Belgium Real Estate Showcase 2015 by Business Interactive Media (Bimedia)

Showcase Connect to pro-realestate.be for news, trends, network and real estate management best practices

MARKET TRENDS

vacancy, take-up, investment & letting trends

â&#x20AC;&#x2DC;De Blekkerijâ&#x20AC;&#x2122;, new living along the Lys River in Kortrijk

PROJECTS

town planning, offices, housing & retail

KEY PLAYERS

developers, local authorities, architects, advisers, brokers

TOWN PLANNING

urban regeneration, smart cities

BEST STRATEGIES investment, property, buildings & workplace management

Jaspers-Eyers Architects

Business Interactive Media sprl - Belgium Real Estate Showcase 2015, a special issue of Profacility Magazine - May 2015 - 35 Eur - Afgiftekantoor Leuven Mail - P304098

2015 / BELGIUM REAL ESTATE

Jones Day new offices A law firm chooses for creativity www.admos.be

EDITORIAL

Micro and macro importance of real estate investments

he real estate world in Belgium is continuing to move, with good news coming out of activity in 2014. Looking at the country’s largest market by far – Brussels – a satisfactory level of some 460,000 m² of office take-up was registered during the year, more than a quarter higher than last year. And in investment terms, this time over the whole country, around 3 billion Euros was place in real estate, the best figure since the last ‘pre-crisis’ year of 2007. It is interesting to note that despite the fact that the professional real estate market has somewhat diversified in terms of segments over recent years – especially towards residential accommodation and rest homes – the previously traditional office segment was very much back in investors’ favour in 2014. While this segment only represented 52% of total real estate investment during the 2009-2013 period, last year well over 60% of all investments went into offices. And having seen two very significant transactions earlier in 2014 – Kievitplein Antwerp to AG Real Estate for 198 million Euros and North Galaxy Brussels to ARP and AXA for 475 million Euros, the year had another surprise and went out with a real bang. Hannover Leasing and an Asian institutional investor acquired Covent Garden right in the heart of Brussels, for around 270 million Euros. And the good news did not end as the New Year dawned: 2015 has already seen the sale of Bastion Tower on the Porte de Namur and the acquisition by Befimmo from Codic and Immobel of the Gateway project inside the airport. It is pertinent to move away from the narrow confines of our industry and its internal workings, to look at what real estate represents to the wider world and to overall economies. At a conference cleverly entitled ‘Building the Real Economy’ held in Brussels towards the end of last year, some of this importance was made clear. Figures from European Investors’ Association INREV showed that the commercial property sector invests 235 billion Euros per year in building development and refurbishment. When infrastructure and housing are included in the equation, says Inrev, this constitutes 55% of all capital investment in the EU. And commercial property, it also states, contributed 302 billion Euros to the EU economy*– almost twice as much as the automotive and telecommunications sectors, and 2.6% of the total European economy. And these are not just massive figures – they have relevance for the man in the street too. European Parliament deputy Philippe de Backer, a speaker at the conference, pointed out that real estate is one of the few investments that almost every citizen is involved in, either privately or through a professional link. The professional link in particular comes in the form of pension funds, as Patrick Kanters, Managing Director of AGP Asset Management, explained. Coming even closer to the man in the street, and illustrating just how important real estate is, the final word goes to another speaker, Karel Lanoo, CEO of the Centre for European Policy studies, who said: “Real estate is part of the quality of life. People identify a place by its buildings”. Tim HARRUP Final editor Pro-Realestate Media tharrup@pro-realestate.be

* 2013 figures

BELGIUM REAL ESTATE SHOWCASE 2015 3

Belgium Real Estate Showcase 2015 A special issue of Profacility quarterly magazine published by

Business Interactive Media sprl Avenue Louise, 523 - 1050 Brussels Phone: +32 (0)2 669 77 65 Fax: + 32 (0)2 626 37 17 info@bimedia.be - www.pro-realestate.be Publication Director Didier VAN DEN EYNDE - dvandeneynde@bimedia.be Journalists atrick BARTHOLOME, Benoît DORTHU, Kim VERHEGGE, Jean-Claude VERSET EDITORIAL Final Editors Tim HARRUP - tharrup@pro-realestate.be Eduard CODDÉ - redactie@profacility.be Our grateful thanks to Guibert de Crombrugghe, Patrizia Tortolani en Pascal Vanhumbeeck from de Crombrugghe & Partners, Walter Goossens and Patrick Tacq from JLL, Christophe Nihon from Immoquest.All of them have brought us their expertise and knowledge of the real estate markets.

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Showcase 2015 / BELGIUM REAL

in the Belgian real estate industry,

- May 2015 - 35 Eur - Afgiftekantoor

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.be for news, trends, network Connect to pro-realestate

MARKET TRENDS

vacancy, take-up, investment

& letting trends

and real estate management

best practices

‘De Blekkerij’, new living

along the Lys River in Kortrijk

PROJECTS

housing & retail town planning, offices,

KEY PLAYERS

developers, local authorities, architects, advisers, brokers

TOWN PLANNINGcities urban regeneration, smart

GIES BEST STRATEbuildings investment, property, nt & workplace manageme

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Showcase 2015, a special

issue of Profacility Magazine

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ESTATE

Jaspers-Eyers Architects

trends & best practices in property,

The Óud Blekkerij´ site in Kortrijk will give birth to a new part of town :Ńew Kortrijk on the Leie´. It’s becoming a strikingly high-profile project of real estate developer Ghelamco which involves two glasses residential towers. The design is by the American architect Andrew Bromberg and the belgian architectural bureaux Jaspers-Eyers.

CONTENT

Showcase 2015 / BELGIUM REAL ESTATE

The ‘Real Estate Showcase’ guide gives real estate professionals a global view and analysis of the Belgian real estate markets. It sets out market trends in terms of letting and sale for offices, retail and logistics estates. The guide describes major town planning schemes and the main projects for office buildings and shopping centers. It highlights the best practices in property, buildings and workplace management.

REAL ESTATE DEVELOPMENT & PROPERTY MANAGEMENT TRENDS

BRUSSELS REGION

Town planning, projects & market trends

30 > 63

08 > 27 FLANDERS

WALLONIA

Town planning, projects & market trends

66 > 85

86 > 98 BELGIUM REAL ESTATE SHOWCASE 2015 5

Pim van Ballekom, EIB Vice-president

Financing smart cities

Photo courtesy of Management Producties

EIB & Belfius ‘Smart cities & sustainable development’ programme

52 PROFACILITY GUIDE 2012

R 16

Real Estate Development I Vision & think tank Interview with Paul Gheysens, CEO and founder of the Ghelamco Group

Real estate development strategy

Which ‘value for money’ to taxpayers in Public-Private Partnerships?

REAL ESTATE DEVELOPMENT & PROPERTY MANAGEMENT

→→

Property & Environment Management BREEAM – the best option?

Market trends I Logistics multi-modality Interview with Walter Goossens, Head of Industrial Leasing of JLL

PROFACILITY GUIDE 2012 53

© Philippe SAMYN and PARTNERS architects & engineers, LEAD and DESIGN PARTNER. Philippe Samyn and Partners architects & engineers, Studio Valle Progettazioni architects, Buro Happold Limited engineers.

Depelsenaire & Partenaires © Ph.Piraux (Iguzzini)

Robbrecht & Daem architecten ism. Arch & Teco Architecture

The Belgian Buildings Agency The real estate expert of the Federal State Gulden Vlieslaan - Avenue de la Toison d’Or 87 box 2 B-1060 Brussels - Belgium Phone: +32 (0)2 541 70 66 - Fax: +32 (0)2 541 70 70

www.buildingsagency.be Buildings Agency

TOWN PLANNING & FINANCING

Financing smart cities ‘Smart Cities & Sustainable Development’ is the name of the new programme, developed

jointly by the European Investment Bank and Belfius Bank, to finance intelligent cities.

A first in Belgium – and in Europe – which should enable communes to benefit from financing at reduced interest rates in order to progress towards the status of Smart City. The rules of the game have been set and the kick-off was given last year in June.

he challenges in terms of urbanisation are immense. According to a recent McKinsey report, by 2030 some 57 trillion Euros will have to be found to create and maintain roads, electricity power plants and pipelines. But the Smart Cities programme is based on local statistics: more than 70% of Europeans live in urban areas, a proportion which is as high as 98% in Belgium! And there is another worrying reality: in developed countries the public authorities should devote 4% of their GDP to infrastructure. In Belgium, this proportion is only 2%.

This demographic concentration is considered to be a source of challenges in the cities, which generate almost 85% of the GDP, but consume 75% of the energy produced in order to do this and are responsible for 80% of CO2 emissions. It is within this context that the Belgian-European ‘Smart Cities’ project is positioned, a project which claims to be ‘sustainable and intelligent’. In practical terms, the 589 communes and cities of Belgium can, from now, obtain financing at reduced interest rates. The credit line is available to public authorities and to others, but always for the benefit of the local administration. This preferential rate financing is being made available by the European Investment Bank (EIB) and Belfius, and involves a total of 400 million Euros. The two banks are each contributing 50% of this. At Belfius, they say they do not underestimate the budget pressure felt by communal bodies for some years, “but the annual charges for such an investment will be more easily able to be financed thanks to the triple A rating of the EIB”, believes François Franssen, Head of Strategy at Belfius.

Pim van Ballekom, Vice-president of the EIB “ In developed countries, the public authorities should devote 4% of their GDP to infrastructure. In Belgium, this proportion is only 2%.“

BELGIUM REAL ESTATE SHOWCASE 2015 9

TOWN PLANNING & FINANCING

in line with the Europe 2020 strategy. The aim is for intelligent, inclusive and sustainable growth, so that this approach becomes the new norm for constructing the cities and communes of tomorrow”.

Pierre-Emmanuel Noel, Senior Banker at the European Investment Bank (EIB)

Financing small and large scale projects Pierre-Emmanuel Noel, Senior Banker at the EIB, considers the financial line destined for Smart Cities as to be like a three stage rocket: “The institutions which consider the points to be focused on, the financial stage and finally those undertaking the projects”. In the eyes of Pierre-Emmanuel Noel, the objective of the EIB is not to finance 8 projects of 50 million Euros each. “The small communes will also be involved”. On the other side of the coin, the 50 million Euro ceiling does not prevent the EIB from financing larger scale projects, even if it does recognise that in Belgium, projects of over 50 million Euros are relatively rare. But the effect of urban concentration is substantial here: 40 of the 262 Walloon communes account for 65% of the population. For projects representing investments of under 25 million Euros, the agreement for preferential financing will be given by Belfius and audited by the EIB. Above this figure, and up to the authorised ceiling of 50 million Euros, the agreement will be given jointly by the two banking bodies. Once the credit line has been instigated, the commune will have a maximum of three years to finalise its project. For the aim is to finish before 2020, the end date of the European programme for CO2 emissions. Pim van Ballekom, Vice-president of the EIB, considers that the’ Smart Cities & Sustainable Development’ programme” is a first in Belgium and also in Europe. The objective is in fact to set a ream dynamic in motion around ‘Smart Cities’, 10 BELGIUM REAL ESTATE SHOWCASE 2015

Development priorities In order to benefit from these credit lines, the communal projects have to be judged ‘sustainable and intelligent’ in three precise areas: mobility, urban regeneration, energy efficiency/renewable energies. There are many examples of what could constitute an integrated project. Where mobility is concerned, this could be an overall plan associating electric vehicles with a policy to reduce cars in cities and encourage bikes. There is also the question of the road network, public transport, urban transport management or inter-modal transport hubs. In the domain of urban regeneration, there could be a project to create an eco-district, a hospital or a cultural centre within the framework of rehabilitating an industrial eyesore. And finally, energy efficiency could involve the use of new energy such as solar panels and the replacement of street lighting by LED technology. The instigators of the programme also talk of projects involving photovoltaic, solar water heaters, wind energy, biomass, cogeneration, and the energy efficiency of buildings undergoing renovation. These examples are by no means exhaustive. And while the financial aid targets three areas in particular (mobility, urban development, energy efficiency), the programme nevertheless does not exclude ICT, explains François Franssen: “An application for a smartphone allied to a sustainable mobility project could also be accepted, but we wished to avoid frightening the communes with technologies which might seem complicated”. The fact of combining several of these criteria enables a project to fall more easily within the ‘Smart Cities financing programme’. The project has to constitute a holistic communal plan In more practical terms, amongst the criteria to be met in order to benefit from reduced interest financing, is the necessity to produce a strategic plan. The project has to give examples along with a financial justification. To this, explains Pierre-Emmanuel Noel, are to be added other eligibility criteria. They are fixed by the EIB in discussion with Belfius which has to ‘recognise certification guidelines’.

 Global View / Simon Schmitt

The Smart cities programme is being undertaken in parallel with what

is referred to as the ‘Mayors’ Convention’, a European initiative which brings together 5,600 willing public authorities which wish to go beyond

the environmental objectives of Europe 2020. Within this framework, city mayors are committing to paying particular attention to well-being, mobility, energy management and CO2 emissions. In Belgium, Daniel

Termont, the mayor of Ghent, is one of those behind this convention.

The projects are designed to achieve the objectives of the European

programme whose goal is, by 2020, to reduce CO2 emissions by 20%

compared to 1990, to generate 20% of the EU’s energy use from renewable sources and to improve energy efficiency by 20%.

BELGIUM REAL ESTATE SHOWCASE 2015 11

TOWN PLANNING & FINANCING

François Franssen, Head of Strategy at Belfius “ At Belfius, we do not underestimate the budget pressure felt by communal bodies for some years, but the annual charges for such an investment will be more easily able to be financed thanks to the triple A rating of the EIB.“

Through this process, the European Commission is hoping to see standards emerge in this domain. Every city is unique. But the challenges are the same, explains Mathias Reddmann of the European Commission. “The philosophy behind this partnership is to connect cities with companies, industry, SME’s, and the academic world. In pragmatic terms, the objective of Smart Cities is also to incite initiatives which could be replicated in order to associate the needs of the cities and the regions. The idea is to encourage standards to emerge, and to identify eco-districts to serve as references”.

The EIB was already financing cities and communes within the framework of sustainable cities, energy efficiency and urban regeneration. With ‘Smart Cities’ projects have to be integrated and include several dimensions. “This means being innovative where technologies are concerned and inclusive through the participation of stakeholders. This does not involve the financing of a solar panel installation on a public building, but of projects which include a vision for the future”, details Pierre-Emmanuel Noel.

Resounding success Following some nine months of existence of the ‘Smart Cities & Sustainable Development’ programme, what is the current situation with the Belfius ‘Smart Cities’ initiative. Just a fine idea with one or two enthusiastic followers, or a real contributor to the urban life of tomorrow ? Quite clearly, the latter: eight projects have already received financing (to the tune of 35 million Euros) from the European Investment Bank (via Belfius) and many others are actively being considered. And their diverse natures amply demonstrate that Belgian communes, cities and administrations have taken the initiative to heart. Among projects to have received finance are the construction of a near zero-energy serviced residence in the commune of Schelle, the redeployment of an industrial eyesore in Wetteren, renovations and extensions to rest homes in Stekene and Kampenhout, and the installation of a CNG fuel station at Harelbeke.

Smart Cities & Sustainable Development In the B2G* information magazine ‘Contact’ published by Belfius, Marc Raisière, President of the Belfius board, clearly explains in his editorial the reasons for his company’s commitment to the ‘Smart Cities & Sustainable Development’ programme and its collaboration with the European Investment Bank. The concept of ‘Smart City’ is explained in detail in the magazine which also illustrates this with several concrete examples. There is also a focus on European aid and subsidies which can be obtained by Belgian public authorities: provinces, cities and communes. For more information and download of the magazine (French or Dutch) > www.belfius.be/smartcities *B2G > Business to Government

12 BELGIUM REAL ESTATE SHOWCASE 2015

Sint-Gillis-Waas – a sustainable administrative centre Another project, and which we look at in more detail, is for new administrative centre at SintGillis-Waas. This is one of three ‘administrative centre’ projects, the other two being at Gembloux, close to Namur, and Bierbeek, near Wavre. The Sint-Gillis-Waas authorities wished their centre to be innovative, and sustainable. It was to offer a new type of public service provision to citizens, with a front and back office concept. The building had to be ﬂexible and easily adaptable, with access for handicapped persons, and it had to integrate into the town’s chateau and park.. Where the construction itself is concerned, the building will be passive and generate itself a large proportion of the energy needed for heating and cooling, thanks to geothermal techniques and heat pumps.

Belfius and the European Investment Bank recognised the project for its forward-thinking nature, and it thus became one of the first to receive a grant within the framework of the initiative. The organizations also believe that this project can serve as an example to others. The objective is clearly to lesen the borrowing burden for communes, CPAS (social security bodies) and inter-communal associations, in order to support them in innovative and sustainable development approaches.

FUTUROCITÉ: a Walloon PPP to facilitate communes in building up their projects Although the Smart Cities programme is arousing enthusiasm within communes, the obstacles in the way of making it a success are not to be underestimated. Administrative delays, political logic and insufficient skills are just some of the potential brakes to realising projects designed for the long term. Frank Butstraen, Director General of the Futurocité not-for-profit organisation, specialising in providing assistance to communes, takes a look at the major obstacles to be overcome. “Agoria and the Walloon Union of Enterprises are pushing the private sector to commit to intelligent city projects, but they are confronted with the political agenda set by the elections and the financial situation of the communes. Long term projects do not attract the mayors, who fear that the fruits of their efforts will be reaped by others, after the elections”. To this may be added a lack of internal competence. “At the financial level, drawing up a budget demands a total understanding of the implications of a strategic plan, and this requires help from the private sector. But the rules involving public tenders mean that anyone advising a commune may be excluded from such tenders”. And finally, an ambitious holistic project involving several departments of a communal administration, may come up against intra-communal fiefdoms, everyone protecting his own particular domain for fear of losing a part of his power.

Frank Butstraen believes that the solution lies in the communes subscribing to a strategic plan with a platform which enables the principal of Smart Cities to be integrated in modules. But it will doubtless be long road to get from where we are now to there… All of these obstacles explain the creation in Wallonia of the Futurocité not-forprofit organisation, a public private partnership (PPP) which enables the cities and communes to be approached without fearing the suspicion of wishing to influence a tender. This body is financed by the Walloon government to the tune of 50% in the form of operational budgets, while the private sector supplies materials and resources in the domain of consultation. According to Frank Butstraen, there still remains one obstacle: the inability of numerous communes to draw up a specification and a business plan for Smart Cities projects. “Drawing up a mobility plan requires skills which the communes may not necessarily possess”. And the Belgian political context should not be forgotten: “A Walloon PPP has no authority in Flanders or Brussels. For private companies, this situation seems absurd”. He calls for a situation such as that in France, where the law allows partnerships to be established between the public and private sectors to test concepts and free up funds which, in their turn, will enable a call for tenders to be made in two or three years. This is what Montpellier, Nice and Lille have done.

Jean-Claude Verset & Tim Harrup ✍

Frank Butstraen, Director General of the Futurocité

www.futurocite

BELGIUM REAL ESTATE SHOWCASE 2015 13

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05/02/14 12:26

TOWN PLANNING / THINK TANK

The Smart City Institute federates for better city living The concept of cities said to be ‘intelligent’ is more and more emerging as a response

to the various problems caused by the rise in urban populations. Within this perspective,

the Smart City Institute has recently come into being within the Liège University Management School, with the support of both public and private partners. A first in Belgium, explained by the Institute’s director, Nathalie Crutzen.

e are arriving at a moment where everyone is becoming aware of the various high stakes for society. The momentum is growing in terms of genuine consciousness of the problems in terms of the way the planet is organised and of the fact that there are going to be more and more people living in cities”, explains Nathalie Crutzen, professor at the University of Liège Management School and director of the newly formed Smart City Institute (SCI). This new university institute, which has the support of the City of Liège and private partners Accenture and Belfius, is aiming to stimulate research, training innovation and entrepreneurship within the domain of ‘smart cities’. The rapid growth in urban populations is giving rise to many challenges in areas such as mobility, housing, employment, education, culture, security, without of course forgetting the management of resources such as water, waste and energy. The ‘smart city’ concept is increasingly being put forward as a response to these challenges.

The Smart City concept – an ideal to be attained According to the director of the SCI, there are not yet any genuine ‘smart cities’ today, although moves in this direction are being made by cities. It is not difficult to comprehend that there is no ‘absolute’ model for smart cities, and that the way they emerge will depend on mindsets, and on the strengths and weaknesses of each city. “The local authorities will need to attract around them a whole series of players, including the inhabitants, local or multi-national companies which could provide their expertise and best practices, public institutions and also the academic world with its researchers and students”, states Nathalie Crutzen. The Smart City Institute wishes to federate all of these forces so that together they can approach the issue in accordance with the specific character of each city.

Inspiring by example Whether large or small, our

cities and communes have no other choice. In order to remain attractive for their inhabitants, companies and investors, they have to become ‘smart’. It is important that everyone Nathalie Crutzen

is aware of the opportunities and stakes involved in ‘smart’ cities, and to benefit from the

Smart City and Management an original approach That the Smart City Institute is integrated into a management school constitutes one of the specificities of the Institute. “We looked at around twenty centres at worldwide level, but most of them remain very technical. They have an army of engineers who are considering problems of mobility in cities, for example, and making technical proposals. But these have to be put into operation. There is a whole series of obstacles to be analysed, financing models to be thought about. But a managerial and economic reflection is also essential, a technological approach alone will not provide the answer, even though this is absolutely necessary too”, asserts Nathalie Crutzen. Interview by Kim Verhegge ✍

best initiatives and projects in this domain. Within this context, a few months ago Belfius launched the first

edition of the ‘Belfius Smart City Awards’, in partnership

with Vif/L’Express and Knack, Proximus and Accenture. With the aim of inspiring by example, the professional jury has selected 10 projects from cities and communes of the three Regions, which stand out in particular for their sustainable, innovative and integrating nature. To find out more about these projects, visit www.levif.be/ belfiussmartcity or www.knack. be/belfiussmartcity

BELGIUM REAL ESTATE SHOWCASE 2015 15

REAL ESTATE DEVELOPMENT THINK TANK

Visionary, outside-the-box thinking The 60,250 seats national stadium that is soon to arise on the Heizel grounds is unquestionably a new milestone with an iconic impact for real estate developer

Ghelamco. The Ghelamco Group is not only a major real estate developer in Belgium, it has also been very active in Poland. Since 1991 they have built nearly one third of

the new offices in Warsaw. An interview with Paul Gheysens, CEO and founder of the

Paul Gheysens, CEO and founder of the Ghelamco group “ Each year Ghelamco creates 150,000 m² of office space, at home and abroad. Architecture is essential and highquality architecture earns itself back.“

Ghelamco group, a solid family company that places great value on a positive business culture with the space to develop a close team of employees.

