Lucerne will open its doors on September 28. And, with approximately 65,000 sq m GLA, it will be the second largest shopping and leisure centre in Switzerland. With its own train and bus station, a highway feeder road that leads directly to the car park and a large bicycle park, the development by FREO will include around 150 shops and restaurants. It will also feature a large leisure and sports offer, such as the first indoor wave surf simulator in Switzerland, the country’s largest IMAX screen and a 12-screen multiplex cinema. The shopping centre is currently around 70% let, according to FREO project manager Evelyne Lohrer. She also confirmed that Spanish children’s specialist theleisureway would be developing a 1,500 sq m play area at the scheme, which has been created as a “family destination”, Lohrer added. Supermarket group Migros will anchor the mall with a large hy-

FREO’s Evelyne Lohrer: Mall of Switzerland is “well located and easy to reach”

permarket. Migros will also offer a gym and wellness centre as part of the leisure offer. Aside from a range of international brands, Mall of Switzerland will host a number of domestic and local retailers to give it a sense of place and will include pop-up stores for local operators. This will also be reflected in an extensive F&B provision, including an open terrace. A click-andcollect area and services will also be prominent.

“We want the shopping centre to be a great location for all the family,” Lohrer said. “The scheme is very well located and easy to reach by public transport, which is very important in Switzerland, and is in an area with a growing residential and commercial presence.” At MIPIM, FREO is based on the Swiss Circle stand, where a number of Swiss real estate businesses are showcasing a range of projects.

Olympian helps Nottingham go for gold

TEAM GB hockey player and Olympic bronze and gold medallist Helen Richardson-Walsh is at MIPIM this week to help promote her home town of Nottingham to national and international

investors and developers. As well as speaking on the Team Nottingham stand — part of the first-ever Midlands Pavilion — Richardson-Walsh also gave a presentation at a dinner last night

Golden moment: Olympic medallist Helen Richardson-Walsh with Jon Collins, leader of Nottingham City Council

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about the behind-the-scenes tactics that helped Team GB into gold medal position. Brendan Moffett, chief executive of Marketing Nottingham and Nottinghamshire, said Richardson-Walsh’s speech could be used “as a metaphor for the city and stakeholders moving forward, to see how we can become more competitive internationally”. Richardson-Walsh said she was delighted to support Nottingham at MIPIM: “It’s an amazing city with so much opportunity and I’m looking forward to flying the flag for Nottingham.”Marketing Nottingham and Nottinghamshire is promoting more than £1bn (€1.14bn) worth of development opportunities at MIPIM.


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02/03/2017 14:08


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NEWS LONDON WILL STAY OPEN FOR BUSINESS

Bunting calls on government to put retail higher up the agenda

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London First’s John Allen

LONDON will remain “open for business” despite the lingering uncertainties over Brexit, the chairman of the body representing the British capital at MIPIM has said. Speaking to MIPIM News, London First chairman John Allen, who is also the chairman of Britain’s largest retailer, Tesco, said that while the British people’s decision to pull out of the EU last summer had had a destabilising effect on the property market, “we are determined to keep London open for business whatever happens in the future”. He said: “London isn’t just a European city, it’s a global city. As well as having a million EU citizens we also have hundreds of thousands of non-EU citizens. There are companies that will be considering opening offices in places like Dublin and Luxembourg because of the need for EU passporting, but this will be mainly selected small groups that get relocated. “We want the government to get the very best deal; what’s good for the country is good for London.” London First counts dozens of major organisations within the real estate industry among its membership, as well as financial service institutions, construction companies, transport and infrastructure leaders.

EVO president Giulia Bunting called upon the UK government to put retail up the political agenda and to recognise its importance to the economy at MIPIM yesterday. Bunting — who is both president of the UK shopping centre organisation and planning director at GL Hearn — said that in particular, reforms of business rates are needed in order to encourage more overseas retailers to set up stores in the UK. She also said that Revo, which has been advocating strategies to rejuvenate high streets, may rethink its dealings with the government after “failing to gain much traction”. She said that recent research by Revo had shown that overseas retailers generally remained very positive about prospects in the UK but that business rates and inflexible planning around building use were deterring some potential market entrants. “We are seeing a lot of mixed use within projects and even individual stores and yet the planning is often too rigid to reflect this transformation in the way retailing is moving,” she said. “We would like to see fresh approaches which recognise the way retail has changed.” Bunting also staked the case for more diversity within the retail and real estate sectors as a whole and said that while she was against quotas by gender or ethnicity, she would like

Revo’s Giulia Bunting

to see a “change in mindset” that encouraged a broader array of people to enter the industry. “I hope as Revo’s second female president that I have helped to raise awareness of the opportunities for women,” she said. “We need to bring a wide range of people to work in retail and for the government to recognise the sector’s importance to the economy.”

Malcolm Hollis targets further growth UK COMMERCIAL building surveyor Malcolm Hollis is hoping to open at least one office in Germany this summer as it continues a pan-continental expansion programme which has already seen it open offices in Madrid, Amsterdam and Dublin. The Nordics, Poland and France are all further targets for the company, which is the largest independent in the UK and partner Jamie O’Brien said that the moves reflect the increasingly cross-border activities of its clients and a very buoyant workload. “There seems to be a lot of activity across all the sectors and our European offices have worked with both UK clients seeking advice in other markets and with domestic clients,” O’Brien said. “We have sought to provide a trusted partner resource but with local knowledge. That combination is high up the priority list for many clients.” O’Brien said that establishing European offices had also encouraged clients in those mar-

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Jamie O’Brien: German office next, with further markets to follow

kets to work with the consultancy when they came to the UK and said that there was strong demand across commercial, retail, leisure and logistics, while for residential in Europe the company primarily provides performance monitoring of assets.


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NEWS

HafenCity invites tenders for ‘exceptional’ Hamburg tower Pavle Radulovic

NATURAL BEAUTY OF MONTENEGRO DRIVES TOURISM MONTENEGRO is betting on its ‘wild beauty’ — the country’s slogan for this year’s MIPIM — to encourage developers and hotel operators to invest in tourism projects in the south-east European territory. “We have almost unlimited natural resources in a very small space,” said the Montenegro minister of sustainable development and tourism, Pavle Radulovic. “You can swim at nine in the morning and ski at noon. We believe that tourism should be our primary economic sector, it’s having an ever-greater participation in GDP and we’re changing legislation to favour sustainable development.” In the past, the southern, coastal region benefited from greater investment than the north, but Radulovic told MIPIM News all that is going to change. “We’re building seven ski resorts in the mountains and constructing a highway to connect north and south. Foreign investors have the same opportunities as domestic ones and the tax regime is very competitive. “We’re now preparing a survey with the World Bank to exploit the country’s potential. We’d like to develop a serious international airport to make Montenegro radically more connected — we see infrastructure as a crucial part of achieving this.”

Elbtower: HafenCity’s concept designed to inspire tender submissions

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AMBURG’s HafenCity project team will today launch at MIPIM the tender process for the project’s final, and potentially most iconic, element — the 200m tall Elbtower. The tower will be Hamburg’s tallest building. The approximately 150,000 sq m building, which will be situated at the easternmost part of the HafenCity site, beside the city’s two Elbe bridges, will also mark the entrance to the city. The site is the only location where Hamburg can extend upwards because of measures to

protect sight lines to historic elements of the city. The building will include offices and hotel space, with public areas for events. Residential space is also an option for the building. “We are searching for investment combined with exceptional architecture,” said a HafenCity spokesperson who emphasised that designs that demonstrate international experience are being sought because of the building’s importance both for the HafenCity project and the city of Hamburg. A new suburban and underground rail station is being con-

MAKING his first visit to MIPIM as president of Turkey’s inward investment agency ISPAT, Arda Ermut (pictured) described the “very positive” investment climate in Turkey. “Turkey has always been open for business throughout its history. Right back to Ottoman times, Turkey welcomed foreign merchants and celebrated different cultures. It’s still the same today. Turkey is the biggest trade hub in the region. In fact it’s now a world hub for trade and investment. It’s also the most stable country in the region and the best and easiest to do business in.” Ermut’s message to MIPIM delegates is “Invest in Turkey. The time and circumstances are right.”

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structed next to the site and will open in 2018-19. The deadline for tender submissions for the Elbtower is August 2017, a private developer will be chosen in 2018 and construction could start in 2020. HafenCity commenced in 2001 and when the scheme is complete it will have extended the city by 40%. The project is now approximately half way through and already includes 1,800 homes for 2,800 residents, and about 12,000 new workplaces have already been created. The entire project should be complete between 2025 and 2030.


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Commercial facility with the concept of "mental and physical health" styled commercial facility — Morinomiya Q’s MALL BASE — visited by more and more people not just locals even attracting overseas tourists. As the aging of Japan's population is advancing and the Tokyo Olympics and Paralympics are coming up in 2020, Morinomiya Q’s MALL BASE has “mental and physical health” as the facility’s concept which is well considered in every countries and by whole range of people these days. We work ed together with a track Olympian to produce our iconic mall facility called “Air Track,” the world’s first

300 meter running track built on the roof top of the mall, also athletic facilities such as 12.5m climbing wall and futsal courts are installed at the mall. These allow this mall to be a place not just for shopping but like a public park where people gather and connect, and also becoming the center of the community. Osaka International airport Kobe

Kyoto

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Kobe airport

Kansai International airport

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his place was flourished as the castle town of Osaka Castle with bustling crowds of people and shops In 17C (1603).As time goes by, the Nissay baseball stadium was developed and became a place where a lots of people gathered for games and enjoyed playing sports in 20C (1950). On the site of the stadium, it turned into a new

[Owned by Osaka Museum of History]

City : Osaka Country : Japan Developer : Tokyu Land Corporation Archtect : Takenaka Corporation Other : Osaka City, Athlete Network

Nominated for Best Shopping Centre

Morinomiya Q’s MALL BASE

Votez pour moi s'il vous plaît! Bitte stimmen Sie für mich! Please vote for me! Official mascot “MORISPECTOR”

https://qs-mall.jp/en/morinomiya/

Tokyu Land Corporation Operating Officer

Hiroaki Hoshino Located in a populous part of Osaka near Osaka Castle, Morinomiya's Q Mall opened in April 2015. With 50 commercial tenants and annual sales of about 8.3 billion yen, the mall attracts 5 million visitors a year, and was designed as an open-air park with lots of green spaces. Its interactive environment encourages exercise and other healthy activities, and the facilities are very family-friendly, with playgrounds, free strollers, and diaper-changing rooms. It's also popular with foreign tourists because of its tax-free stores. These days, shopping malls are no longer just retail outlets. They act as regional hubs that bring together communities and revitalize neighborhoods. Morinomiya's "Q" brand, which is a finalist for a 2017 MIPIM Award, epitomizes this concept, as it stands for four ideas: the "quartet" of region, customer, tenant and Tokyu; "quality and quantity"; "quick" assistance; and "queues," since the mall is always filled with people. The mall's mascot is a dog named Morispector, who is very famous in Osaka for his love of sports. Tokyu Land Corporation manages about 30 commercial facilities, the largest of which is AbenoQ's Mall in central Osaka, with more than 240 stores and annual sales of 50 billion yen. Currently, the company is carrying out a large-scale urban development project in Tokyo near Shibuya Station, a mecca for young people. They also manage malls in the Ginza, Omotesando-Harajuku, and Odaiba districts of Tokyo.

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NEWS

Apleona aims to become European superpower in real estate services

Addleshaw Goddard’s Leona Ahmed

LOGISTICS THRIVING IN ETAIL ERA A RENAISSANCE in logistics, sparked by the rapid growth of e-commerce, has created one of the key investment trends of 2017, the head of real estate at a large London law firm has said. Addleshaw Goddard’s head of real estate, Leona Ahmed, said that the etail era had revived the logistics sector in the eyes of investors and developers globally. She added that it had also sparked a new technology gold rush, which is itself having an impact on property development. “Logistics has gone from being very unfashionable to being a definitive asset class,” she said. “Now technology and the importance of technology has changed everything.” Addleshaw Goddard, which represents businesses across multiple sectors in the UK and internationally, is in Cannes to connect with potential clients from the international real estate markets. The firm has offices in Hong Kong, Singapore, Dubai, Oman and Qatar. Ahmed added that doubts over the UK’s future in Europe had created extra potential for Asian companies looking to invest in Britain. The referendum vote last year, she said, means that a “big opportunity has opened up” for investors looking to gain a foothold in the UK.

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PLEONA, the company borne out of Bilfinger following its sale to privateequity firm EQT last year, is aiming for European domination in the real estate-services arena. “Our common aim is to build on the strength we have. We have two services — we are strong in facilities management and are a strong real estate advisor — and we will grow those footholds to build the biggest and strongest real estate services company in Europe,” said Jochen Keysberg, CEO of Apleona. “We see an increasing demand for cross-border services and will follow that demand by establishing a wider platform in Europe.” The company is helped in this mission by its strong presence in Europe. “We have an operational presence, not letterboxes, in 13 countries,” Keysberg said. According to Keysberg, Apleona

Apleona’s Jochen Keysberg: “so much more than just a new name”

will invest in both people and companies as well as digital ventures: “We are trying to establish ourselves as one of the first digitalised real estate-services providers. And he also emphasised that the company’s exit from a wider focused corporate would allow Apleona to more easily achieve its aim of following the entire lifecycle of its real estate deals.

