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Thursday 16 March 2017

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STARTUP COMPETITION

Discover why the world’s leading financial institutions choose the UK.

Winners of the MIPIM Startup Competition revealed

TOULOUSE

Libeskind selected for 150-metre Occitania Tower project

HOUSING

The UK is the centre of the financial world. We’re home to over 250 international banks and 1,400 financial services companies. Discover a land alive with opportunity at great.gov.uk UK housing minister calls for international investment

The world’s financial centre London, UK

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03/03/2017 10:00

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CONTENTS NEWS

WHAT’S HAPPENING TODAY

3 Paris unveils Olympic plans; Libeskind wins Toulouse; Barwell invites international investors to the UK; and more...

FEATURE

• New Vs. Traditional Players: What Are The New Alliances To Create? 10.00-10.45 – New Deal room, Palais 3 • How Can Smart Mobility Make Cities Smarter? 10.00-10.45 – Innovation room, Palais -1

57 A growing momentum in CEE

• PechaKucha – A New Deal For Real Estate 11.00-12.30 – Grand Auditorium, Palais 1 • How Can Standard Agencies And Regulatory Authorities Help The RE Sector To Create Growth? 15.15-16.00 - New Deal room, Palais 3 • How can investing in hotels create good returns? 16.30-17.15 – Asset Class room, Palais -1

e Schedulce

ren Confe me a r prog m P27 THE ALBERTA province capital Edmonton is the fastest growing major city in Canada — at 14.8% a year, with 1.4 million people in the metropolitan area. “In fact Edmonton is the most northerly city in the world with a population of over one million,” said Barbara Engelbart McKenzie (pictured right), from Alberta Aerotropolis. Edmonton sits in striking distance of the major Alberta oilfields and is the location for a large number of oil and hydrocarbon related businesses. Edmonton has sponsored the VIP Club business space on level 3 of the Palais this year. Along with Engelbart McKenzie, other Edmonton

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delegates speaking to MIPIM News about the investment opportunities in the city were Catherine Keill (centre) of Edmonton Economic De-

velopment and Geoff Herdman (left) of Edmonton International Airport. A major development in the metropolitan area is Aerotropolis: “A 214

ha parcel south of the airport where hotels and restaurants, exhibition and conference centres are being built, and where manufacturing and distribution firms are setting up shop,” Herdman said. Herdman also pointed out that from 2015 Edmonton has been the only stop on Air China Cargo’s Beijing-Dallas route both on the incoming and return flights. Edmonton’s Keill said the Edmonton delegation at MIPIM was looking to meet with investors and developers. “And to highlight the opportunities created in the whole spectrum of real estate by such a fast growing city.”

The official MIPIM daily newspaper Thursday 16 March 2017

Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor in Chief Graham Parker News Editor Doug Morrison Sub Editors Clive Bull, Julian Newby, Joanna Stephens Proof Reader Debbie Lincoln Reporters Ben Cooper, Mark Faithfull, Isobel Lee, Mark Moore, Liz Morrell, Paul Strohm Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designers Muriel Betrancourt, Véronique Duthille, Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographers Christian Alminana, Patrick Frega, Phyrass Haidar, Olivier Houeix, Michel Johner Editorial Management Boutique Editions PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Co-ordinator Emilie Lambert ADVERTISING CONTACT IN CANNES Laurianne Di Cecca 07 77 69 34 96 laurianne.dicecca@reedmidem.com Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNEBILLANCOURT (FRANCE), VAT number FR91 662 003 557. Contents © 2017, Reed MIDEM Market Publications. Publication registered 1st quarter 2017. Printed on PEFC Certified Paper.

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NEWS Paris on Olympic starting line with ambitious bid

Amazon centre ‘huge vote of conﬁdence’ in Catalonia

Catalonia minister Josep Rull Andreu: “outlook is very promising for Catalonia”

OSEP Rull Andreu, the Government of Catalonia’s minister of territory and sustainability, urged MIPIM delegates to “discover the potential of Catalonia as the southern gateway to Europe”. He added: “We are talking about a land of opportunities. Our country has returned to stable growth and the outlook is very promising for Catalonia.” Rull was in Cannes to promote his region, which saw around €2.5bn of real estate investment in 2016. He said Catalonia’s strength was highlighted by the fact that Amazon is to open a new distribution centre in the region. The e-commerce giant’s €200m investment will create 1,500 jobs within three years of the logistics centre’s opening in October. Located in El Prat de Llobregat, the 60,000 sq m facility will serve customers in both Spain and Southern Europe.

Deputy mayor of Paris Jean-Francois Martins (left) with the Paris Olympic bid team

LANS for the Paris bid for the 2024 Olympic Games were unveiled at MIPIM at a special event yesterday. A joint presentation of the bid and the opportunities it presents to international real estate investors was made by some of the key organisers and public figures behind it, including JeanFrancois Martins, the deputy mayor of Paris in charge of sport and tourism. The ﬁnal phase of the bid was submitted to the International Olympic Committee (IOC) on February 3. The IOC’s decision will be revealed on September 13 this year. All the developments revealed yesterday will take place whether or not the Paris bid is success-

ful and all fit in with the wider Grand Paris project. Speaking to MIPIM News, Martins said: “This project will be a good thing for the whole of the Grand Paris project and, if we get the Olympics, it will be good for the whole of Paris because it will accelerate the whole project.” He added: “All of the officials are united behind the project. We wanted to come to MIPIM to show that we are ready and that we are all united behind the bid and to building a solid legacy for the area.” The plans include thousands of new residential units, as well as a series of new commercial and office builds. The site is located on the future Grand Paris Express rail network, which is itself under construction.

“The strategic position of this land [which is near to both Barcelona-El Prat airport and the city’s port] was the determining factor in Amazon’s choice of location,” Rull said. Amazon itself has talked about the new location being a gateway to Southern Europe and the minister urged others, particularly in the logistics sector, to follow the etailer’s lead. “Why is the example of Amazon so important?” he said. “Because as far as they are concerned, time is money. They are a company with delivery speed in their DNA, so it’s a huge vote of conﬁdence that they have chosen us.” Last year’s investment in Catalonia went mainly into purchasing office buildings and shopping centres. However, the logistics and industrial sector reported the highest growth — up 61% — with a total investment volume of €144m.

mipim HIGHLIGHTS

THE SUN shone on the Palais for the second day of MIPIM

Automatic for the people

A packed MIPIM session

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JAMES ANDREW INTERNATIONAL ARTHOUSE KINGS CROSS, LONDON

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WEST END & CITY OF LONDON

I WASHINGTON DC

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NEWS Venice releases defence land for development

Investment is returning to the City of Buenos Aires

RGEN T I N I A N capital Buenos Aries is at MIPIM to seek investment for two prime sites in the city, one a waterfront office opportunity, the other a business park adjacent to the university’s research facilities. The decision to showcase the sites in Cannes reflects a “completely new approach” to attracting foreign investment into the country following a change in the national government last year, Franco Moccia, minister of urban development and transportation, Buenos Aries City, told MIPIM News. “After a decade of being out of the international scene, we are opening our doors to foreign investors and these are two of the best sites available in Buenos Aries,” he said. “The city has a great reputation for educational facilities, attracting many students from other Latin American countries, and we want to keep them here by improving the environment for research and entrepreneurial businesses, creating a city that young people like to work and live in.” Moccia said that the city hopes to complete the sale of the commercial land — which is adjacent to a prime office area — by the summer and the innovation park by the end of the year. The latter offers potential for up to 120,000 sq m of research build-

Vignole Island, Venice

TALY’s Ministry of Defence launched a spectacular development opportunity at MIPIM yesterday – the chance to transform an entire island in the heart of Venice. “Vignole island, in the northern part of the Venice Lagoon, opposite the Lido, is part of the Ministry of Defence’s vast estate which we now see as ripe for valorisation,” Gioacchino Alfano, undersecretary of state for defence said. “Developed in 1884 as a torpedo-testing basin, it has been serving as a training facility for sea-planes since 1913. Offering nearly 200,000 sq m of space, the island incudes 27 operational buildings and 19 dilapidated ones. We’re here to offer developers the chance to refurbish and enhance these structures, under 50 year concessions.” While property speculation will not be permitted, the local government is ready to greenlight hospitality projects for the island,

Doing the quickstep

giving Venice’s tourism industry a boost. There is also the opportunity to exploit an 800-metrelong, 70-metres wide canal, as a docking facility. “One of the major issues with Venice’s tourism industry at the moment is the passage of cruise ships,” Alfano said. “Tourists spend a day here but don’t really put money into the economy. We want to develop this new area of hotels and leisure facilities, to encourage visitors to stay longer.” Heritage buildings on the island include La Cavana, a covered boat shelter typical of the city of Venice. Standing in a privileged position overlooking the canal, it is crowned by two terraces that form a panoramic balcony over the water. “Located just 10 minutes from the Giudecca canal, in front of St Mark’s Square, the island has all the right characteristics to become an iconic destination of tomorrow,” Alfano said.

Property players

Buenos Aries minister Franco Moccia

ings and will connect with the city’s university and Coastanera Norte ecological reserve. This is the second year that Buenos Aries has come to MIPIM and Moccia said that domestic investors — many who had previously focused development in the US, especially Florida — are also returning to the city to start new projects. Moccia said that Argentina is recovering from a lengthy economic downturn but that structural reforms put in place had started to take effect. “We are enthusiastic about opportunities for investors,” he said. “We want Buenos Aries to be the centre for talent in the south of Latin America.”.

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NEWS

Czech cities team up to Don’t ignore Russia, Jabri attract new investment advises foreign investors Nikken Sekkei’s Wataru Tanaka (left), and Fadi Jabri

Mayoral partnership: Petr Hladik (left), Adriana Krnacova and Tomas Macura

OR THE first time, three key Czech cities — Prague, Ostrava and Brno — are collaborating on a joint stand to enable investors to get a complete picture of opportunities in the Czech Republic. Mayor of Prague Adriana Krnacova said that the three cities have similar challenges in urban planning, housing, transport infrastructure and creating the right legal framework for investment. “In the past developers have been considered evil. I consider them as partners but we have to set rules and both partners have to obey the rules,” Krnacova said. The city is focusing on abandoned or unused land for future development, especially former industrial plants and freight yards.” Mayor of Ostrava Tomas Macura said that the joint stand enables him and his colleagues to bring

View from the top

IGH demand for large infrastr ucture and transport developments in and around Moscow have presented significant opportunities for international real estate companies, a senior member of an international architecture firm has said. Fadi Jabri, executive officer at Nikken Sekkei, which is based in Tokyo and has a number of large projects under way in Russia, said that international companies should not overlook the country for investment and development opportunities. He said: “The big news in Moscow in 2017 is the transit hubs. Russia is a great country and a large market and there are a lot of transport hubs and infrastructure projects that need developing. We’ve been active in Russia for 10 years.” Nikken Sekkei has been involved in a number of large projects in Russia, including the redevelopment of the Botanich-

a piece of the city to Cannes. While previously Ostrava has focused on opportunities for industrial developments, this year the city will be showcased as a place for education, living and relaxing as well as to work. “We can offer opportunities in the city centre where we own over 40 ha of land which we can offer to interested developers,” Macura said. Petr Hladik, first deputy mayor of the Czech Republic’s secondlargest city, Brno, said the city is regarded as the Silicon Valley of central Europe, with great technological infrastructure for innovation and over 200 ha of land for redevelopment. The city also has more than 45,000 students. “There is a good level of education and a high-quality workforce. If you do anything you need high-quality people,” Hladik said.