After the Ghelamco Arena in Ghent, the Éurostadium Brussels´ is a new prestige project for your company. What particular characteristics can we expect? Éurostadium Brussels´ is a purely sports-oriented project, although we are providing for 20,000 m² of office space in the concept. It fits perfectly with the Ńeo´ town planning development located just 550 m away, which focuses on

housing, retail, leisure, exhibitions and congress. The two projects are fully complementary. A covered ´driveway´ will provide an indispensable and optimal link between the two. From the outset mobility was integrated into the concept, researched in detail and backed up with hard figures. The traffic to ‘Neo’ and the traffic to the stadium will flow separately and on different levels. The access capacity to the stadium parking will exceed the capacity of the public infra-structure by a factor of 2! We consulted with all parties – the municipality of Grimbergen, the city of Brussels and Brussels Expo - and strove for a consensus. The stadium is designed to be energy-positive and will integrate many progressive technologies, on which we have collaborated closely with VITO, the University of Ghent and most likely still a number of international technology partners. The Ghelamco Arena in Ghent was undoubtedly an ideal learning experience for succeeding with ´Eurostadium Brussels´. What did you learn there? It is of vital importance that the ´sports temple´ creates a family event. Everybody has to feel at home there, and a beautiful space is an invitation for this. Visitors are seeking conviviality, and that´s what we offer them. The accommodation generates a group feeling - and this has a direct impact on the turnover. For example, sales per visitor are almost twice as high in Ghent than they are in a stadium like Genk. The stadium is also the place where supporters are cultivated; after all, you don´t become a supporter of a club overnight. The way the ambiance is experienced is extremely important for allowing this to happen. By cultivating supporters, the public

16 BELGIUM REAL ESTATE SHOWCASE 2015

Image: Jaspers-Eyers Architects

influx doubles to triples. The catering offering and the space are the binding agents. The all-around glass facade in Ghent proved to be a great success. We also learned a huge amount from all the expertise that was gained through collaboration with experts in the areas of general safety, fire protection, signage, etc. We see a great deal of variation in the projects under development by Ghelamco, including large-scale urban developments. Why opt for variation? Ghelamco invariably goes for a broader approach. We put the accent on creating a different life-world. That can´t be done with just a single building; ideally, it has to be achieved on a location with diversified buildings and an overall vision of how to lay out the surrounding area, integrating circulation and mobility issues. The ´Oud Blekkerij´ site in Kortrijk is a textbook example of that and will give birth to a new part of town, ´New Kortrijk on the Leie´.

It’s becoming a strikingly high-profile project that includes two glass residential towers with 50 flats each, which enjoy a beautiful view out over the Leie river. The design is by the American architect Andrew Bromberg and the Belgian agency Jaspers & Eyers. On the site there’s also space for 80 houses with garden and assistedliving residences. There will also be a spacious park, and there’ll be an underground parking facility beneath it. We´re convinced that the age of small apartments that are mainly purchased by investors in order to rent them out is coming to an end. Investors must be able to buy cheaply, but renting out will be very difficult in the coming years. Rents are high and interest rates are low, so buying becomes the logical choice over renting. We´ve gradually reached saturation point for this type of investment project. That doesn´t exclude the fact that in Kortrijk we will also offer several apartments with surface areas ranging from 70 to a maximum of 125 m².

´Eurostadium Brussels´ is a purely sports-oriented project. It is of vital importance that this ´sports temple´ create a family event. The accommodation generates a group feeling and this has a direct impact on the turnover. By cultivating supporters, the public influx doubles to triples. The catering offering and the space are the binding agent.

BELGIUM REAL ESTATE SHOWCASE 2015 17

REAL ESTATE DEVELOPMENT THINK TANK

The projects in the pipeline also include a lot of student flats, although some people say that this market has already peaked. A solution from the private sector had to be offered quickly for the shortage of student flats. This solution came with the positive effect that the offering of high-quality and comfortable student accommodation has now been brought up to an acceptable level. And the rents are back down to an affordable level. Universities will quickly take over the housing for their students themselves. We were surprised not to find any projects targeting s seniors amongst the new Ghelamco project developments. We’re working very intensively on a whole new concept and want to embark on this market fully independent of government subsidies. It’s turning into a visionary, high-tech concept that will be converted into a product focusing 100% on human beings. As always, we’re not acting impulsively here: we study all the possibilities in detail before moving on to the design phase. Within this context we’ve already had contacts with Samsung, Google and other technology pioneers. How do you view the office market? Each year Ghelamco creates 150,000 m² of office space, at home and abroad. The Belgian office market has fallen behind over the past decade, and a new generation of office buildings is necessary. Oxygen and light are the essence for every contemporary office project. Older buildings had to neglect that, and they risk

projects like the ´Warsaw Spire´ - 180 m and 48 floors - or ´Spinnaker Tower´ (50,000 m²) possible. All the major players are present there, but there is fair competition based on competency. Brussels will undoubtedly try to catch up, but it needs some iconic buildings. Amongst the many new developments, am I right in saying that Antwerp is notably absent? In recent years we´ve done a lot of building in Ghent and we’re definitely remaining very active here, with new projects that haven´t been unveiled to the public yet. We certainly aren´t ignoring Antwerp, but we’re currently working hard on various preliminary studies before sharing them. We also see many opportunities in Namur and Charleroi. It’s our policy to always carry out a thorough preliminary study before elaborating and presenting a concept. Basically we only communicate about new projects when the chances that they will be authorised are virtually 100%. How important is architecture for the success of a project development? Architecture is essential and it´s worth paying something for it, because high-quality architecture pays for itself. For Ghelamco, everything starts with a vision of the life-world that we want to offer with our projects. That’s why we constantly work together with the American architect Andrew Bromberg and Jaspers-Eyers Architects from here at home. A very precious relationship of trust has developed with them over the years. Andrew Bromberg flies over in person when we think it’s necessary. There are

“ Passive building is already outdated, new buildings have to be energy-positive and for environmental voluntary building certification ´Breeam Excellent´ should the objective “ becoming ´unusable´ to worthless very quickly. We firmly believe in a market for the better product. Passive building is already outdated, new buildings have to be energy-positive. The passive buildings that are being built today aren’t going to have a long life. ´Breeam excellent´ is the standard that has to be used, which we also illustrate with the ´Blue Towers´ in Ghent and the ´Centre Etoile´ office building in Brussels. Compared to Belgium, Warsaw is moving rapidly ahead. Everything’s new there! We could start from the proverbial tabula rasa, which makes

certain other international names that we appreciate, but the enthusiasm and motivation of the two firms strengthen our collaboration so much that loyalty has become a matter of course. Ghelamco isn’t just a contractor, we’re also designers, we’ve got a strong team of in house architects who work together closely with our outside architectural partners. Moreover, we´ve set up a highly competent R & D team in Warsaw. We very much value well-thought out mobility solutions, because this is crucial for attracting customers / users. Interview by Eduard Coddé ✍

18 BELGIUM REAL ESTATE SHOWCASE 2015

Image courtesy of Ghelamco

The Ghelamco group has been very active in Poland since 1991. They have built nearly one third of the new offices in Warsaw. Starting there from the proverbial ‘tabula rasa’ makes projects like the ´Warsaw Spire´ - 180 meters and 48 floors high - or ´Spinnaker Tower´ possible.

BELGIUM REAL ESTATE SHOWCASE 2015 19

REAL ESTATE DEVELOPMENT STRATEGY

Public-Private Partnerships: a PPP – Public-Private Partnership in full - is a concept that was slow to get off the ground

in Belgium. The formula was eyed most suspiciously, and was in the first instance geared

towards financing projects for which the necessary funds were not readily available, while the added value of a PPP to a project was not, or hardly, taken into consideration.

But, as we were able to establish at the ‘PPS in Vastgoed (PPP in Real Estate)’ Study Day

organised by Management Producties at thebeginning of March, the tide finally seems to be turning, provided the formula pursues a win/win for all parties concerned.

ublic-Private Partnerships can relate to real estate, more often than not linked to a long-term DBFM(O) agreement (Design, Build, Finance, Maintain & Operate), or can be applied to area development, where collaboration is limited to the construction or development phase. Steven Steppe, Director of Rebel Group, pointed out: “In Belgium, the DBFM approach is overemphasised with the result that it has almost become synonymous with PPP, which couldn’t be more wrong!”. He went on to highlight the distinctly different ways in which the Netherlands and Belgium amake use of PPPs. Progress reports on PPPs By contrast with the Netherlands, the possible added value of a Public-Private Partnership in comparison to a traditional tender is not, or hardly, assessed at all in Belgium. Progress reports on PPPs have been in place in the Netherlands since 2006. Following that, ‘progress reports’ on PPP projects governed by a DBFM(O) agreement were introduced in 2010.

a “

Flanders does have its ‘Jaarlijks Verslag van de Vlaamse Regering: Alternatieve financiering van Vlaamse Overheidsinvesteringen (Annual Report by the Flemish Government: Alternative Financing of Flemish Public Investment)’ with an appendix ‘Jaarrapport Kenniscentrum PPS (Annual Report PPP Knowledge Centre)’. But, by contrast with the Netherlands, where ‘added value’ is the name of the game, Flanders mainly focuses on the aspect of alternative financing, i.e. the off-balance sheet cost saving. In June 2014, Wallonia decided to merge the CIF (Centre d’Information Financière - Financial Information Centre) with the WBFin Cell, which comprises a project to overhaul public accounts in Wallonia and the Wallonia-Brussels Federation. 20 BELGIUM REAL ESTATE SHOWCASE 2015

The Netherlands sets the example In the Netherlands, private financing is not a goal in itself. The preferred option is settled on a project-by-project basis whereby the Kingdom invariably rules in favour of the added value to the taxpayer. Only in cases where the project value of housing developments is more than 25 million Euros or that of infrastructure works exceeding 60 million Euros, does a PPP becomes an obvious choice. In these situations, the added value of a DBFM(O) agreement ranges between 10 and 15% on average. If the afore-mentioned thresholds are not met, the effective returns are lower than the transaction costs. Since the progress reports were introduced in the Netherlands, DBFM(O) agreements have pushed the added value up to well over 1.3 billion Euros, to be increased by the as yet to be calculated added value generated by opting for more high-end solutions. PPPs in the Netherlands have been a success story because budget, timing and the international quality rules are adhered to. In countries such as France, Germany, the United Kingdom and undoubtedly in Belgium (Flanders) too, public opinion is somewhat anti PPP, more specifically because, in the early years, many PPP projects were executed without proper risk arrangement having been carried out between the market and the authorities and because the aspect of ‘value for money’ to taxpayers was somewhat overlooked. To turn the PPP formula into a success, added value must take precedence over the off-balance sheet funding of the projects. The perception of DBFM(O) agreements must be enhanced by separating them from alternative financing and from the concept of PPP itself. Ideally, DBFM should be given its own identity.

s: added value is key to success Financing viewed differently “Funding is no longer the impediment that hampers the realisation of projects” Lode Verstraeten, Head of Public Sector & Institutionals KBC Bank Corporate Banking Center Region, stated somewhat surprisingly. “There is plenty of money available for funding these days, but there is a lack of projects and investments including PPP, and, in addition, relating to the PPP projects that are tendered, the throughput times are too long”. Banks are not the only ones which can provide funding, other parties, such as insurance companies, are also an option. However, current very low interest rates over a very long period of time (25 to 30 years) might be considered an issue. Financial partners on average tend to prefer shorter financing tenors than 25 or 30 years, but on the other hand currently there is sufficient liquidity in the market to address these long term financings of projects. The availability payment in DBFM agreements does not have to be fixed for the entire duration but could follow refinancing, e.g. 15 + 15 years. After all, looking at the traditional real estate markets, leases are also subject to indexation and to renegotiation once the contract term comes to an end. PPPs could provide that option too. There has recently been seen one example of a project where Pension insurance companies involvement as road infrastructure financiers in the Netherlands led to inflation linked cash

flows, but it would maybe be easier to apply such in more real estate driven PPPs. Standardisation is also essential: in Belgium, ten bodies are involved as against two in the Netherlands (Rijkswaterstaat (Department of Waterways and Public Works) and Rijksgebouwendienst (Government Buildings Agency)).

“ To turn the PPP formula into a success, added value must take precedence over the off-balance funding of the projects “ These days, the difference between renting and ‘using’ via a DBFM agreement is becoming increasingly smaller. As a result of the obligation to contain government deficits imposed by Europe, investments must be spread as efficiently as possible, which is the case with an ‘availability’ over 20 to 25 years which is exactly what a PPP formula with DBFM agreement has to offer. In the current financial context, DBFM is probably the only way investment in infrastructure and public buildings can continue. Eduard Coddé ✍

Legal context “A thorough preparation of PPP projects could prevent an awful lot of legal hassle or certainly reduce it by half” was the opening line of Helga Van Peer, Head of the General Public Law Department and partner in Allen & Overy, where she works on many PPP projects. A PPP is no guarantee of a simpler legal context. After all, the individualistic approach to projects, which gives rise to major disparities, prevails for PPP that are not DBFM. A PPP is not a means to suddenly turn a difficult or impossible financing proposition into a feasible one. Furthermore, there are no PPP-specific legal rules. For that reason, a project needs to be clearly defined before the appropriate legal structure can be set up. “For real estate projects, the trend seem to veer in favour of hybrid projects. It would be a good idea to standardise different types of PPP contracts, with the one for infrastructure DBFM being fairly well accepted by now but not necessarily suitable for other PPP. It would also be worthwhile examining all key elements before launching a project. After all, if a project is not sustainable, setting up a PPP is not a feasible option either. There is increased awareness regarding the importance of thorough preparation, which is a good sign.” BELGIUM REAL ESTATE SHOWCASE 2015 21

PROPERTY MANAGEMENT ENVIRONMENTAL BUILDING CERTIFICATION

BREEAM – the best option ? The number of environmental office building certifications has seen exponential growth in

Belgium since they first made an appearance six years ago. Many systems for evaluating

the sustainability of buildings have been developed at regional, national and international levels. In order to guarantee that this voluntary ‘green’ trend continues, harmonisation and simplification have become an absolute necessity, and at the moment it seems to be BREEAM which has become the method of reference.

he desire for certification came about on the one hand because within a market suffering from over-supply, developers needed to be able to ensure that the wheat could be seen from the chaff in terms of ecological buildings, and on the other because the public authorities wished to encourage the sustainable development and rehabilitation of cities and districts. The value of BREEAM certification lies in the number of criteria it takes into account, including of course the energy performance of the building, but much more besides. The evaluation also involves waste management during and after construction, the use of recycled materials, water consumption and recycling, the cleansing of polluted ground, maintaining bio-diversity on the site, user comfort (lighting, acoustics, interior air quality…), mobility and access to the building and CO2 emissions caused by transport. You can’t just choose one or two elements and obtain BREEAM certification, which is why this method is so effective and achieves its objectives. One of the principal advantages of the BREEAM system compared to other certification programmes, is that it is internationally recognised. BREEAM is continuing to make progress in Europe and is gaining ground compared to other certification programmes such as the French HQE system or the American LEED. This international recognition leads to BREEAM being the preferred system for many real estate developers in Belgium, and is indeed encouraged by their professional association UPSI.

drawn up by the Belgian public authorities to evaluate sustainability and encourage ecoconstruction. This is the case for Brussels with the ‘Exemplary Buildings’ competition and awards which was running up to last year, and also for Flanders with on the one hand ‘Maatstaf duurzaam bouwen en wonen’ (Sustainable Building and Living Norm), the Flemish authorities’ reference, and on the other the ‘Waardering van kantoorgebouwen – Op weg naar een duurzame huisvesting voor de Vlaamse overheid’ (Office building evaluation – towards sustainable accommodation for the Flemish authorities), for office construction. Ref-B Harmonisation in order to be able to draw up a cross-regional reference, had become desirable. This enabled Ref-B (Référentiel Bâtiment Durable or Sustainable Building Reference), to emerge, a single certification system for sustainable buildings in Belgium, replacing the different systems used in the three Regions. The working group which was set up to oversee this system included representatives of public authorities and environmental management bodies of the three Regions, along with – at Federal level – the public health department, the professional federations and the ‘Belgian Sustainable Building Council’. In order to draw up the methodology, they analysed and compared the previously-mentioned regional systems in depth, as well as the VALIDEO Belgian national certification system and the BREEAM international system. Didier Van Den Eynde ✍

A typically Belgian compromise As the BREEAM evaluation system is of AngloSaxon origin, it is not totally suited to Belgian regional and national regulations, nor to the usual construction methods used in Belgium, or the climate. And on top of this, it has to be flexible and be able to apply to a variety of building types: housing, schools, crèches, hospitals, sports centres, cultural centres… and to large buildings as well as small. This is why, in pursuing the objective of the sustainable development of the towns and regions, other methods have been 22 BELGIUM REAL ESTATE SHOWCASE 2015

LOGISTICS MARKET TRENDS

Logistics - somewhat slow but… While 2014 saw logistics take-up slightly down on the five year average, broker JLL believes there are positive signs for the future. Walter Goossens, Head of Industrial Leasing for the company, shares his figures and thoughts with us.

he Belgian logistics market saw a total of 553,780 m² of logistics take-up in 2014, a figure which is 4.1% below the five year average, and a more significant 16% below the 2013 level. JLL’s Walter Goossens, Head of Logistics for the broker, attributes this performance to a poor second half. However, he pointed out last year, the 2013 figures were very positively affected by a ‘sparkling fourth quarter’, which alone saw 320,000 m² of takeup, pushing 2013 some 13% above the previous year, and 9% above the five year average. In the fourth quarter of the year just ended, by contrast, only 129,100 m² of logistics space found takers.

Antwerp-Brussels This strategic logistics access, part of the ‘Golden Triangle’ which also includes Ghent, led the way in 2014, accounting for 285,600 m² of the total, or almost exactly half. This performance is in line with historical trends. The decentralised zones followed, with 18% of take-up, just ahead of the E313 axis (Antwerp-Liège) at 17%. The Walloon (Charleroi-Mons-Liège) axis contributed a further 10% of the total. Major transactions The largest transaction of 2014 was made by Caterpillar – just under 62,000 m² of built-to-suit space at Grimbergen on the Brussels periphery (and part of the Brussels-Antwerp axis), in a joint project by WDP and Montea. Other large-scale transactions during the year included 44,000 m² of build-to-suit space for supermarket operator Lidl in March-en-Famenne (decentralised zone) and 30,000 m² by VB Logistics in Overpelt (E313 axis). The take-up figures are still being affected by a lack of non-speculative developments: all of the 294,000 m² delivered in 2014 was non-speculative. JLL says that developer are still operating risk-aversion strategies, and are acquiring land ready to react to market demand but not building in advance.

“ Lack of available product is responsible for the investment figure not reaching even higher levels “

Walter Goossens, Head of Industrial Leasing, JLL

BELGIUM REAL ESTATE SHOWCASE 2015 PB

Courtesy of JLL

LOGISTICS MARKET TRENDS

Investment Despite the take-up figures, investment volumes demonstrate that logistics space in Belgium remains very attractive. Some € 152.8 million was invested in 2014 (in transactions of above € 2.5 million), which is 13% above the previous year and up by a similar amount (15%) on the five year average. Once again, lack of available product is believed to have been responsible for the investment figure not reaching even higher levels. This phenomenon is also expected to put downward pressure on yields, which are currently stable at 7% (compared to around 5% to 5.5% for prime office property). The two largest investment transactions of the year were the acquisition of 77,000 m² in Opglabbeek (Limburg) by REIT Intervest, and of 39,000 m² in Puurs by an entity of the CBRE Investors group (from another of its entities). Walter Goossens confirms that investors consider Belgium to be one of the best countries in Europe for logistics investment, but are frustrated not to find enough available product. 24 BELGIUM REAL ESTATE SHOWCASE 2015

The future and the geography… If 2014 was a little disappointing, and 2015 has also started slowly, this begs the question – asked directly to him – of how Walter Goossens sees things going forward: “This year has started slowly, but this does not worry me as there is some demand and many logistics operators and corporates are looking to consolidate their buildings. They wish to establish what we call the mega-sheds. If we have two or three of these transactions of 50-70,000 m², this should lead to relatively high take-up in 2015”. Walter Goossens also shed some light on why some geographical zones perform better than others. Belgium is a small country, so he was asked whether the choice of zone makes much difference… “International companies looking to set up logistics operations have certain centres of gravity they wish to respect. If we analyse what has happened over the past two decades or so, more than 50% of take-up has been on the Brussels-Antwerp axis.

terminals, and these factors are likely to make this zone important for European Distribution Centres. While this axis is Antwerp-Liège, the Liège-Charleroi-Mons axis also has a role to play, especially when operations into France are important”. Tim Harrup ✍

Photo PAL Chris Renault

An operator as important as DHL has told me just very recently that its own clients are looking to this specific area. But multi-modality is also becoming increasingly important, and this is to the benefit of the E313 axis, which has the advantages of the Albert Canal and the future freight railway. There are also various container

Trilogiport : Intermodality in major key Multi-modality is becoming increasingly important. This is to benefit logistics platforms located on the E313 axis, which has the advantages of the Albert Canal and the future freight railway. The best showcase of logistics real estate development in this zone is the trimodal platform Trilogiport. It is rising out of the ground at Hermallesous-Argenteau, a stone’s throw from the city of Liège. Trilogiport is set to be completed by the end of this year, particularly as the European subsidies (Feder) impose that the works are completed by this date. The platform will accommodate logistics activities, along with the allied transport of merchandise by water, rail and road, and with the priority vocation of bringing together the shipments upstream of the northern European maritime ports. The ambition is to attract companies which use the waterways along with major European distribution centres with high added value and which can generate much new employment: no less than 2,000 jobs according to a study carried out by the Waterways and Intermodality Promotion Board. The container terminal covers 15 hectares (with 700 metres of quaysides along the Albert Canal), reserved for the loading and unloading of barges. The logistics zone, destined to accommodate EDC’s (European Distribution Centres) occupies the lion’s share of the site, with 41.7 hectares. Two companies specialising in logistics real estate have obtained operational concessions: Warehouses DePauw and Deutsche Lagerhaus Trilogiport, for ¼ and ¾ of the zone respectively. The port sites cover a further 22 hectares, the service zone a little less than 2, and finally, there is an environmental integration zone of almost 40 hectares. A total of 64 hectares for a project impatiently awaited in Liège. more and updated information on www.pro-realestate.be/projects/Trilogiport

BELGIUM REAL ESTATE SHOWCASE 2015 25

Marc Detiffe

In the online projects library www.profacility.be/workplace, discover the reports showing and highlighting the best cases of Workplace design and build.

