May 2011
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MIPIM Review Magazine
T H E
www.mipim.com
Asia Day strengthens East-West ties
UK under the MIPIM spotlight
ALSO INSIDE
Inside, page 26
Inside, page 14
keynote address ■ Baku reveals big plans for city revamp ■ Sao Paulo's mayor talks “transformation”
O F F I C I A L
M I P I M
■ Nouriel Roubini delivers
M A G A Z I N E
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••• EDITORIAL
Dear Friends, Welcome to the MIPIM 2011 Review Magazine, bringing you the highlights of what was an extremely busy and high-energy edition of the world’s property market.
Filippo Rean
I want to start by thanking you for your support for MIPIM. In March it was clear that the industry is building on the foundations of economic recovery and market research released during MIPIM by the likes of CBRE, Cushman & Wakefield, DTZ and Jones Lang LaSalle, indicated investment growth and diversification in 2011. What was striking at MIPIM was that we saw major development projects from around the world and with over 18,500 delegates from 90 countries, MIPIM 2011 was a true coming together of the international real estate community. London and Sao Paolo promoted their real estate plans that are linked to holding the Olympic Games and the FIFA World Cup. China’s fourth largest city, Chongqing, attended for the first time to outline its development proposals which will see the city double in size by 2020 and the delegation from Rwanda, headed by Prime Minister Bernard Makuza, unveiled the €6.7bn development project for the capital Kigali. Hundreds of private companies came to MIPIM to showcase their latest developments to investors and to the real estate community in general. From Turkey, Zorlu Property presented the mixed-use Zorlu Centre and the Zorlu Levent office project, both based in Istanbul, and from Russia, the Northern Caucasus Resorts Company lifted the curtain on the world's largest skiing development involving five separate resorts and an investment in excess of €10 billion. The international real estate industry does not operate in a vacuum. It is affected by and plays a major role in the global economic market. Which is why we decided to invite leading international economist, Dr Nouriel Roubini, to address delegates on how he sees the world economy developing. The excellent attendance at Dr Roubini’s keynote speech underlines the importance of keeping abreast of economic developments and MIPIM will continue to provide you with world class speakers. In 2012, buildings will be at the centre of the MIPIM programme. We’ll be identifying which properties are most sought after by investors and why. We’ll be looking at what features have become indispensible in order for a project to be considered Class A. And we’ll be exploring what tenants are prepared to pay in the short- and medium-term. This year we had the pleasure of welcoming Mayor of London Boris Johnson as part of a very successful United Kingdom Country Of Honour initiative. Next year, attention will focus on Germany as our 2012 Country Of Honour. For anyone interested in the vibrant German real estate market, MIPIM will be the place to be. Filippo Rean MIPIM & MIPIM Asia Director
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••• CONTENTS
NEWS Strong global turnout is sign of ‘appetite to do business’
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UK - COUNTRY OF HONOUR
Motel One hotel deal tops off ‘amazing’ week for Edinburgh Earls Court to be transformed into series of ‘urban villages’
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ASIA
Chongqing makes strong case for potential investors Strong MIPIM turnout reflects Asia’s international ambitions MIPIM Asia feedback confirms the region’s vibrant outlook
MIPIM Review magazine
CITIES
May 2011
Cities are the future, says London mayor
Director of Publications: Paul Zilk
FRANCE
Editorial Department Editor in Chief: Paul Strohm — Technical Editor in Chief: Herve Traisnel — Deputy Technical Editor in Chief: Frederic Beauseigneur — Graphic Designer: Carole Peres — Sub Editors: Phil Sommerich, Joanna Stephens — Proof Reader: Debbie Lincoln — Contributors: Mark Moore, Graham Parker Editorial Management: Boutique Editions Production Department Content Director: Jean-Marc Andre — Publications Production and Development Manager: Martin Screpel — Publishing Product Manager: Chealsy Choquette — Publishing Co-ordinators: Emilie Lambert, Amrane Lamiri, David Le Chapelain, Bruno Piauger — Production Assistant: Veronica Pirim — Production Assistant, Cannes Office: Eric Laurent — Printer: Riccobono Imprimeurs, Le Muy (France). Published by Reed MIDEM BP 572 — 11, rue du Colonel Pierre Avia — 75726 Paris Cedex 15, France Contents © 2011, Reed MIDEM Market Publications — Publication registered 2nd quarter 2011 ISSN 1968-2379
Dynamic new urban image for ‘future-oriented’ Calais
www.mipim.com
32
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GERMANY
Berlin sets new standards for a greener life-work balance
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ITALY
Milan seeks partners to share in post-industrial renaissance
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CENTRAL AND EASTERN EUROPE
Be ‘country-specific’ in Central Europe, panel urges investors
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TURKEY
Investment Laboratory dissects Turkey’s ‘fantastic’ prospects
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RUSSIA
EU standards heighten appeal of Caucasus mountain resorts Renova round-table highlights ‘enhanced’ Russian prospects
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SOUTH-WEST ASIA
New city centre for Baku will be biggest scheme in the Caucasus
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MIDDLE EAST – NORTH AFRICA
Cairo targets world’s investors with mixed-use mega-projects
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AFRICA
Prime minister flies flag for ‘investor-friendly’ Rwanda
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NORTH AMERICA
Surprise Pointe seeks ‘unique investor’ with $20m to spend
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LATIN AMERICA
‘Magical’ Sao Paulo confronts challenge of explosive growth
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HOTELS TOURISM AND LEISURE
Osnova fulfils MIPIM mission with hotel deal in Volgograd
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KEYNOTE SPEECH Accentuating the positives
MIPIM IN PICTURES Printed on 100% recycled paper
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MIPIM AWARDS
58 12 28 34 20
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Development
Management
Investment
