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37 MIPIM INNOVATION FORUM

100 CONFERENCE & EVENTS PROGRAMME

108 MIPIM AWARDS

PREVIEW The of ficial MIPIM magazine • www.mipim.com • February 2017

SPECIAL REPORT

A NEW DEAL FOR REAL ESTATE Powerful forces are changing the COUV_ISTAMBULCHAMBER_PV_PIM way property is occupied, owned and traded

OFFICES

HOTELS

With changing corporate cultures what is the role for the traditional office?

How are hotel owners and operators responding to the rise of the sharing economy?

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Editorial

WELCOME to the MIPIM 2017 Preview magazine which brings you an overview of the state of the international real estate industry and some of the main issues that will be discussed in Cannes. MIPIM 2017 will focus on the New Deal for Real Estate. Against a background of disruptive technology, geopolitical uncertainty and massive social changes, property professionals and urban administrators face challenges that require a new approach to their development strategies. In this MIPIM Preview you can read about the way the digital revolution is disrupting the property sector in all its forms. Logistics are adapting to the explosion in e-commerce, while traditional hotel and leisure real estate experts are re-thinking their development policy in the face of competition from the likes of Airbnb. And in the important office building market, digital innovation is changing working practices and in the process the way offices are designed and the new functions they offer. In retail real estate, shopping mall developers and managers have understood that in addition to providing pure retail outlets, their commercial centres must become entertainment destinations capable of attracting and keeping customers in the malls for as long as possible. The international real estate sector is also undergoing a change in investment targets. In Europe, emerging cities are now well and truly on the investorsâ€™ radar as are specific asset classes such as healthcare and residential. All these subjects are addressed in this Preview and we hope they will provide you with a useful insight as you prepare for MIPIM 2017. MIPIM is the real estate industryâ€™s international meeting place. It is designed to provide an overview of major market trends and business opportunities. It exists to develop your business through meetings, new leads and the sharing of knowledge. We hope this MIPIM Preview helps you prepare for the four days of MIPIM and beyond. On behalf of the whole MIPIM team, I look forward to seeing you in Cannes.

Filippo Rean Director of the Real Estate Division. Reed MIDEM

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Contents Your MIPIM experience How to get here • Your badge and registration • Must-attend events • Must-visit areas • Meetings and Map

News The latest deals from around the property world

Projects MIPIM is an opportunity to marvel at the creativity of designers and developers from a host of different markets.

NEW DEAL FOR REAL ESTATE

What trends and technologies are shaking up the world of real estate?

Features Offices

The digital age is revolutionising working practices, office environments and corporate cultures. Is there still a role for the traditional office building?

SPECIAL REPORT

Retail

CONFERENCES & EVENTS PROGRAMME

Changing consumer habits are challenging traditional shopping centre formats, as entertainment comes to the fore

Healthcare

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Once a niche investment type, healthcare property is moving into the mainstream

Awards Logistics

The rise of e-commerce is forcing brands and logistics operators to wrestle with the problem of merchandise returns, or reverse logistics

Hotels

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Residential

New niche sectors are offering investors a wider range of choice within the residential property market

The votes are in and the MIPIM Awards jury have made their decisions. Who has made the shortlists?

The sharing economy is disrupting accommodation markets across the globe. How are hotel operators and owners reacting?

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Your MIPIM Experience 14-17 MARCH 2017 Palais des Festivals, Cannes, France OPENING TIMES 14-16 March 9.00-19.00 17 March 9.00-15.00 Access from 8.00 for exhibitors

14 March: Welcome Reception 19.30, Carlton Hotel

REGISTRATION HOURS 12 March 14.00-19.00 13 March 9.00-19.00 14 March 8.30-20.00 15 March 8.30-19.00 16 March 9.00-19.00 17 March 9.00-13.00

We look forward to welcoming you in Cannes, but first here are some tips to prepare your journey to MIPIM

Prepare for MIPIM in advance Visit the MIPIM website to organise your travel • Book your transportation & accommodation with our partners to get the best deals

Prepare your agenda and meetings ahead of time • Check out the programme of conferences and networking events • Log in to the Online Database and – Fill out your profile and personalise your agenda – Browse participants and attending companies – Send one-to-one messages to other delegates and organise business meetings • Download the Mobile App – Synchronised with the database and your email box – Interact live during conference sessions

Your badge: your key to getting into MIPIM • You received your badge by post Don’t forget to bring it with you • You have your e-ticket Print it out or have it ready on your smartphone to collect your badge at a self-service delivery point. To retrieve your e-ticket, log in to your account at mipim.com or in the MIPIM mobile app • You have your registration confirmation email Pick up your badge in the registration area. Your badge must be carried all times, and ready to be shown at entry points around the area. Your badge is strictly personal and non-transferable.

Onsite: meet decision makers and get an overview of the market trends Connect, learn, share

MIPIM Awards Ceremony

Welcome Reception

Thursday, 16 March, 18.30 Grand Auditorium

Tuesday, 14 March, 19.30 Carlton Hotel

MIPIM Awards 2017 Official Media Partner

Sponsor of Best Healthcare Development

Open to all

Networking events* • Matchmaking sessions • Thematic networking events * more information online and in the Mobile app

4 DAYS OF CONFERENCES & NETWORKING EVENTS

See the programme p.100 and plan your journey

Conference programme Choose among 100+ conferences to stay on top of property and investment trends

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Your MIPIM Experience General map of MIPIM

Croisette zone

C9 - Catella France C10 - Bouygues Immobilier

Meet and do business with key players involved at the different stages of logistics real estate projects, including planners, investors, developers, operators and occupiers.

C11 - Moscow City Government

C15 - London Stand C16.A - Dubai Holding C16.B - Midlands UK

Sea

C12

C16.C - Department of International Trade, UK RIVIERA 8

C17.A - Manchester

C15

C19 - MIPIM Croisette Village

RIVIERA 9 MIPIM Seaview Village

ier

C17.A C17.B

C17.B - Groupe IDEC

ntr

C14

C20 - Nakheel

RIVIERA 7

MIPIM Area

Access to Riviera 8 & 9 C19

First Aid

C16.C C16.B

Cloakroom Security Checkpoints

PALAIS -1

C16.A ol toc Pro

PALAIS -1 to 5 Decorators Registration

Harbour

C20

La Croisette

s lai ce Pa tran En

C14 - Istanbul Chamber of Commerce

C11 Beach

C19

Industry influencers lead a healthcare real estate seminar exploring the opportunities available in this promising sector.

C12 - Paris Region

C10

Riv

The 800m² Innovation Forum explores the most innovative solutions and practices to increase the value of property assets, and features a dedicated programme of conferences, case studies and pitching sessions.

min

Carlton Hotel

MIPIM free hotel shuttle

PALAIS -1

Registration

Majestic Hotel La C roiset te

min

The Grand Hyatt Cannes Hotel Martinez

Train Station

Network What rooms can you use for your meetings? Visitors’ Lounges (Palais -1 & 0)

Press Club (Palais 3)

VIP Club (Palais 3)

1st-timers HQ (Registration)

• Intended for participants without a stand

• Dedicated to journalists

Sponsored by

• Dedicated space for first-timers with trained staff to answer all the questions about the MIPIM

• Include a meeting area, hostesses to help organise your meetings and free coffee

• Includes computers, Internet connection, printers and the assistance of a permanent staff member

See you in Cannes!

• Exclusive club, by invitation only • Includes refreshments and a dedicated staff

For further information: www.mipim.com • Help desk: +33 (0)1 79 71 99 99

mipim PREVIEW The official MIPIM preview magazine February 2017. Director of Publications Paul Zilk Director of Communication Mike Williams ®

EDITORIAL DEPARTMENT Editor in Chief Graham Parker Head of Graphic Studio Hervé Traisnel Graphic Studio Manager Frédéric Beauseigneur Creative & Design Officer Carole Peres Sub Editor Joanna Stephens Proof Reader Debbie Lincoln Contributors Chris Bown, Peter Clucas, Ben Cooper, Mark Faithfull, Steve Killick, Isobel Lee, Liz Morrell, Mark Moore, Doug Morrison, David Sands, Paul Strohm PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Manager Amrane Lamiri Publishing Co-ordinators Yovana Filipovic, Emilie Lamber Printer Riccobono Imprimeurs, Le Muy (France) Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2017, Reed MIDEM Market Publications. Publication registered 1st quarter 2017. ISSN 1962-9974. Printed on PEFC Certified Paper preview magazine I February 2017 I www.mipim.com

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News AEW LAUNCHES FRANCE-FOCUSED RESIDYS FUND AEW HAS launched its first fund dedicated to French residential real estate. The heavyweight player has completed a first close for the Residys Fund, raising €100m from institutional investors. The new fund is aiming for a 4% income yield once fully invested. The Residys Fund is targeting equity commitments of up to €400m, which will provide a total investment capacity of €650m, assuming a maximum loan-to-value of 40%. AEW has exchanged on the fund’s first acquisition. It reports that a number of further investments are already in the pipeline. Stephane Sebban, fund manager of Residys, said: “Our objective is to assemble a high-quality, wellbalanced portfolio of French residential assets, comprising existing properties, developments and alternative housing, including senior housing, that are located in those French cities we believe are most likely to benefit from strong, positive demographic and urbanisation trends.” Raphael Brault, head of France at AEW Europe, said: “The expansion of our fund management activities is continuing and, with over €1.5bn of residential assets already under management, Residys provides an opportunity to further leverage our specialist residential expertise.” Brault added: “Our residential activity is gaining momentum, as we maintain our focus on generating sustainable and stable cash flows, as well as delivering capital growth for our investors.”

AEW Europe’s Raphael Brault

Aerium completes €356m of European real estate deals

Aerium acquired 8 Fenchurch Place in London for €93m EUROPEAN investment manager Aerium has completed new real estate transactions totalling €356m in Germany, the UK, Switzerland and Slovakia. The deals consist of €203m of acquisitions and €153m of disposals. In Germany, the action consisted of the €110m acquisition of a retail portfolio in the Baden-Wurttemberg and Hessen regions of southern Germany, along with an office building in the centre of Berlin. The retail portfolio comprises four shopping centres totalling 37,613 sq m, which are 98% let. In Berlin, Aerium has embarked on a strategy to refurbish and reposition the office building in order to meet new tenant requirements. The marketing of the enhanced building is already under way. A 10-year lease has been signed for over 62% of the

net lettable space to Laureate International Universities, a global network of higher education institutions. In the UK, a 9,174 sq m office at 8 Fenchurch Place in the City of London was acquired for €93m (£80m) from a joint venture between ARES Management and PMB Holdings. The fi ve-storey property above Fenchurch Street Station is fully let. Aerium’s disposals include 10 retail assets and an office in Germany totalling 61,000 sq m, which were sold for €93m. In addition, two retail assets let to Carrefour in Slovakia have been sold for €15m. Located in Polus and Zilina, these consist of a total of 28,797 sq m. In Switzerland, meanwhile, three assets — an office, a shopping centre and a logistics building totalling 20,653 sq m — have been sold for €45m.

CBRE GI targets Rotterdam resi CBRE Global Investors (CBRE GI), on behalf of the CBRE Dutch Residential Fund and one of its separate account clients, has acquired 238 apartments, along with commercial space and parking places, at Boompjes 55-58 in Rotterdam. The existing office building of 12,000 sq m, located on the Maas river in Rotterdam, is being redeveloped into 344 apartments, 1,050 sq m of commercial space for hospitality and/or other facilities, and a parking garage with 210 places. First Sponsor Group from Singapore and

Provast is the developer of the project, which is designed by OZ Architects. The remaining 86 apartments will be sold separately to owner-occupiers by the developer. Construction will start in the first quarter of 2017. Paul Oremus, CBRE Global Investors’ fund manager for the CBRE Dutch Residential Fund, said: “We are actively seeking acquisitions for both existing properties and new developments in the Randstad area. We want to optimise our portfolio and create an excellent return on investment for our investors.”

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Your preferred local partner, with a global reach Cities worldwide are key players in the energy transition: our goal at ENGIE is to be a leading architect of their transformation. ENGIE does this by innovating with local ecosystems to make cities and communities safer, more efficient, more sustainable and vibrant.

4 to 7 , 2017 Palais des Festivals, Cannes Innovation Forum - Stand P-1.C50/ P-.D51

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News DISPEO LEASES FRENCH SPACE FROM LOGICOR E-COMMERCE logistics company Dispeo has signed a lease with Logicor to take 30,000 sq m of its warehouse space in Houplines, 15 km outside the northern French city of Lille. The high-end logistics warehouse is located near the A1 and A25 autoroutes, providing fast access to the European supply-chain corridor. Dispeo managing director Pascal Bonnaud said: “This warehouse adds to our existing 150,000 sq m logistics portfolio across five assets. Our warehouses handle 80 million e-commerce items a year — the equivalent of 150,000 parcels per day. With the addition of 30,000 sq m in the Logicor building, we will be able to accommodate the long-term growth of one of our clients.” Consultant Tostain & Laffineur advised Logicor and Dispeo on the transaction. Logicor’s French warehouse portfolio totals 2.5 million sq m.

CapitaLand adds La Botanica to its western China mall portfolio La Botanica: site of CapitaLand Mall Asia’s latest mall contract CAPITALAND Mall Asia, the shoppingmall business of CapitaLand, has taken its second mall-management contract in China within five months. CapitaLand will manage the shopping mall in La Botanica, a township in Xi’an’s ChanBa Ecological District. La Botanica is being developed by CapitaLand-Henderson (Xi’an) Property Development Co, a joint venture between CapitaLand and Hong Kong-based Henderson Land. Under the contract, CapitaLand will oversee the asset-planning, pre-opening and retail management for the five-storey, 50,000 sq m GFA shopping mall, which consists of four levels above ground and one basement level. Opening in 2019, the new mall will double CapitaLand’s retail presence in Xi’an, where it currently owns and manages CapitaMall Xindicheng, a 60,000 sq m mall about 10 km south of La Botanica.

In other China news, CapitaLand is to manage the retail component of Fortune Finance Center in Changsha for Changsha Pilot Investment Holdings. The deal follows the acquisition of CapitaMall Xinnan (formerly Galleria, Chengdu) by CapitaLand Retail China Trust in September last year. Jason Leow CEO of CapitaLand Mall Asia, said: “We are fast-tracking the growth of our shopping-mall network in western China to capitalise on the region’s favourable economic prospects, which have been boosted by the Chinese government’s Western Development Programme, One Belt, One Road economic initiative and the Sino-Singapore Chongqing connectivity initiative.” Including the La Botanica mall, CapitaLand currently manages a portfolio of 14 shopping malls in western China with a combined retail GFA of 1.13 million sq m (12.1 million sq ft).

The Student Hotel buys out Carlyle

meets local and international student needs.” The Student Hotel provides full-service, state-of-the-art accommodation with all-inclusive rates to students, trainees and travellers. The company currently operates 3,000 rooms across six cities in the Netherlands, Spain and France. New properties are under development in Italy and Germany, with the fi rst Italian location opening in Florence this summer. According to MacGregor, The Student Hotel’s ambition is to expand and strengthen its hybrid accommodation platform to total more than 15,000 rooms by 2020.

THE STUDENT Hotel is buying The Carlyle Group’s 85% shareholding in three of its student accommodation properties in Rotterdam, The Hague and Amsterdam, the Netherlands. The Rotterdam location opened in 2012 with 256 rooms, doubling its capacity to 485 rooms in 2014 to satisfy increasing demand. The Student Hotel Amsterdam West is the largest hotel in the Benelux region, with 707 rooms. The location in The Hague opened with 310

rooms in the summer of 2014. All the student rooms have been fully occupied since opening. The Student Hotel’s founder and CEO Charlie MacGregor said: “The acquisition of The Carlyle Group’s 85% shareholding will allow The Student Hotel to consolidate and gain full control of these three properties. Without the commitment and assistance of Carlyle, we would not have been able to start addressing the shortage of quality accommodation across Europe with a new model that

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News GERALD EVE SIGNS UP INDIAN AND CZECH PARTNERS CONSULTANT Gerald Eve has broadened its international alliance of independent real estate advisors, with delegates from its new Indian and Czech Republic partners coming to MIPIM to finalise the agreement. Joining the alliance is Mumbaibased Narains Corporate Real Estate, which advises on commercial real estate across India, with a focus on luxury residential property in Mumbai. The consultancy’s clients include Lafarge, Pitney Bowes, Dow Jones and Kotak Mahindra Bank. Meanwhile, 108 Agency has become Gerald Eve’s first alliance partner in the Czech Republic. The consultancy offers leasing, investment, property-management advisory and tenant representation services focused on the industrial, retail and office sectors. Its clients include Expeditors, DSV, Lidl, Red Bull and Siemens.

Henderson Park acquires the largest hotel in Paris

Le Meridien Etoile in central Paris: sold to Henderson Park EUROPEAN real estate investment platform Henderson Park has bought the Le Meridien Etoile — the largest hotel in Paris — from a partnership between Mount Kellett Capital Management and Cedar Capital. The acquisition is the first to be made by Henderson Park since it launched in September 2016, having raised $500m from Stone Point Capital, Kuwait Investment Authority and Wafra Investment Advisory Group as cornerstone investors. The 1,025-room Le Meridien Etoile was built in 1972 as Air France’s flagship hotel. It sits directly opposite the Paris Convention Center, which is one of the largest conference centres in Europe. The hotel was relaunched in October 2016 following a renovation, which included upgrades to the rooms,

banqueting and conference facilities. Henderson Park believes the recent renovation will ensure Le Meridien Etoile benefits from a recovery in the Paris hotel market and will work with the hotel’s management team and employees to create further value from the asset. The hotel is currently operated by Starwood Hotels under its Le Meridien brand. Nick Weber, founding partner and CEO of Henderson Park, said: “Le Meridien Etoile hotel is an extremely high-quality property in a prime location within a top-tier city. We are firm believers in Paris’ strong underlying fundamentals as both a travel destination and an investment location. With London, it is one of only two truly global cities in Western Europe and remains one of the top-three cities in the world in terms of tourist numbers.”

Simon Prichard, senior partner at Gerald Eve Gerald Eve’s two new partners bring the number of firms within the company’s international alliance to 18, with Narains the first partner to be located outside Europe or North America. Simon Prichard, senior partner at Gerald Eve, said: “Offering clients top-tier services and advice in territories across the world is the basis of the international alliance we are building. In Narains and 108 Agency, we have found partners that are truly best-in-class in their markets.”

Hystead buys Macedonian mall CONSULTANT JLL advised the South African investor Hystead on the €92m purchase of Skopje City Mall, the largest shopping centre in Skopje, the capital of Macedonia. Totalling 36,500 sq m, Skopje City Mall was developed via a joint venture between Balfin Group and Fashion Group. It opened in 2013. Uros Grujic, JLL’s head of capital markets, SEE, said: “This deal is further evidence that investors are seeking new markets in emerging Europe. With other CEE markets witnessing record low yields, south-eastern Europe can still offer good quality shopping

Skopje City Mall: sold to South Africa’s Hystead for €92m centres available at sensible pricing and with improving debt conditions.”

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News THE RIGHT PRESCRIPTION FOR AXA IM — REAL ASSETS REAL estate investment manager AXA Investment Managers – Real Assets (AXA IM – Real Assets) has bought a portfolio of 17 healthcare buildings in Germany from real estate funds managed by Blackstone. The €310m deal was made on behalf of an investors’ consortium comprising AXA insurance companies and the two retail funds: AXA Selectiv’ Immo and AXA Selectiv’ Immoservice. The 177,264 sq m portfolio consists of16 nursing homes and one rehabilitation centre and totals 2,788 beds for clients and patients. The units are operated under lease contracts with five separate operators, including one of Germany’s largest nursing-home operators, which controls 13 of the properties. The majority of the portfolio is located in the state of North Rhine-Westphalia, with two homes in Baden-Wurttemberg, two in Bavaria and one in Hesse. Based on demographic trends in these areas of Germany, the market for nursing homes is expected to experience further growth over the coming decade in response to a growing and aging population, enhancing the long-term appeal of such an investment. Hideki Kurata, head of alternatives and special situations at AXA IM – Real Assets, said: “This transaction illustrates our continued commitment to alternative real estate asset classes and further strengthens our foothold across all of our preferred sub-sectors, with European healthcare demonstrating particularly favourable investment fundamentals. As evidenced across our €3.5bn alternatives portfolio, we believe that working with the most suitable operating partners enhances an asset’s performance and allows us to successfully deliver value to our clients.”

US remains foreign investors’ number-one venue, says NAR THE US real estate practitioners organisation NAR (the National Association of Realtors) has expanded its MIPIM footprint for the 2017 event to accommodate a growing US presence. The NAR-sponsored pavilion gives local and regional US markets a platform from which to showcase opportunities for foreign investors. “The US remains among the top-ranked markets for real estate investors,” said Bill Brown, the 2017 president of the 1.1 million-member trade association. “The appeal of US real estate is evidenced by the fact that foreign buyers pur-

NAR’s Bill Brown: “the most secure investment venue in the world”

chased $102.6bn of residential property, representing nearly 215,000 properties, between April 2015 and March 2016.” Brown added: “The US is regarded as the safest and most secure investment venue in the world, thanks to our strong currency and opportunity for capital appreciation. The most recent AFIRE [Association of Foreign Investors in Real Estate] survey of foreign investors in real estate ranks the US as the number-one destination for foreign investment, with three of the top-five global cities located in the USA.” Among the markets featured in the US pavilion are the states of Florida, Illinois, Nevada and Missouri, and the metro areas of Miami, Beverly Hills/Greater Los Angeles, Las Vegas, Reno and Scottsdale. The US real estate industry’s professional development organisation, the CCIM Institute, will also have a presence within the pavilion, whose sponsors include the states of Washington and Rhode Island, and the Institute of Real Estate Management (IREM).