BEIERSDORF I BRUSSEL www.profacility.be/workplace/beiersdorf

CENTER FOR CREATIVE LEADERSHIP I BRUSSELS www.profacility.be/workplace/CCL

EDF LUMINUS I BRUSSEL S www.profacility.be/workplace/EDF

IBECOR I BRUSSELS www.profacility.be/workplace/ibecor

BIVV I BRUSSELS www.profacility.be/workplace/IBSR-BIVV

Marc Detiffe SANOMA I MECHELEN www.profacility.be/workplace/sanoma

Polo Architects

ONTEX I AALST www.profacility.be/workplace/ontex

Marc Detiffe

 Marc Detiffe

OLV ZIEKENHUIS I AALST www.profacility.be/workplace/OLV

ELIA I BRUSSELS www.profacility.be/workp

Marc Detiffe

Service de presse OLV Aalst

ALLER MEDIA I KOPENHAGEN www.profacility.be/workplace/allermedia

BP ww

Toon Grobet

BAXTER EUROPE I PARC DE L’ALLIANCE I BRAINE-L’ALLEUD www.profacility.be/workplace/baxter

Lars Kaae

WORKPLACE PROJECTS LIBRARY

26 - PROFACILITY GUIDE 2015 BUILDING I GHENT VAC GENT VIRGINIE LOVELING www.profacility.be/workplace/VAC-Gent

VERITAS I KONTICH www.profacility.be/workplace/veritas

ING ww

Yvan Glavie

Marie Bourgonjon

BULL I BRUSSELS www.profacility.be/workplace/bull

Marc Detiffe

CLEAR2PAY I DIEGEM www.profacility.be/workplace/clear2pay

EULER HERMES I BRUSSELS www.profacility.be/workplace/eulerhermes

Yvan Glavie

Thomas Vanhaute

USSELS ility.be/workplace/elia

Marc Detiffe

Valérie Clarysse

JONES DAY I BRUSSELS www.profacility.be/workplace/jonesday

ING LIFE & NON-LIFE I DIEGEM www.profacility.be/workplace/ING-LIFE

JBC I HOUTHALEN www.profacility.be/workplace/jbc

MIVB - Royal Atrium I BRUSSELS www.profacility.be/workplace/stib

Marc Detiffe

An Desmedt

-BIVV

Yvan Glavie

Geoffrey Fritsch

Marc Detiffe BPOST BANK I BRUSSELS www.profacility.be/workplace/bpost-bank

SIBELCO I ANTWERP www.profacility.be/workplace/sibelco

Photo courtesy of Befimmo – design by Jaspers-Eyers Architects

Photo Bernard De Keyzer

Town planning I European District on the move Joint interview of Marie-Laure Roggemans and Alain Hutchinson, commissioner appointed by the Brussels Government

52 Town planning I Tour & Taxis evolving above and below ground Interview with Michel de Bièvre, CEO of ‘Projet Tour & Taxis’, EXTENSA’s subsidiary

28 PROFACILITY GUIDE 2012

B Offices I Letting & investment market

Analysis of projects and market trends per district

Photo Bernard De Keyzer

Architects : Neutelings Riedijk – Conix RDBM architects

Town planning development strategy

Kristiaan Borret, the Brussels Region newly appointed ‘Bouwmeester’: my role is to bring coherence to public and private development projects

→→

trict

Céline Fremault: it is urgent to build more subsidised and social housing, also via PPP

Image Art & Build Architects / Jean-Paul Viguier / KCAP

Town planning I City Densification

Real estate development Shopping centers emerging Upcoming fierce competition for Brussel shoppers

Property management I Sustainable building Brussels region public subsidies and assistance

PROFACILITY GUIDE 2012 29

BRUSSELS REGION

BRUSSELS REGION TOWN PLANNING

European district and PUL on the move There are changes in the way the Brussels Capital Region is going to manage the

European District. A new position of Commissioner has been created, and in January,

Alain Hutchinson began work in the role. One of the best known personalities on the

Brussels real estate landscape – Marie-Laure Roggemans or ‘Madame Europe’ – is to leave her post in July (although she will remain as President of the Historical Sites and

Monuments Commission). We asked both of them to explain the change, and to give the latest evolutions on the ‘Projet Urbain Loi’ (PUL) and the European District in general.

Bernard de Keyzer

How do your roles currently fit together? Alain Hutchinson: Our two roles overlap somewhat. Up to now the Region’s energy was expressed through Marie-Laure Roggemans, ‘Madame Europe’, within the European district. She was involved in all the projects in the district, and including of course the Projet Urbain Loi. My function is a little different because it is new, a desire of the Brussels Government to operate its own policy in terms of welcoming international bodies to Brussels. Previously, this was under the umbrella of the Federal Government. But after the sixth reform of the State, it became necessary to make a change. The various bodies coming into Brussels will be able

30 BELGIUM REAL ESTATE SHOWCASE 2015

to have a single point of contact, a political representative and not an ambassador connected to the Foreign Ministry. We are trying to shorten the time between them expressing their needs, and responding to these. It is necessary to receive these bodies under the best possible circumstances – Brussels needs them – and they need someone who can furnish precise and rapid responses. The Commissioner also has a wider sphere of competence than Marie-Laure Roggemans has always had.

Bernard de Keyzer

Marie-Laure Roggemans: Alain Hutchinson will have a much wider remit than myself. When I was named to this post in December 2005, there was no vision for the European District. There had been a number of masterplans which had never come to fruition. When Charles Picqué asked me to take on this role, the imperatives were to synthesise the master-plans, and everyone agreed that making a mixed use district was vital to the future of the district. Secondly, we needed structural relationships with the European institutions. The objective was very specific.

Alain Hutchinson “ With the commissioner position created, the various bodies coming into Brussels will be able to have a single point of contact, a political representative and not an ambassador connected to the Foreign Ministry.“

Alain Hutchinson: The difference when I take over completely is that I will not manage the dossiers themselves, but I will continue to work with the ADT as well as with other administrations. Turning to the Projet Urbain Loi itself, are the figures still the same? Marie-Laure Roggemans: No, not at all, they have changed because since the programme was drawn up in 2009, when the European institutions occupied 170,000 m² and needed an extra 230,000 m², there have been movements. Today the situation is roughly the opposite in terms of numbers, but the position changes all the time, as the institutions leave some buildings and move into others. But the major principal remains the same: to break up the ‘corridor’ effect of the Rue de la Loi. The local planning regulations allow for the number of square metres to be increased by 20% when a building is demolished and replaced by another, as you know. If this was done systematically on the Rue de la Loi, the situation would be worse than before. The masterplan of Christian de Potzamparc favoured this increase and also favoured the traditional Brussels model of adjacency. The second important point is that in freeing up the ground, the transversal elements could also be created, and on top of this, the communes of Saint-Josse and Ixelles could be linked together, which wasn’t the case before. When the district committees oppose some of the ideas, they forget that the bourgeoisie which previously lived in the European district made the Rue de la Loi a barrier between them and the popular district of Saint-Josse. So the master-plan is still current, and it achieves the objective of breaking up the barrier and making the road more transversal, and creating green areas. The masterplan of

Christian de Potzamparc was selected because it enables a spread over a long time – gradual achievement over 25 years or so… The ‘PUL’ is a relatively restricted area – will all of the European District be included in a development plan? Marie-Laure Roggemans: There will be work groups between the City and the Region, because at the moment it is the Region which imposes the planning rules. But we have to work with the PPAS which is drawn up by the city. So we have to find agreement between City and Region. Alain Hutchinson: The form all of this takes is indeed important, and I want to be able to speed things up. I have spent some time over these first months organising meetings between the European institutions at the highest levels and the Region’s ministers. At the end of the first meeting towards the end of March, it was agreed to set up work groups between the Commission and the Region and also between the European Parliament and the Region. The Parliament also has a series of needs. The next big get-together will be at the end of June, when we will handle all these things face to face. Previously, there tended to be huge task forces with maybe 40 people or so – and little in the way of efficiency – but now we want to have small working groups with the right people from both sides.

BELGIUM REAL ESTATE SHOWCASE 2015 31

The tower named ‘The One’ which is to be constructed by the ATENOR group on

the site of the former Crowne Plaza hotel, just below the European Commission’s

‘Justus Lipsius’ building, will represent a new icon on the Rue de la Loi. The tower fits perfectly into the ‘Projet Urbain Loi (PUL) concept drawn up by French

architect and planner Christian de Potzamparc. In a total break with tradition, the mixed nature of the tower (offices and residential accommodation) will be found horizontally – that is to say on each floor of the building. The offices will be along the Rue de la Loi façade, and the residential accommodation

image:

d’Etterbeek.

Buro II – Archi + I for ATENOR

along the Chaussée

32 BELGIUM REAL ESTATE SHOWCASE 2015

image:

Buro II – Archi + I for ATENOR

We will structure the relations more flexibly work more closely together, and more efficiently. I point all this out because while under MarieLaure Roggemans there has been very significant progress where the thinking and the structuring of the plans is concerned, what has been lacking is structured and efficient relationships between the various partners on both sides. Too much time has been lost on both sides. I am an optimist in all this, but I am not a blind idealist – I know that the district committees sometimes have very dogmatic views we have to consider, for example. The actions we take have to respect the (few) residents who live in the district now, and above all those who will come and live here in the future. What is actually happening in the district now – are things beginning to change? Alain Hutchinson: There will very soon be changes, particularly in terms of mobility. The Schuman-Josaphat line, for example, will be open in December – it is scheduled for December 13th. This will have a considerable beneficial effect in terms of traffic congestion. The European institutions around Schuman and the Place du Luxembourg, and in the district in general, will be served by train directly from Zaventem. And then the metro will become automated from 2017-2018, which will enable greater frequency and again have a beneficial effect on traffic. The space around the Schuman roundabout and the Rue de la Loi is being redesigned: it will be provisionally re-laid out for the end of this year, and definitively for the end of 2017 or 2018. These will be significant and visible changes. There will be changes to traffic flows too, with the narrowing of the Rue de la Loi, Rue Belliard and the Avenue de Cortenbergh. I think these things will act as a catalyst for everything else. … and what about buildings? Alain Hutchinson: Where buildings are concerned, permits have now been granted for the two towers scheduled for the Rue de la Loi within the PUL. The ground is being prepared for the first tower, and developer Atenor has been demolishing the Europa Hotel ready to build the second tower. We are also trying to give a push to the establishment of a PPAS to reinforce the PUL and give the necessary guarantees, because everything which is planned for the district at the moment has recourse to the district committees and so on.

Bernard de Keyzer

BRUSSELS REGION TOWN PLANNING

Marie-Laure Roggemans “ The major principal of the PUL remains the same: to break up the ‘corridor’ effect of the Rue de la Loi. The local planning regulations allow for the number of square metres to be increased by 20% when a building is demolished and replaced by another, but in height to free up the ground.“

The Region has need of the European institutions, but of course their needs have to take account of the local inhabitants too. There is also movement in terms of both the Commission and the Parliament. This latter is going to vacate the iconic oblong building it occupies (the ‘Caprice des Dieux’) in terms of office use. The 600 or so offices will disappear and the building will become a sort of meeting and conference centre. So all these people have to be relocated – and of course the Parliament’s administration already occupies a building on the Square de Meeûs in the former Belgian State Security building. The Parliament is also to occupy the Atenor building currently known as ‘Trebel’, but which is being renamed ‘Martens’ by the Parliament. So things are moving quickly. Might the Commission still create a new hub, such as was previously suggested for Delta? Alain Hutchinson: Well the Commission currently occupies some 61 buildings, and it will have more needs. But one of the main objectives is to avoid being too thinly spread, both for reasons of security and good functioning. So it wishes to find places where it can establish concentrations, without necessarily being all in exactly in the same place. And there is no longer question of the Commission leaving Brussels, as was once suggested. Interview by Tim Harrup ✍

BELGIUM REAL ESTATE SHOWCASE 2015 33

BRUSSELS TOWN PLANNING

Tour & Taxis is evolving above and below ground At the beginning of this year, Extensa acquired the 25% of shares in Tour & Taxis held by each of the previous two other joint shareholders, and became 100% owner of the site.

Michel de Bièvre, CEO of ‘Projet Tour & Taxis’ which is the Extensa company developing the site, tells us of the latest developments.

T By 2017 the Flemish authorities are to occupy Meander within the vast renovation / reconstruction project ‘Tour & Taxis’. It will feature an internal street running along the whole length of the building, a feature it will share with the most recognisable building within Tour & Taxis, the renovated Royal Warehouse. This ‘street’ will act as a link for all of the common functions to be found within Meander, such as the restaurant, reception rooms, lounge… The offices will be located around internal courtyards which will benefit from a high degree of natural light.

Bernard de Keyzer

he most recent developments at Tour & Taxis in 2014 were the inauguration of the new headquarters of Bruxelles Environment, a yet iconic building, and the announcement that the Flemish authorities would indeed take the to be developed ‘Meander’ building.

34 BELGIUM REAL ESTATE SHOWCASE 2015

What is next on the agenda? In March we started the construction of the first residential accommodation. We already had a permit for 218,000 m² of housing, which is quite a lot. This permit has been modified and we have the modification allowing us to start with 13,000 m² of medium rent housing. The foundation works have therefore started and construction starts this spring on 115 apartments, to be finished by the end of next year. These are being marketed and there is already a good deal of interest. There are passive and low energy constructions.

Looking a long way into the future, how many apartments will there be? We have an agreement with the Brussels Region government for 370,000 m² and we are negotiating the PPAS at the moment. This total surface area schedules a minimum of 40% of housing – the City would like 50%. This will give at least 185,000 m² of housing – some 2,000 apartments with a likelihood of 4,000 persons living there. Some 10% – 37,000 m² – of the space will be for public equipment and the remaining m² for offices and retail. What about the park which forms such a large part of this development? This will occupy an area of 9 hectares and we have recently finished the first segment of 4 hectares, located at the Pont de Jubilé. Everything is planted and this spring should see the first leaves on the trees. We have planted 239 quite large trees and 2,300 small willow trees which will grow quickly, and which also have an ecological function.

They will improve the soil with their leaves which will fall in autumn and enrich it, and they will ventilate the ground too. On top of this they will help the large trees to grow higher because they need to be above the others. After a certain time we will then remove all the willows. And under all of this are two storm basins which will benefit the large residential zone behind the Maritime Station. This zone will see 90,000 m² of housing. Tell us about the car parking. At the entrance to the site, near the Royal Warehouse, we have already constructed an underground car park of two floors, which is now ready to open. We have an environmental permit for the first level, and we are awaiting the permit for the second level – this level will see the parking from the Maritime Station transferred here. And this car park means that the major exhibitions – Brafa, Entreprendre, Realty… – will have underground car parking too. The public square above will be equipped with a glass cone which will descend from above ground right down to the second level and provide a well of natural light. This is important because we are going to construct an underground circulation route both to the Sheds and to the Maritime Station – a whole network of underground circulation routes. Later, we will construct an 800-space car park under the residential buildings behind the Maritime Station. And above? Above ground, we are going to construct a driveway which will start at the Avenue du Port and run between the Sheds and the Bruxelles Environnement building, all the way up to the Maritime Station, opening out into the park. There will also be a new public square close to the royal Warehouse. This will start to be planted at the end of this year, although the Meander worksite may hinder this a little. What further timing details can you give us? In a year or so this entrance to the project will be complete, and in 2017 the Meander will be finished, so then we will have the Royal Warehouse, the Sheds, the Bruxelles Environnement building, Meander, the Square, the underground car parks, the Driveway… then we will continue to build the residential accommodation. Moving on to public transport, the STIB has promised a new ‘North Station-Up-site-Tour & Taxis…’ tram line and a bridge across the canal…

Michel de Bièvre CEO ‘Projet Tour & Taxis’ “ We have an agreement with the Brussels Region government for 370,000 m² and we are negotiating the PPAS at the moment. “

The permit request for the bridge has been lodged with the authorities and the impact survey is being completed. In the first instance, this route will be served by buses and much later – maybe 2020-2022 – we should see the tram. A lot of this depends on the continued development of Tour & Taxis, and especially the housing of course. But in principal the bridge across the canal should be constructed for 2016-2017, taking buses then trams. The new Mobility Minister – Pascal de Smet – also has ideas for a sky-metro, and the STIB is looking at this, though for a much later date. Do you see Tour & Taxis forming part of a mega-district with Up-site, Tivoli…? This has to be seen within the perimeter of the Place Rogier, the North Station and North district, the Citroën building, the existing canalside buildings such as the KBC… And with all this in mind, we have bought the ‘Sand-Pit’ terrain alongside AG Real Estate’s ‘La Poste’. This is where the canal crossing will be, which is why we bought it. Here, we will be able to construct a further 15,000 m². So I see the new district as being quite a lot bigger – running from Tivoli right up to the Porte de Ninove, and including Dansaert. This will be a new district for the city with a huge amount of housing and of facilities. Interview by Tim Harrup ✍

BELGIUM REAL ESTATE SHOWCASE 2015 35

BRUSSELS REGION INVESTMENT & OFFICES MARKET

The office market is returning to good health Was 2014 the year of recovery? The figures clearly seem to indicate this, both in terms of take-up and of investment. By contrast with 2013, the public sector was particularly active in 2014. It generated almost 50% of the total take-up of around 460,000 m², an increase of close to 39% compared to the previous year.

T Guibert de Crombrugghe Managing Director, FRICS de Crombrugghe & Partners

Patrizia Tortolani Economist, MRICS de Crombrugghe & Partners

he demand from the public authorities and institutions is genuine. Amongst several large scale transactions recorded in 2014 by this sector are to be found the leasing by the Flemish authorities of Meander (50,000 m²) on the site of Tour & Taxis in the North district under a fixed 18-year contract, the rental by Actiris-VDAB of 36,000 m² in Astro Tower on the Avenue de l’Astronomie at the edge of the Leopold district, and the rental of 16,000 m² by the European Commission in Livingstone II on the Rue Joseph II. For the future, the Flemish authorities have already announced that they will need around 100,000 m² and the City of Brussels has indicated it will require 15,000 – 40,000 m². The European Commission, which currently occupies around fifty buildings in Brussels, is envisaging a restructuring of around 300,000 m² by 2025, when most of its lease contracts come to an end. It is likely to leave the smaller and unsuitable buildings and replace them by larger and better performing ones. Two calls for tender in this respect will be launched in 2015, for two buildings: one of 30,000 m² and one of 100,000 m² by 2021!

The many projects in the pipeline and the expected restructuring of the public sector and the banking-insurance segment, implying a rationalisation of space occupied per work station, nevertheless make a rise in vacancy over the coming months quite likely. Converting obsolete office buildings The activity involving converting unsuitable and second generation office buildings is intensifying, as the latest survey by the Office Observatory, confirms. In 2013 alone, around 137,000 m² of offices were converted to other uses, of which 72% for housing, but also 19% for public services. The ‘Office Observatory’ report calculates that between 1997 and 2013, some 857,500 m² of offices were converted to other uses, of which 65% to housing. This represents an annual average of some 50,000 m² over the 17

“ Over 17 years, some 857,500 m² of offices were converted to other uses, of which 65% to housing “ Where the private sector is concerned, the results were more mixed, as take-up in this sector was stable compared to 2013. This is due, among other factors, to the effects of the economic crisis and also to a rationalisation of the space occupied per work station (between 10 and 12 m²) – some 25% less than the average area previously used as a reference. Vacancy The vacancy level has remained relatively stable at around 10% for the whole of the Brussels market. This is in particular due to the lack of

36 BELGIUM REAL ESTATE SHOWCASE 2015

speculative projects which have seen light of day during this crisis period. It is no surprise to observe that it is the decentralised and peripheral districts which record the highest vacancy levels (around 15% and 22% respectively), followed by the Louise district at some 12%.

past years (excluding 2014) and almost double this for the past five years, which confirms the speeding up of the conversion process. A few large scale buildings are perfect examples of this process. Amongst these are Livingstone (former site of the Popular Insurance company and right in the heart of the European district), converted to 120 apartments, and the former Solvay headquarters in Ixelles which will be converted – among others – to a student lodging building, a rest home and apartments.

In parallel with this, the average rate of renovation of existing buildings (232,000 m²) is being maintained and the virtual lack of significant new projects on the market since 2012 is leading to a degree of rebalancing. The only operation of any size (30,000 m²) to have received authorisation in 2013 consists of the demolition/reconstruction - with an increase in surface area - of an office building on the corner of the Rue Belliard and Rue de Trèves (the Trebel project) in the European district.

The 30,000 m2 Wilfried Martens building project (formaly Trebel Building) developed by ATENOR has been sold to the European Parliament. Completion of the building is expected for next year.

“ The European Commission will launch calls for tender in 2015 for two buildings: one of 30,000 m² and one of 100,000 m² by Over the past five years, this transformation has led to a net decrease in office stock of 227,000 m², out of a total of over 13 million square meters. Great increase in investments The investment market has followed the same upward trend as the previous year, and particularly for the office market which has recorded an increase of almost 66%, with a volume of around 2.081 billion Euros invested. As for the previous year, the positive investment figures are above all the result of several large transactions of over 75 million Euros. The outstanding transaction of 2014 was without doubt the acquisition of Covent Garden by Hannover Leasing, which had also made itself noticed the previous year through the acquisition, with its Chinese partner, of the shares of RAC I (owner of the first phase of Belair). This was one of the major transactions of 2013.

Guibert de Crombrugghe Managing Director, FRICS de Crombrugghe & Partners Patrizia Tortolani Economist, MRICS de Crombrugghe & Partners

BELGIUM REAL ESTATE SHOWCASE 2015 37

 Jaspers-Eyers Architects for Atenor

Other large scale projects are located on the Rue de Genève (19,000 m², over 200 apartments), Rue aux Laines (15,000 m²), Chaussée Saint Pierre in Etterbeek (8,700 m², demolition/reconstruction).

BRUSSELS REGION INVESTMENT & OFFICES MARKET

Analysis of market evolution by b Where take-up in 2014 is concerned, most of the activity was once again concentrated

in the city centre districts, which accounted for almost half of all take-up in Brussels and its periphery. The Pentagon and Louise made the most progress, with + 80% et +62%

of take-up respectively, compared to 2013. The European district remains Brussels’ principal office district, with a 25% share of take-up.