“We don’t have all the focus on the transaction,” he said. “We are trying to establish long-term relationships and, as a result, have a different approach to the market from some of our main competitors. This is so much more than just a new name. People are excited about what lies ahead. We have a very different structure now and that allows us to be faster.”

nHouse opens its doors to the market A NEW pre-fabricated housing product, nHouse, was unveiled at MIPIM yesterday. The offsite-constructed home has been

designed by architect Richard Hywel Evans, who is director of nHouse. “This is a 100 sq m house with

nHouse’s Richard Hywel Evans: prefabricated house takes three days to put together

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three bedrooms and three bathrooms with four parts that click together with patented technology,” Hywel Evans says. He added that the house takes three days to put together and costs £190,000 (€217,039) to both deliver and set up on site, making it comparable to, or slightly cheaper than, traditional house builds. The nHouse can be set up as a detached, semi-detached or terraced property. Moreover, because of the lightweight nature of the structure, it can be erected in areas where traditional building is not always possible. Its parts are assembled in a factory in the east of the UK. The pre-fabricated market in the UK is currently a 10th of the size of Germany’s, Hywel Evans said, adding that the UK government wants to triple its size.


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NEWS POWERED BY PECHAKUCHA: DAY TWO YESTERDAY we profiled two of the speakers presenting within the PechaKucha event taking place on Thursday, March 16, in the Grand Auditorium from 11.00 to 12.30. Today we profile two more. From the UK, they are Steve Collis, joint managing director and strategic director of JHP Design and Kasper Guldager Jensen, director of GXN. Collis is responsible for creating the strategic and commercial rationale behind JHP’s design projects, which include everything from stores to shopping centres, and packaging to product. He is also a regular commentator on design and brand issues in the press, online, on radio and television and on the international speaking circuit. Guldager Jensen is a partner in 3XN Architects and director of GXN, the company’s innovation unit which was established in 2007 to collect and apply the latest knowledge on materials and new technologies to the studio’s architecture. The PechKucha – A New Deal For Real Estate event comprises 20 slides with 20 seconds for each, meaning that presentations are kept to less than 10 minutes.

San Diego seeking development partners in Chula Vista scheme

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HE SAN Diego / Tijuana mega-region is exhibiting for the first time at MIPIM, sharing a raft of projects which are set to transform the greater metropolitan area. “The goal is to put San Diego on the global stage as an investment location,” said Susan Guerra, COO of local developer Chesnut Properties. “The area is growing and is one of the top cities in the US for tech and biotech.” Towards the south of the region, the city of Chula Vista is gearing up to develop 548 acres (221 ha) of waterfront into an ambitious mixed-use destination. “The Chula Vista Bayfront is the largest coastal development on the West Coast, and is already entitled,” said Ann Moore, commissioner of the Unified Port of San Diego. “The scheme is going to include hotels, restaurants and residential elements. We already have developers for the residential component, but we’re looking for development partners for the other areas. There’s going to be a marina, 1,500 homes, at least 2,500 hotel rooms and a 400,000 sq ft (37,000 sq m) conference centre.” “Chula Vista is the 10th-safest city in the US and was ranked in

Representatives of the San Diego/Tijuana mega-region at MIPIM

the top-five for climate,” added Mayor of Chula Vista, Mary Salas. “To the east of the city, 375 acres (151 ha) of land have been set aside for a university, an elite Olympic training centre, and the Millenia office project, which is designed to encourage Silicon Valley firms to come down to Southern California.”

“The Millenia project includes a university, a biotech campus and technology facilities,” said Guerra, whose San Diego-based investment firm is developing the scheme. “We’re targeting LEED Platinum and WELL Building Standard Gold, making us the first WELL-certified scheme in Southern California.”

Tabanlioglu Architects has winning formula TABANLIOGLU Architects

(TA) produces “relevant contemporary architecture across the world”, according to Melkan Gursel, partner with the awardwinning practice. Gursel added: “Size is not important when it comes to the right design in the right context. Our philosophy is to create spaces that integrate with the city. Our aim is to create a better environ-

ment for everyone.” Gursel was speaking to MIPIM News after the concept design for the Husame Koklu Women’s Community and Production Centre in Bayburt won the Civic and Community prize at the Architectural Review’s Future Awards, announced in Cannes yesterday. Tabanlioglu was also successful in the Residential category for its 118 E59th Street residences, de-

Tabanlioglu partner Melkan Gursel

signed to sit on the nexus of the Upper East Side and Midtown in New York. Tabanlioglu Architects’ Beyazit State Library is also a finalist

for a MIPIM award in the category for Best Refurbished Building. The library has already won a number of major awards worldwide.

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2017

MÉTROPOLE EUROPÉENNE DE LILLE VOS PROJETS MÉRITENT UN GRAND TERRITOIRE

DISCOVER THE REAL-ESTATE DYNAMIC OF A GREAT TERRITORY Stand RIVIERA 7 / E1 WEDNESDAY, 15TH MARCH 11:00 Conference by Damien Castelain, President of the European Metropolis of Lille Conference followed by a cocktail party on our stand. 14:00 Grand Angle, a 21st century town-center. 17:00 L’Union - Plaine Images, eco-area and cluster dedicated to images.

THURSDAY, 16TH MARCH 10:00 Euraloisirs, a cluster in complete transformation. 11:00 Tourcoing, the renewal of the town-center. 12:00 Rives de la Haute Deûle, Euratechnologies, a sustainable district and cluster dedicated to digital technologies. 15:00 Ongoing projects in the main Boulevards : Work Lab City. 17:00 Euralille, a hyperconnected business district.

1.2

MILLION INHABITANTS

3rd

BUSINESS DISTRICT IN FRANCE

1st

CONSUMPTION AREA

(WITH 80 MILLION CONSUMERS IN A 300-KILOMETER AREA)

nd 2 REGIONAL

OFFICE MARKET

AND ITS PARTNERS

1st

REGIONAL CONCENTRATION OF INTERNATIONAL GROUP HEADQUARTERS (ANKAMA, AUCHAN, BANQUE ACCORD, BONDUELLE, DÉCATHLON, LA REDOUTE, LEROY MERLIN, LESAFFRE, PAUL, 3 SUISSES…)


mipim

NEWS JASPERS-EYERS ALL-ROUND ACHIEVEMENT

Barco One Campus in Kortrijk, Belgium

AN UNUSUAL circular headquarters for visual-technology company Barco in Kortrijk, Belgium has been designed by Jaspers-Eyers Architects. The 29,910 sq m Barco One Campus project includes 8,000 sq m of office space, 11,230 sq m of research space and 10,680 sq m of multi-functional spaces. Barco One Campus has an array of amenities, including a 450-seat Central Park atrium restaurant with outdoor terrace facing the landscaped garden; the Revo Bar, a series of Coffee Corners and meeting terraces; The Theatre, a 170-seat auditorium; 35 dedicated meeting rooms; a landscaped garden and pond; and a 720-space car park.

UBS ACQUIRES OFFICE COMPLEX IN PARIS SUBURB UBS ASSET Management has acquired the Horizon Defense office in Suresnes, Paris from Deutsche Asset Management via its Real Estates and Private Markets (REPM) business for an undisclosed sum. The multi-let, five-storey complex comprises 16,000 sq m of prime office space and includes a restaurant, cafe, business centre and gym. Built in 2002, the building is located in a western suburb of the French capital, less than nine kilometres from the centre, and has been purchased 55% let. Patrick Jenvrin, head of REPM, France, said: “Our investment comes at an opportune time of low vacancy rates coupled with an improving national occupational market.”

Japan’s student housing sector emerges as ‘big opportunity’

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NGOING reforms to the Japanese higher-education system are offering unprecedented opportunities for private-sector investment in student housing, the president of one of the country’s major real estate developers has said. Tokyo Tatemono’s president and senior executive managing officer, Masami Kamo, said that the student-housing sector was showing huge potential for investors and developers, driven by nationwide reforms designed to attract more foreign students into the country. Kamo added: “National regulation changes mean that universities can do more to lease out space to private companies and this is a big opportunity for us. At the same time, most Japa-

Tokyo Tatemono president Masami Kamo: Japanese universities targeting more overseas students

nese universities are trying to get more students in from overseas. That’s why we’re working on developments in the studenthousing sector.” Kamo added that senior housing

is another promising sector for investment returns: “We are an ageing population and we need more solutions in property. More senior housing will be needed. This type of property is very big in Japan.” Tokyo Tatemono, which is active in a number of sectors across Japan and China, is in Cannes to meet potential co-investment partners from the international market. Kamo said that both China and Japan offered investors a wealth of opportunities across multiple sectors. The company has a long history of operations in China, where it has partnered with residential developer Vanke Group on a number of large projects, including the Chun He skyscraper development in Shenyang, and the mixed-use Binhai project in Tianjin.

Fresh funding round for Infabode

ONLINE real estate research and information platform Infabode will look for £2m (€2.2m) of funding via a fresh finance round this summer, as the company seeks to double the number of content partners it works with and to expand in the US. CEO Matt Partridge said that, after a “phenomenal 12 months” since launching at MIPIM last year, the company was hoping to take its content partnerships from 240 to 500 and its members from 15,000 to 50,000 over the next year. The new funding will enable the company to go from a “high growth startup to an established business”, Partridge added. Meanwhile, Infabode’s newly opened New York office will be expanded and the company will also look to grow its partner and member numbers in Asia and the Middle East. “MIPIM is the perfect place to

Infabode’s Matt Partridge: aiming to double content partnerships

raise awareness,” Partridge said. “In the first half an hour at the show, we met with two new content partners. Our job is to remain

36

a neutral platform and simply to create the best technology we can to allow people to share and access information.”


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BOOTH P-1 G86

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3/10/17 8:52 AM


mipim

NEWS CAR COMPONENTS DRIVE GROWTH IN BULGARIA A BOOMING automotive component manufacturing base is driving industrial property development in Bulgaria, a new report has found. The latest Bulgarian market overview by Colliers International has attributed much of the industrial development taking place in the country to the automotive components sector, which employs some 33,000 people and in 2015 accounted for 3.5% of GDP. The report found that in 2016 a number of companies sought new space in the emerging industrial region in and around the capital Sofia, to the west of the country. Traditionally the automotive manufacturing base of the country has been largely in the south. Development activity has risen significantly in Bulgaria after an almost total standstill. Since the recovery some major projects in the Sofia region have increased the overall supply of logistics and warehousing space with more being added in 2017 including the second phase of the Industrial Park Sofia East (IPSE) scheme.

TRILOGY INVESTS IN FURTHER EXPANSION VALUE-add developer Trilogy has acquired two senior partners as the UK-focused business spearheads a £300m (€342m) expansion beyond central London. The company plans to spend around £300m of equity on assets of between £20m and £50m, focusing on the London fringe and prime regional cities. Current Trilogy schemes include Republic at London’s East India Dock, with investors LaSalle Investment Management, and Great Northern Warehouse in central Manchester, backed by Peterson Group of Hong Kong. Trilogy Property Limited becomes Trilogy Real Estate after the moves.

Jumeriah Central project aims to make Dubai a 24-hour city

Dubai Holding’s Morgan Parker

D

UBAI Holding has launched a new 20year masterplan for a new district in the city and unveiled six key projects for which it is looking for investors at MIPIM. The Jumeriah Central project, which is expected to attract more

than 100 million visitors a year, was initially launched in September in Dubai but Dubai Holding’s COO Morgan Parker said the company had chosen MIPIM for the international unveiling of the project. The mixed-use district, which will cover a GFA of 4.4 mil-

lion sq m, will comprise 75 city blocks, 278 buildings and be home to 35,000 residents. It will be equally split across residential, office, retail and hospitality making it the region’s first truly mixed scheme, according to Parker. “We are using this as a catalyst to create investment in Dubai,” Parker said. “There’s a lot of money that flows out but we are trying to reverse that trend and have other countries invest in real estate and buy real estate in Dubai,” he said. As well as the masterplan, Dubai Holding has also unveiled the first six of 67 projects that will launch in phase one of the scheme, for which it is looking for investors here in Cannes. They include residential, offices, a hotel and a mixed-use block. “Our objective at MIPIM is to find investment partners to partner with us on buildings — we fund the infrastructure,” he said. The new district will focus on creating “24/7 vitality” in a city which can “tend to be a little dead at night”, Parker said.