Colliers steers Warsaw office deal INVESCO Real Estate European Fund has signed an agreement to buy the Q22 office building in Warsaw. The seller, Echo Investment, is one of the largest investment and development companies in Poland. The buyer was represented by advisory firm Colliers International. Completed in July 2016, Q22 is a 53,000 sq m office building located in Warsaw’s central business district. The notarial deed agreement amounts to €230.27m. The deal covers the retail and office building, as well as the land plot. Echo and Invesco also signed a quality guarantee agreement for the construction work, a property management agreement, a rental guarantee and an agreement for fit-out work. Piotr Mirowski, a partner at Colliers International and an analyst in the company’s CEE investment services department, said: “The acquisition of Q22 by Invesco is the largest investment transaction in the office market in Poland and one of the biggest in Central and Eastern Europe in 2016.”

The Q22 office building in Warsaw has been bought by Invesco

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News MCARTHURGLEN BUYS DUTCH FASHION OUTLET MCARTHURGLEN has bought the Rosada Fashion Outlet in Roosendaal, the Netherlands from Resolution Property. The deal sees market leader McArthurGlen Group become the owner and manager of the 23,000 sq m centre. With 1.2 million visitors in 2015, Rosada Fashion Outlet has 75 retail units with 120 brands represented, including Nike, Puma, Esprit, Gerry Weber, Betty Barclay and Tom Tailor. The outlet is 30 minutes from Rotterdam, 20 minutes from Breda and 30 minutes from Antwerp and the Belgium market. The centre has an 18-million people catchment area within 90 minutes. McArthurGlen currently manages 22 centres in nine countries and, with the addition of Rosada, now owns and manages two of the three designer outlets in the Netherlands. The other centre is Designer Outlet Roermond in the south-east of the country, close to the German border. Since its acquisition by Resolution in late 2012, Rosada has seen 70 new lettings and renewals, representing 50% of the centre’s GLA. Resolution opened Rosada’s 7,500 sq m phase-two extension in May 2016, bringing its retail space to more than 23,000 sq m. The extention has increased the centre’s turnover by 54%, while creating a broader portfolio and a higher positioning. Rosada has 1,020 car-parking spaces, which can be supplemented by a further 600 spaces at the nearby leisure park, which is approximately a twominute walk from the centre.

Casablanca positions itself as springboard into Africa IN V ESTMENT oppor tunities in Casablanca are once again being channelled at MIPIM through an informal grouping of advisers, architects and investors, who are seeking to position Morocco’s largest city as a gateway to North Africa. The Invest In Casablanca delegation is following up its debut at MIPIM 2016 with a stand at this year’s show, amid signs of growing investor and occupier interest in the city, which is Morocco’s principal port and acknowledged as the country’s financial capital. “A lot of companies have decided to have Casablanca as a hub for all their North African activities,” said one of the delegates, Nazih Chentouf, founder and managing director of Alhambra Property, an advisory firm with offices in both Casablanca and Paris. “Morocco is trying to play on its

strengths — its proximity to Europe and as a starting point for investing in Africa.” Chentouf said that Morocco has been more of a target for opportunistic investors than mainstream fund managers so far. However, recent legislation allowing for the creation of real estate investment trusts (REITs) is seen as a big breakthrough for the market at a time when major developments — including offices and logistics — are in the pipeline for Casablanca. Further fiscal reforms are planned in an effort to attract global investors. “Casablanca would like to be on the radar of all investors, but it will take time,” Chentouf added. “The opportunity is in the Moroccan REITs; the challenge is that we need more transparency in the market — and [for that] we need more data.”

Apleona takes on Hofgarten AT THE start of 2017 Apleona GVA Real Estate Advisors (formerly Bilfinger Real Estate) was awarded the property management contract for the Hofgarten commercial property at Friedrichstrasse 79/80 in Berlin. Dating from 1997, Hofgarten is a complex of eight buildings located in Friedrichstrasse, Franzosische Strasse, Charlottenstrasse and Behrenstrasse. It has 2,000 sq m of retail space and 6,400 sq m of office space, as well as underground parking with 104 spaces. The anchor tenant is Swedish clothing retailer H&M. Hofgarten is situated close to Galeries Lafayette, Gendarmenmarkt and the government district of Berlin. The centrally located office and retail property was acquired by Triuva Kapitalverwaltungsgesellschaft at the end of last year. Triuva has been a client of Apleona since 2010.

Apleona awarded the property management contract for Berlin’s Hofgarten preview magazine I February 2017 I www.mipim.com

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News MADISON REALTY BUYS CHRISTIE’S GERMAN RETAIL CENTRES

The Portici Outlet Center in Italy

A JOINT venture between Madison International Realty and Redos Real Estate has bought Christie’s retail centres in Germany. The package consists of a 214,000 sq m shopping-centre portfolio in four properties in greater Berlin and Dresden. The four centres blend warehouse park and shoppingcentre features. Matthias Cordier, director of Madison in Frankfurt, said: “This portfolio fits Madison’s strategy of buying established prime assets with good in-place cash flow, as well as embedded valueenhancement opportunities that will be driven by investments in targeted, on-site initiatives that optimise the tenancy in existing high-volume centres. The properties are located in strong submarkets and each centre has the dominant competitive position in its local area.” Cordier added: “Madison has assembled financial partners who are attracted to Germany’s positive demographic trends and real estate fundamentals, the portfolio’s strong tenant quality, and the remaining value-added opportunities.”

European mega-deals signal strong outlook for outlets OUTLET malls have come of age from an investor and retailer perspective, according to research from Cushman & Wakefield (C&W). This view is confirmed by two panEuropean sales by the Irus European Retail Property Fund. The deals, completed for a reported €1.28bn, consist of 10 centres and represent the largest European retail transaction of 2016. Irus owns 11 outlet properties and is sponsored and managed by Neinver Group. C&W advised TH Real Estate on buying six outlet centres in Spain, Italy and Poland worth more than €700m on behalf of a joint venture between Neinver and TIAA. Separately, Via Outlets (Hammerson, APG, Meyer Bergman and Value Retail) bought four European outlet centres in Germany, Portugal, Spain and Poland for a total of €587m. In one day in 2016, these transactions eclipsed the entire outlet-centre transaction volume for 2015, C&W said. C&W research shows that outlet floor space

has grown by 6.4% a year over the past five years — almost double the rate of traditional shopping centres — as investors and retailers increasingly target this once-niche market. Sales growth has increased by 8% a year over the past three years, while European outlet rents have increased by more than 10% in the past 12 months alone. The most recent data available on the sector shows that growth on year-to-date sales up to the third quarter is around 4% for occupied space, with turnover growing by nearly 7% due to increased floor space. This growth is driven by operators and developers investing in their centres over the past decade, according to the new research. Contributory factors include designer retailers no longer fearing brand dilution and accepting outlets as a suitable channel for distributing surplus stock, which has increased their consumer base. Rapidly rising rents in popular retail locations have incentivised developers to consider outlets as new retail channels.

French-Dutch JV targets Paris

term and, at the same time, that will have a substantial lower carbon footprint than at the date of acquisition,” said Tinka Kleine, PGGM’s director of private real estate. Fonciere Atland will co-invest in the joint venture, with its subsidiaries leading the acquisitions process and managing the assets. An OPPCI (professional real estate investment scheme) structured and managed by Voisin will acquire the assets upon approval by the French stock-market regulator AMF.

Madison’s Matthias Cordier: “prime assets with good in-place cash flow”

FRENCH real estate company Fonciere Atland and Dutch pension fund manager PGGM have launched a partnership targeting offices in Paris and Ile-de-France. The joint venture, which has €250m to invest, has completed its first investment at 38 rue de la Republique in the Paris suburb of Montreuil. The partnership will target investments

with growth potential that can be captured through asset-management initiatives, such as re-letting, the re-gearing of leases, refurbishment, redevelopment and extension infill. “The objective is to create properties that become recognised as core assets, with strong income-return characteristics for the long

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News OFFICE ISSUES ON THE TABLE AT ESSEC’S MIPIM SESSION MIPIM’s academic partner, Essec Business School’s Real Estate and Sustainable Development Chair, will lead a round-table discussion at MIPIM entitled New Ways Of Working, New Production Tools: What Is The Impact On Headquarters? With Essec professor of public and private policy, Ingrid NappiChoulet, as facilitator, the session marks the release of Essec’s fifth report, Offices: Future Urban And Managerial Challenges, which focuses on a key aspect of those challenges: workspace layout and design. Produced with the support of Essec’s five partners — Poste Immo, BNP Paribas Real Estate, Vinci Energies, Vinci Immobilier and Perial — the latest report looks at contemporary changes in office property. It analyses how developments in the economy, society and the environment are remodelling attitudes to office buildings in all their dimensions, including interior layout and design, local integration and their location in urban spaces. These issues are causing office real estate players to reconsider their social and environmental responsibility, not only to their employees but also to the areas in which they work. The round table will be held on Tuesday, March 14. The report will be available for free download from Essec’s website (www.essecimmobilier.com) from the same day.

Essec’s Ingrid Nappi-Choulet

Hospitality set to become reality for Japan’s Dream MITSUBISHI’s real estate management affiliate Diamond Realty Management (styled as Dream) is adding the hospitality sector to its existing firm base in logistics and retail. The move is significant, according to Dream president and CEO Takashi Tsuji, “because Japan faces a shortage of hotel rooms as the 2020 Tokyo Olympics approaches”. He added: “We have started to prepare funds for buying hotels and we are talking to sellers now — meaning developers rather than existing hotel-owners, in order to avoid competition in the current hotel-investment market. We have formed a task force to carry it out.” In response to the increase in the number of foreign tourists coming to Japan, Dream has also established a value-added fund targeting outlet malls. “These are not necessarily just in Tokyo,” Tsuji said. “It’s a fund for foreign investors. We can also expect more demand for logistics because of the continued growth of e-commerce.” In addition, Dream has set up a new global product development department to help Japanese investors who want to allocate some of their capital to projects outside Japan. “We are setting up a fund to invest in US development projects,” Tsuji added. “There is a lot of uncertainty regarding the economy right now, so I think we need more options to satisfy industry demands. This will be our first overseas fund and it will be in the areas of residential rental property and logistics.”

Dream’s Takashi Tsuji: “more options to satisfy industry demands” These changes have been driven by the company’s growth strategy, Tsuji said: “We already possess much global knowhow thanks to our parent company, and now we have many experts working for us from outside Mitsubishi. They are our software and give us a big advantage.” So while foreign investors come to Dream to gain entrance to the stable Japanese real estate market, Japanese investors can more easily expand their asset allocation outside Japan with Dream’s help, Tsuji added.

Europa closes second Danish deal EUROPA Capital and Keystone Investment Management have bought a portfolio of office and residential assets within the Valby suburb of Danish capital Copenhagen for €178m. The investment is made up of two separate transactions forward purchased from De Forenede Ejendomsselskaber. The portfolio includes four residential blocks of 318 units and six office buildings of 24,989 sq m that have been largely refurbished with occupancy currently standing at 81%. These assets are located adjacent to Europa Fund IV’s residential investment, which comprises 357 units.

Europa Capital partner of acquisitions, Hugo Black, said: “We are pleased to have completed our second transaction in Valby, following Europa’s acquisition of 357 residential units in 2015. The Valby residential accommodation will help towards alleviating the capital’s supply constraint pressures, which have been created by a growing populus.” Since 1995, Europa Capital has raised nine real estate funds and committed to 105 transactions totalling €9.5bn across 19 European countries.

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LEADERS IN HEALTHCARE REAL ESTATE Threestones Capital is a fast growing independent investment management group headquartered in Luxembourg. The company manages private equity real estate regulated investment vehicles under the supervision of the Luxembourg financial authorities (CSSF) in compliance with European financial regulations. Threestones Capital Management SA is an AIFM (Alternative Investment Fund Manager) in accordance with the AIFM Directive.

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News Moscow pavilion reflects city’s dynamic investment potential THE CITY of Moscow is taking a 600 sq m stand at MIPIM this year. Marat Khusnullin, Moscow’s deputy mayor for urban policy and construction, said: “We will be hosting a special investment conference on the stand with the theme of Moscow: Opportunities For Strategic Investment. City investors, experts, and officials from the Moscow government will inform delegates about the investment opportunities in the Russian capital, including the programme of transport-hub construction and integrated city-area developments.” The Moscow pavilion will also host a number of presentations on key city projects, including the renovation of former industrial zones, the development of areas adjacent to the Moscow River, and the creation of an international medical cluster. Khusnullin highlighted some of the reasons why his city’s developments are likely to

attract investors: “Moscow is one of the most dynamically developing of the world’s megacities. Over the past six years, the city has seen the construction of 50 million sq m of new real estate, 527 km of roads, and 162 tunnels, bridges and overpasses, as well as 47 km of metro lines and 24 stations. Moreover, in Moscow the proportion of facilities built last year by investors, both domestic and foreign, amounted to 87% of the total commissioning volume, and each year this figure is growing.” Khusnullin added: “Along with London, Tokyo, New York, Beijing and Paris, Moscow is included in the top 10 of the most investment-attractive cities in the world. In the current economic climate, we expect an upsurge of interest in Moscow projects from foreign investors. And current exchange rates provide the opportunity to make smart investments in real estate construction. The key to

Canada celebrates its 150th birthday THIS is a big year for Canada. Canadian cities and provinces attending MIPIM 2017 are celebrating the 150th year since their country embarked on the road to full independence. Legislation in 1867 began the process that led to the creation of the independent country of Canada, which stretches from the Atlantic to the Pacific. There is no question that Canada has done well over the last 150 years. It is now the 11th largest economy in the world and boasts the world’s 10 th largest per-capita income. It is in ninth place in the Human Development Index and scores in the top five or 10 places in every measure of transparency, human rights, freedom, ease of trade, and accessible, accountable and responsible government. Vancouver frequently tops polls of the best cities in the world for quality of life. Canadian exhibitors to MIPIM will be telling delegates about their participation in some of the mega-projects to mark the 150th anniversary. Chief among these is Montreal’s new urban railway, the REM (Reseau Electique Metropolitain). This consists of a new line for electric driverless trains running from

Brossard in the south of the city to DeuxMontagnes in the north, passing through Central Station, and partly using the DeuxMontagnes train line. It will follow Highway 40 to extend to Sainte-Anne-de-Bellevue in the west. and cut through the Saint-Laurent borough to reach Trudeau International Airport. The total cost for the project is CAN$5.9bn. Also celebrating the 150 th anniversary is the Canada 150 Community Infrastructure

Moscow deputy mayor Marat Khusnullin: “one of the most investment-attractive cities in the world” understanding the attraction of Moscow is that it is one of the few cities in the world that implements a number of mega-projects with high investment potential.”

Program. Under this initiative, the government will provide an additional CAN$150m over two years to the country’s regional development agencies to deliver recreational facilities, schemes that advance a clean growth economy, and projects with a positive impact on indigenous communities. Information on these and other significant real estate ventures will be available on the stands of MAPIC’s Canadian exhibitors, which include the leading international centres of Toronto, Montreal, Edmonton and Hamilton, and the developer Ivanhoe Cambridge.

The Hubert Reeves eco campus in Montreal

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News GAMES ON FOR BUDAPEST? THE CITY of Budapest comes to MIPIM 2017 to extol the virtues of its bid to host the 2024 Olympic and Paralympic Games. Hosting the Olympics would benefit Budapest in many ways, not least by creating 100,000 new jobs and giving the city a predicted €9.6bn economic boost. In addition, a successful bid would help to establish Budapest as a new business destination, as well as a regional sporting hub. As the regional centre for many major multinationals, a winning bid would also help to encourage more partnerships and increase business competitiveness. The Budapest 2024 masterplan is fully aligned to the Budapest 2030 LongTerm Urban Development Concept, which was approved by the Municipality of Budapest in 2013. Among the areas of the city that stand to gain from a winning bid are Obuda island, Margaret island, the City Park area in the west of the city, the new main road of Budapest, the People’s Park in Nepliget, the economic zone around Budapest Ferenc Liszt International Airport and Csepel island in south Budapest, which would be home to the proposed Olympic Park Cluster. The plan also ensures the delivery of the 41,000 rooms required to host the Games. In terms of infrastructure, Budapest is already well served by a mature and resilient road and mass-transport system. All the Olympic venues would be served by one or more transport modes, with the Hungaria boulevard linking six of the seven venue clusters.

Japan unveils ‘detailed support measures’ for foreign investors JAPAN’s government is stepping up its presence at MIPIM 2017 as part of a drive to attract more international capital. Nobutaka Wada, deputy director-general of the City Bureau in the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), said the Japanese Pavilion would highlight the advantages of Japan’s advanced business environment. Wada cited two statistics to illustrate this outward-looking attitude: the government has set a target to increase the total Japanese REIT market to 30 trillion yen

MLIT’s Nobutaka Wada: “Come and join the conversation”

Hilton checks into Georgian capital HILTON is to introduce its flagship Hilton Hotels & Resorts brand to the capital of Georgia with the signing of a management agreement with Granat. Under the deal, Hilton will open a 206-room hotel at 59 Merab Kostava Street in Tbilisi. Set to open in early 2019, the building’s historic facade will be preserved, while a striking glass roof will be constructed on top of the building to house the hotel’s rooftop bar and spa.

by 2020, when it also hopes to have doubled the number of the foreign visitors to 40 million. This will stimulate demand for highquality office buildings and hotel facilities. Already, the GPCI Global Power City Index ranks Tokyo as the third most attractive global business location after London and New York. Moreover, the 2020 Olympic and Paralympic Games are expected to boost global awareness of the Japanese capital. “We are executing a programme of deregulation and introducing very detailed support measures to help the business development of international enterprises,” Wada said. While Tokyo is already positioned as one of the key engines of the global economy and is perceived as an open, safe and smart place to do business, the Japanese pavilion will also showcase other business destinations in Japan. One example is Osaka, where the new terminal at the city’s Kansai airport is expected to boost the local economy by increasing tourist numbers and improving communications for businesses. “MLIT, Japan’s local authorities and private companies will be extending a welcome to all MIPIM participants at the Japan pavilion,” Wada added. “Come and join the conversation.”

The Hilton Tbilisi will open in early 2019

“Hilton Tbilisi joins a robust portfolio of Hilton Hotels & Resorts either trading or in development across 30 European capitals,” said Patrick Fitzgibbon, Hilton Worldwide’s senior vice-president of development, EMEA. He added that the deal underscored Hilton’s regional strategy to expand into more Eastern European cities: “Tbilisi’s diverse economy, with substantial international infrastructure investment, a burgeoning events calendar and leisure growth, makes the city a promising market for our flagship brand.”

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ROMAIN AVRIL Senior Vice President Western Europe, Northern Africa & Turkey

PHILIPPE DEJONGHE Senior Vice President Asset Management

MEET THE TEAM AT STAND P-1 C32 At Carlson Rezidor, we believe in successful, long-term relationships based on trust, responsibility and transparency. That’s the key to unlocking value for our partners.

DAVID JENKINS Vice President Russia & CIS

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ANDREA BRANDENBERGER Senior Director Business Development, Strategy & Investor Relations

In today’s competitive environment, it takes a strong growth strategy to win, and our strategy is dynamic and ever-evolving. We hold a leading position in mature markets, the Nordics and Europe, and are driving strong expansion in emerging markets in the Middle East and Africa. We are on the move. Our five award-winning brands have 80,000 rooms in operation in more than 80 countries. Last year alone, we signed 45 new hotels and opened 18 more hotels. We’re continuing to grow and expand, with new brands like the luxury Quorvus Collection, lifestyle select Radisson RED and the economy-design prizeotel. We bring you development expertise, a value-engineered technical approach, procurement benefits, global revenue generation and operational excellence delivered by 45,000 passionate hosts, who are committed to making every moment matter.

Discover the strength of Carlson Rezidor. Meet the team at stand P-1 C32. VALERIE SCHUERMANS Director Benelux & Poland

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News Conferences examine secret of Poland’s strength and resilience POLAND has been one of the most resilient real estate markets in the EMEA region. In recognition of this, a dedicated conference programme at MIPIM 2017 will examine the reasons for the country’s enduring strength, as well as showcasing emerging opportunities. Co-produced with Poland Today, the programme begins on the afternoon of

Tuesday, March 14, by shining a spotlight on some of the country’s most interesting new projects. Several developers will give an insight into the unique characteristics of their schemes, after which a panel featuring leading figures in the warehouse and logistics sectors will examine Poland’s pivotal role in Central and Eastern Europe’s distribution networks.