CENTRE / PENTAGON

The pentagon takes in the whole of the zone contained within the inner ring road and is characterised by an excellent mix of functions and services as well as excellent accessibility by public transport, which represents an overriding criterion in selecting a location, particularly for the large institutions and public administrations. The principal occupants to be found here are Belgian financial groups, ministries and private companies. Major projects underway Bel Air (the former State Administrative Centre). In time, the conversion of the site will offer 150,000 m² made up, among others, of 43,000 m² of housing, 5,000 m² of retail space and 19,000 m² of public facilities including a school and a crèche. Chambon. This year the converting of the former historic and prestigious CGER headquarters located on the Rue Fossé aux Loups will be partially finalized. Together, the renovations and recon-structions will see a mixed use complex emerge, including 224 apartments, 20,000 m² of offices, 135 student flats, 199 parking spaces and some shops. Treurenberg. Located in the proximity of Central Station and of the Royal Park, this building of 10,000 m² of offices is a landmark project for its developer AXA RE Belgium. It will be a ‘Zero Energy’ building and is set to receive ‘Breeam Excellent’ Environmental certification. It will become a reference on the market. Its construction should be completed in June of this year. Speculative development involving the Law Courts Regent Invest, an investment vehicle of the Jaspers family, has just lodged a request for a planning permit to construct an 8-storey (with 4 underground levels) office building totalling 26,500 m² of offices in place of the existing 18,000 m², on the block in front of the Law Courts, located between

38 BELGIUM REAL ESTATE SHOWCASE 2015

the Rue de la Régence 61-65, Rue Ernest Allard 42 and Rue de l’Arbre. The construction of this building would imply the demolition of the existing buildings which currently house the Police Tribunal and the Justice House. With this project Regent Invest would appear to be anticipating the needs of the Federal Justice Service, within the framework of the future Law Courts. It remains the case, however, that there are many questions to be answered concerning the possible new uses of the lower part of the current Law Courts. And on top of this, the rental level of this building would be too expensive. A rent of 7.2 million Euros per year for the first 20 years and 5.7 million Euros for the following years, has already been mentioned in the press, which is largely sufficient to restore and make secure the current Law Courts (Place Poelaert), even if no study has yet been carried out to verify the actual costs of this work, to bring the Law Courts up to standard. The consultation committee has postponed giving its opinion on the Regent Invest project, which was originally scheduled for March 10th. New use for the former Dexia building Following more than ten years of being abandoned, the renovation of the former Dexia building, located on the triangle formed by the Rue Montagne de l’Oratoire, Rue de la Banque and Rue de Ligne, has finally started. The owner, New Star Global Property Management, has asked for an extension to the planning permit granted in 2011. The renovation of the building schedules the transformation and extension of the building into offices, apartments, archives and other functions, yet to be determined (restaurant, kitchen, conference rooms, fitness centre…). A 200-space car park is also scheduled, for use by building occupants and also by local inhabitants. The building will total 58,000 m² - two storeys higher than at present.

y business district

Results 2014 - Market dashboard : 14,290,000 m² of offices KEY FIGURES

Centre

Midi

Leopold

North

Louise

Decentralised

Periphery

Stock

2,376,000

511,000

3,203,000

1,657,000

860,000

3,212,000

2,470,000

Percentage

17%

22%

12%

22%

17%

49%

22%

18%

16%

48%

35%

11%

Vacancy level**

5,5%

6,5%

5,5%

12%

15,0%

21,5%

Prime rents*

200

185

265

185

210

165

150-125

Prime yields

6,5%

7,5-8,5%

8,5%

of total stock Proportion of second hand buildings

Strong and week points of the various districts of the Brussels Capital Region Advantageous ﬁscal regime

Acces by public transport

Quality of stock

Presence of facilities

Presence of green areas

++ Excellent

+ Good

= Average

- Bad

-- Very bad

* Prime rent : best rent obtained

** Vacancy level : % of oﬃce space immediately available

Sources: de Crombrugghe & Partners / Expertise News / Citydev.brussels ‘Oﬃce Property Observatory’ 2014 report

BELGIUM REAL ESTATE SHOWCASE 2015 39

Master plan for a living station New perspective for the district around the South Station drawn-up by the architect and planner Djamel Klouche with the team of the French architectural bureau AUC. At the beginning of May, the Brussels government gave its approval during the first reading, to the masterplan proposition for the district around Brussels South (Midi) station. The objective of this plan is to move towards a ‘living station’ with a 50/50 balance between offices and housing (not counting infrastructure facilities and services). The structure of the station itself will not be touched, what is crucial is to bring harmony and coherence to both public and private developments. A major priority for this living station plan is to lay out the public areas.

40 BELGIUM REAL ESTATE SHOWCASE 2015

BRUSSELS REGION INVESTMENT & OFFICES MARKET

MIDI DISTRICT

This district is located around the South Station, and has greatly developed over the past twenty years. Its numerous new developments, combined with the arrival of the TGV and the complete refitting of the South Station, have turned it into an office zone in its own right. This district is continuing to mutate, as a new Masterplan for the district around South Station has been drawn-up by the architect and planner Djamel Klouche with the team of the French architectural bureau AUC. At the beginning of May, the Brussels government gave its approval during the first reading, to the masterplan proposition for the district around Brussels Midi station. Along with this, the government will begin drawing up a new PPAS (Specific Ground Use Plan) with a view to definitive adoption in 2016.

LOUISE DISTRICT

The mixed use district is located along the Avenue Louise to the south of the inner beltway and comprises generally older office buildings (over 50% are more than 15 years old), housing, some top of the range retailing, hotels and restaurants. It is largely small and medium private companies which have located here, along with law firms and consultants, attracted amongst others by the proximity of the law courts. The large proportion of ‘old-fashioned’ buildings doubtless explains one of the highest vacancy levels of the central districts, close to 12%, and the policy of the City which, over recent years, has been more oriented towards converting office buildings to residential use. Transformation of an entire uptown block The conversion of the former Solvay headquarters project by developer Allfin is a concrete example of large scale urban rehabilitation. The former Solvay offices enjoy an ideal location between the Avenue Louise and the Chaussée d’Ixelles, and will, during the first phase set to be completed by mid-2016, be converted into 110 apartments, 95 student rooms and a rest home. The remainder of the site will be redeveloped during a second phase, and a permit request has been lodged for this.

Coherent whole for private and public real estate developments The south district masterplan schedules undertaking development projects in the zone in two phases (2018-2020 and 2025). The first phase includes, among others: • redesigning and fitting out of the rectangles; • creating a station hall and reorienting the covered street into quality public spaces; • redesigning the podium unit of the Midi Tower; • the construction of a residential building above the tramway power installations on the Boulevard Jamar; • the realisation of Atenor’s Victor project which envisages 60,000 m² of offices and 35,000m² of housing; • the realisation of the Fonsny 1 project which will comprise 80,000m² of offices on the Avenue Fonsny side.

By 2025, the second phase schedules, among others, the realisation of the second part of the Eurostation project along the Avenue Fonsny, above ground construction on the France-Bara block, which will have to be allocated to a mainly residential function and accommodate at least 40,000 m² of residential accommodation, and finally, constructing the Deux-Gares block.

Conversion of the former Solvay head-quarters into housing BELGIUM REAL ESTATE SHOWCASE 2015 41

NORTH DISTRICT

The North district is the second most important business district in the capital after Leopold. It is a modern zone, located just outside the Pentagon, around the Boulevard Albert II, between the Avenue du Port and the North Station. This district benefits from a good network of public transport facilities. Companies located in this area are from various sectors, and generally have need of substantial amounts of office space. The public sector still represents a substantial proportion. Its development potential remains impressive as witnessed by the numerous projects underway. 4 office towers are still waiting for occupants before works start The 30 flours’ Silver Tower developed by AG Real Estate will offer 33.000 m2 of prime office workspaces. The tower will overlook the Botanic Building and the CNN multimodal transport hub. The Brussels Tower, the former Belgacom TBR tower, will offer ± 59,000 m² of offices after renovation and extension. WTC IV will be the 4th tower of de WTC complex. Developed by Befimmo, this tower will add ± 55,000 m² of office space to the North District. Facelift for the Victoria Regina Tower The 23 floor, 25,000 m² building named ‘Victoria Regina’ which dates from 1978, has just obtained the permit for its next renovation. The project, the work of architects A2RC, schedules retaining the existing structure and providing an entirely new facade, with an immense sphere jutting out at 15th floor level, and giving exceptional views across the Victoria Regina square and the surrounding district.

Silver Tower

42 BELGIUM REAL ESTATE SHOWCASE 2015

For more than 20 years this tower was owned by, and was the Brussels headquarters of, IBM. It was then sold to Spanish owner/developer Luresa. It was occupied for more than 10 years by services of the Federal Police, which recently moved into its new quarters in the nearby Belair project (the former State Administrative Centre). Relocation for 2,600 civil servants of the Flemish Community On the Tour & Taxis site – whose redevelopment will amount to around 148,000 m² of offices -, the ‘Meander’ project has just received a planning permit for the construction of approximately 42,000 m², destined to accommodate 2,600 civil servants of the Flemish Community. The Flemish authorities have confirmed that they are taking this building, and have signed an 18-year fixed term lease which begins when they move into the building in 2017. At that time, the authorities will vacate the 40,000 m² Noord Building, owned by Befimmo and located on the corner of the inner ring road and the Boulevard Emile Jacqmain. Options remain open for this 1989 building, renamed ‘Baudouin’ even though the most likely solution seems to be a demolition/ reconstruction. Befimmo has lodged a permit request for 60,000 m² of offices, new-build and spread across 4 separate towers sharing a common podium unit and to be called ‘Quatuor’.

 courtesy of Befimmo – design by Jaspers-Eyers Architects

BRUSSELS REGION INVESTMENT & OFFICES MARKET

 courtesy of Befimmo – design by Jaspers-Eyers Architects

The former Belgacom TBR tower will offer around 60,000 m² of offices after heavy refurbishment and construction of new additional surface

BELGIUM REAL ESTATE SHOWCASE 2015 43

 Design Jaspers-Eyers Architects for Immobel & KBC Real Estate

Quatuor Project

 image A2RC arhcitects  image A2RC arhcitects

By 2017, Axa Belgium’s new headquarters will emerge on Boulevard du Regent at the edge of the European District

44 BELGIUM REAL ESTATE SHOWCASE 2015

 image A2RC arhcitects

BRUSSELS REGION INVESTMENT & OFFICES MARKET

The Leopold district is the most important business district in the capital. It is essentially the European institutions which occupy this district, along with the major national ministries, and certain Belgian and foreign company headquarters. It has the advantage of an excellent network of public transport, and is in particular served by the Luxembourg and Schuman railway stations, enabling immediate connections with the entire national and international network, as well as with the TGV terminals. Today, around 180,000 m² of surface area is available, of which 40,000 m² is new. The vacancy rate in the European district is around 5.5%, which is down compared to last year. Nevertheless, the number of speculative projects, such as for example Black Pearl, 11,000 m² located on the Rue Montoyer, or the Merode (13,000 m² located at Avenue de Tervueren 41) which are coming onto the market, risk reversing the trend. The European institutions, which are looking for 27,000 m² for the Commission, 12,000 m2 for the European Parliament and 10,000 m² for the SRB (Single Resolution Board) have nevertheless expressed an interest in these two projects. Well-filled project pipeline The development market remains active in this district, which is seeing the development of several large projects like Belliard 40. The necessary permits for this new project having already been granted, Cofinimmo has decided to start the demolition and reconstruction works, including in particular the laying out of a plaza and a green area adjacent to the footpath, and the construction of a luminous 5-storey atrium looking out over an interior garden and visible from the road. By 2017, the building will offer some 17,000 m² of modern, flexible and sustainable offices.

Realex. Located on the Rue de la Loi, alongside the The One project (former Brussels Europa), this site of a little over half a hectare will offer more than 45,000 m² of mixed development, including an office tower (± 39,500 m²) completed by conference rooms, a retail zone, apartments, a car park and a vast public area. Works are scheduled to begin during the course of this year. The One (Brussels Europa). In June 2005, Atenor acquired the Crowne Plaza Brussels Europa hotel in order to transform it into a mixed complex. Located at the corner of the Rue de la Loi and the Chaussée d’Etterbeek, this mixed use project will include ± 29,000 m² of offices and around a hundred residential units. The permit was granted in November 2014. Demolition works started in September 2014 and were scheduled to be finished in the spring of this year. Trebel. Located at the corner of the Rue de Trèves and the Rue Belliard, this Atenor project consists of the demolition and reconstruction of a new 30,000 m² office building which has received a BREAAM ‘Excellent’ pre-evaluation. In 2012, the European Parliament reached an agreement with the developer for the acquisition of the project once it is completed. Works began in the spring of 2013 and are set to last until 2016. AXA Belgium new headquarters. AXA Real Estate has just started the transformation of the Trône-Régent block, destined to become AXA Belgium’s new headquarters by 2017. The project will amount to 32,000 m² of offices and will involve the demolition/ reconstruction of the Régent I building and the renovation, with retention of the listed façade, of the Régent II/ Trône block. Regarding energy efficiency, the building will be passive and certified Breeam Excellent.

Beliard

 Art & Build Architects for Cofinimmo

 image A2RC arhcitects

LEOPOLD DISTRICT

BELGIUM REAL ESTATE SHOWCASE 2015 45

BRUSSELS REGION INVESTMENT & OFFICES MARKET

DECENTRALISED

The decentralised zone includes the other districts located within the 19 communes of Brussels. It is less homogenous and office buildings zones are concentrated along the major thoroughfares, such as the Chaussée de La Hulpe, Boulevard du Souverain, Boulevard de la Plaine, Boulevard du Triomphe and Boulevard de la Woluwe. Some of these districts suffer among others from a lack of good accessibility by public transport, and a lack of supply of new or modern buildings. Although their share of take-up in 2014 remains limited, they nevertheless recorded an increase of almost 60% in take-up, compared to the previous year. The most important transaction was the acquisition for own occupation by the commune of Uccle of a 13,000 m² building located on the Rue Gatti de Gamond. While these decentralised districts still offer substantial reserves in terms of further urbanisation, developers are not very active on the office market in this zone, and few projects are expected in the coming months. This has advantages in terms of a decrease in the vacancy rate (with great differences according to district), but the major risk is growing disinterest on the part of investors and developers.

Brussels City Docks Atenor has lodged a first planning permit request for a part of the site along the Boulevard Industriel and which forms part of the Biestebroeck industrial zone (Batelage basin) at Anderlecht, which it acquired in 2011 via the ‘SA Immobilière de la Petite Ile’ company. This site was initially scheduled for economic activities but has been transformed by the Region into a ZEMU within the Regional Ground Use Plan (PRAS), thus allowing residential accommodation to be constructed for up to 40% of the surface area. The permit request involves the construction of 3 buildings to accommodate integrated services to businesses, a rest and care home, a serviced residence and shops, the total being around 38,800 m². The consultation committee has just given a favourable opinion under certain conditions, such as the provision of a high degree of mixed use at ground floor level so that the areas dedicated to economic activities are not offices alone. In total, this project known as City Docks, has a development potential of over 165,000 m².

 courtesy of Assar Architects

Projects delivered and to come The renovation of the 12,000 m2 of Triomphe I building – located Boulevard A. Fraiteur 15-23, opposite the VUB university is completed, as well as the ‘Veridis’ project by Banimmo in Auderghem, (avenue Hermann Debroux) whose 6,600 m² of

low energy offices are being built to suit for Marsh which has leased the building for 15 years from 2015. Banimmo wishes also to develop 3 ‘built to suit’ buildings with a total surface area of 22,000 m² on a lot of 1ha 47a located in the Parc Da Vinci at Evere and with a theoretical construction potential of at least 30,000 m². The project is set to be called ‘Factor Three’.

New ‘built to suit’ buildings to arise in Evere in the Da Vinci business park 46 BELGIUM REAL ESTATE SHOWCASE 2015

 courtesy of ATENOR

Atenor‘s ‘City Docks’ mixed-use project is fully in line with a dynamic of sustainable urban development

BELGIUM REAL ESTATE SHOWCASE 2015 47

BRUSSELS REGION INVESTMENT & OFFICES MARKET

RING AND PERIPHERY

This zone, located outside of the Brussels Capital Region, takes in those communes alongside the Ring (Machelen, Zaventem, Waterloo etc.). It has grown considerably since the 80’s with the development of numerous office parks. This first took place around the airport at Zaventem (Keiberg, Airway Park, Airport Business Center, Ikaros, Airport Plaza, Astra Gardens, and later Pegasus, Corporate Village, Airport Plaza) which is thus a zone in its own right, and then extended towards more distant zones such as Waterloo, Braine l’Alleud, La Hulpe, Hoeilaert, etc. (Parc de l’Alliance, Waterloo Office Park, Collines de Wavre, and more recently Axis Park etc.). The major attraction of this zone was originally to be found in more competitive rents than in the city centre, allied to a more advantageous fiscal regime. The major problem remains access to these parks, less well served by public transport and with a road network often congested at peak hours even though a genuine effort to improve the transport network is to be observed, especially at Zaventem where since June 2012 the new Diabolo train service has been providing more rapid access between the north of the country and Brussels National airport. This zone performed less well in 2014, with takeup down by 8% compared to the previous year. Airport Village There are few new projects in the Periphery North, with the exception of ‘Gateway’, the new development by Codic and Immobel, recently much in the news because the project has just been acquired by Befimmo at an initial yield of 4.65 %.

Axis Parc, Mont-Saint-Guibert

48 BELGIUM REAL ESTATE SHOWCASE 2015

This building will offer some 39,000 m² of offices and other facillities to Deloitte from 2016, the date when the project should be complete. This project constitutes the first phase of the development of the ‘Airport Village’ project which schedules the gradual installation of offices, meeting rooms and conference centres over a total surface area of 400,000 m². Brabant Wallon Most new developments are concentrated in the Periphery South, including notably the Centre Monnet at Louvain-la-Neuve (± 40,000 m² by 2017-2018), Nivaxis (Axisparc Nivelles (22,000 m²) – permit requested), the Genesis in the Parc de l’Alliance (± 5.900 m² - permit granted), the last phase of Axisparc at Mont-Saint-Guibert, scheduling the construction of the 9 remaining buildings with a total surface area of 25,000 m² of offices and divisible space essentially for the use of SME’s. It should be possible for works to start during 2015.

Guibert de Crombrugghe Managing Director, FRICS de Crombrugghe & Partners Patrizia Tortolani Economist, MRICS de Crombrugghe & Partners

BRUSSELS REGION TOWN PLANNING | RETAIL

Upcoming fierce new competition for Brussels shoppers To say that Belgium has traditionally been slow to see the appearance of new shopping centres, is something of an understatement. Over the past years there have been numerous presentations, press conferences, assurances… about the imminent arrival of

the Mall of Europe shopping centre (Neo, Heyzel), Uplace at Machelen and Docks Bruxsel close to Laeken.

o far, none of them has opened its doors. So we take a look at the current state of play of these three centres to see how near we are getting, and also turn our attention to two city centre projects. First of all, Docks Bruxsel, which is clearly going to win the race, despite a last minute hitch. The recent cancellation of its socio-economic permit for administrative reasons has no bearing on the construction of the project, which is still set to open its doors on October 20th 2016. Real estate developer Equilis confirmes that the works, which actually began around a year ago, are on schedule and that the cleansing, waste removal, demolition and foundation works are now finished. The structure of the first new building is now also emerging from the ground. Equilis has also announced also that these retailers already confirmed they will be part of

Docks Bruxsel : Media Markt, H&M, Match, JBC, Michael Kors, Sequoia, River Woods, Superdry and One Step. Good news arrived also at the end of last year with the Brussels region authorities announcing that, by 2025, the shopping and leisure center Docks Bruxsel would be part of an eco-district to emerge on the adjacent plot of 30 ha; 3,000 residential units to be build. Problems overcome at Uplace Moving to Machelen, the 190,000 m² Uplace retail, leisure and office project close to Brussels airport, has been the subject of much controversy, cancelled permits etc. But it is described by its developers as being ‘on the home straight’. Uplace CEO Jan Van Lancker has said that the problems encountered in the past, involving permits being granted and then annulled, had now been addressed.

BELGIUM REAL ESTATE SHOWCASE 2015 49

image : Benoy / Jaspers-Eyers Architects

Uplace

BRUSSELS REGION TOWN PLANNING | RETAIL

The company had been advised by the highest environmental body that the measures it has taken are satisfactory. This means that complete authorisation is expected during the course of 2015. The first concrete news to confirm this came earlier this year when the Flemish authorities gave their approval to the overall space plan. However, the amount of space for the peripheral small shop units has been reduced by a third. And these authorities, in the person of Environment Minister Joke Schauvliege, have indicated that one of the main points of contention – mobility and access – has been solved because a high frequency public transport service will be put and place, along with a railway station. If all really is now in place, works will start in 2016 and the centre is scheduled to open in 2018. The shopping centre, with its shopping street set to accommodate 300 retail units, is already substantially pre-let, to brands including Zara, Pull&Bear, Bershka, Massimo Dutti, Tommy Hilfiger…

Neo selects its team Neo is a project which, it is fair to say, has been something of a thorn in the side of the Brussels government for quite a long time. But this megaproject has taken a huge leap forward: the consortium which is to develop the first phase of the complex has been selected: UnibailRodamco/CFE/Besix, a French-Dutch-Belgian mix for what will constitute a complete new district on the north-eastern edge of the Brussels Region alongside the border with Flanders. A major international team has been gathered for the phase 1 of Neo project called ‘Europea’ : the French Master Architect Jean-Paul Viguier will coordinate all conception teams and work closely with the Brussels architecture bureau Art & Build. The architectural intention for Europea consists of creating a residential park and public spaces on more than 3 hectares, positioned above all the retail and leisure activities, offering a new district with an exceptional appearance.

Belgian retail scene There have been some movements on the rental level front in the Belgian retail scene this year. Patrick Tacq, Head of Retail at CBRE, has given us the prime rents in ten of the top shopping centres and High Streets over 2014.To make a comparison, we have also published the previous year’s figures. The moves can be summed up as the very best High Streets having moved up a little, but all other categories tending to be stable or sliding a touch. With the three new shopping centres to open in the Brussels region, completion for the Brussels shoppers will increase and most probably upset these ranking which remain more or less the same during the last years.

Top Belgian shopping centres by rental level City

Rent: €/m²/year 2014

Rent: €/m²/year 2013 1,600

Brussels Woluwe

1,400

1,600

Brussels

1,000

1,400

950

1,000

St. Niklaas

50 BELGIUM REAL ESTATE SHOWCASE 2015

Name

Antwerp Wijnegem 1,500 City 2 Waasland

Brussels Westland

850

Louvain-la-Neuve L’esplanade

850

950

Mons

850

900

Les Grands Prés

850

Liège Belle-Ile 800

950

Charleroi

650

Ville 2

750

Liège Médiacité 550

600

Kortrijk

700

K in Kortrijk

400

There will be 590 residential units, along with other facilities required by a new residential district of this size (crèches, retirement home…). Europea will see the construction of a large shopping centre of some 81,000 m2. The Mall of Europe is set to include 200 retail units and 30 restaurants. The consortium will inject 800 million Euros into Neo, of which 180 million will be transferred to the City of Brussels. The City will make up this figure to around 350 million Euros to be used for the infrastructure, (park, roadways etc.) along with the conference centre (phase 2). Neo Phase 1 (Europea) is scheduled to be finished in 2021. The major elements of phase 2 have been announced as the 5,000 seat convention centre and a 250-room high class hotel. Phase 3 will follow with more housing, another hotel and public facilities. It is still expected that the whole of Neo will be completed by 2023 or 2024 at the earliest.

