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South America ripe for growth after long periods of stability PROPERTY leaders from Argentina and Paraguay yesterday revealed exciting prospects in the region as South American economies gain rapid take-off from extended periods of stability. At the conference session South America’s Cities: Success Stories To Share, moderator Aida Turbow from Brazil’s COFECI regulatory organisation said that one of the assets of the region is the high percentage of youth in the age profiles of the countries. One of the characteristics and outcomes of this was the emergence of new ways of doing business. Argentina has become stable with a prosperous and stable middle class “after many economic and political incarnations” and its future now looks assured, she said. Turbow described Paraguay as the “great secret market of South America that is now emerging as an increasingly attractive investment target”. Ezequiel Rebruj, general direc-
tor of Buenos Aires City Government, described his city as the “culture and trend-setting capital of South America, and the most cosmopolitan — a city always open to new ideas”. He described real estate development as a vital ingredient in the growth of the city. Of particular interest was a 12-ha development in the north of Buenos Aires — the site of a former militia training ground — which will be redeveloped into a hightech hub, taking advantage of its
proximity to universities and existing tech startups. Oscar Stark Robledo, vice-minister of commerce and industry in Paraguay, pointed to the new rapid economic growth of his country, and the strength of the Paraguayan currency, the Guarani. “At 70 years old, this is the oldest and most stable currency in South America,” he said. Stark Robledo added that Paraguay’s economy is growing at 4.5% a year. “It’s time to have a look. We’re no longer dormant.”
IN 2017, the take-up of office space exceeded 4.3 million sq m in the eight main German locations of Berlin, Dusseldorf, Essen, Frankfurt, Hamburg, Cologne, Leipzig and Munich, according to BNP Paribas RE. The result not only beat the previous year’s take-up by 16 %, but is also the best result ever recorded. The result was also a record individually for Munich, Berlin, Hamburg and Leipzig. Vacancy rates also fell by 13% on average, while rents increased by 5%. In addition, BNP Paribas predicted that 2018 will see above average take up and that rents will go up once again.
DEMAND HOLDS AS VALUES FALL
Buenos Aires City Government’s Ezequiel Rebruj (left); COFECI’s Aida Turbow; and Oscar Stark Robledo, vice-minister of commerce and industry in Paraguay
Twelve Architects wins airport redesign AIRPORTS of the Regions, part of Russia’s Renova business conglomerate, has won a concession from the Yamelo-Nenets Regional Government to
GERMAN CITIES SEE RECORD OFFICE TAKE-UP
redevelop and operate Novy Urengoy Airport. London’s Twelve Architects has led the design of the new airport which is due for completion in 2022.
Twelve Architects’ design for the new Novy Urengoy Airport
The project is an integral part of the regeneration of Russia’s airport infrastructure. Novy Urengoy is situated next to one of the world’s largest gas fields and the airport will serve the city and the regional oil and gas industry. It is the third airport that Twelve Architects is currently working on; the practice also designed Platov Airport in Rostov On Don, one of the host cities for the 2018 FIFA World Cup. Platov Airport was completed and opened in late 2017. Twelve Architects founding director Matt Cartwright said: “The investment agreement has been signed during MIPIM and we are excited to now be able to realise this special project.”
MIPIM News 4 • 33 • 16 March 2018
THE LONDON market will continue to polarise over the next 12 to 24 months according to Nick Montgomery, head of UK real estate investment for Schroders and fund manager for specialist real estate fund WELPUT. “We will see average values fall but will see continued strong demand in areas such as King’s Cross,” he said. He said a number of life science companies were particularly being drawn to the area after Google confirmed its presence there, since they were all competing for similar talent. With regards to WELPUT he said the key message was about increased exposure to different submarkets. “We have got best-in-class buildings in all the different submarkets so if you want exposure to central London and an actively managed value-add strategy then there really isn’t anything like WELPUT,” he said.
Schroders’ Nick Montgomery