POMERANIAâ€™S LECH WALESA CALLS FOR CHANGE
PARIS MAYOR ANNE HIDALGO LEADS GREEN DEBATE
NEWS 3 Thursday 15 March 2018 www.mipim.com
MIPIM STARTUP COMPETITION WINNERS
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Made for the Journey At the heart of the UK, the West Midlands has an unparalleled strategic location and access to global markets. High-quality connectivity by rail, road and air gives the region a significant competitive advantage, which is set to be strengthened by the arrival of the HS2 high-speed rail line in 2026, and Birmingham Airport’s growing reputation as an international gateway. The West Midlands is uniquely positioned to benefit from HS2 – Europe’s largest infrastructure project – by having two HS2 stations at Birmingham Curzon and the Interchange in Solihull. As well as making the region more accessible, the sites are attracting new investment and triggering major regeneration schemes locally. The West Midlands is also expanding its rail and tram networks with more than £2 billion of investment committed in the next ten years, on top of the £1 billion spent during the past five.
In Birmingham, plans to extend the existing Midlands Metro network across the region are progressing, and UK Government has authorised a £59.8 million expansion that will link the city centre with Edgbaston and the city’s growing Westside area. In addition, a Midlands Metro route from Wednesbury to Brierley Hill in the Black Country has secured £200 million of funding from the government’s Transporting Cities Fund. The tram extension will connect to the £150 million Wolverhampton Interchange – a new transport hub bringing buses, trains, trams, cyclists and pedestrians together and providing enhanced regional links to HS2. The West Midlands Combined Authority has provided almost £50 million is support of the Interchange scheme.
Visit MidlandsUK Pavilion C16.D www.wmgrowth.com
Meanwhile, plans have been revealed by Coventry City Council and WMG (formerly Warwick Manufacturing Group) for a driverless light railway that would link areas of Coventry together and connect them to other locations, such as the HS2 Interchange at Solihull.
Midlands Metro at Eastside Park
EVENTS TO LOOK OUT FOR:
THURSDAY 15TH MARCH 15:45 – 16:15 Landscapes of the future: Harnessing the power of partnership to drive regional growth in the UK 16:30 – 17:00 Building our skills for the future MidlandsUK Pavilion C16.D
HS2 Birmingham Interchange Station
Proptech and startup culture is taking centre stage in Paris again this year, with two essential events demonstrating the importance of innovation to the French capital. “This Friday in Paris, Hacking the City Hall will give over 1,000 startups the chance to pitch, share, connect and build opportunities across 3,000 business meetings,” said deputy mayor of Paris Jean-Louis Missika. “Then on June 20 and 21, the first ever MIPIM PROPTECH Europe arrives in Paris, to show how quickly the real estate tech industry is maturing, and share some of the latest smart solutions with the market.”
All the startup competition winners; Lech Walesa calls for change; mayors plot a path to greener cities; big data set to transform the workplace; and more... Data scientist Rand Hindi was the guest speaker at the annual MIPIM Leaders’ Breakfast. The French entrepreneur and CEO of Snips told his audience that the proper harnessing of big data will give citizens new ways to guide their lives. The event was sponsored by Lennar International with McKinsey as knowledge partner.
Sara Rozenfarb, strategy and new business development director, real estate division, Reed MIDEM (left); Sophie Mathieu, sales director, MIPIM and MAPIC markets, Reed MIDEM; Jean-Louis Missika, deputy mayor of Paris; Filippo Rean, head of real estate markets, Reed MIDEM
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57 FEATURES Germany — Looking lively
The Netherlands — Right place, right time
Tokyo — Games on
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NEWS 3 Thursday 15 March 2018 www.mipim.com
EDITORIAL DEPARTMENT Editor in Chief Graham Parker News Editor Doug Morrison Sub Editors Clive Bull, Julian Newby, Joanna Stephens Proof Reader Debbie Lincoln Reporters Adam Branson, Ben Cooper, Mark Faithfull, Isobel Lee, Mark Moore, Liz Morrell, Head of Graphic Studio Herve Traisnel Graphic Studio Manager Frederic Beauseigneur Graphic Designers Muriel Betrancourt, Véronique Duthille, Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographers Christian Alminana, Phyrass Haidar, Olivier Houeix, Sébastien Nogier Editorial Management Boutique Editions PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Co-ordinator Veronica Pirim ADVERTISING CONTACT IN CANNES Mylene Billon email@example.com Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2018, Reed MIDEM Market Publications. Publication registered 1st quarter 2018. Printed on PEFC Certified Paper.
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• 15 March 2018
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A new 290,573 sq ft LEED Gold office building acquired for Takenaka Corporation and net leased to Amazon for 15 years. Acquisition price US$268.5 million.
Flagship Mayfair retail & leisure building leased to The Arts Club for their new concept spa on behalf of Amsprop.
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71,000 sq ft B1, B8 & D1 campus with substantial development potential sold to Fabrix Capital.
400,000 sq ft office building, Ongoing agency asset/facilities management including recent letting of 55,000 sq ft to Amazon.
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Some delegates arrived for day two of MIPIM by sea, while others used more conventional means, but all made use of countless opportunities to network, learn and do deals
MIPIM News 3 â€˘
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3 • 00 MIPIM News 1 13 March 2018 7 • 15
Small idea wins big
This year’s startups celebrate their part in this year’s Startup Competition
DISRUPTIVE Technologies, producer of what it claims to be the world’s smallest wireless sensor, was yesterday crowned the winning startup in MIPIM’s third Startup Competition. The company, exhibiting at MIPIM for the second year, uses its sensor technology by working with other partners to create case-specific solutions such as space monitoring and comfort management within buildings. The sensors are simply stuck where required and with a 15year battery life and a virtually indestructible casing can be
deployed “almost anywhere, quickly and easily”, according to the company. “This sensor allows us to do cost savings, increase margins and improve tenant relationships,” said CEO Erik Fossum Færevaag. Second in the competition was Workwell, a technology that allows building services to be centralised in one app. “Our vision is to digitally enhance physical spaces,” said Workwell co-founder Paul Dupuy. Third was Physee, a company that produces what head of MIPIM News 3 •
business development, Maarten de Haas, described as “true innovation without compromise”. “We have developed the world’s first fully transparent energyand data-generating windows and transformed existing single-purpose material glass into a form of power,” he said. MIPIM’s third Startup Competition attracted a huge audience of delegates looking to understand what the most promising and innovative startups that tackle urban challenges around the world, are doing. The competition saw nine fi8
• 15 March 2018
nalists pitch their businesses to judges onstage. Aaron Block, co-founder and managing director of MetaProp NYC and the real estate tech partner for the competition, was master of ceremonies. He said the audience was up to three times the size of previous years with the quality of startups also improving. “I would like to praise all of you. Your businesses are really a calibre above what we have seen in previous years and you should all be very proud of yourselves,” he said.
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‘Build again without thinking of the past’
FORMER president of the Republic of Poland Lech Walesa was at MIPIM yesterday, encouraging investors to take a look at his home. Perhaps the most famous electrician in the world in the early 1980s, Walesa was born in Pomerania. He co-founded and headed Solidarity, won the Nobel Peace Prize 1983, and served as president of Poland from 1990 to 1995. Speaking on the Pomeranian stand, Walesa called for a new approach to development. “Everything built up to now has been built for old technologies,” he said. “The past is hanging over us and new generations should build again without thinking of the past.” And there were still signs of the old campaigner when he advised a young listener: “Don’t wait until people tell you to do something — change starts with you.” Walesa came to Cannes to promote the Tricity area on the Baltic coast — comprising the three cities of Gdansk, Sopot and Gdynia. Anna Rajzer, project manager for industry and real estate in the Pomerania Development Agency said: “One of the major developments we’re highlighting is Airport City Gdansk. This is a state-ofthe-art ofﬁce development on 10 ha at Gdansk Lech Walesa international airport.” The Olivia Business Centre in Gdansk is “the biggest and most modern ofﬁce development in Poland”, Rajzer added. It houses 120 businesses on a 3 ha site.
MIPIM News 3 • 10 • 15 March 2018
Is your elevator Thinking Ahead? In fast-moving urban spaces, reliable mobility solutions are no longer considered a luxury. They are simply expected. We need to offer radically new experiences to fit these changing needs. We need smarter ways to liberate building operators from tedious tasks and pre-empt what the passenger wants. We need creative solutions to mundane problems. We need to think beyond whatâ€™s conventional. We need to explore new ideas in a connected world. We need to start Thinking Ahead. To learn more, come by the Schindler Ahead booth at Palais -1, A72 and meet our experts.
Mayors address the challenge of developing greener cities
City of Milan’s Pierfrancesco Maran (left); moderator Hala El Akl, director, PLP Architecture; Lina Ghotmeh, founder of Lina Ghotmeh Architecture; David Chipperfield, founder David Chipperfield Architects; and Anne Hidalgo, mayor of Paris and C40 chair
LEADING a global city today requires great courage, mayor of Paris Anne Hidalgo told MIPIM delegates, “since all the world is changing, and we are at the vanguard of that great change”. Speaking as current chair of the C40, an alliance of world cities focusing on carbon-neutral and resilient urban regeneration, Hidalgo said that the C40’s Reinventing Cities programme had a
mandate to change how urban regeneration is tackled. “This is an adventure we’re building together. The opportunity for Paris was defining new ways of working, to be more innovative and create better quality schemes. “We wanted to develop the most creative projects that were submitted, not just the cheapest ones. Many people said that this was a courageous choice,
but this is the responsibility that comes with being a mayor.” Created and led by cities, C40 is focused on tackling climate change and driving urban action that reduces greenhouse gas emissions and climate risks, while increasing the health, wellbeing and economic opportunities of urban citizens. “We had already started to use Paris as an example for urban re-
New ideas for an older population A SPECIAL session dedicated to discussing Japan’s rapidly ageing and increasingly urbanised population was held in Cannes yesterday. Delegates gathered at the packed session, Japan: Ageing Cities & Great Investment Opportunities, to hear a panel speaking on the causes and potential solutions real estate can offer in terms of accommodating the major population growth taking place in Japanese cities. Introducing the session, Shinichi Sakaki, deputy director-general, city bureau, Ministry of Land, Infrastructure, Transport and Tourism, said that a “change of
Kanji Matsushita of Takenaka Corporation (left); Tokyo Tatemono Investment Advisors’ Shinroku Wakayama; Tomoyuki Sakaue of NTT Urban Development Corporation; and Nishimura & Asahi’s Koki Hara
MIPIM News 3 • 12 • 15 March 2018
generation when we were called to join C40,” said Pierfrancesco Maran, councillor for the City of Milan, “which was an important turning point, as we were no longer alone in our ambitions. The five initial sites that we have identified for the programme are quite small, but we want to execute them well and reproduce them at scale in future years.” “For the first time, 50% of the world’s population lives in cities,” said Raymond Johansen, mayor of Oslo. “We are responsible for 70% of CO2 and climate change is visible. We have to act, we cannot let the next generation be responsible for this problem.” “This programme is not called inventing cities, but reinventing cities, as we have lost some of the elements — including green spaces and great public facilities — that made cities great,” said David Chipperfield, founder of David Chipperfield Architects. “The idea that regulation can go hand in hand with enterprise is not an Anglo-Saxon idea. I am deeply sorry to say that Brexit represents the UK’s failure to understand that regulation is not anti-enterprise, but has an essential role in society, in excellence and success.”
direction” in investment trends needed to happen to provide more residential accommodation for elderly people, especially in the major cities. “We are going to continue to develop places to be more attractive for investors,” he said. One of the panel members, Tomoyuki Sakaue, director of residential business headquarters and design management office at NTT Urban Development Corporation, discussed a new generation of developments aimed at elderly residents. The buildings of the future, said Sakaue, needed to be “well connected”, to serve older people’s modern needs. “It is very important to understand the issues and needs of the elderly,” he said.
