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NEWS 4 Friday 15 March 2019

NOUVEL’S GREEN TOWER

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ACCOR TAKES ON DISRUPTORS

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DIAGANA BACKS SPORTS RESORT

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CONTENTS

Yesterday at MIPIM Secretary of state Julien Denormandie signed a new compact on tax and business administration with senior representatives of France’s real estate sector. The signatories were: FSIF, Covivio, Allianz Real Estate, Altarea-Cogedim, Galimmo, Gecina, Icade, Paref, SFL and Unibail-Rodamco-Westfield

4 NEWS

Nouvel’s green tower; Accor takes on disruptors; Diagana back sports resort; and more...

STAT OF THE

DAY

IN 2019 MIPIM WELCOMED

26800 PARTICIPANTS *

MIPIM’s Japan conference session heard how the 2020 Tokyo Olympics will give a new impetus to development activity. Panelists were Janne Kobayashi (left) of Montanen Capital; Keiji Kamiyama from the Ministry of Land, Infrastructure and Technology; Sadao Muraoka of Mori Building Real Estate Advisory and Sam Ohta of Ohta Publications

DIRECTOR OF PUBLICATIONS Paul Zilk MARKETING DIRECTOR Mathieu Regnault

NEWS 4 Friday 15 March 2019 www.mipim.com

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THE MIPIM NEWSROOM IS LOCATED IN THE MEDIA HUB, PALAIS –1

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, Patrick Frega, Olivier Houeix, Michel Johner Editorial Management Boutique Editions PRODUCTION DEPARTMENT Publishing Director Martin Screpel Printed Communication Manager Emilie Lambert ADVERTISING CONTACT IN CANNES Mylene Billon mylene.billon@reedmidem.com Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2019, Reed MIDEM Market Publications. Publication registered 1st quarter 2019. Printed on PEFC Certified Paper.

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AWARDS

Party

Development teams celebrated their victories in the annual MIPIM Awards, which recognised the brightest and the best in global real estate development MIPIM News 4 •

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AWARDS

time

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AWARDS

Best Healthcare Development Sponsored by

POLYCLINIQUE REIMS-BEZANNES Bezannes, France Developer: Icade Architect: Jean-Michel Jacquet Other: Courlancy Santé, Artelia, Eiffage Construction, Cari

Best Hotel & Tourism Resort

CLUB MED CEFALÙ Cefalù, Italy Developer: Club Med SAS Architect: King Roselli Other: Sophie Jacqmin

Best Industrial & Logistics Development GREENWICH PENINSULA LOW CARBON ENERGY CENTRE London, United Kingdom Developer: Pinnacle Power and Knight Dragon Developments Architect: C.F. Møller Architects Other: Artist Conrad Shawcross, Futurecity and Structure Workshop

Best Mixed-use Development

THE STUDENT HOTEL FLORENCE LAVAGNINI Florence, Italy Developer: Inso S.P.A Architect: Archea Associati Other: Arcadis, Habitech, Rizoma Archi, Modus

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3 LONDON OFFICES | BIRMINGHAM NEW YORK | WASHINGTON DC JAMESANDREW.CO.UK

^ WOOLWORTH HOUSE 242 MARYLEBONE ROAD LONDON NW1

^ 1 ROYAL STANDARD PLACE NOTTINGHAM

125,000 sq ft multi let landmark office building acquired on behalf of Henderson Park Capital Partner

30,000 sq ft self contained office building acquired on behalf of The University of Law for their own occupation

^ KINGS CROSS QUARTER PENTONVILLE ROAD LONDON N1

^ BUBENSKĂ 1477/1 PRAGUE

Acquisition of a recently completed freehold block on behalf of Consensus Group from Regal Homes comprising 119 luxury residential units

Acquisition of an iconic 175,000 sq ft office building on behalf of WPP for their new Group HQ

^ GENTING RESORT WORLD BIRMINGHAM

^ KERB FOOD MARKET COVENT GARDEN LONDON WC2

Ongoing leasing advice on behalf of Genting Group for their 540,000 sq ft hotel, leisure and retail complex

Acquisition and real estate advice on behalf of KERB for their flagship site in Covent Garden and their UK wide expansion

^ FT BUILDING 1 SOUTHWARK BRIDGE ROAD LONDON SE1

^ EASTGATE HOUSE 40 DUKES PLACE LONDON EC3

Former Financial Times HQ comprising 200,000 sq ft jointly acquired on behalf of WPP for their own occupation

40,000 sq ft self contained office building acquired on behalf of UKCBC for their own use as a business college

^ 21 SOHO SQUARE LONDON W1

^ 10 PHILPOT LANE LONDON EC2

28,000 sq ft self contained office building acquired for WeWork

Sale of 14,000 sq ft freehold office building on behalf of private clients

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AWARDS

Best Office & Business Development LABORDE Paris, France Developer: ACM Architect: PCA-STREAM | Philippe Chiambaretta Architecte Other: ARC, Artelia, Khephren, VS-A, Green Affair, Barbanel, A&C, Qualiconsult, Delporte, LM3C, CSD Faces, Topager, La Superstructure, LUMIERE STUDIO, ARCHIMAGE, Eiffage, GOYER, AGM, LEFORT, FIBOR

Best Refurbished Building

KOSMO Neuilly-sur-Seine, France Developer: Altarea Cogedim Architect: Ateliers 2/3/4

Best Residential Development WOODIE HAMBURG Hamburg, Germany Developer: Dritte PRIMUS Projekt UDQ GmbH, PRIMUS developments GmbH, Senectus GmbH Architect: Sauerbruch Hutton Architects Other: Kaufmann Bausysteme

Best Shopping Centre

HIRAKATA T-SITE Hirakata, Japan Developer: So-Two. Inc Architect: Takenaka Corporation

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AWARDS

Best Urban Regeneration Project REBUILDING FRANKFURT’S OLD CENTRE Frankfurt am Main, Germany Developer: DomRömer GmbH Architect: Bernd Albers, Dreibund Architekten, Jourdan, Müller und Steinhauser, Denkmalkonzept, dreysse architekten, Landes & Partner, Jordi & Keller Architekten, Morger Partner Architekten AG, Knerer und Lang, Eingartner Khorrami Architekten, Francesco Collotti, Hans Kollhoff, Schneider und Schumacher, von Ey Architekten, Johannes Götz, Riemann Architekten, Claus Giel, Meurer Architekten, Macholz Kummer Architekten, ENS Architekten

Best Futura Project

MILLE ARBRES Paris, France Developer: Compagnie de Phalsbourg and OGIC Architect: Sou Fujimoto, Oxo Architects, Paul Arene Other: Cushman & Wakefield

Best Futura Mega Project FUTURE PARK Yorkshire, United Kingdom Developer: Fallons Architect: Bond Bryan Other: Adept Consulting, Andrew Moseley Associates, Colliers, Counter Context, Fera, ID Planning, WSP

Special Jury Award “ZARYADYE” PARK WITH A MULTIFUNCTIONAL CONCERT COMPLEX Moscow, Russia Developer: Moscow Government Architect: S.Kuznetsov, Diller Scofidio + Renfro, Hargreaves Associates, Citymakers, CPU Reserve, MAHPI, Architectural Bureau by T. Bashkaev Other: Mosinzhproekt MIPIM News 4 •

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Hospitality faces competition from new wave of disruptors ACCOR has never been as strong as it is today, according to chairman and CEO Sebastien Bazin in a keynote speech at MIPIM yesterday on the future of hospitality. However, he said there was much more to be done. “It’s good to be strong but it’s not good enough,” he said. Instead Accor has to have continual focus on its direct competitors as well as digital disruptors, he said. Bazin said the market was split

into three ‘buckets’ of players. The first, digital disruptors such as Kayak and Airbnb, are growing at an average of 50% a year. The second contained eight ‘gorillas’ that include Accor and are growing at around 8%-15% a year. The third was everyone else, he said, around 5%-10% of whom die each year because they can’t cope with bucket one. “They don’t have the tech, data and brand awareness and so don’t have time.”