Image : Art & Build Architects / Jean-Paul Viguier

City centre also in the news To complete this round-up of shopping centres, we move into the centre of Brussels. Downtown near the Grand’Place, AG Real Estate has now given details of its renovation project for ‘The Mint’ (Centre Monnaie), on the Boulevard Anspach.

Set to be completed and operational for 2017, this ageing city centre monument will be given a total new look and will accommodate 15,000 m² of retail units on the ground floor. Units of up to 4,000 m² will be available, some overlooking the Place de la Monnaie. The Mint benefits from a direct link to the Rue Neuve, Brussels’ main shopping street (itself set to be renovated and given a new look). The City of Brussels is supporting all of these renovation projects, including the Centre Monnaie, which will also receive a new entrance to the de Brouckère metro station, a strategic hub. More than 16 million annual visitors come here. This could gain importance in view of the pedestrianisation of part of the Boulevard Anspach, set to begin this summer. And we could not end this article without mentioning the real first major retail outlet to open its doors , since very long time ago, right in the heart of the uptown shopping district bordered by the Avenue Louise and Chaussée d’Ixelles. The Toison d’Or mixed use complex is significant for having attracted two of Europe’s best-known retailers to install there one of their flagship store : Zara of Spain (4,000 m²), and Marks & Spencer of the UK (5,000 m²). Marks & Spencer is thus marking a return to Belgium after 14 years of absence. Tim Harrup ✍

The Mall of Europa BELGIUM REAL ESTATE SHOWCASE 2015 51

BRUSSELS REGION ARCHITECTURE &TOWN PLANNING

Kristiaan Borret: it’s time for action The Brussels Region government has just appointed its second Master Architect, or ‘Bouwmeester’. Kristiaan Borret thus took over from the first incumbent, Olivier Bastin,

in January of this year. Right at the beginning of his mandate, this former Antwerp Bouwmeester gives us his thoughts in its interview.

ristiaan Borret describes his career so far as atypical, because he has worked in both the public and private sectors, in architecture and in urban planning and also both in the theoretical domain (research at university) and in practice, creating real urban planning projects. And most recently he spent 8 years as the Bouwmeester of Antwerp. How does this new post differ from the one you held in Antwerp? One thing is that Brussels is more complex – not only because it is bigger – twice the size in fact – but also of course at an institutional level. There are the communes, the Region, the international players with developers at a different level… But I welcome the complexity and it is a challenge I wanted to take up.

On this topic, your predecessor Olivier Bastin said that good relations with the political authorities are vital… Yes, and he gave me this advice. The Bouwmeester is a position of a special kind. In the first place, it is an independent position, so I am looking forward to this independence. But I am the first to point out that it is a relative independence in that it is not absolute. I often say that being a Bouwmeester is like walking a tightrope… There are two extremes – you can be critical all of the time and especially when you are in the public media. But if all you do is criticise then people stop listening and you lose your influence. In fact people start to avoid you! But on the other hand, if you never criticise anything, people think you are just there for decoration – and why did you bother to become Bouwmeester at all? So a balance between being too critical and being too loyal has to be struck. The extremes lead to loss of impact.

Bernard de Keyzer

“ I think there is a great deal of vision in the Brussels Region. There is a lot of intellectual capacity in the City to produce high quality ideas and masterplans. The problem seems to be that there are too many of them. What is lacking is coherence for these visions “ Kristiaan Borret Bouwmeester 52 BELGIUM REAL ESTATE SHOWCASE 2015

You have to present your ‘orientation note’ to the authorities by the end of June. Can you tell us what it contains? Well obviously I presented some of my ideas when I was putting myself forward for the job. My slogan was ‘It’s time to act’, and I really do believe we are at a turning point in Brussels. Some people are saying that there is no vision in Brussels – no development vision, no planning vision… I don’t believe that – I fact I think there is a great deal of vision, or I should say a lot of visions. There is a lot of intellectual capacity in the City to produce high quality ideas, master-

is very important too, and this could represent a quick win, because a large part of the site is ready for development – so we shouldn’t wait too long. Another one is Reyers which is a huge and important project on a Regional and supraRegional level – because it involves the two major national television channels. This adds importance to it, but it is also more complex because it is not a ready-to-go brownfield site like Josaphat. Reyers is quite a puzzle: first you have to construct the new television buildings and only then can you start removing the existing buildings and redeveloping the site.

“ A lot of quality is lost between the idea and the finished product. The time between the two is too great “ plans and so on. The problem seems to be that there are too many of them and that they are too widely spread. What is lacking is coherence for these visions. So over the longer term I would like to work on bringing some coherence into these visions by constructing a sort of ground narrative – forging them into one coherent whole. The other thing, which is more linked to ‘moving to action’, is that despite all the good ideas, a lot of quality is lost between the idea and the finished product. The time between the two is too great and this leads to the loss of quality. So I want to speed things up. One of the jobs of the Bouwmester is to organise the competitions for the designation of an architect for a particular project, and I want to compress the time competitions take up – make them more compact. I also want to compress the time between the winning proposal and the actual construction: permits etc… But while I can easily act on the competitions, when it comes to building permits and the rest, this is something else, but I want to play my part nevertheless! The Canal zone is a well-known priority for Brussels – do you see others which stand out? Within the canal zone there are priorities other than the section around Tour & Taxis. There is the Bassin de Biestebroek in Anderlecht where a lot of private developments are being considered at the moment. But I believe Josaphat

Along with these, we have to (re)develop the South Station district. And here we have to integrate the private proposals into a coherent whole. Does your role involve the private sector? The city is not only built by public authorities, of course. And my mandate is for a mission which has been enlarged by the Brussels government. It now takes in private projects as well, in a surveillance and dialogue role. But rather than surveillance I prefer to take the approach of stimulating, looking for collaboration, between my role and the private players. So I see my appointment and this widening of the role as an invitation to the private sector to develop a collaborative approach. I used this approach in Antwerp and it seems to have been successful because some of the major players even asked me to organise architectural competitions for their private projects. I would be really interested to meet some of these types of players in Brussels – so it is an open invitation to begin a new way of collaboration between the public authorities – which I represent – and private parties. I want an exchange of ideas not just a complaints forum over building permits taking too long, or lack of trust. Interview by Tim Harrup ✍

BELGIUM REAL ESTATE SHOWCASE 2015 53

BRUSSELS REGION TOWN PLANNING / HOUSING

Urgency to build more housing Céline Fremault is the new Minister for the Environment of the Brussels Capital Region,

but with a wide-ranging remit: Housing, Environment, Energy, Handicapped Persons... Her objective is to draw a link between all these areas and create a better life for citizens, particularly the most vulnerable. She speaks to us about housing in particular.

éline Fremault began by observing that between 2008 and 2012, more than 70,000 people had left Brussels to go and live in the periphery. She believes lack of suitable housing was the principal cause, and she wishes to create a living framework which means that people will prefer to stay in the capital. The challenges are to provide quality housing and to ensure that people can afford to stay in Brussels, and to move in the direction of an economy which is more sustainable and which creates jobs. The priorities are therefore to offer better and higher quality housing, and to provide a framework for subsidised rents with a ceiling. This is designed to provide a sort of transition between the private sector housing in which they find themselves, and the public sector housing they are looking for. The Brussels government will help.

“ It is clear that the public sector will not be able to construct the necessary 6,500 public housing units on its own “

Céline Fremault, Minister for the Environment of the Brussels Capital Region

54 BELGIUM REAL ESTATE SHOWCASE 2015

There is of course the expected increase in the population… Céline Fremault: Yes, this is much talked about and we know that there are currently 1.163 million people living in Brussels, with an average increase of 14,000 per year since the beginning of this century – although there has been a slight dip over recent years. But this does not change the situation. Demand for housing therefore never stops increasing. We have therefore set out an ambitious programme which in the first instance involves finalising the Regional Housing Plan which was set up between 2004 and 2009 but which has not met its objectives. It was expected to see some 5,000 units constructed, but only arrived at around 1,300. And it is also clear that the public sector will not be able to construct the necessary 6,500 public housing units on its own. On top of this, the average income of Brussels residents used to be 12% above the national average, but today it is actually below the national average, by 15%. This is concerning. Our Region is largely a rental landscape in terms of housing. In the other two Regions of Belgium, ownership represents some 70% of the population, but in Brussels we are under 40%. In some districts it is only 20%. Average rents are 695 Euros and are rising by 2% a year when you look at the health index. Rent also takes up an average of 60% of income for those households whose revenues are less than 1,500 Euros per month. Where purchase is concerned, the average price in Brussels is 226,000 Euros for an apartment and 350,000 Euros for a house. But with the population exodus, less than 40% of young couples with two incomes are able to buy on the private market. How are you going to involve the public sector in the solution? Céline Fremault: I organised a conference at Mipim dedicated to public-private partnerships, to see how we can encourage the production of housing. We have an overall framework which involves the ten priority housing zones in

Brussels. The questions of architectural quality, and of quality of life, have to form a part of this. And the public and private partners also have to address the question of densification of the Region. This is a question for all cities, as we saw at Mipim. This densification has to be done harmoniously, taking into account the green fabric of the city, and its water network. Densification has to be qualitative as well as quantitative – otherwise we will repeat the errors of the past. Let us return to the current lack of housing. Céline Fremault: The gap between supply and demand for housing is currently standing at around 6,000 units per year. The building permit observatory reveals that some 4,000

appointed to keep a check on the progress being made in the projects, and to coordinate with the Master Architect of Brussels. The private sector also has to be involved in producing affordable housing with finance plans. The private sector produces most of the housing in Brussels, and the public sector has to assist them in doing this – environmental concerns, receiving permits… We have to arrive at a ‘cruising speed’. Does the conversion of old office buildings into housing play a part ? Céline Fremault: Yes, because we don’t exclude any formula. This is a promising area because there is office vacancy in Brussels of around 8%, and this is persistent in terms of some of the stock or buildings. A list of all the unoccupied buildings is currently being drawn up, although

“ The gap between supply and demand for housing is currently standing at around 6,000 units per year “ permits are granted each year (4,000 units), but very largely for private sector housing. So when it comes to launching more housing production, the situation is serious. We have to arrive at production of 6,500 units of housing per year by 2019. This has to involve all types of housing, subsidised rents, social housing, housing for purchase and we are giving the SLRB (Regional Housing Association) a very important role in this. To do this, we have to take land constraints into account, and look at how to speed up the administrative procedures. How have you started to address these issues since you took office? Céline Fremault: We have set up a Housing Coordination Committee which meets here in my office every six weeks, and which brings together public bodies in the first instance, to create synergies and encourage mixed use projects. Each time, a different commune of Brussels is also invited, to talk about its own housing projects, and explain where the land is being found. A facilitator has also been

we do know that not all office buildings are suitable for conversion. But where it is possible, it has to be done. What about the energy performance indicator? Céline Fremault: I have said that I don’t want to break up the ‘virtuous circle’ which has been set up in Brussels. We are working hand in hand with the sector and have started by correcting some of the existing technical errors, which make some of the requirements unable to be applied on the ground. The sector is happy about the way we are going about this. The Energy system (PEB) is also being evaluated, and the whole sector is being consulted. This is taking place in May and results will be known in September. And we are of course taking European requirements into account, especially in view of the fact that 70% of CO2 emissions come from buildings. So we know the challenges in terms of environment.

BELGIUM REAL ESTATE SHOWCASE 2015 55

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Does this mean ‘passive’ conversions? Céline Fremault: No, and this is because there has always been a difficulty with the terminology. The term ‘passive’ has often been used wrongly, when what is important is ‘energy performance’. There will be no moratorium on the PEB 2015 norm, especially as the sector has been consulted and given its approval to this. All our consultations show that there is no need to call this principle into question. We are working on the regulations regarding ground use and a conference will be held with all interested parties on May 26th.

“ We investigate public-private partnerships to see how we can encourage the production of housing “ During this conference the results of a survey involving different sectors will be presented (economic, housing…) which are currently impacted by the ground use legislation. There are points of agreement which pose no problem. By contrast, some points need to be discussed during the conference. A work group will be set up to review the legislation. Will you be maintaining the ‘Exemplary Buildings’ programme? Céline Fremault: The Exemplary Buildings programme will not be repeated this year because the objective of demonstrating to the sector that it was capable of constructing in an exemplary manner, where energy is concerned, has been achieved. Nevertheless, many exemplary buildings are still to be constructed, and the experience gained in the past and to be gained in the future thanks to these buildings, will be to the benefit of BruxellesEnvironnement. This experience is shared with the sector via the ‘sustainable building guide’ which is regularly updated. Interview by Tim Harrup ✍

BRUSSELS SUSTAINABLE ARCHITECTURE & BUILDING

The headquarters of the Brussels Environment agency show the way The Brussels administration for energy and the environment inaugurated its new headquarters at the beginning of this year, just as much a flagship building as a working

tool. By putting into place in its own premises the principles of energy rationalisation and sustainability – which it works hard at encouraging the inhabitants of Brussels to adopt, both private individuals and companies, residents and commuters – the institution is fulfilling its role as an example and driving force.

Yvan Glavie

n Tour & Taxis site, the new headquarters of Brussels Environment currently look a bit dark, sober and lonely, new and shiny, opposite the historic renovated Royal Warehouse of the former Customs authorities. The contrast will only be a temporary phenomenon, however, as according political statements, some 370,000 m² of new buildings will be constructed alongside the headquarters of Brussels Environment by the end of this legislature, including offices, shops and 2,000 new residential units. A 9 hectare park is already beginning to show itself. So the 630 members of the Brussels Environment staff will find themselves in a pleasant setting.

Functional architecture, open to the public Services of Brussels Environment accessible for visitors, information and specialised documentation centre, 415-seat auditorium, flexible meeting rooms, a restaurant serving sustainable food from fair trade… Open and transparent to look at, the building is also open in its functions. Next year, this facility will be further reinforced with a permanent 700 m² exhibition highlighting the urban challenges of the 21st century. Temporary exhibitions will also be organised here.

16,750 m² of passive building This new building has become the largest passive building in Belgium, and the second largest in Europe. The building produces a large part of its energy requirements itself, via three sources, of which two are active: 700 m² of photovoltaic panels produce ± 88,000 kWh of electricity per year; two complexes of four geothermal wells allied to a heat pump, draw the extra calories required for the heating from a depth of 80 metres, or exchange any excess calories with the sub-oil in summer; and finally, the 3,200 m² of glazing provide extra heat when there is sunshine, even during the cold season.

To read the whole of this report, download the article via the on-line library www.pro-reamestate.be/library > 18/05/2015

BELGIUM REAL ESTATE SHOWCASE 2015 57

BRUSSELS SUSTAINABLE ARCHITECTURE & BUILDING

10,000 m² of offices rated ‘Zero Energy’ Awarded the status of ‘Exemplary Building’ by Brussels Environment, and conforming

to the NZEB standard (Nearly Zero Energy Building) and to BREEAM, the ‘Monnoyer’ is the largest example of what can be achieved by an architectural solution which is

respectful of the environment and which goes beyond the simple framework of the

energy performance of a building. The Monnoyer is today the first 10,000 m² building to be classified as Zero Energy. For a year and a half now, it has been accommodating the 350 employees of the high voltage electricity distribution management company ELIA.

he Monnoyer is located close to the canal, in a rehabilitation zone undergoing an economic transition. The building had to be constructed on a disused site which had become unhealthy due to polluted ground. For the construction, a minimum of thickness was therefore necessary, positioning a layer of watertight concrete as demanded by Brussels Environment, before putting earth on this to enable indigenous plants to grow. As there is no sewerage network, waste water is filtered by lagooning into water basins and a reed bed. In order to meet the requirements of BREEAM certification, the whole of the construction process had to be carried out with a minimum of impact on the environment, and with a view to creating a harmonious landscaped ensemble.

Revolutionary modular facades The principal originality of Monnoyer lies in the use of a curtain-wall composed of prefabricated wood modules to the interior, and recycled aluminium sheeting to the exterior, which give the building a metallic look. This prefabricated passive panel technique enabled the construction to be speeded up without being at the mercy of inclement weather, and it therefore only took three months to complete and close the shell. This innovative method explains why the façade represents a third of the total cost of the building. According to the ‘Architectesassoc.’ architectural firm, this on-cost is nevertheless compensated to the tune of 5-8 times by energy savings. In order to limit the suns rays within the building, the external winglets which jut out, positioned vertically, act as a sun-blind. Thanks among others to highly efficient thermal insulation (K18), the annual demand for heat of14 kWh/m² is entirely taken care of by the 2,900 m² of photovoltaic panels on the roofing of the external car park. Their production of 357 kWh is sufficient to cover the energy needs of the passive building, estimated to be 340 kWh annually. Which makes the building ‘more than NZEB’.

YMarc Detiffe

Download the report at www.pro-realestate.be/library > 10/09/14. You can also find out about the interior fit-out of the new building at our on-line workplace projects library > www.profacility.be/workplace/elia

58 BELGIUM REAL ESTATE SHOWCASE 2015

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BRUSSELS REGION PROPERTY & ENERGY MANAGEMENT

Improved energy efficiency with m The ‘local action plan for energy management’ — ‘Plan Local d’Action pour la Gestion

Energétique’ in its original French (PLAGE*) — involves the large building portfolios in

the Brussels Capital Region. The fruitful results of this voluntary and subsidised

programme launched in 2006 have made it as efficient as it is low-cost for managers of building portfolios.

everal phases of PLAGE have followed on, one from the other, since its launch, and the method has been refined with experience. Céline Jeanmart, the engineer in charge of the PLAGE project at Brussels Environment, is responsible for developing its technical aspect. She explains the origins of this energy management method and how the experience gained has helped in perfecting it: “In 2006, we started from the premise that it would be possible to significantly improve energy efficiency at low cost, by putting in place rational energy use actions involving both behaviour and the regulation of the systems. So it is a matter of staring from the existing situation. The energy consumption savings achieved free up new financial means which can be used to resolve

highest potential. Generally, this means buildings which represent more than 50% of the energy consumption of the buildings portfolio. Putting the plan into operation and follow-up last for three years. It is then often the case that the Energy Head is taken on for an indefinite period by the institution within which he is working, to carry out extra missions”. Several PLAGE programmes have been launched, aimed successively at the hospital sector, the communes (in two phases), schools and finally public service social housing. This programme will come to an end in 2016. “The following stage will doubtless be to make this compulsory for building portfolios of greater than a certain size, but the agenda and methodology for this have

“ The ‘virtuous circle’ principle: the consumption savings achieved by actions on the rational use of energy involving behaviour and regulation of the systems, free up new financial means which can be used to resolve other problems “ other problems. This is the ‘virtuous circle’ principle, which can just as easily be applied to the budget of a large company as to a family budget”. The PLAGE principle is that of launching a call for tenders following which certain bodies are designated to benefit from the financing of an Energy Head for 4 years and from a moderate budget (around 50,000 Euros) for carrying out the works. Céline Jeanmart: “The work of the Energy Head consists of first drawing up the energy audit of what exists at the moment. He carries out an energy-oriented examination of all of the equipment and energy sources: gas, electricity etc… This lasts for a full year, a complete ‘heating cycle’. Based on the consumption data, he then draws up an action plan which prioritises those buildings with the 60 BELGIUM REAL ESTATE SHOWCASE 2015

not yet been defined”, details Céline Jeanmart. “One of the objectives of Brussels Environment is to avoid duplicating other approaches: The Energy Performance indicator (PEB) and the energy audit”. If this compulsory nature sees light of day at some point in the future, the idea of Brussels Environment is to make available to those companies not involved because their building stock is too small, tools and assistance for a voluntary approach. They can in fact already do this by making use of existing tools (see inset) which will shortly be reviewed and improved. The recipe for success “Experience shows that the PLAGE programmes which work well, are those which have the support of their management and their technical teams, and which succeed in overcoming

th moderate investments resistance to change and in raising awareness among the building occupants. And where results are concerned, up to 20% savings in combustible energy use can be achieved, with a stabilisation of electricity use, which is a result in itself within a context of a general upward trend”. Specialised study bureaux assist the Energy Head in their 4-year journey. The assistance is both in terms of methodology and of a technical nature. Regular meetings are held with each Energy Head and plenary sessions bring all Energy Heads together. Meetings with the authorities of the institutions and of the technical support missions, are also organised.

the order of 15% in terms of combustible energy consumption and of 10,000 tonnes of CO2, representing a saving of around 4.25 million Euros. The portfolios concerned involve some 1,378 buildings (of which at least 315 priorities), totalling 4.5 million square meters – 2 million of these being the subject of PLAGE action plans. Patrick Bartholomé ✍

Return on investment can be achieved in just a few years, depending on the measures taken and the energy savings potential. Certain projects have achieved savings of 30% on energy consumption. Since their launch, the PLAGE programmes successively put in place have enabled an average energy saving of International recognition of PLAGE methodology The PLAGE programmes received an international distinction in 2013 within the framework of the European Energy Week (EUSEW 2013): they were among the five finalists in the Consumption of Energy Europe Awards. They were also finalists in the ManagEnergy Local Energy Action Awards. In 2014 a representative of Brussels Environment went to the USA and also took part in several conferences of the European Energy Cities network – www.energy-cities.eu – to present and spread this methodology.

Tools • Information leaflet destined for decision-makers. It sets out to describe the context and the stakes of the PLAGE project, along with the major principles of the methodology. • Methodology manual destined for Energy Heads responsible for instigating PLAGE in his institution or company. It provides a menu of the various stages of the project, the phases to be followed, tools, the different people involved and their roles, obstacles to be overcome etc. The manual is designed to be concrete and operational. It enables decision-makers and Energy Heads to gain time by installing energy management which is immediately effective. These documents are available in PDF format in French and Dutch via www.leefmilieu.brussels/bouwprofessionals and www.environnement.brussels/prosdubatiment This webpage also lists all of the services of Brussels Environment destined for real estate professionals.