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Biggest hospitality project in South America (Brazil)
Gremi International SARL, based in Luxembourg, an international holding company (operating in LU, PL, BR, NL, MC) is developing the “Eco Estrela” project in Baia Formosa, Brazil. It is a new world class, prestige tourism destination comparable to exotic, luxury locations such as Porto Cervo, Sardinia (Italy), Sotogrande (Spain) or Mayakoba (Mexico). ”Eco Estrela” project is envisaged to comprise of several hotels, resort facilities as well as luxury residential units. Project implementation is planned in a phased development approach. The projects site’s unique selling propositions are its exceptional location providing a feeling of remoteness and privacy, its potential to offer a range of activities, favorable weather conditions and market trends.
Distance to the New Airport approx. 99 km
Natal Federal Highway (BR) 101
Natal - Baía Formosa
(1 - hour drive on BR101) Pipa
Baía Formosa 101
Gremi International SARL is looking for an Investor, for the 1st phase of the “Eco Estrela Project” (“Six Senses Formosa Bay”) developed in cooperation with Hotels, Resorts & Spas management company Six Senses (www.sixsenses.com). The final completion of the interior and exterior of the resort is planned for 2021. The project currently has all the formal allowances and permits from authorities.
João Pessoa (1 - hour drive)
(3.5 - hour drive)
The nearest international airport is in Natal (99 km via highway). Opened in June 2014 the airport offers high standard and has potential to receive airplanes as large as the Airbus A380 and serve up to 6.2 millions passengers per annum. Due to its proximity to Europe, it is the shortest and most fuel-efficient cross Atlantic Ocean location in the Americas.
For detailed investor / developer information please visit the Brazil stand at MIPIM 2018 (P-1.A20/P-1.B19) Mr. Piotr Maj - Head of EcoEstrela Project E: firstname.lastname@example.org, T: +55.84.99686.0330
COUNTING THE COST OF BREXIT BREXIT has made investors nervous and hampered capital flows into the UK, according to the head of a major real estate fund, which has taken C$2bn (€1.25bn) “off the table in the UK” in favour of France and Germany since the referendum in June 2016. Speaking to the MIPIM News, Paul Brundage, executive vice-president and senior managing director for Europe and Asia-Pacific at Oxford Properties, the global real estate arm of Canadian pension fund OMERS, said that funds were concerned enough about the UK’s future relationship with the EU to put plans on hold, and even to divert investments elsewhere. “We have not made any new office investments in the UK since before the referendum,” Brundage said. “The offices we have in the UK are doing well, but we are not taking any more. When I came to the UK, I could never have imagined that this would be happening. Now, we just need to know what Brexit will mean. There’s more downside risk than upside opportunities at the moment. The positives for us are France and Germany.”
Oxford Properties’ Paul Brundage: “We just need to know what Brexit will mean”
Life-saving Carbyne app signals new era for emergency services THE FORMER Prime Minister of Israel is in Cannes to promote a “life-saving” emergency-services support app to the international markets. Ehud Barak, who was Prime Minister between July 1999 and March 2001, is chairman and a major backer of Carbyne, the company behind a digital platform that assists emergency services in locating callers using modern geo-positioning smartphone functions. Yesterday, Barak participated in a panel held by Metropole Nice Cote D’Azur, which examined the cities of the future and the evolving needs of consumers. Speaking at a press conference after the session, he urged city planners and local authorities to pay closer attention to the technological innovations that are improving the way emergency services can be delivered. “Real estate people who develop urban areas have to take [security] into account,” he said. “They
Former Israeli Prime Minister Ehud Barak: “We are ready to respond”
have to build relationships with local authorities. They have to understand the interactions and challenges of making life flow in cities. Security is an important part of that.” The demise of landline usage has presented new problems for emergency-service responders, chiefly around locating callers. Carbyne, which was known as Reporty until a rebrand last month, has developed a range of means to assist in getting data to public-safety answer-
ing points (PSAPs), and take advantage of the numerous functions in smartphones to respond to calls more quickly and efficiently. The app was launched in Israel, but Barak said that it had been developed to be flexible enough to work virtually anywhere: “In some countries like France, there is more focus on privacy, while in other countries there is a different balance. We are ready to respond to this. We can be flexible and adapt.”
Italy aims to ‘inspire partnerships’ THE ITALIAN Trade Agency (ICE) is confident that it is presenting “the best of Italy” at this year’s MIPIM, with its most efficient use of exhibition space yet. “This is our fourth time at MIPIM, and every year has been a learning experience,” said Piergiorgio Borgogelli, director general of ICE. “We really created the stand that we wanted this year, with all the regions represented and separate city booths for Milan and Bologna. It’s a great showcase for our ex-public real estate assets and key trade associations.” Sixty-seven investment opportunities in Italy have been selected for particular attention out of the 360 that can be reviewed on ICE’s Invest In Italy website.
ICE’s Piergiorgio Borgogelli: “the best of Italy”
MIPIM News 3 • 16 • 15 March 2018
“These projects cover every sector, from tourism to logistics, from healthcare to residential,” Borgogelli said. “Our focus is on offering investors a wide range of content at MIPIM to inspire investment partnerships. These include great port and waterfront renewal projects in Trieste and Genova, as well as plans to turn the former Expo 2015 area in Milan into a smart city. As well as showcasing all these projects on our portal, interested parties can also contact our dedicated investment desk.” Borgogelli added: “Our hope is not only to make these projects come alive at MIPIM, but also to see real continuity after the conference with them becoming concrete examples of urban renewal.”
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FLINTOFF BATS FOR MANCHESTER FORMER England cricketer Andrew ‘Freddie’ Flintoff was at the Manchester stand talking about investment opportunities in England’s northwest towns of Bolton, Stockport and Oldham, as well as Manchester. “I like property,” Flintoff said. “I like creating buildings. And I like creating a finished product you can touch.” Logik Developments was formed in 2016 by Flintoff and two fellow directors Neil Spencer and Tony Bhatti, and is currently involved in developing residential and student accommodation. Flintoff said that part of his commitment to developing in the area was that he wanted to give something back. “Manchester has done so much for me, and I want to see England’s northwest booming.”
Former cricketer Andrew Flintoff
INFABODE GOES CROWDFUNDING ONLINE real estate resource Infabode is promoting a crowdfunding campaign at MIPIM to raise £750,000 (€847,000) for the platform’s growth. “We launched Infabode to the public at MIPIM two years ago,” said founder and CEO Matt Partridge. “At that time, we had just 10 industry content partners supporting our vision. Two years on, we have 450 leading companies supplying research, market analysis, blogs and news articles to our site, which is free to join, and free to use. “We’ve raised £650,000 in the first five days of the campaign. It’s going incredibly well so far.”
Mayor predicts more to come for booming city of Leipzig THE GROWTH of Leipzig is now both sustained and sustainable, according to the German city’s mayor, Burkhard Jung. In the wake of reunification in 1989, Leipzig went into decline, with a fall in population of 100,000 in the 1990s. In the last 10 years, however, the city has gained more than 100,000 people and is set to grow further, according to Jung. “It’s the fastest growing city in Germany and now is the time to invest in housing and economic development,” he said, adding that the continuing strength of Leipzig’s university — the country’s second oldest — is another attraction. The city has rebuilt its economy around five sectors — automotive, logistics, media and creative, environment and healthcare — and Jung believes further growth is to come. To that end, the city authorities
have identified two areas for intensive development. The first, the site of the former trade fair, is dedicated to commercial development. “We are promoting it very strongly,” Jung said. “There is a biotech centre, a startup centre and many possibilities to invest. We have decided to build
a new trade fair ground outside the city and there is a great big area — 50 ha — of the old trade fair ground.” The second area is the former industrial zone near Leipzig’s train station, which has been allocated for housing and general commercial use.
Mayor of Leipzig Burkhard Jung
Bordeaux embraces city heritage SHOPPING centre developer Apsys formally launched its Bordeaux Saint-Jean project at MIPIM yesterday. The development will be located between the city’s train station and the river Garonne and will
be centred around a new boulevard for pedestrians and cyclists linking the two. Importantly, the materials used for the project will reflect Bordeaux’s traditional architectural form and protected status.
Delegates at the launch of Apsys’ Bordeaux Saint-Jean project
MIPIM News 3 • 18 • 15 March 2018
“We are here in the protected areas of UNESCO, in the ‘city of stone’,” said project architect Edouard Francois. “Stone will be our architecture and, just like the city centre, the new quarters will be constructed using scale building. The integration of this new development in the city will be our commitment.” According to Apsys, Bordeaux stone will be enhanced by contemporary architectural elements, such as glass, that will prompt “a real dialogue with the city’s history”. The Bourdeaux Saint-Jean project forms part of a wider regeneration strategy for the city, which was prompted by the planned arrival of high-speed trains to Paris.
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CALL FOR PROJECTS FOR ILE DE FRANCE BUSINESS PARK PLANS for the Mantes Innovaparc were unveiled yesterday at MIPIM, with a call for projects to participate in this next-generation business park in Ile-deFrance. According to Xavier Hemeury, director general of the local development agency, EPAMSA, the city park “will foster diversity and be a real living quarter of Mantes, with residential, retail and leisure elements making it a place to work and play.” Located in Buchelay, the Mantes Innovaparc comprises over 58 ha of land in a strategic location. Designed by urban architects Devillers, it is just 35 minutes from the centre of Paris and 25 minutes from La Defense, along the A13 motorway. Its rail connections reach Paris St Lazare in 35 minutes and Rouen in 45 minutes. “In our first call for projects, with a deadline in May, we’re encouraging a diverse range of schemes, businesses and ideas to enrich the Innovaparc. By November we plan to be greenlighting the next exciting project phases.”
EPAMSA’s Xavier Hemeury
Lyon to prioritise quality of life to attract best firms and talent
Metropole of Lyon’s David Kimelfeld: “ambitious objectives”
FRANCE’s second city, Lyon, is promoting itself as a destination of choice as it seeks to attract companies to the area. This is largely being done by the improvement of existing assets, as well as new development, according to David Kimelfeld, president of the Metropole of Lyon. “We can only attract companies if we can attract talent,” he said. “We need to attract through
quality of life, so we are trying to improve the attractive assets of our metropole.” The Lyon region now boasts six million sq m of office space, with nearly 270,000 sq m taken up last year. Kimelfeld is aiming for further growth: “Today in the metropole area, we have ambitious objectives to go beyond 300,000 sq m of office space this coming year.”
Kimelfeld said the market was currently strong as Lyon has vacancy rates below 6%: “That’s very important. It’s reassuring for investors.” However, he said the city also had to remain vigilant and ensure it continues to develop projects, so that it does not miss out on opportunities for companies that may want to take space in the area. Talking about current projects, Michel Le Faou, vice-president of the Metropole of Lyon in charge of urbanism, cited Silex 2, the extension and refurbishment of the former EDF tower that will provide 30,000 sq m of office space on its completion in 2019. “That shows our ability to regenerate the space we have around [office hub] Part-Dieu,” he said. “We are working on former buildings and giving them a new life and Silex 2 is just that — it’s a revamp of an existing tower block.”