On the evening of Tuesday, March 14, Poland Today will host a networking cocktail and dinner for the leading players in the Polish market. The next day — Wednesday, March 15 — the Polish embassy in France will host a lunch, after which there will be another twopart conference. In the first session, the Polish economy will be put under the microscope, as the panel considers the factors that will affect Poland’s economic performance — and in turn its real estate market — in the short, medium and long term. The second session will provide a tour around Poland’s regions, looking the emerging locations for the business-services sector.

Poland comes under the spolight in a dedicated programme of conferences at this year’s MIPIM

Northern highlights at Nordic focus MIPIM 2017 will feature a comprehensive programme of conference sessions covering the diverse and fast-growing Nordic markets. Sponsored by Oslo Metropolitan Area, Business Region Goteborg, City of Malmo, Invest Stockholm Business Region, Newsec, Copenhagen Capacity, City of Oulu, City of Helsinki and Ruukki Construction, the programme kicks off on Tuesday, March 14, with a look at energy-efficient construction — an area in which Nordic companies have gained a global reputation. This is followed by a session co-hosted by the City of Oslo and the

Urban Land Institute on placemaking. The moderator is professor Greg Clark, chairman of the Business of Cities. The programme on Wednesday, March 15, starts with a focus on Oslo, asking why the Norwegian capital is one of the most popular locations in which to invest. The spotlight then moves to Sweden, where the question to be answered is whether 2016’s record investment volume of €20bn is repeatable. Representatives from the cities of Stockholm, Malmo and Gothenburg will make the case for continued inward investment.

Thursday, March 16, gets under way with a networking breakfast, before leading broker Newsec hosts a session on the Nordic investment markets featuring a panel of major regional players. Copenhagen Capacity will then present a session looking specifically at the logistics sector and examining why the Danish capital has made it into Europe’s top-five logistics locations. The programme concludes with a session hosted by the City of Helsinki, which is positioning itself as the gateway to Arctic Europe. The panel will look at the opportunities in construction, mining, energy, logistics and tourism, with particular emphasis on smart and clean construction technology.

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News MIPIM UK 2017

The UK under one roof The MIPIM UK property summit returns to the Olympia London exhibition venue next year with a dynamic new format, reflecting its status as the UK’s largest and most insightful property event. MIPIM UK 2017 is set to build on the success of last year’s event, whose 3,500-plus attendees included key industry figures such as financial services regulator and RBS chairman Sir Howard Davies and private-equity investor Guy Hands, five senior government ministers and 400 international and UK investors, some of whom attended 10 Downing Street to assess a number of investment opportunities. This year’s two-day property summit, which aims to provide the most comprehensive conference programme on the UK industry, will take place from October 18-19. Reflecting MIPIM UK’s status as the leading property summit for the key stakeholders in UK real estate, the Investor Forum is being expanded to cover a full day. In addition to providing senior players with a platform to discuss the trends and issues that are driving the UK market, the Forum also examines key concerns with input from senior government and treasury officials, who attend the event as part of MIPIM’s ongoing partnership with the UK government’s Department for International Trade. Other highlights include an investors’ lunch, featuring a high-profile economic commentator, as well as the opportunity to explore a number of major UK investment projects, some of which are being brought to market for the first time. One notable session, to be hosted by the Department for Communities and Local Government, will throw light on how the government plans to tackle the UK’s housing crisis by deploying a £2.3bn fund into the private-rental sector and kick-starting much-needed house building.

MIPIM UK returns to Olympia in 2017 London will have its own dedicated conference programme, with Urban Safaris offering an insider view of the key developments in London. Experts will also discuss what needs to be done by the UK capital to ensure that it continues to attract corporate occupiers and talent in the post-Brexit world. While the UK government is reinforcing its commitment to growth across the regions — including a new cash allocation of £556m to the Northern Powerhouse — major conurbations are about to gain enhanced powers under their new Metro Mayors. MIPIM UK will be a key platform for them to bang the drum for their cities and regions. In other changes to this year’s format, the successful Innovation Forum will be fully integrated into the two main conference days, with a Reverse Hackathon aiming to provide realtime insight into the ways in which technology is poised to disrupt the real estate sector. Delegates will have the chance to pitch topical problems to a panel of top app creators, who will be given just 48 hours to come up with tech-based solutions. MIPIM UK also offers a range of events designed to help participants make new business contacts and launch new projects. New initiatives this year will include a dedicated networking plaza, and a number of networking dinners and cocktail receptions.

“There has never been such a time of change for the UK industry, nor such a breadth of possible outcomes” With Brexit on the horizon, there has never been such a time of change for the UK industry, nor such a breadth of possible outcomes. The 2017 conference programme, entitled UK Real Estate – The Next Chapter, will analyse and debate the many challenges that are already beginning to have a profound impact on the industry. Among the topics on the agenda are the rise of populist politics worldwide, the UK housing crisis, the role of infrastructure in both national and local economies, and how changing consumer appetites are pushing retail and logistics to the cusp of a revolution. With keynote speeches from heavyweight economic and industry experts alongside strong support from UK government, MIPIM UK 2017 promises to offer unrivalled insight not only into the issues that are affecting the UK real estate industry today, but those that will drive it forward into the future.

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Travel and tourism investment in Brazil is expected to rise by 4.6% per year over the next 10 years, surpassing the world market average (Source: World Travel & Tourism Council). Invest in Brazilian Tourism Join our schedule and learn more about investment opportunities in Brazilian tourism: March 15th (4:30PM – 6:30PM) Seminar “What Are The Next Investment Opportunities in Brazilian Tourism?” Palais de Festivals, Cannes

First panel – Investiment Opportunities in Brazilian Tourism – Infrastructure Second panel – Investiment Opportunities in Brazilian Tourism – Hospitality

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THE fDi REPORT 2016

Crossborder investment trends

The fDi Report 2016 is the annual assessment of crossborder investment, based on data from fDi Markets – a service from the Financial Times. Key foreign direct investment trends spotted include: • • • •

India overtakes China as the top global destination for FDI. Global FDI forecasted to decline by at least 5% in 2016. Financial services sector sees one of the largest declines – FDI project numbers falling 29%. The Middle East and Africa generated $59.8bn of outward capital investment.

Download your free copy of the report today: fDiIntelligence.com/report

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IN THIS SECTION: Market overview

What are established players doing to stay relevant in the new world of property?

Technology

Technology is opening up new ways for buildings to be designed, managed and serviced

Society

SPECIAL REPORT

A NEW DEAL FOR REAL ESTATE

Powerful forces are driving a fundamental change in the way in which property is occupied, owned and traded across all sectors and markets. MIPIM 2017 will focus on these fast-moving and far-reaching impacts

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As the baby boomers hand economic power to rising generations attitudes to property ownership and occupation are changing

City regions

Old geographies are breaking down and the city is re-emerging as a unit of economic and political power

The sharing economy 46 Businesses that own no assets and hold no inventory are growing fast. What does this mean for real assets?

Architecture

New construction techniques are helping deliver buildings that are sustainable, flexible and future-proof

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Market overview

A new deal for real estate

AST year, the global real estate advisor Cushman & Wakefield came up with a succinct description of the transformation property can expect: “Digital is no longer about just technology, but a whole state of mind — more open and transparent, more agile and dynamic, more informal and creative, and with a strong

focus on community and experience.” Guy Grainger, CEO of JLL’s EMEA region, thinks that property businesses need to reflect this. “At JLL, we believe occupier demand is what shapes the property landscape,” he says. “That’s why we want to plug ourselves into occupiers.” And more and more, it is experience and

“For occupiers, it’s the human experience of the building that matters” Guy Grainger, JLL’s EMEA

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NEW DEAL

The property sector is facing a new wave of disruption, driven by unstoppable forces of change. And the longer the traditionally conservative industry resists change rather than embraces it, the more vulnerable the existing players become, writes Graham Parker

Vucity brings gaming technology to planning and design skills from outside the property industry that are helping to defi ne new ways forward for the sector. “We’re employing more architects, designers and people from an HR background,” Grainger adds. “For occupiers, it’s the human experience of the building that matters, so we’re broadening the range of people we employ.”

Equally, the development and town-planning sectors are beginning to glimpse new possibilities. Robert Noel, chief executive of the UK’s biggest REIT, Land Securities, says: “Millennials demand and expect a workplace that is not just attractive, active and agile, but one that promotes health and wellbeing too. Communities demand buildings and

“Increasingly, communities, customers and partners expect those they work with to make a positive difference to the world around them” Robert Noel, Land Securities operations to make a positive contribution. And, increasingly, communities, customers and partners expect those they work with to make a positive difference to the world around them, whether that be socially or environmentally. It is a responsibility that must be taken seriously.” Others see the traditional definition of property investment being eroded. According to Scott Brown, global head of real estate at Barings, the defi nition of the real estate investable universe is evolving. He sees an increasing acceptance of so-called niche property types, such as hotels, self-storage, senior housing, student accommodation and parking. He also sees mortgage debt and global real estate securities breaking into allocations traditionally focused on the four standard property sectors of office, retail, industrial and apartments. “The progression towards a broader defi nition of the investable universe is largely a result of increasing transparency and familiarisation with these sectors,” Brown adds. “And it can also be attributed to increased competition for assets in the traditional property sectors, and a growing recognition that these evolving opportunities could present enhanced return prospects and additional portfolio diversification benefits.” Underlying all this talk of new opportunities is the increasingly febrile geopolitical climate, which is likely to lead investors and occupiers to adopt a ‘safety-first’ mentality, retreating to tried-and-tested approaches with which they feel comfortable. Chris Fischer Hirs, CEO of the global corporate and specialty division of insurance giant Allianz, warns: “Companies worldwide are bracing for a year of uncertainty. Unpredictable changes in the legal, geopolitical and market environment around the world are constant items on the agenda. A range of new risks are emerging that require a rethinking of the current monitoring and risk-management tools.”

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Market overview But Lee Elliott, head of commercial research at Knight Frank, sees little evidence of this affecting the property markets so far. “As the noise produced by European politics gets ever louder, the region’s occupational markets continue to function,” he says. “The growth of tech and creative industries in markets such as Dublin and Berlin has been one source of activity, while an unprecedented phase of business restructuring has fuelled demand in markets such as Warsaw, where talent is available alongside operational cost advantage. Although increased business caution may feature as the Brexit divorce proceeds, for the time being disrupted occupiers continue to seek space across Europe.” However, far more radical change is on the horizon. Blockchain, the technology that underpins trading in ‘crypto-currencies’ such as Bitcoin, has the potential to transform the way the property industry and many other sectors operate. Yet is it still poorly understood. The Etherium Foundation, a Swiss not-for-profit organisation that builds blockchain applications, says its systems “run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference”. But how will this apply to the property market? Emmanuel Lumineau, CEO of the online investment site BrickVest, says: “The main advantage of blockchain is that transactions have the potential to be significantly cheaper, faster and more transparent. Decentralised ledgers are able to keep secure transaction records between two parties, completely independent of any authorities, making tampering with this record difficult. There is no one entity that controls blockchain, meaning that participants can verify the transactions and they are not forced to rely on one entity to keep track of balances.” Lumineau adds: “We believe that the middle man is becoming redundant and P2P systems that benefit investors are the way forward. Blockchain technology makes particular sense for secondary markets, such as real estate investment and equity crowdfunding, which previously wouldn’t have been viable due to high transaction costs.” The fi rst real-world examples of blockchain in practice are just appearing. For example, at the MIPIM Proptech Summit in New York last September, Ragnar Lifthrasir, founder of blockchain app developer Velox.RE and

NEW DEAL

Land Securities’ Robert Noel JLL EMEA’s Guy Grainger president of the International Blockchain Real Estate Association, announced that Cook County in Illinois had agreed to trial the velox.RE system in its property registry, which is the second largest in the US. However not everyone is convinced the old ways of doing business will die out any time soon. Mark Charlton, head of research and forecasting at Colliers International, says: “Blockchain is coming to real estate and it’s going to have an impact. But will very conservative pension funds want to use it?”

“We believe that the middle man is becoming redundant and P2P systems that benefit investors are the way forward” Emmanuel Lumineau, Brickvest The way buildings - and indeed cities -are designed is also ripe for disruption. For example the Vucity application uses systems that were developed in the entertainment and gaming industries. Jason Hawthorne, managing director at the system’s developer, Wagstaffs, says it “offers a whole-city view that allows better-informed decision making by developers and planners.” Another area of the industry that is ripe for disruption is information. Traditionally, even in the most transparent markets such as the US and the UK, brokers have kept their cards close to their chest. Information has been shared on a peer-topeer basis, traded like nuggets of gold for the inside track on the next deal. But the Wild West mentality has been blown away by technology. A host of providers, including CoStar, GeoPhy, Xceligent, CompStak and EGi, have been trying to

change the dynamic so that information that was once shared on a need-to-know basis is shared on a pay-to-know basis. The large brokerages resent the fact that, although they originate the clear majority of deals in the market, crucial and commercially valuable data on those deals is becoming available to anyone who can buy a subscription to a data provider. This not only erodes their competitive advantage over the smaller players, but reduces barriers to entry into the market for new competitors. Infabode is one of the players that is looking to democratise the market in real estate information. “We launched at MIPIM 2016 with the aim of signing 100 data suppliers in our first year,” says CEO Matt Partridge. “But we reached 200 within nine months and now we have 12,000 members from over 1,000 companies.” Now the company is looking to expand with even more content. However, Partridge says the key point of difference is that the service is free to both users and businesses. “The real value lies in the collaboration,” he adds. The pace of change is accelerating and the future of the real estate industry is being shaped by forces that are way beyond the traditional property skill-set. Never has there been a greater need for property players to open their minds to new ideas.

RELATED CONFERENCES & EVENTS AT MIPIM Opening ceremony

Keynote address by Dr. Parag Khanna, leading global strategist & best-selling author “Mapping the future of global civilization” Tuesday 14 March – 10:00 - 11:00 Grand Auditorium (Palais 1) Economy Worldwide overview: what are the global indicators saying ?

Tuesday 14 March – 11:15 - 12:00 New Deal Room (Palais 3)

MIPIM PROPTECH SUMMIT October 2017, NYC – Stay Tuned!

PROPTECH

SUMMIT in partnership with

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THE FUTURE OF MAKING OUR BUILT ENVIRONMENT Throughout history technology has continually changed the way in which we’ve designed, constructed and used buildings and infrastructure assets. From the invention of reinforced concrete, that enabled us to design taller and wider structures, to the introduction of prefabrication, which enabled us to build quicker, to more recently, the advent of mobile computing, that’s changing usage patterns in everything from office utilisation to commuter journeys. This workshop will explore how the next wave of emerging digital technologies are beginning to change how we think about, make and operate our built environment.

Wind turbine design based on QuietRevolution

www.autodesk.com/bim

Autodesk and the Autodesk logo are registered trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product and services offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document. © 2017 Autodesk, Inc. All rights reserved.

Technology

Intelligence is power

Technology isn’t just changing the way we do business — it’s changing the nature of the buildings we do business in, and the way they are designed, managed and serviced. David Sands reports

HE REAL estate industry is the next sector in which digital disruption will take place, according to Tobias Huber, global head of energy services and performance contracting at Siemens’ building technologies division. And developers, landlords and tenants can all reap benefits. As the internet of things (IOT) in buildings takes hold, data sensors are becoming more sophisticated and cheaper. Sub-systems that were once proprietary, such as HVAC and lighting or water, can now be controlled on a room or whole-building management basis. Huber cites the example of data points that combine a human-presence detector in a lighting sensor, which can inform a security system that there are people in the building. “In the past, you would have needed gateways and interfaces with a high risk of failure or being wrongly interpreted by data-management systems,” he says. “Sensors are now internet- or cloud-based, so you have all this information together on a meta-level. This can be combined with data from external sources, like weather reports informing landlords and tenants of how much to heat a building prior to the next working day, or traffic information predicting if tenants will be late to work.” He adds: “I believe there will be cognitive

“At the end of the day, buildings are performing at a higher efficiency at a lower cost” Tobias Huber, Siemens intelligence gathered from data points within a building and this will dramatically impact how they are managed, serviced and even maintained, as some equipment can predict performance irregularities ready for precautionary maintenance. At the end of the day, buildings are performing at a higher efficiency at a lower cost.” Huber is of the opinion that this scenario will serve buildings “from vision to demolition”. He continues: “When you use building-information modelling, you can already address the asset, simulate how the building might perform and then use this data after the construction period for operation and maintenance.” Siemens implements performance-based energy-efficient projects under managed services agreements to maximise energy savings while freeing up cash flows for utilisation in a company’s core business. This in turn can have a positive effect on the way development funding is

The Crystal by Siemens approached by financial institutions. In addition, the firm provides advisory services for the sustainable development of building strategies, so that buildings “start to talk to us, enabling us to create perfect places for all”, Huber says. Thus, he adds, digitisation and building-intelligence systems are increasingly impacting on the value of property portfolios, the quality of tenants they attract, occupier satisfaction and retention. Property firms are getting in on the act too. CBRE executive director Mike Gedye describes how they are using technology — notably WorkPlace Motion — to map and track seat utilisation to forecast and better align supply and demand for office space. This enables more agile working practices and boosts portfolio performance. He says: “For example, if it is no longer a case of one seat per person, how do I balance provision with demand as it fluctuates throughout the week? This then has a knock-on effect on the performance of operations. If I have three buildings on a campus and I need just two of them of them to be fully operational on a Friday when fewer people work, I don’t want or need to run the third building and its heating, security and cleaning systems. This can be done by better leveraging intelligent building controls.” The work experience, meanwhile, is

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NEW DEAL

INNOVATION JOINS THE MIPIM MAINSTREAM Five years after launching as a component of MIPIM, the MIPIM Innovation Forum is moving to the centre of the exhibition zone to become a hub for the growing ‘PropTech’ community. The MIPIM Innovation Forum will host 60 exhibitors and a dedicated conference programme in a 1,500 sq m area. In the first nine months of 2016, industry data showed that real estate tech companies have raised $2.1bn across 167 deals. And 92% of PropTech investors reckon they will match or increase their investment in 2017 according to a report from the US incubator MetaProp NYC, partner to the MIPIM Startup Competition. Energy issues are a major topic for many companies, as reflected by the presence of new attendees at MIPIM such as EMBIX, E-nergy and ENGIE. Crowdfunding and intelligent buildings will also bring together a number of exhibitors at the MIPIM Innovation Forum, with companies such as Anaxago –- a crowdfunding platform for startups and SMEs, FinalCAD – an application that digitalises building site monitoring, Siemens Building Technologies – which provides products and services for intelligent buildings, and Matterport – specialists in creating immersive 3D plans for viewing property projects. The innovation highlight at this year’s MIPIM will be the finals of the MIPIM Startup Competition, supported by BNP Paribas. The winner will be chosen from the nine finalists on 15 March, 2017.

increasingly becoming personalised. Digital ceilings are emerging that employ cheaper LED lighting powered by ethernet rather than power cabling. Thus, every light has an IP address enabling movement monitoring and communication with any other IP device in the vicinity via wireless or Bluetooth. Gedye explains: “If you enter a smart building with a digital ceiling, it will sense your arrival. Your phone acts as your security pass. The system knows you booked a room on level three and sends you a map to get there. The system can also set that room to your personal settings for your phone extension and desktop, while your lighting and temperature preferences are also pre-programmed. Imagine all that on a large scale: you have no space wastage, productivity goes up and the work experience improves. It sounds like a dream, but Cisco and Philips, among others, are deploying this now. The internet of things is progressing at great speed.” Joe Cohen, founder of ticket agency Seatwave, set up Property.Works in December 2015. It aggregates available commercial real estate in a search engine and provides prospective tenants with the tools they need to find the right space. “I don’t buy into the line of thought that everyone will work from home,” Cohen says. There’s a social aspect to work that’s very important and that we are not going to give up. We’ve seen a strong rush to things like co-working and large factories where everyone’s in one place, such as WeWork.com. I think there will be a backlash to that. People will realise they can’t outsource a company’s culture and part of having your own space is that it allows you to create your own business culture as opposed to a WeWorks one. Companies will try to figure out how to get flexibility while maintaining their own culture.” Cohen says Property.Works can predict levels and type of demand, which allows landlords to be more flexible regarding the terms they can offer tenants. He adds: “Traditionally, landlords want to maximise revenue and stability to serve their lease covenants. If landlords have better market-demand visibility, there is a change in that calculus. We can say, hey, for these properties you own, there’s a high level of demand at such a price, so maybe you can do a shorter-term deal at a higher rent. Companies want more flexibility and we know they are willing to pay a premium for that. It allows landlords to maximise revenue without giving up too much security around the length of the leases they grant if they know there’s around five other companies that want that space at that price. Landlords need

“Humans still need to collaborate and engage with each other in the knowledge economy” Mike Gedye, CBRE this better visibility into the market.” Mary Criebardis Singh, co-founder of European property tech venture-capital firm Pi Labs, agrees: “Transparency across data and business has increased as the real estate industry has moved to a more data-driven approach by landlords to manage their space.” She cites the property tech company GeoPhy, which has built a global platform for independent real estate data and information. “This company allows fund managers and investors to measure an entire portfolio against a range of metrics,” she says. Meanwhile, Ryan Masiello, chief revenue officer and co-founder of VTS, a global tech platform for leasing and asset management, points out that one of the most promising breakthrough technologies for financial services is digital currencies such as Bitcoin. “This has some exciting potential applications in the world of real estate, such as bypassing bank fees, transferring funds in real-time and eliminating barriers to entry across borders. All of this will bring about further capability and efficiency,” he says. Smarter buildings will be more valuable, but there is still a fundamental need for human engagement. As Gedye puts it: “We are creating space that gives humans interaction and a fulfilling experience. They still need to collaborate and engage with each other in the knowledge economy. The real estate industry is being challenged to find solutions to the financing, investing, landlord and tenant stacks that are still somewhat siloed in the way they work together.”