Kiev investment guide De-luxe hotel Location: CBD, Kiev Kiev,, Ukr Ukraine aine Total T otal o p pr project oject ar area: ea: 15 907 sqm Number of rrooms: ooms: 109 Curr Current ent status: Design stage,
negotiations with oper operator ator
Big box rretail etail + de-luxe rretail etail + offices
Entertainment pavilion, digital gallery
Business class rresidential esidential complex
Class A office complex
Location: On a major city highway highway,,
Location: City ity center center, r, Kiev, Kiev, Ukr Ukraine aine Land plot ar area: ea:
Location: City center center, r, Kiev, Kiev, Ukr Ukraine aine Land plot ar area: ea: 0,89 hectar hectares es Total T otal o p pr project oject ar area: ea: 46 706 sqm Net rresidential esidential ar area: ea: 25 183 sqm Curr ent Status: Current
Location: CBD, Kiev, Kiev, Ukraine Ukraine Land plot ar area: ea:
Kiev,, Ukr Kiev Ukraine aine Land plot area: area: 21,5 hectar hectares es Total T o otal project project ar area: ea: 208 200 sqm Retail center: 89 378 sqm VIP retail retail center: 15 952 sqm Parking: for 8 000 car cars s
0,11 hectar hectares es in freehold freehold Total T o otal ar area: ea: 800 sqm
3*hotel + 1-2* hotel + office
Aloft Kiev – selected service hotel
Business Park
Business class rresidential esidential complex
Location: 5 min to centr central al rrailway ailway station, Kiev,, Ukr Kiev Ukraine aine 3*hotel: 150 rrooms, ooms, 6 750 sqm 1-2* hotel: 150 rrooms, ooms, 4 500 sqm Office: 10 000 sqm GLA Current «Project» Curr ent status: Stage «Pr oject»
Location: CBD, Kiev Kiev,, Ukr Ukraine aine Total T otal pr o project roject o oje ar area: ea: 18 311 sqm Number off rrooms: ooms: o 320 rrooms ooms and 6 apartments Expected delivery date: July 2012 Operator: International oper operator ator
Location: Frunze St., Kiev Kiev,, Ukr Ukraine. aine. Land plot ar area: ea: 7,1 hectares hectares Total T o otal project pr oject ar area: ea: 120 000 sqm Current Curr ent Status: Design stage
Location: City center center, r, Kiev Kiev,, Ukr Ukraine aine Land plot ar area: ea: 1,01 hectar hectares es Total T otal pr o project oject ar area: ea: 87 429 sqm Net rresidential esidential ar ea: 47 463 sqm area: Curr ent Status: Construction Current permit obtained, test of piles, engineering of the territory
Construction permit obtained, test of piles, engineering of the territory
0,52 hectar es in fr eehold hectares freehold Total T otal pr o project oject ar area: ea: 61 849 sqm Curr Current ent status: Construction Expected delivery date: May 2012
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••• NEWS SAVE THE DATE MIPIM 2012 will take place in Cannes from March 6–9.
Outlook mixed, says Roubini Governments need to tackle deficits with conviction
MARCH 10 saw a MIPIM first as renowned economist Dr Nouriel Roubini addressed a packed conference on the global economic outlook and its implications for real estate. On the positive side, he said the recovery has lasted three years, that corporates around the world appear to be in good shape and that emerging economies are rising. On the downside, the recovery is precarious in many places and sovereign risk is still high. There are also large public deficits, which governments need to tackle “with conviction”, he said. (See full story on page 58).
Going Dutch ANOTHER MIPIM ‘first’ was the Gateway Netherlands Pavilion. Designed to provide a focal point for those looking to contact Dutch companies, city authorities and real-estate professionals, the pavilion’s exhibitors included ING REIM, The Hague, Zuid-As, Utrecht, NVM and Funda. A conference programme organised by Property EU/NL, VGM and REP included the session Cross-Border Investment Opportunities In Real Estate. Moderated by Brad Olsen, president of Atlantic Partners, the panel of North American and Dutch fund investors and asset managers included Heitman’s Rob Reiskin and Composition Capital's Maarten Vermeulen.
Victoria Llavero WE REGRET to report that Spanish law firm Gomez-Acebo & Pombo has announced the death of its head of real estate, Victoria Llavero. She died on March 20, 2011 from injuries sustained in a domestic accident. Llavero joined the company 27 years ago as a young property lawyer. In 1993, she became the first female partner to be appointed by a leading Spanish firm.
Strong global turnout is sign of ‘appetite to do business’ AS PROPERTY professionals from around the world converged on Cannes for the 22nd MIPIM, it soon became apparent that numbers were up by most measures of the show. There were more than 18,600 delegates, which represented a 7% increase on 2010. This number included 4,000 investors, 6% more than in the preceding year. Reflecting the mood of the show, UK-based fund and asset manager Rowan's chief executive Nick Jacobs commented: “MIPIM provides the perfect platform from which to reinforce and build key relationships and take advantage of favourable but highly competitive market conditions. MIPIM can mark the start of growing the business again - there are exciting times ahead.” There was a solid core of companies and organisations from
Delegate numbers were up 7% on 2010
Europe, but spectacular projects were also showcased by exhibitors from Azerbaijan, Africa, Russia and South America. MIPIM also drew city administrations from around the world, with about 80 mayors and other urban leaders attending the third MIPIM Mayors' Think Tank.
Lead Think Tank moderator Greg Clark, chair of the OECD LEED Forum on Development Agencies and Investment Strategies, said: "This was the most successful Think Tank held so far, with an amazingly powerful group of individuals showing a great spirit of solidarity and vision. (See full story on page 32).
UK has its moment in the sun MORE than 1,100 British companies attended MIPIM 2011 in what was the UK’s year as MIPIM Country Of Honour. The UK was selected in recognition of its contribution to the global real-estate market during MIPIM’s 22-year history and the role it has played in the promotion of crossborder investment. "Since the launch of MIPIM in 1990, British real-estate companies have understood and supported the idea of an international gathering of property executives and the importance of developing their business beyond national borders. When you consider that real-estate investment in Europe in 2010 was valued at €103.5bn and that €35.1bn of that was in Britain, you get an idea of the
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importance of the UK market,” said MIPIM director Filippo Rean. Mayor of London, Boris Johnson, who was attending his third MIPIM, officially inaugurated this year's
event and also provided a tour de force presentation at a standingroom-only conference. Germany has been announced as Country Of Honour for MIPIM 2012.