Dublin upbeat about Brexit effect IRISH capital Dublin should have a stronger presence at MIPIM as it seeks to capitalise on the economic fall-out of Brexit and its potential impact on the UK. This is the view of Andy Brainin and Philip Brainin, directors of office and residential investor South Hill Capital. “Dublin is a very positive market at the moment and there is an upbeat mood about the possibility of businesses transferring to the city in the wake of Brexit negotiations,” said Andy Brainin, amid speculation that some London financial services may relocate to Dublin. South Hill Capital typically invests in office buildings up to €10m, often with a residential component. Residential makes
up around a quarter of its portfolio by value and the company typically looks to refurbish and hold, rather than recycle. “We tend to buy Georgian office stock in prime locations, much of which has not been invested in,” Philip Brainin said. “We then
refurbish it and prefer to hold the assets for the long term because, currently, the returns are better in Ireland. We are very keen to find more possible acquisitions, which is why it’s so frustrating that Ireland is not represented in the same way as the UK.”
South Hill Capital’s Philip Brainin (left) and Andy Brainin: hearing it for Dublin
MIPIM News 3 • 20 • 15 March 2018
THE MIPIM WORLD We hope to see you at our next events
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Aberdeen Standard Investments to push into Europe and Asia ABERDEEN Standard Investments is looking to maintain its position in the UK, achieve strong growth in Europe and build up its Asian business. The institutional investor is also watching for opportunistic acquisitions in the US as it aims to double AUM by 2025, said Andrew Creighton, head of real estate for Continental Europe. Aberdeen and Standard Life announced their merger a year ago and formally combined in August 2017. Having aligned the two real estate arms of the businesses, the first new product from the combined venture was a listed pan-European logistics fund, which is principally targeting Germany, the Netherlands and France, with Poland, Spain and Finland also of interest. A pan-European residential fund is the next proposed
Aberdeen Standard Investments’ Andrew Creighton: set to launch pan-European residential fund, following on from its pan-European logistics fund
launch, building on the circa €5bn that Aberdeen Standard Investments has already
invested in multi-family assets, particularly in Germany, which has a well-established
Co-working out well for London’s Fora IT IS essential that tenants in co-working buildings “feel that it is their space” if owners are going to retain occupants on long-term leases, according Katrina Larkin, co-founder of specialist provider Fora. Attending MIPIM for the first time, Larkin, who serves as head of experience at London-based Fora, said that the crowded marketplace in the UK capital meant that standards have risen rapidly to suit increasingly demanding tenants. “We consider ourselves the guardians of the building,” she said. “But tenants can host their own networking events. They get to have a say in things like the design aspect and the music. We like to get them involved in the details of the building. It’s really all about them.”
One of Fora’s co-working spaces in central London
MIPIM News 3 • 25 • 15 March 2018
private rented sector. “Logistics is a very interesting area for us to invest in,” Creighton added. “We foresee strong growth in this market and we’re looking for assets with durable income streams and the ability to grow rents. We have been strong in residential and, typically, look for markets, like Germany, with an established history. We are also very active in the Nordics.” To that end, Aberdeen Standard Investments is also looking to grow its multifamily assets in the Netherlands, France, Denmark and Sweden. However, Creighton emphasised that, across its European funds, the investor would consider any attractive tier-one cities. Looking ahead, Creighton said that two more balanced funds would be launched. He also said the “deal flow has been quite good” as Aberdeen Standard Investments expands its real estate presence across the continent. “We’re also increasingly active in alternatives, whether that’s student housing, hotels or other categories,” he added.
Fora opened its first London building in 2017 and a second site two weeks ago. Both buildings are in Clerkenwell in central London. Fora, which develops and operates its own sites, is beginning to work with property-owners looking to convert existing sites into co-working spaces. Co-founder and CEO Enrico Sanna said: “We believe that co-working is not a fad — it’s here to stay. There’s a lot of growth in this way of working. There’s been a real shift. Real estate is traditionally very capital-heavy, but co-working is super-light in capital. And now owners are asking us how they can get serious about this.” Sanna added that Fora, which is backed by Brockton Capital, has plans for a number of new sites as part of an aggressive growth strategy in the UK, with international expansion also likely.
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Altus CEO stresses the power of data in global marketplace INTELLIGENCE and analytics are more important than ever if property investors and developers are going to succeed, the head of one of North America’s largest data consultancy has said. Bob Courteau, chief executive of Canadian data giant Altus Group, said that as the amount of information available to investors becomes ever greater, “sophistication of analytics has to go up” accordingly. Courteau said that while the property industry had been less quick to understand the power of data than other sectors, it has caught up with the times with discussions now taking place “at boardroom level”. “We are moving to a more modern environment where data is being recognised more by chief executives. When you come to MIPIM you really find out what’s going on and you have lots of conversations with high-up people. People are having to deal with globalisation and they need to understand, and
they have to take risks by going into markets that they are less familiar with. “The solution to that is to look to data and analytics to get a thorough understanding of a new market. But there are still people who haven’t really understood the risks of
not having the right data, or the opportunities it presents.” Courteau is speaking at MIPIM today at a session entitled Data: The New RE Business Driver, which will discuss the latest thinking in data analytics strategy for real estate developers.
TURKISH international architect Tabanlioglu has recently announced the new designs that will transform the Ataturk Cultural Centre in Taksim Square, Istanbul. A relic of an earlier design age — the 1960s — Tabanlioglu’s plans will bring the building into the 21st century. With opera and ballet being the core functions, the platform will be updated to supply a space suitable for both national and international performances, with renewed backstage facilities. The 1960s facade that overlooks Taksim Square will be reconstructed. The project’s new structures include terraces, cafeterias and a rooftop restaurant. Tabanlioglu’s Melkan Gursel explained the practice’s design philosophy: “Our secret is to understand mentalities. The mentalities of clients and the mentality of cultures. And we respect budgets,” Gursel said.
Altus Group chief executive Bob Courteau
Moscow movie scheme in spotlight RUSSIAN developer ADG Group has committed $1bn (€808m) to regenerating 39 Soviet-era cinemas in Moscow’s suburbs. The company acquired the redundant cinemas in 2014 from the Moscow municipality and plans to redevelop them into district centres, including supermarkets, cafes, restaurants and cinemas. The existing cinemas total 160,000 sq m, but ADG has secured agreement from the Moscow authorities to increase the space on the sites to 500,000 sq m. Grigoriy Pecherskiy, managing partner at the ADG Group, confirmed that the project is now fully funded. “We might be interested in bringing in some more equity partners in the future, but it is fully funded,” he said. “We can build all of
PLANS ON SHOW FOR ISTANBUL ARTS CENTRE
it now — it’s a $1bn investment.” Pecherskiy added that the projects would improve the quality of life for millions of Moscow residents. “Today, people don’t have somewhere to go for dinner with their
friends; they don’t have access to a cinema within walking distance,” he said. “We believe that our offer will give people a totally different quality of life.”
ADG Group’s Grigoriy Pecherskiy
MIPIM News 3 • 27 • 15 March 2018
“We aim to achieve a balance between good design, making the environment better, at the same time as bringing the project to completion within budget. As architects we believe that good design can add something good to people’s lives. If it doesn’t do that, architecture is a failure.” Gursel is attending MIPIM because “good architecture needs good investors, and MIPIM is a good platform for bringing the two together”.
Tabanlioglu’s Melkan Gursel
MIPIM and MetaProp NYC have partnered to organize MIPIM PropTech, the premier Real Estate and Tech event. Join us in October, 2018 - NYC
: @MIPIM PropTech
: MIPIM PropTech
Ruby opens first London hotel as European expansion gathers pace GERMAN-based boutique hotel chain Ruby is to open its first London hotel at Waterloo in summer 2019 and aims to take its “lean luxury” to further markets around Europe, according to company CEO and founder Michael Struck. Struck is seeking further investors to help expand beyond the four hotels Ruby has already opened and the additional nine under construction. The hotel brand has been devised to appeal to the “cosmopolitan avant-garde”, Struck said, with a concept of four-star luxury, including a 24hour bar, and high-quality finishes and beds, delivered with smaller footplate rooms. “We have created a concept that is modular by design and can fit into almost any building shape and co-locate with retail, offices and leisure,” he said. “We can fit into
spaces as small as 2,000 sq m and typically look for a 70- to 200room operation, with each site having its own local personality. The Waterloo hotel will have 76 rooms. It will be called Ruby Lucy and it will have an environment linked to the site’s former life as a fairground.” Having initially found locations in German-speaking Europe, Ruby hotels will now focus on French-speaking Europe and other capital or high-visitor cities in Western Europe. The company has also opened two co-working spaces and intends to open more of these within or adjacent to its hotels. It is also looking at the mid-stay serviced-apartments market. “What we are creating is a brand that our customers love and that we can leverage into other, complementary areas,” Struck said.
Ruby’s Michael Struck: “lean luxury”
Dialogue better than ‘design beliefs’ EDINBURGH-based Reiach and Hall Architects does not believe in “imposing its design beliefs” on clients, according to directors and MIPIM first-timers Lyle Chrystie and Carol MacBain. The design philosophy of the practice is based on “deliberately not having a house design philosophy”, Chrystie said. “Finished projects always work better when they come out of a dialogue between designer and client. If you impose your design beliefs on a project you can run into the danger of not taking into account what the building is actually for. What we want to do is create the maximum amount of best space.” MacBain pointed to the practice’s work on Maggie’s Centres as an example of the team’s design approach. Maggie’s consists of a
network of drop-in centres across the UK, which aim to help anyone affected by cancer. In terms of design, the aim is to make the Centres “uninstitutional”, MacBain
said. “They are designed to be relaxing and welcoming. There’s no officious-looking check-in desk. You go straight into a kitchen and get a cup of tea or coffee.”
Reiach and Hall’s Lyle Chrystie and Carol MacBain
MIPIM News 3 • 29 • 15 March 2018
CYPRUS CALLING INVEST Cyprus has a message for the market: “Now is a good time to take a look at investing in Cyprus.” So said Lefteris Eleftheriou, senior investment promotion officer at Invest Cyprus, which has brought a group of Cypriot companies to MIPIM for the first time this year. Invest Cyprus helps potential investors seeking to enter the Cypriot market. “Businesses and individuals looking to invest in Cyprus have a partner on the ground with our organisation, which will help them at all stages of the investment cycle,” Eleftheriou said. The companies on the Invest Cyprus stand include Cybarco, Cyfield, Tassos Papadopoulos & Associates, Zaria, and the municipalities of Limassol and Nicosia. The mayor of Nicosia, Constantinos Yiorkadjis, was on the Invest Cyprus stand to talk about his city’s investment potential. “We have three advantages,” he said. “Firstly, our economy is on an upward curve. Secondly, we are investing in infrastructure, specifically cultural infrastructure — the world-renowned architects Jean Nouvel and the late Zaha Hadid have designed cultural buildings in Nicosia. And thirdly, we’re youth orientated.” Hadid designed Nicosia’s Eleftheria Square — “a bold intervention to connect the historic Venetian-era fortified walls with the streets of the modern city”, Yiorkadjis said. Nouvel, meanwhile, designed the University of Cyprus’ new library building. “We have the largest number of students on the island,” Yiorkadjis added. “And we’re targeting investment into creative and tech startups. Cyprus historically was a corridor between continents — and it still is.”