Accor chairman and CEO Sebastien Bazin

Bazin said he and his closest competitors could grow share from absorbing bucket three players but that Accor also had to better understand the “unstoppable” players in bucket one. “They are so powerful because they have something that is unique. They have a frequency of interaction with their guests which is astronomical. We see our clients at best around 10 but on average two or three times a year,” he said. The trick is to work on increasing the data points and interaction with guests, which has led to Accor buying, investing in and creating businesses that could help achieve this, he said. However, Bazin warned that one of his biggest potential threats comes from Amazon. “Amazon is the only sizeable company totally independent of Google Search. Amazon has still not interfered with the tourism and travel space but it will,” he said.

Proptech and the issue of privacy THE EFFICIENCY afforded by proptech innovations in the finance and investment world must be weighed against the security risk they present, delegates have heard at MIPIM. “The main feedback from clients we are getting are questions around security risk,” said Guillaume Fiastre, managing director of the software and data solutions division at Altus Group. “There is all this data now in the cloud, there are privacy issues and GDPR issues; pipeline acquisitions are very sensitive. We are starting to see a ramp up of the cloudification of data, but there are still many institutions for whom the cloud is scary, so new tech is being adopted slowly. We’re talking to them about risk management,” he said.

Steve Sillam, CEO & co-founder Leaseum Partners, added: “There’s an impression that blockchain brings more transparency, to the extent of bypassing privacy. It’s actually more about efficiency than transparency – owners in the chain can remain anonymous.” Iri Amirav, co-founder of Skyline AI, said: “We are fans of

transparency as it makes investors more enthusiastic to close deals. It’s about providing better tools to make decisions.” Anthony Gahan, founder and chairman of IPSX, agreed: “True market prices can only be established when a sufficient number of bidders have access to deals. Data flows can facilitate that.”

Experts debate security risks: Skyline AI’s Iri Amirav (left); Altus Group’s Guilliaume Fiastre; IPSX’s Anthony Gahan; and Leaseum Partners Steve Sillam

MIPIM News 4 • 11 • 15 March 2019

INNOVATE PUTS LUXURY LIVING IN THE SPOTLIGHT DUBAI-based developer Innovate Living chose MIPIM to showcase its Palme Couture Residences development, and other projects, to the global real estate industry. Located on the Palm Jumeirah in Dubai, United Arab Emirates (UAE), the development comprises a collection of 14 luxury units. Kareem Fahmy, founder and CEO of Innovate Living, said: “Palm Couture is our signature project. It’s a very private residence. Most of the apartments have their own pool and there are all the 5-star facilities. We didn’t sell any off plan. Our prices are quite expensive, but when people see the quality with their own eyes they are happy to pay.”

Kareem Fahmy, founder and CEO of Innovate Living

YOUNG WORKERS DRIVING OFFICE TRANSFORMATION A NEW wave of redevelopment is being undertaken to attract younger generations into the workplace, according to Pascal Minault, chairman and CEO of Bouygues Immobilier. “Around 10 to 15 years ago we saw a lot of property refurbished for energy and sustainability reasons. Now we see a wave of office transformation because the working environment they provide is no longer attractive to the younger talent they need,” he said. Minault was speaking yesterday as part of a panel discussion called How Is Hospitality Engaging The Future.


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Jean Nouvel’s tower crowns an ‘oasis in an urban jungle’ STAR architect Jean Nouvel’s latest project for the Brazilian city of Sao Paolo encapsulates “the built environment invaded by nature”, the Pritzker Prize winner told delegates in Cannes on Thursday. Designed with floating terraces draped in greenery and clad in wood, the Mata Atlantica Tower represents the pinnacle of the ambitious Cidade Materazzo scheme, conceived by French billionaire Alexandre Allard. Designed as a high-end luxury residence and Rosewood hotel, with mixed-use elements on the ground floor, Nouvel’s creation has an organic aspect from a distance, the architect said. “A key design aspect is allowing the trees to invade the building just as they have invaded the surrounding park.” Cidade Materazzo is a literal oasis in the middle of the urban jungle, according to Nouvel, comprising the sympathetic refurbishment of an abandoned maternity hospital encircled by a heritage habi-

Jean Nouvel describes his vision for Cidade Materazzo

tat. “I wanted to make this building a part of the general history of Materazzo. It is a tower, but it has more in common with the surviving structure of the hospital surrounded by centenary trees, than it does with the brutal towers of the city.”

The €400m Cidade Materazzo occupies 45,000 sq m of space in downtown Sao Paolo, including a retail village with 34 F&B units and 70 fashion brands, plus a biodiversity boulevard, the Millennials hotel and a tech campus.

China’s Goa has international goals

Jian He, president of GOA Architects

GOA ARCHITECTS, one of China’s leading architectural firms, was in Cannes this week to promote its design philosophy to the wider world. “We always look to combine the traditional with the adventurous. It’s necessary and important to respect the past, and at the same time it’s equally important to be creative,” CEO and president Jian He said. “But for us the most important aspect of building design is to always respect nature. We always look to find the natural heart of a project. That’s what drives our designs,” he added. For the Muhshoou Xixi hotel in Hangzhou the design team wanted to present the natural

beauty of the wetland environment of the area. “That means the building had to be integrated into its environment, not thrust upon it,” He said. “We wanted to bring home to hotel residents and visitors the stillness, wildness and seclusion of the location. Yet at the same time provide them with a stateof-the-art modern hotel,” he added. Goa is the third largest architectural practice in China. “We have 800 design professionals, and we’ve designed over 1,500 projects since our foundation 21 years ago,” Goa senior principal Zhou Qing said. “The next stage is to take our designs into the wider world.”

MIPIM News 4 • 13 • 15 March 2019

HEALTH INITIATIVE CONTINUES IN HONOUR OF JOHN O’HALLORAN THE MISSION to promote positive mental health in the property industry was high on the agenda at MIPIM this week. Yesterday saw a presentation from Howard Morgan of the John O’Halloran Mental Health Initiative. The programme is a project of Lionheart — the RICS Benevolent Fund, with partners including the BPF and Changing the Face of Property, and aims to better support those who may be struggling in the industry. The Initiative was co-founded by Morgan after he received a call during MIPIM 2015 to say that John O’Halloran, a former colleague, had taken his own life. “The shock continues to this day and we decided to respect his memory by starting a campaign with the mission to tackle the stigma of mental illness and promote positive mental health in the property industry,” Morgan said. He said the traditional nuances of the property industry meant even more pressures that could lead to mental illness — including its “deal-driven culture, traditional male dominance and eternally optimistic outlook.” The importance of counselling and support to better promote good emotional wellbeing was also evident with the attendance of New Foundation Counselling, an employers assistance provider of counselling services for the property and construction industry at the market.

Howard Morgan


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VIPs at MIPIM France’s Secretary of State Julien Denormandie addressed the MIPIM press corps in the media hub

Mayor Christian Estrosi extolled the virtues of Nice

Italy reconfirmed its strong position in the global real estate market at a MIPIM conference session hosted by ITA, Italian Trade Agency, in collaboration with Assoimmobiliare and ANCE. Architect Carlo Ratti set the scene before moderator Jacopo Dettoni introduced civic representatives from Florence, Genoa, Milan, Rome and Turin who highlighted the regeneration opportunities in their respective cities

The MIPIM Tennis Classic raised well in excess of €60,000 for its four chosen charities — smashing last year’s record fundraising total. The event, sponsored by Towergate Insurance, drew a big crowd to Cannes Tennis Club on Wednesday with tennis legend Tim Henman headlining the tournament for the first time. The doubles competition was won by Andrew Knights of The Lorenz Consultancy and Jason Dunlop of Grant Thornton, who beat Jonathan Hogg and Alex Hunt in a thrilling final. But the real winners of the morning were the four charities — LandAid, Bright Ideas for Tennis, The Tim Henman Foundation and the Cannes Community Fund.