BELGIUM REAL ESTATE SHOWCASE 2015 61

BRUSSELS REAL ESTATE PROJECTS ONLINE LIBRARY

NEO www.pro-realestate.be/projects/NEO © Image : Assar Architects

BNP PARIBAS HEADQUARTERS www.pro-realestate.be/projects/BNPParibas

In the section www.pro-realestate.be/projects within the Pro-realestate.be information platform you will find detailed description of town planning and land development master plans: projects of a ‘districtwide’ size, involving a high degree of mixed use (offices, residential, retail, infrastructure) and integrating sustainability and mobility concerns. Forthcoming large office building projects are also highlighted in this section together with major shopping and leisure centers developments. All projects descriptions include the short listing of key players involved in those real estate projects and for some of them their company profile.

TREURENBERG www.pro-realestate.be/projects/Treurenberg

RTBF-VRT Media City www.pro-realestate.be/projects/RTBF-VRT

RE ww

THE MINT www.pro-realestate.be/projects/TheMint

BE ww

NATO www.pro-realestate.be/projects/NATO

62 BELGIUM REAL ESTATE SHOWCASE 2015

TOUR & TAXIS www.pro-realestate.be/projects/TourTaxis

TIV ww

CHAMBON www.pro-realestate.be/projects/Chambon

JOSAPHAT www.pro-realestate.be/projects/Josaphat

BELAIR www.pro-realestate.be/projects/Belair

TIVOLI SUSTAINABLE NEIGHBOURHOOD www.pro-realestate.be/projects/Tivoli

WTC 4 www.pro-realestate.be/projects/WTC4

PROJET URBAIN LOI www.pro-realestate.be/projects/UrbainLoi

REGENT PARK www.pro-realestate.be/projects/RegentPark © Architectassoc. for Citydev

VRT

WWW.PRO-REALESTATE.BE/PROJECTS

MIDI STATION DISTRICT www.pro-realestate.be/projects/BrusselsMidi

BELGIUM REAL ESTATE SHOWCASE 2015 63

F Image: Jaspers_Eyers Architects

Image courtesy of Kairos

Offices letting & investment market I Antwerp Market waiting for new projects

Photo Bernard De Keyzer

Offices letting & investment market Mechelen

Pictures courtesy of Ghelamco

Take-up falling

Offices letting & investment market Ghent Market in lower gear

Real estate development I Public Infrastructure Impressive catch-up with the â&#x20AC;&#x2DC;Scholen van morgenâ&#x20AC;&#x2122; PPP

64 PROFACILITY GUIDE 2012

FLANDERS

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Architects : BRUT Architecture & Urban Design / C.F. Møller

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Town planning I Antwerp major housing development scheme Southern expansion for Antwerp

PROFACILITY GUIDE 2012 65

FLANDERS INVESTMENT & OFFICES MARKET TRENDS / ANTWERP

Market waiting for new projects The Antwerp office market is the second largest office market in Belgium after

Brussels. The total stock can be estimated at around 2,000,000 m² (excluding Mechelen)

representing around 10% of total Belgian office stock. Take-up is showing signs of recovery but scarcity of modern office buildings ready for occupancy acts as a barrier for further growth of the office market. The Antwerp port activities and its role as an

international trading place for diamonds are both important economic drivers but, on the other hand, increasing mobility problems have a negative impact on the image of the region and may cause investors to search for alternative locations. Despite this threat, the timing for the realisation of the Oosterweel connection, which should help to solve the numerous mobility issues, is still uncertain.

Patrizia Tortolani Economist, MRICS de Crombrugghe & Partners

ffices take-up shows signs of recovery, rising to 94,000 m², an increase of almost 15% in comparison with the previous year but which remains under the average annual take-up for the past decade (2004-2013 period) of around 100,000 m². While the volume has increased, the number of transactions decreased, which indicates that demand has not yet recovered its normal level. Most of the take up was situated in the city centre. Demand was mainly driven by the corporate sector and by an increase in transactions above 1,000 m², even if deals below 1,000 m² accounted for more than 80 % of the total take up. During 2014, the largest transactions were the purchase by Syntra AB (Post-X in Berchem –

The final Masterplan for the urban renewal of the Post-X site near Antwerp-Berchem station, being developed in close cooperation with the city of Antwerp, includes a balanced mix development of 115,000 m² of above ground space : around 48,000 m2 of office and school buildings, complemented by retail and leisure.

66 BELGIUM REAL ESTATE SHOWCASE 2015

Photo courtesy of IRET Development

Pascal Vanhumbeeck Consultant, MRICS de Crombrugghe & Partners

9,435 m²), the recent acquisition of 6,500 m² by the Flemish authorities (DAB Loodswezen) of a built-to-suit on the Imalso site (Thonetlaan) on the left bank, the letting by Truvo Belgium of 5,200 m² in the Rubens building on the Ring, and the letting of 4.300 m² by Ferranti in an office building located at Romeynsweel 3. Slight decrease in vacancy Vacancy slightly decreased as the limited development and take up seem to hold each other in balance. The relatively 11% high vacancy rate is mainly concentrated in older buildings that don’t meet current expectations, neither in the field of possible tenants nor in the field of current environmental building standards.

The former Electrabel tower on the Mechelsesteenweg is to be refurbished by real estate developer L.I.F.E into W.A.T.T, a multifunctional tower that will group some 25 creative companies

picture courtesy of L.I.F.E.

This decrease in the vacancy rate is mainly the consequence of the scarcity of speculative completions and the conversion of office space, mainly into residential, but also hotel, student housing, schools and mixed projects. Examples are the ‘Tolhuis’ building (± 16,000 m²) in front of the Schelde in the surroundings of the MAS museum and The Desguinlei 100 ‘Mercator’ building (± 14,000 m²). The Louise Marie project at the Desguinlei that was originally conceived as large office tower will now be developed as a residential project by Cores development. The dynamics of the residential market driven by (private) investor demand and the increasing population in urban regions have a positive impact on developer activity in this segment. Major investment transactions The largest investment transaction on the Antwerp market was the acquisition of Kievit-plein (in the city centre) by AG Real Estate for € 195,000,000.

“ There are currently almost 10 new office developments on the market totalling around 160,000 m² “ It is a large scale mixed complex of nearly 137,000 m² (above and below ground) comprising 56,000 m² for offices, 6,700 m² of residential development, 16,300 m² for hotels, 7,000 m² for retail and almost 1,100 underground parking units. The second largest transaction was the acquisition of Onyx building in Berchem (± 12,000 m²) by Baloise Insurance for an estimated price of € 28,000,000. Projects pipeline The scarcity of modern offices ready for occupancy has already been mentioned by markets players as a barrier to growth in the office market. New projects are needed but no speculative developments are underway, which has a crippling effect on the market. Unlike in Ghent, developers have been reluctant to start their project speculatively. Onyx building was one of the rare examples of a successful speculative development, which is now almost fully let. There are currently almost 10 new office developments on the market totalling around 160,000 m², of which 50% are not yet fully defined such as the second phase of the Post-X and the office development of the Nieuw Zuid by Triple Living. In general little movement or new announcements have been made since last year. BELGIUM REAL ESTATE SHOWCASE 2015 67

FLANDERS INVESTMENT & OFFICES MARKET TRENDS / ANTWERP

The market is geographically divided into 4 main zones: Port, Centre, Singel (Ring zone) and Periphery. With a stock of some 2,000,000 m² excluding Mechelen, Antwerp is the second largest office market in Belgium with 10 % of the total national market. Vacancy currently stands at around 11 %, Prime rents remained stable at €145 /m²/year in the centre, € 140 /m²/year in the Ring zone and €125 /m²/year in the periphery, whereas in the port zone, prime rents increased to € 135 /m²/year, compared to €120 /m²/year last year. In the meantime average rent has increased from €105 /m²/year to €110 /m²/year

The business districts on the map represent the classification used by JLL

Brief overview of real estate development per district Port Area Area situated northwards from the center starting from the ‘Eilandje’ towards the port via the Noorderlaan No large scale office projects are on the way. • Limited office development can be found in some residential developments at het Eilandje such as the Cadiz project offering 18 office units for a total area of 5,770 m². In the same district, Urban Estates-Kumpen is beginning the construction of its India- Natie project, located on the Madrasstraat, Binnenvaarstraat and Piraeusstraat. This project involves 4 joint buildings, including

68 BELGIUM REAL ESTATE SHOWCASE 2015

around 2,440 m2 office space, 49 apartments, 6 commercial units, all together about 8,565 m2. There is also an underground parking area of 3,000 m2. • Despite some discussions on technical issues, construction of the new spectacular Antwerp Port House (around 12,800 m² of office space) continues. Works should be completed by the end of 2016. • In the same area, at Park Spoor Noord, large scale public buildings are being developed, specifically the Artesis Plantijn University Campus is under construction and in the period 2014-2018, the new ZNA hospital will be built with a unique retail ‘care boulevard’.

Center Area located inside the inner ring road (Singel) adjacent to the port zone in the north Three main developments are located in this area: first of all, the construction of the new Electrabel Antwerp headquarters next to the Antwerp Central station. The project consists of two towers, one office tower of 11,000 m² (Kievit II building) prelet to GDF Suez / Electrabel and sold to Baloise Insurance and one residential building, built on a common base at ground level. Electrabel is expected to move to this new building this year. Kairos is developing a Breeam Excellent office building near the Kievit plein. The project named Kievitkantoor will provide around 6,100 m² of office space and 900 m² of retail space on the ground floor. There is also the refurbishment of the former Electrabel site on the Mechelsesteenweg, which is being redeveloped into W.A.T.T (Working Apart, Thinking Together), a multifunctional tower that will group some 25 creative companies. In addition to a number of leading creative companies, this project is aiming for a design hotel, a restaurant, an exclusive ‘Roofbar’ meeting and conference center and a city supermarket. The tower comprises 15,400 m² above ground and 300 underground parking spaces. Four floors, each of 750 m², are already sold. In the southwest of the centre zone and almost at the border of the Ring zone, the demolition of the old Antwerp Province house along the Queen Elisabethlei is complete. Construction works have started and at the same place a new office tower (32,000 m²) will be built by the end of 2017. Ring / Singel Area extending along the city’s ring road and both sides of the Singel and Binnensingel • The City Link 2 & 3 project is developed by Willemen, two office buildings with a total area of 27,000 m². No exact time frame for this project has been announced up to now. It will be one of the first projects in Antwerp that will aim to get a ‘very good’ label from BREEAM.

• •

Post-X, the urban renewal project located near the Antwerp-Berchem station, involves a balanced mix of mainly office and school buildings, complemented by retail and leisure. The final Masterplan for the area, which is being developed in close cooperation with the city of Antwerp, includes the development of 115,000 m² of above ground space (of which 48,000 m² of office space). The first floor areas should become available as from 2016. On the same rehabilitation site is the construction of the new headquarters for the offices and training center of the non-profit organisation Syntra, organiser of training courses (Campus Metropool). Construction works have started and will be finished late this year. On the longer term possible extra office space might appear in the Nieuw-Zuid project area. For this mixed use development area the master plan mentions the possible development of 40,000 m² to 70,000 m² supra-local accommodation or offices.

Periphery The area covering all other communes located around Antwerp, essentially to the south and west of the city and the left bank of the Schelde No new projects are expected in the short term but at the left bank of the Schelde a total new urban development area ’Regatta’ is under construction. At the border of this mainly residential project, the master plan allows the development of 40,000 m² offices. If there is insufficient office demand the area can be used for residential developments. Up to now no specific office projects have been put on the market.

Patrizia Tortolani Economist, MRICS de Crombrugghe & Partners Pascal Vanhumbeeck Consultant, MRICS de Crombrugghe & Partners

BELGIUM REAL ESTATE SHOWCASE 2015 69

FLANDERS INVESTMENT & OFFICES MARKET TRENDS / MECHELEN

HP renegotiation compensates overall disappointing take up Mechelen is located in the South of the Province of Antwerp, between the cities of

Antwerp and Brussels and represents an office stock of ± 460,000 m². The three business zones – north and south industrial zones and the centre – benefit from very good access

to the motorway E19 (Amsterdam – Paris). The centre zone benefits from the nearby railway station. The huge infrastructure works around the railway station and the complete renewal of it will make this zone even more attractive.

M Patrizia Tortolani Economist, MRICS de Crombrugghe & Partners

Take-up falling Thanks to the renewal by Hewlett-Packard of its lease of 13,500 m² in the Mechelen Business Tower (located near the E19 motorway in

Mechelen North), take up figures of ± 16,400 m² represented an increase of almost 65% compared to previous year. However, this large-scale renewal covers up very disappointing figures, as the take up (excl. this deal) represented only ± 2,750 m², corresponding to a 72,5 % decrease compared to 2013, which was already well below the 10 year average of around 15,000 m². This is mainly due to the very poor activity of the corporate sector, which constitutes the major part of market activity in Mechelen, as administrations have remained completely inactive on the market since 2005. Most of the transactions were concluded for small areas of below 1,000 m². No movement in rental level was observed. Prime rent remained stable at €135/m²/year, while average rents vary between 80 and €120 /m²/year. The vacancy rate is around 11 % but it is very low in new buildings (< 3 %). Real estate developers attracted by the railway station renewal The new central station with its new infrastructure and parking give potential for new developments in this area, which will undergo a

Jaspers-Eyers Architects for Beherman Group

The Pure M project developed by Beherman Group involves the construction in the Ragheno Business Park, along Motstraat, of three new office buildings totalling 20,000 m².

echelen is a relatively young market with office buildings initially only present in the city centre. Several new business parks were developed during the nineties and the first decade of the century in the industrial zones situated alongside the E-19. During that period Mechelen became the alternative for the mobility problems around Brussels and Antwerp. But this time is over and activity in Mechelen remains low. Due to the financial crisis and limited demand, new developments became rather rare over the past years except in the surroundings of the station, where the strategic expansion is one of the major objectives of the Mechelen Municipal Urban Plan, aiming for the construction of a new railway (the Bypass) and a new access road for cars and trucks (the Tangent), as well as the reconstruction of roads and squares around the station. This urban regeneration of the station will undoubtedly transform Mechelen in the next few years and put it back on the market.

70 BELGIUM REAL ESTATE SHOWCASE 2015

Jaspers-Eyers Architects for Beherman Group

complete transformation. In addition to the new central station, all the neighbouring properties will also be renovated and incorporated into the city’s new centre. The Beherman Group wants to play a major role in this urban renewal project. The Group itself owns over thirteen hectares of land in this development, in an area called Ragheno Park. This former brownfield site is being gradually reshaped into an attractive business park. The site is currently fully under development and will include residential and business units. The first large development is the new headquarter building of the Flemish Red Cross, which is nearing completion and should be occupied by the end of the year. The next big project, called Pure M, is the construction of three new office buildings totalling 20,000 m². These buildings will be located along Motstraat and will form a buffer zone between the existing railway infrastructure on one side, and the residential area behind it. In the Ragheno Business Park II, MG Real Estate also has a project to build 2,900 m² of office space. Just a stone’s throw from the station, along the Leuven-Dijle kanaal, the offices of the Zuidpoort complex are part of a renewed and revived district with apartments, shops and restaurants around a central garden square. Sanoma Belgium moved into some 12,000 m² in June 2013. Around 1,500 m² of high-quality offices are still available to be rented in units from 500 m² and a new construction consisting of 6,700 m² of offices and café/restaurant units is still available. Non speculative real estate developments Except for these real estate projects and part of that located on Blarenberglaan 4, the new developments in the pipeline are not speculative. Real Estate developers are often waiting for occupiers before starting construction. The Blarenberglaan 4 project along the E19 on the former industrial Cummins site has now been completed by real estate developer BVI.BE. It involved the renovation of the industrial buildings (9,500 m²) and the construction of a new office building of around 4,600 m² along the Blarenberglaan. 2,000 m² offices are now offered to let or for sale. Just beside this project, on Blarenberglaan 2a, the York Business Park is to be built by real estate developer Uplace. This 5-storey building will develop a total surface area of 7,412 m² of office space. Construction will begin once a contract with an occupant has been signed, and is set to last a year.

You may be just the person we’re looking for! Do you have experience and references in facilities and real estate management?

Then you may match the profiles outlined in the job offers published on the Profacility media platforms.

Be the first to know – take a look at the FM and RE job offers on op www.profacility.be/jobs

In Mechelen North, developers Bvi.be and Resolve are developing the Blokhuis SME park on a site of 7,000 m². Builtto-suit buildings (200 m² to 3,000 m²) are offered for sale. Three new buildings, for Porsche, Carglass and SG Lighting are already completed and occupied Patrizia Tortolani Economist, MRICS de Crombrugghe & Partners

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BELGIUM REAL ESTATE SHOWCASE 2015 71

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FLANDERS REAL ESTATE DEVELOPMENT / PUBLIC INFRASRUCTURE

‘Schools of Tomorrow’ an impressive catch-up The situation on the ground is disconcerting and the result of a decade-long dereliction of school buildings, not to mention a chronic lack of funds. Aside from the fact that the school buildings themselves no longer meet the requirements of the new teaching

methods of the 21st century, a capacity problem, very specifically in the metropolitan area and for the time being in nursery education, has also raised its head.

t present, 60% of all school buildings are over 40 years old while 29% of them are actually older than 60 years! No less than 9% of the current school facilities are made up of temporary units, some of which came into use more than 30 years ago. 28% of the available classrooms are overcrowded. The final conclusion is that 20% of the existing stock is no longer up to scratch. The situation in Wallonia is not much better than in Flanders and even internationally the picture is far from rosy: Great Britain for instance will need to invest 12 billion pounds to bring its school infrastructure up to date. A property portfolio that is so hopelessly antiquated has a catastrophic impact on energy performance. What’s more, the older the buildings, the more expensive they are to run and the less sustainable they become. But the energy costs are only one aspect. When deciding on a school’s location, mobility issues should also be taken into consideration. Opening up school buildings to the public would be another significant step towards sustainability. Thankfully, our education system has a better image than the school buildings it is forced to operate from!

(Flemish investment company) and AGIOn (Agency for Infrastructure in Education) on an equal basis, has a 25% plus one share stake.

Philippe Monserez, Head of AG Real Estate and Programme Director of ‘Schools of Tomorrow’ “ The funding of this megaproject via a PPP is based on the payment of a fee for the use of the facilities over a 30-year period. On average, the annual availability payment will amount to 100 million Euros over 30 years. “

Bernard de Keyzer

‘Schools of Tomorrow’ In 2006, a decision was taken to embark on a major overhaul of the real estate housing the education sector. More than 300 school buildings accommodating youngsters between the ages of 6 and 18 years were earmarked. In May 2009, a Public-Private Partnership saw the light of day and the Flemish Government awarded the catch-up operation for school buildings to Fortis Bank - Fortis Real Estate. This was followed by a ‘final close’ with the incorporation of ‘DBFM Scholen van Morgen nv’ in June 2010 in which ‘F Scholen nv’, a 50/50 joint venture between AG Real Estate and BNP Parisbas Fortis, has a 75% minus one share stake and ‘School Invest nv’ together with PMV BELGIUM REAL ESTATE SHOWCASE 2015 73

FLANDERS REAL ESTATE DEVELOPMENT / PUBLIC INFRASRUCTURE

The DBFM agreements provide for an annual budget of 10 million Euros for maintenance preventive and corrective - to keep the buildings in sound condition through maintenance and, where necessary, repairs. The maintenance section of the DBFM agreements will come into operation in the middle of this year and a team of 15 to 20 people will be selected to that effect”. In the absence of a financial standard, the same availability payment per square metre was used, i.e. 1,330 Euros/m², for projects in the city, on the outskirts or at a brownfield site.

“This is partly due to the desire to end up with multifunctional facilities, i.e., buildings that can be used by the locals after school hours and, especially, a sports infrastructure that will generate returns. Maximum user synergy is what we hope to achieve in every situation”. For tendering purposes, projects have been clustered. “Combining smaller and larger projects results in a price advantage for the small ones” Philippe Monserez believes. “13 contracting consortiums have been set up to bring the projects to fruition and one delegate developer has been appointed”.

“ For the PPP ‘Scholen van morgen, we are talking mainly of around 200 new schools to be build representing 625,000 m2 altogether “ A reporting system was agreed upon which is mainly based on the Dutch NEN 2767 standard. The reports are presented on a monthly, quarterly, biannual and annual basis.

Follow the evolution of the construction of the ‘Schools of Tomorrow’ via http://portfolio. scholenvanmorgen.be. An interactive map offers you an illustrated presentation of the various schools. This presentation also tells you which companies and firms of architects are associated with the individual projects.

165 school projects All in all, there are 165 projects, ranging from 800 to 27,500 m² in size, to be accomplished. We are talking about more than 200 buildings or 625,000 m² altogether, 90% of which are new-builds and 10% renovation projects - and 300,000 m² of work to be carried out in the areas around the buildings. Projects vary from less than 1,000 m² to more than 25,000 m² in size. About half of the projects are smaller than 2,500 m². For this particular PPP project, 1.5 billion Euros have been budgeted in the form of a longterm loan. The construction budget amounts to 1 billion Euros net, while 100 million Euros have been earmarked for each of finishing the surroundings and the initial equipping of the buildings. All in all, 63 architectural bureaux, 40 stability engineering firms and as many technical equipment engineering firms have come on board. The ‘Agency for Infrastructure in Education’ (AGIOn) and the Flemish Government Architect are also actively involved. “The variation in terms of architectural approach is tremendous” comments Philippe Monserez.