240-310 MIF PROGRAMME thursday
EXPLORE THE MIPIM INNOVATION FORUM
Connect and forge commercial relations with cutting-edge startups and technology companies to build the future of Real Estate industry. INCLUDING:
Over 1 000 sqm of exhibition area • Networking bar & area • Startup lounge & competition finals •
Innovation conference room • Innovation matchmaking session •
THURSDAY 15 MARCH 10.00 – 10.45 The tech shift in architecture & design: at the users’ service 11.15 – 11.45 Grenoble: high tech and low tech innovations, two pillars for inventing cities in transition Sponsor: Grenoble Alpes Métropole
14.00 – 14.45 The urbanized future: a great city debate Co-organiser: RICS
15.15 – 16.00 Future of work: the benefits of inclusion 16.30 – 17.00 The impact of Blockchain technology on the future of Real Estate investing Sponsor: Brickblock
LET’S MEET IN PALAIS -1
Polish business services companies see growth POLAND’s business services companies leased 500,000 sq m of office space in the country in 2017, according to JLL. This represents one third of the overall demand registered in the major office markets, including Warsaw. The business services sector is one of the most rapidly developing branches of the Polish economy. JLL’s analysis shows that business services centres currently employ 265,000 people about 20% more than in Q1 2017. “Fifty new centres will likely open in the following months, and companies already present in Poland will certainly continue to expand their workforce,” head of office agency and tenant representation at JLL, Anna Mlyniec, said. Warsaw saw 100,000 sq m leased by the sector. The main
metropolitan areas outside the capital accounted for 400,000 sq m — up to 60% of total demand for office space on regional markets. The biggest lease agreements concluded by companies from the business services sector included: a confidential tenant (25,500 sq m ) in Poznan, Citi Service Centre Poland (18,600 sq m ) and J.P. Morgan (15,600 sq m ), both in Warsaw. “Poland is the leader in the CEE’s business services sector. Last year Warsaw, Krakow and Wroclaw, each saw business service centres lease 100,000 sq m . The sector also claimed a record-breaking share of office demand in Lodz with service companies responsible for 80% of office space demand in the city,” head of research & consulting at JLL, Mateusz Polkowski, said.
WELL doing well across Europe TAKE UP of the WELL Building Standard in Europe is gaining momentum, with over 150 projects across 13 countries now engaged with the healthy building certification scheme. Since its US launch in 2014, almost 750 projects totalling over 140m sq ft of real estate globally have either been registered or certified through WELL, with Europe making up approximately 25% of projects by space. In the UK, the TP Bennett-designed Porter Building in Slough, west of London, last month became the first in the country to achieve WELL Core & Shell Certification at Gold level. Meanwhile, multi-disci-
plinary engineering and sustainability consultancy Hilson Moran recently achieved Gold WELL Certification for its new Manchester office. Chris Birch, director of sustainability at Hilson Moran, said: “Applying it to our own premises in Manchester not only highlights our expertise, it also shows our commitment to setting an example.” In total, there are currently 49 WELL projects under way in France; 27 projects in the UK; 19 projects in Spain; and 14 projects in the Netherlands. In addition, there are six projects in Ireland, with one — Arup’s office at One Albert Quay — certified.
MIPIM News 3 • 31 • 15 March 2018
CONFERENCES & EVENTS 2018
PARTNERS’ PROGRAMME THURSDAY 15 MARCH Verrière CALIFORNIE PALAIS 5
RUBY ROOM PALAIS 5
Verrière GRAND AUDI PALAIS 1
11.00 | 12.00
Helsinki Metropolitan Area: a world-class innovation and start-up hub Sponsor: City of Helsinki
14.30 | 16.00
BiodiverCity : an international call to action. Signature of the charter to develop green and biodiversity in cities. Sponsor: IBPC
10.00 | 11.00
Warsaw: A new cityscape on the horizon Sponsor: Cushman & Wakefield
THURSDAY 15 MARCH
Mipim Awards Ceremony 18.30 - 19.30 Grand Auditorium, Palais 1
227 entries from 55 countries competed in 11 categories, and 44 finalists were shortlisted by a jury panel of real estate experts.
Discover the MIPM Awards winners at this must-attend prize-giving ceremony, followed by a cocktail reception.
11.00 | 12.30
«Inventing Greater Paris Metropolis », let’s go further with the second edition - Official launch event
Guest of honour Alain Robert, The French Spiderman
Sponsor: Métropole du Grand Paris
Famous for his free solo climbing, he has conquered more than a hundred of the world’s tallest buildings using nothing more than his bare hands.
To open the awards ceremony, he will talk about his unique relationship with cities and buildings.
14.00 | 15.30
Toulouse : development opportunities around the new Exhibition & Convention Center Sponsor: Toulouse Métropole
JOIN THE CONVERSATION ENGAGE WITH MIPIM 2018 ONLINE & ONSITE
CONFERENCE LIVE TWEETS AND KEY SHOW TWEETS: @MIPIMWORLD #MIPIM
LIVE REPORTS & MORE ON MIPIM’S OFFICIAL BLOG: http://www.GlobalRealEstateExperts.com
DAILY REPORTS: http://www.youtube.com/mipimworld
OFFICIAL MIPIM PHOTOS, DAY-BY-DAY: http://www.flickr.com/mipimworld
& please feel free to share your MIPIM experience on Instagram, Facebook, LinkedIn:
we’ll be keeping an eye out !
Programme as of March 8th, 2018. May be subject to change.
MIPIM NEWS 15 MARCH_v2.indd 1
CONFERENCES & EVENTS 2018
PROGRAMME AT-A-GLANCE THURSDAY 15 MARCH MAIN ROOM
WORLD TRENDS ROOM
10.00 | 10.45
Data: the new RE business driver
IoT: human connection in every Sponsor: Siemens building
14.00 | 14.45
11.15 | 12.00
HOTEL & TOURISM
11.15 | 12.00
Urban logistics: the next challenge for cities
Co-organiser: Iberian Property-Vida Imobiliaria
12.30 | 13.15
12.00 | 12.30
10.00 | 10.45
TECH. & SERVICES
11.15 | 12.00
TECH. & SERVICES
Tech shift in design & architecture: at user’s service
Grenoble: high tech and low tech innovations, two pillars for inventing cities in transition
14.00 | 15.00
14.00 | 14.45
Africa: key success factors
16.30 | 17.30
16.30 | 17.15
International rules: the impact on local markets
16.30 | 17.15
Housing: inside the revolution in urban living EMEA
MENA: drivers & constraints on the property investment markets Sponsor: Equitativa
Mixed use: the art of sharing
14.00 | 14.45
14.30 | 15.30
Powered by: Schoolab DEMOGRAPHICS
16.30 | 17.00
TECH. & SERVICES
Future of work: the benefits of inclusion
The impact of Blockchain technology on the future of Real Estate investing Sponsor: Brickblock
17.00 | 18.00
CLOSED-DOOR-EVENTS By invitation only
11.00 | 12.30
Grand Auditorium - Palais 1
Pecha Kucha Future urbanity: the unthinkable world
Design thinking: the X-factor
15.15 | 16.00
Salon Croisette - Palais 4
TECH. & SERVICES
Co-organiser: RICS HOUSING
Sponsor: Rendeavour Media partner: Jeune Afrique
Powered by: Schoolab
Design thinking: the X-factor
The urbanized future: a great city debate
15.15 | 16.00
Circular economy: the long-term benefits
Workplace: the human factor
15.00 | 16.00
Design thinking: the X-factor
Powered by: Schoolab
Africa: the urbanisation effect
10.30 | 11.30
12.00 | 13.00
Sponsor: Gesvalt, Roca Junyent
08.30 | 10.00
CREATIVE TRENDS ROOM
10.00 | 10.45
Hotels with an urban view: room for innovation
Opportunities and challenges: Spain’s main cities
Emerging economies: the shift of gravity
15.15 | 16.00
Residential investment in Europe: Portugal, an ever-growing hotspot
City as a service: the new urban experience
12.30 | 13.15
10.00 | 10.45
INNOVATION TRENDS ROOM
South America’s cities: success stories to share
Sponsors: Altus Group, Siemens
11.15 | 12.00
MARKET TRENDS ROOM
18.30 | 19.30
08.00 | 10.00
13.00 | 14.30
HOTEL & TOURISM
Majestic Hotel - Salon Diane HOTEL & TOURISM
Knowledge partner: McKinsey & Company
16.30 | 19.00
Le Tube Restaurant
Grand Auditorium - Palais 1
Official media partner: Immobilien Zeitung
FRIDAY 16 MARCH INNOVATION TRENDS ROOM PALAIS -1
10.00 | 11.00
Programme as of March 8th, 2018. May be subject to change.
MIPIM NEWS 15 MARCH_v2.indd 2
HOTEL PROJECT SHOWCASES PANEL AND DISCUSSIONS Co-organized with PKF hotelexperts
THURSDAY, 15 MARCH EXTRAORDINARY & EXCITING - INNOVATIVE RESORT HOTELS
ECO Estrela - first phase Six Senses Formosa Bay Piotr Maj, Head of the Project Management Gremi International s.a r.l. Wolf Hengst - Executive Chairman Six Senses Hotels Resorts Spas
nhow Marseille Palm Beach Luis Arsuaga, SVP Development, NH Hotel Group
TUI Resort Project Dieter Kornek, Head of Project Scouting, TUI Hotels & Resorts
Questions and answers session followed by meet and greet with the speakers
ECOLOGICAL & ECONOMICAL - TOURISM AND LEISURE PROJECTS
Mixed-use Real Estate. Next steps: Budget Airport Hotel & Activity Development Yuriy Kryvosheya, Managing Partner & President, PJSC Toronto-Kyiv (Mixeduse Real Estate)
MANA Concept-a new season for hospitality industry Markus Fischbacher, Business Development, Mana Concepts
Two cities – two different approaches to further develop city tourism Amsterdam vs Hamburg Ed Rentenaar, Vice Mayor of Lelystad René van Schie, Director of hotel and leisure developments, Amsterdam Metropolitan Area Robert Bojdecki, Key Account Manager, HIW Hamburg Invest
PKF hotelexperts cocktail reception (PKF Hotel & Tourism bar)
HOTEL & TOURISM NETWORKING ROOM , PALAIS -1 EXHIBITORS & PARTNERS
Where Inspiration becomes reality!
Hotel, Tourism and Leisure
Where Inspiration becomes reality!