MIPIM News 4 • 15 • 15 March 2019


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YOUNG LEADERS

‘Attract people from different backgrounds’ industry is told THE FIRST MIPIM Young Leaders Summit delivered “very good content, questions and debate”, according to Roman Kulik, real estate developer at Dutch company Zoku. Kulik, who was here for his first-ever MIPIM, said the summit’s focus on the future of the industry and on attracting young people was relevant at a time when the industry needed to work hard to change. “The industry needs to look for ways to attract young talent but should also better promote the industry,” said Kulik. “We should also be looking for people from different sectors and be open to attracting talent from different backgrounds.” Originally from Russia, Kulik trained in hotel management in the Netherlands and had imagined going into the hospitality sector before finding his calling. “My final internship was at Zoku where I realised I had found my passion of combining hospitality and real estate.” He said the hotel sector offered more appeal than more traditional markets such as offices, because hotels offered such a personal experience for visitors. The visitors in turn will be more likely to voice their opinions of buildings on platforms such as Trip Advisor, meaning that those people involved in developing such asZoku’s Roman Kulik: “look for ways to attract young talent” sets had to put more into them.

Industry ‘must be challenged’ on old ideas

THE REAL estate industry needs to do more to challenge its traditional bottom-up approach and instead introduce a more top-down approach to management, according to Jack Sibley, innovation and technology strategist at Nuveen Real Estate. “My role comes from more of a top-down strategic perspective rather than real estate which can be bottom-up. Part of the challenge young people face is that vertical ladder of promotion. That’s fast becoming less relevant and is actually becoming a hinderance to what the industry actually needs,” he said. He also said businesses need to be less focused on recruiting and promoting from within and instead look to other industries for new ideas. “When I think about young leaders, there’s a lot of ways the industry needs to improve. They need to find people from other industries that have a new, more interesting perspective. That goes hand -in-hand with diversity,” he said. Sibley said traditional ideas within the industry need to be challenged. “The marginal value of experience is becoming less and less. Sometimes having a lot of experience about how things have been done can hold you back from thinking about how it could be done,” he said. Nuveen Real Estate’s Jack Sibley: “experience can hold you back” MIPIM News 4 • 17 • 15 March 2019


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Take a local view on risk and return in Africa, panel urges INVESTORS and developers should evaluate the opportunities in African countries on an individual basis, depending on location, asset class and the availability of dollar-denominated rather than local-currency payment, delegates were advised at yesterday’s Africa: Growth And Investments session. Charles Hecker, senior partner of Control Risks, said that comparing risks and returns in Africa with Europe or the US is “an exercise in futility” and said that investors should look at “which markets are attractive and what their future prospects are”. It was a view backed by Greg Pearson, co-founder of Grit Real Estate Europe, who said that his company had received

The Africa: Growth And Investments session

criticism for investing in a range of asset classes and markets, rather than focusing on a specific region or property type. “We don’t feel that’s the right approach,” he said. “Instead, we look at opportunities based on what’s driving a country’s econ-

omy and what will attract international occupiers, so we are not exposed to the local currency.” Samuel Kariuki, managing director of retail development specialist Centrum Real Estate, said that each African country had its own requirements and that East

Africa remained a strong market for shopping centres, provided they have a good tenant mix and the right entertainment and food offer. “Most malls are anchored by a supermarket, in particular South African group Shoprite,” he said. “But to make sure that people visit your mall, the sub-anchors are also very important, as are retailers who appeal to the mass market. If you have the right mix, it will perform strongly.” Looking at Nigeria, Bolaji Edu, CEO of Broll Property Services, said that, despite claims of over-supply of offices and retail in major cities, well located assets in good locations are achieving high occupation rates. “Investment success remains dependent on the fundamentals,” he said. “If grade-A office buildings are in the right place with good amenities, they will be successful. Those that are struggling or remain unoccupied tend to have poor basics.”

Medici Living plans global drive into co-living sector

PlanRadar opens offices in London and Zagreb

MEDICI Living is in “aggressive expansion” mode with the aim to become a global player in the emerging co-living sector, the company’s founder has said. Speaking to MIPIM News, Gunther Schmidt, founder and chief executive of the Berlin-based startup, said that the company was making a “global play” for expansion after securing €1bn of funding in Europe alone. Medici is one of the fast-

VIENNA-based digital documentation and communication specialist PlanRadar has established subsidiaries in London and Zagreb as it looks to accelerate the company’s business in the UK, Ireland and South East Europe. “We see the potential for strong growth in both these regions and although we are an online, appbased tool we have found that expansion is most effective when you have people located in the markets,” said PlanRadar managing director and partner, Ibrahim Imam, of last month’s openings. PlanRadar has built its client base to over 3,500 customers across 41 markets, with a webbased system that supports digital construction documentation, defect management and task management throughout construction and real estate projects and facilities management.

Medici Living’s Gunther Schmidt

est-growing players within the nascent sector of residential property known as co-living. Fully-furnished space is available to tenants, who must sign up as Medici Living members, on a flexible basis on a minimum lease of three months. The concept is aimed at professionals who are relocating or who are based in major cities for a short period on work secondments or one-off projects. The company was founded in 2012 and has amassed 1,850 members in 12 cities across three countries, Germany, the Netherlands and the US. It is now set to embark on an ambitious expansion drive in Europe and the US, which Schmidt said would take the number of beds within the portfolio from its current figure of around 6,000 across 12 sites, to a total of 10,000.

MIPIM News 4 • 18 • 15 March 2019

PlanRadar’s Ibrahim Imam

Smartphone or tablet-based recording and documentation has the advantage of being costand time-efficient, transparent and consistent, Imam added. “Our latest innovation is to integrate our system with the internet of things, so that we can receive information from a sensor on, for example, a broken window,” Imam said. “That can then track the situation, from the defect to completion of the repair.” PlanRadar is suitable for use across asset classes.


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MIPIM delegates are being challenged to reduce their carbon footprint by taking future journeys to Cannes by rail and bicycle rather than flying and driving. Pictured are Tim Stephens, director of Cardiff-based energy supplier Community Utilities (left), with Huw Thomas, leader of Cardiff City Council, and Dan Clegg managing director of Community Utilities, after the cyclists completed a challenge to make the journey from South Wales in the most carbon-friendly way possible. In contrast Nick Proctor, founder and chief executive of Amber Energy, also taking part in the challenge, took the journey by plane and car to highlight the 829kg of extra carbon that means of transport produces.

PRESIDENT of Toulouse Metropole Jean-Luc Moudenc (pictured) addressed a packed audience yesterday evening at the Palais des Festivals as he confirmed the winners of a regeneration competition to revitalise neglected areas of the French city. The call for innovative urban proposals ‘Dessine-moi Toulouse’ [Draw me Toulouse] saw a total of 114 entries shortened to 53 finalists, each proposing creative, original initiatives that address economic, urban, artistic, cultural and social issues. At MIPIM, 15 winning projects were announced.

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MIPIM News 4 • 19 • 15 March 2019

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Yesterday delegates flocked into the Palais to network with colleagues from around the world

In all corners of the Palais ...