Standing room only

esky Sad transport and transfer hub, a major transformative project in Moscow. The company is also working on the masterplan for Vladivostok, the country’s most eastern city. Nikken Sekkei executive officer and head of the company’s urban design and planning group, Wataru Tanaka, said that Japanese expertise in infrastructure development and design was one of the country’s most valuable assets, particularly in an era in which domestic companies are thinking more outwardly and more globally than ever before. He added: “Japanese companies in the past have been too rigid, but now they are changing their policies to match with more local systems and cultures.” Nikken has also been highly active in the Middle East development pipeline, and yesterday it was confirmed that the firm will be working with Saudi developer Cayan on a new mega project on the Obhur waterfront in Jeddah, Saudi Arabia.

Outdoor types

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NEWS Hackathon winner brings proptech skills to Cannes

HEN RealPad ma nagi ng director Marian Skvarek entered M I PI M U K’s Hackathon — a 48-hour competition for techies during the London show — he thought it would merely be good exercise for his programming team. Skvarek was somewhat surprised when the resulting app, Flat White Desk, won the competition and with it tickets to MIPIM in Cannes. Skvarek is here this week, accompanied by Gary Chimwa, founder of Future PropTech, which organised the Hackathon. Skvarek had noticed that a large number of people work for several hours in cafes between meetings which is often unsatisfactory for the cafe operator as someone sitting for two hours and buying one coffee is not a recipe for business success. Similarly the remote worker may face dirty tables, a noisy environment and none of the facilities of regular co-working space. “But people are ready to pay per

Design team announced for Toulouse tower project

hour for quiet space, great wi-fi and good coffee,” Skvarek told MIPIM News. So Flat White Desk was designed to bring together people in need of very short-term space with property owners with similarly shortterm vacancies, including cafes prepared to allocate space for co-working. “It helps cafes prepared to offer quality service and, importantly, helps them to monetise it,” Chimwa said. The Hackathon saw the development of Flat White Desk but the app is being refined, particularly the payment system. Skvarek is also in Cannes discussing RealPad, a tried-and-tested tool used by 40 real estate developers across 10 European countries.

Occitania Tower project, Toulouse

ANIEL Libeskind, in partnership with Kardham Cardete Huet, was unveiled yesterday at MIPIM as the chosen architect for the Tri Postal site in the centre of Toulouse. Compagnie de Phalsbourg has been selected as the development partner of the scheme’s promoters, SNCF Immobilier, Toulouse Metropole and Europolia. Immediately next to Matabiau train station, the 150-metre Occitania Tower project provides 30,000 sq m of mixed-use space. The 40-storey scheme will include 11,000 sq m of offices, 100-120 apartments, a panoramic duplex restaurant-bar and a Hilton hotel. SNCF facilities and 2,000 sq m of retail will occupy the ground level. Jean-Luc Moudenc, mayor of Toulouse, said: “With this project, Toulouse will have an architectural signature worthy of its ambitions as a European capital.” Daniel Libeskind and Khar-

Reed MIDEM and MetaProp NYC have launched the industrywide annual MIPIM PropTech Summit and MIPIM Startup Competition which take place in New York City on October 11. The summit will be the premier event of the 2017 New York City Real Estate Tech Week, a weeklong programme focusing on innovative and disruptive real estate technology. RealPad managing director Marian Skvarek (left) and Future PropTech’s Gary Chimwa

Business on the beach

dam Cardete Huet’s design for the tower takes a sculpted form, made of ribbons of glazing interspersed with vertical gardens created by landscape architect Nicolas Gilsoul. The green facades will form a counterpoint to the Canal du Midi which passes the site. Benoit Quignon, general manager of SNCF Immobilier said the scheme epitomised a new approach by the company, the property arm of France’s stateowned railway, which will see it form partnerships with publicand private-sector bodies in large regional metropolises. According to Compagnie de Phalsbourg president Philippe Journo, Occitania Tower represents a potential investment of €130m and the provisional delivery date is 2021/2022. Journo said the scheme will be the company’s first in the southwest, and its first high-rise project in a large French metropolis.

World chess champion Magnus Carlsen

Lunch on the side

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NEWS

UK minister calls on investors to help end chronic housing shortage

F ICE’s Michele Scannavini

ITALY IS BACK IN FASHION ITALY is back and ready to welcome developers and investors, the president of the Italian trade agency has said. “GDP growth is accelerating, unemployment is down and consumer confidence is up,” said Michele Scannavini, the new head of ICE, the agency that promotes Italian enterprises abroad. “Italy is one of the few countries in the world where exports are growing faster than GDP. That confirms that exports are still the engine of Italy’s economy, underlining the desirability of the Made In Italy brand.” Offering both development opportunities for real estate companies and approved projects for investors, Italy is showcasing some of its most appealing schemes in the Italian Pavilion this week. “Regions including Lombardy, Piedmont, Trentino, Tuscany and Apulia are exhibiting, alongside cities such as Milan, Florence and Turin,” Scannavini said. “We want to present Italy as a network of opportunity, connected and yet totally diverse.” He added that international interest in Italian real estate is “incredibly high” at the moment: “Institutional investment in property grew by 12% in 2016, and we’re expecting another bumper year.”

OREIGN investors have an important role to play in the development of the UK residential market, the British minister responsible for housing has said. Speaking to MIPIM News yesterday, Gavin Barwell, minister of state for housing, planning and London, said that a chronic under-supply in UK housing represents a significant opportunity for overseas institutions and funds seeking to invest in Britain. “There’s huge potential to bring in investment from outside the UK,” he added. “There is real demand for housing all over the country and, for institutions, there are investment opportunities. There’s a clear commitment from government, backed up by increased spending. We have a clear ambition to increase the supply.” Last month, the UK government

issued a white paper laying out its strategy to redress the deficit in housebuilding. The report included sweeping proposals touching on every aspect of the housebuilding process, from local-authority planning regulations to the lack of available land and an historic under-investment from the private sector. Commenting on the report, Barwell said that the government was being frank that there was “no silver bullet” to solve the housing undersupply problem — and no single cause to it. “Governments of all colours over the past 30 years have not done enough,” he added. “There are different parts of the country where we haven’t been releasing enough land. There’s also an issue over the speed of construction. We want to cut the gap between getting planning permission and getting houses built.”

DIAMOND Realty Management (DREAM) held its annual Japan Breakfast at the Majestic Hotel yesterday, welcoming more than 140 guests. This year’s breakfast, which focused on cross-border transactions trends both in and out of Japan, kicked off with an overview of commercial real estate patterns across Asia and Japan presented by ANREV (Asian Association for Investors in Non-listed Real Estate Vehicles). This prompted a panel debate, moderated by

UK housing minister Gavin Barwell: “no silver bullet”

Barwell is in Cannes as part of a major UK delegation of publicand private-sector stakeholders. It is the first time that the UK government has been represented at MIPIM.

Masa Fujita of DREAM, featuring speakers from Union Investment Real Estate, AXA Investment Managers, SC Capital Partners and Mitsubishi Corporation. Takashi Tsuji, president and CEO of DREAM, closed the event with some advice for investors looking to source Japanese real estate assets. “The role of local asset managers with a strong track record is crucial to successfully pursuing real estate transactions in the Japanese market,” he said.

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NEWS Top three newcomers crowned at MIPIM Startup Competition

The class of 2017: the winners and runners-up of the second MIPIM Startup Competition on stage yesterday in the Grand Auditorium

HREE startups were honoured yesterday as 2017’s most innovative young companies within the global real estate industry. The MIPIM Startup Competition, now in its second year, invited entrants in three categories: smart buildings, smart cities and transactions. Nine companies out of around 150 contenders made in through to the finals for the title of most promising startup in their sector. In the smart-cities category, the competition was won by New York’s Envelope, which beat Taiwanese change-processing expert

Addweup and London-based redundant parking-space provider ParkBee to the top prize. Envelope’s 3D urban map-based software helps real estate professionals visualise, analyse and run scenarios on development potential under zoning constraints. The company is led by CEO Cindy McLaughlin, who said that the new model allows what was previously a fiveto 10-hour manual process to be completed in minutes. In the transaction category, the winner was revealed as Storefront, which beat home-rental provider WeDeal and commercial real estate loan platform

StackSource to the top prize. The London-based company, which was represented onstage by director Matthew Greenwell, claims to be the world’s largest specialist in short-term retail for pop-up stores, shopping malls and showrooms. Storefront has seven international offices spread across London, New York, Paris and Hong Kong, and its online platform powers more than 10,000 retail listings, which represent some 30 million sq ft (2.78 million sq m) of space. Storefront has found space for the likes of Google, Samsung, Adidas and L’Oreal since launching in 2014. In the smart-buildings category,

the honours went to HVAC (heating, ventilation and air-conditioning) software-management provider Ravti, which fought off stiff competition from communication and data platform Chainels and communication app Cunio. The US-based company, represented on stage by co-founder Alex Rangel, produces software that tracks, manages and procures HVAC for CRE owners and operators. The MIPIM Startup Competition 2017 was organised by global real estate tech partner MetaProp NYC and sponsored by BNP Paribas.

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How to use social media to succeed on the property market?

An office project featured on Facebook? Boring… or maybe not? Read more.

The labor market, particularly in the technology sector, is dominated by the so called Generation Y employees, commonly referred to as millenials. This is a generation of people born between 1987 and 1997, who put huge emphasis on the environment they work in. This has been noticed by corporations, which are adapting their offices to the needs of this young generation. Offices have started to offer space not only for work, but also for relaxation. Increasingly often executives get rid of their rooms, whereas offices are now more like cafes, with their style reminiscent of coworking spaces promoted by companies such as WeWork. A traditional office is obsolete now. Companies which want to take on the most talented employees, must offer them beautiful collaborative workspaces.