Take your building to the next level INCREASING efficiency within buildings, controlling access and improving P&L are all key benefits of Schindler’s Port and MyPort transit management systems, which the Swiss engineering services company is demonstrating at MIPIM this week. “Port is our destination control system,” said Thomas Oetterli, CEO of Schindler. “When you are entering a building the system tells you which elevator to take. With this system and a predefined elevator, you can move up to 30% more people in the building so you need 30% fewer elevators which means more space on each floor that you can rent out. So you are not only improving

people-traffic but also the P&L of a building,” he said. And an eco-mode system could help to save up to 30% energy. The system also helps to improve security of access, since it can be used to allow only certain people into buildings. “We have installed Port and MyPort thousands of times and the feedback is that this is a unique system,” Oetterli said. The system is being used in office buildings as well as residential towers, hospitals and shopping centres. “We have started to use it even for smaller residential buildings in some cities where the security of residents is of particular importance,” Oetterli said.

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Schindler’s Thomas Oetterli


Advertorial

Why Barcelona Catalonia? Creating the conditions for social and economic progress

Real estate investment in Catalonia totaled approximately €2.5 billion in 2016. This figure is up more than 26% from the previous year and is an all-time record,. This investment mainly went into purchasing office buildings and shopping centers, with more than €1.6 billion. Nevertheless, the logistics and industrial sector posted the highest growth, up 61%, with a total investment of €144 million. Furthermore, the 2016 data shows a noteworthy prominence of foreign capital, making up 81% of all investment. The outlook is also positive for 2017 and foreign investors are expected to push the weight of Catalonia in Spain up from 20% to 25% over the course of the year. Positive results in all segments (offices, shopping centers, hotels, industrial/logistics and residential) will contribute to this. In this context, Barcelona Catalonia will once again be at Mipim in order to present projects in these areas to international investors. The Barcelona Catalonia booth will give investors a global overview of the main urban-development projects underway in Barcelona and Catalonia along the Mediterranean corridor. These projects are included in five areas: 22@ Barcelona, Eix Llobregat, Eix Besós, Àrea Circuit de Barcelona-Catalonia and Eix Vallès. The Government of Catalonia Minister of Territory and Sustainability, Josep Rull, and the councillor for Architecture, Urban Landscape and Heritage of Barcelona City Council, Daniel Mòdol, will participate in a panel discussion in the official MIPIM program: What are the new urban planning models? (15 March, 10:00-10:45, at Innovation Room, Palais-1). Barcelona Catalonia will also have several private partners present, which are collaborating on urban-development projects in Catalonia. Like every year, the initiative will also participate in a wide variety of forums and events, and hold talks at our own stand Barcelona Catalonia (Palais -1, stand K50):

l Why Barcelona Catalonia? (14 March) l City growth around the riverside of Llobregat and Besós rivers (14 March) l 22@Barcelona. Round table about the innovation district (14 March) l Investment opportunities in economic sectors around the Metropolitan Area of Barcelona (15 March) l Barcelona, merging public space, nature and production (15 March) l CBRE Barcelona Catalonia round table (15 March) l The Mediterranean Corridor (16 March)

Visit us level -1 Stand K50

www.barcelonacatalonia.cat


mipim

NEWS Brexit uncertainty boosts MIPIM’s value to British

UK’s EU exit could lead to closer ties with Asia

U

NCERTAINTY over Brexit in the wake of last year’s referendum means that UK companies need to travel to MIPIM “more than ever”, a British structural engineer has said. Symmetrys’ business development and bids manager Jo Shepherd said that maintaining contact with international developers and investors was crucial as the process of negotiating the UK’s exit from Europe unfolds. Shepherd said: “Nobody knows exactly what’s going to happen in the future. We are at the point where we can’t not be at MIPIM. Over the past two years, we’ve really focused on it as an opportunity and, now that Brexit is coming, we need to be here more than ever.” London-based Symmetrys operates predominantly in the south

T

HE UK’s departure from the European Union could lead to the country being more reliant on Asian and non-EU investment, the chief executive of one the country’s largest city authorities has said. Speaking at a special debate on the fallout from last year’s referendum on Europe, Sir Howard Bernstein, chief executive of Manchester City Council, said that, rather than harming interest from countries such as China, the Brexit vote could lead to more Asian investment in future. Speaking to delegates at the Brexit: Who Benefits? panel, Bernstein said the UK should expect to do more business with Far-Eastern markets, which “tend to look at things on more of a long-term basis”, once it

Symmetrys’ Jo Shepherd: “We need to be here more than ever”

east of England, but has a track record of projects throughout the UK and overseas. The company, which offers consultancy and advice from the earliest stage of projects, including ‘stage zero’, is in Cannes to connect with potential new clients from a range of sectors and markets. Shepherd added that Symmetrys sees particularly growth potential in residential developments, particularly the student-housing and senior-living sectors.

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had left the EU. But Bernstein added that, while the priority was to secure the best possible outcome for the UK, he was afraid that on the whole he could not see “any major beneficiaries from Brexit”. Also speaking on the panel was Jules Pipe, deputy mayor of London, who said that the complications over the future of the Republic of Ireland’s border with Northern Ireland “illustrate what a ridiculous situation the UK is walking into”. He added: “It’s terribly sad to reintroduce the borders that everyone worked so hard to get rid of.” The debate also covered the potential departure of Londonbased businesses in the wake of Brexit, and the likelihood of further nations exiting the European Union.

BNL-BNP Paribas new headquarters Rome, Italy An offices building. The headquarters of an international bank. A complex that is responsible and brings a generous vision for the future. A piece of glass made of textures, rhythms, sequences, scenes, able to translate the daily life of 3.300 employees in a journey that is both urban, personal, intimate and collective. A new building that represents the futurism and the affirmation of the present by creating a strong relation with the surrounding environment thanks to 30.000 square meters of glass and ceramics facades that reflect the changing light of the city of Rome. The design of the new headquarters of BNL-BNP Paribas is particular, innovative, unique.

© Luc Boegly

235 meters in length - 50 meters in height 12 floors - 4 underground levels 43.800 sqm of commercial property 30.000 sqm of glass and ceramics façades 3.300 employees November 2016

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www.breeam.com

Better with BREEAM Driving value through sustainability performance for buildings, communities and infrastructure.

See us on stand

P-1.B76

Follow us on Twitter @BRE_BREEAM #BREEAM

2

million+ registrations

80%

550,000+ certificates issued

market share in Europe used in

78

countries

1060EAM-ADV MIPIM_Ad_h330xw240_AW.indd 1

02/03/2017 15:30


mipim

NEWS

New report shows strong Carter Jonas aims to grow hotel sector in Germany network across Europe

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ONSOLIwith an average rise DAT I O N of 6% to €120 at in the Euthe top-eight hotel ropean locations in Gerhotel secmany. The strongest tor is to continue with growth is forecast a high level of merger for Stuttgart at 18% and acquisition activand Berlin at 13%. ity, especially with inThe report is aimed ternational chains buyat asset managers, ing up smaller chains proper ty owners & Volkers’ in countries including Engel and hotel chains Andreas Ewald Germany, Spain and who want an indicathe UK, according to Andreas tor as to how the market might Ewald, managing partner of En- evolve, Ewald said. “When you gel & Volkers Hotel Consulting. look at other benchmarking reEngel & Volkers’ hotel divi- ports they just look at the past, sion launched in January and but we look at the future and has just published a new report have invented our own crystal that Ewald will be sharing at ball,” he said. MIPIM. The Hotel Market As well as the German report Sentiment Report Germany the company is currently workpredicts that room rates for ing on a European report which hotels in the country are ex- should be launched in the next pected to234_PARIS rise further INN_N1_PIM this year six-to-eight weeks.

EAL estate advisor Carter Jonas is at MIPIM looking to build further alliances with European counterparts after successfully co-operating with advisors in the Netherlands and Ireland. It is also hoping to build on its established business with UK local authorities and work on infrastructure projects. “Working in alliances in Europe has worked very well for us and we hope to create more such tie-ups here and also in the US, where we have built strong connections in the industrial sector especially,” Carter Jonas chief executive Mark Granger said. Carter Jonas has increased its commercial work by around 200% over the past three years, he said, while planning and development has increased by 70%. The Birmingham and

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Leeds offices have also expanded to focus on infrastructure work around (high-speed rail link) HS2 and Network Rail. “We are in discussions with a potential Spanish company and we’d like to find further alliances in Germany, France and other key markets,” he said. “MIPIM is the ideal platform for this and, judging by what we have achieved with our Irish counterpart, these arrangements offer some real opportunities.”

Carter Jonas’ Mark Granger


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mipim

NEWS Yorkshire aviation hub aiming for new heights

A

ERO Centre Yorkshire is look ing forward to the day when Doncast er Sheffield Airport handles eight million passengers per year and 176,000 tonnes of cargo — both targets in its 20-year masterplan. Given recent growth the target looks achievable. Following a 40% increase in traffic Doncaster Sheffield handled 1.25 million passengers in the 2016-17 financial year. Aero Centre Yorkshire, which Sir Nigel Knowles, chairman of Sheffield City Region, described at MIPIM yesterday as one of his organisation’s top three priorities, is based on Doncaster Sheffield Air-

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Collective living project seeks global expansion

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ONDON’s latest approach to co-living, T he Col lective, is aiming to tackle the capital’s sky-high residential prices and create communities in the process. “The idea germinated back in 2010 while I was a student at the LSE, and saw first-hand that there was a lack of decent, affordable properties for young people,” founder Reza Merchant told MIPIM News. Its first development, at Old Oak Common in north London, launched in May providing 550 beds for young professionals. Priced from £220 (€250) per week, the fee includes all bills and over 100 social events each month. “Occupancy is at

port which is one of the two fastest growing airports in the UK – the other is Newquay in Cornwall. The next phases of development will require an investment of around £100m (€114m). The airport, a former military airbase which opened as a commercial facility in 2005, has an almost 3km-long runway and 647 ha of land, half of which is landside, for a mix of commercial and residential development. Potential uses include aviation, cargo, logistics, advanced manufacturing, research and development, as well as leisure, retailing, food and beverage, and hotels. Owner Peel Holdings says it will sell or lease sites or buildings.

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98%,” Merchant said, “and interest in renewals is already high. In London, we have three more projects in the pipeline, in Stratford, Canary Wharf and Borough. Our growth plan is to deliver 20,000 units globally in the next seven years, in response to demand for this kind of accommodation.” Merchant is at MIPIM to explore the concept’s global potential, hoping to ultimately create a network for digital nomads. “We are developing projects in New York and Berlin, and our long-term vision is to create a subscription model of housing which allows people to move around the world,” Merchant said.

FIABCI INTERNATIONAL REAL ESTATE FEDERATION since 1948

Over 97 delegations from 50 countries invite you to join FIABCI Pavilion to: Learn more about FIABCI benefits Do global business networking Promote your activities Attend our events

« L’immobilier de demain sera nécessairement désintermédié, digital et mixte » QUARTUS propose des produits immobiliers au service de l’Homme dans un environnement plus durable, plus ouvert, plus humain, plus mobile, plus diversifié dans lequel le partage et la qualité de vie prennent un sens concret pour une nouvelle urbanité. groupe-quartus.com

Franck Dondainas, Président-Fondateur

« Sharing the best practices worldwide for more business potential » FIABCI

PROGRAM

Come and Visit FIABCI Pavilion Palais des Festivals - 4th floor, P4. B 1

Espace Riviera stand R9.G

44


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work sweet home

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Visit us : Stand R8.D14 LUXEMBOURG

indoor

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indoor

easy access

ecosystem

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high speed connexion

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flexibility

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on site campus

certified breeam excellent

****

assistant

CONTACT : Marc Diver - marc.diver@campuscontern.lu T. : +32 475 28 34 67 campuscontern.lu campus-contern_mipim_full-page.indd 1

2/10/2017 10:36:46 AM


A YEAR OF

With populist politics on the rise in the wake of the Brexit vote in the UK and the Trump election in the US, investors are now having to deal with renewed uncertainty across major European markets.

Netherlands Elections March 15, 2017 The Netherlands is about to elect a new House of Representatives. Mark Rutte’s VVD, which leads the current coalition government, faces a strong challenge from Geert Wilders’ populist PVV and on the eve of the election the latest polling showed the result was too close to call. A PVV victory would raise the prospect of the Netherlands, one of the founders of the European project, leaving the EU.

UK Brexit March 2017 Prime minister Theresa May rose to power in the aftermath of last year’s referendum vote to leave the EU. Although she and the majority of her Conservative MPs opposed Brexit in the campaign, she has pledged to trigger the formal exit process before the end of March 2017, meaning the UK will cease to be an EU member in March 2019.

France Elections May 7, 2017 The first round of France’s presidential election takes place on 23 April, with the run-off due on May 7. The latest polls show centre-left Emmanuel Macron is likely to face right-wing populist Marine Le Pen in the run-off. An unlikely victory for Le Pen would raise the prospect of Frexit, or France’s exit from the European Union.

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UNCERTAINTY Political analysis

Walter Boettcher, chief economist at Colliers International writes: “In the UK, media attention has been centred primarily on Brexit, but this risk to investors is a small part of a much larger risk of wider EU fragmentation and new Eurozone instabilities. Growing nationalism in key countries such as France, Italy and the Netherlands, among others, poses large risks to Donald Tusk’s mission to push forward EU political unity. Many EU members are wishing to re-claim national sovereignty in many areas, including reestablishing national currencies. In fact, the UK’s notification to leave is looking increasingly as confirmation of EU political mismanagement.”