... delegates can listen and learn

MIPIM News 4 • 20 • 15 March 2019


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Sun and oxygen to fuel the rest of the day

Imagining the future in 3D

Welcome to the VIP club

Walking the red carpet in Cannes

On track for investment

Thank you for attending ... and see you next year!

MIPIM News 4 • 21 • 15 March 2019


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Investment opportunity

WWW.ECOESTRELA.COM

in the latest destination of award-winning Hotel, Resort & Spa management company Six Senses’ (part of InterContinental Hotels Group).

ença Lic

Gremi International SARL, an international holding company based in Luxembourg (operating in Luxembourg, Netherlands, Brazil, Poland, USA) 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) and Mayakoba (Mexico). The “Eco Estrela” project will encompass several hotels, resort facilities and luxury residential units. The extraordinary site features 6.5 kilometers (4.1 miles) of Atlantic beachfront and covers an area of 2571 hectares (6,353 acres). The nearest international airport to Eco Estrela Baia Formosa is Natal (99 km by highway). Its proximity to Europe and Africa make it the shortest and most fuel-efficient destination for aeroplanes crossing the Atlantic. The project will be implemented using a phased development approach and has a masterplan (prepared by EDSA) that allows up to 2,641 units to be built. Most importantly, Gremi International holds the final Installation License allowing to start construction, issued on December 31, 2018 by Environmental Agency of the state of Rio Grande do Norte. The resort’s interior and exterior are expected to be completed in 2022. In January 2019, Founder of Gremi International, Chief Investment Officer at Gremi and General Manager initiated the establishment of RAIF (Reserved Alternative Investment Fund) in Luxembourg. This structure is the optimum investment vehicle for the Eco Estrela project as it will simplify and accelerate the development of the project. RAIF gives investors security as it is managed by an authorised AIFM. At the same time RAIF will help project gain more visibility as it benefits from the European passport granted by the AIFM Directive for marketing to professional investors in the EU.

Distance to the New Airport approx. 99 km

Natal

Federal Highway (BR) 101

Pipa

Baíía Formosa Ba Baía

João Pessoa

Natal - Baía Formosa (1 - hour drive on BR101)

João Pessoa - Baía Formosa (1 - hour drive)

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de

I n stalaç

On the 13th of February, 2019 IHG (InterContinental Hotels Group) announced the acquisition of Six Senses Hotels Resorts and Spas. IHG purchased the award-winning hospitality and wellness company from private equity fund Pegasus Capital Advisors for USD 300 million. IHG is one of the world’s leading global hotel companies with a growing number of luxury brands including InterContinental Hotels & Resorts, Regent Hotels & Resorts and Kimpton Hotels & Restaurants.

Recife - Baía Formosa (2.5 - hour drive)

For detailed investor / developer information please visit our stand at MIPIM 2019 (P-1.A20, P-1.B19) Lisbon Miami

6h Natal

Mr. Piotr Maj - Head of EcoEstrela Project E: p.maj@gremi.pl T: +48 609 501 195, +55 84 99686 0330 Mr. Dariusz Bąk - General Manager E: d.bak@gremi.pl T: +48 502 456 659


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Biggest hospitality project in South America (Brazil)

GRZEGORZ (GREG) HAJDAROWICZ Gremi International SARL, will be developing a new spectacular destination for tourists and residents from all over the world. The Eco Estrela Project is planning to create a breathtaking resort (featuring villas, spas and remarkable attractions), which will capture the hearts of many. It has taken me many years to find such a heavenly location. In 2003 I embarked on a mission to find paradise on earth and after crossing 3500 km of beaches, dunes, bays and islands I have found it. A place where life seems to be passing at a slower pace and each single moment delivers a bliss of sunshine and spiritual peacefulness. This breathtaking project will transform the Formosa Bay into a place where dreams collide with reality and our clients shall never experience a dull moment at the resort. Grzegorz (Greg) Hajdarowicz Founder, major shareholder and CEO of GREMI


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DIT ‘BANGS THE DRUM’ FOR WALES GAVIN Winbanks, director of capital investment at the UK’s Department for International Trade (DIT), spoke passionately about the opportunities in Wales, which span offices, retail, student housing and industrial space. According to Winbanks, more than 3,000 jobs were created in Wales last year on the back of foreign direct investment. “We now want individual project promoters to take the portfolio out on their travels and present them to the world,” he said. Winbanks added that DIT’s target was “sophisticated investors who see London as the natural home for their capital. We’re trying to bang the drum for Wales.”

DIT’s Gavin Winbanks

COMFORT MATTERS THE VAST majority of respondents — 95% — to an office-occupier survey said the physical comfort and enjoyment of the workplace was an important factor in attracting employees. In a poll of office workers and tenants in the UK and Ireland conducted by proptech company Equiem, 94% also said that office owners and managers needed to do more to make their buildings comfortable and conducive to wellbeing. When asked whether landlords and office managers should improve their sites with amenities and community events, 91% agreed, with 89% saying they would appreciate on-site services such as dry cleaning.

Smart-city technology will make Riga ‘more liveable and resilient’ LATVIAN capital Riga is set to use smart-city technologies in a bid to improve the lives of its citizens and appeal to investors and cutting-edge companies, according to Rolands Bogdanovs, head of investment at Riga City Council. For that reason, the city’s MIPIM delegation includes universities and LMT, the largest telecommunications company in the Baltic region. “The special thing about Riga is that we now think we shouldn’t concentrate on building traditional infrastructure,” Bogdanovs said. “That’s why we have partnered up with universities, telecommunications companies and startups. Everything we build, we want to do in a smart manner. So if we speak about building a new railway, it isn’t an ordinary railway. We’re adding sensors and drones and other details that will help us gather data. People can then make apps out of it. It makes Riga more liveable, resilient and friendly to

the public.” Future plans include a series of ‘test beds’ where app developers and other technology companies can trial their products. “Not just local companies, but also companies from abroad can test whatever it might be, from sensors to autonomous vehicles,” Bogdanovs said. “We are ready

for new innovations to come in.” Rudolph Strelis, project manager at LMT, added: “We are a 5G-ready country, which is important for companies in a lot of different industries, as well as citizens. That’s why the co-operation between the built environment and the digital infrastructure is a real strength of Riga.”

LMT’s Rudolph Strelis (left) and Riga’s Rolands Bogdanovs: smarter and smarter

Lunas’ virtual designs on the future “SOMETIMES words aren’t enough. “If you could say all you need to say about a building or an interior with words, there wouldn’t be any reason for us to create systems to visualise it

in 3D,” said Slava Oganesyan, CEO and co-founder of MIPIM first-timer Lunas, which provides bespoke 3D rendering, architectural visualisation, animation and VR systems to ar-

Lunas’ Slava Oganesyan shows MIPIM News’ Mark Moore the world of virtual reality

MIPIM News 4 • 24 • 15 March 2019

chitects and developers. He added: “We take what doesn’t exist but will do, and make it real before its time.” Lunas starts the visualisation process from plans, drawings or the CAD. “We can create a whole building in isolation or we can insert a building — a phantom — into an existing location or landscape,” Oganesyan said. Lunas’ USP is the quality of its visualisations, Oganesyan added: “When VR first came out, it gained something of a bad reputation, because the hype didn’t live up to the reality. The quality just wasn’t there — it didn’t draw you in. Now, it does. Now, it’s full immersion. And we’re right at the cutting edge of that. We ensure our quality is the best.”