What can a developer do? How should a developer act in such a situation? What can a developer do to leverage these dynamic trends? Let’s start from the beginning. In 2006 Ghelamco Poland buys a post-industrial area located near to the center of Warsaw and starts to develop the most spectacular project in the company’s history. The result? After 10 years the Warsaw Spire complex is opened, comprising a 220-meter skyscraper and two smaller office buildings. It is stuffed with state-of-the-art technology and stands out with its modern architecture. At the foot of the building, a publicly available Plac Europejski (European Square) was set up, full of greenery, fountains and water streams and surrounded by cafes and restaurants. It is

complemented by Art Walk, a generally available, outdoor art gallery. It is millenials’ dream come true. “By commissioning Warsaw

Spire and Plac Europejski, we breathed a new life into the post-industrial part of Warsaw’s Wola, which is now considered the ultimate address for the tenants and also an attractive place for the local community,” says Jeroen van der Toolen, Managing Director, Ghelamco CEE.

Build a community Let’s answer a question, though: what does Facebook have to do with it? From the very start Ghelamco focused on active project communication in social media. Facebook profiles for Warsaw Spire and Plac Europejski were created. The first one already has more than 20 thousand active followers and the second one nearly 11 thousand. The skyscraper’s facade has a huge illumination with the “I love Warsaw” sign, which makes the investment one of Warsaw’s landmarks and is greatly appreciated by the residents. Leveraging social media and Plac Europejski’s assets, Ghelamco

has created an active community around the investment. The developer focused on fun and interaction in communicating with the fans. This enables the fanpages to go on and gain new fans. New campaigns strengthen the bond between residents and the investment. On Valentine’s Day, Warsaw Spire’s facade featured love confessions of Warsaw residents. The Facebook campaign attracted 2.5 thousand people and was broadly covered by both social and traditional media.

They want to work here The result? “One day a young IT specialist

called our office. He wanted to know whether the company which was recruiting him would have an office in Warsaw Spire. This was crucial for him to make the decision on choosing the employer,” says Jeroen van der Toolen. This is why today Warsaw Spire is 100 percent leased. The investment has attracted the biggest global corporations, including MasterCard, Samsung, BNP Paribas Securities Services, Adecco Poland, Benefit Systems, Bilfinger HSG Facility Management, Calypso, Compare King, Daftcode, Eleven Sports Network, Frontex, JLL, Centre for EU Transport Projects, and The Heart Warsaw. Today Warsaw Spire is the most well-known investment in Poland, whereas Plan Europejski has become a new business center of Warsaw.

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NEWS STUDENT VIEWS MIPIM has once again hosted a party of second year MBA students from the Graaskamp Center for Real Estate at the University of Wisconsin-Madison. They told MIPIM News of their first impressions of MIPIM and some of the key trends they had identified while touring the exhibition floor and conference sessions. • “I’m surprised how little Brexit seems to concern investors. I think people who had seen it as a potential arbitrage opportunity will have been disappointed. Oxford Properties and British Land’s sale of the Cheesegrater at a 3.5% cap rate shows how strong the market has remained.” • “Some financial services roles look likely to be dispersed from London to Dublin and Paris, but Germany seems less attractive because there is no one dominant centre.”

FIABCI and UN Habitat agree roll-out of city prosperity index

NTERNATIONAL real estate federation FIABCI is to collaborate with UN Habitat to extend a new city sustainability assessment method worldwide. The two organisations signed a letter of intent during MIPIM yesterday and FIABCI world president Kirkor Ajderhanyan told MIPIM News that the organisations already have agreement to work with 300 cities in Mexico to apply the new city prosperity index. Ajderhanyan said the index will measure economic, cultural, political and environmental sustainability and is based on software developed by FIABCI. The index helps provide qualitative feedback on the state of the city whereas the UN Habitat’s data is quantitative. “The critical point is that when you have independent measurement – FIABCI is non-governmental and non-profit-making – the partnership is able to measure the sustainability of cities by approaching the citizens and associations of architects. “They will be able to vote online

FIABCI’s Kirkor Ajderhanyan

to say what is going wrong in their cities. That information can be used to improve lifestyle and transportation, and to show the best way for cities to develop,” Ajderhanyan said. Other cities are talking about adopting the city prosperity index, including Kiev, New York, Milan and Miami. “We are hoping that it will spread across the world,” he said.

“I am very happy too that this key strategic worldwide project began at MIPIM. It shows that MIPIM is not only supporting investment but is very deeply involved in the process of sustainable development and to provide decent housing standards for humanity”. “If we are only thinking about money, tomorrow we will not have enough air to breathe,” Ajderhanyan said.

• “Tech companies are becoming big drivers of the office market, but their needs are very different to traditional occupiers. They expect more facilities in the buildings they occupy.” • “Occupiers are becoming more like customers than tenants as leases become more flexible.” • “The trend for residential to come back into the city centres in Europe is not something we’ve seen to the same extent in the US.” • “We’ve been surprised by the amount of spec office development in European cities.”

LAUNCHING Moscow’s mission to MIPIM 2017, the city’s deputy mayor for urban development and construction Marat Khusnullin (second left) was greeted by Reed MIDEM’s Ronan Vaspart, Filippo Rean and Fabrice Rosi.

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

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

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NEWS

Footballer turned developer defends Manchester scheme

F Knight Frank’s Chris Bell

GLOBALISATION STILL HIGH ON THE AGENDA THE CONTINUED rise of globalisation and crossborder investment is “inevitable” around the world, a senior real estate expert has said. Chris Bell, Knight Frank’s managing director of Europe, said that globalisation is “very much on the agenda” in real estate, despite a wave of nationalist populist politics in European countries and beyond. Speaking to MIPIM News, Bell said that statements by US president Donald Trump suggesting a cooler attitude towards globalisation were not born out by investors in his country: “It’s hard to preach isolationism when US capital is reaching all around the world. Globalisation will continue, despite political headwinds. Money has no boundaries.” Bell said Japan was showing huge potential for future outward investment, following in the footsteps of China, which has amassed huge assets in foreign markets. “Japan is thinking globally now,” he said. “They are definitely coming into the UK and Europe.” Knight Frank has brought a major contingent to MIPIM, where Bell said the company is committed to “reconnecting with existing clients” and making new connections within the international markets.

ORMER Manchester United and England footballer Gary Neville launched an impassioned and candid defence of the controversial St Michael’s twin-tower, mixed-use scheme in Manchester at MIPIM yesterday, pledging to make some design amendments but insisting that the “best of old and new” can live side by side. Neville spoke on the Manchester stand, where former United colleague and co-developer Ryan Giggs joined him to help promote the proposed scheme, which includes office space, upscale apartments, food and beverage, and what would be only Manchester’s second five-star hotel. While revitalisation of the citycentre site is widely backed, the scale and architecture of the proposed project have come in for fierce criticism, as have some of the street interconnections. In addressing these concerns, Neville said: “I don’t do PR, as anyone who has seen the PR for St Michael’s in the last six months will see.” Admitting that, in terms of street connections, the St Michael’s team had so far “failed miserably”, he said they would be

New ball game: Gary Neville (left) and Ryan Giggs are spearheading a major mixed-use scheme in Manchester

working on improving some of the configurations “in the next few weeks”. He reflected that he did not want to see this littleused thoroughfare “still empty of people six years from now, when we’ve built the scheme”. However, Neville pledged to retain the modern, futuristic design and said: “Myself and Ryan have been lucky enough to see the architecture and services available in some amazing cities during our times with Manchester United and that’s what we want to

BORDEAUX mayor and former prime minister of France Alain Juppe made a speech at MIPIM yesterday on the city’s potential. The inauguration of the TGV in July 2017 will bring Paris within two hours of Bordeaux. Already projects, such as the mixed-use Belvedere scheme next to Bordeaux’s future TGV station, are emerging to accommodate the expected surge in demand for housing and offices

bring to Manchester. I’m passionate about this scheme like you wouldn’t believe and, in bringing in foreign investment, we’ve had to ask our partners to believe not just in the city, but in the growth of the city.” He added that he and Giggs had spearheaded the approach taken for the scheme and were confident they could deliver “this level of product” for Manchester and regenerate the 1.5 ha site, which sits 100 metres from the city’s town hall.

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NEWS WORCS FLAGS UP AVAILABLE LAND WORLD Class Worcestershire is in Cannes to promote opportunities in the UK county of Worcestershire and Shawn Riley, inward investment manager for Wychavon District Council, part of the delegation, says that there is both land availability and demand from industrial occupiers. He said that investment is now needed to bring it all together. “We’re at MIPIM to fish in a bigger pond,” Riley said. The county, which is bisected by the M5 motorway linking Birmingham and Bristol, has other distinct advantages according to Riley. One of these is the status gained from having the highest housing growth rate in the country. “That has triggered a lot of growth and attracted potential commercial occupiers looking to expand,” Riley said.

Wychavon’s Shawn Riley

Public-private partnerships are now essential says BPF

OLLABOR A- BPF’s Melanie Leech TION between British property companies and local authorities is more vital than ever in light of Brexit, according to Melanie Leech, chief executive of the British Property Federation (BPF). Leech told MIPIM News the UK’s withdrawal from the European Union meant that close ties and joined-up thinking would be essential in a post-Brexit era. “I don’t think we spend enough time on collaboration. We have to think about how we can all work together; I think the public-private partnership has an important place in delivering infrastructure projects with confidence,” she said. sought-after place to invest. But Leech added that there are “The UK is a very attractive many reasons to be positive place for investors; it’s a very about the UK economy, and that open market with a clear legal in a post-Brexit environment the system and lots of opportunities. country will remain a highly There’s every opportunity to

SimpsonHaugh to unveil Manchester Central plan

BRITISH architectural practice SimpsonHaugh and Partners is celebrating its 30th anniversary with a raft of high-profile projects under development in London and Manchester. The practice will unveil its latest Manchester scheme today at MIPIM, an ambitious mixed-use project called Manchester Central. “This will exploit found space, sitting above the city, taking a different approach to brownfield reclamation,” co-founding partner Ian Simpson said.