Seven elite cities account for 25% of real estate investment DELEGATES at the Global Cities: The New Powerhouses conference yesterday were told that 25% of global real estate investment is currently channelled into just seven world cities: London, New York, Paris, Hong Kong, Tokyo, Singapore and Seoul. Only these seven can truly call themselves “global cities”, according to Rosemary Feenan, director of global research pro- Talking global cities: Greater London’s Jules Pipe (left), Belfast’s Suzanne Wylie, Turkish Deputy Minister Mehmet Ceylan and JLL’s Rosemary Feenan grammes at JLL. But Feenan warned that the top from their geography: “They’re global city, Feenan added: “It’s league will always be subject to in the process of breaking away not total population, nor GDP. change. There are currently 10 from government control in sig- It’s really about how far the city second-league cities pushing nificant ways. And there’s cur- is future-proofed.” rently a readjustment going on Being a global city also has its hard to get on to the top table. “We’re still trying to fully com- round the world between the hazards, Feenan pointed out. And prehend what it is to be a world powerbases of the city: the state competition between top cities is intense. “Cities now have nowhere city,” Feenan said, adding that and the people.” It is not size that makes a true to hide,” she said. “There are curcities havepagina_ADV_2pr_02.pdf become disconnected 1 07/03/18 11:51
rently over 300 indices measuring and comparing cities, and their attributes and conditions.” Mehmet Ceylan, Turkey’s Deputy Minister in the Ministry of Environment and Urbanization, pointed to the importance of infrastructure in enabling a city to reach global status and maintain its position once there. He listed the current “mega-projects” now taking place in Istanbul that will push the city into the elite. These include the new canal between the Black Sea and the Marmara Sea, bypassing the congested Bosphorus straits; a new airport with an envisaged capacity of 150 million travellers a year; the third Bosphorus bridge — the widest suspension bridge in the world; and the new financial centre, which will change Istanbul’s status from a regional financial hub to an international one. Also speaking at the session were Greater London Authority’s Jules Pipe and Belfast City Council’s Suzanne Wylie.
Vote for Italy!
Feltrinelli Foundation & Microsoft House
Best Urban Regeneration Project
Best Office & Business Development
Asset & Property Manager: COIMA Developer: COIMA, HINES Architect: Pelli Clarke Pelli Architects, Kohn Pedersen Fox Associates, Boeri Studio + 20 design architects from 8 different countries
Developer, Asset & Property Manager: COIMA Architect: Herzog & de Meuron
MIPIM News 3 • 35 • 15 March 2018
Paris-Saclay aiming to become the technology hub of Europe THE PLACE to be in Europe alongside a key centre for econom- 18 — as part of the Grand Paris Express project. This will link for innovation and research is ic research.” Paris-Saclay, according to the re- All this is set to be augmented Paris-Saclay with Orly Airport, and gion’s development agency CEO, with the opening of a transport by 2030, will also connect Saclay hub, improving the district’s con- with Versailles. Investors can be Philippe Van de Maele. “The MIT Technology Review nectivity. “At the moment, we do confident that a commitment has nominated Paris-Saclay as one of have urban metro lines which been made to build this line which the top eight innovation clusters reach Saclay, but by 2027, we will will transform the area into a suin the world, alongside the likes have a dedicated train line — route per-connected innovation district.” of Silicon Valley, Beijing and Tech City London,” Van de Maele said. “Located south-west of Paris, its dense and diverse ecosystem comprises 40% of the Paris region’s public research institutes and 40% of the city’s industrial high tech R&D. The new university which is taking shape will be completed in 2020, and is attracting some of the city’s most important scientific higher education institutions. The school of pharmaceuticals, for example, is coming to Saclay, Philippe Van de Maele, CEO, Paris-Saclay development agency 144_MARSEILLE_N2&3_PIM
KNIGHT FRANK TO ROLL OUT NEW DIGITAL PORTAL EQUIEM, the global proptech company, marked another stage in its expansion yesterday following an agreement with Knight Frank launching its digital tenant engagement platform across a portfolio of properties managed by the agent. The arrangement involves Equiem providing Knight Frank with building amenities information, ongoing wellness content, and a digital retail store offering click-and-collect ordering, all aimed to improve communication with tenants. Phase two of the roll-out will allow tenants to unlock more value in their underused or vacant space. Equiem and Knight Frank will start the partnership at 88 Wood Street, an office building in the City of London.
13I16 MARCH 2018 PA L A I S D E S F E S T I VA L S C A N N E S STAND R7 – E57
Meet us at MIPIM 2018
everything is possible MIPIM News 3 • 36 • 15 March 2018
Constructa / © Ateliers Jean Nouvel
Casablanca: gateway to Africa and an investment destination CASABLANCA can now boast a series of live development projects ripe for investment, according to the partners supporting the Invest In Casablanca stand at MIPM 2018. The group is made up from three companies — Kaizen Real Estate, Alhambra Property and Business Realties International — plus the city region’s inward investment body. Deloitte is also backing the delegation. Projects include a 1,200 ha multi-use scheme to the south of the city, the first phase of which is now on site. “It isn’t just residential; it’s also offices and hotels and industrial,” said Nazih Chentouf, managing partner, Alhambra Property. “The first tranche will include 4,000 apartments, plus educational facilities.”
Then there is the Casa Anfa project in the heart of the city on the site of the former airport. “We want to create a financial centre like the City in London,” general manager at Kaizen Real Estate, Kamal Nourji said. “This is in line with Casablanca as the gateway to Africa.” According to the partners, the projects —
alongside other opportunities — should provide confidence to the investment community. “Our message is that Casablanca is an investment destination, reinforced this year by concrete projects,” said Mohamed Charif Houachmi, partner at Business Realties International. “It’s something that investors can see.”
The Casablanca delegation
134_JR WEST MIPIM2018 Daily News Half page
MIPIM News 3 • 37 • 15 March 2018
LILLE TO GET NEW ‘TECH ECOSYSTEM’ DEVELOPER VINCI Immobilier and architect Lalou+Lebec are at MIPIM to promote “a tech ecosystem dedicated to entrepreneurship and innovation” in the form of a new scheme called Wenov, part of the EuraTechnologies complex in Lille in the north east of France. The 23,000 sq m urban and societal laboratory will house research centres, prototyping laboratories, technological showrooms, co-working spaces, schools and training centres for digital professions. “Designed as a hyper-hub that dialogues with the emblematic Euratechnologies site, completely open and connected to the life of a booming eco-district, Wenov will also be a sustainable urban model integrating new mobility solutions,” Olivier de la Roussiere chairman of VINCI Immobilier said.
Japan’s oldest real-estate Tokyo already planning firm looking to go global for post-games legacy TOKYO Tatemono is at MIPIM looking at the UK, US and Australian markets for potential investments, as it considers expanding beyond its domestic and Asian markets. The Japanese developer — at 122 years old the country’s longest-running real estate business — has been active in China for over a decade, has also developed in Singapore and has a site in Jakarta. Recently it has focused on large, mixed-use schemes.
Executive managing officer and CFO Katsuhito Ozawa said that while the company tends to develop and then sell on its Asian projects, in Western markets it would look to become a long-term developer and holder of real estate.“This is my first time at MIPIM,” he said. “Japan continues to be a stable market but prices are high. We may also consider partnerships with some of the inward investors from overseas going forward.”
Tokyo Tatemono’s Shinroku Wakayama (left) and Katsuhito Ozawa 210_RM AWARDS_N1&3_PIM
TOKYO is on track to receive a massive influx of tourists for the Olympic Games in 2020 and is preparing for the postgames legacy already, according to the head of urban development for one of Japan’s largest property companies. Toshiyuki Inoue, general manager for urban development promotion at Mitsubishi Estate, has said that a whole swathe of projects is under way in Tokyo in readiness for the Olympic Games in two years’ time. Inoue highlighted the ambitious Marunouchi project, which is taking shape in the centre of Tokyo in the capital’s Central Business District. The development, which is close to the historic Imperial Palace and to Tokyo Station, is a major longterm regeneration of a large
Mitsubishi Estate’s Toshiyuki Inoue
part of the city centre, close to where the Olympic Games will be held. “We have 30 buildings in the Marunouchi area,” Inoue said. “This area will continue to attract people long after the games have finished, and there are plans to convert new buildings like the athletes’ village to uses for the people of Tokyo. We will keep attracting people to Tokyo and Japan.”
THURSDAY 15 MARCH FROM 18.30 GRAND AUDITORIUM, PALAIS DES FESTIVALS
MIPIM AWARDS CEREMONY
FOLLOWED BY A COCKTAIL RECEPTION OPEN TO ALL PARTICIPANTS
DON’T FORGET TO VOTE ONSITE FOR YOUR FAVORITE PROJECT! RENDEZ-VOUS AT THE AWARDS GALLERY - OPEN UNTIL THURSDAY 15 MARCH, NOON!
MIPIM News 3 • 38 • 15 March 2018
Mayor Klitschko hits Cannes with Kiev regeneration plan
Mayor of Kiev, Vitali Klitschko delivers his heavyweight plan
THREE-time world heavyweight boxing champion, the second longest reigning WBC heavyweight champion of all time and now mayor of Kiev, Vitali Klitschko is at MIPIM to promote investment opportunities in his city. “Kiev is undergoing a process of transformation and regeneration becoming increasingly a more promising place to invest,” he said. In the past three years he said that more than half of the investment in Ukraine had been in Kiev. He said the city was committing further budget to upgrading housing and utilities, renovating city transport infrastructure, investing in public healthcare and education and preserving and restoring historical landmarks. Klitschko said a smart city ap-
proach was to be adopted in an upgraded Kiev general plan: “We have an ambition to incorporate the latest smart city technologies into all core city spheres to ensure greater transparency and accountability.” Some have already been introduced, he said. “Over the last two years Kiev has launched as many smart technologies as other cities would do over two decades.” The city aimed to offer accessibility for investors, Klitschko said. “The milestones of city policy are the same — simplified procedures for investors, transparency and accountability of the city authorities. Through investing in Kiev development you put your money into one of the most attractive and promising cities in eastern Europe.”
SAVILLS UNVEILS NEW EUROPEAN RETAIL FUND REAL Estate investment manager Savills Investment Management has launched its Europe V – Retail Fund to target local shopping centres, retail parks, designer outlet centres, high street and other retail assets across Europe. It has already made its first acquisitions, purchasing two assets in the Netherlands from Redevco for €31m. Fund manager Neil Varnham said: “We anticipate that the next 12 to 18 months will present some highly attractive buying opportunities in western European retail. Many European economies have followed Germany and moved into a recovery phase with rising consumer confidence generating growing levels of sales which feed through to demand and rental growth.”
MIPIM News 3 • 39 • 15 March 2018
M&G to fund construction of Dusseldorf prime offices
M&G has invested €100m in Dusseldorf
M&G REAL Estate, the real estate fund management arm of M&G Investments, is to fund the construction of a 15,060 sq m prime office building at the junction of Furstenwall and Friedrichstrasse in Dusseldorf. The €100m deal was made on behalf of the M&G European Property Fund. Located in the City-Sud sub market of Dusseldorf ’s central business the building 247_RMdistrict, WIFI_N1a4_PIM
will be completed in 2019 and is being developed by Art-Invest Real Estate. It is already 33% let on a 15-year lease. Thomas Kaechele, head of M&G Real Estate,Germany, said: “Germany is experiencing strong tenant demand which is driving rental growth and long-term income returns.” The purchaser was represented by Savills.
Good workplace design could help retain talent SKILLS shortages are driving, more than ever, the need for good workplace design, according to David Walker, associate director of UK architect Bennetts Associates. “What’s driving occupiers now is what everyone is talking about which is the skills shortage. The question is, ‘How does any company attract and retain talent?’. Part of that story is the environment in which they work, which is becoming more and more important. That is focusing the end user to the forefront of design, which is where they should be,” Walker said. He urged occupiers to create environments that are friendly and sociable and urged those starting development now to take into account the needs of a technology-focused generation that may still be in formal education.
David Walker, associate director of Bennetts Associates
“More and more a fully-connected building is absolutely essential,” he said, adding: “It’s less about quantity of time at work and more about quality of time at work.The incumbent on architects is to create exciting spaces in which people want to work.”