RELATED CONFERENCES & EVENTS AT MIPIM

Technology How can big data boost the RE business? Wednesday 15 March – 14:00 -14:45 New Deal Room (Palais 3)

MIPIM PROPTECH SUMMIT October 2017, NYC – Stay Tuned!

PROPTECH

SUMMIT in partnership with

For more information, contact: Arnaud SIMERAY: arnaud.simeray@reedmidem.com (US) Luigia DE IANNI: luigiadeianni@reedmidem.com (Rest of the world)

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Society

NEW DEAL

SOCIETAL CHANGE

Talking about generations Our attitude to home, work and consumption is changing, as the baby boomers move into retirement and rising generations come to the fore. Ben Cooper looks at the impact of society’s changing priorities on property ownership and occupation

HEN you imagine a typical retirement home, Wi-Ficonnected shared work areas and on-site gyms might not be the first things that come to mind. But times are changing. A new generation of residential properties is emerging to suit the next generation of retirees, offering more comfort, freedom and amenities than ever before. And it doesn’t stop there: at the other end of the age scale, the millennials just starting out on their careers are finding hip, slick offices waiting for them, fit for their new way of working. Suddenly, property investors, owners and occupiers are talking about the generations. Tired old nursing homes and homogenous offices just don’t suit modern needs,

regardless of age group. Neither does retail property space that isn’t suited to the times. So what’s provoked this change in occupier appetite? And what do landlords and investors need to do to win at the generation game? At the base of De Rokade residential tower in Groningen, the Netherlands, you will find

“People want to keep intellectually engaged and mentally alert. If older people feel stimulated, they stay young” Alex Ely, Mae Architects

almost everything you need from a modern neighbourhood hub: gym, car park, barber’s shop, cafes and a convenience store. Nothing unusual there, you might say. But De Rokade is not a tower block for young professionals — it’s a home for exclusively older residents. Part of the Maartenshof continuing-care facility, the striking tower is a far cry from the care homes that are all too familiar to many. It’s an example of the way that landlords are starting to think about housing, now that the baby-boomer generation is retiring. With people living longer — a 2015 JLL report identified a 22% increase in the number of over 65-year-olds by 2025 — and many markets globally showing a lack of supply, it is hardly surprising that investors are keen to get in on the opportunity.

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Society As JLL’s director of healthcare investment, alternatives, Phil Schmid, explains: “For the current generation of retirees coming through, their experience of care homes is when they were looking after their parents. This generation doesn’t want the same for themselves: they want to take charge of their environment and they want to carry on living an active life.” According to Alex Ely, principal of Mae Architects, which is working on a number of residential schemes including Pegasus Life’s state-of-the-art Chimes scheme in central London, the work-life balance is even being considered for older people. “There are now schemes that are taking into account people who are retired but are engaged in consultancy or non-executive work,” he says. “That means having proper IT facilities and workspaces within a dwelling. People want to keep intellectually engaged and mentally alert. If older people feel stimulated, they stay young.” But while one generation is retiring, another still has plenty of time to go in the world of work. As the millennials — those born between the mid-1980s and the late 1990s — have come of age, so has technology. The web has gone from being a half-thought to a global obsession, transforming everything from communications, information exchange and shopping to entertainment, travelling and dating. Out of this revolution, a whole new breed of businesses and tech entrepreneurs has emerged, from giants such as Google and Facebook to self-employed creatives. And just as the baby boomers are not content to retire into the old-fashioned homes in which their parents lived, so the millennials do not want to go into the same office spaces that housed their parents. Last year CBRE, as part of its Millennials: Myths And Realities report, asked 13,000 22to 29-year-olds across 12 countries about their living, working and recreational preferences. When it came to working environments, 78% said that the quality of space on offer would be an important factor in deciding on an employer, with a large proportion saying that they would be willing to change jobs to achieve a better working environment — even if it meant a longer commute, a less attractive location or a smaller, less prestigious company. Tomas Jurdak, UK CEO of international developer HB Reavis, which is engaged in a host of office projects throughout Europe, including the ultra-modern Twin City office project in Bratislava, says this is precisely why new

NEW DEAL

HB Reavis’ Twin City office project in Bratislava

builds have to be thought out very carefully. “It’s not just about office space,” he says. “It’s about behaviour as well — in other words, how people spend their days and how they behave differently at different times of day. People want to be able to move around the office during the day. In creative jobs, you need time for thinking and coming up with ideas, and then collaborating. And you need different areas for each. You need that flexibility.” Flexibility is another key word in modern retailing, no matter which generation you are targeting. According to a recent report by Accenture, millennials expect to have very good links between retail channels, with 68% saying they demand an integrated multichannel offer. However, 82% said they still prefer bricks-and-mortar shopping — just like their parents’ generation. Not that there are not distinctions, of which anyone in retail property needs to be well aware. As Katja Nies, retail consultant at Apleona GVA Real Estate Advisors in Germany, says: “The key difference between the two generations is that millennials live a transparent life, share information through social networks and publicly ‘like’ or ‘dislike’ retailers on social-media platforms. Therefore, the millennials take an active part in shaping the retail industry and the public perception of brands. Both landlords and investors have to be innovative and offer extraordinary shopping experiences and leisure facilities in their retail properties in order to gain a competitive advantage over online shopping.”

“It’s not just about office space, it’s about behaviour as well — how people spend their days and how they behave differently at different times of day” Tomas Jurdak, HB Reavis Global shopping-centre developer Westfield says there is another trend being driven by the millennials to which property owners should pay heed — and one that has been almost unheard of up until now. In its How We Shop report, published in November 2016, Westfield points to the rise of what it calls the ‘sharing economy’, and the growing trend among cash-strapped younger people of renting clothing that could well lead to a new generation of stores. Flexible workspaces, social-media billionaires, IT-savvy retirement homes and clothing-rental schemes are just a few examples of how far things have moved on. The old concepts of what the generations want have changed: now the spaces and the places need to change — or become a thing of the past themselves.

RELATED CONFERENCES & EVENTS AT MIPIM How can RE investment strategies foster a better life for people ? Tuesday 14 March – 16:30 - 17:15 New Deal Room (Palais 3)

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City regions

NEW DEAL

MediaCity UK

Better together Europe’s emerging city regions — including Grand Paris, Northern Powerhouse and Holland Metropole — are based on the economic principle that agglomeration is good for growth. But how is that working on the ground? Doug Morrison reports

HEN Chinese vice-premier Ma Kai led a trade delegation to the UK in November 2016, the key attraction was the so-called Northern Powerhouse and with it the opportunity to invest £5bn in various developments. It was an important visit — the first official foreign trade delegation to the UK following its referendum to leave the EU. It also gave credence to UK prime minister Theresa May’s pledge to put “the whole machinery of government” behind the Northern Powerhouse, a hugely ambitious proposal to boost economic growth in the north of England. The real estate opportunities on offer included 13 ‘investment-ready’ developments, ranging from doubling the size of Peel Group and Legal & General Capital’s MediaCityUK scheme in Salford to working with Liverpool City Council on a regeneration scheme to deliver 1,000 homes. Whether or not the Chinese investors come good with the capital remains to be seen, but there is no doubt that the trip itself has boosted

the global profile of the Northern Powerhouse, and its core cities of Leeds, Liverpool, Manchester, Newcastle and Sheffield. The Northern Powerhouse epitomises the emergence of powerful city regions across Europe, such as Grand Paris and, most recently, Holland Metropole. They each have special issues and problems, but they all adhere to a common theme of agglomeration economics: the whole is greater than the sum of its parts. In the case of the Northern Powerhouse, Iain Jenkinson, senior director at CBRE, suggests that its roots can be traced to the Northern Way, a similar initiative launched in 2004 under the last Labour government. Though Labour and the present Conservative government disagree on the detail of how to proceed in practice, there nonetheless appears to be cross-party political will for devolved power as a means of redressing the economic balance between northern England and the prosperous South East. It is often claimed that, if it were a national economy, northern England would rank as

the 10th largest in Europe. But, crucially, the current devolution agenda is underpinned by legislation and a commitment to elect city mayors, which according to Ian Anderson, senior director at Cushman & Wakefield’s development and planning team, shows “genuine intent” on the part of government for Northern Powerhouse to be much more than a re-branding exercise. “When you look at the Northern Powerhouse collectively, the authorities are compelling themselves to work together and not against each other,” Anderson says. “In many ways,

“The government has played a masterstroke by saying local authorities must work as a group to deliver growth, and sort out any differences for the greater good” Ian Anderson, Cushman & Wakefield

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Will be the DREAM CITY of Latin America

A project developed by :

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City regions

CBRE’s Iain Jenkinson

the government has played a masterstroke by saying that it is up to them to be in charge of their own destiny and work as a group to deliver growth, and sort out any differences they may have for the greater good.” He adds: “If people feel that they can influence the regional framework and that decisions will be taken on a local level… I think that is compelling. It goes beyond politics and investment.” According to CBRE’s Jenkinson, another reason for optimism around the Northern Powerhouse is that the public investment going into it is huge, including £13bn to be spent on transport infrastructure during the course of the current parliament. “We have some exciting answers to the problems,” Jenkinson says. “It’s just about getting on and delivering.” To that end, he adds, lessons can be learned from Grand Paris, an equally ambitious initiative involving 200 km of new automatic metro lines and 68 new stations across the Ile-deFrance region, all of which will be subject to a streamlined planning system. The creation of stations is to support the redevelopment of the surrounding areas. To achieve this, the Grand Paris governing body has powers to produce plans for areas extending 800 metres around all stations through ‘territorial development contracts’. In theory, these fast-track planning measures will support the delivery of 70,000 new houses a year to 2030. By contrast, there is a four-year time

NEW DEAL

La Defense frame for Manchester merely to agree on an initial spatial planning framework, which as Jenkinson says is “patently too long”. Meanwhile, the four city authorities behind the embryonic Holland Metropole are looking on at the progress of the Northern Powerhouse and Grand Paris with interest, although their issues are different again. According to project manager Bob van der Zande, the City of Amsterdam’s director of residential marketing and chair of ULI Netherlands, this alliance between Amsterdam, Rotterdam, The Hague and Utrecht wants prospective global investors to consider “a very strong metropolitan region of nearly eight million people” without losing sight of the individual cities. “It is surely a size that is interesting, while our criteria are that we are searching for investors that can bring us quality,” he says. Van der Zande continues: “We want Holland Metropole to be in the top-five investment destinations in Europe, but it is a delicate balancing act. We see this as a common alliance, but we say to the cities, please keep branding yourselves individually.” Van der Zande points out that Holland Metropole, which was launched at MIPIM 2016, is also a collective answer to longerterm trends in urbanisation, demographics and technology: “One of the issues is that we have a joint agenda for the next three years that addresses affordable housing,

“Everyone looking at the map of the world and how it’s changing fast should be smart enough to understand that joining forces is a good thing” Bob van der Zande, City of Amsterdam technology and the impact on human behaviour and city development. How should the cities respond to the mobility shifts when there are fewer cars and you have a lot of public space you can use in a different way? Within the context of urbanisation, we’re all looking for what we call good density, with a mix of people and amenities and very well designed public space, and where connectivity is key. We hope in the collaboration to at least speak the same language about what are the issues and the possible answers. And can we in a smart way join forces?” According to van der Zande, a joint strategy and budget for decision-making around infrastructure, as well as the necessary legal structure, should be possible in 10 years, although the political will for this to happen is pivotal. He adds: “Everyone looking at the map of the world and how it’s changing fast should be smart enough to understand that joining forces is a good thing.”

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“We are very pleased to become part of BARCELONA CATALONIA as we want to be very close to our customers and it is a perfect gateway into Europe and has an outstanding pool of local talent” Fred Pattje, AMAZON Fulfillment Regional Director Spain and Italy

The sharing economy

NEW DEAL

AMF’s Mood Stockholm

A new way to work, rest and play Millennial attitudes to ownership have seen major shifts towards the so-called sharing economy. But it is not just the digital generation who are influencing new real estate models, Mark Faithfull discovers

HE SHARING economy is one of those catch-all phrases that has come to reflect the aspirations and realities of a generation brought up with too much stuff, not enough space, digital immersion and career prospects that lack the permanence of stable employment and the generous pensions enjoyed by their grandparents. The results can be seen in all walks of life, from the gradual shift from residential ownership to rental models in purchase-dominated markets such as the UK, the travails of retail centres as spend increasingly shifts towards experience, and the demand for coworking hubs and lifestyle-oriented workspaces. It is even evident in the investment sector in the form of crowdfunding for startups. And it is the driver of the corporate monoliths of the 21st century — Facebook, eBay, Uber and Airbnb — all of which have leveraged non-ownership of inventory to disrupt and ultimately dominate their sectors. In fact, the sharing economy is driven by numerous, complex factors. Urbanisation, the

rise of the knowledge economy, the digital revolution, aging populations and shifting ethnic demographics are all at play too, as is the ongoing fall-out from the crash of 2008 and the political bite-back by voters around the world. At the forefront of change are those cities most heavily influenced by this confluence of factors, notably tech centres such as London, Berlin and Stockholm. In the latter, this change in aspirations is being reflected in the major regeneration work being carried out by AMF Fastigheter. The property investment and development company is reshaping a large section of the Swedish capital with a retail-led series of developments — offices, hotels, a small residential component, public spaces and innovative technology hubs — that leverage the city’s growing reputation as a base for creative startups. At the concept’s heart is Urban Escape Stockholm, a 130,000 sq m mixed-use development anchored by shopping mall Gallerian, plus 62,000 sq m of offices and two lifestyle hotels. These are linked by four streets, surrounded by two

public squares, to be connected at sky level with 3,500 sq m of public roof gardens. Adjacent to this is Epicenter, which opened in January 2016 and comprises 5,000 sq m of co-working space for the digital and innovation sectors, with members including Microsoft, Tictail, Splay and Star Stable. Google for Entrepreneurs is also technology partner. Epicenter opened a second, larger branch in AMF Fastigheter’s Mood Stockholm in the autumn, adding more than 11,000 sq m of space. “We recognise that a single development or building is only one element of the larger urban picture. To maximise value, we need to maximise the value and vibrancy of the neighbourhoods in which they sit,” says Mats Hederos, AMF Fastigheter’s CEO and acting head of business area Stockholm City. “To put it simply, if the city thrives, our properties will thrive.” US-headquartered Gensler believes that such examples are part of a more pervasive trend. The architecture and design firm notes that

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Manchester Discuss Debate Collaborate The Manchester Pavilion

Join the conversation #mcrMIPIM

The sharing economy developers are transforming commercial office buildings as they refocus on their tenants’ need to recruit a younger, more creative and collaborative workforce. This means buildings that put a premium on sustainability, wellness, loft-like spaces and locations that are active, transit-friendly and walkable. This in turn suggests another big shift, with office buildings less of a stand-alone real estate product and more a part of mixed-use developments. Such principles have also spread to what are often dubbed co-living complexes, such as those from specialist developers WeLive and The Collective, which recently opened Old Oak in London, designed by PLP Architecture. These apartment blocks in urban locations include high-spec studio rooms with kitchenettes, en-suite bathrooms and technology included, while lounges, dining rooms and leisure facilities are available for free or for hire. Although targeted at young professionals fresh from university, such living spaces could also suit the growing population of senior citizens, according to architect Matthias Hollwich, co-founder of New York-based Hollwich-Kushner (HWKN). The HWKN director believes that current housing options for older people, from retirement communities to nursing homes, are “storage devices” and feels that co-living complexes would present a much better solution. “I believe we need a whole new attitude to how we treat society in relationship to ageing,” says Hollwich, whose practice is collaborating with WeLive. “We as architects and planners have a responsibility to make a big difference, to activate communities so that people don’t become lonely. WeLive is looking into serving the millennials, but it goes full circle. I think it’s the perfect product for the boomers, because their interests are very similar — about experiences, about community, about safety and security.” While Clara Maguire does not challenge these influences, the head of growth at retail technology test vehicle The Dandy Lab says she does not favour the term ‘sharing economy’. She reports that The Dandy Lab experimented with ‘fractional use’ within its most recent store at Spitalfields, London, allowing brands to hire areas of the store right down to hanging space. However, Maguire says that, in fact, the changes are part of a “fourth industrial revolution” driven by technologies such as 3D printing. “With localised production and an on-demand economy, the way people work, live and spend their time will change profoundly,” she says.

NEW DEAL

The Collective’s Old Oak London development

The Dandy Lab’s most recent ‘fractional use’ store in London’s Spitalfields “Assets will be less about physical and more about differentiation and specialisation.” A nother company aiming to capitalise on shorter, less permanent requirements for retail space is short-term leasing

“We need a whole new attitude to how we treat society in relationship to ageing” Matthias Hollwich, Hollwich-Kushner

specialist Appear Here. Chief marketing officer Elizabeth Layne says that pop-up lettings have rapidly evolved from a needsbased practice, largely to fill vacant space, to play a more strategic role. While pop-up malls Boxpark and Bikini Berlin are probably the best-known examples, Layne points to Link Street in Birmingham in the UK. The project was created by Hammerson and Appear Here as a short-term leasing corridor to join the new retail offer around the city’s central New Street station and the established Bullring shopping centre.

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The sharing economy

NEW DEAL

“The way people work, live and spend their time will change profoundly. Assets will be less about physical and more about differentiation and specialisation” Clara Maguire, The Dandy Lab “This is a retail and leisure area designed for constant change and with its catchment very much in mind,” she adds. “The idea is to attract people and then make sure they come back again and again.” Coupled with this is the ability to attract new brands, online players and, potentially, overseas retailers to test their propositions in a simple, low-risk way. Layne stresses that this new wave of retailers is unimpressed with 50page lease packages and instead find online booking, price transparency and agreements that rarely go beyond two pages much easi037_RM er to digest. APPLI_PV_PIM

Link St “A brand out of New York wanting to open a pop-up in London is going to find this sort of process much less intimidating,” she adds. “In these new models, we cut out intermediaries and legal speak and we’re also moving towards a peer ratings system, which echoes the ratings users see for other online bookings.”

RELATED CONFERENCES & EVENTS AT MIPIM New ways of working, new production tools: what is the impact on office buildings? Tuesday 14 March – 17:45 - 18:30 New Deal Room (Palais 3) How do new economic models shake the RE market? Thursday 16 March – 17:45 - 18:30 New Deal Room (Palais 3)

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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

WHERE? 2 MAIN THEMES so that all your questions, needs and objectives will be addressed! 1. Discover and plan your MIPIM 2. Meet, greet, relax and connect easily

MAKING IT THROUGH YOUR 1ST MIPIM

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

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

WHEN?