Ian Simpson and Rachel Haugh

“We’ve just completed phase one of the Battersea Power Station

redevelopment in London, called Circus West, covering 90,000

make a success of Brexit.” Leech’s comments followed a MIPIM breakfast yesterday where Oxford Properties’ senior managing director Europe and BPF executive vice-president, Paul Brundage, outlined the federation’s recently published manifesto to the UK government. It must work in partnership; a stable and fair regulatory environment is required, it must continue to invest in infrastructure, it must focus on skills which is particularly challenging given the position on immigration, and there needs to be more focus on housing, not just for the housing industry’s sake but to provide accommodation for skilled workers. Brundage said the outcome of the Brexit negotiations would be critical to property, adding: “It is really important that we all get in the game.” sq m of built area,” co-founding partner Rachel Haugh told MIPIM News. “Comprising 753 apartments above a platform of retail and restaurant units, it’s the first piece in the puzzle for this iconic urban transformation.” SimpsonHaugh has also designed two other stand-out residential schemes in the British capital, One Blackfriars and Dollar Bay. The Blackfriars project – a sculptural glass tower with 273 apartments – has already been dubbed ‘the Vase’ by the media for its angular, crystalline appearance. Dollar Bay, on the Isle of Dogs, rather aspires to blend in. “Its facade picks up the ripple motif of the river, putting the scheme in harmony with its surroundings,” Simpson said. “We wanted to enhance the skyline, rather than detract from it.”

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mipim

NEWS ALTUS STRESSES ROLE OF DATA THE REAL estate industry needs to better embrace data and analytics if it is to realise the opportunities it offers, Robert Courteau, CEO of Altus Group, told MIPIM News. “We see that the leading players are using data in a very different way to get better performance and to better serve their deals and get the best out of their portfolios,” he said. “We are seeing data is a differentiator and the largest and most strategic asset managers are now starting to have people on their staff dedicated to data. We are seeing that the investors want data to evaluate their asset managers,” he said. Although Altus Group has a strong position in North America and the UK the company has also just opened in Luxembourg as part of a wider European push. “As we go into continental Europe we see people are running large asset portfolios on Excel and so we see this market needing our tools. That’s another reason why we are at MIPIM as this is the centre of gravity of Europe,” he said.

Altus Group’s CEO Robert Courteau

European investment exceeds UK as M&G looks for growth

HE UK’s largest fund manager M&G Real Estate invested more in continental Europe than in Britain last year for the first time, with chief investment officer Tony Brown expecting 2017 to follow the same theme. Brown said that the company had formed a strong platform across sectors and markets in Europe and that the business is at MIPIM seeking further potential acquisitions, especially given the “high level of competition” for assets. M&G Real Estate made its largest investment in Stockholm, where it acquired an office scheme for €220m, and Brown said that the company “remains very keen on Stockholm, we like the investment story there”. M&G Real Estate has also acquired logistics sites in Poland, most of which service the German e-commerce consumer market. He pointed out that Polish schemes provided higher yields than acquiring in Germany, yet

M&G Real Estate’s Tony Brown

effectively serviced that market, making them good value given the well-established road links to Germany and a plentiful workforce in Poland. Brown said the company would continue to invest in mainstream retail too, targeting prime destinations in cities with wealthy domestic catchments but also attractive to international visitors, citing acquisitions in Milan and Copenhagen as examples. “We are looking to do more in

Copenhagen, where we think there are good prospects for increasing rents,” he said. In the offices sector, M&G Real Estate has concentrated on CBD locations in cities including Madrid, Barcelona, Munich and Frankfurt. “Our focus is on offices perhaps not quite at grade A but in very good locations, appealing to occupiers that are looking for slightly cheaper accommodation but where they can easily attract a good workforce.”

Scandi cities bidding for traffic-free future SCANDINAVIA is moving towards achieving car-free cities but their motives for doing so are subtly different, as the cities of Oslo and Copenhagen revealed at a MIPIM presentation yesterday. Hanna Marcussen vice-mayor for urban development, City of Oslo explained that climate change targets and air pollution are two of the main drivers for attempting to free the Norwegian capital from cars. But she added, “cars also take up a lot of space and space is a limited resource”. A survey carried out in 2014 revealed strong potential to increase life in parts of the city centre by giving preference to pedestrians and bicycles. “The purpose is to facilitate better urban development,” she said. The city has already trialled the

car-free concept by eliminating motor traffic from a number of streets and one plaza. “A good dialogue is necessary to reduce traffic, create a network of pedestrianised streets and a centre without private cars,” Marcussen added. In Denmark there are restrictions on what cities are allowed to do, explained Morten Kabell, mayor of technical and environmental administration, City of Copenhagen. He said that there are two main reasons for eliminating cars from the city’s centre, or at least severely reducing traffic: in another eight years Copenhagen will be the first carbon-free city in the world and that cannot be achieved without the removal of carbon emissions even though

Hanna Marcussen, vice-mayor for urban development, City of Oslo

cars only represent 8%-10% of emissions. He agreed that space is a scarce resource and “we have to have the most space-efficient solutions”.

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NEWS HEALTHCARE REAL ESTATE GOES PAN-EUROPEAN TRANSACTIONS in the European healthcare real estate sector increased 10% to a record €6.7bn in 2016, according to annual research published yesterday at MIPIM by Your Care Consult. Company partner Stephane Pichon told MIPIM News: “The market doubled in Germany, and hit record levels in France.” While the outlook for 2017 is a drop to €5bn, the future trend is towards pan-European investors and healthcare real estate operators, Pichon said. “Belgium and the Netherlands are beginning to ceiling out in their countries and are ready to move into healthcare real estate in others. That is likely to happen with other countries.” Pichon added: “Healthcare is likely to become a sector where its real estate is fuelled by a pan-European acquisition strategy. It’s a relatively new asset sector and is likely to mature according to the trans-border pan-European model as established and traditional sectors have done.” The report covers transactions in eight countries: France, Germany, the UK, Belgium, the Netherlands, Italy, Spain and Portugal.

GREEN TOWERS’ NATURAL HIGH GREEN Towers is showcasing its residential development prototype at MIPIM, the first PassivHaus Plus- achieving concept, a standard relating to how much energy is consumed or generated. “This is the first one to reach this standard with the glass facade harvesting more solar energy that it expels,” said Roland Weber, CEO at Green Towers. His Green Tower Frankfurt high-rise design prototype is sustainable and features vertical greenery as well an 80% all-glass facade.

Cannes veteran Kohn says MIPIM is all about forging relationships

UGENE Kohn, chairman of international a r c h it e c t s p r a c t i c e Kohn Pedersen Fox, is in Cannes attending his 27th MIPIM. “My first time was the second MIPIM in 1991. I’ve been every year since. I’ve seen the market grow, develop, intensify and become more relevant over the years.” Kohn says the key thing is not just the business environment that MIPIM creates but “the friendships it generates too”. It’s very good, he said, “to be able to forge relationships with people. MIPIM facilitates that. I’ve had some memorable times, meeting new people, and meeting old friends.” “MIPIM has the benefit of widening your horizons. Every architect thinks they know their backyard pretty well,” he said. “But not many will have a good grasp of ideas and themes in oth-

Eugene Kohn: “MIPIM has the benefit of widening your horizons”

er parts of the world. MIPIM did that for me.” The biggest change in the philosophy of design in his 27 years visiting MIPIM relates to how office space has moved from the “individual to the collaborative,” he said. “In fact office space now is designed to be both individual and collaborative: the space func-

tions as both. At the same time.” And for office buildings themselves? “Office building design has moved from the rectilinear to the sculptural,” Kohn said. “Around the time of my first visit to MIPIM offices were designed as objects in space. Now they are objects that create their own space.”

Matterport takes you on a virtual tour

TECHNOLOGY firm Matterport is at MIPIM this week showcasing its 3D property-viewing technology that was originally profiled in the Innovation Forum at MIPIM three years ago. James Morris-Manuel, EMEA director of Matterport, sold his Virtual Walkthrough company to Matterport in July last year and the company is now coming to the end of its integration within the bigger technology firm and aiming for wider international expansion. “This is our opportunity to tell the European market what we are up to,” he said. “Our 3D camera allows users to capture properties so that the end user can experience a property as if they are there on mobile, tablet or through virtual reality,” Morris-Manuel said. “For us MIPIM is about expand-

Matterport’s James Morris-Manuel

ing into Europe and also expanding our verticals as we are looking for opportunities in the commercial and AEC (architecture, engineering and construction) sectors,” he added. The technology has also been in-

tegrated into JLL’s NXT Office digital product. JLL France’s CEO Charles Boudet and Matterport’s Morris-Manuel, will take to the MIPIM stage at 18.00 today in the Innovation Forum to look to the role of technology in the future.

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NEWS ‘LET’S TALK ABOUT MENTAL HEALTH…’ MARC Preston is at MIPIM on a mission: to do something about the huge cost to the construction industry of mental-health issues. Construction seems unduly affected by such problems. Construction workers are six times more likely to die from suicide than from a serious accident. Preston himself is already doing something about it. After qualifying as a quantity surveyor, he requalified as a psychotherapist and counsellor. “It costs the construction industry around $300m year in lost working days due to problems associated with mental-health issues,” he said. “And there may be hidden costs and dangers to workmates and sites from the knock-on effects.” Preston said one of the main problems is getting site personnel to admit they are struggling: “It’s still a very macho environment, where people are self-reliant and won’t seek help. We need to change that.” The nature of construction sites means that heavy equipment, cranes and other plant may be operated by personnel suffering from mentalhealth issues, which represents an obvious danger to fellow workmates. Preston has set up a company, New Foundation Counselling, which offers help to construction workers. Better mental wellbeing not only has benefits for staff, but also improves productivity and staff retention, Preston pointed out. He added: “My message to MIPIM delegates is: let’s talk about it.”

German B cities collaborate to showcase opportunities

NVESTOR interest in German A cities is spilling over, supply is diminishing and prices are rising. Three local authorities representing German B cities are attempting to exploit this situation by collaborating in a joint stand at MIPIM. Hannover, Nuremberg and the Rhein-Neckar region, which represents Heidelberg, Mannheim and Ludwigshafen, among others, are in Cannes under the umbrella of the German Pavilion for Regions and Cities. “There is more demand for information on investment in Hannover, so it is a good time to be here to talk to investors,” said Hannover managing director of economic development Kay de Cassan. Urban renewal and the need to find alternative uses for redundant property is another common factor between the cities. Rhein-Neckar has a number of ex-military sites for re-use and, in Mannheim alone, more than 500 ha of converted floorspace will come on stream over the next few years, said Sabine Kapp, responsible for location marketing

Collaborative councils: Hannover’s Kay de Cassan, Nuremberg’s Michael Fraas and Metropolregion Rhein-Neckar’s Sabine Kapp

at Metropolregion Rhein-Neckar. Nuremberg has a 100 ha former railway freight yard that has been allocated for the development of private housing, high technology use and green space. The city has already successful re-developed on the site of a former AEG factory, where white goods were produced until 15 years ago, according to the city’s deputy may-

or of economic affairs Michael Fraas. “Conversion is a major issue,” de Cassan added. “Former industrial areas may have been refurbished but one of the key challenges is that they may have been re-used but not always in the best way. There is complex ownership and local authorities like us are in a position to help with site assembly.”