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New Trowers & Hamlins report reveals true value of real estate INTERNATIONAL law firm Trowers & Hamlins launched a report yesterday setting out a model for linking the financial worth of development with its societal value. The report shows how the monetisation of societal value is now possible with the advent of new valuation methods and presents case studies of how this has been achieved through an understanding of value beyond site boundaries. This kind of valuation is a significant shift away from current methods. The report concludes with recommendations for implementing change by working with investors and the public sector to enhance planning legislation and valuation methods. The report presents recommendations for government and
developers to enhance existing methods of valuation for both the public and private sectors. Sara Bailey, head of real estate at Trowers & Hamlins, said: “We believe that establishing a true measurement of the wider impact of development will allow financial value to be written into feasibility studies, viability studies and planning applications, and will result in a greater commitment to long-term quality.” Trowers & Hamlins convened a working group for the study at the beginning of 2017 comprised of leaders from both the public and private sectors. The group was tasked with exploring the barriers to and opportunities for changing and broadening existing methods of valuation. Following these discussions, the firm
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commissioned consultancy RealWorth to develop a rationale and suggest practical ways to initiate change in the real estate sector. The new research tallies with the Greater London Authority’s Good Growth Agenda as set out in the London Plan, as well as the idea of best consideration of value that was highlighted in the housing white paper last year. “Ideally, it begins with investor partners who are prepared to take a long-term ‘patient’ view,” said Andy Turner, project director at Argent. Taking a development-wide long-term view can give weight to the ‘softer’ social metrics, which ultimately make projects and places more resilient, thereby reducing investor risk. “Where this commercial ap-
Trowers & Hamlins’ Sara Bailey: “a true measurement of the wider impact of development”
proach can be aligned to a local authority that is prepared to take a similar long-term view, this provides a firm foundation for good placemaking and the realisation of financial and societal value.”
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London borough’s problems raise concerns among private investors THE FALLOUT from the London Borough of Haringey’s troubled plans to set up a joint venture regeneration vehicle with Lendlease were addressed head-on at a breakfast event attended by some of the leading lights of the UK development community yesterday. Plans to establish the Haringey Development Vehicle were put on hold last month after campaigners on the hard left of the Labour-run council claimed the joint venture would lead to ‘social cleansing’, ultimately resulting in the resignation of leader Claire Kober. “I think the concern, particularly in London, is this issue of political uncertainty,” said Gerry Hughes, chief executive at consultancy GVA. “I know from
GVA’s Gerry Hughes
Homes England’s Louise Wyman
private sector clients that they’re concerned that may contaminate, if that’s the right word, other boroughs in London.” Hughes added that the debacle raised the wider issue of political uncertainty and the risk that posed to developers. “If that uncertainty exists you’re
really going to put at risk investment from the private sector,” he said. “We’re starting to see a reticence from some of our clients from entering into those relationships when they’re uncertain about the political outlook.” Louise Wyman, head of strategic land at government agency
Homes England, who started her career in the private sector, agreed that stability is the most important thing that the public sector can provide. “What I learned from my time in the private sector is that the best thing you can do in the public sector is to create certainty,” she said. “You need to provide the most stable conditions possible. That’s in terms of political stability, creating the right terrain for investors to come in.” Rob Noel, chief executive, Landsec, agreed, pointing out that investors have a high degree of discretion when it comes to where they deploy capital. “We have to remember that private enterprises have a choice,” he said. “The choice is whether or not they want to allocate their capital to your region or not. Noel added: It’s a bit like a rain drop going down a pane of glass — they’ll take the path of least resistance to produce the best return.”
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L’ A B U S D ’ A L C O O L E S T DA N G E R E U X P O U R L A S A N T É , À C O N S O M M E R AV E C M O D É R AT I O N .
Kyoto housing project balances culture, ecology and sacred site SENSITIVITY to the wishes of Kyoto residents and respect for a sacred site within a World Heritage forest was key to the successful design and construction of a 99-unit apartment complex, completed last year, according to Takashi Kondo, chairman of JR West Real Es-
tate and Development Company. Architect Takenaka’s concept respects both the historic atmosphere of what had become a neglected space surrounding the Shimogamo shrine and the nature of the Tadashi no Mori world cultural heritage site. The architect and developer se-
JR West Real Estate’s Takashi Kondo: preserving the original landscape is important
lected traditional Japanese gable roofing and hid building services such as air conditioning, rainwater pipes and other exterior plant, in order to give a simple and sophisticated appearance to each unit. “This project began with long negotiations with all the interested parties before a two-year construction, which completed in June 2017,” Kondo said. “It was very important to find a balance which satisfied the long-term history and nature unique to the shrine. It also had to preserve the original landscape without affecting the beautiful forests during the construction work.” The apartment complex location forms part of the annual Aoi festival, one of the three major festivals in Kyoto, and includes a common social area in the form of a traditional Japanese tea house.
Pembroke builds German presence GLOBAL real estate company Pembroke is pressing ahead with expansion plans in Germany as part of a long-term commitment to the market. The cross-border real estate advisor, developer and manager has recently completed the leasing phase on a significant investment in Munich, where all of its portfolio, totalling 39,000 sq m, is now fully let. Pembroke has signed deals Oakley Capital and Watson Farley & Williams at its flagship Alter Hof office building in the Lorenzistock district of the city. Pembroke head of UK and Germany Nick Moldon said that the deals underscored the firm’s “commitment to Germany”. “Munich is a strong story for our presence in the market there. We
are very much core investors in terms of prime locations. We are also building our presence in London, where we’ve been since 2000.” Pembroke is an investment vehicle of Fidelity Investments, and
Eight Roads, real estate division of Fidelity International Limited (FIL). The company has a presence in major markets throughout the world, via offices in London, Stockholm, Sydney, Tokyo, Boston and Washington DC.
Pembroke’s Alter Hof building in Munich
MIPIM News 3 • 45 • 15 March 2018
OCCUPIERS WANT FLEXIBILITY SAYS CBRE RESEARCH
CBRE’s Dr Henry Chin
ASIA Pacific’s commercial real estate market will be increasingly defined by changing business conditions, the growing influence of technological innovation, and the desire by occupiers for an enhanced user experience, according to research by CBRE. In 2018, CBRE expects to see occupiers continuing to reconfigure office portfolios to include a combination of core premises and flexible space — such as co-working or shared — as they respond to changing business conditions. Companies will increasingly utilise co-working space due to the flexibility it offers around lease terms and size, as well as cost savings and the opportunities it creates for collaboration and innovation. As a result, investors will look to refine investment strategies, the firm says. Dr Henry Chin head of research at CBRE Asia Pacific, said: “The balance of power is shifting in the region’s business landscape. Companies are building a greater degree of flexibility and agility into their corporate real estate strategy to ensure they can react quickly to what is often a rapidly changing external environment. User experience in the workplace, and as a consumer, will play a more influential role and become a more prominent focus for occupiers as a result of wider market shifts.”
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Don’t forget the ‘human factor’ when designing office space THE DESIGN of office space should reflect the diverse needs of its occupants and must avoid adopting a one-size-fits-all approach to the work environment, design principal at HOK, Larry Malcic, said. Malcic, who speaks this afternoon on session Workplace: The Human Factor, said millennial and gen-Z expectations of the working environment, plus a greater understanding that productivity can be raised by creating great places to work, have helped steer office designs in a new direction. “Far from favouring remote working, millennials like to have a central workspace where they can come together. But they want collaborative spaces where they can be creative and socialise,” he said. “It’s this collaborative approach that sparks ideas. That’s exactly why cities work so well.” Malcic pointed to the fact that workplace approaches should recognise that “millennials may have 14 or 15 different employers in their working life and perhaps two or three careers”. He added: “Work doesn’t have to be unenjoyable and a great
HOK’s Larry Malcic: New directions for office space
office environment can help retain and make employees more productive.” This is not limited to new buildings either, although he warned that attention must be paid to acoustics.
“As we open up old office spaces and make them more openplan and flexible, people often forget about the new acoustics. If I had one piece of advice, it is to make sure these are right.”
Millennials want intelligent buildings PROGRESSIVE businesses are looking to meet the needs of the millennial workforce by responding with intelligent build-
Siemens’ Tobias Huber
ings, according to Tobias Huber, global head energy services and projects at Siemens building technologies division. “For companies that want to attract millennials they expect a different environment in which to work from today and so such companies are looking at it not just for marketing but they take it seriously. It’s not about putting in a colourful sofa, it’s a structural issue,” he said. Tenants are increasingly wanting to interact with buildings and IoT technology is enabling
everything around building efficiency that such tenants desire, he said. “We talk about building efficiency and that starts with energy efficiency and sustainability but goes into areas that are opex-related such as space and management and tracking of assets. For tenants, it will be more the ability to interact with the building in terms of comfort — for example temperature and lighting. But it’s also about getting access to data about how healthy the building is,” he said.
MIPIM News 3 • 47 • 15 March 2018
RETAIL MUST REINVENT TO REINVIGORATE UK RETAIL needs to reclassify schemes more accurately and learn from best-in-class projects in Europe and around the world if the sector wants to remain strong against a backdrop of changing consumer behaviour and online competition, according to Mark Robinson, investment director of community retail developer Ellandi. Robinson, also presidentelect for UK retail industry body Revo, said that the organisation is pushing ahead with plans for a classification scheme that would help define retail centres beyond primary and secondary, which are broad definitions that he feels mean little to prospective overseas investors and retailers. “We are all aware of polarisation and significant changes in the retail market, but with those come a lot of opportunities,” he said. “Sprinkling a bit of retail fairy dust on a project is no longer an answer. We have to stop thinking in the old ways, that’s in the past, and start reimagining places.” Robinson is bullish about the prospects for “right-sized and repurposed retail, meeting the needs for convenience and value” in town centres and emphasised that local retailing “has a vital role to fulfil”.
Ellandi’s Mark Robinson
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Reclaimed Indian Ocean island puts Maldives on investor map
Hulhumale Island in the Maldives
TAKE the open sea and reclaim an island. Then turn it into the biggest tourist resort and population centre in the country. That’s what the Re-
public of Maldives has done. Not only that: “We intend to relocate two-thirds of the entire population of the country there within 10 to 20 years,”
said Nashwa Abdulla, director of business development, sales and marketing at the Maldives’ Housing Development Corporation.