13-17 March 2017, from 09.00 to 19.00

Architecture

NEW DEAL

Umbrellahaus, Chapman Taylor’s modular housing system

Back to the future Could modular design and a return to traditional materials such as timber help to deliver buildings that are sustainable, flexible and future-proof? Peter Clucas investigates

HE INTERFACE between architecture and construction has always been a challenging one — the clean, climate-controlled design studio is a far cry from your average wind-, rain- and sand-swept construction site. But through modular design, old and new materials and techniques are coming together to realise modern buildings. Modular design is not new. Stone buildings were often constructed from off-site carved pieces. Joseph Paxton’s masterpiece, the Crystal Palace in London, comprised prefabricated frames, and the Bauhaus school in Germany promoted standardised design wherever it could. For many years, modular components such as bathrooms have been used to speed up the construction process. And now architects Chapman Taylor have developed Umbrellahaus, a modular housing system. “Umbrellahaus is aimed at the young and employed who face little prospect of acquiring a home in the UK,” says a spokesperson for Chapman Taylor. “Modules range from onebed to three-bed family units and provide a choice of homes to reflect peoples’ ability to pay and the different stages in their lives.” The urge to experiment with new building materials has been a constant theme throughout history. Rome’s Pantheon is

built with volcanic rock, which produced lightweight concrete, and the development of iron and steel in the 19th century allowed bigger spans and taller buildings than ever before. Today, computer programmes and BIM (building information modelling) allow architects and engineers to fi ne-tune their designs to get the most out of the materials available, while 3D printing enables them to model their designs quickly and effectively. But with Formula 1 teams building their 2017 car mock-ups almost entirely from 3D printed components, can these techniques be applied to construction? DUS in Amsterdam says yes. The Dutch architect is leading a consortium of engineers and technologists in the construction of 3D Print Canal House — a full-scale building that is pushing the boundaries of large-scale 3D printing to the limit. “It’s a publicly accessible project that looks not only at the printing techniques but at

“Umbrellahaus is aimed at the young and employed who face little prospect of acquiring a home in the UK” Chapman Taylor

the development of new bio-based, sustainable and recyclable materials,” says Hedwig Heinsman, co-founder of DUS. She explains that the ever-evolving project has now developed three kinds of components: 3D printed plastic components; totally recyclable 3D printed moulds for concrete components; and hybrid components, where the plastic is filled with concrete or insulation material. The 3D Print Canal House, which will be complete in 2018, has attracted worldwide attention, including a visit from US president Barak Obama. Whereas DUS is using plastic as the 3D print medium, in Shanghai, China, WinSun Decoration Design Engineering Co has developed a giant 3D printer that prints in concrete. This has enabled the company to print complete concrete buildings in just a few hours. 3D printing is still in its infancy, especially on such a large scale. But a technology that is far from new is the use of timber as a building material. Cross-laminated timber (CLT) is now replacing concrete and steel. Its lightness, strength and sustainability credentials are leading to its rapid adoption in largescale projects. According to Waugh Thistleton Architects, its project in Dalston Lane, London will become

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NATURELLEMENT DIFFÃ‰RENT

www.catella.fr

Architecture

NEW DEAL

President Barack Obama on a visit to DUS’ 3D Print Canal House in Amsterdam

“As the strongest timber advocate at JLL, I’ve been exploring timber for some of our large residential projects in London” Ashley Perry, JLL the tallest building of its kind in the UK. Moreover, it is estimated that the 121-unit development, which is currently under construction, will use more structural timber than any other project in the world, making it the largest CLT project globally. Weighing only 20% of an equivalent concrete building, this construction technique is ideal for the Dalston Lane site, which is constrained by its proximity to a future Crossrail underground-railway route. Ashley Perry is senior project manager at JLL Project Management. “We are working with architects, engineers and developers to ensure we explore innovative solutions, particularly with some of our public-sector and private rented-sector clients,” he says. “There is the potential for DFMA [design for manufacture and assembly] to shorten programme and achieve rents/income more quickly. As the strongest timber advocate at JLL, I’ve been exploring timber for some of our large residential projects in London, to fully understand the opportunities and challenges that mass timber provides.” Perry adds: “There is an established supply chain for timber-ready contractors. If we are going to change the way we build in the UK,

education is required, but also patience. Large contractors like Skanska have innovation hubs where they lead industry thinking, so it’s all about collaboration and sharing knowledge about what increases efficiency on site.” There is no doubt that some architects and designers are pushing the boundaries of new technology. And it is clear that much higher levels of collaboration are required in this area than in traditional construction. In an industry that is increasingly litigious and strewn with lawsuits against architects who have attempted to push the boundaries of innovative construction techniques, the

imperative to evolve will always be tempered by conservatism. Alongside innovation, we must find new relationships between clients, their advisors and contractors. The case of DUS’ 3D Print Canal House and Chapman Taylor’s Umbrellahaus are interesting. Both have been initiated as R&D projects, rather than traditional building contracts. DUS’ Hedwig Heinsman reveals that the site for the 3D Print Canal House has already been changed, the original being too constrained. She also says that, although a completion date of 2018 is envisaged, such is the nature of R&D that the final form of the house is yet to be determined. Having invested in its own large-scale 3D printers and even a shredding machine for recycling the plastics used in the process, DUS is committed to innovation. Meanwhile, the inertia in the construction industry means that the majority of projects are still recognisable as 20th century in their use of materials. But as computer modelling techniques continue to evolve and contractors catch up with architects in their use of BIM, we will surely see an acceleration of innovation in the years ahead, driven by the need to build more economically and sustainably.

RELATED CONFERENCES & EVENTS AT MIPIM How to transform and re-use buildings almost to infinity? Wednesday 15 March – 16:30 - 17:15 New Deal Room (Palais 3)

Waugh Thistleton Architects’ Dalston Lane project in London

How to think in advance the cities of tomorrow? Wednesday 15 March – 17:45-18:30 New Deal Room (Palais 3)

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28-29 Nov.

2017 Grand Hyatt Hotel

Hong Kong

mipimasia.com

Expert-led panels and keynotes

A 2-day global leadersâ€™ summit to revisit property fundamentals and rethink retail property perspectives in Asia Pacific.

Networking events Prestigious Awards Gala dinner

Join the Property Leadersâ€™ Summit in Asia Pacific

mipimasia.com

For more information: Asia Pacific Region: Christine LAM clamrmo@netvigator.com +852 2893 0208

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Camille IBARBOURE camille.ibarboure@reedmidem.com +331 79 71 94 05

18/01/2017 10:36

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MIPIM Palais Des Festivals-C14

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MIPIM welcomes its visitors to winning in Turkey Turkish economy continues to grow with all its actors and in all industries. No obstacle along the way haltered Turkey’s growth, nor did it hamper the determination of Turkey to realize investment plans and seize opportunities to reach its targets. Turkey is a safe harbor in the most tumultuous waters of the global economy, and offers a strong future with solid growth.

While MIPIM welcomes its 23,000 visitors from 90 countries, İstanbul will present itself as the hub and bridge that connects 57 countries with a mere 4-hour flight. It also presents a very attractive offer: overseas buyers who spend USD 1million+ for property purchases in Turkey will be granted citizenship, allowing them to fully enjoy the perks of İstanbul as a true local.

Now is the time we set sail to enjoy the wind beneath our wings, make use of robust financing and investment opportunities and invite all potential investors to our land of stability. We aim to connect with investors in İstanbul, in the city that connects continents.

The ancient city of İstanbul awaits you with the investments of the future... The heart of global economy continues to beat in İstanbul...

MIPIM, The World’s Leading Property Market, is once again ready to welcome its visitors representing leading names in construction and real estate business. It will also be a platform for İstanbul to showcase the city and the opportunities it offers.

İbrahim ÇAĞLAR President, İstanbul Chamber of Commerce

İstanbul calls on its investors to win and succeed together.

Find the most profitable way of living in İstanbul - at MIPIM 2017 İstanbul Chamber of Commerce is ready for MIPIM 2017: The brand new İstanbul Pavilion themed ‘two continents, one city’ will promote leading and high return projects in İstanbul and invite its visitors to come and enjoy the perks of the city as a local by joining the citizenship by real estate investment program. Representing 400,000 İstanbul based businesses, İstanbul Chamber of Commerce ICOC is all prepped up to bring a breath of fresh air to MIPIM-The World’s Leading Property Market, to take place between March 14–17, 2017, in Cannes, France. İstanbul Real Estate Pavilion is located in the most prestigious sea shore strip of MIPIM, also hosting the financial capitals like Paris and London. Themed ‘Bosphorus’, the Pavilion will offer breathtaking views of the beautiful Bosphorus strait of İstanbul, connecting the two continents. 23,000 visitors from 90 countries will be mesmerized with the unique views from the city of İstanbul, bejeweled by a splendid selection of mega projects, and will have a chance to get first hand information and details. Follow your İstanbul Dream President of the İstanbul Chamber of Commerce, İbrahim Çağlar said: “We will explain to potential investors how the most profitable and attractive way of living in İstanbul is by purchasing real estate in the city. We will invite investors to İstanbul, to live the İstanbul Dream, in this beautiful city across two continents and the only city in the world with the sea streaming through it.”

Turkish citizenship via USD 1 million investment İbrahim Çağlar highlighted that overseas buyers who spend USD 1 million+ for property purchases in Turkey will be granted Turkish citizenship and added: “İstanbul continues to be a very attractive location for real estate investment thanks to the low price per m2 and offers many advantages. It is never too late to invest in İstanbul: A residential or commercial real estate purchase in İstanbul has dual return potential for the global investor – on one hand the significant return in capital gains and on the other the opportunity to obtain Turkish citizenship through your real estate purchase, by way of the recently effected legislation.” The city that flies you to 57 countries in 4 hours İstanbul will use the “two continents, one city” theme in its MIPIM promotion this year. It will also be highlighted that the city connects to 57 countries with a 4-hour flight and as the historical capital of three empires, İstanbul will continue to be the center of attraction for many years to come.

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Projects

Project

Showcase MIPIM captures the sheer diversity of the international real estate industry. Here is a selection of the projects from around the globe that will be on display in Cannes URBAN ESCAPE STOCKHOLM, Stockholm, Sweden Mixed-use Presented by: AMF Fastigheter URBAN Escape Stockholm is the development of an entire new neighbourhood in the heart of Stockholm. It is a large-scale city planning project, and the most comprehensive to take place in central Stockholm since the 1970s. The development is being carried out in partnership with the City of Stockholm and has become a key part of the development, progress and revitalisation of the city centre. Urban Escape Stockholm is being designed by Lundgaard & Tranberg, Ahrbom & Partner Arkitektkontor, Reflex, White and Wester & Elsner. The site area is 21,215 sq m, and the project will provide 60,000 sq m of offices, two lifestyle hotels totalling 30,000 sq m, retail and restaurant space of 40,000 sq m and 1,000 sq m of residential accommodation. AMF plans to complete the project in 2019. AMF Fastigheter has a long-term objective to transform Stockholm City by encouraging business growth, people’s creativity and future talent to develop. Its vision for Urban Escape is to create new places and spaces where people and companies can thrive.

NEWCASTLE SCIENCE CENTRAL, Newcastle Upon Tyne, UK Mixed-use Presented by: Invest Newcastle NEWCASTLE Science Central occupies a 9.7ha site, making it the largest city-centre development of its kind in the UK, and it will provide a mix of commercial, residential and retail development. The site is a hub where investors, businesses, entrepreneurs, students, scientists and citizens can collaborate, innovate and develop solutions for tomorrow’s cities. The first phase is already complete and fully occupied with the second phase under way. The second phase will include three national centres of excellence, which will lead pioneering research into integrated energy systems, smart data and ageing innovation and technology. The second phase will also bring forward 18,580 sq m of Grade A office space in partnership with Legal & General, 7,432 sq m of state-of-the-art laboratories and Newcastle University’s 6,968 sq m Learning and Teaching Centre. Future plans include 450 homes and a district energy network designed to serve the Newcastle Science Central site and, potentially, the wider area. Inward investors and end users are currently being sought for the site.

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Projects HUMANITI, Quartier International, Montreal, Canada Mixed-use Presented by: Lemay FOLLOWING years of planning and several modifications, COGIR Real Estate and Fonds de Solidarite FTQ have launched Humaniti, a C$200m (€143m) complex of residential (rental and condominium) offices, commercial and a hotel designed by Lemay at the corner of De Bleury and Viger in Montreal’s Quartier International. The project, to be developed over 39 floors, will include a 200-room hotel, 335 rental units, 140 condominiums, 6,503 sq m of office space and 1,858 sq m of retail and commercial space. Users of the new complex will also benefit from an outdoor pool and terrace, underground parking and a fleet of shared electric vehicles. The project’s design provides spectacular views of the St Lawrence River and Mount Royal. The connection between the new Humaniti complex and Jean-Paul Riopelle Square was also key to this design.

GREEN OFFICE ENJOY, Paris, France Mixed offices and commercial Presented by: Bouygues Immobilier LOCATED in the Parisian neighbourhood of Clichy Batignolles in the 17th arrondissement, Green Office ENJOY is an ambitious development of 50 ha, ecologically integrated into its environment and well connected. The building, being developed by Bouygues Immobilier, has a unique and innovative timber and concrete structure that provides an office building of 17,400 sq m. Green Office ENJOY aligns with the ambitions of the city of Paris to achieve carbon neutrality in 2050. It is an Energy-plus building and will produce 23.5 kWhEF/m²/year of renewable energy (for a consumption of 22.9 kWhEF/m²/year) owing to the installation of 1,700 sq m of solar panels and to its connection to the urban heating network. The project’s use of wood also avoids the emission of 2,900 tonnes of carbon, which is equivalent to planting 1,500 trees. The design, which was conceived by architectural practices Baumschlager Eberle and Scape, gives office floors large flexible spaces which open out onto Paris skyline thanks to an interior patio and three double-height loggias. The project is being carried out by SCI Batignolles O9, a 50:50 joint venture between Bouygues Immobilier and Caisse des Depots, which commenced work in November 2016 with opening scheduled for September 2018.

THE WARSAW HUB, Warsaw, Poland Mixed-use Presented by: Ghelamco Poland GHELAMCO’s Warsaw HUB, scheduled to open in 2020, will be a transport hub and is intended to be the heart of the network, meeting all the needs of modern companies. Its 113,000 sq m will host state-of-the-art office space, a conference centre, 3and 4-star hotels, as well as numerous retail and service outlets. The office complex will provide a new urban area and will comprise three skyscrapers — two 130 metres high and the other 85 metres. These will form a consistent frontage along the Towarowa street and will be visible from many places in Warsaw. The buildings will be characterised by modern architecture dominated by simple glass forms. One of the project’s innovations will be the MeetDistrict concept, a co-working space, in which even the smallest companies will find a place in a modern office building. The building will also be home to The Heart, Warsaw, a business accelerator, connecting more than 100 startups with banks and global corporations. preview magazine I February 2017 I www.mipim.com

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BE PART OF THE RETAIL REAL ESTATE WORLD ATTEND MAPIC

The leading international retail real estate market

15-17 November 2017 Cannes, France mapic.com

8,400+ participants 2,100+ retailers 2,500 developers 1,000 investors 78 countries

Join our other events to develop your business in specific territories

25-27 April 2017 Moscow, Russia rex-expo.ru

Summer 2017 China mapic-china.cn

16-17 May 2017 Milan, Italy mapic-italy.it 19-20 September 2017 Mumbai, India indiaretailforum.in

Projects TOKYO WORLD GATE, Tokyo, Japan Urban development Presented by: Mori Trust

GALACTICA, St Petersburg, Russia Residential Presented by: Etalon Group

TOKYO World Gate, located at Toranomon 4-chome, Minato Ward in central Tokyo, is a large-scale, complex re-development of a site area of approximately 16,200 sq m and will have a floor area of 195,000 sq m. The Toranomon area, where the project site is located, is home to several prominent embassies and a number of multi-national companies. This plan will introduce functions for cultivating and supporting Cool Japan, an initiative for industrial development that uses regional resources and supports overseas expansion. The project will also support the daily lives of people from abroad by equipping the facilities to be an international business base. As part of the scheme developer Mori Trust will provide about 3,000 sq m of green space incorporating the 300-year-old Fukishiro Inari Shrine. The network of pedestrian sidewalks will also be improved. The development is scheduled to be completed in 2020.

GALACTICA is Etalon Group’s flagship project in St Petersburg. The 838,000 sq m project is being developed on a 38ha site and has been designed to create a new comfort-class residential district. The project is situated by Moskovsky Prospect and Naberezhnaya Obvodnogo Kanala, just south of central St Petersburg, a prestige residential and business location. The site is also close to the Frunzenskaya, Moskovskiye Vorota and Baltiyskaya metro stations. Galactica will consist of 32 comfortclass residential buildings ranging from nine to 19 storeys high, and the entire development will contain over 10,000 apartments ranging from small studios to large three-bedroom flats. Social infrastructure is also being developed, including three schools, nine pre-schools and two office buildings. The second phase of Galactica will be built following concepts developed by Finnish architectural studio T-Architects, which won Etalon’s international design competition in 2014. T-Architects propose abandoning the city block approach by creating an accessible public space with cafes and stores surrounding the historic building in the centre of the Galactica project.

FLAME UNIVERSITY, Pune, India Mixed-use Presented by: Blocher Partners

ESAS 01 BURDA SHOPPING MALL, Adana, Turkey Retail Presented by: Esas Properties

FLAME University lies near the city of Pune and is a private institute of higher learning with a strong focus on liberal education. Student numbers have risen greatly since its foundation in 2003 so the campus is in need of expansion. The masterplan expands the campus by 4,000 sq m to include future faculties and additional functions with new provision such as apartment buildings, an auditorium and sports facility distributed in an open layout which takes environmental aspects into account.

ESAS 01 Burda is a shopping mall located in Adana, Turkey, being developed by Esas Properties. Esas 01 Burda will provide 15,000 sq m of retailing, 4,500 sq m of dining with cafes and restaurants, a 2,200 sq m entertainment centre and a 2,300 sq m, 10-screen cinema complex. With a total area of 140,000 sq m and parking for 2,500 cars, Esas 01 Burda will attract tourists as well as local people. Esas 01 Burda, is located close to public transport facilities such as the airport, bus station and train station and 3 million people can reach Esas 01 Burda within 40 minutes. The estimated cost for this project is $150m (€140m).

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MORE C-SUITE EXECUTIVES MAKE TIME TO READ THE WALL STREET JOURNAL THAN ANY OTHER PUBLICATION. Be seen by the world’s most influential people. Make time to advertise in The Wall Street Journal.

For more information, please contact Rob Monaghan: robert.monaghan@wsj.com | +44 (0) 207 572 2124

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Offices

All change The digital age is revolutionising working practices, ofﬁce environments and corporate cultures, leading many to question whether there is still a future for the traditional ofﬁce building. Graham Parker reports

HE OFFICE workplace is changing. Technology is opening up new ways of working at the same time as a new generation of employees, with different aspirations and expectations, enters the job market. The result is the biggest challenge to the status quo since

open-plan designs replaced cellular offices in the mid-20th century. Occupiers are demanding flexibility, both in terms of building layout and in the terms under which they lease space. The challenge for the providers of space — the developers and investors — is to meet

OVG Real Estate’s The Edge office scheme in Amsterdam

“A different-shaped workforce needs different real estate” Tom Carroll, JLL

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Offices “Questions like staff retention and productivity are now far more important for occupiers — and our role as a developer is to deliver space that can achieve that” Harry Badham, AXA IM – Real Assets

this aspiration while maintaining income flows and protecting capital. Tom Carroll, director of EMEA corporate research at JLL, explains: “Digital disruption is changing the game for a lot of sectors, with new champions emerging. It will impact even the professional sectors and financial services. Organisations are changing, employing an increasing number of ‘contingent’ workers as they turn to outsourcing to draw on specialist skills.” And he concludes: “A different-shaped workforce needs different real estate.” Carroll’s colleague Peter Hensby, JLL’s director of EMEA capital markets, believes this is already being reflected in the market. “Future-proofing property has become one of our top conversation points with investors, and it reflects the fact that people are now taking it seriously,” he says. “They are strategising what their portfolios are going to look like in 10 years’ time.” Enlightened investors are waking up to this change. Harry Badham, head of development, UK, at AXA IM – Real Assets, notes: “The workplace is not as static as it was, and not as formal. Questions like staff retention and productivity are now far more important for occupiers — and our role as a developer is to deliver space that can achieve that.” So what is all this going to do to the physical layout and the look of offices? Mike Gedye, executive director at CBRE, says: “The tradition of one-seat, one-person has gone away. We’re creating a mix of places where people can fulfil their roles, with task-based working enabled by technology and flexibility of design.” That means fewer serried ranks of cubicles and more break-out areas where people can exchange ideas informally. It means more quiet areas for intensive tasks and a greater emphasis on wellness. And it means a quality food-and-beverage offer, along with exercise facilities and green spaces for quiet reflection. However, as Digby Flower, chairman of UK and Ireland, and head of London markets at Cushman & Wakefield, points out, that does not mean office buildings are going to be used any less intensively. He believes typical occupancy ratios have gone up by a third in the past 25 years, but adds: “As you increase density, you have to give more back to people in terms of break-out spaces, terraces and gardens.” And Flower expects to see greater diversity in terms of office occupation. “Most big occupiers will have core buildings with long leases and then take the rest from serviced-office or co-working providers,” he predicts. JLL’s Carroll forecasts that, by 2030, as much as one third of all office space could be given over to short-term uses, including co-working operations: “We will see new players enter the market to meet these needs, creating a more diverse market with core holdings of high-quality, high-specification space in top locations, providing the preview magazine I February 2017 I www.mipim.com

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Offices optimal user experience to attract and retain the best people. And that will be supplemented by different types of space held on different terms.” Importantly, these two types of space do not need to be physically distinct. Canary Wharf’s Level39 incubator space in London was an early example, but large occupiers are now looking to give part of their space over to startups and business partners working on specific projects. However, CBRE’s Gedye warns that this may fall foul of traditional leases, where ‘alienation clauses’ often prevent tenants from sharing space or passing it on to third parties. “Landlords need to look at the rise of co-working and collaboration,” he says. “In the end, it’s certainty of income that matters, and therefore they need to embrace flexibility of tenure.” JLL’s Hensby says: “Perhaps there will be a trade-off with higher rents for more flexible terms. Some institutional investors who prefer secure income streams may have to address this issue.” One operator that has made a virtue of

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“The tradition of one-seat, one-person has gone away. We’re creating a mix of places, with task-based working enabled by technology and flexibility of design” Mike Gedye, CBRE

occupiers’ short-term horizons and everchanging space requirements is Market Tech, which operates a portfolio of office buildings around London’s Camden Market. Some are run as co-working spaces, where a desk or a room can be rented by the day, week or month, and others are more conventional multi-let buildings. “Our business has always been all about flexibility,” says chief executive Charles Butler. “Eighty per cent of our occupiers are on weekly leases, although the average stay is three-and-a-half years.” Butler says co-working means different things to different people but, at Market Tech, it is always focused on flexibility and providing services in an all-inclusive package.