VITALI Klitschko (left), mayor of Ukraine capital Kiev, and Jacek Jaskowiak, mayor of the Polish city of Poznan, exchange views on the Kiev stand. Kiev is hosting the 2017 Eurovision Song Contest, an event where the slogan is ‘Celebrate diversity’

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PROGRAMME OF CONFERENCES & EVENTS

Thursday 16 March 8.30 9.30

USA Breakfast Sponsor: ABM

1h30

Salon Croisette (Palais 4)

Cities against climate change: what actionable solutions?

14.30 Sponsor: Construction 21

Co-organiser: Green Planet Architects

Why invest in Nordic RE?

Sponsor: Newsec Preceded by a breakfast at 8:30, Verriere Californie, Palais 5

Ruby room (Palais 5)

45 min

How to build the best quality housing 10.00 for the greatest number of people?

EUROPE Market Trends room 45 min (Palais 3)

10.00 How can smart mobility make cities even smarter?

45 min

Why Greater Copenhagen is the growing hotspot 10.00 within global logistics?

Sponsor: Greater Copenhagen - Followed by a networking lunch

11.00

1h30

TECH Innovation room (Palais -1)

New game, new rules, new asset classes:

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

Is Lisbon the next tech city investment hot-spot?

11.15 Co-organiser: Iberian Property

How to think different in RE?

What are the billion reasons to invest in Arctic Europe? 11.30 Why are smartest and cleanest solutions born in Helsinki? Sponsors: Arctic Europe, Smart’n’Clean, Helsinki Metropolitan

Why is Spain the new place to invest?

12.30 Sponsors: Gesvalt, Roca Junyent

Followed by the Spanish wine, on Spanish Pavilion - Riviera 9

1h30

30 min

TECH Innovation room (Palais -1)

How do you solve the information deficit

How can RE contribute to the building of inclusive cities 14.00 and create new sources of growth? 45 min Where are the invesment opportunities in Megacities 14.00 in South America?

SOCIETAL DEMAND New Deal room (Palais 3)

AMERICAS Market Trends room 45 min (Palais 3)

How do new consumer behaviours reshape

14.00 last mile delivery?

Ruby room (Palais 5)

Majestic Hotel

14.00 in the constantly changing CRE market? Sponsor: Altus Group

NEW DEAL (RE) Creation room (Palais 3)

EUROPE Market Trends room 1h (Palais 3)

Sponsor: Brazilian Ministry of Tourism

13.00

BUSINESS New Deal room (Palais 3)

EUROPE Market Trends room 45 min (Palais 3)

11.15 Creative session by Soon Soon Soon

Limited seats – Pre-booking requested

TECH Innovation room (Palais -1)

Salon Croisette (Palais 4)

How to empower cities and RE players to improve

15.00

The success of innovative urban projects depends on agreement Sponsor: Linkcity

30 min

AFRICA Market Trends room (Palais 3)

45 min

REGULATION New Deal room (Palais 3)

45 min

HOTEL & TOURISM Asset Class room (Palais -1)

NEW DEAL (RE) Creation room (Palais 3)

How to diversify institutional investors’ investment

15.15 portfolios by investing in agricultural real estate?

How can standards agencies and regulatory

15.15 authorities help the RE sector to create growth? Co-organiser: LMA

Where are the new gold nuggets

15.15 of the tourism industry?

How to think different in RE?

15.15 Creative session by Soon Soon Soon

Limited seats – Pre-booking requested

Milano building the future. How will Milano become

Airbus, Siemens Mobility, Sigfox, Hyperloop TT

11.00 have chosen Toulouse. How about you?

Sponsor: Emirates REIT

LOGISTICS Asset Class room (Palais -1)

NEW DEAL Grand Auditorium (Palais 1)

A New Deal for Real Estate

Sponsor: Toulouse Metropole

TECH Innovation room (Palais -1)

Verrière Grand Auditorium (Palais 1)

15.00 quality of life and work? Sponsor: ENGIE

BUSINESS New Deal room (Palais 3)

New vs. traditional players: 10.00 what are the new alliances to create?

45 min

LOGISTICS Asset Class room (Palais -1)

15.30 the leading actor in the future of Europe?

1h30

45 min

GOVERNANCE New Deal room (Palais 3)

45 min

AFRICA Market Trends room (Palais 3)

45 min

HOTEL & TOURISM Asset Class room (Palais -1)

How can public-private cooperation increase the value

16.30 and attractiveness of cities?

How to forecast investment in the fast-growing

16.30 Sub-Saharan region? Sponsor: Rendeavour

16.30 How can investing in hotels create good returns?

Ruby room, (Palais 5)

16.30

LOGISTICS Networking zone H&T (Palais -1)

17.00 USA cocktail hour

NAR Pavilion, USA zone

How to combine zenithal light and global performances 30 min

TECH Innovation room (Palais -1)

17.45 How do new economic models shake the RE market? 45 min

ECONOMY New Deal room (Palais 3)

17.15 in a major rebuilding? Sponsor: Velux

45 min

AFRICA Market Trends room (Palais 3)

45 min

HOTEL & TOURISM Asset Class room (Palais -1)

30 min

TECH Innovation room (Palais -1)

How do new infrastructures favour the development

17.45 of coastal North African cities?

How to rethink hotels facing millenials’

17.45 expectations?

How can the property industry move forward

18.00 in a tech savvy environment? Sponsor: Matterport

18.30

Sponsors: Immobilien Zeitung, Threestones Capital

Grand Auditorium (Palais 1)

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

Partners’ sessions

news_thursday_friday.indd.indd 1

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

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

NEW DEAL New Deal room (Palais 3)

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

09/03/2017 11:23

258_RM MIPIM PROPTECH_N1_PIM

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

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Partners 2016

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Schroders considers next move for Croydon project

Stanhope’s Jason Margrave

Schroder UK Real Estate’s James Lass

Grafton Advisors’ Ker Gilchrist

Schroders’ Nick Montgomery

ISCUSSIONS have b e g u n b e t we e n Schroders, partners Stanhope and occupiers for the next phase of Ruskin Square in Croydon, one of the biggest mixed-use projects under way in the UK. The £500m (€574m) development will see the delivery of office, retail, restaurant and leisure as well as 650 homes. “We are looking at options for further phases and are in discussions with a number of potential occupiers which will inform our views of what we will deliver next in terms of offices,” said James Lass, fund manager for the Schroder UK Real Estate Fund. The duo is also looking at the next phase of residential to be delivered. “At the moment we are likely to focus on build-torent rather than build-to-sell because Croydon is a fantastic location for that sort of offer,” said Stanhope’s development director Jason Margrave. The first office building has already completed and let to HMRC, who will move staff in

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from July. The first phase of residential apartments has completed and Boxpark has also opened on site. The keen interest in Croydon is representative of the fact that the demand for assets in London, and its surrounding areas, remains strong as investors look to the capital for the long-term, according to Nick Montgomery, head of UK real estate investment for Schroders. “International institutional investors have been buying up units on the secondary market and of the £220m of trading done through our WELPUT real estate fund almost 95% has been post Brexit,” Montgomery said. “Following the view that we were about to fall off the edge of a cliff we have seen some resilience and a search for value and a real search for quality,” said Ker Gilchrist of Grafton Advisors, which advises on the WELPUT fund. “We have been surprised at a very resilient occupational demand and a steady flow of respected investors wanting to find home in London,” he said.

BECAUSE 4 new cultural institutions will open its gates in Városliget and 5 existing museums will be completely renovated…

...AND WE HAVE THE PRETTIEST VIOLET-DRESSED LADIES IN TOWN. www.ligetbudapest.hu 29

PROJECT London • Crossrail London’s €17bn Crossrail project will link suburbs to the east and west of London with a new high-capacity line travelling under the heart of the city. The 26 miles of tunnels are now complete and after a phased introduction a full service will be in operation by 2020.

Paris • Grand Paris Express Costed at €27bn this ambitious project will modernise the existing transport network and create a new driverless metro. A new ring route around Paris will be supplemented by new lines serving fast-growing suburbs while two existing metro lines will be extended. Construction began in 2015 and the entire project will be completed by 2030.

Barcelona Metro Line 9 Europe’s largest driverless underground service is being built in phases, some of which are already open, and will eventually stretch for 48 km with 54 stations and a projected cost of €6bn.

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POWER Amsterdam • Noord/Zuildlijn The first metro line to cross Amsterdam’s Ij river, unifying the city’s northern and southern districts, has been under construction since 2002. Completion is now planned for 2018 by which time costs are expected to have reached €3bn.

Major infrastructure projects across Europe are improving communications and opening up new city districts for development

Istanbul’s new airport The largest airport in the world, with a projected annual capacity of 150 million passengers, is now 40% complete and due to receive its first arrivals at the end of 2017. On completion by 2030 the airport will have six runways and four terminals linked to the city centre by a Metro extension. Total cost is estimated at €7bn.

Stuttgart 21 Due to complete in 2021, the renewal of Stuttgart’s transit system combines underground and surface lines to improve links to the airport and trade-fair site. Design work began in 1994, and the project is costed at €6.5bn

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Shaping and connecting UK property

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

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NEWS Growing Chinese middle class boosts outward investment

HINA’s impact on the rest of the world, whether it be through capital investment in real estate or consumer spending from the burgeoning middle classes, is only at its beginning according to keynote speaker Alex Gong, CEO of Fosun Property. Speaking at a packed conference session yesterday morning, Gong said that around 300 million Chinese people would join the ranks of the middle class within the next few years and would spend more on consumer Fosun Property’s Alex Gong goods, travel and opt for higher levels of hospitality. As a result, projects outside China are being domestic online specialists such developed specifically with the as Alibaba are acquiring logistics Chinese market in mind. centres around the world to com- “The Chinese government has, pete with231_BNP_N1N2N3_PIM Amazon and real estate understandably, put some regu-

lations in place to try and slow down the capital outflow from China,” he said. “But I don’t believe this will stop it happening as many Chinese companies al-

ready have the offshore means to raise capital globally.” Gong said that Fosun Group had focused its investment on international gateway cities as it believed that the “innovation and dynamics” of Beijing and Shanghai, for example, did not yet match the cities of London, Paris, Tokyo and New York. “We like the diversification that this brings us,” he said. “It also provides us with a stronger performance and means that we have properties at different economic cycles.” Gong said that another motivation is the opportunity to take resorts such as a Japanese ski resort on Hokkaido and promote them to Chinese visitors. Since acquiring it in 2015, Fosun Group has lifted Chinese visitors from 8% of the total to nearer 50%. “There is still a wall of capital in China and in the coming years it will reshape sectors around the world such as logistics, hospitality, leisure and healthcare,” he said.