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E-Valley’s warehouse city will transform tenant experience IMAGINE a town made of warehouses, with all the ancillary services you’d expect in a community — a kindergarten, allotments for growing produce, a job centre, repair workshops, digitally connected offices, supermarkets and even a hotel and leisure facilities — and you have a sense of the ambitious vision for E-Valley. Located in the Hauts-de-France region, in a strategic spot between Lille and Amiens, E-Valley is the brainchild of CEO Daves Taieb, a retail distribution entrepreneur whose decades of experience in the rag trade have made him a considerable expert in warehousing and logistics. “We bought this incredible brownfield side covering 3.2 million sq m, a former French army base whose ownership had been returned to the surrounding towns,” said Taieb. “It’s in a strategic location for the French logistics corridors, but also has easy access to Luxembourg, Bel-

gium, the Netherlands and even the UK. “From my experience in logistics, I realised that it’s high time the warehouse sector was offered the level of services which is now being rolled out for offices. So E-Valley provides a wealth of resources and amenities on-site, including serviced offices, so that the warehouse tenants can work much more effectively.” Set to become one of the biggest quadrimodal facilities in Europe, Taieb noted that the unique location and local plans for new infrastructure would insure that the site is served by road, rail, waterways and also drones. “As a former French air base, the site has the right permits for air traffic, and we’ve found a way to use the surrounding network of canals as ‘roads’ for drones to reach nearby towns, solving regulatory issues over flight paths,” Taieb said. In February, the French government signed

Daves Taieb plans to transform warehouse provision on the E-Valley site

off on the building permits for E-Valley and Taieb said he was at MIPIM to meet potential co-investors, as well as spread the word about this unique logistics resource to future tenants. “We’re going to be building over 700,000 sq m of warehouses, 550,000 sq m of which we’d like to hold as an investor, but we’re also ready to sell some 200,000 sq m to interested parties. The first warehouses will be ready in summer 2020, so the time is right to get involved.”

DELEGATES to the Lake Geneva Region (LGR) conference on Thursday morning heard about the attractions of investing in the area around the lake in the heart of Europe. A number of expert speakers talked on the theme of Housing Construction: Partnership Between Developers And Public Authorities. The various development opportunities are showcased on the LGR and Swiss Circle stands in the Espace Riviera. The session was sponsored by Horizon Leman, Swiss Circle and Svit Romandie.

MIPIM News 4 • 25 • 15 March 2019

REPORT PREDICTS A YEAR OF RAPID CHANGE THE NEXT 12 months may be a year of adjusting to rapid changes arising from a variety of sources, including environmental, social and governancerelated (ESG) risks; geopolitical uncertainty; and disruptive technology, according to Will Robson, global head of real estate research at MCSI. In its latest report, the company has identified five emerging real estate trends most likely to impact investment decisions during the year. Real estate investors are increasingly integrating ESG considerations into their portfolio decisions as climate change has a direct impact on the ownership and management of property. Coastal property may be especially impacted, according to an estimate in MSCI’s ESG Trends To Watch In 2019 report. Many real estate investors who have diversified globally are encountering geopolitical risk. The increasingly international nature of real estate capital markets means that investors may not be able to escape these global risks. Global gateway cities are particularly exposed to such capital flows and MSCI anticipates that political uncertainty will remain a top risk for real estate investors. MSCI says that technology’s ongoing impact on the real estate industry is fundamentally changing the role real estate plays within tenants’ business models and hence the amount and nature of the space they seek to occupy.


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M&A ACTIVITY SLOWING AMONG BROKERS CONSOLIDATION among real estate brokers has been significant over the past eight years according to the latest edition of Real Capital Analytics’ (RCA) annual ranking of global investment sales brokers. In 2011 — the first year of publication — 801 individual firms brokered at least one commercial property valued at $10m or greater, but last year that number was reduced to 662, according to Bob White, founder and president of New Yorkbased RCA. He added that significant M&A activity was most acute between the years 2014 and 2016, but appears to have slowed. However, focus has shifted from outright mergers to acquisition of individuals or teams of brokers that have been lured from competitors with potentially lucrative incentive packages. “Global reach is increasingly important and the relatively few firms that have it [at least 10% of activity in each of three global zones] collectively account for a 60% market share, up from less than 50% five years ago,” White said. “The list of global firms is short: CBRE, JLL, Cushman & Wakefield, Colliers International and Knight Frank/Newmark Knight Frank,” White said. “Publicly listed shares among the major brokerage firms is now the norm. In fact, among the top 10 in 2018, all but one is listed, with billion-dollar-plus market caps.” The percentage of deal volumes involving a broker has consistently increased over the years and reached 62.8% in 2018.

French star Diagana in Cannes for the launch of new sports complex FRENCH former 400 m hurdles champion Stephane Diagana was at MIPIM yesterday to showcase Campus Daigana Sport Sante, the new sport and health complex he is working on in Mougins, France, in conjunction with French company Miprom.

The €80m-plus development will comprise a 400 m athletics track, an Olympic-size swimming pool, sports halls, fitness and treatment areas, as well as a 118-room hotel and is aimed at amateur athletes and their families. There is also a housing development on the site. “The idea

On track for the new sports and leisure development: former athlete Stephane Diagana (left); Miprom president Laurent Millara; and Miprom’s Alexis Julliard

is that it appeals both to athletes who want to come alone or with family,” Miprom agency manager, Alexis Juillard, said. Planning for the development is expected to be granted in May, with demolition of existing properties on the 8-ha plot taking place later this year. Construction of the project is due to begin in March or April 2019, with completion due in 2022. Diagana said the project was a long-held dream for himself and his wife, also a former champion athlete. “We have travelled and seen so many sports facilities but thought the French Riviera offered the perfect set-up. It’s close to an international airport and has a lot of activities nearby to offer too,” he said. The centre would have national and international appeal but could also be accessed by local people too, Diagana said. The facility would also offer facilities to doctors running programmes for chronic diseases as well as for improving fitness, he added.

SIOR announces three-year growth plan THE SOCIETY of Industrial and Office Realtors (SIOR) is at MIPIM this year to build global links and recruit the best talent to its ranks. “Fundamentally, as much as the industry is changing and transforming through technology and so on, at the end of the day it’s about human interaction and those long-term relationships that can be built at an event like this,” SIOR global president Robert G Thornburgh said. “I’m the global president and how can I maintain a global view if I don’t attend an event like this?” SIOR recently published a three-year strategic plan for the

US-based association, which included growing the member-

SIOR’s Robert G Thornburgh

MIPIM News 4 • 26 • 15 March 2019

ship in key markets around the world. “We are very purposefully going to grow in Europe and elsewhere as part of an extension of what SIOR has done in the US for the last 75 years,” Thornburgh said. However, he added that SIOR had to maintain its standards and that it would not grow its membership just for the sake of it. “What makes us distinct is that designation is awarded to an individual member based on their qualifications and skillset and also based on endorsements from other members that will attest to your credibility and integrity,” he said.


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Proptech must work for tenants and landlords, conference hears THE LATEST proptech needs to work equally hard for both landlords and tenants, delegates have heard at a Workplace Technology: Improving The Experience session. “Just as occupiers are turning to tech to assist them with talent retention, landlords need to provide the right infrastructure to keep their tenants,” said Charlie Kuntz, innovation offices at Hines. “Tenant engagement apps represent the key frontier, moving forward, to get the most out of employees,” Kuntz added. “There is also a great deal of sensor tech out there which is becoming more affordable, after being prohibitively expensive for some time. The truth of the matter is, we don’t know a lot about how physical spaces affect people, but these are important tools on the path to understanding.” Andrea Jang, head of growth Americas, JLL Spark, added: “Productivity is also an issue which can be answered by the new workplace tech. If you can understand what employees are doing during the day, even with their lunchbreak, you can create ancillary services. Whether that’s dog walking or food delivery, it’s a way of keeping employees at

The workplace technology panel: Hines’ Charlie Kuntz (left); JLL Spark’s Andrea Jang; Ivanhoe Cambridge’s Jonathan Pearce and Scott Brownrigg’s Anna Kulik

their desks for longer.” The third panellist for the session was Jonathan Pearce, executive vice president, leasing office and industrial, North America, Ivanhoe Cambridge. For Pearce, too, a hybrid approach is essential to make employees happier. “Today’s users are no longer living two compartmentalised, parallel lives,” he said, referring to the work-life balance. “The use of technology and the cues of hospitality that are coming into office buildings are very compelling. In our offices, we’re using tech to create third spaces,

returning time to the employees by an effective use of concierge services. With employers trying to compete and retain talent, anything we can do to assist that and reduce friction is incredibly important. “For example, the monolithic office lobbies of yesterday have gone, replaced by much more informal and appealing spaces. You want to increase dwell times, so you need soft seating. Amenities was once a dirty word, you wanted to avoid providing access to leisure — now it’s essential,” Pearce said.