Wakefield’s new ‘theatre of retail’ SITE preparation works will start later this year on a £160m (€180m) retail and leisure destination off the M62 motorway near the UK town of Castleford. Developer Philip Lunn, co-founder of Lateral Property Group, said Marks & Spencer, Next, Primark and Boots have been secured as anchors. The scheme, known before as Five Towns Park, has been given a new name — Axiom — and is scheduled to open in 2021. It will include a covered shopping centre, a country park and a new 10,000-capacity Castleford Tigers rugby stadium on land next to junction 32 of the M62. Lateral Property and fellow developer Highgrove Group plan to create a “theatre of retail —
a new generation of experience centres”, Lunn said, noting that the project is also adjacent to the
indoor snow centre Xscape. The 110-acre site will host 75 retail, restaurant and leisure units,
Department for International Trade’s Naisha Polaine (left); Lateral Property’s Philip Lunn; and Wakefield Council’s Merran McRae
MIPIM News 3 • 49 • 15 March 2018
Abdulla is at MIPIM to talk to investors about one of the largest and most exciting resort projects on the entire Indian Ocean littoral. The Hulhumale reclaimed island has an average height of two metres above sea level. “This is higher than anywhere else on any of the 1,192 islands that make up the country,” Abdulla said. The highest point in capital town Male is 1.8 metres above sea level. Hence the plan to relocate much of the population to the new island. Some 15,000 houses will be built in the next phase of development. “It is also intended that all foreign embassies will be relocated to Hulhumale,” Abdulla said. In addition to new homes for much of the population, Hulhumale will be the home of a tourist zone containing luxury villas, hotels and a marina, a commercial spine across the island, a financial district, a knowledge park and an IT sector. Meanwhile, a number of incentives are in place to attract foreign owners and investors in a special economic zone (SEZ) on the new island.
plus 3,000 car-parking spaces. The scheme, which Lunn said officially launched three weeks ago to a “fantastic retail response”, received planning permission from Wakefield Council in February 2015, as well as loan funding from Leeds City Region’s Revolving Investment Fund. Wakefield Council chief executive Merran McRae said the development was an “endorsement of Wakefield’s ability to attract investment on this scale” and would add to the “liveability of settling in the area”. Naisha Polaine, deputy director of projects at the UK Department for International Trade, added: “The project is a great example of private and public money working together and a very strong example of the Northern Powerhouse in action.”
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Elizabeth Line will drive new business to West London LOCAL authorities from West London have teamed up at MIPIM to promote a swathe of developments and mutual-interest projects to the international markets. The Capital West London alliance held a special event yesterday to help stimulate interest from developers, investors and potential occupiers across a range of sites in the capital. Capital West London is made up of a number of London boroughs, including Hammersmith & Fulham, Hounslow, Brent and Ealing. The region of the capital is set to benefit from the introduction of a new cross-city transport link, which will be known as the Elizabeth Line when it is fully up-and-running next year. Speaking to MIPIM News at the event, Councillor Steve Curran, Leader of the Council and Cabinet Member for Corporate Strategy, Planning and Regeneration at the London Borough of Hounslow, said: “We have to
create an environment where investors feel confident that we are serious about development. We have a challenge to provide affordable housing, and it’s clear that people want to see more infrastructure development to make that happen.” Also speaking at the event, Lucy Taylor, director of regeneration and planning at Ealing Council, said that West London was well positioned
to benefit from future infrastructure developments. She said: “When the Elizabeth Line comes Ealing will be 15 minutes from Heathrow and 15 minutes from central London. London has a powerful presence but then we have to make sure it cascades down to the right sites. Each part of London is very different; we are promoting each area’s uniqueness as well as speaking with a coherent voice.”
The West London Alliance, in Cannes promoting boroughs in the west of the UK capital
Call for leadership on London housing LONDON authorities need to take robust steps and consider a comprehensive review of planning policy if the city’s housing needs are going to be met, a member of the board of an organisation that lobbies on behalf the UK capital has said. Citing a review launched this week in Cannes, Stephen Warrington, non-executive director of London First, said that a joined-up approach between councils and the office of the Mayor was needed to deliver a proper housing strategy. Speaking to MIPIM News, Warrington said that local authorities should be granted more powers to build social housing in their boroughs, that more tax revenue control should be devolved to councils, and that a city-wide body chaired
by the Mayor of London should be created to help “galvanise leadership” of the wider strategy. “We are recommending the creation of an Opportunity Area Delivery Board bringing together non-execs from both the private and public sectors, and the formation of an urban transformation team within the GLA (Greater London Authority). “The private sector is being left to deliver residential but that will never deliver the volume of affordable housing London needs,” he added. Warrington will discuss some of the findings of the latest report by the London Urban Transformation Commission, and its recommendations, at a special session at MIPIM today.
London First’s Stephen Warrington
MIPIM News 3 • 51 • 15 March 2018
HYBRID MODEL REVIVES CENTRE THE NEW designer outlet level at Hull’s hybrid Princes Quay scheme, a 300,000 sq ft retail and leisure destination, is around 90% let and footfall has risen sharply at the reimagined centre, said Mickola Wilson, director of Princes Quay owner Seven Dials. The centre, which opened in 1990, comprises 80 retail and leisure units across four levels, including a 31,000 sq ft Vue cinema on the top floor. Refurbishment has seen two levels of retail consolidated into one, in order to create a floor dedicated to the new outlet scheme. A basement F&B level includes Nando’s and Pizza Express; and a leisure offer with bowling and more casual dining will follow. Hull has also benefited from being last year’s UK City of Culture and adjacent to the shopping scheme is Hull Venue, a 5,000-capacity arena and conference facility which, when opened later this year, will include Waterfront Bridge, linking the city centre, Princes Quay and the waterfront and Queen Victoria Square. “It’s a new reinterpretation of the space but what I would advise is that if you are going to take a similar approach, you have to fully commit to it,” Wilson said.
Seven Dials’ Mickola Wilson
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Hellinikon Park project will position Athens as a ‘world-class’ destination THE DEVELOPMENT of the former Athens Hellinikon airport constitutes the largest urban regeneration project in Europe, its developer Lamda Developments claimed yesterday. A Lamda spokesperson told MIPIM News that the €8bn Hellinikon Park project is designed to boost investment in Athens in the areas of tourism, culture, entrepreneurship, innovation and the environment. “It is expected to have a positive
effect not only on the region of Attica but on the entire country as well. The significance of such an investment and its benefits for the Greek economy, the environment, the local communities as well as the overall growth prospects of the country are huge,” the spokesperson said. Hellinikon Park consists of an integrated urban development model that will combine the area’s natural coastal assets and characteristics with landmark
buildings and state-of-the-art infrastructure. “The green and smart design approach of Hellinikon will offer world-class services and amenities while improving the standard of living of the entire Attica area’s inhabitants,” the spokesperson said. The project will include residential communities, hotels, shopping centres, family entertainment, museums and cultural venues, health and wellness centres, space for sports and recrea-
tion, a business park with an educational and R&D hub as well as the regeneration of the existing marina and the entire coastline. “The investment amounts to €8bn and is expected to create 10,000 permanent jobs during the construction period and 75,000 jobs after completion. “The Park is expected to contribute substantially to the repositioning of Athens as one of
the major world-class tourist destinations as it will provide a significant number of new units as well as thematic tourism venues, expected to attract at least one million new tourists while significantly reducing seasonality,” Lamda said.
Artist’s impressions of Hellinikon Park
Greece ready to welcome investors “I’M OPTIMISTIC,” said George Frangou, deputy general manager, head of group real estate at the National Bank of Greece. “As the world knows we went through a major economic crisis nine years ago. But we’re coming out of it. We’re ready for investors to look again at Greece.”
Frangou said that in cold economic terms there were some underlying advantages to the crisis Greece has passed through. “When there’s a drop in real estate prices of between 50% and 70% it means there are some serious bargains to be had. It means investors have substantial land. And it means
we can now get under way with much more modern developments than was possible before. We can take advantage of today’s greater awareness of sustainability and environmental considerations. In fact it would be true to say we’re bouncing back.” Frangou said that investors and
MIPIM News 3 • 53 • 15 March 2018
banks hold about one million potential land assets in Greece now, ready to be developed. Over the next 18 months the National Bank of Greece is set to divest itself of all its land assets, Frangou said. “We’re looking to invest in the hospitality sector, offices and mixeduse developments. Our job as bankers is to stabilise, and ensure the diversification of, the investment environment.”
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Ontario city leaders on mission to attract inward investment
Michael Thompson of Toronto (left) and Frank Campion of Welland
“GREAT things are happening in Toronto now,” Toronto city councillor and chair of the council’s economic development and culture committee, Michael Thompson, said. Thompson and Frank Campion, mayor of fellow Ontario city Welland, were talking to MIPIM News on the Toronto-Ontario Investment Alliance stand. Thompson said that Toronto — Canada’s largest city at 2.8 million — is growing at around 100,000 a year, and a lot of infrastructure projects are currently under way that will transform the city. “We’re improving the transit systems with new and improved lines. And we’re tackling the waste water and problem and regenerating the older sewerage systems,” he said.
Toronto is aiming to spend around C$15bn (€94bn) on “creating infrastructure the city can be proud of.” Mayor Campion spoke of the Northern Reach Land Development Opportunity in Welland. “This is a 52-ha stretch of land on the Welland Recreational Waterway, and I’m at MIPIM to talk to potential investors on the exciting prospects for this city patch.” Campion also announced that General Electric is set to build a new factory in Welland. The engine plant will be designed with room for expansion and will employ over 200 people. “It will build reciprocating gas engines used in power generation, as well as components that can be used in diesel engines for locomotives,” he said.
GREEN DESIGN FOR TOKYU PLAZA GINZA A GREEN approach, including a new urban park and vertical planting to attract butterflies, was key to the development of an environmental strategy for the Tokyu Plaza Ginza shopping centre in Tokyo. “Our project is between the bay area park and the greenery of the Imperial Palace,” said Koki Sekiguchi, manager, commercial facilities management, Tokyu Land Corp. “We wanted our building to make a green link between these places and also contribute to the neighbourhood.” The facade of the building takes inspiration from traditional Japanese crystal glass craftsmanship and this design aesthetic is also mirrored in the design of the park.
Investor interest in Japan is growing Tokyu Land Corp’s Koki Sekiguchi
TRIDENT MAKES PROPTECH STUDY
Moderator Makiko Noda (left), Diamond Realty Management; Eric Cheah, Union Investment Real Estate; Laurent Jacquemin, AXA REIM Japan; Katsuji Okamoto, Mitsubishi Corporation International; Masanobu Fujita, Diamond Realty Management
FOREIGN investor interest in Japan is stronger than ever, with the majority of mega-deals being driven by global funds, Makiko Noda, deputy general manager of Diamond Realty Management, said at this year’s MIPIM Japan Breakfast. Focusing on the theme Impact Of Capital Flow Trends, the breakfast panel, which included Eric Cheah of Union Investment Real Estate and Katsuji
Okamoto of Mitsubishi Corporation International, found that significant deal flows demonstrated the health of the market. 2017 saw around 4.2tr yen (€32bn) of property deals transacted in Japan, on a par with 2016, and illustrating an ever-broader appetite for asset types. Moderator Noda said that while in 2011 over 60% of deals covered the office and residential sector, recent years have seen
“the rise and rise of industrial, hotel, senior housing, and even healthcare investments”. “Although accessing Japan hasn’t traditionally been easy, there are signs that this is changing, with an active secondary market proving that the tide has turned,” Noda said. “Investors today are focusing on value-add opportunities and there’s a sense that there are still plenty of appetising deals to be done.”
MIPIM News 3 • 55 • 15 March 2018
TRIDENT Building Consultancy has launched a survey to investigate surveyors’ attitudes to proptech. The survey is available at https:// www.smartsurvey.co.uk/s/ PropTech. Delegates who complete the survey will be among the first to receive a copy of the report. They will also be entered into a prize draw to win an iPad and tickets for the RICS Building Surveying and Digital Built Environment Conferences. “Given the recent pace of change in the proptech world, it is unsurprising that much of the talk at MIPIM has been on the subject of the ‘fourth industrial revolution’,” said Anthony Walker, director of Trident Building Consultancy.