Germany Elections September 24, 2017 A new Bundestag will be elected this year. The latest polling shows Sigmar Gabriel’s social democrat SPD closing the gap on Angela Merkel’s centreright CDU/CSU with the populist and Eurosceptic AfG leading the pack of smaller parties in third place.

Turkey Referendum April 16, 2017 Having secured his position after last year’s failed coup, president Recep Tayyip Erdogan is asking the Turkish electorate to grant him US-style presidential powers, which would allow him to remain in post for two more terms.

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14/03/2017 17:37


mipim

NEWS 200_VAROSLIGET_N2_PIM

WHY VOTE FOR

LIGET BUDAPEST PROJECT

UK’s Crown Estate set to open two regional malls

? T

HE CROWN Estate is preparing to open new shopping centres in Oxford and Northamptonshire in the UK, as it focuses on “quality assets aligning with what retailers are looking for”, said Hannah Milne, the estate manager’s director of regional portfolio. Consisting of 20 centres, of which 17 are retail parks, The Crown Estate’s portfolio is now worth around £2.3bn (€2.6bn), having grown rapidly over the past two years. Milne said Westgate, Oxford — a joint venture with Land Securities — is now 70% pre-let ahead of its autumn opening. The Rushden Lakes shopping and leisure scheme in Northamptonshire is also due to open this summer. “Apart from the anchors, House of Fraser, Marks & Spencer and Primark, we have a lot of smaller units and a large leisure element, all set around the lake,” Milne said. “It’s going to be a very different out-of-town offer.”

BECAUSE Liget Budapest Project will receive BREEAM excellent certifications for all new buildings, and the project as a whole will be certified in BREEAM communities...

...AND WE HAVE THE MOST ROMANTIC LAKE IN HUNGARY.

The Crown Estate’s Hannah Milne: focus on “quality assets”

Of The Crown Estate’s existing schemes, Fosse Shopping Park in Leicester has been undergoing a tenant revamp, with Primark, Office, JD Sports, Pandora and Superdrug recent additions to the well-established centre. Milne said the new operators had helped bolster footfall by 15% since their introduction, with Primark especially attracting a younger consumer to the scheme. Milne added that The Crown Estate’s retail parks had been performing strongly across the portfolio, with click-and-collect helping to drive footfall. She said: “Free parking and easy collection has really helped retail parks, while increasing leisure and F&B has made these all-day trading locations.”

Union buys Grand Central

GERMAN fund manager Union Investment Real Estate has purchased the speculative Grand Central development project at Saint-Lazare station in Paris from The Carlyle Group. The scheme consists of an office property with 23,600 sq m of space on Rue de Londres and Rue d’Amsterdam which should be complete in mid-2019. It will also feature three entrance lobbies, two restaurants, a bar, an auditorium and a green roof. “Grand Central will be one of the most modern business centres in Paris,” said Tania Bontemps, president of Union Investment Real Estate France. “It also benefits from a location that is unsurpassed in terms of transport links. Due to the excellent letting prospects and our confidence in the project, we

www.ligetbudapest.hu 48

decided on a speculative acquisition without pre-letting and rent guarantees.” Designed by Jacques Ferrier Architecture, Grand Central has been under development by The Carlyle Group since 2013. It is aiming for a HQE (Haute Qualite Environnementale) Excellent rating and a BREEAM Very Good certification. Union Investment already owns two business centres in the French capital: the Centre d’Affaires Paris Victoire and the Centre d’Affaires Paris Trocadero.

The Grand Central development project at Saint-Lazare station in Paris


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250_RM ASSET_N1_PIM

FOCUS ON HEALTHCARE REAL ESTATE TUESDAY 14 MARCH 14:00-14:45 - Asset Class room, Palais -1 From sick care to well care: how does rethinking the healthcare industry impact the RE industry? Sponsored by Medical Properties Trust. 15:15-16:00 - Asset class room, Palais -1 Senior serviced residences: what are the opportunities in this fast growing market? Sponsored by Domitys.

WEDNESDAY 15 MARCH

16:30-17:15 - Asset class room, Palais -1 How does public-private cooperation in the RE sector favour better developments in healthcare?

16:30-17:30 - Networking Zone H&T, Palais -1 Healthcare Matchmaking Session, Sponsored by Threestones Capital.

17:45-18:30 - Asset class room, Palais -1 How do patient-oriented technologies change the face of the healthcare sector? Sponsored by CAREIT. Followed by a cocktail in the Hotel & Tourism lounge

EXHIBITORS & PARTNERS

FOCUS ON LOGISTICS & INDUSTRIAL PROPERTY WEDNESDAY 15 MARCH 11:15-12:00 - Asset Class room, Palais -1 Is investment in Catalonia the strategic entry to Europe? Sponsored by Barcelona Catalonia.

THURSDAY 16 MARCH 10:00-11:30 - Asset class room, Palais-1 Why Greater Copenhagen is the growing hotspot within global logistics? Sponsored by Greater Copenhagen. 14:00-14:45 - Asset class room, Palais -1 How do new consumer behaviours reshape last mile delivery?

EXHIBITORS & PARTNERS

16:30-17:30 - Networking Zone H&T, Palais -1 Logistics Matchmaking Session.


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FOCUS ON HOTEL & TOURISM Hotel project showcases - Panel and discussions Organised by PKF Hotel Experts

WEDNESDAY 15 MARCH RESORT & LEISURE AND TOURISM PROJECTS 10:30-10:45 New Trends in Luxury Hospitality Design, Clint Nagata, Founder & Chief Creative Director, BLINK Design Group Pte Ltd

11:15-11:30 Porta Batumi Tower - Georgia, Rengin Möröy, General Coordinator Architect, System Insaat Ltd.Sti.

12:00–12:15 ATMOS – a biomechanical temple of muses by Coop Himmelb(l)au, Chris Müller, ATMOS

10:45-11:00 Hotels, Resorts and Residences Innovative Solutions, René Wilms, CEO Unique Hotels & Resorts AG

11:30-11:45 Eco Estrela - Our paradise can be yours, Piotr Maj, Head of Project Management, GREMI International S.a.r.l

12:15-13:00 Open panel discussion followed by meet and greet of presenters

11:00-11:15 USHUAIA the LUXURY REDEFINED: 5* Life Style Hotels, Jose Matheu, Development Director at Palladium Hotel Group

11:45-12:00 New Project The Dolomites Resort & Wellness, Ing. Roberto Adani and Arch, Riccardo Ballani – Belli Group Italia

13:00–14:00 PKF hotelexperts lunch (networking/pitching area)

RENDEZ-VOUS IN THE HOTEL & TOURISM NETWORKING ROOM, PALAIS -1 EXHIBITORS & PARTNERS

TM

Hotel, Tourism and Leisure

group


mipim

NEWS COULD BREXIT SIMPLIFY PROJECT PARTNERSHIPS? Weston Williamson & Partners’ Christian Bocci

Merger of French retail giants set to create €5.3bn portfolio

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ARMILA and Cardety, two retail property management companies specialising in shopping centres and BREXIT could make easier the retail parks anchored by Carrefour process of assembling complex grocery stores, are to merge. Under projects that combine new infrastructure with privately funded the terms of the proposed deal, Cardevelopment in the UK, according refour would own 42.4% of the new entity, while the other shareholders to Christian Bocci, senior partner of Carmila and Cardety would own of London-based architects Weston Williamson & Partners. 55.3% and 2.3% respectively. The firm, which specialises in The aim is to create a major retail infrastructure work, especially property company dedicated to the station planning, is at MIPIM as development and asset managepart of the London First delegament of shopping centres in France, tion to meet a number of “key Spain and Italy, leveraging the partcollaborators”, Bocci said. “We are looking to broker projects nership with Carrefour, the world’s second largest retailer. that link infrastructure and The new entity, listed on Euronext developers,” he added. “After Brexit the UK won’t have the Paris and with SIIC status, would same transparency rules as the be called Carmila. The combined EU, procurement and commercial portfolio of 205 shopping centres partnerships will be much easier.” and retail parks would be worth 195v2_METROPOLEAIX_N2_N3_PIM

€5.3bn, based on its value as of December 31, 2016. The net asset value would be €2.9bn. Following the completion of a consultation process with trade unions, and subject to signing definitive agreements and gaining certain regulatory approvals, the merger will be submitted for the approval of Carmila and Cardety’s respective shareholders at special meetings this year. As part of its development plan, the new merged entity would proceed with a capital increase of approximately €500m-€600m, which would imply a placement of new shares on the market in the course of 2017. Jacques Ehrmann, chairman of the board of directors of Carmila, said: “After three successful years, marked notably by the completion of the refurbishment programme

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Carmila’s Jacques Ehrmann: “a new five-year phase to deliver shoppingcentre extensions”

of its 194 shopping centres, the deployment of our local and digital marketing strategy for the benefit of our tenants, and active tenant management, Carmila enters a new five-year phase to deliver shoppingcentre extensions”.


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PROGRAMME OF CONFERENCES & EVENTS

Wednesday 15 March 8.00

LEADERS’

12.30

BREAKFAST

Sponsor: Country Garden Pacificview Sdn Bhd By invitation only

Private talks with Dr. Parag Khanna, Director, Hybrid Reality Pte Ltd. How connectivity is reshaping global affairs? Sponsor: Lennar International - By invitation only

1h30

NEW DEAL Verrière Grand Auditorium

8.00 ASIA

Sponsor: Diamond Realty Management - By invitation only

Majestic Hotel

2h

ASIA Market Trends room 45 min (Palais 3)

How innovative is the German RE sector?

14.00 Sponsors: Commerz Real, ZIA

45 min

14.00 Sponsor: Poland Today

Human Capital: the answer to Europe’s productivity problem? What is the growing value of strategic FM to business? In association with: LaSalle Investment Management, RICS, ADI - Registration required

8.30

45 min

TECH New Deal room (Palais 3)

Polska & CEE: closer together or further apart?

8.00

8.30

Majestic Hotel

How can big data boost the RE business?

14.00 Sponsor: Siemens

14.00 How to approach the Japanese market?

What are the trends of cross border transactions in and out of Asia?

1h30

NEW DEAL

15.15 How does technology reshape the RE job market? 3h30

Majestic Hotel

1h30

Salon Croisette (Palais 4)

45 min

BUSINESS New Deal room (Palais 3)

By invitation only

By invitation only

Blockchain: what are the opportunities & challenges 10.00 of peer to peer RE? Keynote address by Alex Gong, CEO, Fosun Property

45 min

TECH New Deal room (Palais 3)

investments

45 min

TECH Innovation room (Palais -1)

45 min

GOVERNANCE Asset Class room (Palais -1)

What are the new urban planning models?

10.00 Sponsor: Barcelona Catalonia

City Prosperity Initiative: how to assess sustainable

10.00 urban development of cities worldwide? Co-organiser: FIABCI

Oslo Investors’ Summit: pawn is the new queen

10.30 Sponsor: Oslo Metropolitan Area

1h

What is the role of sustainable development

10.30 and eco exemplarity in real estate projects? Sponsors: Metropole Nice Côte d’Azur

1h30

Salon Croisette (Palais 3)

Verrière Grand Auditorium (Palais 1)

Italian RE: resilience in Europe

10.30 Co-organiser: Studio Chiomenti

Followed by the Italian lunch - By invitation only

2h

Ruby Room (Palais 5)

2h

TECH Innovation room (Palais -1)

How to build cities together?

11.00 Sponsor: SNCF Immobilier - Followed by a cocktail

Is investment in Catalonia the strategic entry to Europe?

11.15 Sponsor: Barcelona Catalonia

45 min

LOGISTICS Asset Class room (Palais -1)

11.15 Sponsor: Plaine Commune

SOCIETAL DEMAND New Deal room 45 min (Palais 3)

11.15 Where are the blue oceans in Asia?

45 min

ASIA Market Trends room (Palais 3)

1h

NEW DEAL (RE) Creation room (Palais 3)

1h30

Verrière Californie (Palais 5)

Hosting international events: what legacy for citizens?

How to think different in RE?

11.15 Creative session by Soon Soon Soon

Limited seats – Pre-booking requested

45 min

ASIA Market Trends room (Palais 3)

45 min

HOTEL & TOURISM Asset Class room (Palais -1)

1h

NEW DEAL (RE) Creation room (Palais 3)

1h30

TECH Grand Auditorium (Palais 1)

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

Where is the shifting landscape of European

15.15 hospitality investment heading? Sponsor: Swisslife

15.15 Creative session by Soon Soon Soon

Limited seats – Pre-booking requested

FINALS

16.00

Followed by a networking event until 19:00 Global RE Tech Partner: MetaProp NYC Sponsor: BNP Paribas Real Estate Partners: Holland PropTech, Impulse Labs, Paris&Co, Swiss PropTech

45 min

ARCHITECTURE New Deal room (Palais 3)

45 min

AMERICAS Market Trends room (Palais 3)

How to transform and re-use buildings

16.30 almost to infinity?