Country Of Honour calling: old-style British telephone kiosk sets the scene
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••• CITIES
Mayors meet at city centric MIPIM WHILE NUMEROUS CITY STANDS HELPED GET THE PROMOTIONAL MESSAGE ACROSS, CITY LEADERS MET TO EXCHANGE VIEWS AND SHARE BEST PRACTICES AT A RANGE OF CONFERENCES AND NETWORKING SESSIONS THAT INCLUDED THE MAYORS’ LUNCH AND THE CLOSED-DOORS MAYORS’ THINK TANK
La Defense model gets delegates talking in the Paris pavilion
Manning his city’s stand: Sir Howard Bernstein, chief executive of Manchester City Council
Brazilian delegates from Sao Paulo city hall, Miguel Bucalem, mayor Gilberto Kassab and Alfredo Cotait Neto
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At the Mayors’ Lunch: Stephane Quere of GDF Suez and Elisabeth Ayrault from Sita Region, Ile de France
Russian delegates Mikhail Smetnick and Moscow mayor Vladimir Resin, meet Gyorgy Nanovszky from Budapest and Marko Canovic from Montenegro
At the inauguration of MIPIM 2011: Bernard Brochand, deputy mayor of Cannes (left), Boris Johnson, mayor of London and Bernard Makuza, prime minister of Rwanda
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••• UK: COUNTRY OF HONOUR 2011
Leeds builds connections THE LEEDS City Region (LCR) is celebrating its most successful MIPIM yet, reporting that the event provided an “unrivalled platform to promote our offer and opportunities”. Neil McLean, chair of LCR’s local enterprise partnership and leader of the LCR delegation, said: “MIPIM has provided an invaluable opportunity to share ideas and build relationships with civic and political leaders across Europe, in particular with Barcelona.” LCR has an economy worth over £51bn per annum.
Neil McLean, Leeds City Region: MIPIM an “unrivalled platform”
BNP’s UK debut BNP PARIBAS Real Estate revealed plans for its King’s Cross project, unveiling both a model and images of its first UK property development. The 40,000 sq m scheme, which will be started after the 2012 London Olympics, is being designed to BREEAM and HQE standards. BNP also confirmed that JeanMichel Wilmotte has been appointed as the architect, with Argent acting as consultant.
Team GL Hearn THE UK property, planning and development consultancy GL Hearn brought a team of 12 to MIPIM to showcase its expanded planning-development and regeneration division, led by director Alastair Crowdy. Managing director Brian Sloggett said GL Hearn’s decision to strengthen its presence at MIPIM was prompted by three factors: “An unrivalled opportunity to introduce our newly expanded planning team to the property market, to support our existing clients and to forge new relationships.”
Motel One hotel deal tops off ‘amazing’ week for Edinburgh
London mayor Boris Johnson (left) visiting the Edinburgh stand with Jackie Sadek, chief executive of UK Regeneration and Steve McGavin, Edinburgh City Council’s head of physical development support
EDINBURGH, Scotland's capital, confirmed during MIPIM that the German hotel chain Motel One is to transform former council offices in the city centre into a hotel. The 208-room hotel will be developed at Advocate's Close on the corner of Cockburn Street and Market Street. It will be Motel One’s first hotel outside Germany and Austria. The Motel One deal was just one of
the successes that the city is celebrating in the wake of MIPIM. “MIPIM was amazing for us,” said city council investment promotion manager Jonathan Guthrie. “The follow-up response has been fantastic and we have been able to secure interest in a number of projects and opportunities in Edinburgh through connections made at MIPIM this year. In addi-
tion, we have been building on relationships year on year at MIPIM and MAPIC. We are working up two major investment opportunities with teams contacted and maintained at these events.” He added: “This year more than any other, I noticed the willingness of other cities and regions to share with each other what was good — and to help others to avoid common pitfalls.”
Birmingham shares big ambitions WITH more than 900 investors visiting the city of Birmingham’s stand, council leader Mike Whitby was clear about MIPIM’s role in helping the UK’s second city to develop its brand and perspective on the future. “We first came here in 2005, with no clear vision,” Whitby said. “In 2007-2008, we worked out our city plan — and now we are delivering the projects.” He added: “The Big City Plan — our blueprint to show investors how the city will develop over the next 20 years, including our vision for improving the transport network and connections with the
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runway extension at Birmingham airport and HS2 [high-speed railway] — made for a compelling
offer. I am looking forward to progressing some of the connections we have made.”
Mike Whitby, Birmingham council leader, meets Reed MIDEM’s Paul Zilk
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Residential development and construction services Russia St. Petersburg and Moscow 20+ years of experience 2.7mn sq m of real estate commissioned A solid rating record with Standard & Poor’s (‘B’ since 2006)
Project Overview Emerald Hills, located in the green suburbs of Moscow, embodies the Group’s approach to estate development. Surrounded by a stunning natural landscape, Etalon’s new project of 80 square hectares is currently under construction. The project will offer 1mn sq m of residential space as well as community facilities and commercial opportunities, providing our residents with everything necessary for comfortable living in relatively peaceful surroundings while remaining within easy reach of Moscow life. The project itself is being constructed using a brick/monolith structure, clad with granite tiles. As well as ensuring expediency in production, this method is both ecologically-sound and aesthetically-pleasing. The series of towers will allocate commercial space and facilities in the lower floors, underground and external parking, concierge services and CCTV throughout. All real estate will be available off-plan and offering a range of mortgage opportunities set up through the group’s association with various banks.
2 Bogatirsky prospekt, St. Petersburg, Russia, 197348 +7(812)380-05-25 www.lenspecsmu.ru www.etalongroup.com
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••• UK: COUNTRY OF HONOUR
Olympic legacy in the making LEND Lease and London & Continental Railways (LCR) chose MIPIM to launch a new commercial district in London — The International Quarter, Stratford City. The district will deliver 371,600 sq m of grade-A commercial office space set within a 2.2 ha site. The project includes convenience retail, 350 homes, 1.2 ha of civic and open space, hotels and childcare facilities. Construction is scheduled to begin early in 2013, following the 2012 London Olympic and Paralympic Games.
Sustained effort GOVERNMENTS and international institutions must stop “dithering” and help facilitate a global standard for measuring the sustainability of buildings, delegates heard at the MIPIM conference Common Cause – Common Metrics. The session, chaired by British Property Federation chief executive Liz Peace, heard that initiatives such as the EU’s Energy Performance Certificates have missed opportunities to help the industry create a sustainable built environment. “Industry is crying out for a truly universal, international approach to measuring and assessing sustainable buildings,” Peace said.