“We want to work with people as they grow,” he adds. “Flexibility isn’t just about lease lengths — it’s about the space you occupy as well.” The Market Tech portfolio was recently refinanced with AIG, which for Butler proves that short-term income need not be uncertain. “Our track record shows that our income flow is resilient,” he says. AXA’s stable of Assembly developments also reflects this new desire for flexibility, firstly with the reconfiguration of an existing office complex in Hammersmith, West London and now with a new-build scheme in Bristol, in the south west of England. “Everyone wants value from their office,” AXA’s Badham says. “But perceptions of

WELCOME RECEPTION Tuesday 14 March from 19.30 Carlton Hotel, Cannes Open to all MIPIM participants

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Offices ON THE CUTTING EDGE MID-2015 saw completion of The Edge, the world’s most sustainable office building, according to the BREEAM certification system. Located in the Zuidas business district of Amsterdam, the Netherlands, The Edge was developed by OVG Real Estate in partnership with the principal occupier Deloitte. Today, the building is entirely leased, also accommodating AKD, Salesforce, Henkel, Sandvik and Edelman. BREEAM awarded the building its highest score ever for a new office building. Its sustainable innovations include a connected lighting system developed by Philips, which monitors and responds to daylight, movement and temperature; and solar panels on the façade. The overall design also makes the building and its materials extremely efficient. The Edge is characterised not only by its sustainability but also by its high degree of intelligence due to the innovations and technology built into it. All employees, for example, can regulate the temperature and light over their individual workplaces by means of an app on their smartphone. The building’s facility managers then use this information to regulate the temperature in all the rooms, as well as to organise cleaning activities. OVG Real Estate CEO Coen Van Oostrom says: “We are extremely proud that The Edge is such a pioneer in contemporary real estate development. This building demonstrates what the future of real estate development can look like when sustainability and innovation are the main focus.” The Edge was designed by Ron Bakker and Lee Polisano of PLP Architecture in London. It is owned by Deka Immobilien Investment.

AXA’s Assembly developments reflect the growing desire for flexibility

what value is varies between occupiers.” One trend he has noticed is that leasing decisions are no longer the sole preserve of property managers: “More and more HR people are driving leasing decisions. Questions like staff retention and productivity are now far more important.” That means designing buildings with wellness and the quality of the office environment in mind. For example, Assembly Bristol will have opening windows. “People are happier if they feel in control of their

environment,” Badham says. And this flexibility is reflected commercially too. “We’re relaxed about tenants reconfiguring space, and our leases specifically allow businesses to share space with partners,” he adds.

RELATED CONFERENCES & EVENTS AT MIPIM Occupiers’ summit Wednesday 15 March – 08:00-10:30 Gray d’Albion Hotel - Salon 4 Saisons

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How dextrous are you? Play our Swiss Game and win a Swiss Army Knife!

Swiss real estate opportunities at stand R7.G1

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FOCUS ON HEALTHCARE REAL ESTATE A dedicated exhibition area A dedicated networking area Conference sessions discussing the future of healthcare real estate investment EXHIBITORS & PARTNERS

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FOCUS ON LOGISTICS & INDUSTRIAL PROPERTY 400m2 of exhibition area A dedicated networking area Conference sessions exploring the importance of logistics for growing regions EXHIBITORS & PARTNERS

Logistics

Logwin Air & Ocean’s shop returns facility for retailer Peek & Cloppenburg at SEGRO Logistics Park Warsaw

Many unhappy returns How is the rise of e-commerce — notably the phenomenon of merchandise returns — affecting manufacturers’ and retailers’ distribution facilities, staffing levels and networks? Paul Strohm investigates

CCASIONS concocted chiefly to boost retailers’ turnover, such as ‘Black Friday’ and ‘Cyber Monday’, as well as longer established earners — Christmas, for instance — precipitate an orgy of consumption, a growing proportion of which now takes place online. Whether you take the view that retailers only have themselves to blame, or that it would be a nice problem to have, the seasonal surges in expenditure brought about by these events stretch the logistics infrastructure, providing a regular test of its ability to cope with demand peaks. But it is not just the outward flow of goods with which logisticians must contend. For some businesses, as many as half of the items sent out will be returned by would-be purchasers. Frequently, this is because it is now customary for consumers, particularly of shoes and clothing, to order several of the same item in different colours or sizes in order to find the one that is just right — it’s that “does my bum look big in this one?” moment. As a result, goods being returned through the e-commerce supply chain are no longer an intermittent event resulting from faults or mistaken purchasing, as is traditionally the

case with bricks-and-mortar stores, which have actively discouraged returns. This relatively new, high-volume returns phenomenon has been facilitated by ‘free returns’, which encourage customers to over-order, because to do so incurs no additional cost when unwanted items are sent back to the retailer. Opinions vary as to the proportion of goods returned. “For clothing retail, it can be 40% to 50%. It’s a big issue,” says Jon Sleeman, JLL’s director of UK logistics and industrial research. “Customers in aggregate can be retailers’ biggest supplier. That is quite a painful situation to be in.” Ekaterina Advonina, CEO of Delin Capital A sset Management (DCA M), adds: “Typically, for online fashion retailers, every third package is returned, which obviously creates a massive cost, not only for transportation but for processing.” “It is a particularly major issue for fashion retail,” agrees Andy Gulliford, chief operating officer of industrial developer Segro. “Retailers can completely lose a season if they can’t get returns back into stock quickly. You have got about nine weeks for a fashion season so, if you lose three or four weeks

“Typically, for online fashion retailers, every third package is returned, which obviously creates a massive cost, not only for transportation but for processing” Ekaterina Advonina, Delin Capital Asset Management

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Logistics on the original sale and trying to get an item back out again, you are creating ‘sales’ stock.” Sleeman adds: “Retail supply chains are traditionally set up to push things out to customers, from ‘upstream’ to ‘downstream’. Anything coming back in the other direction is a pain to deal with, because it’s something that the supply chain is not really set up to do. Returns, which have grown with ecommerce, are part of these generic reverse flows. It’s a difficult process to deal with and adds significant costs and reduces retailer margins, which are under pressure anyway.” Some retailers have tried to reduce the proportion of returns by providing more detailed product descriptions, brand-specific sizing and virtual fittings to enable customers to increase the accuracy of their choices. But not everyone wants to do that. Many online shoppers enjoy the browsing process. “Shopping in this way is almost a hobby for some people,” says Ian Worboys, chief executive of logistics developer P3. “Steps to reduce the level of returns can be as accurate as you like, but many consumers want to see and feel the garments they are buying.” Segro’s Gulliford explains that retailers deal with returns in two different ways. Some use their existing ‘out-shipment’ facility. “I think that is leading to a greater need for mezzanine areas,” he says. “Returns obviously come back messy, possibly damaged and in need of repackaging.” The second approach is to employ third-party logistics operators (3PLs) that have specialist returns divisions, such as iForce, Clipper or Doddle. Doddle works for New Look and ASOS, provides a click-and-collect service and often has small shop units at railway stations, which also include returns points. If a retailer handles returns in-house, whether it uses the same facility in which fulfilment occurs or a dedicated facility is partly determined by volumes. “Most [dedicated] returns requirements are ‘mid box’: 30,000 to 75,000 sq ft [3,000 to 7,000 sq m],” Gulliford says. “They also tend to be located in urban locations, which means that people are available to work there.” Returns centres are more staff-intensive because there is less scope for automation, which means a greater requirement for staff facilities and car parking. Retailers will often try to site their dedicated e-commerce returns facility close to their fulfilment centres to make it easier to feed returned goods into the supply chain for

Returns centres are often staff-intensive

“Steps to reduce the level of returns can be as accurate as you like, but many consumers want to see and feel the garments they are buying” Ian Worboys, P3

redistribution. “A returns centre is a very specific building,” says P3’s Worboys. “When an item is returned, it has to be visually inspected to see if has been worn or used. It is checked for smell to see if it’s got perfume on it, and is examined for lipstick on shirt collars or scratches underneath shoes. They get so much stuff sent back to them, but it has to be done and it’s very intensive.” There is a school of thought that sees returns centres emerging as a new and distinct asset sub-class. “In the same way that we have seen last-mile logistics become a separate type of asset sub-class in itself, I really can see a niche for reverse logistics buildings emerging,” says Jack Cox, who heads CBRE’s EMEA industrial and logistics capital markets team. Outwardly, the buildings themselves would resemble fulfilment centres, Cox says, but with fewer loading doors and more car parking. The chief differentiating characteristics of these assets would be more mezzanine space, better quality LED lighting and more efficient air-handling systems to cater to the larger numbers of staff employed. For the same reason, there would be more allocation to social and amenity facilities. Currently, canteen facilities can be deficient, JLL’s Sleeman adds: “I don’t think a lot of warehouses have extensive canteen facilities. Some will have, but they don’t stand out as

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Logistics 3PL Hermes handles 60 million returns in Hamburg

Segro’s Andy Gulliford: returns are “a global trend” being fantastically served with that sort of facility. But I think that’s something that people will start to look at, because the competition-for-staff issue is becoming quite acute.” Although the returns process is more labourintensive than the outbound-fulfilment operation, one compensation is that it does not usually require as much floor-loading capacity, Segro’s Gulliford points out. This, he adds, enables the use of mezzanine floors: “Where a retailer uses a corner of its fulfilment centre for returns, mezzanines are required. So we need at least floor strengthening and the height to allow a mezzanine level to be constructed, even if it is not part of the base specification.” Car parking and traffic management is

JLL’s Jon Sleeman: “Customers in aggregate can be retailers’ biggest supplier”

another issue that needs to be considered. “The management of cars in volume is completely different to HGV movements, and consideration is needed on shift times and the overlapping of shifts as cars both leave and arrive, to avoid peak congestion,” says JLL’s Sleeman. “The entrance to the warehouse can be a big problem, especially for facilities that are open 24/7,” agrees DCAM’s Advonina. “There can be two staff shifts that can share the facility, so it’s important to ensure that there are no bottlenecks at the entrance.” People’s perception of returns centres’ ability to generate traffic can also be a problem. Amazon recently announced that it was giving up on its return-centre project in Horni Pocernice on the eastern outskirts of Prague. Amazon’s Czech spokesman, Karel Taschner, said that the company could not wait any longer for the planning hurdles to be cleared. The e-giant had chosen P3 to develop a new 40,000 sq m warehouse for returned goods at its P3 Prague Horni Pocernice development. The centre would have created 3,000 jobs. Amazon had been looking to relocate its existing returned-goods centre in Dobroviz on the other side of Prague since 2013. But Horni Pocernice’s residents feared that traffic would increase if Amazon’s plans were approved. However, the developer argued that several smaller warehouses would be built in the park instead, which would also increase traffic. Similar protests in Brno also brought Amazon’s plans for that city to a halt, says P3’s Worboys “Returns centres as a whole are very good for our business and communities,” Worboys

“In the same way that we have seen last-mile logistics become a separate type of asset sub-class, I can see a niche for reverse logistics buildings emerging” Jack Cox, CBRE adds. “If the Czech Republic is so antigrowth, they don’t deserve to have it. “ The Amazon example, which would have served the company’s returns function for the whole of Europe, would have been one of the largest returns centres in Europe, and certainly one of the largest dedicated centres. 3PL Hermes, part of the German Otto group, has one of the largest existing centres for outsourced returns, which is located in Hamburg. The facility employs 1,100 people and has the capacity to handle 60 million items per year. Across Europe, reports Segro’s Gulliford, returns are “a global trend that we are seeing across the portfolio”. He sees the same ecommerce themes playing out, including the returns phenomenon: “While the UK is further ahead, the same themes and, broadly, the same occupiers and 3PLs are common to France and Germany and Poland, the markets in which the company is active.”

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How do new consumer behaviours reshape Last Mile delivery? Thursday 16 March – 14:00 - 14:45 Asset Class Room (Palais -1)

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FOCUS ON HOTEL & TOURISM

Connect with hospitality and property industry professionals in MIPIM’s dedicated Hotel & Tourism area, identify new projects and hotel development opportunities, and promote tourist locations and infrastructure. MIPIM offers the largest and most diverse source of capital worldwide for hotel and tourism development.

800m2 of exhibition area A dedicated networking area Conference sessions exploring the challenges currently facing the hotel and tourism industry The latest hospitality projects and solutions Dedicated conferences on Hotel & Tourism: Where are the gold nuggets of the tourism industry? How can investing in hotels create good returns? How to rethink hotels facing millenials’ expectations?

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Hotel, Tourism and Leisure

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Hotels

Staying in the game The sharing economy is disrupting accommodation markets across the globe, with companies including Airbnb and Onefinestay forcing hotel operators to rethink their expansion plans and future strategies. Chris Bown reports

CCOMMODATION-sharing website Airbnb is at the vanguard of a major shift as disruptive technologies blur traditional property divisions. And as the so-called sharing economy impacts many areas of our lives, the hotel sector is well aware that Airbnb is creating some fundamental shifts in where people stay. By allowing individuals to easily market their spare rooms or empty apartments, Airbnb has transformed the accommodation sector. In the last five years, the website has seen its listing numbers grow massively, and its reach spread from US cities to a global presence. Interestingly, while born in the US, it is in Europe that Airbnb has seen the greatest take-up, with Paris now its largest city marketplace and London not far behind.

The reaction of the established hotel sector is best exemplified by a 2015 quote from Greg Marsh, CEO of sharing site Onefi nestay, who said: “First they ignore you, then they laugh at you, then they frighten you, then they join you.” Initially, major hotel group CEOs dismissed Airbnb as insignificant, declaring that people who used the website to find a cheap sofa to sleep on were not their hotel customers.

“First they ignore you, then they laugh at you, then they frighten you, then they join you” Greg Marsh, Onefi nestay

Even in early 2016, some were still maintaining that the migration to Airbnb bookings from hotel rooms was having no impact on their business. But that view is changing. And what Airbnb’s success has exposed is the extent to which consumers’ needs were not being met by the traditional hotel offer. “There’s a part of the market that doesn’t want a hotel room,” says investment advisor Andrew Harrington, joint founder and partner at AHV Associates. “But there’s absolutely no reason why hotel product shouldn’t appear to meet that market.” He points to innovations such as Amsterdam-based Zoku, which is combining studio apartments with workspace and is ideal for the long-stay business visitor. Hotel groups, too, have been reacting. Many brands are now adding a local twist to their

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Hotels hotel interiors, while the big groups have grown affiliate brands that promise variety alongside a uniformity of quality of service. Marriott’s Autograph, Curio from Hilton and Ascend from Choice all offer uniquely different properties, albeit that they come with the reassurance of global brand parentage. Meliá Hotels is also rising to the challenge according to vice chairman and CEO Gabriel Escarrer. He says: “With regard to the impact of disruptive models based on the socalled collaborative economy, Meliá will enhance its brands, offering a better and more personalized service, and also enhance the superior and luxury hotel segments, while also remaining committed to maintaining its leadership in resort hotels, an area in which vacation rental is not as competitive.” So has Airbnb simply stolen accommodation demand? Or is it actually creating new travel opportunities? With few hard metrics, supporters and opponents of Airbnb have been swapping anecdotes, but some evidence is now emerging. A recent study drawing together the combined resources of agent Colliers International, 038_RM DATABASE_PV_PIM Hotelschool The Hague and AirDNA

Jo&Joe from AccorHotels is seen as a brand developed to meet the Airbnb challenge.

attempted to review the impact of Airb&b on the London market. “The hotels sector is strong in London, yet there’s no doubt that the continued growth of Airbnb presents a threat,” says Marc Finney, head of hotels and resorts consulting at

Colliers. “Our research showed that Airbnb demand steadily increased throughout the year and, although, we see a much faster increase in the summer months, this demand continues to increase outside of peak season.”

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Hotels

Pier One in Sydney is part of Marriott’s Autograph collection. The analysis also found that more than half of Airbnb listings in London came from serial listers rather than from amateur landlords. This, says Jeroen Oskam, director of Hotelschool The Hague’s research centre, is worrying: “The uncontrolled expansion of these is not only harmful to the hotel market, but also to city neighbourhoods and the housing market.” In October, Credit Suisse hotel analyst Tim Ramskill presented an update at The Hotel Distribution Event in London, during which he said: “I do feel that Airbnb is having an impact on the Paris market. There is upside risk.” He added that hotel performance in the city had not recovered from the terrorist attacks of early 2015, noting that, while airport arrivals in Paris had improved, hotel bookings had not moved upwards to match. Several accommodation groups have decided to embrace the newcomers. Corporate serviced-apartment operator BridgeStreet signed up to partner with Onefinestay and Airbnb, using their inventory to add to its client offering. “There’s a half-empty, half-full way of looking at the sharing-economy landscape,” says Max Thorne, managing director of JLL’s hotels and hospitality group. “It’s dramatically changing and it’s the consumer that is driving this change. It is taking market share, but it has created additional room nights. There’s no question that the consumer is looking for an alternative.” He adds: “Any operator that can deliver a variance of offerings will do well. And the serviced-apartment sector has a huge opportunity to capitalise.”

“Our industry is boring — we have to change. I saw Airbnb as an opportunity” Kike Sarasola, Room Mate Hotels

The major hotel groups are reacting in different ways. France-based AccorHotels has opted to take stakes in a number of new businesses as it looks to bring new hospitality brands, technology startups and disruptive innovators into its group. In April 2016, AccorHotels bought Onefinestay for €148m, having also taken stakes in Squarebreak and Oasis Collections. It has also broadened its brand offerings, buying a stake in boutique-hotel startup Mama Shelter and in German brand 25hours. Then, in 2016, the group announced Jo&Joe, promising “the best of private-rental, hostel and hotel formats”. Analysts suggest this is the clearest indication yet of a hotel group launching a direct response to Airbnb. In Spain, hotelier Kike Sarasola of Room Mate Hotels has set up Be Mate, giving guests the option of staying in apartments close to his hotels, supported by hotel services. “Our industry is boring — we have to change,” he says. “I saw Airbnb as an opportunity.” Likewise in London, hotel management company Bespoke announced in November that it would offer a similar service from its Bermondsey Square Hotel in London. It will hold keys and provide housekeeping services for Airbnb flats close to the hotel.

At the individual hotel level, property investors have yet to worry about Airbnb’s impact. In Paris, for example, the city’s largest hotel, the 1,025-room Meridien Etoile, was recently bought by new investor Henderson Park for €365m. With issues such as the Marriott merger, political risks and terrorist attacks, investors have more immediate worries. Owners will also be relying on hotel brands to be creative in their marketing. But one area that may well be disrupted by the Airbnb effect is new development. Owen Pritchard, head of advisory services, EMEA at CBRE Hotels, sees a potential issue in cases where a mixed-use development contains both a hotel and new apartments. In such instances, he would expect restrictive covenants preventing flat owners from renting out their properties in competition with the hotel. “It’s a fair assumption that investors will demand these controls,” he says. One thing is clear: the disruptors will continue to upset traditional accommodation models. And if Airbnb has its way, in years to come it will also be the default-booking platform for those looking to make a trip. Watch out Expedia and Booking.com — your opposition is on the march.

RELATED CONFERENCES & EVENTS AT MIPIM Where are the gold nuggets of the tourism industry? Thursday 16 March – 15:15 - 16:00 Asset Class Room (Palais -1) How to rethink hotels facing millenials’ expectations? Thursday 16 March – 17:45 - 18:30 Asset Class Room (Palais -1)

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Retail

Hammerson’s WestQuay Watermark nears completion

The emporium strikes back Shopping isn’t shopping any more — it’s a personalised leisure and pleasure experience. Liz Morrell asks how developers are responding to the rise of the shopping centre as an entertainment destination

ETAIL and experience are two words that are now intrinsically linked. Retailers and centre-owners alike know they need to offer more than just physical goods when trying to tempt customers into their stores. As a result, the ‘experience’ is now key. For retailers, this is about great customer service, digital integration and doing something

“Leisure and entertainment stimulates the senses, creates memories, and gives people something to share on social media and talk about” Justin Taylor, Cushman & Wakefield

extra to persuade shoppers to enjoy the instore experience. But what about the centres themselves? Developers, too, are having to think about the retail experience more than ever before. They are no longer just building stores with a few fast-food outlets thrown in, but full leisure destinations that attract and retain customers to do more than simply shop.