Canadian funds: which approaches, which strategies

16.30 for the RE industry?

Sponsor: Metropolitan Montreal Group

Sponsor: Threestones Capital

16.30

1h

HEALTHCARE Networking zone (Palais -1)

1h

Ruby room (Palais 5)

2h

AMERICAS Asset Class room (Palais -1)

2h

TECH Innovation room (Palais -1)

45 min

ARCHITECTURE New Deal room (Palais 3)

How does Sweden develop innovative urbanisation?

16.30 Sponsors: Invest Stockholm Business Region, Business Region Goteborg, City of Malmö

What are the next investment opportunities

16.30 in Brazilian tourism? Sponsor: MINTUR

Connected building: how does innovation provide

16.30 value creation potential for real estate? Sponsor: Schneider Electric

17.45 How to think in advance the cities of tomorrow?

What is the investment horizon across the US RE market?

17.45 Sponsor: HAP

45 min

AMERICAS Market Trends room (Palais 3)

20 years of AFEX: what are the lessons to be learned

Poland: a development success story

12.30 Sponsor: Polish Embassy - Cocktail-lunch - By invitation only

15.15 country in the world being transformed?

How to think different in RE?

ASIA Market Trends room 45 min (Palais 3)

10.00 The evolutionnal patterns and motivations of Chinese

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TECH Innovation room (Palais -1)

Building India: how is the second most populated

Brazilian Breakfast

Ruby room (Palais 5)

2h

The future of money, happiness and mobility

14.00 Sponsor: Schindler

2h30 Gray d’Albion Hotel

Russian Breakfast

Partners’ sessions

1h30

TECH Asset Class room (Palais -1)

18.30 from across the planet?

Sponsor: AFEX - Followed by a cocktail

Session certified by the Continuing Professional Development (CPD) Certification Service. Please validate your participation to gain your CPD point.

1h

Ruby room (Palais 5)

Programme as of March 9th 2017, may be subject to change

09/03/2017 10:32


mipim

NEWS BREEAM DREAM FOR NEINVER NEINVER, Europe’s secondlargest operator of outlet centres, and the largest in Spain and Poland, has completed BREEAM In-Use recertification of all the outlet centres it manages for a minimum of two years. The company said that scores rose at 92% of the centres, reinforcing its commitment to ongoing improvement. Neinver is the first operator to earn BREEAM In-Use certification for its entire European outlet portfolio in 2013. The re-certification process involved assessing 18 centres in 2016 and early 2017.

TH pledges 30% energy saving across global holdings by 2030

T

H REAL Estate has committed itself to reducing energy use in its $68bn (€64m), 12.4 million sq m global equity portfolio by 30% by 2030. The reduction will be based on a 2015 baseline, and energy use will be measured by each asset’s use of kilowatts per hour, per square foot. TH Real Estate, an affiliate of Nuveen, the investment management business of TIAA, said the pledge responds to and supports the ambitious goals for sustainable real estate established at the 21st annual Conference of Parties (COP 21) held in Paris in September 2015. “This target is in line with current industry interpretations of climate-change science, and Neinver’s Coruna The Style Outlets 220_WWIRE_N2_PIM means our business is playing its in Spain

TH Real Estate’s Abigail Dean: “we will continue to review our targets”

part in the global movement to limit global warming to 2°C and strive towards 1.5°C, as agreed

54

in the Paris Accord. Over time, we will continue to review our targets to ensure they meet global best practice,” said Abigail Dean, TH Real Estate’s head of sustainability. Real estate is responsible for about 40% of global carbon emissions through onsite fuel usage, such as gas for boilers, and the use of electricity and other sources of energy. TH Real Estate said that implem ent i ng su st a i n a bi l it y measures across its portfolio aligns with its view that being stewards of the environment can produce attractive longterm returns, while also contributing to positive outcomes for the economy and the wellbeing of individuals and communities.


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A DEDICATED CLUB TO MAKE THE MOST OUT OF YOUR 1ST MIPIM! In exclusivity for you: • Trained staff to answer all your questions • Special tips on how to connect effectively with other participants • Interactive programme and demo sessions of our tools • Complimentary breakfast and lunch

WHERE? Rendez-vous at the 1st Timers HQ next to the Registration Area, Gare Maritime

WHEN? 13-16 March 2017, from 09.00 to 19.00 17 March 2017, from 09.00 to 13.00

MAKING IT THROUGH YOUR 1ST MIPIM

has never been so easy and enjoyable. Do not hesitate to join us!

EVENTS SCHEDULE (14-15-16 MARCH) 09.00

Power breakfast

09.30

“Discover what MIPIM is all about”

10.00

“A beginners guide to using our networking tools: getting the most from our mobile app and online database”

11.00

“Discover what MIPIM is all about”

11.30

“A beginners guide to using our networking tools: getting the most from our mobile app and online database”

14.30

“Discover what MIPIM is all about”

15.00

“A beginners guide to using our networking tools: getting the most from our mobile app and online database”

17.00

Success Stories by our Pioneers : The do’s & don’ts of having a great 1st MIPIM.

AND ALSO

HAPPY HOURS OPEN TO ALL!

Join us in the 1st TIMERS HQ on 14-15-16 March from 17:30


mipim

NEWS Scottish cities boosted by working together

AXA IM buys landmark Brisbane office tower

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T

COTLAND’S seven fundamentals are sound, we’ve cities — Aberdeen, invested a lot in infrastructure Dundee, Edinburgh, and we have universities in the Glasgow, Inverness, top 100 in the world.” Perth and Sterling — “Transport links are better extol the benefits of co-operation with more flights now coming and are again attending MIPIM to Scotland,” Perth and Kincollaboratively as the Scottish ross council investment manCities Alliance. ager Serge Merone said. “Public “We collaborate to attract in- partners are very supportive and ward investment,” said Inver- there is good political support ness-based Stuart Black, direc- with the Scotland Office and the tor of development, Enterprising Scottish government working on Highland. inward investment.” “The collaboration between the cities is helpful because we can cross-promote,” Black said. Despite the prospect of Brexit and the possibility of a second referendum on Scottish independence Black said that Scotland remains an attractive des- Scottish Cities Alliance’s Stuart Black (left) Serge tination. economic Merone and Kenny Macinnes. 243_RM“The NEWS_N1_PIM

HE SYDNEY-based real estate asset management subsidiary of AXA Investment Managers has secured the acquisition of a major office building in Brisbane on behalf of a large South Korean pension fund as part of a strategy to increase its operations in South East Asia. Eureka-Real Assets, the Australian subsidiary of pan-European asset AXA Investment Managers-Real Assets, has completed the purchase of the Green Square South Tower for the pension fund client, which has not been named. The five-storey campus-style building is made up of 17,252 sq m of office space and 361 sq m of retail, within the Green Square district of the city. Eureka was formed in September last year after the opening of an office in Seoul in 2015 as part of

a drive to increase AXA’s client base in Asia and open up Australia to potential Asian investors. Commenting on the strategy, AXA’s head of business development in South Korea Cho Yun Seok said: “We have been committed to building a local presence and developing our customer base in South Korea since we opened the office in 2015. This acquisition is a strong endorsement of the team’s effort and we now have an extremely strong proposition for South Korean institutions investing both in the Asia Pacific region and across the rest of the globe.” AXA IM-Real Assets operates in 24 countries through 15 offices globally, managing real estate assets as well as equity and debt. At the close of 2016 the company had assets of €70bn under management.

ADVERTISE NOW! The best way to reach the biggest MIPIM audience DAILY NEWS The only official onsite publication, available in the Palais and delivered to hotels in Cannes and the surrounding area

ONSITE Optimise your presence and make sure your company is the one delegates remember

ONLINE Maximise your visibility before, during and after the event

Contact laurianne.dicecca@reedmidem.com for an advertising strategy that meets your needs

56


256_RM MIPIM UK_N1_PIM

Shaping and connecting UK property

The UK Property Marketplace 18-19 October 2017, London Olympia mipimuk.co.uk


mipim

NEWS New plans for Croydon will maintain identity

London comes first in CBRE investor survey

C

MIPIM© is a registrated trademark of Reed MIDEM - All rights reserved

ROYDON is perfectly poised to benefit from the continued expansion of London as investors and occupiers seek new areas for growth potential, the chief executive of the borough council has said. London Borough of Croydon chief executive Jo Negrini said that sustained population growth and overheated prices in the capital mean that “London needs Croydon more than ever”. The borough has seen a transformation over the past decade, with a wave of developments that are set to continue this year and in 2018, when Westfield and Hammerson are due begin a major new shopping centre scheme, following numerous office and residential developments. Negrini said that the priority

F

OR THE sixth consecutive year, London has been ranked as the most attractive European city for real estate investment, according to CBRE’s annual Investor Intentions Survey. Published at MIPIM today. 17% of respondents cited London as their preferred destination for real estate investment. Berlin jumped to second place in 2017 from fourth in 2016. Availability of product and pricing of assets were considered the greatest obstacles facing investors. This is reflected in the results for some of the gateway cities in Europe, with Hamburg, Milan and Munich dropping out of the top 10, and Paris retaining a top-five position as one of Europe’s most attractive cities. Oslo and Stockholm were new entries in the top 10 most attrac-

London Borough of Croydon chief executive Jo Negrini

was to “restore Croydon’s reputation” and maintain its identity as a distinct area outside the capital, by encouraging unique arts and cultural developments. She said: “Croydon has its own identity, and arts and culture is very important in that. The jewel in our crown will be the College Green development and the Fairfield Halls which will be the destination for arts and higher education as well as bringing 2,000 new homes.”

tive investment cities, reaffirming the strong investor interest in the Nordics. Germany retained the top spot as the most attractive country for real estate investment in EMEA, preferred by 22% of respondents in the CBRE survey. The UK (20%) was the second most popular country and both Germany and the UK have increased in popularity from the previous year, up from 17% and 15% respectively in 2016. Investors value their relatively high liquidity and transparency. While 2017 will be an eventful year, with several major elections in Europe, investors’ focus appears to be more concentrated on the economic climate rather than geo-political events. The most frequently cited risk for 2017 was “faster than expected interest rate rises”.

2017 Guide The world’s property Who’s Who Pick up your copy at the registration area – gare maritime

A year-round networking tool 58


070_CITYOFWARSAW_N2_PIM

GROW WITH

WA R S AW MEET WARSAW AT MIPIM 2017 STAND NUMBER R8.D1 14-17 march 2017 Our Partners at MIPIM 2017

MIPIM.NEWS_240x330mm.indd 1

http://www.um.warszawa.pl/en | www.mapa.um.warszawa.pl

10.02.2017 10:41


mipim

NEWS Schroder trust acquires office property in Paris

S

CHRODER European Real Estate Investment Trust (SERE) has bought a multi-tenanted office property in Saint-Cloud, Ile-de-France, Paris, for €30m. This is SERE’s eighth acquisition in selected liquid and established western European growth cities. The company has invested €185m to date at a net yield of 6.3%. Let to 12 tenants, the 15,800 sq m Saint-Cloud office building is part of a 65,000 sq m complex. SERE’s plan for the asset is to maximise income returns, stabilise the existing rent roll and grow rents over time. The new Grand Paris public transport connection will be completed alongside the building in 2025, which is expected to provide improved accessibil245_RM BUS_N1_PIM

Apleona GVA secures Turkish retailer deals

S

ity to this part of Paris. SaintCloud is a mixed-use office and residential area. SERE fund manager Tony Smedley said: “The Ile-de-France region is growing more quickly than the domestic market and this acquisition demonstrates our ability to identify assets that are accretive to the income profile of the company, as well as the competitive advantages afforded to us through our well-established presence in the French real estate market.”

ERV ICES provider Apleona GVA has won contracts for consultancy services, letting, and property management for retail projects and for specialist retailers in Turkey with a combined size of 80,000 sq m in sales space. As part of these mandates the real estate consultant will prepare the concept for the future tenant structure of three shopping centres that are currently in construction, and will be responsible for leasing out the retail areas. The three projects include the Bursa Nilufer Park Arena in Bursa in northwestern Turkey, scheduled for completion at the end of 2017, and the Koy Zekeriyakoy in Istanbul, a mixed-use complex combining residential apartments with 15,000 sq m of

SERE’s new acquisition in Saint-Cloud, Ile-de-France

sales space. The third – and largest – project is the Rize Shopping Centre located in the northeast in Rize on the Black Sea coast. Apleona GVA is currently responsible for preparing the concept for the retail spaces at Rize and for leasing them out. Following the completion of the centre in 2019 the firm will also take on the project management of the centre. At present Apleona GVA provides consultancy and management services for 13 shopping centres and large mixed-use schemes in Turkey. In Europe, Apleona GVA currently looks after 114 shopping centres and specialist retail centres in Germany, Great Britain, the Netherlands, Switzerland, and Turkey on behalf of fund managers, investors, and developers.