Earls Court to be transformed into series of ‘urban villages’ AMBITIOUS plans to redevelop London’s Earls Court exhibition centre as a series of urban villages were unveiled at MIPIM. The project’s partners described a scheme that will transform a key area of West London. Developer Capital & Counties said it intends to demolish the ageing event venue after the 2012 London Olympics, linking it with other local sites and creating 7,500 homes with supporting commercial and community space. A masterplan for the 77-acre (30 ha) site has been prepared by architect Sir Terry Farrell, and went on public display after MIPIM. The culmination of 18 months of consultation with local people, the project aims to rebuild the urban fabric in an area that already has
Capital & Counties’ Earls Court masterplan for West London is the culmination of 18 months of consultation with local people
good public-transport links. The scheme could take several years to complete, and Capital & Counties is understood to be in talks with potential funding part-
ners from Asia to support a project that could cost €4bn-€5bn. In January, Farrell’s work was rewarded with a MIPIM Architectural Review Future Project Award.
Coventry builds on Cannes connection Bishop Gate, Coventry: result of a MIPIM meeting
BPF’s Liz Peace
Global network NAI GLOBAL has formalised its link with property consultant Haywards to provide a UK arm for the giant network of managed commercial real estate. Haywards is now operating as NAI Haywards. Jeff Finn, NAI Global’s president and CEO, said: “Our network is highly respected throughout the world. We were looking for a suitable UK member and think Haywards will be a perfect fit for us.”
A MEETING at MIPIM 2010 has turned into a £50m project for the UK city of Coventry.The city, which has been exhibiting at MIPIM for 17 years, met up with property development firm Barberry Developments in Cannes last year. Following that meeting, Barberry began to explore investment op-
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portunities in the city. When the 18,000 sq m former Royal Mail Sorting Centre in the heart of Coventry came on to the market, the company was keen to secure it and work alongside the council. Barberry is now planning a large and comprehensive retail-led scheme on the site, known as
Bishop Gate. Henry Bellfield, development director of Barberry Developments, said: “We met the Coventry contingent last year at MIPIM and it proved very useful. We were impressed by their approach and enthusiasm, and that meeting was one of the reasons we decided to invest in the city.”
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THE JURY President of the Jury Michael Strong Chairman & CEO – EMEA CB Richard Ellis United Kingdom
Jacques Ferrier Architect & Town Planner Jacques Ferrier Architectures France
Paolo Gencarelli Head of Group Real Estate Unicredit Group Italy
MIPIM Awards continue to grow in scale and prestige AS EVER a glittering and suspense-filled evening, the MIPIM Awards ceremony was the culmination of several months of waiting for the companies participating in the 21st year of the event. The gala evening saw a mix of primarily European and Asian teams carry off the prizes, although there were also entrants from Australia, Turkey, the United Arab Emirates and the US. The MIPIM Awards continue to go from strength to strength, with every year bringing an increased number of entrants and award categories. This year, the panel of seven jurors drew its shortlist from a total of 87 projects submitted from 27 countries. Prior to MIPIM, the jury members were tasked with selecting three nominees in each of six categories: Business Centres, Refurbished Office Buildings, Residential
Developments, Hotels & Tourism Resorts, Green Buildings and, new this year, Futura Projects for developments that are as-yet unbuilt. The job of delegates was to choose the winners by casting their votes during the MIPIM week in the dedicated awards exhibition area. This year, the voting process was improved, with the jury’s original votes for each project also being taken into account alongside delegate votes. As usual, the jury also selected a Special Jury Award winner from among the 18 nominees — and, reflecting the UK’s status as MIPIM 2011’s Country Of Honour, also highlighted a project in the UK. The awards were Immobilien Zeitung.
sponsored
by
MIPIM AWARDS 2011 WINNERS
Ann Heywood
THE UK, COUNTRY OF HONOUR
Principal The College of Estate Management United Kingdom
Frank Khoo Global Head of Asia Axa Real Estate Singapore
Robert Peto President Royal Institution of Chartered Surveyors — RICS United Kingdom
Olivier Piani Chief Executive Officer Allianz Real Estate France
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Special tribute to a UK project As part of the Country Of Honour programme, the jury has also awarded the best project located in the UK to:
W HOTEL London, UK Architect and interior designer: Jestico + Whiles Developer: McAleer + Rushe
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••• AWARDS
BUSINESS CENTRES
FUTURA PROJECTS
GREEN BUILDINGS
SUSTAINABLE URBAN REDEVELOPMENT CHEQUE DEJEUNER HEADQUARTERS AT CARRE 92
Takamatsu, Yamaguchi, Nagahama, Numadu, Ohita (five cities), Japan
Gennevilliers, France Architect: Art & Build Architect Execution architect: Jean-Paul Roze Developer: AG Real Estate
HOTELS & TOURISM RESORTS
3M ITALY HEADQUARTERS - MALASPINA BUSINESS PARK Pioltello, Milan, Italy Investor and user: 3M Italia Architect: Mario Cucinella Architects Developer: Prelios
Planner and architect: Tokyo University Machizukuri Graduate School All projects, planner and architect: Machidukuri Company Sheep Network Takamatsu project developer: Takamatsu Marugamemachi Machidukuri Yamaguchi project developer: Machidukuri Yamaguchi Nagahama project developer: Nagahama Machidukuri Numadu project developer: Life Style Center Numadu Minami Co
REFURBISHED OFFICE BUILDINGS
RESIDENTIAL DEVELOPMENTS
+ SPECIAL JURY AWARD
FIRST TOWER THE PARK HOTEL HYDERABAD Hyderabad, India Architect: Skidmore, Owings & Merrill Developer: Apeejay Surrendra Park Hotels
SAVONNERIE HEYMANS Paris La Defense, France Redeveloper and project manager: Altarea Cogedim Investors: Axa REIM/Beacon Capital Partners
Brussels, Belgium Architect: MDW Architecture Developer: CPAS de Bruxelles
Owner: Beacon Capital Partners Architects: Kohn Pedersen Fox Associates and SRA Architectes
M I P I M R E V I E W M AGA Z I N E 2 0 1 1 /
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••• ASIA
Chongqing makes strong case for potential investors A MAJOR delegation from Chinese city Chongqing was among participants from ten Asian countries to attend MIPIM. Chongqing Municipal Government, exhibiting at MIPIM for the first time, gained further exposure by sponsoring MIPIM’s Asia lunch, a networking opportunity for investors looking at the region and Asian companies looking for foreign participation. Delegates heard that Chongqing is undergoing massive redevelopment which will see the city almost double in size to 547,300 ha by 2020. “We are the biggest city on the western side of China and so we hope to meet potential business partners in MIPIM,” said Xu Qianli, director general of the Chongqing Urban Construction Comprehensive Development Management Office, and a speaker at the conference China: Reward Versus Risk. This was one of three sessions on
Chongqing sent a large delegation of top-ranking officials
the region, staged as part of Asia Day, always the first day of MIPIM. Zou Xiaoping, chairman of the China Council for the Promotion of International Trade, Chongqing
Chongqing’s Zou Xiaoping speaking at MIPIM’s annual Asian Lunch
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Sub-Council (CCPIT), speaking the Asian Lunch said: “Chongqing is demonstrably an area for new development in China.” “Foreign friends” should not worry
if they have missed the opportunity to develop in Pudong and other growth areas, because, said Zou, there are still major opportunities to be had in Chongqing.