Even though the buildings have been designed with their optimum return in mind, no, or hardly any, consideration has been given to a possible second lease of life of the buildings through re-designation once the 30-year period is up. State of play Last year, things finally started moving. 35 subprojects in West Flanders, 36 in East Flanders, 48 in Antwerp, 25 in Flemish Brabant and 19 in Limburg, where the largest projects are located, got underway. On the 1st of March 2015, permits had been granted for 97% of the sub-projects and 76% of them had been awarded to the contracting consortiums. Work had begun on 39%, or 64, of the sub-projects. In Limburg, 14 of the 19 scheduled projects were in progress. In Antwerp, 10 out of 48 were in the course of implementation. The original completion deadline for the entire project was August 2017, but now it is believed August 2018 would be a more realistic goal. There are various reasons for the delay: longer building times, complaints from neighbours, essential soil remediation (70% of the sites are free of pollution), archaeological finds (at no less than 30% of the sites), changes in the political context and uncertainties at institutional authority level. Eduard Coddé ✍

74 BELGIUM REAL ESTATE SHOWCASE 2015

Sint-Aloysiuscollege I Ninove

Óscar Romerocollege I Dendermonde

Gemeentelijke Basisschool I Zwevegem

With all in all 63 architectural bureaux, 40 stability engineering ﬁrms and as many technical equipment engineering ﬁrms on board, the school projects variation in terms of architectural approach is tremendous © de Jong Gortemaker Algra

Sint-Angela Instituut I Ternat

Campus Unesco I Koekelberg

Gemeentelijke basisschool de Brug I Ternat

Óscar Romerocollege I Dendermonde

BELGIUM REAL ESTATE SHOWCASE 2015 75

FLANDERS ANTWERP HOUSING DEVELOPMENT SCHEME

Southern expansion for Antwerp “Over the coming 15 years, Antwerp expects to see its population grow by 70,000 to 100,000 inhabitants, or about 30,000 families” says Rob Van de Velde, alderman for

spatial planning, heritage and green spaces. “And that means an attractive housing and services offer has to grow along with it at the same time”. The chances are great that a

substantial share of these new Antwerp residents will be settling down to the south of the city centre, because that area is already bustling with building activity.

he ´Nieuw Zuid´ and ´Groen Zuid´ projects are developing almost parallel to one another to the south of Antwerp’s downtown area. Both projects focus on sustainability and living quality. The first project, which is being promoted as ´The city’s greenest quarter, with no less than 67% green spaces´, is being designed by ´Triple Living´, a joint venture of ATTIS and Skyline Europe, two Belgian family businesses with several decades of experience in property development. ´Groen Zuid´ is an initiative of project developer and city centre builder CORES Development from Wilrijk. 2028 A period of 15 years is proposed for full implementation of ´Nieuw Zuid´, a new part of town being generated by a Private Public Partnership between the City of Antwerp and project developer ´Triple Living´. The master plan was designed by the Milanese ´Studio Associato Secchi-Viganò´, in collaboration with landscape architect, engineer-architect and urban development designer Bas Smets (Brussels). The ´Projectgebied Nieuw Zuid´, extending

behind the Court Building, is limited on the right side by the Scheldt river and on the opposite side by the Antwerp South station. This is an area of around 70 hectares. The ´Masterplan Nieuw Zuid´ includes two developments that form the object of the Environmental Impact Report (EIR) Plan: the ´Nieuw Zuid´ project area (to the right of the Court Building) and the ´Konijnenwei´ (to the left of the Court Building). The first, covering around 29 hectares, is conceived as an urban project, while the ´Konijnenwei´ is destined to serve as a park.

“ No less than 67% of Nieuw Zuid site is being laid out as green space, compared to an average ratio of 12% in Antwerp “ The EIR Plan prescribes a phased development extending towards the south, under which in each phase of the development a viable whole must be present, carefully opened up and linked

Town planning to face Antwerp urban population growth Speaking recently at MIPIM in Cannes in the Belgian Pavilion, Rob Van de Velde, alderman for spatial planning, heritage and green spaces, emphazises the upcoming housing challenge for Antwerp City and the adequate response to it. Antwerp expects its population to increase by 70,000 to 100,000 over the next 15 years, and is getting ready to give its newcomers a suitable welcome. Europe has experienced a difficult housing market over the last few years, with prices falling – indeed plummeting in the case of Spain and France. Together with Germany, Belgium has remained stable or even showed a positive trend. The urban population growth that Antwerp expects represents some 30,000 families, for whom both housing and an attractive range of services must be provided, including schools, hospitals and childcare facilities. In response to the strong population growth, the city will expand in almost every direction. Building will take place out as far as the 20th century belt around the city. The emphasis is being placed on mixed sites, where residential developments coexist harmoniously with innovative and service-oriented businesses. Furthermore Rob Van de Velde underlined the harmonious links which should prevail between Antwerp City and its periphery: “We are not engulfing the surrounding towns, and have no desire for the periphery to become heavily built up and part of the city. The fragmentation must stop, and we have opted for urban growth that is suited to the population’s needs, coupled with optimal links to the periphery.”

76 BELGIUM REAL ESTATE SHOWCASE 2015

to the existing urban fabric. A new phase may be started only after the previous one has already attained a high quality level. The new residential area being developed by ‘Triple Living’ includes around 18 hectares and lies within walking distance of the vibrant South Antwerp area, with the Leopold De Waelplaats, the Vlaamse and Waalse Kaai as its beating heart. By 2028, 2,000 new residences, two schools, two day-care centres, a sports hall, a campus and a service centre will have been built. Commercial and office spaces are also being planned. No less than 67% of the total site is being laid out as green space, compared to an average ratio of 12% in present-day Antwerp. ‘Triple Living’ undertakes with the city to get Antwerp CO2-neutral by 2050. One of the steps being taken to achieve this is the installation of a heating network as an ecological heating facility for the entire quarter. Rainwater is retained as much as possible by allowing it to naturally seep into the soil. Architectural quality and versatility ´Nieuw Zuid´ will offer a wide variety of buildings that are being designed by major national and international architectural firms. The goal is to ´make every building and apartment a unique domicile in an exceptional neighbourhood!´. • Poponcini & Lootens (POLO Architects) are designing ´Kaai Nieuw Zuid´ and ´Zuiderpromenade´, both of which are being

image: courtesey of Triple Living

built by Interbuild. ´Kaai Nieuw Zuid´ is being created in collaboration with the Atelier Kempe Thill on Van der Sweepstraat / Ledeganckkaai. It offers 77 apartments (total surface area of 15,200 m²), 5 retail units and 2 underground levels (3,953 m²). Delivery is already scheduled for this summer. ´Zuiderpromenade´ will offer 5,161 m² over 6 floors and one underground level. Delivery is scheduled for the summer of 2016. • Architectural firm Robbrecht & Daem is designing the ´Zuidertuin´ project, located on Edith Kielstraat, that has around 12,650 m² distributed over 45 apartments, 4 small houses, 2 retail units and 35 bicycle sheds. Interbuild is the construction partner here as well. Completion is scheduled for the end of 2016. • ´Green Desk´ is an office building designed by ARCHI+I / BUROII and is also scheduled for delivery at the end of 2016. • ´Campus Nieuw Zuid´ is being erected at Ledeganckkaai 1-5 and will offer student housing. The project bears the signature of architectural firm BOB361 and February 2016 is the target delivery date. In addition, ‘Triple Living’ has announced future cooperations with the architectura firms A2O, Baumschlager & Eberlé in collaboration with Styfhals & Partners.

There will be just a single internal street along which traders can establish themselves. Cars are banned from the visible circulation roads to the underground cluster parking structures, located at a maximum walking distance of 70 metres from the residence.

BELGIUM REAL ESTATE SHOWCASE 2015 77

KCAP architects – EVR architects

FLANDERS ANTWERP HOUSING DEVELOPMENT SCHEME

Striga 1 will stand 80 m above Nieuw Zuid site and provide 15,000 m² of usable floor space. The base includes 4 floors, above which will rise the 26 floors of the residential tower. The design provides a highly varied residential offering directed toward young families as well as seniors, two-income households, singles and singles living together. The facade has been developed so that there are private outdoor spaces as well as communal outdoor gardens.

Vertical city living The Brussels architectural firm BRUT architecture and urban design, in collaboration with one of the oldest, largest and most innovative architectural firms in Scandinavia, the Danish C.F. Møller architects, has won the architectural competition for Striga 2, one of the high-rise developments of the ‘Nieuw Zuid’ urban development. In their draft design they redefined the residential tower as a stacked community. Therefore the tower provides a wide variety of housing types to address very diverse residents. There are small flats for young people, lofts for young twoincome couples, large family residences, flats adapted for older people, and more innovative duplex residences. The master plan for Nieuw Zuid determined the contour and height of the tower. By dealing efficiently with the available space, more room was left within the same volume for the individual living areas, and an additional communal aspect could moreover be incorporated, with space for meetings and community activities. The tower has 24 floors and 15,000 m² of floor space distributed over 150 residences, offices, retail units and communal areas. The designers also added outdoor spaces in the form of balconies, winter gardens and roof terraces. In the architectural competition organised by ´Stadsontwikkeling Antwerpen Zuid´, KCAP Architects & Planners (Rotterdam) in collaboration with EVR-Architecten (Ghent) won also the competition for the second tower (Striga 1) to be erected in the ‘Nieuw Zuid’ urban development Hoboken Groen Zuid The first occupants of ´Groen Zuid´ will take up residence as of 2017. With this new residential area in Hoboken, project developer CORES Development is putting the emphasis on affordable living in a green environment. The project developer is targeting a varied buying public, from start-ups through young families to seniors. For the architectural approach, CORES Development is entering into a joint venture with the architectural firms Crepain Binst Architecture (CBA), Meta Architectuurbureau, STAM Architecten and BOB 361 Architects. Crepain Binst Architecture is acting as master architect and is supervising the execution of the visual quality plan. The size of the site is 7 hectares, half of which is reserved for public space (park) and semi-public space (private gardens and shared inner gardens).

78 BELGIUM REAL ESTATE SHOWCASE 2015

BRUT architecture and urban design / C.F. Møller architects

Vertical mini-communities The high-rise Striga 2 tower is distinguished by a pattern of levels that is draped around the volume like a veil. This light structure makes the distribution and grouping of the various housing types visible. Within each level, flats are grouped in a collective entity that connects to the terrace areas. The residences are consistently grouped like vertical mini-communities. On the end elevations, glass winter gardens have been designed to serve as green outdoor living areas that can be closed off. The draft design also proposes various communal areas, a bicycle repair area, and a common laundry room at the foot of the tower. A shared double-height space for the residents connects to the roof garden an op of the low-rise portion, while a green triplex tower room guarantees spectacular panoramas over Antwerp and the Scheldt. More information and pictures on www.pro-realestate.be/projects/StrigaII

Smart terrace building´ is another sustainability-supporting pillar. The double-use terraces allow occupants to use a part of the terrace as both an indoor and outdoor space.

´Groen Zuid´ will offer 480 residential units with a diverse character. One special feature is that the housing possibilities can be associated with ´Assisted Living´. This living concept ensures independent and care-free living in private ownership. Along with a package of unobtrusive infrastructural facilities, ´Assisted Living´ includes a package of services and care that are delivered by a partner organisation. To connect with Antwerp, public transport and bicycles are being given priority. A newly to be built central cycling path crosses the entire site and assures the link between the centre of Hoboken, the banks of the Scheldt river and Antwerp city centre. Underground parking facilities keep the traffic within the new quarter low. Number of ponds will be present in this green landscape but not only for the view. They will help the rainwater to be held temporarily making possible to establish a sustainable rainwater system.

After a period during which it was above all the northern part of the city that was receiving great attention, with urban area developments like Spoor Noord, Eilandje and construction projects like the Artesis Plantijn University College and the ZNA hospital, it is now the southern development that is attracting attention, with large-scale residential developments such as Nieuw Zuid and Groen Zuid - without forgetting Blue Gate Antwerp as a high-quality and ecoeffective waterfront business area.

Eduard Coddé ✍

BELGIUM REAL ESTATE SHOWCASE 2015 79

FLANDERS INVESTMENT & OFFICES MARKET TRENDS / GHENT

Ghent in lower gear After several strong years the Ghent office market fell slightly back in 2014. The take

up of ± 51.000 m² represents a 15 % decrease compared to 2013. This fall back is not abnormal given the high activity in previous years. With an office stock stabilizing at around 1.4 million m², Ghent remains the number two office market in Flanders.

Pascal Vanhumbeeck Consultant MRICS de Crombrugghe & Partners

ake up in 2014 amounts more or less 51,000 m². Most of the deals, around 70 %, were concentrated in the south district and were driven by corporates (± 95%). The largest transaction was the purchase by Optima Bank & Optima Global Estate of the Keizer Karel Building (± 8,800 m², Gebroeders Van Eyckstraat 2-16), which will be completely renovated before autumn of this year. Another large deal is the purchase by social security organization Solidariteit voor het Gezin (4,000 m², Tramstraat in Zwijnaarde). Several real estate projects were delivered in the course of 2014. In particular the Blue Towers just beside the Ghelamco Arena (28,000 m²) and the new AA tower (13,000 m²) in Zwijnaarde developed by MG Real Estate (De Paepe) for KBC. Top rents for new office buildings remained stable at around € 150/m²/year. The presence of new modern office projects and the limited vacancy result in a higher prime rent than on the Antwerp office market, where vacancy is higher and almost no new buildings are actually on the market. In other regional markets the take up is showing different trends. Antwerp performed quite well in 2014, Mechelen disappointed and the Leuven figure is completely warped by the sale of the former Telindus building located in the Haasrode research park to Leuven University (KU Leuven) (25,000 m²).

Investments: one transaction takes it all One large investment transaction was closed at the end of 2014. As the sale of the new administrative headquarters building for the Flemish administration (Virginie Loveling building, former VAC Ghent) could not be realised via the introduction of a real estate certificate for budgetary reasons, the building was put on the market. Following strong competition, AG Real Estate put in the winning bid and became the new owner of this 35,000 m² office building, let to the Flemish government for a 20 year fixed term at an announced initial yield of 5.15%, marking a new record for the Ghent office market. On April 9th this year, the shareholders of the company ‘Tetris Offices The Loop Building One’ - Banimmo (80%), Grondbank The Loop (10%) and Sogent (10%) -, signed a sale agreement with the common insurance fund Integrale involving the acquisition of the 7,300 m² building currently under development in the Tetris Business Park and let to Deloitte on the basis of a 15 years lease contract. The sale price amounts to € 22,600,000. Perspectives The overall situation of the Ghent office market is still good. Most of the new developments are completed and the market is awaiting new offices buildings that will be added to the market before the end of the year and in the near future.

The Loop, a 145-hectare new district, is taking shape The ‘The Loop’ site is on the former Sint-Denijs-Westrem airfield (1910 – 1984). It includes the ‘Flanders Expo’ exhibition space, the Ikea store, and at the edge the KBC Tower which was inaugurated in 2013. A master plan and a Spatial Planning Programme has been drawn up splitting the area into 18 lots (fields), each with targeted developments involving many real estate developers, both public and private. Located close to the junction of the E40 and E17 motorways, The Loop site benefits from excellent accessibility by road. The presence of these two motorways, along with the proximity of the R4 towards Zelzate, connected to the E34, leads to this accessibility being even further improved. Public transport serves the site with a tram line. De Lijn has scheduled bringing a bus line into service which will directly link Ghent Sint-Pieters railway station and the station can be reached by cycle in less than 10 minutes.

80 BELGIUM REAL ESTATE SHOWCASE 2015

Arch & Teco for Banimmo

“ Given the low vacancy rate, below 5%, there is indeed some space for speculative developments in Ghent’s office market “ Although economic growth is still very low the development market has confidence in the Ghent office market as new developments are announced and under construction without being completely prelet. Given the low vacancy rate, below 5%, there is indeed some space for speculative developments. The office project pipeline remains well filled. More than 100,000 m² is already in the planning phase and a further 100,000 m² may follow. Further developments on The Loop site Upcoming projects are mainly to be found in the southern district, especially on the The Loop development zone, such as the Banimmo project to be built for Deloitte and delivered by the end of this year. This building of 7,300 m2 is part of the ‘Tetris Business Park’ launched at the beginning of 2014 on field 5 – east zone of The Loop site.

The Deloitte building forms part of the Tetris Business Park and is being constructed at one end of field 5. The other end is all to be taken by the Flemish Environment Agency which installed 7,500 m² of offices and laboratories in a brand new building.

All buildings located in this business park will consist of blocks of 18x18 to ensure maximal flexibility in terms of surface area needs. The total floor area will amount to around 60,000 m² (including the VMM building (7,500 m²) completed in 2012). The development of the ‘Take Off’ office park’ by Euro Crossroads Property Developers goes further with the construction of additional buildings on field 1 and field 5 West of the Loop site. When completed, the ‘Take Off’ office park’ will offer some 33,000 m² of office space. The Baltisse family investment fund is building its new headquarters on field 7. Completion of a four storey high building (1,041 m2) is expected for October of this year. It will be the most northerly in a series of 7 or 8 buildings of similar size to be built on this plot.

BELGIUM REAL ESTATE SHOWCASE 2015 81

FLANDERS INVESTMENT & OFFICES MARKET TRENDS / GHENT

Other developments In cooperation with Participatie Maatschappij Vlaanderen (PMV) the Eastern Flanders Province will start the construction of its new headquarters. The choice was made for the site of the Leopold barracks in Ghent city centre opposite the Citadelpark. The building belongs to the SPF Defence and the City of Ghent. It will be renovated and converted to accommodate offices, meeting rooms, classrooms and other services. The Quantum office building under construction by real estate developer Alides, is part of the Oudde Dokken mixed-use rehabilitation program. The first occupants may be able to move in as of the beginning of next year.

82 BELGIUM REAL ESTATE SHOWCASE 2015

The buildings offer a total area of 34,500 m² on a plot of 20,000 m². The aim is to rehabilitate the site, and within this context a building consortium should be appointed by the end of 2016. The launch of another office project, part of the redevelopment zone near the Ghent Sint-Pieters railway station, is still uncertain. The plans for the development of the ‘Diamond’ building, which should be one of the landmarks of the new district, were already launched in October 2012 by Eurostation. But the city council refused to issue a building permit because the building was too big and too high. On the other hand the developer gained permission from the province but both BuitenSporig Action Committee and the city are taking further legal action to suspend this building permit. As the building permit is not suspended, construction works could theoretically already start. In the meantime, ING, set to locate its new headquarters in this building, risks having to wait for some time. Pascal Vanhumbeeck Consultant MRICS de Crombrugghe & Partners

image EVR Architects for Alides

Mixed rehabilitation of the ‘Oude Dokken’ At the other site of the town the transformation of the ‘Oude Dokken’ is continuing. In the next few years some 1,500 dwellings are to be built in the entire area around the Old Docks. The first part to be developed is the section on the east side of the Handelsdok, where the Schipperskaai will be the site of some 350 residential properties, green areas for residents, a primary school, a crèche and a sports centre. The development of a new 7 store office building at the ‘Oktrooiplein’ in front of the Ghent Dampoort railway station at the beginning of this reconversion zone is also planned. Alides will build the so-called Quantum Building (9,200 m²), at risk. The first occupants may be able to move in as of the first quarter of 2016.

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FLANDERS REAL ESTATE PROJECTS ONLINE LIBRARY

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PROVINCIE HUIS I ANTWERP www.pro-realestate.be/projects/Provinciehuis

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OUDE DOKKEN I GHENT www.pro-realestate.be/projects/OudeDokken

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MECHELEN STATION DISTRICT www.pro-realestate.be/projects/MechelenStation

84 BELGIUM REAL ESTATE SHOWCASE 2015

NIEUW ZUID-STRIGA TOWER I I ANTWERP www.pro-realestate.be/projects/StrigaTower

AP U www

EILANDJE-WESTKAAI I ANTWERP www.pro-realestate.be/projects/Eilandje-Westkaai

VAC GHENT (VIRGINIE LOVELING) I GHENT www.pro-realestate.be/projects/VAC-Ghent

AP UNIVERSITY COLLEGE I ANTWERP www.pro-realestate.be/projects/APUniversity

DE KROOK I GHENT www.pro-realestate.be/projects/deKrook

HAVENHUIS I ANTWERP www.pro-realestate.be/projects/Havenhuis

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WATERVIEW I LEUVEN www.pro-realestate.be/projects/Waterview

BELGIUM REAL ESTATE SHOWCASE 2015 85

W Picture courtesy of ATENOR

Offices letting & investment market I Liège Demand still outstripping supply but not for long

86 PROFACILITY GUIDE 2012

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Offices letting & investment market I Namur

Picture courtesy of IGRETEC. Image MDW architecture

Picture courtesy of Wilhelm & Co. Architect Skope

The Walloon capital lives up to its title

Town planning projectsreview Major real estate development projects in the pipeline

Charleroi urban rehabilitation

Up-and-coming office market in the city centre PROFACILITY GUIDE 2012 87

W WALLONIA

WALLONIA REAL ESTATE OFFICE MARKET / LIÈGE

Demand still outstripping supply The years that go by seem remarkably similar in the Liège region. The market is dynamic

and promising, but is suffering from a chronic lack of offices both in the city centre and on the periphery. Yet contrary to preconceived ideas, these two zones are not competing with each other. Where prices are concerned, prime rents have tended to be on the increase in the 2010 to 2014 period.

Christophe Nihon Managing Director, Immoquest

The city takes precedence over the periphery Fifteen transactions amassed a total of some 10,000 m² in 2014, which is average for the past few years.

• The hyper-centre. Right in the heart of Liège, the Sauvenière-Avroy-Guillemins axis constitutes the spinal column of office property, concentrating the administrative and public service activities which are located on large floor areas. Another specific characteristic is the number of professional activities to be found in the town houses of the adjacent streets. This zone has accounted for 45% of space taken up over the past five years. The average amount of space taken up is close to 1,500 m². It is therefore no surprise that the only office building projects currently to have received building permits, E. Lyge and Ardent Project, are located in this zone.

image Jaspers-Eyers Architects | A2M | Greisch Architects for Befimmo

Courtesy of Befimmo - Design Jaspers-Eyers Architects /A2M / Greisch

Mixed-use ‘Paradis Express’ project to be developed by Fedimmo along the esplanade of the Calatrava train station

The 620,000 m² of office stock is made up, to the tune of almost 70%, by buildings which are more than five years old. Over recent years the stock of new buildings has expanded thanks to the construction of new offices for own use: the annex to the Liège law courts (45,000 m²), the Finance Tower at Guillemins (60,000 m²), CMI headquarters at Seraing (7,500 m²), Media Rives alongside Médiacité (8,000 m²)… Projects destined for the letting market have also seen light of day: Office House at Rocourt (3,600 m²), Alleur Office Park (7,500 m²) and Liège airport buildings (more than 8,000 m²).

Most transactions recorded over the past five years (2010 to 2014) involve space of less than 400 m², and mostly in buildings located on the periphery. By contrast, surface areas of over 1,500 m² only make up 10% of transactions and are principally to be found in the city centre. These operations almost exclusively involve new or totally renovated buildings. An analysis of these transactions enables the mapping of the principal zones of activity on the Liège office market.

88 BELGIUM REAL ESTATE SHOWCASE 2015

Paradis Express

 courtesy of Immoquest - Design Buol Architects

hile the Liège offices stock currently stands at around 620,000 m², barely 8,500 m² – or 1.4% of total stock – is available for occupation. And to make things worse, the space which is available most often suffers from poor accessibility or is in need of renovation. Supply is so low in Liège, particularly in terms of quality, that most high standard office space automatically finds takers.