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Retail

The KidZania Firefighters experience in Mumbai, India And it’s that factor that is ensuring physical retail retains its place in customers’ hearts and minds. “Leisure is an excellent footfall driver and has a much wider pull than conventional retail,” says Ross Kirton, head of UK leisure agency at Colliers International. Justin Taylor, head of EMEA retail and CEO of the UK retail and leisure teams at Cushman & Wakefield, says experience is now a vital component of retail developments and schemes. “Leisure and entertainment is an imperative addition to a scheme to entice consumers from their homes, offering a day out that stimulates the senses, creates memories, and gives people something to share on social media and talk about,” he adds. As a result, all aspects of leisure and entertainment are growing to complement the retail offer. “The internet is cheaper and easier,” says Krzysztof Bocianowski, leasing and expansion director for LPP in Poland. “To compete, malls need to offer something that you cannot buy over the internet. It’s not easy to buy leisure — so food and beverage [F&B], and entertainment will grow.” At Hammerson, head of restaurants and leisure Sarah Fox says the amount of space dedicated to F&B in the company’s European portfolio has grown steadily as it

“Nothing can touch trampoline parks for sheer demographic appeal” Peter Brown, Freedome

has embraced the growing trend. F&B now accounts for up to 14% of space within its centres. Hammerson’s latest leisure-led scheme is WestQuay Watermark in Southampton, UK, which opened its first restaurants in December and also includes a luxury cinema. “Customers are spending more time at our destinations, enjoying a full day out that incorporates retail, dining and leisure,” Fox says. Volker Sonnenschein, head of centre management at Apleona GVA Real Estate Advisors, manager of 114 shopping centres across Europe, says it is not just a question of increasing the food offer, but also using F&B to offer new experiences. “Customers want to be inspired by new food concepts with entertainment elements, like show cooking or special services,” he says. And such concepts are becoming more and more extreme in their bid to provide an

unforgettable experience. “We considered a rollercoaster restaurant that glides food and beverages down to guests on a system consisting of stainless steel tracks and roller tracks with loops, steep turns and multi-spiral transport devices,” Sonnenschein adds. The importance of such offers is vital for extending dwell time. “Retail remains a focal part of the shopping-centre experience, though evidence suggests that a strong leisure offer can increase dwell time significantly,” says Mark Simms, head of the shoppingcentre agency at Savills. But leisure is also changing the balance of time spent at such destinations. “The increasing footfall in shopping centres during evenings, when leisure and entertainment outlets are particularly busy, is evidence of how customers are shifting how they spend time in shopping centres, as well as what time they visit and how long they stay,” says Ed Cooke, chief executive of the UK retail property body Revo. So in the race to offer shoppers something new and different, what attractions are developers considering? Recent years have seen an abundance of new concepts introduced into centres, including trampoline parks, child role-playing ‘cities’ and ‘escape rooms’

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Retail — real-life escape games, where players must solve puzzles to break out of a room within a 60-minute timeframe. “While these concepts are cash hungry, owners and developers realise the pull of the attraction, which helps improve footfall for schemes and has a trickle-down effect through turnover rents,” Colliers International’s Kirton says. Trampoline park operator Freedome, the European arm of US specialist Sky Zone, made its European debut in October with the launch of its first aerial park at Cheshire Oaks in the UK. The 1,300 sq m attraction combines trampolining with a climbing wall, assault course and other attractions, and is a perfect fit for both new developments and schemes where owners or retailers may be looking to hive off space for other uses. Unlike other trampoline-park operators, where the focus is on warehouse space or space located close to retail, Freedome’s focus is on being within the retail environment, which means a greater investment and commitment to the concept of retail entertainment. The company, which recently exhibited at MIPIM’s retail sister show MAPIC, said interest in its offer was strong. “At MAPIC, all our meetings were with new or developing shopping centres and they all want something new, “ says Peter Brown, Freedome’s managing director for UK and Europe. “Nothing can touch trampoline parks for sheer demographic appeal.” Of course, demographics is key — especially with the millennial generation, who are looking for experiences and who want to be entertained before they go on to buy. But capturing even younger audiences is also vital. Turning a shopping trip into a family day out is central to the current focus on retail as leisure. And that means coming up with increasingly complex offers to amuse children and make it a more memorable trip. New concepts are bringing together both physical play and the virtual world. “New experiential technology, which provides customers with an interactive, immersive and engaging experience through virtual reality, mixed reality, transparent screens, cuttingedge touchscreens and interactive software, is now enhancing customers’ experiences even further,” says Revo’s Cooke. Perhaps nowhere is that more evident than with the launch of iP2 Entertainment’s Play

Hammerson’s Sarah Fox: “Customers are enjoying a full day out that incorporates retail, dining and leisure” Big! and Ultimate Explorer concepts, which were also showcased at MAPIC. These, exemplified by intu Lakeside’s planned Nickelodeon centre (which is due to open in 2018) and Legoland Discovery World in Manchester Trafford Centre, combine the strength of popular children brands with a compelling entertainment offer for both parents and their kids. iP2 Entertainment has partnered with Mattel and National Geographic for the two ventures. National Geographic will open the first of its branded exploration concepts this summer in Shenyang, China with a 4,013 sq m location within the Shenyang K11 Art Mall. A second is also in development on the island of Hengqin. Mattel and iP2, meanwhile, will shortly announce the first venues for their Play Big! concept, which includes Mattel’s Barbie, Hot Wheels and Mega Bloks brands. Children visiting the attraction will be able to do everything from designing and testing race tracks by taking a simulated ride on them, to designing and printing a Barbie dress. Roger Houben, chief executive officer of iP2 Entertainment, says that demand is causing developers to rethink their priorities. “When

“Experiences are what people want. Whether it’s having fun in our centres or being treated like a VIP, it’s all about the experience” Joshua Wexler, iP2 Entertainment

we speak to developers, they are increasingly putting food and beverage first, then entertainment and third is retail,” he says. But Houben realises his offer needs to do its job too: “Our entertainment needs to guarantee footfall into the mall and, for the owner of the mall, it’s very important to be able to support this new retail model. We talk about ‘activate your space’, because we want to create revenue and business by drawing people into the centre.” Joshua Wexler, chief executive of fun at iP2 Entertainment, agrees. “In retail, I believe experiences are what people want. Whether it’s a fun experience in our centres or being treated like a VIP, it’s all about the experience,” he says. However, Wexler points out that it should be a partnership approach between all involved: “It’s not enough to be just a box in a mall. We look at mall-owners and developers as our partners.” Colliers’ Kirton says mall-owners are increasingly getting creative with their space to meet the needs of their shoppers and visitors. “Leisure will rarely yield a higher rent than retail in premier schemes, but there are ways of utilising unused space to incorporate it,” he says. Kirton points out that many of today’s new leisure offers form part of a larger development or extension: “For example, Kidzania at Westfield London was effectively created out of new space and Nickelodeon at Lakeside is being incorporated in the new extension.” It seems that, in the fight to offer an unforgettable experience, F&B and leisure are now a vital part of the overall experience mix.

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Healthcare Corpus Sireo is targetting medical facilities

Smart money checks into healthcare

NVESTORS are beginning to favour alternative, more operational assets for accessing out-performance, according to Marc-Philipp Martins Kuenzel, senior advisor at Corpus Sireo International, which started investing in nursing homes in 2008, and has since moved into the medical office-building and assisted-living space. “Healthcare properties are expected to shine as a sector, benefiting from urbanisation and long-term demographic trends,” Martins Kuenzel adds. Investment patterns in Europe underline this shift. According to Savills, the first half of 2016 saw investment volumes in the carehome sector reach around €2.6bn, 60% higher than the first six months of 2015, with the

Is healthcare real estate finally moving into the spotlight as a significant asset class? The stars certainly seem to be aligning for this once highlyniche investment type, writes Isobel Lee

“Healthcare properties are expected to shine as a sector, benefiting from urbanisation and long-term demographic trends” Marc-Philipp Martins Kuenzel, Corpus Sireo International greatest activity recorded in France (€878m), Germany (€870m), the UK (€244m) and Finland (€218m). While an ageing population is a global trend, Savills suggests it is affecting the old continent first. By 2025, more than 20% of Europeans will be 65 or over and the number of people aged 85-plus is projected to rise from 14 million to 19 million by 2020 — and to 40 million by 2050. Coupled with the

fact that the baby-boomer generation is expected to spend its pensionable years in relative comfort, a growing industry of private, specialist firms are racing to meet demand with quality pensioner care and specialised healthcare options. M&A activity in the past five years has seen operators battle for supremacy, with names such as Korian, Orpea and Domusvi dominating the continental European care-home

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Healthcare sector, providing 100,000 beds between them. Beyond so-called ‘silver’ investment, there is also increasing interest in children’s nurseries, doctors’ surgeries and facilities for mental health or intensive care, as well as hospitals in the public and private sector. “The sector really emerged as an asset class in 2012, when we saw European investment volumes triple,” says Lydia Brissy, director of European research at Savills. “Over the past 15 years, investment allocations outside the traditional commercial sectors [office, retail, industrial] have been increasing by 25% year on year on average.” According to Martins Kuenzel, it is the presence of management companies that makes this asset class so interesting, since they stabilise rents and mitigate occupancy risks. “Most health-care real estate is managed by an operator,” he says. “Operators are often refinanced by the public sector and thus have a lower default risk, at least in Germany and the Nordics.” As far as income is concerned, owners can expect “secured cash flows through indexed long-term lease contracts of 20 to 30 years for nursing homes, and 10 years for medical office buildings”, Martins Kuenzel adds. “Private operators, on the other hand, have a strong expansion tendency. [For investors]

“There’s a perception that healthcare is a relatively recession-proof business — and that’s exactly what investors want right now” James Hanson, Cushman & Wakefield a good relationship with operators to invest side by side in their developments through modernisation, refurbishment, extension or new developments is key.” That said, the profile of the operator is almost as important as the building’s specifications, notes James Hanson, a partner in Cushman & Wakefield’s healthcare team focusing on investment. “Investors entering the sector have to not only be aware of regulation, to ensure that buildings are compliant, but also factor in reputational risks,” Hanson says. “The media sometimes uncovers unfortunate tales about patient care or the mistreatment of residents, so reputation is of huge importance when partnering with an operator. When we’ve done surveys with pension-fund managers, it’s one of their principal concerns when investing in care homes.” Add to this the challenge of finding qualified

Corpus Sireo has acquired two medical centres in Berlin-Köpenick, Germany

staff — particularly at the nursing end of the market — and it is clear that this is a complex investment area. But the rewards can be equally interesting, Hanson adds: “Funding can be a challenge for operators, and yields reflect that. But most institutional investors are concentrating on a small percent of the very top-tier market in terms of covenant strength, leaving the mid-tier and bottom end of the market struggling to attract investors.” That means that developers who understand investor requirements and get the operating side right can be on a winning ticket, as Arnaud Fety, head of key accounts and institutional at AegideDomitys in France explains. Fifteen years ago, developer Aegide identified a need for residences “for non-dependent seniors, comprising quality apartments with pools, hairdressers and great restaurants”, Fety says. After successfully launching a slate of projects through the Domitys brand, real estate giant Nexity joined as a minority shareholder in 2008, supporting further growth. Domitys is now the market leader in this segment in France, with 6,500 units under management, its first Belgian scheme under operation, and pipeline projects in Germany, Italy, Portugal and Spain. “Investors like the secure income flows and the fact they can plan future developments with us,” Fety says, noting that Domitys is exhibiting at MIPIM for the first time this year to achieve increased visibility. “We want to underline to our investors and potential new partners that we’re a valid commercial investment alternative,” he adds. As far as the outlook goes, all signs suggest that the healthcare sector can only grow. Cushman & Wakefield’s Hanson likens it to student residences, which were given the professional stamp in recent years as operators merged, attracting institutional investors. Trends beyond Europe indicate that further specialisation is on the horizon. While the US investor landscape is characterised by multiple healthcare REITs, Australia and New Zealand have many more niche operators. “The 65-plus accommodation sector is only 1% of the UK market right now, but it’s 17% in Australia and 13% in New Zealand,” Hanson notes. “I recently attended a conference where Australian operators were looking at

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Healthcare Europe and considering replicating their success here.” While the UK market could face issues post-Brexit, particularly staffing problems if free movement is curtailed, Hanson thinks that healthcare looks particularly appealing when the economic outlook is uncertain. “Yields are still more attractive than in the traditional commercial sectors and the fundamentals are strong,” he says. “For that reason, there’s a perception that healthcare is actually a relatively recession-proof business — and that’s exactly what investors want right now.”

RELATED CONFERENCES & EVENTS AT MIPIM From sick care to well care: how does rethinking the healthcare industry impact the RE industry? Tuesday 14 March – 14:00 - 14:45 Asset Class Room (Palais -1) How do patient-oriented technologies change the face of the healthcare sector? Tuesday 14 March – 17:45 - 18:30 Asset Class Room (Palais -1)

The healthcare investment market continues to grow

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Residential

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The emergence of the residential sector as a vehicle for institutional investment has been one of the biggest real estate trends of the 21st century. This is due in part to the emergence of three distinct niches: build-to-rent, seniors housing and student accommodation. Steve Killick reports

RADITIONALLY, the rental sector offered unexciting returns and was fraught with management problems. It was highly fragmented and dominated by a host of private investors denigrated by their commercial counterparts as ‘amateur landlords’. And the build-for-sale sector was caught in a repetitive boom-and-bust cycle unsuitable for pension funds and insurance companies with long-term liabilities. But economic and demographic forces have combined to change all that. Soaring house prices and the decline of the traditional jobfor-life mean that home ownership is neither attainable nor desirable for a growing number of people.

Jack Simmons, a partner in the residential investment and development team at Cushman & Wakefield, believes a generational shift is also fuelling the willingness to rent. “Those aged between 18 and 30 typically want flexibility as, these days, they are unlikely to stay at a company for more than three years,” he

“Those aged between 18 and 30 typically want flexibility. And that’s reflected in the property they live in” Jack Simmons, Cushman & Wakefield

says. “They are footloose and want to be able to enjoy a long-haul holiday and nights out when at home. And that is reflected in the property they live in.” To meet this demand a growing number of institutionally backed specialist players have emerged, developing large-scale blocks designed specifically for rent and offering professional management services after completion. For example, Moda Living was formed in 2014 by Caddick Group and Generate Land to deliver high-quality, high-specification, build-to-rent developments. With a pipeline of 5,000 apartments at a value of £1bn, located in high-profile city-centre locations across the UK, Moda Living is on target to be the UK’s leading rental brand. The business

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Residential

Student housing remains a growth market has received financial backing from Apache Capital Partners, which channels Middle Eastern capital into specialist, shariah-compliant real estate. Round Hill Capital spotted the potential of large residential portfolios across Europe. From a standing start in 2002, it has invested €6.0bn in more than 100,000 residential units across Europe, making it one of the largest private landlords in multiple countries. Meanwhile, the very biggest institutions now want a piece of the buy-to-let action. AXA Investment Managers — Real Assets has launched a German residential fund dedicated to professional investors, which is actively developing rental properties in Germany and the Netherlands. Alphons Spaninks, local head of asset management and transactions at AXA IM - Real Assets in the Netherlands, says: “The relative low risk/return profile offered by highquality multi-family housing is an attractive allocation for institutional investors.” Despite the startling statistic that, within the next 25 years, one in 12 people will be over 80, homes for the elderly appear to have been forgotten about. In the UK, just 3% of all new buildings currently planned or being constructed are designated for old people. “The current crisis in the care-home sector is far greater than in the broader housing market,” says Adam Challis, head of agency JLL’s residential research team. “The delivery of new stock needs a jump-start. Despite

“The current crisis in the care-home sector is far greater than in the broader housing market” Adam Challis, JLL the number of over-85s with dementia increasing 10 times faster than the UK population over the next 15 years, the number of beds is not increasing.” Knight Frank recommends a separate use class for retirement housing. The agency’s planning partner, Andy McMullan, notes: “While the headline numbers of housing units that should be delivered are discussed in detail, the type of housing needed to meet the full spectrum of demand is given a lot less attention.” The situation is equally grave in continental Europe, with public sector and not-for-profit operations dominating in countries such as France, Sweden and Switzerland. But their role is fast diminishing as these territories face financial shortfalls as a result of the global economic downturn. Countries including the Netherlands, Sweden, Norway and Denmark also spend considerably more in terms of a percentage GDP than the UK, which lags behind Iceland in terms of money spent on long-term care. JLL’s Challis believes that one way to alleviate pressure in the UK would be “to shift the policy

focus from first-time to last-time buyers”. He adds: “This would free up family housing for those in greater need of it and would also release equity that can be used towards financing social care. This in itself would encourage the development of new housing.” Knight Frank’s Retirement Housing: 2016 report estimates that simply downsizing to a home with one less bedroom would release, on average, €60,000 in equity for the average homeowner across England and Wales, with large regional variations. There was a time when the only thing one needed to know about student accommodation was that it helped its occupants become impervious to intense cold — especially if one lived out of college or halls of residence. How times have changed. Today, student property has become a multi million-dollar investment package far removed from the grubby bedsits of yesterday. In 2015, the UK investment market for student accommodation outperformed that of the US for the first time. In the first nine months of the year alone, an eye-watering €4.95bn had been spent on 40,000-plus beds, over €1.18bn more than the three previous years combined. The supply and demand equation is quite simple: there are more students than ever and much of the accommodation they are using is old. Research by JLL estimates that, of the 250,000 on-campus beds in the UK, some two thirds were built before 2000. Many are

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Residential in need of refurbishment, which could cost upward of €4.7bn. “For all this, universities still need to invest in academic space, “which has led to the creation of many student-housing partnerships between universities and private-sector operators,” JLL’s Challis adds. London remains the standout area when it comes to funding student housing, with the highest number of universities and students, many of whom are international students. However, according to Mark Bladon at Investec Structured Property Finance, it is often hard to compete with the big residential and commercial players hungry to acquire sites in the UK capital. When they do become available, big sums are paid — as was witnessed in 2015 when The Carlyle Group sold its Pure Student Living portfolio of 2,170 beds to LetterOne Treasury Services for $670m. Investec spent €49m last year funding Knightsbridge Student Housing in the creation of two blocks in Southampton. This year, it has been involved in a €30.6m, 536-bed scheme with Balfour Beattie in Glasgow, plus a €27.3m package with McLaren Property 015_HAUFE_PV_PIM Holdings and PMG Group to create 335 beds

“A well-located, well-maintained student scheme should appreciate in value over time” Mark Bladon, Investec Structured Property Finance for Cardiff University in Newport Road. The latter is expected to be ready for the 2017/18 academic year. What former students of a certain vintage would certainly notice is the extremely high specification to which modern student housing is built. The Cardiff development, for example, includes a gym, cinema, and games and study areas. Good broadband speed is also vital. Yields for well-let student property achieve 4.5% in London and from 5.5% to 6% for prime regional space. “Given that rents typically rise annually in line with inflation, it is very suitable for long-term institutions, as was seen by the €6.6bn of investment in purpose-built student accommodation last year,” Investec’s Bladon says. “A well-located, well-maintained student scheme should appreciate in value over time.” The popularity of student property is not restricted to the major centres of the UK, as was

demonstrated by Student Hotel’s 2016 purchase of another slice of The Carlyle Group’s holdings. Student Hotel acquired an 85% stake in three Carlyle properties, totalling some 1,500 beds, in The Hague, Rotterdam and Amsterdam West for around €172m. Despite disposing of a number of assets, Mark Harris, managing director and head of Carlyle’s UK real estate team, says: “We still like the sector right the way across Europe, with a 300- to 400-bed property the typical size we look for, with a key focus on transport hubs.” The student market in 2017 looks buoyant.

RELATED CONFERENCES & EVENTS AT MIPIM How to build the best quality housing for the greatest number of people ? Thursday 16 March – 10:00-10:45 Market Trends Room (Palais 3)

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MIPIM WISHES TO THANK OUR CONFERENCE & EVENT SPONSORS PROGRAMME SPONSORS

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MIPIM AWARDS SPONSORS

USA Breakfast

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2017 THEME & HIGHLIGHTS In a fast moving world, the real estate industry needs to adapt itself taking in account geopolitical, economic, societal and technological challenges

A NEW DEAL FOR REAL ESTATE How to create new sources of growth?

WELCOMING NEW PLAYERS

REINVENTING BUSINESS MODELS

Who are those game-changers transforming the industry?

How can new models be opportunities to rethink business strategies?

CREATING NEW FORMS OF COLLABORATION What is the new dispatch in roles and responsibilities between real estate stakeholders?

NEW FORMATS AND NETWORKING EVENTS !

SUCCESSFUL FORMATS TO BE CONTINUED

OPENING AND CLOSING CEREMONIES 2 ceremonies to frame the conference programme: the opening sets the tone with a great keynote adress on the 2017 main theme “A NEW DEAL FOR REAL ESTATE”, while the closing gives the highlights of the 4 days of discussions.

3 categories: building, city and transaction. 9 finalists pitching in front of an international jury, after a 2016 worldwide roadshow stopping by New York, London and Hong Kong. Cannes is the big final! The unmissable event gathering the startups ecosystem.

CREATIVE SESSION “Powered by Soon Soon Soon” 100 % of interaction for this session in which the audience experience design thinking techniques and frameworks to generate innovation. By invitation only.

3 highly productive networking events dedicated to healthcare, logistics and hospitality. “Powered by PechaKucha”

PREDICTIVE SCENARIO 3 different scenarios (the worst, the best, the likely) on a current issue are presented by a prospective expert and/or a CEO. Is the most likely always the chosen one?

PechaKucha events are one-off events that are separate from regular city-based PechaKucha Nights, and that are usually held as part of festivals and conferences, but also act as standalone events. These events include presentations that use PechaKucha’ 20 images X 20 seconds’ format.

EXCLUSIVE CLOSED DOOR EVENTS

The must-attend event for international urban political leaders to discuss closed doors key issues related to 2017 main theme “A NEW DEAL FOR REAL ESTATE”.

The Real Estate Institutional Investors’ Summit that brings together the world’s leading sovereign wealth funds, pension funds, insurance funds, and other leading capital owners in the real estate industry.

LEADERS’ BREAKFAST A breakfast event dedicated to corporate real estate professionals, focusing on property management issues and solution-oriented thinking.