Chongqing’s Xu Qianli: “We hope to meet potential business partners”
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••• ASIA
Capitalising on Japan’s ‘hidden treasures’ FOREIGN investors are being encouraged to look at projects in Japan’s smaller cities — as was demonstrated by the presence in Cannes of architect Mariko Saigo and her sustainable urban redevelopment team from Tokyo University’s Machizukuri Graduate School, who were exhibiting their ‘smart shrink’ projects in Japan’s second-tier cities. The team, which won the Futura Projects category of this year’s MIPIM Awards with its sustainable urban redevelopment model, already has ‘compact city’ projects, under way in Takamatsu. These are designed to revitalise previously decaying urban cores and have the backing of the Japanese government.
Strong MIPIM turnout reflects Asia’s international ambitions TEN TERRITORIES, including Japan, South Korea, Vietnam, Singapore and China, were among this year’s strong turnout from Asia, reflecting the region’s desire to encourage international investors to become involved in their development markets. MIPIM’s Asia-themed activities kicked off with a breakfast seminar that included a live video link with Japan and contributions from Jesper Koll, chief economist of JP Morgan Chase Japan. Moderated by Leonard Meyer zu Brickwedde, president and CEO of Kenzo Capital Corporation, the event was sponsored by Japan’s Sustainable Urban Redevelopment Team.
Japan breakfast: Kenzo Capital Corporation's Leonard Meyer zu Brickwedde was moderator
The annual Asian Lunch, meanwhile, acted as a focused networking opportunity for all those with an interest in Asian property. This year’s
event, held at the Majestic Beach restaurant, was sponsored by firsttime MIPIM exhibitor Chongqing Municipal Government.
Korean pensions consider alternatives
Mariko Saigo: Exhibiting ‘smart shrink’ projects
“If we do it right, there is a chance for private investors to benefit too,” said Saigo’s colleague and fellow architect Hisaya Sugiyama. “It’s a different model. We look for the hidden treasures of the city, and get the maximum out of them.”
THROUGHOUT Asia, institutional investors are increasing allocations to alternative investment classes — and Korea’s fund managers are following suit, according to the Real Estate Corea (REC) section of the European Union Chamber of Commerce in Korea (EUCCK). With corporate pensions being deregulated in Korea, the country’s
Smart Shrink: Looking for hidden treasures
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pension funds are aggressively seeking opportunities in overseas real-estate investment to help provide higher returns and more diversified holdings. EUCCK was at MIPIM, where it promoted REC’s conferences. REC successfully staged a conference in Seoul last November — Korean Institutional Investors Exploring
Overseas Real Estate — to examine investors’ intentions. The next edition of REC Institutional Investments 2011 will take place on November 29 in Seoul and will examine the process of deploying capital outside of Asia, as well as investment strategies and best practices in managing institutional money.
KEY INSTITUTIONAL investors from Korea network at MIPIM: Jun-Ho Lee (left) of European Union Chamber of Commerce in Korea; Jongpil Park of Samsung Life Insurance; Chun Keunkoo and Seo Jin of Samsung Fire & Marine Insurance; Reed MIDEM’s Christine Lam; and Shin Young of Samsung Life Insurance. The Korean delegation also included the Korean Investment Corporation.
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••• ASIA
MIPIM Asia feedback confirms the region’s vibrant outlook RAPID post-crisis recovery in Asia was reflected by the region’s strong representation at MIPIM. Its buoyancy was also borne out by a survey undertaken at MIPIM’s sister show, MIPIM Asia, which is staged in Hong Kong during November. The survey, conducted by academic staff and students from Wisconsin School of Business, found that two thirds of MIPIM Asia delegates thought business was better than in the corresponding quarter of the previous year. Less than 10% said it was worse. Certainly MIPIM Asia’s exhibitors and delegates were gearing up for growth. Among the 1,720 delegates at the Hong Kong show, representing 800 companies and 40 countries, were 400 international investors. There was also a significant contingent of cities and regions with stands. These included Hong Kong itself, Taipei,
Yujiapu Financial District in Tianjin, China
Justin Chiu (right) with Reed MIDEM’s Christophe Chupot
Shanghai, Perth in Western Australia and even Paris, all with large projects to promote to regional and global investors and developers at MIPIM Asia. Speaking during a MIPIM Asia conference session, Hong Kongbased Cheung Kong Holdings’ executive director Justin Chiu, who also attended MIPIM, predicted
that the China region will lead the world into the future and said that Hong Kong rents are already past their pre-crisis peak having increased 30 to 40% since the SARS outbreak. “I take pride in the fact that we have the most expensive offices in the world, it’s why I am a developer,” Chiu said.
Asian investors looking overseas ASIA’s investors are increasingly looking outside their own markets for new opportunities in real estate, delegates heard at MIPIM’s Asia Day conference, Asian Capital: Regional Plans, Global Ambitions. Francois Trausch, CEO, Asia Pacific, of GE Capital Real Estate, described the falls seen in capital flows over recent years as investors retreated to their home markets. However, following predictions made in 2010, these are slowly starting to pick up. “We are seeing recovery in both national and inter-regional capital flows,” he said. All the speakers agreed that the main driver for Asian investors
Tianjin’s green finance area
Mitsui Fudosan Investment Advisors’ Satoru Yamashita
GE Capital Real Estate’s Francois Trausch
was the desire for diversification outside of their domestic markets to mitigate risk and secure higher returns. However, Satoru Yamashita, vice-president of Mitsui Fudosan Investment Advisors,
said that Japanese pension plans have not yet returned to their previous levels of investment in real estate and that government pension plans particularly need to return to the field.