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

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

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NEWS Article 25 partners with MIPIM to build on charity programme

HE LARGEST architectural charity in the world, Article 25, is aiming to step up its schedule of good works as MIPIM’s new official charity partner. “Designing buildings and managing construction projects for some of the world’s most vulnerable communities, we’ve worked on 80 projects in 30 countries since 2006, impacting the lives of 1 million people worldwide,” operations manager Jennie Milward said. “We work across the three main areas of education, disaster risk reduction and health,” she said. “Our work ranges from small interventions on buildings to prevent disease, such as adding screens to keep mosquitos out, or designing and building projects that have been identified as

Article 25’s Jennie Milward

essential by NGOs.” In Burkina Faso Article 25 designed and constructed the Gourcy School that now provides 1,000 children with formal education. “The kitchen feeds over 200 of

the most vulnerable students, who might not otherwise eat, and its facilities encourage girls to continue in secondary education, thanks to better sanitation and access to toilets,” Milward said.

De l’agriculture urbaine sur vos opérations !

“We also build earthquake-resilient structures in zones of risk. In Myanmar, we’re improving the stability of an existing hospital as the country is almost certain to be hit by a quake in the next few years. We are redesigning a leprosy hospital in Nepal for the Leprosy Mission England and Wales, so it can be a model of good practice for 21st century care and disability inclusion.” Article 25 has attracted some important support, with star architect Lord Norman Foster the charity’s patron, and key corporate sponsors on board from the world of design and construction. “While at MIPIM, I’m looking to connect with companies and people that want to help. We rely heavily on professional partners with engineering skills when we design buildings, most of whom collaborate pro bono, and we’re also looking for corporate sponsors to support the work we do,” Milward said. www.article-25.orgAdvertorial

UrbAgri réalise le diagnostic socioéconomique, l’étude de marché, le montage financier, juridique et social des projets et trouve les débouchés de commercialisation en circuit court de la production.

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

UrbAgri peut accompagner sur le court ou moyen terme l’activité.

A year-round networking tool

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

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

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

MAKING IT THROUGH YOUR 1ST MIPIM

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

EVENTS SCHEDULE (14-15-16 MARCH) 09.00

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

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

AND ALSO

HAPPY HOURS OPEN TO ALL!

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

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NEWS Liverpool projects will form gateway to the north west

HE FOUR-million-sq-ft (372,000 sq m) Liverpool Waters and Wirral Waters projects were showcased at MIPIM yesterday, as developer Peel outlined plans for the regeneration gateway to the north west of England. Peel revealed the first glimpse of the new Central Docks neighbourhood, as well as releasing eight new plots for investor de- Peel’s Lindsey Ashworth velopment. The Central Docks neighbour- The £5bn (€5.7bn) Liverpool hood will form part of this devel- Waters project is set to transform opment scheme on Liverpool’s 150 acres of historic docklands, waterfront, with places to live, the biggest single regeneration work and spend leisure time in, project in the history of Liverpool and therefore encouraging a new and one of the biggest of its kind community. anywhere in the world. This CenThis new neighbourhood is being tral Docks neighbourhood will designed to bring life back to the include over two million sq ft of former docklands site, which has mixed use floorspace including been dormant for many years. 750,000 sq ft of offices, plus over 195v2_METROPOLEAIX_N2_N3_PIM

1,000 new waterfront apartments in buildings up to 44 storeys high. Lindsey Ashworth, director of development of Liverpool Waters, said: “Liverpool Waters and Wirral Waters are in effect one project divided by a river. It’s been our vision to turn this derelict and under-used regeneration site into prime waterfront.” Pointing out that the waterways are not deep enough for modernday container ships, he said: “We want these projects to be a combined visual gateway into the north west, with buildings that make this an awesome and powerful symbol of prosperity.” He added: “We’re delighted that the UK government has created a super-region going across from Liverpool and Manchester to Hull and Leeds, and we fully endorse the Northern Powerhouse.”

CHINA HOUSE PRICES RISE TO NEW HIGH

AVERAGE house prices rose at a three-year high level globally in 2016, new research reveals. Figures published by Knight Frank in its Global House Price Index reveal an overall average increase of 6% in 2016, compared with a 4.1% rise in the previous year. Iceland recorded the single highest growth rate of any country, with 14.7% year-on-year increase, while Turkey and Sweden, which had both previously topped the ranking, saw a decline in their growth rate. China, which is now recording an average annual house price increase of 10.8% annually, surged ahead in the index, leaping from 43rd in 2015 to 7th last year.

PROGRAMME OF CONFERENCES

INNOVATION ROOM THURSDAY 16 MARCH

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

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

10:00 – 10:45 How can smart mobility make cities even smarter? 11:00 – 13:00 Airbus, Siemens Mobility, Sigfox, HyperloopTT have chosen Toulouse. How about you? Sponsor: Toulouse Metropole 14:00 – 14:30 How do you solve the information deficit in the constantly changing CRE market? Sponsor: Altus Group 15:00 – 17:00 How to empower cities and real estate players to improve quality of life and work? Sponsor: ENGIE 17:15 – 17:45 How to combine zenithal light and global performances in a major rebuilding? Sponsor: Velux 18:00 – 18:30 How can the property industry move forward in a tech savvy environment? Sponsor: Matterport

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NEWS

Paris-Saclay district reborn as research and tech hub

ROM one of France’s in- 2024, the Grand Paris Express dustrial heartlands to a metro will join the zone to the progressive high-tech hot- city’s main transportation hubs, spot, Paris-Saclay is rein- the TGV high-speed train and venting itself. Paris Orly Airport.” And thanks to an unrivalled Developing in two clusters, the concentration of internationally Paris-Saclay Urban Campus asrenowned higher education and pires to become an innovation research institutes, laboratories district, “comparable to Silicon and technology companies, this Valley, with homes and services”, district to the south west of Paris Caro said. “We’re now selling is attracting international develop- more than 100,000 sq m of land ers keen to get in on the act. to private developers, and encour“The area was traditionally home aging residential schemes as well to automotive factories and higher as offices and retail projects. By education institutions, so the gov- 2025, after the metro arrives, there ernment has capitalised on that will be 60,000 people working in fact to create a cluster of research this district, and about 1,500 livand development facilities, as well ing here.” as expanding the University of The other principal cluster, the Paris-Saclay,” said Franck Caro, Versailles Satory District, is builddeputy director of the Paris-Sa- ing on its history as a location for clay development “By car factories to become a district 259_RMauthority. AWARDS_N1_PIM

Paris-Saclay’s Franck Caro

for industrial innovation. “In the short term, access to the area will be improved by better connections to the Versailles-Chantiers station, paving the way for a high-quality urban development, mixing business, housing and public services and amenities,” Caro said. “It’s going to be home to major publicand private-sector players from the automotive, low carbon and innovative transport sector.”

HB REAVIS PLANS ON SHOW

DEVELOPER HB Reavis is in Cannes to present its latest developments. Warsaw’s Varso Place is a 140,000 sq m mixed-use scheme comprising a 53-storey office tower and two mid-rise buildings. Twin City is being developed in phases to provide a modern business district in Bratislava city centre. The initial stage comprises three buildings with about 65,000 sq m of offices, shops and services. Twin City Tower will be a 24-storey, copper-clad tower to reflect the area’s industrial heritage. The company has also begun construction of Agora, Budapest, a mixed-use city-centre complex comprising 136,000 sq m of office and retail space. The first two phases should be complete by the end of 2018.

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NEWS London and Germany come out top in CBRE’s investor survey

O N D O N h a s b e e n results for some of the gateway ranked as the most at- cities in Europe, with Hamburg, tractive European city Milan and Munich dropping out for real estate invest- of the top 10, and Paris retainment for the sixth con- ing a top-five position as one of secutive year, according to Europe’s most attractive cities. CBRE’s annual Global Investor Meanwhile, Oslo and Stockholm Intentions Survey. were prominent new entries in the Published at MIPIM yester- top-10 most attractive investment day, the 2017 survey says 17% cities, reaffirming the strong inof respondents cited London as vestor interest in the Nordics. their preferred destination for Germany retained the top spot real estate investment, despite as the most attractive country for the economic uncertainty sur- real estate investment in EMEA, rounding Brexit. Berlin jumped preferred by 22% of respondents to second place in 2017, from in the CBRE survey. The UK fourth in 2016. (20%) was the second most popu“Availability of product and the lar country. pricing of assets were consid- “Both Germany and the UK ered the greatest obstacles facing have increased in popularity investors this year,” said Nick from the previous year, up from Axford, CBRE’s head of Global 17% and 15% respectively in Research.244_RM This is refl ected in the 2016. Investors value their relaSO ME_N1_PIM

tively high liquidity and transparency,” Axford said Investors also show a greater desire to acquire property than dispose of it. According to the survey, 85% of investors intended to spend at least as much in 2017 as in 2016, and 41% expected to spend more. Investment style is also shifting. There is now a lower preference for core stock, with investors showing a greater propensity (41%) to invest in good secondary or value-add opportunities. Axford concluded: “While 2017 will be an eventful year, with several major elections in Europe, investors’ focus appears to be more concentrated on the economic climate rather than geo-political events. The most frequently cited risk for 2017 was faster than expected interest rate rises.”

The 10 most attractive cities for investment in EMEA 1 London 17% 2 Berlin 15.8% 3 Madrid 8.4% 4 Amsterdam 7.3% 5 Paris 5.4% 6 Warsaw 4.9% 7 Oslo 4.7% 8 Prague 3.0% 9 Stockholm 2.9% 2.6% 10 Frankfurt The 10 most attractive countries for investment in EMEA 1 Germany 22% 2 UK 20% 3 Nordics 10% 4 CEE 10% 5 Netherlands 9% 6 Spain 8% 7 Poland 6% 8 Western Europe 5% 9 France 5% 10 Italy 3%

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NEWS World’s biggest covered theme park is Russian dream come true

PBB SAYS 2017 FORECAST ‘FUNDAMENTALLY STABLE’

HE DREAM Island entertainment complex — to be completed in 2018 — is one of the star attractions at MIPIM this week. The $1.5bn project is featured on the stand of its Russian developer, Regions Group. Dream Island is centred on a 280,000 sq m all-season indoor theme park. Developed on a 100 ha site south of Moscow, on completion it will be the biggest indoor theme park in the world. “There will be 40 different rides for different age groups,” said Amiran Mutsoev, vice-president of Regions Group. “A city walk right across the park will feature dining, shopping and entertainment areas. There will also be a central square the size of one and a half football fields, with a glass dome roof and replicas of famous world landmarks underneath.” Dream Island also includes an upscale hotel, a multiplex cinema with 14 screens, cafes, restaurants, water features — includ-

Regions Group’s Amiran Mutsoev: “40 different rides for different age groups”

ing a 2 km-long embankment promenade — a yacht club and a sailing school for children. “Dream Island will be only a 10-minute drive from the Kremlin,” Mutsoev said. “And a new metro station, Tekhnopark, has already opened near the site.” Regions Group is the sole investor in Dream Island. “We have made all the necessary agreements with the world’s leading media companies — Soyuzmultifilm, Sony

Pictures, IMPS and Viacom — to use all their world-famous cartoon characters.” Mutsoev added. Mutsoev also expects the new mega-park to have a socially beneficial effect on the city of Moscow, providing employment, improving the urban environment, attracting investment, improving Muscovites’ quality of life, and boosting Moscow’s position in the world’s economic competitiveness leagues.