DESIGN PLATFORM THAT CUTS OUT THE MIDDLE MAN HABX is the first intelligent digital platform that designs apartments on demand, according to company director Bastien Dolla. The tool is designed for developers to customise their apartments according to the wishes of customers. Clients decide on the configuration of the space they occupy. “If they want two bedrooms and a larger lounge space, that’s what they can have,” Dolla said. “If they want two bedrooms, a child’s room and a smaller lounge space, they can go for that. It’s totally flexible. It gives people what they want. They choose rather than the architect choosing for them, and them then having to adapt to a space that may not be ideal for them.” Dolla said Habx is the first tool to generate on-demand automated plans according to the occupiers’ wishes. Habx works by digitising architect’s plans, which are then tooled into the software. The tool has four aspects: the Localiser “helps customers find the best location for their future apartment”; the Configurator “helps them define their ideal apartment with a real-time price quotation”; the Spacer “instantly generates alternative space configurations within the building”; and the Optimiser, which is “the tool that generates on-demand automated plans”.

Leica Geosystems moves into real estate France-based Leica Geosystems is making its debut at MIPIM to meet a new audience for its range of products. “We are specialists in measuring instruments and positioning systems and are well-known in the construction and surveying markets — but for us real estate is a new industry,” Alexis Picot, partner at Leica Geosystems said. “MIPIM is about discovering the market.” Alexis Picot, partner in Leica Geosystems

The company is part of this year’s Innovation Forum and is showcasing its newly-launched range of 3D cameras at the show. The BLK3D range can be used to map buildings before and during development to document progress. Picot said the company’s first time at the show has been a success. “We have met some interesting people both in terms of visitors as well as exhibitors with which we can have partnerships.”

MIPIM News 4 • 27 • 15 March 2019

Bastien Dolla, director of Habx


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Demand for flexibility drives changing workplace sector THE RISE of flexible or shared offices, as exemplified by US provider WeWork, was the sub-

ject of a roundtable discussion hosted by international law firm Trowers & Hamlins on the UK

Trowers & Hamlins’ Amanda Hanmore: “it’s something that will change more”

Government stand at MIPIM this week. Simon Cornford, co-founder of workplace occupancy specialists Smart Deskers, kicked off the session, arguing that the office market has fundamentally changed. “We’re seeing a market where work/life balance has changed,” he said. “No longer are you expected to be at your desk from eight to eight or whatever it might be. Companies are trying to retain talent by giving people the ability to work anytime, anywhere.” What’s more, Cornford continued, the location of flexible offices is changing. “We’re starting to see shared working environments in the suburbs,” he said. “It allows you to reduce your desk count in central London. You’re giving people the ability to be in a more professional environment than their home and it allows employers to retain talent.” Amanda Hanmore, partner and

Covivio steps into serviced offices FRENCH real estate investor Covivio has made a move into the burgeoning serviced office sector with five transactions in France and more planned in Europe, and is eyeing the nascent co-living residential market. Covivio, which holds assets throughout northern Europe across a range of sectors, has invested into the ‘pro-working’ sector where it is interested in taking on buildings offering a hybrid service between traditional office space, serviced offices and co-working hotdesk facilities. To date the investor, which manages a total fund of €23bn, has acquired four assets in Paris and one in the southern city of Marseille, which it operates un-

der the Wellio brand. The portfolio is set for further growth in key French cities and further European markets. The office properties represent

a new direction for Covivio, which is invested in long-term assets within the traditional office market in France and Germany, residential properties in

Covivio’s Philippe Boyer: “at the moment we are focusing on big cities”

MIPIM News 4 • 29 • 15 March 2019

head of real estate in the Midlands at Trowers & Hamlins, agreed that the market was changing, but added that some of her clients were sticking to more traditional workplace strategies. “I think it is changing and I think it’s something that will change more,” she said. “More women are at a senior level and that has helped lead the change. However, I also act for companies that haven’t looked at investing in flexible space.” The growing number of flexible offices also presents some difficulties for investors and landlords, Adrian Leavey, partner and head of commercial real estate at Trowers & Hamlins pointed out. “For many years we’ve been doing the same thing, especially when it comes to offices: an institutional lease, long term with a great covenant and an upwards only rent review,” he said. “These are principles that simply don’t work with flexible uses. Suddenly changing a building from having five tenants to 500 members is difficult to cope with. It’s management intensive and there is a cost of redesign. There is also an issue about valuation.”

Germany, and hotels and other hospitality sector properties throughout the continent. Covivio innovation director Philippe Boyer said that the firm was interested in “mixed usage buildings” with space for regular, permanent office tenants, with “zones for pro-working”. He said: “At the moment we are focusing on big cities like Paris. We have big competition from big groups like WeWork. More and more spaces have opened up in this sector in the last few years.” Covivio has also recently invested in a tranche of UK hotel assets, in Manchester, London and Edinburgh, operated by Intercontinental. Around 40% of the company’s assets are located in France, followed by Germany which accounts for roughly a third of its holdings.


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McAlpine celebrates 150 years building UK’s future heritage UK BUILDING and civil engineering company Sir Robert McAlpine kicked off its yearlong 150th anniversary celebrations yesterday with a MIPIM reception. Flying the flag in Cannes for the family-owned company, whose current pipeline of projects includes the redevelopment of London’s iconic Battersea Power Station, the Exchange Square residential scheme in Birmingham, and British Land’s Broadgate office and retail scheme, are directors Hector and Sir Andrew McAlpine. Talking to the MIPIM News, Hector McAlpine said maintaining and growing a business for 150 years and across five generations of family takes “more than passion and pride”. He added: “Longevity reflects an ability to understand the needs of clients and wider society, innovating and adapting in response to a changing world. It also speaks to our family culture, entrepre-

neurial spirit and enduring values running through our business.” Hector McAlpine said the 150year milestone had provided the company with an opportunity to look forward, as well as back. “We plan to use the year to build on our legacy, offering people we work with a chance to make a difference within their

local communities. We hope that sharing our story and passion for construction will help showcase the many opportunities within the industry and inspire a new generation of professionals to join our ranks,” he said. In Cannes this week, Sir Robert McAlpine is partnering with the London Club, the Midlands UK Pavilion and Invest Newcastle.

Sir Robert McAlpine’s Hector McAlpine: “entrepreneurial spirit and enduring values”

Montreal’s new development strategy

Veronique Doucet of Montreal’s economic development department

THE CANADIAN city of Montreal is at MIPIM to showcase 42 projects in the city and the surrounding region. “We’re demonstrating that the city is a hub for innovation, wellness and community,” Veronique Doucet, director of Montreal’s economic development department said. “We currently have 5 million sq m of development potential,” Doucet said “Ranging from the port shore on the St Lawrence in the southeast to the airport in the west. And there’s still space for development in the downtown zone too. We have $9bn (€8bn) worth of projects in progress now.” Doucet said western Montreal has the biggest industrial zone in the entire province of

Quebec. “We have 100,000 people working there.” Doucet pointed out that successful development often depends on transport infrastructure. “We’re redeveloping much of the transport infrastructure now. Which means that anywhere you want to develop there’ll be good access.” One of the attractions of the city to inward investors is the highly skilled bilingual workforce, Doucet said. The city’s latest development plan is based on a new strategy. “We want to concentrate development on life sciences, AI, clean tech, sustainable projects, and cultural and creative industries. We’re at MIPIM to get that message across.”