ONE OF China’s largest proposed commercial projects — the 9.5 million sq m Yujiapu Financial District in Tianjin — was unveiled to prospective investors at MIPIM. The district, which is less than an hour away from Beijing, lies at the heart of the Tianjin Binhai New Area, north China’s fastest growing economic zone. Tianjin Innovative Finance Investment Co, the agency that presented the plans, also aims to make Yujiapu the world’s most eco-friendly financial district. Architecture firm SOM designed the project’s masterplan, which includes offices, hotels, a convention centre, and retail, leisure and educational facilities. Phase one will finish this year but, overall, the project will take a decade to complete.
Jurong debut SINGAPORE’s long-term expansion plans involve the creation of a new district, Jurong Gateway, which brings together private partners with the country’s Urban Redevelopment Authority. Jurong, which will be developed to a masterplan over the next 15 years, will provide commercial and residential capacity to help Singapore towards its long-term goal of growing its population from its current level of five million to 6.5 million. Lend Lease won the tender for the first commercial site to be released, paying S$750m for a package earmarked for a mixed office and commercial scheme. Work has started and will be complete in 2013.
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••• ASIA
At the session China - Reward Versus Risk: Bromme Cole, Hampton Hoerter; Xu Qianli, Chongqing City Construction Comprehensive Development Management Office; Yip Kin-Shing, DTZ China; Richard David, Treasury China Trust; and David Watt, DTZ Hong Kong
Asia Day boosts East-West networking MIPIM’S ASIA LUNCH AND A SERIES OF ASIA-RELATED CONFERENCE SESSIONS EMPHASISED THE CONNECTIONS WITH THE ASIA PACIFIC REGION TO WHICH MIPIM AND SISTER SHOW MIPIM ASIA CONTINUE TO LEND STRENGTH
At MIPIM’s Asia Lunch: Thomas Zacharias (left) of WP Carey with Hong Yew Leong of JTC Corporation
Min Hau Soon (left) and Marc Boey of Singapore’s Urban Redevelopment Authority with Swee Yiow Tan of Keppel Land
Young Jong Song (left) of South Korea’s Jeollanam-do Provincial Government is greeted by Reed MIDEM’s Paul Zilk
Shuva Mandal (left) from FoxMandal Little meets Craig Turnbull of Agincourt Capital at MIPIM's Asia Lunch
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We would like to thank our supporters:
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Looking ahead.
German Germanyy Country Country of of Honour 2012
In collabor collaboration ation with:
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••• CITIES AND MAYORS
Olympic hosts’ winning ways DELEGATIONS from Barcelona and London’s Newham used MIPIM to share tips on furthering their economic agendas — from one Olympics host city to the other. The two parties, which signed an accord at last year’s MIPIM, have been sharing knowledge and expertise during a number of visits to each other’s turf on issues such as high-speed rail, “meanwhile” uses for developable buildings and creative-industry quarters.
Kigali woos investors FIDELE Ndayisaba, newly elected mayor of Rwanda’s capital, Kigali, explained plans for a new $9bn central business district in Kigali City. It is part of an ambitious masterplan to regenerate Kigali and Ndayisaba told MIPIM News that the long-term aim is to turn the capital into a financial services and ICT hub for the region. He said: “The environment we have is investorfriendly. The high level of security and the stability we have in political matters should benefit worldwide investors.”
Fidele Ndayisaba, mayor of Kigali
Toulouse plans PIERRE Cohen, the newly elected deputy mayor of Toulouse, presented strategic projects in urban planning, housing, transport, training and economic activity to be realised in the Toulouse Metropolis through to 2020. The metropolis is already France’s fourth city, with a population of 1.2 million that is growing at a rate of 20,000 a year, so city authorities have made land available and created new real estate opportunities, Cohen said.
Cities are the future, says London mayor THE FUTURE of the world lies in cities, London mayor Boris Johnson told MIPIM participants in his keynote address. Speaking to a packed auditorium, he adapted the famous proclamation by Ghandi that the future of India lay in its 70,000 villages. “We have to keep putting the village back into the city,” he said, “because that is fundamentally what human beings want and aspire to.” Cities are where people live longer, have better education outcomes, are more productive and have “significantly greater opportunities for reproduction than those in the country”. Cities are also where people emit much less CO2 per capita.
London mayor Boris Johnson
Johnson said a recent CitiGroup study of world cities concluded that London was at the top in terms of GDP growth potential up
to 2025. “I looked at that study with the jaundiced eye of a former journalist and thought, fair dinkum,” Johnson said.
Mayors deliver message of hope and solidarity THE MOOD at this year’s MIPIM Mayors’ Think Tank was one of optimism and strategic clarity. “This was the most successful event held so far, with an amazingly powerful group of individuals showing a great spirit of solidarity and vision,” said guest moderator Greg Clark, chairman of the OECD LEED Forum of Development Agencies and Investment Strategies. Close to 100 city leaders from all over the world took part in the think tank, the theme of which was Building The City Together: Urban Strategies And Integrated Solutions’ Implementation. “This is a group of leaders who are
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clear about what they need to do, the only question remaining being how they will achieve these goals,” said Clark, adding that those par-
ticipating in the think tank were keen to “roll up their sleeves and get on with the job of shaping the new cycle as it is now emerging”.
The MIPIM Mayors’ Think Tank: debating visions and strategies to deal with new economic cycles, climate change and population shift
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••• NEWS
MIPIM’s opening night party gets underway
Informing decisions FROM THE OPENING NIGHT PARTY TO THE CONFERENCES, FORMAL NETWORKING EVENTS AND INFORMAL MEETINGS ON STANDS, MIPIM PROVIDED A WIDE RANGE OF OPPORTUNITIES FOR SHARING INFORMATION
Heads down: The Hotel Tourism And Leisure Power Meeting
Manchester’s stand draws a crowd
Talking business on the Frankfurt RheinMain stand
Speaking at the session France — An Attractive Target For Real Estate: Xavier Mouette (left), Allianz Real Estate, France; Nicolas Verdillon, CB Richard Ellis, France; Dominique Dudan, Union Real Estate, France; Philippe Couturier, Constructa, France; and moderator Catherine Sabbah, journalist, Les Echos
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••• FRANCE
Part-Dieu now number two LYON Part-Dieu is in the throes of a major urban transformation. With 900,000 sq m of office space, it is now France’s second most important business district after La Defense in Paris. The project, showcased on the Lyon metropolis stand, will see two major office schemes delivered in 2012, providing an additional 34,000 sq m of space. An additional 11,000 sq m of office space will be delivered in 2013, with 73,000 sq m available in 2014.