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FOR ALL INFORMATION Tel.: + 33 (0)4 92 98 71 78 From 9.00 to 19.00


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PROGRAMME OF CONFERENCES

INNOVATION ROOM WEDNESDAY 15 MARCH

EXPLORE THE MIPIM INNOVATION FORUM, a pavilion gathering all innovation stakeholders to showcase the most innovative solutions and practices. • Over 60 exhibitors and partners

NETWORKING EVENTS & ROUND-THE-CLOCK PROGRAMME with expert panels (technology and real estate leaders), startup competition finals.

10:00 – 10:45 What are the new urban planning models Sponsor: Barcelona Catalonia 11:00 – 13:00 How to build cities together? Followed by a cocktail Sponsor: SNCF Immobilier 14:00 – 16:00 The future of money, happiness and mobility Sponsor: Schindler 16:00 – 17:30 Startup Competition Finals Grand Auditorium (Palais 1) 16:30 – 18:30 Connected building: how does innovation provide value creation potential for RE? Sponsor: Schneider Electric 17:30 Innovation Happy Hour & Press Conference Grand Auditorium Foyer (Verrière)

Located in level -1

EXHIBITORS & PARTNERS

D r o N o Tec


mipim

NEWS Leeds and Bradford team up to become better together

L

EEDS and Bradford are coming together at MIPIM to promote the virtues of two UK cities that are closely entwined by financial services, youthful demographics and recent, major injections of retail investment. The Leeds region as a whole has attracted £1bn (€1.15bn) of investment in retail alone and the city is building its residential offer as part of an ambition to double the size of the core city, Leeds City Council chief executive Tom Riordan said. This in part will be based around the HS2 rail link work and the South Bank area of Leeds, where Riordan said a “Northern European model” of family city-centre living will be encouraged. “Leeds is in the centre of the

Tom Riordan of Leeds and Kersten England of Bradford are promoting a joint vision

UK, linked with the M62 and M1, and perhaps we haven’t made enough of that,” he said. “Our young demographics also mean we have attracted a number of tech-based companies and our private sector jobs growth has been the highest outside London.”

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Meanwhile the neighbouring city of Bradford is also enjoying a renaissance after a long delay before its Broadway shopping centre was completed. Meyer Bergman is currently adding a cinema and F&B hub to the scheme, while the local authority is encouraging residen-

62

tial to build up around an area which has become populated with independent stores, restaurants and night life. Bradford Council chief executive Kersten England said that the two cities presenting together reflected their desire to play to their joint strengths of a youthful demographic, strong educational and technology backgrounds and close business links. “I think us coming together is quite symbolic,” she said. “We are very close but a few years ago we were worlds apart. However, we want to develop our residential, make use of our joint business ties and get the message out that, in Bradford especially, we have a huge number of SMEs involved in importing and exporting all over the world.” Leeds is also bidding to become a European City of Culture in 2023, capitalising on its established arts heritage and as part of this, Riordan said that encouraging more hotel development is a priority.


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192_BUSINESS IMMO_N2_PIM

made in real estate

Wednesday, Day 2

We’ll always be there for you businessimmo.com PUB_BI_GOBELET_MIPIM_NEWS.indd 2

07/03/2017 10:06


258_RM MIPIM PROPTECH_N1_PIM

October 11, 2017 – Convene, 117 W 46th Street, New York The premier real estate technology event in North America, in partnership with METAPROP NYC

Share, learn and network to build the future! +40

speakers

+100

Join the conversation

tech companies

www.mipim-proptech.com #MIPIMPROPTECH @MIPIMWorld

Partners 2016

500

attendees

+15

countries


PROJECT NEWS ECO-CAMPUS HUBERT REEVES, MONTREAL, CANADA

mipim

 EW HOSPITAL AND MENTAL HEALTH BISPEBJERG, N COPENHAGEN, DENMARK

Offices — Presented by: Technoparc Montreal Technopark Montreal’s Eco-campus Hubert Reeves is a C$225m project of 10 green and intelligent buildings providing total floor space of 750,000 sq m adjacent to the Airport of Montreal and a new 42 ha regional natural park. The work is scheduled to begin in April 2017 for occupancy in July 2018. The wooden structured building will be both green and intelligent and is designed to provide 72,000 sq m of floorspace, superior energy performance, state-of-the-art environmental technologies and LEED certification.

Healthcare — Presented by: The Capital Region of Denmark The €540m New Hospital and Mental Health Bispebjerg project in Copenhagen results from the merger of two hospitals and psychiatric facilities which are currently dispersed. The hospital must operate at full capacity throughout the construction period. The new hospital will bring together modern hospital functions, advanced hospital logistics, innovative architecture and cutting-edge technologies and will also become one of the leading psychiatric research facilities in Denmark. The project will comprise 128,000 sq m of newly built space while 37,000 sq m will be refurbished. A laboratory and logistics building, a general hospital building and mental health centre are currently being planned and renovation of the existing buildings of Bispebjerg Hospital will begin in 2022. The project will create business opportunities for large contractors in the construction industry and is scheduled to be completed in 2024. Construction will be financed by the Danish Government’s Quality Fund and The Capital Region of Denmark.

OCTANT SEXTANT, LEVALLOIS-PERRET, FRANCE

S TUTTGART CENTRAL STATION MODERNISATION (BONATZ BUILDING), STUTTGART, GERMANY

Offices — Presented by: Gecina The Octant-Sextant development will be situated close to the entrance to Paris near Neuilly, at 2-3 quai Charles Pasqua, Levallois-Perret. The development will strike a balance between the Parisian lifestyle and some of France’s biggest business locations, because the district offers an unrivalled mix of uses. Located on the banks of the Seine, the development’s two quayside buildings each reach 10 storeys with one providing 17,500 sq m and the other 20,100 sq m. Due to open in April 2018, they provide a range of spaces with atriums, several restaurants, a gym, a co-working facility and a VIP hall. Both will have HQE accreditation.

Mixed-use — Presented by: Deutsche Bahn (DB) Modernisation of the historical building at Stuttgart’s central train station will commence in 2018. The building, also known as Bonatzbau (the Bonatz building), was designed by German architect Paul Bonatz nearly 100 years ago and it is listed on the register of historic buildings. Its modernisation will include provision of a new supporting structure, additional floors for hotel use and will utilise new building technologies and sustainable sources of energy. The project will cover an area of about 36,750 sq m. However, designers Ingenhoven Architects, have been careful to retain the distinctive look of the building. Remodelling the Bonatzbau will take approximately three years with opening scheduled for 2021.

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PROJECT NEWS HYDERABAD COMPLEX, HYDERABAD, INDIA

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ECODISTRICT PROJECT, MILAN, ITALY

Mixed-use — Presented by: Blocher Partners In a competition, participants were challenged to develop a mixed-use masterplan to provide this slightly sloping plot, which covers 60,000 sq m, with residential areas, offices and parking space. The task is to create condensed structures on a pleasant scale for residents. Developer Phoenix Group’s concept concentrates office space in a distinctively arranged structure facing the street, while the 60 sq m to 90 sq m flats are located in U-shaped building structures. Green courtyards are reserved for recreation. Cross-connections and a centrally arranged boulevard make the space open while simultaneously dividing the area.

Urban development — Presented by: Palladium Group EcoDistrict Project will provide 2,500 sq m of commercial space, 7,500 sq m of offices, 11,714 sq m of residential including student housing and residences for the elderly, and tourism space of 10,000 sq m. Palladium Italia and Mazzalveri & Comelli, are co-owners and sponsors of the development. The project has local planning approval and an agreement has been negotiated enabling the architectural design phase to commence which will enable a construction permit to be obtained quickly. The project has good links to Turin and Venice, as well as to Linate and Malpensa Airports, and to the high-speed railway station and the Expo 2015 site, which is being redeveloped to create a city of science.

AKASAKA INTERCITY AIR, TOKYO, JAPAN

 ELVAL DEVELOPMENT, BELVAL (ESCH-SUR-ALZETTE B AND SANEM), LUXEMBOURG

Mixed-use — Presented by: Nippon Steel Kowa Real Estate Co Akasaka Intercity AIR is a multi-use property project in an international area near embassies and major hotels. The scheme, which will open in August 2017, occupies a 1.6 ha site and will have a gross floor area of about 178,000 sq m. Centred on high specification office space, the property will also provide globalstandard conference halls as well as medical and retail facilities, residences and childcare, along with a large-scale green space that will occupy more than 50% of the total site area. The developer, Nippon Steel Kowa Real Estate, hopes to create a comfortable city in which people will want to work and live.

Urban development — Presented by: Agora Belval will create a new urban district on a former industrial site of 120 ha. The area has been evolving since 2000 and combines uses such as employment, study, research, living and recreation. Belval is also home to the University of Luxembourg, numerous research facilities and public institutions. More than 596,000 sq m is complete or under construction which represents 44% of the project. The new urban district is one of the most ambitious urban development projects in Europe. One special feature is that it retains parts of the former industrial site which will be integrated into the new concept. Development organisation Agora and a large number of property developers and investors have collaborated with the state of Luxembourg and the municipalities of Esch/Alzette and Sanem to bring the new city quarter to life. The project will provide homes for up to 7,000 people while 20,000 people will be able to work, do research or study in Belval.

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PROJECT NEWS GALERIA LIBERO, KATOWICE, POLAND

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DREAM ISLAND, MOSCOW, RUSSIA

Retail — Presented by: Echo Investment The 45,000 sq m Galeria Libero will provide Katowice with more than 150 shops, numerous restaurants, cafes, clubs, a cinema multiplex, squash and badminton courts, a fitness club and a billiards club. Libero is being developed on Tadeusza Kosciuszki Street in Katowice. Its opening is planned for the spring of 2018. Libero is claimed to be the only place in the region to have such an extensive sports and recreational offer. It also includes a modern city square which features fountains, an amphitheatre, a skate park, an ice-rink as well as places for recreation, stationary games and other outdoor activities.

Leisure — Presented by: Regions Group Dream Island is an entertainment complex which will open in 2018. The allseason indoor theme park, located in the south of Moscow on a 100 ha site, will contain several themed areas filled with attractions — many of them unique in Europe. The project will include an indoor park of about 280,000 sq m to enable all-year entertainment. Dream Island theme park visitors will bring popular cartoon stories to life and more than 40 different rides will cater for different age groups. A city walk, with dining, shopping and entertainment areas, will be a key feature of the Dream Island project. The project also includes a 55ha landscaped park, a multifunctional concert hall, a 4-star hotel, multiplex cinema, an embankment with a 2km promenade, cafes and restaurants, a yacht club, a river cruise port, a sailing school for children and other infrastructure.

 ARC DE L’ALBA, CERDANYOLA (BARCELONA P METROPOLITAN AREA), SPAIN

HAGASTADEN, STOCKHOLM, SWEDEN

Urban development — Presented by: City of Stockholm Hagastaden is one of Stockholm’s largest urban development projects and by 2025, the 96 ha area lying between the city of Stockholm and Solna and beside The Royal National City Park, will have become a new neighbourhood with a mixture of apartments, workplaces, cultural attractions, green areas, worldleading research and highly specialised medical care. The City of Stockholm identified the area for urban development 15 years ago. At the same time, Karolinska Institutet was developing an idea for a centre of bio-scientific research. This prompted the cities of Stockholm and Solna to jointly invest in creating a new area. By placing segments of the European highway E4/E20 and the Vartabanan railway in tunnels, the area is being developed and transformed into a vibrant area with just over 6,000 apartments, and approximately 50,000 workplaces of which 14,000 will be in Stockholm. Hagastaden will also be integrated with the New Karolinska Solna University Hospital, a completely new university hospital which opened late 2016. A budget of more than €7bn has been allocated for the project which is scheduled to complete in 2025.

Mixed-use — Presented by: Incasol Parc de l’Alba is located in the metropolitan area of Barcelona, capital of the Catalonia region. This project provides 640,000 sq m of land for innovative companies worldwide. Parc de l’Alba is becoming one of the most advanced science, technology and business platforms in Europe. All of this activity centres on the Alba Synchrotron, regarded as one of the most important research facilities in the Mediterranean region. This is already up and running and will help advance nearly all areas of knowledge and its presence will make Parc de l’Alba a significant concentration of public and private research institutions. In 2015, Catalonia was home to 6,500 foreign companies, received €4.8 bn in foreign investment and exports amounted to €64 bn. A recent Financial Times report on the most attractive European locations for future investment named Catalonia as the best Southern European Region of the Future 2016-2017.

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PROJECT NEWS ESAS 10 BURDA SHOPPING MALL, BALIKESIR, TURKEY

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DAAN MOGOT CITY, JAKARTA, INDONESIA

Retail — Presented by: Esas Properties Esas 10 Burda is a shopping mall located in Balikesir, Turkey. Due to open in 2018, the centre has approximately 150 stores and will provide a diverse range of shopping categories and a full range of brands. With a total area of 240,000 sq m, Esas 10 Burda comprises: a 39,433 sq m shopping area, 4,145 sq m dining area with cafes and restaurants, a 2,000 sq m entertainment centre and 2,500 sq m cinema complex with eight movie theatres. The shopping mall has 1,800 parking spaces. The estimated cost of the project is $100m (€93m).