MIPIM News 4 • 31 • 15 March 2019

COMPETITION WIN FOR SHENZHEN BAY MASTERPLAN ARCHITECT WilkinsonEyre and landscape architect Morphis have won a major international competition for a 6.3-ha urban design and masterplan project in the Greater Bay area of Shenzhen, southeastern China. Commissioned by the Shenzhen Government, the Shenzhen Bay Avenue East Extension will create a 1 km pedestrian connection between the commercial district of the city and the bay. The design involves a series of interconnected elevated walkways linked via escalators and stairs to a lively streetscape and basement level. The route passes through three distinct zones, from the central business district through to a new cultural quarter and on to a landscaped park on the bay. Key urban spaces include a transport interchange with a bus station and links to two subway stations, a sunken plaza and the Platform Park, which is envisaged as a calm space amid the hustle and bustle of the city. Matthew Potter, director of WilkinsonEyre Hong Kong, said: “WilkinsonEyre and Morphis have collaborated to create a proposal that holistically blends architecture, urban design and landscape design. Our concept will deliver a strong linear public space with the flexibility to allow the city to breathe, develop, grow and adapt.” Mark Blackwell, director of Morphis, added: “The creation of new and contemporary public realm integrated with city life is crucial to simultaneously transform and unite Shenzhen with its waterfront.”


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ABB shaping future building with smart digital solutions TECHNOLOGY can provide a “total contribution” to social responsibility and sustainability in the built environment, according to Matthias Winkler of ABB, the global automation company. “Our solutions bring the future to you today,” said Winkler, who with colleague Emanuele Tosatti, work in ABB’s electrification products division, and have

been at MIPIM’s Innovation Forum showing delegates the coming shape of smart buildings. “We are working together to create workplaces where anything is possible,” Tosatti said. “Through intelligent and automatic lighting, air-conditioning, heating and movement detection, we make greater energy efficiency and increased securi-

ABB’s Emanuele Tosatti (left) and Matthias Winkler

ty easier than ever. With digital solutions everything can even be controlled remotely, giving you complete control wherever you are, whenever you need it most.” With ABB’s smarter building devices, Winkler claimed, “you can take advantage of ABB’s expertise and building automation know-how in both the electrical and mechanical building systems. From the individual components through systems and a choice of communications protocol platforms, ABB can support a broad range of requirements.” One of ABB’s analytical tools is BIM, Building Information Modelling — a process to create and manage information on a building project across its lifecycle. “BIM allows building disciplines and professionals to work simultaneously on the same project. This makes projects easier and saves costs on construction, maintenance, renovation and management. BIM is no longer just an option and its use is mandatory in large public projects in many countries,” Winkler said.

NEW CONFIDENCE BOOSTS GREEK RESI INVESTMENT GREATER confidence in investment opportunities in the Greek residential market have helped to push prices up by 7%-8% in the past three years, with further gains expected, according to Vaggelis Kteniadis, president of Athens-based V2. V2 develops, constructs and sells residential schemes and Kteniadis said that the Greek visa programme — enabling residency for investment — had “rejuvenated the whole real estate sector” and is “solely responsible” for the turnaround. “I believe investors needed time to see what happened and to gain trust in the recovery,” he said. “Now they can see that the actions of the EU and the Greek government are working.” Ioannis Revithis, former president of the Greek Real Estate Federation, agreed and said that the collective presence of real estate companies at the Greece Pavilion at MIPIM was an important step in promoting the market internationally. “Greece has many advantages in terms of tourism, including beautiful landscapes, clean beaches and a safe environment,” he said. “Investors from markets such as northern Europe and the Middle East are showing particular interest.”

New tenants agreed for HafenCity PEMBROKE has signed up a clutch of new occupiers for its HafenCity Hamburg developments, Coffee Plaza West and S-Kai. Care home specialist Domicil has taken 715 sq m of office space at Coffee Plaza West. And DIS AG, part of the Adecco Group, has taken 50% of the property totalling 2,250 sq m over four contiguous levels. At the same time marketing agency FCB Hamburg has signed a five-year lease taking 1,383.5 sq m at S-Kai over the third and fifth floors. Pembroke senior vice-president

and head of UK and Germany Nick Moldon said: “The recent HafenCity lettings are a testament to our hands-on approach to asset management, flexible workspace offerings, campus environment and vibrant restaurant scene that supports the needs of today’s savvy business community. “We believe in the long-term growth potential of the German market, and following the opening of our office in Munich last year, are actively seeking acquisition opportunities to continue to expand our portfolio in the UK, Germany and the Nordics.”

S-Kai, HafenCity

MIPIM News 4 • 33 • 15 March 2019


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Matterport targeting new markets with accessible 3D camera range US-BASED camera visualisation specialist Matterport will launch a new hand-held camera next week, after receiving a cash injection of $48m (€42.4m) the week before MIPIM, enabling it to reach a far wider audience as it expands its global 2D/3D business. New chief executive RJ Pittman, formerly the chief product officer at eBay and who before that held executive roles at Apple and Google, said that the move will make Matterport’s offer very accessible to a new set of users, both in terms of pricing and also ease-of-use and portability. Matterport — which started out making cameras but has since diversified into a wider platform to capture, create, search and use 3D imagery of interior spaces — began by making high-end cameras to capture multiple images to create 3D interior imagery for a variety of applications, from interior design to real estate marketing. Matterport still sells its own high-end cameras but will launch a far less expensive op-

Matterport’s RJ Pittman (left) and James Morris-Manuel

tion than its Pro2 camera with a device that looks more like a smartphone. Using an AI engine, it has packaged its offer into a service called Matterport Cloud 3.0, which converts 2D panoramic and 360-degree images into 3D images. It already has 1.6 million 3D images and millions of 2D images, and at its current growth rate, the aim is to expand its library to 100 million in the coming years. “We still believe that there is

huge potential in the residential market because it is an inexpensive and accurate way for estate agents to market properties, or for hospitality hosts to demonstrate their accommodation,” said Pittman, who also cited construction and architecture as another area for expansion. “The real opportunity here is to take the advanced technology developed so far by Matterport and to create something at real scale,” he said.

MIPIM delegates have been given a preview of what is claimed by its maker Vu.City to be “the world’s largest and most accurate city visualisation platform”. According to the company, the latest edition of the software for large-scale 3D modelling, Vu.City 3.0, spans entire cities — in this image, London — and is accurate to within 150mm. Vu.City 3.0 is officially launched in May 2019.

MIPIM News 4 • 35 • 15 March 2019

UTILITIES AND SMART BUILDINGS GIANTS LAUNCH PARTNERSHIP ENERGY management and building automation giant Schneider Electric and real estate and facilities management software provider Planon are to work together to bring an integrated ‘smart platform’ to market. Announcing the collaboration at MIPIM, the companies said that they will converge real-time building data and AI-driven analytics with intelligent business responses, improving operational workflows for building operators, occupiers, and their service providers. This venture will enable organisations to reduce building operating costs, enhance the value of assets throughout their life cycle, enhance building sustainability and improve the workplace environment for occupants. Speaking to MIPIM News, Michael Sullivan, president, buildings segments for Schneider Electric, said: “Many services tend to be considered in silos but this move brings together our expertise to help building owners, occupiers, real estate service providers, asset managers, and facilities managers to improve the financial performance of their real estate portfolios.” Sullivan added: “For building developers it’s so important to create smartready buildings that appeal to major occupiers and once a building is leased, then for the occupier it’s all about building operations, decreasing costs and keeping their staff happy. This initiative answers both of those requirements.”