Dynamic new urban image for ‘future-oriented’ Calais
Natacha Bouchart, mayor of Calais and president of Calais Promotion with Reed MIDEM’s Peter Rhodes Lyon Part-Dieu business district
New hub for Paris THE 300 ha Les Ardoines project, located in the south-east of Paris, was launched at MIPIM. The scheme’s promoters — EPA Orly Rungis-Seine Amont development agency and the Vitry-sur-Seine local authority — unveiled the mixed-use scheme, 12 minutes from Paris centre. The heavily industrial area will transform into a new zone, served by a newly constructed transport hub, including 13,000 housing units, amenities, public space and retail.
Ile de Nantes NANTES is developing more than 1 million sq m a short distance from its historic centre, on the Ile de Nantes, including 300,000 sq m earmarked for economic activity. “It’s one of Europe’s largest regeneration projects,” said Richard Hamon, head of marketing and communications at Nantes Metropole Developpement. The projects are concentrated on the south-east side of the island. The proposals include office and retail schemes.
CALAIS’ new urban dynamism was given concrete form when Natacha Bouchart, mayor of Calais and president of Calais Promotion, unveiled a model of the Calais area. “The model demonstrates the ambition that has driven the city’s authorities over the last three years to transform the Calais territory into a future-oriented,
high-potential, sought-after destination,” Bouchart said. New urban projects include Port 2015 — the seawards extension of the port facilities — a convention centre, the Descartes-Bleriot and Coubertin eco-districts and the renovation of the public areas in Calais Nord. Many of the projects are to be completed by 2015.
Bouchart stressed the close economic links between Calais and the UK, and welcomed the impact on her region of the 2012 Olympic Games in London. “We can be in a win-win situation if we look at projects together,” she said. “It is important that we convey to British and international investors the new dynamic image of Calais.”
A trip down Normandy Avenue URBAN renewal, new districts, major projects, and large-scale economic and urban growth in Caen, Rouen and Le Havre were highlighted at this year’s Normandy Avenue stand. At a time when competition between regional authorities for investment projects and corporate relocation has never been tougher, the three cities wanted to draw attention to the fact that, together, they form a powerful hub of technical knowledge. To illustrate this, they showcased their future-proof technology and creativity on the Normandy Avenue
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stand. Examples included engineer and artist Milene Guermont, Orange Labs and 2Darts, a Rouen start-up that has produced an augmented-
reality technique that allows developers, real-estate professionals and policy-makers to bring their architectural projects virtually to life.
Normandy Avenue stand: Future-proof technology and creativity showcased
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••• GERMANY
Berlin sets new standards for a greener life-work balance
All in the mix for Stuttgart STUTTGART’s Mailander Platz will provide a quarter with a unique mix, according to the city’s mayor Dr Wolfgang Schuster. Inspecting the developer’s model on ECE Projektmanagement’s MIPIM stand, Shuster said: “The mixture of living, shopping, gastronomy and hotel business combined with high ecological standards has not yet been realised in Germany.” Mailander Platz comprises 400 flats, a 160room hotel and around 43,000 sq m of retail and restaurant facilities, all on three levels. Offices and underground parking will also be constructed. ECE partners with STRABAG and BHGKG in the project.
ZIA’s Dr Andreas Mattner and mayor of Berlin Ingeborg Junge-Reyer at the Berlin Brunch
BERLIN was once again at MIPIM to promote itself as a prime location for sustainable development and growth, a theme drawn upon during the Berlin Brunch — Berlin And The European Metropolises: Urban Development And Sustainability — which the city hosted in conjunction with the German Property Federation (ZIA). According to Ingeborg JungeReyer, mayor of Berlin and senator for urban development, the German capital offers attractive
choices to organisations seeking locations in the city centre or the surrounding countryside, particularly those working in the ‘green’ sector or that are involved in urban technologies. “Compared to other European cities, Berlin has a great deal of available open space,” she said. “And the opportunity to combine this open space with the science and technology sector to develop new real-estate locations is special to Berlin.”
As examples, she pointed to the two former airport sites at Tempelof and Tegel, which are now being developed to provide modern business, research and industry parks. Berlin is also an attractive place to live and work in a more sustainable manner. “You do not need a car if you live in central Berlin,” Junge-Reyer said. “In fact, research shows that 14% of all journeys in the city are currently made by bicycle.”
HafenCity built on eco-foundations HAMBURG’s HafenCity project owes part of its success to a strategy of sustainable development. A study by market researchers and consultants BulwienGesa now ranks HafenCity in the top 10 for strategic office investments in Germany’s inner-city sub-markets. Strong demand for property
in HafenCity reflects its mixeduse concept, public transport connections and promotion of sustainable construction, the report said. “The key attraction of this location is that it is not purely commercial or industrial, but is an area made up of a variety of uses — housing,
workplaces, leisure facilities and culture,” said Jurgen BrunsBerentelg, CEO of HafenCity Hamburg. “This lively mix, combined with a central location and the process-oriented management of competition, is the recipe for HafenCity’s continuing success.”
Stuttgart’s mayor Wolfgang Schuster (right) with ECE’s project director Jens Japel
Energy drive HARRY Voigtsberger, state minister of economic affairs, energy, building housing and transport, was in Cannes to promote the German state of North Rhine-Westphalia (NRW) to the investment community. A highlight at MIPIM was its commitment to sustainableenergy production. Here, Voigtsberger is pictured with the Mitsubishi iMiev electricpowered vehicle. Also on display were the electric Tesla Roadster and the RWE Effizienz charging station.
Minister Harry Voigtsberger tops up the Mitsubishi iMiev
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••• ITALY
Italy to put rail land into use FS Sistemi Urbani, the real estate arm of the Italian state railway company Gruppo Ferrovie dello Stato, is leading a massive urban regeneration programme across Italy's major cities. The company was set up to exploit the railway's substantial landholdings. “Many areas of our estate are old and in need of regeneration,” explained CEO Carlo De Vito, “and we also have a remit to provide an economic return to the railway company.” In Milan alone, FS Sistemi Urbani owns sites with consent for 783,000 sq m of development. The biggest is the Farini site with a gross floor area of 475,000 sq m. “We don't intend to develop ourselves, but we will sell sites on to private developers, said De Vito.