SFS targets Belgium and Luxembourg SFS GROUP is exhibiting at MIPIM for the second time as part of an expansion drive that will see the construction insurance specialist seek new clients in Belgium and Luxembourg, as well as its home market of France. “Although we have been active in France for 15 years, where we are a major player, we launched in Belgium two years ago and have had a strong response,” said Frederic Lamotte, SFS’s marketing director. “Insurance legislation is changing there at the moment and we’re meeting that change with new products for the Belgian market.” Acting as an intermediary for construction companies at every stage in the development cycle, SFS currently underwrites contractual risk in the pre-sale

SFS Group’s Frederic Lamotte (left), Mohamed Alouani and Antoine Guiguet

phase, as well as providing cover for planning permission, date of possession and practical completion. “We offer a complete range of options for property damage and liability, as well as financial guarantees,” Lamotte added.

“Exhibiting at MIPIM last year was a real success for us in terms of meeting with developers and discussing their needs, so we are happy to be able to do that again, and hope to expand our reach in Belgium and Luxembourg as well.”

pbb’s Thomas Kontgen

THE REAL estate market remains ripe for investment, according to Thomas Kontgen, deputy CEO, treasury and real estate finance, for pbb Deutsche Pfandbriefbank. He said his company had seen a very strong year in terms of real estate deals and was looking forward to the same in 2017. “We are proud of our track record in 2016 with regards to funding,” he added. “The markets we are active in — Germany, France, the UK and now the US — are liquid, transparent markets and the forecast fundamentally is a stable one. The interest for commercial real estate remains very high and we see a lot of equity in the market.” The bank re-entered the US last year. “The [US] pipeline is interesting and we would like to grow that in 2017,” Kontgen said. He added, however, that there is a lot of competition in the market, “as the interest in real estate is high and the interest in lending is also quite high”.

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NEWS The Glass Works project will drive Barnsley regeneration

ARNSLEY Metropolitan Borough Council and development partner Queensberry are together at MIPIM this week to promote their retail-led scheme, The Glass Works, and the additional investment opportunities it will bring for the Yorkshire town in the UK. The council last week committed to fund the remainder of the scheme with an additional £70m (€80.5m) investment on top of £50m it had already invested. It also confirmed Cineworld and Superbowl UK as its first anchor tenants. The town centre development is located on a 3.8 ha site around Cheapside that will provide 590,000 sq ft (54,813 sq m) of new shops, restaurants and leisure anchored by a new home for Barnsley’s historic market, a central library and new public realm. David Shepherd, service director for economic regeneration for

Queensberry’s Paul Sargent (centre) with Barnsley Metropolitan Borough Council’s David Shepherd (left) and Matt Gladstone

Barnsley Metropolitan Borough Council, said that the scheme was vital to the town. “It’s our number-one priority,” he said. He said the new scheme would help to close a £60m-a-year trading gap in Barnsley. “We won’t get that all back but know a significant amount will come back if we provide the right leisure and shopping facilities,” Shepherd said. “This is the cornerstone of the

commercial regeneration of the town and the region, establishing the fact that the town is open for business and creating an evening economy,” said Paul Sargent, chief executive and co-founder of Queensberry. Construction is ongoing on the first phase of the scheme but a planning application for phase two will be submitted shortly with the scheme scheduled for completion in May 2020.

Safe haven locations still appeal

INVESTORS from the major Asian and Asia Pacific markets have remained keen on London residential properties since the Brexit decision, although zone 1 properties have fallen out of favour because of punitive changes to stamp duty, the UK property tax, according to investment and development specialist Strawberry Star. The company helps high-networth individuals invest in new apartments in the Greater London area, whether acquired offplan or completed through land acquisition and development. The company handles all elements of the process, including letting and managing the properties if required. “There is still enormous interest in London as a safe haven location,” Strawberry Star manag-

ing director Nick Stonley said. “Some of our clients hold the developments for five years, others are looking for long-term investments producing strong incomes. It’s a complete mix.” Chairman Santhosh Gowda said that the company particularly targeted areas ripe for regeneration, including at the moment areas ex-

pected to benefit from the Crossrail infrastructure project across the UK capital. He added: “There is still a lot of interest from mainland China and the Middle East, especially Saudi Arabia. Singapore is also active, although investors there have become very focused on acquiring land for new developments.”

Strawberry Star’s Nick Stonley (left) and Santhosh Gowda

CBRE SAYS LONDON RESI MARKET STILL SHOWS STRENGTH THE LONDON residential market remains strong, despite various factors impacting upon it according to Mark Collins, executive director and chairman of residential central London at CBRE. “We still see so much activity in the London market. It’s still very vibrant and people want to work here and live here,” he said. But he admitted there had been influencing factors, such as stamp duty, the UK property tax, and post-Brexit currency changes. “If there was an opportunity to review stamp duty at some point that would be helpful but the dynamics of the market are still there and there is a still a shortage of housing — we just need stability,” Collins said. With the first of the Crossrail developments now just over a year away Collins said there was also more opportunity coming through. “Those infrastructure changes are having a significant impact,” he said.

UK BUILDING RULES NEED MODERNISING OUTDATED house building regulations could be holding back much-needed residential development in the UK. Commenting on a white paper released by the UK government last month, George Morgan, associate at Coffey Architects, said that regulations governing ‘overlooking’ between buildings risk inhibiting the amount of housing local authorities can build in urban areas because they permit only a certain density of development.

250_RM ASSET_N1_PIM

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

WEDNESDAY 15 MARCH

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

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

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

EXHIBITORS & PARTNERS

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

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

EXHIBITORS & PARTNERS

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

253_RM H&T_N3_PIM

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

THURSDAY 16 MARCH ALTERNATIVE LODGING: SERVICED APARTMENTS, STUDENT ACCOMMODATION, HOSTELS 10:30-10:45 Zoku â€“ Re-inventing the Aparthotel, Lisa Neubueser, Global Rollout, Zoku 10:45-11:00 More than student housing, Tom Van Damme Expansion Manager, Upgrade Estate NV

11:00-11:15 Ruby Lilly, Michael Struck, CEO & Founder, Ruby Hotels

11:30-12:00 Open panel discussion followed by meet and greet of presenters 17:30-18:30 PKF hotelexperts cocktail reception (PKF hotelexperts HOTEL & TOURISM Bar)

11:15-11:30 The Student Hotel: Complete Connected Community, Frank Uffen, Director of Partnerships, The Student Hotel

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

EXHIBITORS & PARTNERS

Hotel, Tourism and Leisure

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NEWS Swiss Life marks first decade with expansion into Europe

EAL estate investment manager Swiss Life Asset Managers Real Estate France broke through the €10bn managed-assets barrier at the end of 2016, and marks another perfect 10 in 2017 as it celebrates its first decade. “We’re now one of the leading real estate asset managers in France, but we’re also focused on our pan-European strategy,” said Fabrice Lombardo, the company’s head of real estate and portfolio management. “Belgium, Luxembourg, Spain, Portugal and Italy are all interesting territories for us, and we also purchased a German hotels portfolio in 2016.” While offices still dominate the portfolio, representing 54% of assets under management, there is increasing focus on alternative

asset types. Apart from hotels, student housing is a rising star, as are healthcare assets. According to Lombardi, the goal is satisfying investor demand. “We currently have 43 real estate funds and over 430 properties under management covering 3.1 million sq m, but we want to grow,” he said. “The message we’re promoting at this year’s MIPIM is that we’re a strong, pan-European player and we’re beginning to show it to our investors. “Ultimately, we believe that real estate is a matter of local knowledge and local teams,” he added. “Our goal is to develop further pan-European products and funds this year, relying on local asset management capabilities. “In 2017, we’ll be pursuing several club deal fund projects and

Swiss Life’s Fabrice Lombardo: local knowledge is key

developing our offer to private investors. We also plan to focus on sustainable developments, a key concern of most institutional investors,” Lombardo said.

Minister outlines Turkey’s potential TURKEY is not without its challenges, the MIPIM Time For Turkey conference heard, but notable advantages mean the country has a promising future. Turkey’s minister of environment and urbanisation, Mehmet Ozhaseki, told conference delegates: “We are a dynamic country, we have a young population and our location is an advantage.” But he said that, in terms of real estate, the country still has some way to go in its effort to replace earthquake-vulnerable older buildings with earthquake-resistant stock. Arda Ermut, president of the Investment Support and Promotion Agency, said that the fundamental stability of Turkey in the last 15 years together with the fact that it was largely untouched by the 2008 world financial crisis, has helped differentiate the country from the rest of the world.

Mehmet Ozhaseki: “We are a dynamic country”

Even following the coup attempt in July 2016, investment in real estate increased, “which shows the potential of Turkey”, he said. Avi Alkas chairman of JLL Tur-

key said that Turkey has the thirdfastest-growing economy among OECD countries, the eighth-largest economy in Europe and the 18th largest in the world.

POWERED BY PECHAKUCHA: DAY THREE TODAY sees the return of the PechaKucha 20 images x 20 seconds presentation format at MIPIM, during which representatives from across sectors — and the world — take to the stage to deliver their rapid powered messages to MIPIM delegates. The final two speakers are Meindert Jan Tjoeng and Kristina Verner. Meindert Jan Tjoeng is development director of citizenM Hotels, a new breed of hotel chain tailored to the changing demographics of travellers. Tjoeng, who has been active in the real estate and hotel industry for more than a decade, is currently focused on the rollout of citzenM Hotels, managing the acquisition of development sites and structuring operating agreements and real estate partnerships. The company now has a portfolio of 23 hotels in key metropolitan sites in the UK, Europe and Asia and will add seven more hotels in the coming months. The final PechaKucha speaker is Kristina Verner, vice-president, innovation, sustainability and prosperity for Waterfront Toronto in Canada, where her portfolio includes the digitalisation of the urban experience, sustainability and resiliency priorities. She is also known for her leadership in promoting collaborative developments. The event, which takes place at 11.00 today in the Grand Auditorium, is moderated by Peter Woodward of Quest Associates.