Residential — Presented by: CCCG – Planned opening date: end 2016 Daan Mogot City is one of the biggest residential parks in Jakarta. CORE (CCCG Overseas Real Estate) and co-developer China Harbour are developing 11,000 units with a total area of 545,000 sq m on the 16 ha site located to the south of the Daan Mogot Street. The $790m project will be built in four phases over 12 years. The pre-sale period for phase 1 started in December 2016. The developers are reserving 60% of the land as a park and for facilities. Externally, the buildings will have full glass facades.

INVERNESS AIRPORT BUSINESS PARK (IABP), INVERNESS, UK

THE GRAND, LOS ANGELES

Mixed-use — Presented by: CCCG The Grand, Los Angeles, is an iconic, mixed-use project in downtown Los Angeles with best-in-class development partner, Related Companies. Scheduled to open in 2022, the project, which will provide a total of 153,290 sq m, will comprise a luxury lifestyle Equinox Hotel containing 305 rooms and state-of-the-art fitness and spa facilities. There will also be more than 18,580 sq m of retail, restaurant, and entertainment space, 128 “ultra-luxury” condominiums, 301 superior, five-star serviced apartments operated by Related Rentals, a diversified property developer, owner, and manager. World-renowned architect, Frank Gehry, will lead the design, to ensure that the development achieves an iconic and timeless status among other global cultural destinations.

Offices — Presented by: Scottish Cities Alliance Situated six miles east of Inverness, the UK’s most northerly city, Inverness Airport Business Park (IABP) is located beside the region’s main hub airport, alongside the A96 and nearby the A9 trunk road. A new railway station on the main Inverness to Aberdeen line is due to be completed at IABP in 2018. IABP is a planning approved and masterplanned mixed-use commercial property development. The project has 111 ha of land available for occupancy across four key development zones: phase 1 of the scheme; a hotel; airside development; and railside development. Leasehold design-and-build packages are available and plots can be purchased on long leases for self-build development. Tier 1 Regional Selective Assistance (RSA) may be available through the developer’s partner, Highland & Islands Enterprise (HIE). IABP is a joint venture between Moray Estates (ME), Highlands & Islands Airports Limited (HIAL), Highlands & Islands Enterprise (HIE) and has support from The Highland Council (THC).

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PROJECT NEWS NORTH SHORE, NEWCASTLE UPON TYNE, UK

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DOCKS BRUXSEL, BRUSSELS, BELGIUM

Residential — Presented by: Adderstone Group 9 North Shore is a landmark residential development proposed for the Quayside in Newcastle upon Tyne by property developers, Adderstone Group. The scheme, which will have a total area of about 9,290 sq m, is located on one of the last remaining undeveloped plots on Quayside — Plot 12 — which is close to a number of world-famous attractions and venues. This residential scheme comprises 130 two-bed apartments each of which has floor-to-ceiling windows providing views of the Tyne, including the city’s historic bridges, Baltic Centre for Contemporary Art and The Sage. North Shore’s profile incorporates five towers, varying in height between 10 and 16 floors. The project will also have private rooftop gardens for upper level apartments, about 160 car parking spaces, private landscaping for residents, lift access to all apartments. Following a start on site scheduled for end-2017, the project is expected to be completed in 2019.

Retail — Presented by: TPF Engineering Docks Bruxsel is a new €210m retail district which is being developed on a 4 ha waterside site in Brussels. The project has six separate buildings with three entrances giving access to four levels of shopping which are connected by covered circulation areas. A three-level car park with 2,200 parking places is planned. While the complex includes 25,000 sq m of retail space which was opened in October 2016, two buildings will be devoted to leisure and wellness activities as well as to staging events.

KRONLOB ISLAND, COPENHAGEN

VESSE COMMERCIAL EXTENSION, TALLINN, ESTONIA

Mixed-use — Presented by: Uus Maa Property Advisors Developer Estate Paper’s mixed-use building, Vesse, will expand an early largescale hypermarket in Tallinn’s largest suburb, Lasnamae. With 7,000 sq m of space currently leased, it houses a furniture and home appliances brand and it is located at one of east-Tallinn’s busiest traffic intersections. Design work initiated in 2010 will increase the size of the property to 21,000 sq m of retail, logistics and modern offices. It will be possible to realise the project in stages. The first phase will be the construction of a new facade without interfering with the existing tenancies. The second phase would expand and refurbish the existing building. The property is surrounded by retail, logistics and industrial properties but nearest is a retail area with hypermarket, major DIY store and cash-and-carry operators. The property is to be sold at €4.5m, reflecting a yield of 6.5% on the existing, below-market cash flow.

Urban development — Presented by: CPH City & Port Development Kronlob Island will be an entirely new island in the existing Kronlob water basin in Nordhavn in Copenhagen. CPH City & Port Development, Nordkranen and Pension Danmark Ejendomme are developing the island to serve as a steppingstone between two new neighbourhoods in the future city district and it will divide the harbour basin into a number of intimate canals. Kronlob Island, due to complete in early 2020, will include a three-level underwater car park, two urban spaces immediately adjacent to the water, three new bridges and a housing scheme surrounding an intimate green heart. The project will create a land area of 9,500 sq m on which 24,500 sq m of floorspace will be developed.

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PROJECT NEWS LES JARDINS DE L’ARCHE, PARIS-LA DEFENSE, FRANCE

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NOWA HUTA OF THE FUTURE, KRAKOW, POLAND

Mixed-use — Presented by: Paris La Defense Jardins de l’Arche will help to make France’s premier business district, Paris La Defense, a tourist and leisure destination. Public development agency EPADESA’s development will link the business district from Terrasses de Nanterre towards Boulevard Pesaro and then to Boulevard de La Defense. The Belvedere de la Grande Arche will be reopened during 2017. U Arena — a covered events space capable of housing 40,000 spectators — will also open as well as associated shops and the CitizenM boutique hotel, which will all draw numerous visitors. The district already enjoys strong transport links with Greater Paris and these will be reinforced by the completion of the EOLE and Grand Paris Express networks. More than 1,000 homes including 278 student dwellings, will be built, the first new homes built in La Defense for 30 years which, along with the launch of IESEG and the opening of a promenade, les Jardins de l’Arche will make La Defense into a day- and night-time destination.

Urban development — Presented by: Krakow Nowa Huta Przyszłosci Nowa Huta of the Future, one of Poland’s largest investment projects, is aimed at regenerating over 600 ha of land in Krakow. The investment is to be carried out by the Municipality of Krakow and the Małopolska Region and the project has four key elements: a science and technology park; a logistics centre providing an inter-modal transport terminal; Błonia 2.0, a space for outdoor shows or performances; and Przylasek Rusiecki, whose reservoirs and hot springs provide a leisure and sports destination. The project is designed to create a synergy effect combining business, research and leisure. The project also provides investment opportunities in the newly developed Economic Activity Zone and a special area devoted solely to life science businesses. The main goal of the project is to launch regeneration processes in the area and stimulate urban development based on smart city solutions.

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FEATURE FOCUS ON FRANCE

France sets innovation benchmarks

As more than 20,000 delegates descend on Cannes this week, France can expect the evolution of its own real estate industry to come under the spotlight, as property players look for fresh answers to the challenges ahead. Isobel Lee reports

In the future, new buildings will be required to produce more energy than they consume Virginie Houze

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HERE is nothing new about firms exploring innovation to maintain a competitive edge, but the term has a particular importance at this year’s MIPIM, where technology, sustainability and connectedness are taking centre stage for the first time. “The theme of MIPIM 2017 — a new deal for real estate — sets the tone for the key global challenges that will impact the real estate industry in the years to come,” says Filippo Rean, director of Reed MIDEM’s real estate division. In this context, France’s own efforts to anticipate the future are likely to come under scrutiny, thanks to the impressive range of projects on display, from Bouygues Immobilier’s third-generation energy-positive campus for Schneider Electric in Grenoble to Metropole Aix-Marseille Provence’s €83m mixed-use facility dedicated to innovation and disruptive technologies. Then there is the ultimate makeover for the capital’s infrastructure, Grand Paris. “The Grand Paris project comprises the development of more than 200 km of new Metro infrastructure in the

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Paris region,” says Virginie Houze, head of research, France, for JLL. “This project is the biggest transport development conducted in the Paris region over the last 40 years at least, with an investment totalling approximately €26bn. The new Metro network will be fully automated and connected, allowing for internet access.” According to Houze, the French government is establishing important benchmarks for green building. “France has made specific rules about the maximum energy consumption allowed for new constructions,” she adds. “In the future, new buildings will be required to produce more energy than they consume. Commercial leases for properties above 2,000 sq m include a compulsory environmental appendix, and both landlord and tenant must commit to regular discussions about how to lower energy consumption over time.” Despite this, there is a strong sense in the industry that the future will be about much more than sustainability. Earlier this year, BNP Paribas Real Estate created a head of innovation role at its Paris headquarters to


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FEATURE We think the buildings of tomorrow will be more like smartphones — they’ll be vessels that can be easily updated and that will be much more connected Kevin Cardona

deliver a strategic approach to this challenge, inviting Kevin Cardona to do some blue sky thinking. “Up until now, the real estate sector has been developing functional buildings, which struggle to evolve,” Cardona says. “We think the buildings of tomorrow will be more like smartphones — they’ll be vessels that can be easily updated and that will be much more connected. We asked ourselves to redesign real estate to cope with the next 10 years, and decided that buildings in the future will be judged on their ability to communicate with their users and with their neighbours.” Cardona adds: “This is more about IT and software, and less a question of the building’s envelope. Sustainable criteria are important, but we’ve already come so far on that front. The office of tomorrow will be closer to the hotel of today, with concierge-style service and artificial intelligence in its DNA.” A number of these ideas are not just confined to the drawing board — France’s cutting-edge office developments are already flirting with the future. Bouygues’ Green Office Enjoy, on show at MIPIM, will be both ecologically integrated due to its unique concrete and wood structure, as well as supremely connected. Meanwhile, Union Investment Real Estate has just inked a deal for Carlyle’s latest office project, Grand Central at the Saint-Lazare railway station in Paris, which will target a different kind of tenant in this emerging area of the capital. “There are more tech firms and startups in this part of Paris, who want a colourful location and rapid access to a transport hub,” says Philip La Pierre, head of investment management, Europe, at Union Investment. ‘‘Grand Central will be one of the most modern business centres in Paris and is aiming for an HQE Excellent rating. Additionally, it benefits from a location that is unsurpassed in terms of transport links, thanks to Saint-Lazare’s place in the Grand Paris project.” La Pierre adds: “Carlyle worked a long time on this and it’s a great example of their outstandingly unconventional approach to buildings. But the beauty of this project will be its flexibility and responsiveness to the needs of its tenants.” There is also a quiet revolution going on in France’s warehouse and industrial sector, “the strongest asset class in Europe at the moment”, according to Tim Davies, head of EMEA industrial and logistics agency, Colliers International. Colliers has just set up a dedicated industrial advisory

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department in France to deal with investor demand and tackle the sector’s need to innovate, as e-commerce makes geographical and technical demands on the logistics market. “The French market is one of the largest industrial and logistics markets in Europe, and the entry point for several foreign companies wishing to establish their business on the continent,” says Alexandre Fraigneau, co-head of Colliers’ industrial department in France. “Many e-commerce companies, such as Amazon, Darcy and Fnac, as well as carriers including FedEx, TNT and Chronopost are demanding distribution systems that allow them to be more and more flexible for their customers.” “Developers are working with occupiers to provide the space they need — often in tight locations, where land availability is either limited or prohibitively expensive. This is being resolved by designing multi-storey or multi-mezzanine warehouses,” Davies adds. “The increasing use of robotics is perhaps having the most profound effect on the way warehousing is being developed and worked from.”

The increasing use of robotics is perhaps having the most profound effect on the way warehousing is being developed Tim Davies

The idea of occupiers being able to mould the buildings of the future is also more relevant than ever in residential real estate, as BNP Paribas Real Estate’s Cardona explains: “The internet of things will only work if we solve the problem of making artificial intelligence truly useful. It’s great to have a connected bed or a connected thermostat but, after a month, you’re going to stop looking at the app. But if the bed is connected to the thermostat, and your home knows when you go to sleep, it can turn the heat in the living room down a few degrees.” At MIPIM this year, BNP Paribas Real Estate will be showcasing what it thinks is the next frontier for artificial intelligence — Le Pod — which Cardona describes as a “teleportation cabin”. He adds: “This is a kind of booth from which you can virtually travel to view a house, an office or tour a site. We think it could be a real day-to day-application for virtual reality.” But Cardona warns that the giant stride will require all levels of the industry to work together, rather than compete to produce innovations of their own. “Technology is only useful when it communicates,” he says. “In the future, building managers will be like orchestra conductors, requiring multiple properties to work together in harmony. We’re going to need to work together to develop an open innovation system. Perhaps this will be the biggest challenge of them all.”