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Berlin is still an investment hotspot
Looking lively With the economic uptrend showing no sign of slowing, Germany’s real estate markets are on a roll. The consensus is that there has never been a better time to invest in Germany, writes David Sands
ERMANY’s real estate market is attracting investors from around the world, according to Fabian Klein, CBRE’s Frankfurt-based managing director and head of investment. “We have interest from within Europe and globally, with the market being driven by a lack of product over the last four or five years,” he says. “Yield compression is still driving some of the deals, especially in prime pitches, and there is still room for more compression in top lo-
cations and buildings, because we have rising rents.” Last year, the transaction volume in the country reached €57bn, according to JLL’s head of research for Germany, Helge Scheunemann. “It’s the highest since 2006/2007 and a remarkable result. There has been a lively start to this year, with a lot of product coming to market. There has been so much activity by domestic and foreign investors so far this year that we therefore expect to see a similar total volume of €50-€55bn.”
“There has been a lively start to this year, with a lot of product coming to market” Scheunemann thinks interest rates will remain low and that this will support a market into which owners are selling as they see prices rise. “There is still a lot of capital in the market, while comparable assets are still quite low-yielding,” he adds. JLL CEO Germany, Timo Tschlammer, says the firm may even boost its volume forecasts for this year if January and February trends prevail. Investors remain focused on Germany’s big seven markets: Berlin, Frankfurt, Munich, Hamburg,
MIPIM News 3 • 57 • 15 March 2018
Stuttgart, Cologne and Dusseldorf. While offices accounted for more than 75% of the total deal volume in these seven, retail and logistics transactions are scattered across smaller German cities as well as the main centres. For the last two decades, the Munich office sector has been stable, targeted mainly by German buyers. Offices in Dusseldorf, Hamburg and Cologne are performing strongly, while both German and international investors are broadening their interest to secondary and provincial markets, such as Hesse state capital Wiesbaden. Demand for Berlin offices remains very high, especially for investment purchases, while Frankfurt offices are also on the radar screen once again, due to actual and predicted rental growth in the city for the next two or three years. Meanwhile, Klein says that,
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FEATURE: GERMANY although Brexit is “definitely a driver for Frankfurt, it is not so much as some are claiming”. Occupier growth and strong economic fundamentals underpin the investment markets as companies hire new staff and boost net absorption by taking new space and undertaking relocations. Last year, JLL sold Tower 185, Frankfurt’s largest office building, on behalf of owner CA Immo for €775m. Germany’s Deka Immobilien bought the asset in a hotly contested auction. In another major transaction, Oxford Properties, the real estate arm of the Ontario Municipal Employees Retirement System, and New York-based Madison International Realty, bought the Sony Center in Berlin for €1.1bn from Korea’s National Pension Service (NPS). The deal typifies how some early Far Eastern investors into Germany, such as NPS, are now moving into the selling field. Yields fell further in the last quarter of 2017, according to JLL. The average prime yield for office properties across all seven strongholds stood at 3.27%, which is 12 basis points lower on a quarterly basis and 29 points below the value at end-2016.
Berlin broke through the 3% barrier and ended 2017 with a 2.90% yield. Retail assets in top locations in the big cities remain a popular, although rare, commodity and yields across the seven cities fell to an average of 2.96%. The net initial yield for individual specialist stores and shopping centres has fallen slightly to 5.30% and 3.90% respectively. Well-positioned retail centres with a significant proportion of food-retail tenants were again at the top of investor shopping lists. As a result, the prime yield in this segment also fell by a further 10 basis points to 4.60%. Logistics property showed the sharpest change, with the prime yield falling by 60 basis points to 4.50%. In combination with rental growth, peak capital value growth in the double-digit percentage range was again achieved in 2017 for the third year in succession: around 14% for office properties, 12% for logistic properties and 20% for central commercial buildings. Falling yields are stimulating development activity. Christoph Reschke, senior managing director and co-head at Hines Germany, which is building three office
projects in Dusseldorf, an office/ retail scheme in Berlin, a built-torent complex and a condominium tower plus hotel, also in the German capital, says: “We would like to start logistics development, which would be our first in Germany. We already hold €600m of logistics and our goal is to build more ourselves.” Hines plans to acquire additional assets in the country. “We are looking for more development opportunities, including speculative projects that entail some tenant and planning risk. That’s the strongest commitment you can hear from a developer,” says Reschke. Munich-based GLL Real Estate Partners forecasts rental and capital growth for offices in the top cities, although Florian Geistmann, investment officer leading GLL’s Germany transactions, says there is pressure on retail rents as a result of shoppers switching to online. Geistmann highlights strong competition for investments: “Tremendous rental growth in offices, especially in the major cities over the last two years, is driving a strong market in Germany. I see yield compression and
investors moving to the fringe of A and even B cities. I find record yields in B cities, but I’m not sure if this is sustainable, as I don’t see as much rental growth going forward as in the major cities.” Geistmann adds: “There is a lack of available space and companies are finding it difficult to expand. The startup and co-working space in Berlin in particular has been absorbing space, driving vacancy to an all-time low.” Germany has sealed its position as a safe haven, and continues to attract increased investor interest from domestic, European, Asia-Pacific and North American investors. According to professor Felix Schindler, head of research at Warburg-HIH Invest Real Estate: “The strong economy, a stable government, low unemployment, rising levels of office employment, a shortage of offices in the main cities and high rates of pre-letting lead us to expect rising rents in almost every one of the top seven markets. Yields may go a little lower — to slightly below 3% in Berlin and Munich, for example. Last year, around 50% of investment in the German market was done by international investors and we expect this to continue this year.”
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“Last year, around 50% of investment in the German market was done by international investors and we expect this to continue this year”
Munich is one of the big seven cities in Germany where oﬃces accounted for more than 75% of total deal volume
MIPIM News 3 • 59 • 15 March 2018
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FEATURE: THE RANDSTAD, THE NETHERLANDS
Right place, right time
The Netherlands in Cannes: building on a solid reputation
Holland’s four major cities — Amsterdam, The Hague, Rotterdam and Utrecht — are stable, secure and well connected. No wonder the world’s investors are increasingly going Dutch, writes Ben Cooper
HE NETHERLANDS is an intriguing place in that its apparent drawbacks are also its best assets. A small country, it is less enticing for investors looking for the type of risk and high reward that you find in the bigger European countries. It is even considered too flat by some investors. But where some see a flat market, others see stability. Supported by a government that has invested heavily in its own future infrastructure, the Dutch real estate market has a lot going for it. The country is showing strong GDP growth — far more so, and more stably, than elsewhere in Europe. It offers the rich and diverse gateway city of Amsterdam as a starting point. In 2017, Amsterdam proved to have a magnetic effect on global capital, attracting
investment from the US, the Middle East and South Korea. This is a relatively new phenomenon and an encouraging sign of the times. Investors will also be heartened to know that, elsewhere in the Netherlands, new opportunities are opening up. The city of Utrecht has always been behind the capital in every sector of real estate. With yields in Amsterdam under pressure and demand spreading further afield in the country, the historical underdevelopment of the Utrecht office market in particular is both a problem and an opportunity. The city has already succeeded in
attracting Vodafone and Accenture. At the moment, most of the deals are happening in the Kanaleneiland, Rijnsweerd and Papendorp areas but, with more development and investment set to improve the quality of buildings on offer, there are bound to be more new businesses setting up in town. This is not least because the Netherlands as a whole is proving to be in the right place at the right time. Its own domestic political situation may have stabilised following the threat of the far right making gains in 2017 but, elsewhere, the tumult of Brexit is creating potential opportunities for the cities of Utrecht, Rotterdam and The Hague. This is where the Netherlands’ size becomes an asset: it is compact, its cities are very well connected, to each other and to a superb airport, and it is right in the heart of the European Un-
The Netherlands is compact, its cities are very well connected — to each other and to a superb airport — and it is right in the heart of the European Union MIPIM News 3 • 61 • 15 March 2018
ion. Amsterdam has already won back the European Medicines Agency, which will leave the UK when the UK leaves the EU. Rotterdam and The Hague might well benefit from Brexit, not just in the political fallout, but also if international businesses based in the UK start looking elsewhere for a base. Well-funded, efficient public services are one of the country’s many pros — and, longer term, it is an opportunity for real estate. Populations are ageing everywhere, not least in the Netherlands, which is why investors are already talking about the major opportunities in healthcare and elderly residential housing. As a whole, rental growth has slowed and there is slightly more vacancy than a year ago, but this is not worrying investors in the Netherlands. It has never been a market for the high-risk, high-return hunters — arguably to its benefit. Amsterdam has a solid reputation and is more popular than ever with investors from neighbouring Germany and as far away as South Korea. This may well extend to the cities around it as we move further into 2018.
Games on Japan is in Cannes to showcase Olympic beneﬁts
It’s no secret that hosting the Olympics comes with a very big price tag — as Tokyo, host of the 2020 Games, is discovering. But there’s no doubt that the Japanese capital’s infrastructure will be one of the event’s big winners. Graham Parker reports
EING chosen as a host city for the Olympic Games can be an ambiguous privilege. On the one hand, it is an immense honour — a sign of a healthy, solid economy with an infrastructure that can cope with a short-lived but powerful surge in people, attention and pressure. But it also brings risks and challenges, as Tokyo has already learned. Whether it is anything to do with the Olympics effect or not, Japan has been through, and is still experiencing, something of a boom. This time last year, the market was going through one of the hottest periods in recent history: CBRE reported Q2 transaction volumes were up 51% on the previous quarter, at 1.3 trillion yen
(€9.89bn) — one of the strongest ﬁrst quarters since the downturn. A crucial factor in all this is what has become known as ‘Abenomics’, a number of economic stimuli introduced by prime minister Shinzo Abe. For foreign investors, this holds plenty of keys, not least because central to the reforms has been the introduction of quantitative easing and the marking down of the yen, with the express purpose of wooing inward investment. If only for its attractive prices and high yields, Tokyo is as attractive as ever. But Abenomics has brought more to tempt real estate capital from around the world, deregulation and reduced property taxes being two, arguably overdue reforms. In the housing market, rental yields have been stable. Prices
are rising year-on-year, especially in Tokyo, where city apartments have been growing at over 10% year-on-year. Unsurprisingly, then, investment volumes are headed in the right direction. Total real estate transaction for the ﬁrst half of 2017 was up by 10% on the same period the year before — all the signs are that 2018 is showing the same growth. Much of this was becoming evident before the news that the Olympic Games were headed to Japan. Since the decision, this has accelerated, as a major pipeline of development has suddenly become top of the agenda. In a report by IP Global, the sheer potential of this was laid out in black and white. “The Games themselves are forecast to directly inject some 3 trillion yen into the economy,” the report stated. “But the associated regeneration and infrastructure investment will
be even more beneﬁcial, contributing up to 23 trillion yen to the metropolitan economy.” Other than the Olympic facilities themselves, residential developments in the surrounding area, the enormous athletes’ village and a string of transport projects, there is the little matter of the Tokyo World Gate, set for completion by the time the Games get under way. The 38-storey building will bring with it new ofﬁce, retail and residential space, as well as a 200-bed hotel close to the Kamiyacho station. As is often the case with Olympics projects, there may well be a race to the ﬁnish. There is also speculation about long-term legacy issues, and whether the whole project has unnaturally inﬂated prices. But the Tokyo World Gate project is well named. This is the city’s chance to open itself up to the world.
“The Games are forecast to directly inject some 3 trillion yen into the economy. But the associated regeneration and infrastructure investment will be even more beneﬁcial”
MIPIM News 3 • 62 • 15 March 2018
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