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mipim

NEWS Canadian pension funds look to partnerships for property returns

ANADIAN organisations are choosing a variety of models in order to invest in real estate domestically and abroad, while the country’s large pension holdings put it in a “special situation”, delegates at yesterday’s Canada conference were told, Carole Handfield from the pension fund Fonds Immobilier de Solidarite FTQ; Lisa Lafave from healthcare pension fund HOOPP (Healthcare of Ontario Pension Plan); and Armin Martens of Artis REIT, explained their operational strategies. Professor Kevin Gray from the Professor Kevin Gray (left); Fonds Immobilier de Solidarite FTW’s Carole Handfield; HOOPP’s Lisa Lafave; and Artis REIT’s Armin Martens at the Canada conference Yale School of Management sion fund invested mostly in Quemoderated the conference, Industry? bec. “We always invest in a prowhose topic was Canadian Handfield, vice-president of inject on a 50:50 joint venture basis, Funds: Which Approaches, What vestments at Fonds Immobilier and look to a 10-year exit from Strategies For The Real Estate de Soidarite FTQ, said her pen133_GROUPEMONITEUR_N3_PIM

the project,” she said. “We have 48 projects under construction, worth about C$2.7bn (€1.9bn). We have another 46 property assets under management.” Handfield stressed the need to focus part of the fund’s investment on social housing. “Currently we have about C$59m dedicated to affordable housing,” she said. Lafave said HOOPP has 309,000 members and “about C$70bn of real estate assets and 71% of that is in Canadian commercial property, with 47% of that in Ontario”. She suggested that Canada is in a “special situation” because there are generally very large pension plans in the country, with large company shareholders. Martens, of Artis REIT, said the company invested “60% in Canada and 40% in the US”. It has around C$6bn worth of assets spread around a total of 250 office, retail and industrial properties totalling 2.9 million sq m. The company’s revenue increased by 95% between 2011 and 2016, he said.

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IMMOBILIENMANAGER AWARD 2017

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NEWS Hub takes community approach for innovative housing schemes

ESIDENTIAL developer Hub is at MIPIM to spread its message to local authorities about what it claims is its innovative approach to housing development. Hub works closely with local communities and at Material Store, one of its key developments in London, the company has delivered nearly 2,000 weeks of local employment training. “It’s about engagement,” said Hub managing director Steve The Boiler House development in West London Sanham. “We spend a lot of time talking to local authorities and work with the local community units. The smallest is the Boiler to local people about what they to ensure all our schemes are House development in West Lonwant and what their hopes are. grounded in the community.” don, which comprises 54 units, It’s more than bricks and mortar, With a focus on mid-market 31 of which sold while still under it’s about making lasting change housing, the company currently construction. in the areas that we work in,” has seven projects across London Hub CEO Robert Sloss added: Sanham said. comprising 1,720 units, the larg- “The way we do things, and our He added: “We don’t just want est of which is in the south Lon- transparency, makes us a very to be building stuff, we want to don suburb of Croydon with 514 good partner.” 210_MANAGEMENTFORUM_N3_PIM

HOUNSLOW BOOSTS HOUSING STOCK THE LONDON Borough of Hounslow’s wholly owned subsidiary Lampton 360 has selected Willmott Partnership Homes as its partner to deliver 1,500 homes over six years with a development value of £90m (€103m). The two organisations will work together on a joint venture basis to bring forward 11 initial sites owned by the borough, creating 844 homes. The homes will be a mix of tenures with 40% affordable, 40% open market sale and 20% private rent. The first site targeted for development is Nantly House on Lampton Road which will create 74 new homes and commercial space in the borough. Hounslow’s overall target is to deliver 7,200 homes in the area by 2026.

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mipim

FEATURE CENTRAL AND EASTERN EUROPE

A growing momentum Commercial real estate investment across CEE grew by 11% to reach €11bn in 2016, outperforming the rest of Europe and demonstrating the region’s depth, diversity and growing momentum. And with further compression expected, CEE looks set to repeat its strong performance in 2017. David Sands reports

NE MAJOR reason why an increasing range of global investors are chasing commercial real estate in CEE’s main cities is the yield gap of up to 200 basis points between the region and western Europe. Anna Duchnowska is director of asset management and head of Polish operations at Invesco Real Estate, which recently paid €230.3m for Q22, a 53,000 sq m office tower in Warsaw CBD. “There is a glut of equity in the world searching for yield and Central Europe offers a significant premium compared to other markets,” she says.

There is a glut of equity in the world searching for yield and Central Europe offers a significant premium compared to other markets Anna Duchnowska

In terms of Q22, she adds: “We were able to secure this investment off-market, which is rare. The location, the quality of the building and the tenants appealed to our investors. We are interested in all commercial sectors. We have invested €1bn mainly in Poland and also in the Czech Republic.” Echo Investment was the vendor and the transaction reflected a yield of around 5.3%. Last year, the CEE market set new records for investment volumes. According to Piotr Mirowski, director of investment services, at Colliers International, €4.7bn changed hands in Poland and €3.8bn in Czech Republic. “These impressive numbers show that the market is getting deeper and the pool of investors is becoming more diversified,” Mirowski says. “We have seen not only asset deals, but plenty of corporate transactions too.” For industrial property, 2016 turned out to be record-breaking in terms of occupational demand. The volume of transactions was higher by over 600,000 sq m than in 2015 and, at the end of Q4

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FEATURE 2016, it reached a level of 3.32 million sq m. Last year there was some nervousness about the change of Polish government and the possibility of new taxes on property deals, generating some bad press in the western media. But Mirowski stresses that the final quarter of 2016 was a record one for deals closing in Poland, which totalled €2.1bn. He adds that the political situation is stabilising: “German chancellor Angela Merkel recently visited law and justice chairman Jaroslaw Kaczynski and was reassured,” he says. More proof of the increasing diversity of capital targeting CEE can be seen in the number of corporate platform deals. In Europe’s largest real estate deal last year, Singapore sovereign wealth fund GIC bought P3 Logistics Parks for €2.4bn from TPG Real Estate and Ivanhoe Cambridge. P3 has over €1bn of assets in the CEE region. Last year, South African property investors were the biggest buyers. Sean Doyle, head of capital markets, Poland, at CBRE, points out that, during the last 18 months, South African capital accounted for around 40% of the whole region’s investment volumes. The largest platform transaction was the agreement between Warsaw-based Echo Investment for South African-listed Redefine Properties to acquire 75% of the shares in Echo Polska Properties’ €1.2bn commercial portfolio. In addition, Malaysian capital entered the Warsaw office market with EPF, via Savills Investment Management (SIM), acquiring Gdanski Business Center (buildings A and B) from CEE developer HB Reavis for €186m. Adrian Karczewicz, head of divestments, CEE, at Skanska Commercial Development Europe, says: “New capital flow to CEE is a trend that is gaining more popularity among international investment funds from western Europe and the US, but also from South Africa, Asia — in particular Singapore, Malaysia and South Korea — and the Middle East.” Karczewica points to another factor contributing to investor interest: the recent geopolitical changes in the both the EU and US. “Brexit could be a great opportunity for the Polish and CEE office markets,” he says. “Modern business services-sector representatives see a chance for the migration of the ‘middle office’, with more advanced services transferring from London’s Square Mile to Poland. This means that international banks and business may consider CEE as an alternative to their UK-based branches. Such a situation may boost Poland’s office market even more.” This segment is very active in regional Polish cities

Brexit could be a great opportunity for the Polish and CEE office markets. International business may consider CEE as an alternative to their UK-based branches Adrian Karczewicz

such as Wroclaw, Krakow, Katowice, Lodz and Gdansk, which have a strong university-educated worker base. Companies including Credit Suisse and State Street are taking, or have taken, extra space for expansion in Poland. Further growth is expected in the Czech office market this year following the positive trends seen last year, when rents increased and investment yields hit a record low. The office market in both Prague and second city Brno continues to develop strongly on the back of the positive economic situation and higher demand for new premises from tenants. The Czech Republic remains a big draw for buyers. Investment volumes in the country’s real estate last year totalled more than €3.6bn — the highest ever level and a 36% increase compared to 2015. Significant transactions included Germany’s Deka Immobilien, which bought Prague office asset The Park for €360m from Starwood Capital Group; and Florentinum, which was bought by CEFC for €280m from Penta Investments. The deal marked the first major office acquisition by a Chinese investor in the Czech Republic. Following some years of stagnation, Hungary is again on buyers’ lists. Pawel Debowski, chairman of the European real estate group at law firm Dentons in Warsaw, says: “Office rents went to rock bottom and nothing was built. But we have done around five deals here last year — demand is growing and developers are starting to build again.” And he predicts: “By the end of this year and into next, there will be more core capital returning to invest in the country’s real estate.” JLL calculates that, by mid point last year, €830m had been invested in Hungarian property — a 66% increase over the same period in 2015 and the highest second half-year volume in Hungarian investment since 2007 (€1.3bn). Although investors think Romania is destined for prosperity, many are waiting until the time is right. Deutsche Asset Management’s head of European alternatives strategy, Matthias Naumann, says: “It’s a country of 20 million people and the political system is quite stable. Bucharest is not yet of interest to core investors, but first or second movers over the next few months could do well.” The largest transaction last year was the acquisition of 26.88% of Globalworth’s shares by South African group Growthpoint for €186m. Globalworth is the biggest office landlord in Romania. South Africa’s NEPI paid Argo €100m for Shopping City Sibiu. Meanwhile, bank finance is readily available to fund acquisitions in CEE. Martin Erbe, head of international real estate finance for northern and central Europe at German bank Helaba, highlights the increasing importance of local players. “For example, Poland’s PZU Group is buying stakes in local banks and really creating a big national insurance and banking champion,” he says. “Czech and Slovakian banks have been very active in the last couple of years. Domestic banks have a lot of local depositors, so they more or less have to lend — and can lend on cheap rates simply to get the money out. So I don’t see any issues for buyers or lenders for the future.”

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Nomina

ted for

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

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

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

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Siemens Headquarters designed by Henning Larsen Architects.

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06.03.17 13:51

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VERONA’S NEW ARENA IS FOR SHOPPING Adigeo in Verona makes a grand entrance: The new center in Italy will open in late March. Thanks to its great leasing success, ECE has already expanded Adigeo to include additional space. Both the center and the extension are 100% leased. Adigeo accommodates more than 130 shops on a leasable area of approx. 47,000 m². It will feature an exciting mix of Italian and international retailers, and high-quality dining options. www.ece.com

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Visit us at Stand

P-01.H51

23.02.17 10:36