With these statistics as support, and by contrast with the often lively debates on the subject, one of the conclusions that can be drawn from this analysis is that projects developed on the periphery do not constitute a source of competition for those developed in the city centre. Reasonable rental levels but insufficient supply Despite an enviable situation in terms of mobility and accessibility by different modes of transport including high speed trains (Thalys, TGV, ICE), by motorway, by air at both Liège and MaastrichtAachen airports, not to mention the city tram projects, rents remain very reasonable compared to Brussels. Office rents are located between

In a recent survey we carried out we have observed more than 437,000 m² of demand since 2009. Why doesn’t this demand transform itself into transactions? More than a third of people reply quite simply that there is a lack of availability. The other principal reasons most frequently cited are that the project is cancelled/ delayed/waiting, the unsuitable location and a too high cost. Outlook A survey undertaken by the SPI – the Liège province ground development agency – estimates that the lack of available office space stands at 40,000 m². Several developers are working in Liège at the moment to close this gap.

Ardent Project

Finance Tower along the Meuse banks

 courtesy of Immoquest - Design Buol Architects

€ 125 and 145/m²/year for new buildings, and between € 95 and 110/m²/year for older buildings. The limited number of annual transactions and the restricted availability on the Liège market lead to often minimal differences between average and prime rents. The restricted nature of the supply of new buildings should be to the benefit of buildings having recently been granted their building permits. The 11,000 m² or so of the E. Lyge building located in the hyper-centre are being marketed at an asking price of € 175/m²/year. The other mixed use building project opposite Guillemins station (Ardent Project by the Circus group), is being advertised at € 145/m²/year for the offices element (10,000 m²). But apart from these two projects, office supply is not set to grow in the short term in Liège-City. Rents being asked for any new quality project located in the hyper-centre, and especially in the Guillemins district, should be located between these two levels.

 Jaspers-Eyers Architects together with Greisch Architects

• The peri-centre takes in the office zones easily accessible by car and with good parking facilities within the territory of the City of Liège (Zénobe business park at Angleur, Office House at, Rocourt, Timmermans quayside at Sclessin…). These locations attract 25% of the total space rented, with an average of 825 m² per transaction. Companies such as PwC, Lampiris and Air Liquide, among others, have chosen to locate in this peri-centre. • Contrary to preconceived ideas, while the Liège periphery – which in particular takes in the communes of Alleur, Grâce-Hollogne, Seraing, Herstal, Awans, Battice, along with the Liège Airport zone – has generated 54% of the volume of transactions, they only account for 30% of the surface area taken up. These transactions are generally for small surface areas (lower than 400 m² on average).

BELGIUM REAL ESTATE SHOWCASE 2015 89

WALLONIA REAL ESTATE OFFICE MARKET / LIÈGE

Office buildings projects in the pipeline for 2016 > 2020

2017 1 E. Lyge/Cadran : ± 10,000 m2 2019 2 Féronstrée 54 : ± 11,000 m2 2017 3 Ardent project / Circus : ± 10,000 m2 2020 4 Paradis Express 5 SNCB Plan Incliné : ± 65,000 m2 2020 6 Bonne-fortune project : ± 30,000 m2 2019 7 Hôpital de Bavière : ± 20,000 m2 2016 8 Val Benoît/SPI : ± 12,500 m2 2018 9 Val Benoît BPI / Moury : ± 15,000 m2 2018 10 Cristal Park : ± 20,000 m2

The most advanced projects, each with a permit for 10,000 m², are by the Buelens group (Elyge project in the Cadran district close to the Place Saint-Lambert) and Immo Retail / Circus (mixed project close to Guillemins station). A large scale transformation project has also started, to convert the former department store ‘Innovation’ building on the Rue Féronstrée into 11,000 m² of offices and 2,700 m² of retailing. A large development hub is located in the neighbourhood of Guillemins station alongside which the new and spectacular tower constructed by Fedimmo, is destined for the civil servants of the Finance public service, who are gradually leaving their neighbouring building, scheduled for demolition. The esplanade in front of the station offers further usable space. Befimmo subsidiary Fedimmo owns a parcel of land there neighbouring the new Finance Tower and located along this esplanade. It is the company’s intention to construct a new eco-district here, a mixed district of offices, housing and local shops. At the end of 2013, in close cooperation with the city of Liège and the Walloon Region, Fedimmo launched a call for tenders for the construction of this complex which totals some 35,000 m² of built area. In the middle of April this year, they unveiled the ‘Paradis Express’ project which will be undertaken by a consortium made up of architects Jaspers-Eyers, A2M, and Greisch, study bureaux TPF engineering and Bureau Lemaire, and the association of contractors 90 BELGIUM REAL ESTATE SHOWCASE 2015

Duchène, Galère and Interbuild. The project will now be subject to an impact study and to one or more individual permit requests. Fedimmo has announced that the project will be nonspeculative. Works will not start until the risks allied to occupation have been sufficiently covered. Infrabel, for its part, is making the effort to develop office space (65,000 m²) on the area adjoining the Plan Incliné, where the ABX depots were previously to be found. Rehabilitations and conversions Not far from there, the rehabilitation of the Val Benoît site is going well. It is being managed by the SPI. The renovation of the buildings previously occupied by the University of Liège, before it moved to Sart-Tilman, should provide a supply of office space of some 30,000 m². The future constructions will be largely mixed use in nature, made up of offices, but also of workshops. The renovation and transformation of the former civil engineering institute should be complete at the beginning of next year (13,000 m²). The SPI will then turn its attention to rehabilitating the chemical/metallurgy institute located on the Rue de Solvay (15,000 m²). Alongside the Val Benoît site, CFE/BPI and Moury have ambitions to create office space in new buildings (the Ernest 11 project). They have announced that they will bring a 15,000 m² building to the market by 2018, the year when the Liège tram is set to come into service.

rendering Art & Build Architects for Buelens

Val Benoît

Elyge

Feronstrée 54

➊ One of the tram lines will pass in front of Val Benoît, which will increase attractiveness for companies choosing to locate here. There is still further land able to be developed within the territory of the City, such as, for example, the site of the former Bavière hospital at Outremeuse (20,000 m²). In Seraing, the conversion and transformation of the site of the Val Saint-Lambert glassworks into a mixed complex ‘Crystal Park’, will bring together retailing, a hotel, offices and leisure areas, including the construction of a business park with ten buildings of three floors totalling almost 20,000 m² of offices. Developments on the periphery Following the success involving, among others, the letting of some 8,000 m² in the three buildings which make up the business centre at the airport, Liège Airport has begun a strategy of real estate diversification which is bearing fruit. They are looking towards large scale projects on the periphery with in particular the launch of a new project of 2,000 m², and a huge land potential. Another substantial project is being developed in the commune of Ans, in the area known as ‘Bonne Fortune’, by developer Banimmo on a 9.3 hectare site located alongside the E40 motorway, and enabling access to the city centre in just a few minutes. The Ogeo pension fund is also looking, via real estate development company UrbaLiège, to develop a business park for small and medium enterprises in Montegnée within the commune of Saint Nicolas on a site of 11 ha (part of the former Espérance coal-mining site).

courtesy of Assar Architects

➋

➌

According to the survey undertaken by the SPI estimating that the lack of available office space stands at 40,000 m², there is therefore plenty of room for new projects. But we now officially know that Liège is not to see an inflow of further civil servants following the sixth reform of the State which saw a substantial transfer of areas of competence from the Federal State to the Regions. While there is a very important lack of quality offices at the moment, moderation remains the key-word, in order to avoid the ‘everything into offices’ extreme. Some developers appear to have understood this by developing mixed use complexes such as Crystal Park or the large scale ‘Vennes District’ project to be erected on the two hectare site currently partially occupied by the Mercedes-Benz dealership (around 100,000 m²). The developers of this project – Thomas & Piron and Serge Barvaux– announced at Mipim that they were to mandate to Rem Koolhaas, one of the biggest names in contemporary architecture, the job of designing what is set to be the second tallest tower on the Liège skyline. A sign which bears witness to the renewal of interest in Liège, both at national and international levels.

➊ The renovation and transformation of the former civil engineering institute on the Val Benoit site should be complete at the beginning of 2016 ➋ The E.Lyge office building project will oﬀer a total surface area of 11,000 m² in the Cadran area on the heights of the Place Saint-Lambert. ➌ Large scale transformation project to convert the former ‘Innovation’ department store building on the Rue Féronstrée into 11,000 m² of offices and 2,700 m² of retailing.

Christophe Nihon Managing Director Immoquest

BELGIUM REAL ESTATE SHOWCASE 2015 91

WALLONIA INVESTMENT & OFFICE MARKETS / NAMUR

The Walloon capital lives up to its title The institutional status and central geographical location of Namur are putting wind its sails. The stock of public and private office buildings is gradually growing, helping

to ensure the office-based character of the city. The Walloon Region is reinforcing its presence, and the regional headquarters of companies and other bodies are multiplying.

Christophe Nihon Managing Director, Immoquest

The CBC has decided to leave Brussels to come and set up its new headquarters on the banks of the Meuse at the site known as ‘Port du Bon Dieu’, a mixed-use real estate development of Atenor with 140 apartments to be build and 8.000 m2 of offices for CBC.

92 BELGIUM REAL ESTATE SHOWCASE 2015

Major strengths These statistics bear witness to an evident dynamism which cannot but attract the attention of real estate investors. This is all the more the case as Namur possesses two unique advantages. Firstly, in terms of its geographical location, its lies at the centre of Wallonia where road and rail infrastructures are concerned: horizontally

between Liège and Charleroi on the E42 motorway, and vertically between Brussels and Luxembourg on the E411. With a good level of public transport services, it is also relatively free of traffic congestion when compared to the interminable queues seen elsewhere. This is becoming a vital factor: the ‘mobility’ element is taking on growing importance as a criterion of choice which guides the selection of a location for companies. Secondly, Namur is increasingly assuming its role as the political capital of Wallonia, of which the local dignitaries are so proud. This status was confirmed in the latest Regional Policy Declaration and has been further strengthened within the framework of the reform of State. The ranks of the civil servants are set to be swelled with new competences arriving on the banks of the Meuse (family allowances, road safety, healthcare…). Public authorities as a driver The presence of the regional public authorities obviously has a considerable impact on the office market. The ministries, administrations etc. are mainly concentrated in Jambes, on the other side of the river from the historical and commercial city centre.

courtesy of ATENOR – Design Montois & Partners Architects / Atelier de l’Arbre d’or

ong considered as a tranquil city, or even half asleep, Namur has unquestionably gained in importance over recent years. On the banks of the Meuse, the quality of life in Namur is recognised, and is attracting inhabitants: the population numbered 110,665 on January 1st 2014. According to the communal structure plan adopted in 2012, this population is set to grow to 119,000 by 2025. Amongst the population are some 58,000 working employees and around 8,400 independents, a total of 66,400 actively working persons. The ratio of internal employment is 91.7%: this figure is an indication of the jobs on offer to those of working age (1564) within the territory considered, i.e. the city of Namur. This is very substantially higher than the Walloon average of 55.4%!

courtesy of ATENOR – Design Montois & Partners Architects / Atelier de l’Arbre d’or

They occupy dozens of buildings and accommodate many jobs, generating substantial returns for Namur and its surroundings. With a combination of the Federal, provincial and city authorities, the public sector occupies most of the overall office stock of Namur, which is estimated to total some 435,000 m². Current availability barely amounts to 3% and maximum rents reach € 155/m²/year. Regional headquarters This substantial institutional presence brings a series of other players, to a greater or lesser degree gravitating around the regional authorities, in its wake. Added to these are those who wish to associate their brand image with the status of capital and with this central geographical location. To illustrate this are several large transactions which have taken place over recent years: the headquarters of the CSC (5,000 m² at Bouge), Thomas & Piron (2,400 m² at Wierde), the office extension for the headquarters of the ‘Middle Classes Union’ (10,000 m² at Wierde), the State Archives (5,000 m² in Namur).

Harmonising the developments The public sector is not being left behind, with the project to extend the Walloon parliament (7,000 m² of offices for the MPs’ and the President’s buildings), and the Law Courts on the former barracks site (31,000 m²) for which the permit has been granted and awaiting start of works. And this is all without counting on the communal authorities, aware of their role as a motivating force and in welcoming mode where the private sector is concerned. They are, for example, and together with Eurogare, investing themselves in the development of a multimodal transport hub which will see the bus station located on the roof of Namur railway station and the development of an adjacent shopping centre where the bus station and a car park are currently located. It is therefore the city centre, Jambes and the major access routes which offer high visibility, which are attracting new installations. There is still space availability in terms of construction, demolition/reconstruction and renovation operations, in the knowledge that the communal

“ The public sector occupies most of the overall office stock of Namur, which is estimated to total some 435,000 m² “ Other headquarter locations are under consideration, including the Christian Mutual Society (6,000 m² at Bouge) and the Federation of Hospital Institutions (690 m² at Erpent). For its part, the CBC has decided to leave mighty Brussels to come and set up on the banks of the Meuse at the site known as ‘Port du Bon Dieu’. Projects pipeline Developers have also been adding to the office stock, or are about to. Following the success of Alleur Office Park on the Liège periphery, Hobelco is mounting a similar operation with Green Park (10,000 m² at Jambes). Thomas & Piron and BAM are currently constructing three office buildings (Arc project of 15,000 m² on the Boulevard Cauchy in the city centre, alongside the State Archives). Eaglestone has just started the Aquilis mixed-use project which will offer 20,000 m² of office space at Jambes on the site where Atradius company is located. Other local players, such as Actibel are undertaking smaller scale operations which are suited to the more numerous demands for smaller surface areas.

state of mind remains overall that of a mix of functions across the city. An example of this availability is the former fire station (3,500 m²) which has just been put up for sale. The office market also has to take in the periphery and the business parks located in Namur Province. The BEP (Namur Province Economic Development Agency) has recorded a high level of occupation within these infrastructures: it has grown to around 90% on average in its 19 relaybuildings (offices and workshops), and stable at 85% in its eight business centres (mostly comprising offices).

Christophe Nihon Managing Director Immoquest

BELGIUM REAL ESTATE SHOWCASE 2015 93

WALLONIA REAL ESTATE PROJECTS ONLINE LIBRARY

ARDENT PROJECT I LIEGE www.pro-realestate.be/projects/Ardentproject

LA SUCRERIE I ATH www.pro-realestate.be/projects/Lasucrerie

VA ww

MONS STATION DISTRICT www.pro-realestate.be/projects/MonsStation

BELGIUM REAL ESTATE SHOWCASE 20152015 94 94 BELGIUM REAL ESTATE SHOWCASE

ELYGE I LIEGE www.pro-realestate.be/projects/ELYGE

RM ww

FN HERSTAL I LIEGE www.pro-realestate.be/projects/FNHerstal www.pro-realestate.be/projects/Lastrada

CRISTAL PARK I LIEGE www.pro-realestate.be/projects/CristalPark

LA STRADA I LA LOUVIERE www.pro-realestate.be/projects/Lastrada

AQUILIS I NAMUR www.pro-realestate.be/projects/Aquilis

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ARC I NAMUR www.pro-realestate.be/projects/Arc

LES JARDINS DE COURBEVOIE I LOUVAIN-LA-NEUVE www.pro-realestate.be/projects/Courbevoie

COURT VILLAGE I COURT-SAINT-ETIENNE www.pro-realestate.be/projects/CourtVillage

RMI CHARLEROI www.pro-realestate.be/projects/RMI

WWW.PRO-REALESTATE.BE/PROJECTS

RIVE GAUCHE I CHARLEROI www.pro-realestate.be/projects/RiveGauche

BELGIUM BELGIUM REAL REAL ESTATE ESTATE SHOWCASE SHOWCASE 2015 2015 95 95

WALLONIA TOWN PLANNING & OFFICE MARKET / CHARLEROI

Up-and-coming office market in the city centre The office market in Charleroi is currently very limited, at least in the city – most new office buildings have been constructed in the Aeropole zone near the airport over recent years. In light of the numerous major developments in the heart of the city, however, it

can only be observed that there is an up-and-coming office market in the centre of a city which is aiming to regain its ‘metropolis’ status.

Christophe Nihon Managing Director, Immoquest

Projects being developed in the lower town Alongside, the former National Bank building on the banks of the Sambre is being converted into a cultural centre, with cinemas, concert and exhibition areas, and artists’ lodgings. Renovations are multiplying on the Boulevard Tirou, such as the large Innovation department store which is undergoing a rejuvenation treatment. Office buildings are not lagging behind, with the renovation of the AG Insurance premises, the construction of a building for the RTBF and Télésambre on the re-laid out Place de la Digue and more spectacularly, the new offices of BNP Paribas Fortis (11,400 m² over 8 floors). IRET and Banimmo are, through an 8 million Euro investment, creating a zone destined in time to accommodate a concentration of offices. The neighbouring area has also been under construction for a short while at the initiative of IRET: the ‘RMI project’ building will see light of day in 2016, backing onto a shortly to be renovated existing building. The whole complex will offer some 16,800 m² which, it is said, may be occupied by the civil servants of the Federal Justice or Finance services. The neighbouring former Belgacom offices (9,500 m²), empty for many years, are still waiting for a new use. They suffer cruelly from lack of parking.

Doc IGRETEC

The current masterplan for the west business centre in the lower town, schedules the construction of 77,000 m² of offices spread across several blocks along with 140 residential units.

short walk through Charleroi, particularly in the lower town, is worth more than all the words: the city has clearly entered into a phase of deep transformation and of urban regeneration. The newly refurbished quays alongside the Sambre, opposite the station, set the tone. They do not hide the forest of cranes currently towering over the city. And these symbolise a phenomenon which the city authorities wish to see grow: rehabilitating the public areas (partially financed by European funds- FEDER) has to act as a catalyst for operations from the private sector. Within this context, the current giant hole dug in the middle of the city has brought various other neighbouring worksites in its wake. The construction of the Rive Gauche shopping centre is redesigning a vast zone encompassing in particular the Albert 1er and Buisset squares and the Triangle. This future 35,000 m² complex will mainly include shops, but also housing, a hotel and 900 parking spaces. The Saint Lambert Promotion (behind which are to be found Éric De Vocht of Robelco and Shalom Engelstein) investment amounts to some 200 million Euros. The aim is for the shopping centre to open at the end of 2016.

96 BELGIUM REAL ESTATE SHOWCASE 2015

Development hub around the station Just a stone’s throw from there, the 3.5 hectare site of the current car park alongside the Ring – a vast urban project known as ‘West Business Park’ – is set to be developed at the initiative of the City and of IGRETEC (the inter-communal economic development agency). The current masterplan schedules the construction of 77,000 m² of offices spread across several blocks (2 blocks of 2 towers of some 30,000 m² and 2 blocks of towers of some 20,000 m²) along with 140 residential units. Along with the car park to be dismantled during the course of this year, the site also includes ground belonging to several public players (City of Charleroi, SRWT, SPW, Sofimma, SNCB), along with buildings of the TEC and the Finance Ministry, whose future has not yet been defined (renovation, demolition, reconstruction?). The dossier is making progress, in particular with the drawing up of the PRU and the finalised permit in 2015. A developer has taken the lead for the construction of a first tower of some

The abundance of worksites in the lower town should not be allowed to hide projects underway or to come in the upper town. Some of these translate the desire of the communal authorities to bring metropolitan functions back into the city. The site of the IGRETEC headquarters thus takes on a symbolic character within the renovated Mayence building and a new building in which Ethias will also be located (Soleo project). In total, some 12,000 m² of offices will see light of day, along with 400 parking spaces, at a budget of 22 million Euros. The works are set to be completed at the end of 2016. The ‘La Sambrienne’ housing association has also launched an architectural competition for its new headquarters. Elsewhere, IGRETEC is continuing to invest in the city centre. The total renovation of the ‘Espace Trésignies’ will be finalised before the summer. This will represent no less than 4,600 m² of office space available for businesses.

“ Charleroi is probably the last major Belgian city which still has space for development around its station “ 15,000 m² of offices, and an occupancy level which has already reached 80%; the works should start at the end of the year and be completed in 2018. The other major professional real estate project is located on the other side of the TEC offices, and more precisely on the esplanade around the South station. The SNCB and the City of Charleroi are the developers of a vast rehabilitation budgeted at 110 million Euros. Going beyond the public facilities and the public transport infrastructures, the masterplan currently being drawn up in particular involves offices and housing. Charleroi is probably the last major Belgian city which still has space for development around its station, along with Liège. The last large piece will complete the jigsaw of the renovation of the lower town. Charleroi upper town Charleroi has a city centre which is divided into the lower town, mostly retail and business in nature, and the upper town; these two zones are most clearly linked by the Rue de la Montagne, a shopping street, and since 1976 they have been enclosed within the R9 Ring.

The complex is partially dedicated to a business centre. On the other side of the Avenue du Général Michel, the State Buildings Agency is getting ready to construct a new wing to the justice building, to accommodate 6,500 m² for the Prosecutor’s office. And along with this, the demolition of the neighbouring former hospital, which removed recently, is set to make way for housing projects with some offices, in view of the proximity of the legal institution. This district has already seen the emergence of the spectacular cone which houses the new police headquarters, while waiting for the installation of the Fine Arts Museum in a rehabilitated building, and the extension to Charleroi Danses – not forgetting considerations around the football stadium. The northwest quarter of the city, dedicated to training, culture and events functions, is less directly involved in the office market. Nevertheless, projects to construct a congress centre and to renovate the exhibition halls (60,000 m²) are likely to stimulate economic activity in the upper town.

BELGIUM REAL ESTATE SHOWCASE 2015 97

WALLONIA TOWN PLANNING & OFFICE MARKET / CHARLEROI

Office market The office market is currently limited within the city, occupation being principally allied to the presence of civil servants from different levels of power, to public services or to mutual associations. The stock – estimated at around 450,000 m² – is largely insufficient, with the result that availability is very low (less than 1% of the total), and this is in obsolete office buildings. Maximum rents (not including construction for own occupation) are at €120/m²/year. The renaissance of the city centre may lead to companies’ interest being attracted. Today, demand for offices outside of administration and allied functions, is mostly concentrated on the Aeropole, close to the airport. IGRETEC manages this zone, along with the neighbouring business parks, and also a park with 22 structures amounting to some 50,000 m² of offices: business centres offering among others Co-working spaces, industrial sheds, logistics warehouses and production workshops.

The Aeropole, named Biopark Charleroi Brussels, is more and more taking on a biotechnical character, bringing together university research institutions, technological platforms, companies, research validating structures, and a training centre in this domain. This evolution is encouraging the arrival of other service enterprises (e.g. call centres) towards the city centre, and also confirms that the development of activity on the periphery does not necessarily represent competition for the city centre. The Charleroi region, undergoing a great deal of rehabilitation and redevelopment, is therefore not lacking in projects and buildings which should likely attract businesses and developers.

Christophe Nihon Managing Director Immoquest

Doc IGRETEC

Soléo is the name of the new complex being completed and to be used for the headquarters of IGRETEC and Ethias in Charleroi upper town district

98 BELGIUM REAL ESTATE SHOWCASE 2015

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