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Residential set to outperform retail as co-living trend builds THE FAST-growing residential sector is an increasingly important element of the real estate industry and is likely to exceed retail by investment volume in Europe this year, said Adam Challis, EMEA regional director and head of residential research at JLL. Challis said the asset class has growing investment appeal because it offers strong yield performance, and stable, long-term income to meet pension-liability commitments. While much

attention has been focused on multi-family and student accommodation, he said that co-living and senior living are also rapidly growing markets. “While co-living is typically associated with immediate post-university accommodation, in fact there are far more potential users,” he added. “We are also seeing demand from midweek commuters and even seniors looking for co-living spaces with like-minded people.”

JLL’s Adam Challis: “demand from mid-week commuters and seniors”

Challis anticipates that, for senior living and accommodation with healthcare facilities, an ageing cohort will create fresh demand for a new range of living real estate assets. Meanwhile, the need for many schemes to be forward-funded while the sector matures puts the emphasis on higher quality construction and services. “Typically, regulations drive build quality,” Challis said. “But, in fact, for investors forward-funding projects, the need to safeguard their capital through better amenities, customer-facing technology, sustainability and energy performance, and higher quality finishes and construction materials mean that it’s likely that it will be the commercial sector that propels better quality.” While Germany, with its established multi-family market, and the emergence of multi-family in the UK, make these the two largest European markets, Challis said he believes the Netherlands, France, Spain and Italy will also see strong growth.

London new builds still in demand THERE is still “huge latent demand” for commercial and residential development in London, despite current political uncertainties, a leading engineer based in the capital has said. Eddie Jump, technical director at engineering firm Pell Frischmann, said that, while developers and investors were aware of a tough climate in the UK, the high demand for new builds to solve a “huge population issue” in London was driving an ongoing pipeline of construction works. Pell Frischmann has recently completed a complex multi-mil-

lion project to redevelop iconic central-London skyscraper Centre Point and convert it to luxury apartments on behalf of owner

Pell Frischmann’s Eddie Jump: “huge latent demand”

Almacantar. The 90-year-old firm, which has offices in the Middle East and operates a sister company in India, was involved in the original construction of Centre Point in the 1960s. Pell Frischmann is about to embark on another landmark project in the west of London — the redevelopment of Olympia on behalf of Yoo Capital. The complex project will see the building, which is primarily used as a conference centre, converted to include performance-art and music-performance spaces, while the current building remains open.

MIPIM News 4 • 37 • 15 March 2019

BUILD-TO-RENT EXPLAINED WITH almost half of Londoners living in rented accommodation, business group London First has joined forces with London Councils and Turley to launch a comprehensive new guide explaining the multi-family sector. The report, Everything You Need To Know About Build To Rent In London, provides an in-depth overview, including investment models, resident profiles, an analysis of the pipeline, and a borough-by-borough examination of council planning policies covering multi-family. The guide reveals that London is increasingly a city of renters, with the percentage renting privately continuing to rise rapidly. Among the key findings, the report notes that there are now close to 15,000 multi-family homes in London alone, with just over 19,000 homes under construction and more than 38,000 at various stages of the planning process. Recent research shows that £3.1bn (€3.6bn) was invested in multi-family assets in 2018, up 33% from 2017. Moreover, £33.8bn of institutional equity is targeting investment in the sector over the next five years. Jonathan Seager, London First’s executive director of housing, said: “Build to rent has a vital role to play in London, helping to increase supply while professionalising the rental sector. Councils are critical in making build-to-rent a success across the capital, both in getting planning policy right and investing directly as a future revenue stream.”


news

Got to keep your ‘customers’ satisfied, top investors agree

The RE-Invest Summit drew investors from around the world

INSTITUTIONAL investors recognise they must treat real estate tenants as ‘customers’ or risk diminishing their returns, it was revealed at the closed-door RE-Invest Summit. The live poll of 53 representatives of sovereign-wealth funds, pension funds and other institutional investors found that 58% strongly agreed that a focus on customer experience in buildings will be critical to achieving

successful investment outcomes over the next five years. Another 40% agreed and the remaining 2% were not sure. Andy Pyle, the head of UK real estate at KPMG, told delegates that understanding the commercial real estate customer and giving them more of what they want will improve user experience and increase returns for investors. He said traditional leases were evolving to give cus-

tomers a different experience and accommodate changing needs, such as flexible working environments. Data provided by Pyle showed brands that improve customer experiences see revenue increase by as much as 10% to 15%, while also lowering costs by 15% to 20%. “Economic value is lost when experience fails to meet expectations, resulting in missed revenue and increased costs,” he said.

Alternatives facts at first Re-Allocate MORE than 40 family offices and institutional investors came together at the inaugural MIPIM RE-Allocate summit, held in association with global investment manager PGIM Real Estate, to discuss the future of alternatives and the key risks facing real estate investors in 2019 and beyond. Setting the scene, Charles Hecker, senior partner at Control Risks, summarised the top five geopolitical risks facing investors today. First is the US-China trade dispute, a geopolitical dynamic that is looking set to define 2019. Then there is data, and the difficulties associated with staying compliant in the face of differing regulations around the world. The US political gridlock, climate change and

the fact that borders are back complete Hecker’s risk line-up. Tom Carr, head of private debt at Prequin, pointed out that alternatives as an asset class have increased more than threefold in the past decade to $9.5tn, $909bn of which is in real estate

alone. He saw more successful capital deployment in 2018 compared to previous years, with an increase of investment into opportunistic and value-add strategies, and debt, but overall slightly lower capital raising. He is also seeing evidence of the

The inaugural RE-Allocate summit in full swing

MIPIM News 4 • 38 • 15 March 2019

On the upside, economic value is maximised when customer expectations and experience are in alignment, Pyle said. In order to benefit from the increasing returns, organisations need to consider what shapes and defines today’s customer purchasing and experience requirements by knowing, for example, what drives consumer behaviours and expectations, and understanding the trade-offs that customers make. Organisations that consider customers’ purchasing and experience requirements have proven to yield “enhanced outcomes, grow quicker and deliver shareholder value”, Pyle said. He added that commercial real estate will have to mimic the hospitality franchise model and focus on becoming more customer-centric. It will need to mine data to understand how buildings are used and what customers want most from their working experience. The industry should also maintain brand consistency and ensure that every building delivers a unique look, feel and expectation. Razak Musah Baba, IPE Real Assets

much-discussed consolidation of capital, with money flowing more readily into established managers than newer firms. A panel moderated by Peter Hayes, global head of investment research at PGIM Real Estate, identified challenges such as the aging population and high asset pricing as top of investors’ minds. But the themes that particularly resonated with the room were ESG (environmental, social and governance) and impact investing. The panel agreed that impact investing and its dual objective of achieving financial revenue and a positive social impact is gaining traction — and as millennials become the decision-makers, it is a trend that will only increase. Caroline Pang, head of marketing communications, Europe and Asia Pacific, PGIM Real Estate


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MIPIM 2019 NEWS 4; Nouvel’s green tower; Accor takes on disruptors; Diagana back sports resort; MIPIM Awards winners and more... MIPIM; Real...

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MIPIM 2019 NEWS 4; Nouvel’s green tower; Accor takes on disruptors; Diagana back sports resort; MIPIM Awards winners and more... MIPIM; Real...

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