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An elite event gathering corporate senior officials and the opening ceremony’s keynote speaker for an exclusive private discussion.

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LEARN FROM 400+ INDUSTRY AND NON-INDUSTRY EXPERTS INCLUDING:

Ganaël BASCOUL Co-Founder, Soon Soon Soon

Sir Howard BERNSTEIN Chief Executive Manchester City Council

Aaron BLOCK Co-Founder and Managing Director MetaProp NYC

Abdel BOUNANE Chief Executive Officer Bright

Patrick BRAOUEZEC President Plaine Commune

Jason BROWN Chief Development Officer Yotel

Meka BRUNEL Chief Executive Officer Gecina

Suchad CHIARANUSSATI Managing Director SC Capital Partners

Jérôme DELAUNAY Head of Asset Management France AXA IM - Real Assets

Rushabh DESAI Head of Asia-Pacific Allianz Real Estate GmbH

Raphael GIELGEN Head Research & Trend Scouting Vitra AG

Charles-Edouard GIRARD General Manager GuestToGuest

Christian GIRAUD SVP Development Europe AccorHotels

Catherine GUIZOL Directeur projets immobiliers Coca-Cola European Partners France

Charles HECKER Senior Partner Control Risks

Per HJORT Executive Chairman Newsec Norway Newsec

Dan HUGHES Director RICS

Peter Allen JACOBSEN Head of Asset Management Castelar Invesment Management

Kasper Guldager JENSEN Senior Partner 3XN Architects

Dr. Parag KHANNA Director Hybrid Reality Pte Ltd.

Gregory LANTER VP Global Development & Construction Club Med

Ragnar LIFTHRASIR Founder velox.RE

Arthur LLOYD President, Office, North America Ivanhoé Cambridge

Thomas LONDON Senior Leader of Health System Transformation McKinsey & Company

Winy MAAS Architect & Co-Founder MVRDV

Chris MARLIN President Lennar International

Prof. Ariella MASBOUNGI Architect & Urban Planner

Kanji MATSUSHITA General Manager Takenaka Corporation

Filippo MONTELEONE President CAREIT

Scott MULDAVIN Senior Advisor Delos

John OZINGA COO HotelIvest Accor SA

Morgan PARKER Chief Operating Officer Jumeirah Central Dubai Holding

Laurent PAVILLON Global Head of Business Marketing and Communications BNP Paribas Real Estate

Stephane PICHON Managing Partner Your Care Consult

Deputy Mayor Jules PIPE Deputy Mayor, Planning, Regeneration and Skills Greater London Authority

Amelia SLOCOMBE Director - Legal LMA

Logan SMITH Head of Logistics Real Estate, International Investment Group BNP Paribas Real Estate

François TRAUSCH Chief Executive Officer Allianz Real Estate

Dr. Alfonso VEGARA President and Honorary Founder Fundación Metrópoli

Dr. Lawrence YUN Chief Economist National Association of REALTORS

Mahesh RAMANUJAM Olivier SELLES President and CEO Innovation Manager U.S. Green Building Council Bouygues Immobilier and Green Business Certification Inc.

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PROGRAMME AT-A-GLANCE Monday 13 March INVESTMENT

Sponsors: AXA IM, KPMG, RCA, Aberdeen, Nabarro, Rockspring By invitation only

18.30

Carlton Hotel

Tuesday 14 March Senior serviced residences: what are the opportunities 30 min

HEALTHCARE Asset Class room (Palais -1)

45 min

REGULATION New Deal room (Palais 3)

15.15 in this fast-growing market ?

8.00 Carlton Hotel

What does professionalism mean to your clients?

15.15 Co-organiser: RICS

Opening Ceremony

10.00 Keynote address by Dr. Parag Khanna

How connectivity and geography affect the future of global affairs?

NEW DEAL Grand Auditorium (Palais 1)

Russia: Shifting the developer’s agenda from competition

11.00 for the resources to competition for the clients Co-organiser: RBC

11.15 How to shift from big data to smart data?

Followed by a cocktail until 19:00. By invitation only

45 min

TECH Innovation room (Palais -1)

16.30 Sponsor: Poland Today

TECH Innovation room (Palais -1)

16.30 By invitation only

30 min

Carlton Hotel

Ousting the establishment:

45 min

Followed by a cocktail

drives regeneration?

Emerging trends in RE:

14.00 what is the global outlook for 2017? Co-organiser: ULI

GOVERNANCE New Deal room (Palais 3)

INVESTMENT Grand Auditorium (Palais 1)

16.30 Creative session by Soon Soon Soon. By invitation only

30 min

TECH Innovation room (Palais -1)

45 min

HEALTHCARE Asset Class room (Palais -1)

NEW DEAL (RE)creation room (Palais 3)

TECH Innovation room (Palais -1)

How to think different in RE?

How can disrupting technologies impact the way

15.00 we design, build and operate our environment?

Partners’ sessions

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Salon Croisette (Palais 3)

SOCIETAL DEMAND New Deal room 45 min (Palais 3)

45 min

HEALTHCARE Asset Class room (Palais -1)

45 min

EUROPE Market Trends room (Palais 3)

Using 3D mapping for RE and property management,

17.15 how to benefit from this technology today?

30 min

TECH Innovation room (Palais -1)

45 min

BUSINESS New Deal room (Palais 3)

45 min

HEALTHCARE Asset Class room (Palais -1)

New ways of working, new production tools:

17.45 what is the impact on office buildings? Co-organiser: ESSEC Business School

How do patient-oriented technologies change

17.45 the face of the healthcare sector? Sponsor: CAREIT

17.45 What are the mega projects in other major cities?

19.30

NEW DEAL (RE)creation room (Palais 3)

HOTEL & TOURISM Networking zone 1h (Palais -1)

Sponsor: Parrot

From sick care to well care: how does rethinking

Sponsor: Autodesk

1h30

How to think different in RE?

EUROPE Market Trends room 45 min (Palais 3)

connected services

14.00 Creative session by Soon Soon Soon. By invitation only

Verrière Grand Auditorium

Which capital cities in Europe have most to gain

16.30 from Brexit?

How Virgin Money UK improved workplace experience

14.00 the healthcare industry impact the RE industry?

1h30

How does private / public cooperation in the RE sector

16.30 favour better developments in healthcare?

16.30

14.00 and increased building efficiency with Honeywell’s Sponsor: Honeywell

Ruby room (Palais 5)

Women networking cocktail

MIPIM City Investment Forum

14.00 The Manchester approach: how international partnerships Co-organiser: Manchester

INVESTMENT

14.00 what’s the impact on the RE industry? Sponsor: Lennar International

NEW DEAL Carlton Hotel Salon La Côte

The golden age of development in Poland

16.30 a better life for people?

Sponsors: AXA IM, KPMG, RCA, Aberdeen, Nabarro, Rockspring, Threestones Capital By invitation only

Creating great cities: how to compete successfully?

16.00 Sponsor: Oslo Metropolitan Area - Co-organiser: ULI

How can RE investment strategies foster

12.30

EUROPE Market Trends room 45 min (Palais 3)

16.00

ECONOMY New Deal room (Palais 3)

How to easily optimize energy efficiency investments?

12.15 Sponsor: Ruukki

Ruby room (Palais 5)

How is London responding to the immediate

15.15 challenges posed by Brexit ?

45 min

Worldwide overview:

11.15 what are the global indicators saying?

Sponsor: Domitys

INVESTMENT

Sponsors: AXA IM, KPMG, RCA, Aberdeen, Nabarro, Rockspring By invitation only

Welcome Reception - Open to all participants

EMEA Market Trends room 45 min (Palais 3)

Carlton Hotel

Programme as of January 27th 2017, may be subject to change

30/01/2017 16:03

PROGRAMME AT-A-GLANCE Wednesday 15 March 8.00

LEADERS’

TECH Innovation room (Palais -1)

14.00 Sponsor: Siemens

45 min

TECH New Deal room (Palais 3)

14.00 How to approach the Japanese market?

45 min

ASIA Market Trends room (Palais 3)

Workshop - Title to be announced

14.00 Sponsor: Schindler

BREAKFAST

Private talks with Dr. Parag Khanna How connectivity and geography affect the future of global affairs? Sponsor: Lennar International. By invitation only

1h30

8.00

NEW DEAL Verrière Grand Auditorium

ASIA

Sponsor: Diamond Realty Management. By invitation only

How can big data boost the RE business?

Majestic Hotel

Polska: a closer look

14.00 Sponsor: Poland Today

8.00

A new vision for the workplace: where do people want to work? By invitation only

NEW DEAL

1h30

15.15 How does technology reshape the RE job market?

2h30 Gray d’Albion Hotel

Brazilian Breakfast 1h30

15.15 country in the world being transformed?

45 min

TECH Innovation room (Palais -1)

15.15 Creative session by Soon Soon Soon. By invitation only

45 min

LOGISTICS Asset Class room (Palais -1)

15.15 European investment heading?

10.00 of peer to peer RE?

45 min

BUSINESS New Deal room (Palais 3)

What are the new patterns and motivations 10.00 of Chinese investment in Europe?

ASIA Market Trends room 45 min (Palais 3)

What are the innovative strategies

10.00 in smart cities?

Predictive scenario - title to be announced

10.00 Sponsor: CBRE Global Investors

Blockchain: what are the opportunities & challenges

Oslo Investors’ Summit

10.30 Sponsor: Oslo Metropolitan Area

Followed by a lunch

How to build cities together?

11.00 Sponsor: SNCF Immobilier Followed by a cocktail

Hosting international events: 11.15 how to empower citizens in urban planning? Sponsor: Plaine Commune

11.15 Where are the blue oceans in Asia?

45 min

13.00

Partners’ sessions

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By invitation only

NEW DEAL (RE)creation room (Palais 3)

HOTEL & TOURISM Asset Class room 45 min (Palais -1)

1h30

ARCHITECTURE New Deal room (Palais 3)

45 min

AMERICAS Market Trends room (Palais 3)

TECH Innovation room (Palais -1)

AMERICAS Asset Class room (Palais -1)

HEALTHCARE Networking zone (Palais -1)

Ruby room (Palais 5)

Connected building: how does innovation provide

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

What are the next investment opportunities

16.30 in Brazilian tourism? Sponsor: MINTUR

16.30 Sponsor: Invest Stockholm

45 min

LOGISTICS Asset Class room (Palais 3)

1h30

Verrière Californie (Palais 5)

Innovative urbanisation by Sweden

17.45 How to think in advance the cities of tomorrow?

45 min

ARCHITECTURE New Deal room (Palais 3)

45 min

AMERICAS Market Trends room (Palais 3)

What is the investment horizon

17.45 across the US RE market?

TECH Grand Auditorium (Palais 1)

45 min

Canadian funds: which approaches, which strategies

16.30 for the RE industry?

SOCIETAL DEMAND New Deal room (Palais 3)

Majestic Hotel

How to transform and re-use buildings

16.30

Poland - A development success story

12.30 Sponsor: Embassy of Poland

Followed by a campfire-like 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

NEW DEAL (RE)creation room (Palais 3)

Title to be announced

11.15 Sponsor: Barcelona Catalonia

TECH Innovation room (Palais -1)

ASIA Market Trends room (Palais 3)

16.00

Ruby Room (Palais 5)

ASIA Market Trends room 45 min (Palais 3)

How to think different in RE?

11.15 Creative session by Soon Soon Soon. By invitation only

Where is the shifting landscape of

Salon Croisette (Palais 3)

Italian real estate: resilience in Europe

45 min

How to think different in RE?

16.30 almost to infinity?

10.30 Co-organiser: Studio Chiomenti

45 min

TECH New Deal room (Palais 3)

Building India: how is the second most populated

Salon Croisette (Palais 3)

08.30 By invitation only

Ruby room (Palais 5)

Programme as of January 27th 2017, may be subject to change

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PROGRAMME AT-A-GLANCE Thursday 16 March 8.30

USA Breakfast Sponsor: ABM

1h30

Salon Croisette (Palais 3)

Why invest in Nordic real estate?

09.30 Sponsor: Newsec

Preceded by a breakfast

10.00 How can smart mobility make cities smarter?

New vs. traditional players: 10.00 what are the new alliances to create? How to build the best quality housing

10.00 for the greatest number of people? Sponsor: Residential Land

45 min

TECH Innovation room (Palais -1)

45 min

BUSINESS New Deal room (Palais 3)

EUROPE Market Trends room 45 min (Palais 3)

Why is Greater Copenhagen the growing hotspot 2h

Airbus, Siemens Mobility, Sigfox, HyperloopTT

11.00 chosen Toulouse. What about you? Sponsor: Toulouse Metropole

11.00

TECH Innovation room (Palais -1)

1h30

NEW DEAL Grand Auditorium (Palais 1)

New game, new rules, new asset classes:

11.15 what are the consequences for brick and mortar? 45 min

Is Lisbon the next tech city investment hot-spot?

11.15 Co-organiser: Iberian Property

BUSINESS New Deal room (Palais 3)

EUROPE Market Trends room 45 min (Palais 3)

How to think different in RE?

11.15 Creative session by Soon Soon Soon. By invitation only

LOGISTICS Asset Class room (Palais -1)

A new deal for real estate

Sponsor: Emirates REIT

NEW DEAL (RE)creation room (Palais 3)

What are the New Business Opportunities in the Nordics Solutions born in Helsinki?

Is Spain the new place to invest?

12.30 Sponsors: Gesvalt, Roca Junyent

1h30

AMERICAS Market Trends room 45 min (Palais 3)

How to empower cities and real estate players

15.00 to improve quality of life and work? Sponsor: ENGIE

Where are the new gold nuggets

15.15 of the tourism industry?

How can standards agencies and regulatory authorities 45 min

GOVERNANCE New Deal room (Palais 3)

45 min

AMERICAS Market Trends room (Palais 3)

15.15 help the RE sector to create growth?

Megacities in South America:

15.15 how to transform fast urbanization into an asset?

How to think different in RE?

15.15 Creative session by Soon Soon Soon. By invitation only

NEW DEAL (RE)creation room (Palais 3)

45 min

GOVERNANCE New Deal room (Palais 3)

16.30 sub-saharan region?

45 min

AFRICA Market Trends room (Palais 3)

16.30 How can investing in hotels create good returns?

45 min

HOTEL & TOURISM Asset Class room (Palais -1)

How can private / public cooperation increase the value

16.30 and attractiveness of cities?

How to forecast investment in the fast-growing

LOGISTICS Networking zone H&T (Palais -1)

30 min

TECH Innovation room (Palais -1)

45 min

ECONOMY New Deal room (Palais 3)

16.30

17.15 Sponsor: Velux Salon Croisette (Palais 3)

EUROPE Market Trends room 1h (Palais 3)

TECH Innovation room (Palais -1)

HOTEL & TOURISM Asset Class room 45 min (Palais -1)

Title to be announced

11.30 and Arctic Europe? Why are Smartest and Cleanest

Sponsors: Arctic Europe, Smart’n’Clean, Helsinki Metropolitan

Why is South America a region of investment

14.00 opportunities?

Co-organiser: LMA

10.00 for global logistics?

Sponsor: Copenhagen Capacity

Ruby room (Palais 5)

SOCIETAL DEMAND New Deal room 45 min (Palais 3)

How can RE contribute to the building of inclusive cities

14.00 and create new sources of growth?

How do new economic models

17.45 shake the RE market?

AFRICA Market Trends room 45 min (Palais 3)

How do new infrastructures favour the development of

Sponsor: Brazilian Ministry of Tourism

13.00

How can CRE technology unlock the financial power 14.00 of your data? Sponsor: Altus Analytics

How to rethink hotels facing millenials’

17.45 expectations?

30 min

TECH Innovation room (Palais -1)

18.30

45 min

LOGISTICS Asset Class room (Palais -1)

How do new consumer behaviours reshape

14.00 last mile delivery?

Majestic Hotel

17.45 coastal North African cities?

HOTEL & TOURISM Asset Class room 45 min (Palais -1)

Sponsors: Immobilien Zeitung, Threestones Capital

Grand Auditorium (Palais 1)

Friday 17 March 10.00 Closing Ceremony - Outstanding summary of the 4 days of MIPIM, vision for the future

Partners’ sessions

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NEW DEAL New Deal room (Palais 3)

Programme as of January 27th 2017, may be subject to change

30/01/2017 16:03

The Nordics Conference Program at MIPIM 2017

The Polish & CEE Conference Program at MIPIM 2017

Central & Eastern Europe Days

CEEMARKET: CzechRepublic, Estonia, Hungary, Latvia, Lithuania,Poland, Slovakia, Ukraine

Tuesday 14th 16:30 - 18:00

14-15 MARCH 2017

THE GOLDEN AGE OF DEVELOPMENT IN POLAND Panel discussion Verriere Grand Audi, Level 0, Palais des Festivals Sponsored and organized by Poland Today Part 1: Highlighting Poland's Leading Urban Schemes, major developers talk about their upcoming projects, introduced by a short film and followed by a Q&A with the shapers of Poland’s future urban environment. Part 2: Europe's Central Hub: The Golden Age of Warehouse & Logistics in Poland discussed by leading figures from the sector.

Tuesday 14th 19:00 -21:00

POLAND & CEE EXECUTIVE COCKTAIL-DINNER: POLAND & CEE AT THE HEART OF EUROPE Verriere Grand Audi, Level 0, Palais des Festivals Organized by Poland Today By invitation only High level social and networking event for business & city leaders

Wednesday 15th 12:30 - 14:00

POLAND - A DEVELOPMENT SUCCESS STORY Verriere Californie, Level 5, Palais des Festivals Sponsored by the Polish Embassy in France Cocktail-lunch by invitation only Presentation of Poland's investment opportunities, main developments in economy, business and style of living

Wednesday 15th 14:00 - 15:30

POLSKA & CEE: A CLOSER LOOK Panel discussion Ruby Room, Level 5, Palais des Festivals Sponsored and organized by Poland Today Looking closely at Poland & the CEE region from an economic, investment and jobs perspective. Panelists include major investors, senior local government officials, leading business & real estate leaders. Whilst developers in Poland move forward with impressive schemes, what is the economic outlook which will underpin their success - or the potential pitfalls? What are the factors which will affect Poland's economic performance – and in turn its real estate market - in the short, medium and long-term? What do major international investors say about Poland more than one year after the present government came to power? What are the future destinations for Poland's newest and 2nd-biggest industry sector – business services?

CEE EXHIBITING AT MIPIM 2017 BALTICS: City of Riga, City of Tallinn - CZECH REPUBLIC: City of Brno, City of Ostrava, City of Prague, CTP Invest - HUNGARY: Budapest - POLAND: City Hall of Katowice, City of Krakow, City of Lodz, City of Poznan, City of Warsaw, City of Wroclaw, Echo Investment SA, Krakow Nowa Huta, Military Property Agency, Murapol Group, Pomerania Development Agency – SLOVAKIA: HB Reavis Slovakia, Park City

FOR REGULAR UPDATES ON CONTENT& SPEAKERS, PLEASE CHECK OUR WEBSITE AT http://www.mipim.com/en/online-database/Conferences/#

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The Jury

Awards

Chairman of the jury John FORRESTER Cushman & Wakefield CEO EMEA United Kingdom Meka BRUNEL Gecina CEO France

Amanda CLACK RICS President United Kingdom

Serge FAUTRE AG Real Estate CEO Belgium

Paolo GENCARELLI UniCredit Italy

Frank KHOO AXA Real Estate Global Head of Asia Singapore

Tinka KLEINE PGGM Head of Private Real Estate, Europe The Netherlands Barbara KNOFLACH BNP PARIBAS Real Estate Deputy Chief Executive & Global Head of Investment Germany

Schemes shortlisted for 2017 MIPIM Awards The jury of global real estate experts have selected their shortlists across 11 categories. It’s almost time for the voting to begin

HE results are in. The MIPIM Awards jury has completed its deliberations and shortlisted four projects from each of 11 categories. The entries, from all around the world and covering the whole gamut of real estate types, were of an exceptionally high standard. Now, it is down to the most demanding of audiences — the 23,000 real estate experts assembled at MIPIM 2017 in Cannes — to choose the winners. MIPIM delegates will have the chance to choose their favourite project in each of the awards categories: • Best Healthcare Development • Best Hotel & Tourism Resort • Best Industrial & Logistics Development • Best Innovative Green Building • Best Office & Business Development

• Best Refurbished Building • Best Residential Development • Best Shopping Centre • Best Urban Regeneration Project • Best Futura Project (under 150,000 sq m) • Best Futura Mega Project (over 150,000 sq m) And the MIPIM Awards jury, chaired by Cushman & Wakefield EMEA’s CEO John Forrester, has one final task to fulfill — to select their own favourite from all the entries to receive the Special Jury Prize. The winners will be revealed in the Grand Auditorium of the Palais des Festivals on Thursday, March 16. MIPIM Awards 2017 Official Media Partner

Sponsor of Best Healthcare Development

Sergey KUZNETSOV City of Moscow Chief Architect Russia

Salwa MIKOU Mikou Design Studio Co-founder Architect SIA-RIBA-DPLG France Guy PERRY Essel Group India President of Cities and Strategy McKinsey & Company Senior Advisor

preview magazine I February 2017 I www.mipim.com

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Awards Best Healthcare Development

Agenda