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FEATURE SPOTLIGHT ON THE NORDICS

Hot in the north

Nordic property transactions hit a record high in 2016, driven by a vibrant Swedish market and strong activity in residential. With its attractive demographics, buoyant economies and high quality of life, the region is also emerging as Europe’s new safe haven. Ben Cooper reports

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IKAEL Soderlundh, partner and head of research at Pangea Partners, puts it succinctly. “The thing about the Nordics,” he says “is that there’s something for everyone.” To look at the levels of confidence in Sweden, Norway, Finland and Denmark, it would appear that the international markets agree. Last year was a record-breaking one for the region: transaction volumes hit €43.5bn in 12 months, and major deals, some of the biggest anywhere in Europe, were signed. Take AXA Investment Manager’s €45m acquisition of a mixed-use space in Oslo, completed last September; Europa Capital and Keystone’s €178m deal in Copen-

If you want safe returns, Sweden and Norway’s larger cities are a very good bet. For higher risk but potentially higher return, Finland and Denmark have a lot to offer Mikael Soderlundh

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hagen at the close of 2016 and TH Real Estate’s acquisition of a 50% stake in the Kamppi Centre in Helsinki, signed just last month. The Nordics, it would seem, are back on the international radar. When you look at the markets within the region, this is no surprise. Soderlundh says: “Different markets are in different phases right now. If you want to find safe returns, Sweden and Norway’s larger cities are a very good bet. For higher risk but potentially higher return, then Finland and Denmark have a lot to offer.” As ever, Sweden and Denmark are the dominant forces in the region. Out of the 68 real estate transactions across the Nordic territories in January this year, 50 were in Sweden and Denmark. More than two thirds of all transactions in 2016 also took place in these two markets — at times, this rising to three quarters. Not that Finland and Norway are not in demand. The second largest transaction in the whole of last year — Sponda’s €600m acquisition of the Forum Shopping Centre from Konstsamfundet — was in Helsinki, while Oslo saw the ninth biggest deal of the year with the sale of the Statoil office complex by Madison International Realty for €419m.


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FEATURE All the Nordic countries are very transparent and it’s easy to find information and good advice. You also have very high liquidity. It’s actually the highest in Europe Julia Mejegard

The Nordics are not just busy in terms of deals — development is also thriving. At MIPIM, a number of the region’s players are showcasing major projects to the markets. Examples include the Capital Region of Denmark, which is presenting a significant long-term opportunity in the form of Copenhagen’s New Hospital and Mental Health Bispebjerg. Funded by the Danish government’s Quality Fund and the Capital Region, the scheme will merge two large hospitals into a state-ofthe-art medical facility with 128,000 sq m of new space, to be delivered by 2024. Also in the Danish capital, the CPH City & Port Development joint venture has undertaken a significant project on the island of Christiansholm, which will deliver 45,000 sq m of mixed-use space by 2022. Meanwhile, in the centre of Copenhagen, work begins this year on a major project to create a new neighbourhood. Led by Arkitektgruppen, the scheme consists of 75,000 sq m of residential units and 20,000 sq m of space for offices and businesses. Sweden has an abundance of new developments on offer, not least AMF Fastigheter’s ambitious new neigh-

bourhood project, Urban Escape Stockholm, located right in the heart of the capital. The largest scheme of its kind since the 1970s, Urban Escape Stockholm is due for completion in two years. It will deliver some 60,000 sq m of office space, 40,000 sq of retail and dining space, and two lifestyle hotels totalling 30,000 sq m, all designed to stimulate business activity in the city. A little further out of the centre of Stockholm is one of the most ambitious and long-standing projects to be found anywhere in Europe. The Stockholm Royal Seaport scheme was instigated at the turn of the century and is scheduled to be completed in 2030. By this date, the district on the city’s Baltic coastline, adjacent to the Royal National City Park, will have been transformed by the arrival of 12,000 new homes and 35,000 new workplaces. In Oslo, meanwhile, a joint project between Storebrand Eiendom and the Oslo Metropolitan Area promises not only 69,000 sq m of ultra-modern office space but a new public realm. The Ruselokkeveien 26 project will link up the Nationaltheatret train station with the city’s waterfront space, and create what the developers say will be a bold new feature for the Norwegian capital. To investors coming from mainland Europe, the Nordics might be close and seem very familiar, but they are nevertheless new markets and, as such, present a challenge to international companies. This is one of the reasons why, during the crash of 2007/08 and in the ensuing years, the tide of international investment pouring into the region all but stopped and transactions were almost entirely domestic. So why is this changing now? Speaking last year at a special event to discuss investment in the Nordic region, Julia Mejegard, senior investment professional at AREIM, said: “The Nordic countries, especially Sweden and Finland, have always been international markets, but what’s different in the last couple of years is that we’ve seen a lot more cross-border transactions within the Nordic countries. All the Nordic countries are considered to be very transparent — transactions are transparent and it’s easy to find information and good advice. You also have a very high liquidity in relation to the total stock. It’s actually the highest in Europe.” Alongside the rise in inter-Nordic co-operation, another thing that has changed is the region’s increased openness to joint ventures with non-Nordic partners. This is evidenced by the major partnership signed last July between German firm Bayerische Versorgungskammer and Norway-based CapMan, which has been one of the biggest talking points since MIPIM last year. The deal will result in a total investment of $426m in the region. Four nations with their own opportunities — and challenges — cannot be treated as a homogenous block. But what can be said for certain is that, collectively, the Nordic region has just seen the highest year of investment transaction levels in history. Pre-crash, international investors were keen: now they are back with a vengeance. The scale of activity in 2016, and the size and power of some of the international companies now present in the region is proof that the Nordics are an increasingly attractive proposition.

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FEATURE SPOTLIGHT ON GERMANY

Safety from the storms

Always a contender for the accolade of Europe’s strongest property market, Germany seems likely to benefit from the UK’s decision to leave the EU — especially if it can survive September’s federal election without the kind of populist upsets that have beset the US and the UK. Paul Strohm reports

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UROPE’s recent political and currency movements, generally expected to be disruptive and to have potentially negative effects, may also create new opportunities if investors target the right assets within the right markets. European commercial property remains an attractive value proposition for investors and Germany is well placed to take advantage of this. At least, so says property consultant Knight Frank in a recent market analysis.

German investment volumes have overtaken UK volumes post-Brexit Chris Bell

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“Germany in particular is widely regarded as the safe haven for capital in continental Europe and, in the riskaverse climate, many investors are willing to sacrifice some yield for lower risk. German investment volumes have overtaken UK volumes post-Brexit,” says Chris Bell, Knight Frank’s managing director of Europe. Germany’s popularity was clearly evident last year. The total volume of real estate investment transactions was €52.6bn for the year, of which €19.6bn was spent during the last post-Brexit vote quarter alone, according to BNP Paribas Real Estate Germany. Furthermore, the firm’s CEO, Piotr Bienkowski, believes the total might have been greater. “Many investors were held back by a sometimes inadequate level of supply,” he says. Office buildings were most in demand and accounted for 44% (€23.03bn) of the total. Retail took second place, accounting for about a quarter (€12.96bn) of all investment, while hotel investments stood at €5.18bn. Logistics accounted for around €4.44bn and the sector seems particularly buoyant. “The German logistics sector is growing very rapidly.


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FEATURE The interplay between retail and logistics services is clearly noticeable in many major cities,” says Peter Kunz, Colliers International managing partner and head of industrial and logistics, Germany. The trend for developing more and better logistics facilities has been well illustrated by developer ECE’s collaboration with third-party logistics contractor Hermes Germany. A new distribution centre has been announced at Graben industrial park near Augsburg. This is the fourth of nine logistics centres that ECE is building for Hermes Germany as part of a programme that is scheduled for completion in 2019. ECE and Hermes have put their total investment for the development programme at €600m, of which the Graben scheme will account for approximately €40m. German investors accounted for the largest share of real estate transaction volume (57%) last year, but foreign buyers have steadily increased their proportion, particularly because of their dominance in portfolio purchases, where they account for 65%. Among these buyers, Europeans accounted for 23% of the overall volume and North Americans 14%. Buyers from Asia and the Middle East each invested well over €1bn in German commercial properties last year. UK-based London M7 Real Estate is among the European investors to have already taken a stake in Germany this year: in January, it bought a 10-property portfolio of office and light industrial assets from Valad Europe for €63.5m for one of its funds. “We acquired this portfolio because it provides both a mix of strong and diverse income profiles, combined with a range of opportunities to enhance capital and rental values. Now we plan to achieve significant medium-term growth in the value of the portfolio through a targeted assetmanagement programme,” says Alyssa Huse, managing director of M7 Real Estate Germany. In February, M&G Real Estate invested €205m in two office buildings in Munich and Frankfurt and a shopping centre in Wiesbaden. M&G Real Estate fund manager David Jackson adds: “Key markets in Europe, and especially Germany, are now experiencing stronger tenant demand and take-up, which is fuelling rental growth and currently helping to drive long-term income returns. As such, core assets in prime locations in Germany continue to be of interest to our pan-European strategy.”

Core assets in prime locations in Germany continue to be of interest to our pan-European strategy David Jackson

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According to BNP Paribas Real Estate, German office markets experienced the best take-up ever in 2016, with 3.7 million sq m absorbed. The take-up trend was similar for all major cities, but Berlin was out in front with a demand of 838,000 sq m. Munich came in second with 778,000 sq m and Frankfurt third with 551,000 sq m — a 26% increase on the preceding year. Nationally, there is now only 5.67 million sq m vacant, which is the lowest level for 15 years. The low volume is a problem for some cities. Berlin has just 542,000 sq m — a vacancy rate of 2.8% — while Cologne’s 404,000 sq m is close to the 5% level. Munich has 855,000 sq m vacant, representing 2.8%. And Frankfurt, where vacancy is currently 10%, looks set to fall to single digits this year. One consequence is likely to be increasing rents. Berlin led this trend in 2016, with a 14% hike to €28.50 per sq m. According to a sentiment survey by the Royal Institute of Chartered Surveyors (RICS), prospects in Germany exceed those of other EU nations. However, RICS points out that 55% of its survey’s respondents sense the market is close to its peak in the current cycle. This is reflected in a slight downgrading in longer-term projections, with growth expected to cool in all sectors, other than the secondary retail market, over the next three years. “Even so, current momentum remains robust, evidenced by the Investment Sentiment Index rising to +57 — the strongest reading since the series was introduced in 2008,” says RICS.

ELECTION PROMISE? THE FORTHCOMING elections in France, the Netherlands and Germany could affect overseas investor sentiment towards these countries’ real estate markets, particularly if popular protest voting upsets the status quo, as has been the case in the US and the UK. But it may not be all bad news for property. “Currency movements are increasingly factored into the thinking of international real estate investors. They look for short-term weakness in the currency of a country whose real estate market has strong long-term fundamentals, and buy accordingly,” says Knight Frank chief economist James Roberts. He adds that the elections could “buffet” the Euro in 2017: “We expect to see overseas investors using any dips in the currency to buy property in key European cities.” The elections to select members of the Bundestag, the federal parliament of Germany, will be held on September 24 and will see Angela Merkel’s Christian Democratic Union partnership with the Christian Social Union defend the 311 seats (41.5% of the vote) won at the last election in 2013. Former European Parliament president Martin Schulz, Social Democratic Party (SPD) candidate for chancellor, is considered by some to be a growing threat, drawing ahead of Merkel in some polls.


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Nomina

ted for

“Best inn green bu ovative at MIPIM ilding” Awards. Vo te for us !

Sustainability goes public. The world’s most open corporate headquarters is a model of sustainability. Not a typical headquarters.

The new Siemens corporate headquarters is not a typical HQ building. It is open for everyone and forms an attractive downtown district full of opportunities in the heart of Munich that invites people to meet, stroll and linger. The building also sets standards in terms of environmental friendliness, energy efficiency and the sustainable use of resources. The result: 90% less electricity, 75% less water and 90% fewer CO2 emissions compared with the previous headquarters. And its nomination for “Best innovative green building” at the MIPIM Awards. Please vote for us!

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Siemens Headquarters designed by Henning Larsen Architects.

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FUTURE SHOPPING

Search online, find offline. Make a wish, search online, pick up offline. ECE’s Digital Mall provides information on the products available in a shopping center – anytime, anywhere. A major step towards a seamless omni-channel experience. Customers of Alstertal-Einkaufszentrum in Hamburg are the first to search their center for the availability of a specific product from home or while on the go. And just pick it up later. www.ece.com/ideastoinnovations

Visit us at Stand P-01.H51

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28.02.17 20:26

Mipim 2017 news 2  

MIPIM News The ONLY daily publication at MIPIM Produced in Cannes by specialist journalists, award-winning photographers and a dedicated Gra...

Mipim 2017 news 2  

MIPIM News The ONLY daily publication at MIPIM Produced in Cannes by specialist journalists, award-winning photographers and a dedicated Gra...