Roman rarity ITALIAN developer Parsitalia was at MIPIM to raise interest in its mixed-use Europarco project. “In Rome, it’s unusual to work on major projects. Most developments are single buildings,” said Simone Contasta, who is responsible for commercial planning at Parsitalia. Europarco contains 250,000 sq m of space, providing a new office location, shopping centre and residential blocks. Several of the project’s office blocks are already complete. “We are looking for investors for the next components,” Contasta said.
Milan seeks partners to share in post-industrial renaissance MILAN’s OMSI-Borsa Immobiliare, the agency of the Italian city's chamber of commerce that provides services for the real-estate market, headed a combined presence at MIPIM this year. The delegation’s mission was to promote the opportunities generated by the city's post-industrial transformation, said OMSI president Antonio Pastore. “Our challenge is to help the market by changing the stock of buildings coming to the market,” he added. The team's arrival in Cannes followed a strategic decision to grow Milan and its population by the year 2030, while restricting addi-
tional land use and breathing new life into the city’s run-down areas. “In the last 10 years, Milan has lost 300,000 inhabitants,” Pastore said. “It wants to bring them back.” At MIPIM, the Milan stand was showcasing two specific projects designed to help transform the city: City Life and Porta Nuova. City Life resulted from the relocation of the Fiera Milano exhibition complex from its city-centre location to a new site on the edge of the city. Leading architects, including Zaha Hadid and Daniel Liebeskind, have contributed to the design of the vehicle-free city district, which is served by a new underground line.
Antonio Pastore, OMSI: Changing stock
Porta Nuova, located to the north east of the city, is one of Europe's largest regeneration schemes. Work started on the project, which includes cultural, residential and business areas, in 2005.
San Vito offers sun, sand and snow
Turin transforms A COMBINED public-private team from Turin attended MIPIM to promote the city’s renovation programme, which will include a new metro line and regeneration of the north-eastern quarter. “The city is absolutely focused in this area,” said Invest In Torino’s Francesco Fossati. He added that construction of the new metro will start two years from now, which will boost the value of surrounding sites. The projects, which will be open to both domestic and international investors, are part of a wider city-led initiative to transform Turin for the future.
Pagliaroli’s Gianni Pagliaroli (left): San Vito is billed as a 21st century active-holiday resort
DEVELOPER Pagliaroli was at MIPIM to seek investors for a seaside scheme on the Abruzzo coast of the Adriatic Sea. President and chief executive Gianni Pagliaroli said: “We are now negotiating with an international hotel
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operator to manage the resort.” Located on the Adriatic but within easy reach of the Gran Sasso ski resorts in the Apennine mountains, the San Vito development is billed as a 21st century active-holiday resort. It consists of three low-rise hotels totalling 440 rooms, swimming pool, spa, restaurant, sports
centre, meeting/conference hall and art/exhibition gallery. The town of Pescara is 45 km to the north and there is international airport within a 25-minute drive. The aim is to create an upmarket organic holiday destination that is “at ease with its environment”, Pagliarioli said.
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••• CENTRAL AND EASTERN EUROPE
All roads lead to Romania? WORK is under way on a mixed-use World Trade Center in Constanta, Romania, which includes retail, hotel and office space, according to Bucharestbased developer Red Management Capital. Radisson and Carrefour have already committed to take space. “Occupiers want to be in this area of Europe,” said Red’s Andrew Stear. “There is currently only one sixth of the retail space per capita compared with the European average.”
Be ‘country-specific’ in Central Europe, panel urges investors
Local heroes POLAND is maturing rapidly, with growth potential in all sectors of the market, according to Rafal Szczepanski, vicepresident of Warsaw-based BBI Development. Szczepanski is a strong supporter of MIPIM when it comes to promoting Poland to the real-estate world. “We are looking for international partners and investors willing to expand into Poland and who can benefit from our local expertise and knowledge,” he said.
Dynamic Kiev SK DEVELOPMENTS, based in Kiev, was at MIPIM to talk to investors and potential partners about a range of retail, mixeduse, commercial and leisure developments in the Ukrainian capital. Olexsandr Kostyuk, general director of SK Developments, said he was pleasantly surprised by this year’s event. ”We have been coming to MIPIM for seven years and we have never had a busier day than we had on the Tuesday,” he added. “And all those enquiries were serious.”
Olexsandr Kostyuk, SK Developments
Helaba Landesbank Hessen-Thuringen’s Michael Kroger: “Central Europe is not a homogenous market — you have to weigh comparative advantages”
WITH so many investors burning their fingers during the recent downturn, ultra-safe investments are now in demand. Panelists of the conference Central Europe: Not Too Hot, Not Too Cold — Advantage Or Handicap?, co-organised by the Warsaw Business Journal, agreed that, while Poland is not the only opportunity in the region, it is highly attractive
Panattoni Europe’s Robert Dobrzycki: “The CEE region is core for many real-estate players, but we have to be country-specific”
at the moment. “Central Europe is not a homogenous market. You have to weigh comparative advantages,” said Michael Kroger, head of international real-estate finance at Helaba Landesbank Hessen-Thuringen, the German bank that entered the Central European market in 2005-2006. Next in line come the Czech Republic and Slovakia. IMF requirements
mean that, for the moment, Romania is not the hot place it used to be three or four years ago. However, the panel agreed it is still worth looking at. “The CEE region is core for many real-estate players, but we have to be country-specific. We need opportunity, stability and volume,” said Robert Dobrzycki, Polish-based managing partner for Central Europe at Panattoni Europe.
Czech cities and regions set out stall FOLLOWING their successful attendance at MIPIM 2010, the three largest Czech cities — Prague, Brno and Ostrava — were in Cannes to present themselves as attractive investment destinations. In addition, the Central Bohemian and South Moravian regions returned to MIPIM with their own stands. The City of Prague Development
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Authority’s experts presented the Czech capital’s proposed development plan, which encompasses urban, recreational and landscape areas, including brownfield sites. Brno, which exhibited in collaboration with several partners, promoted itself as a centre of science and research, highlighting schemes such as the International Clinical Research Centre (FNUSA-
ICRC) and the Central European Institute of Technology (CEITEC). Among the projects presented by Ostrava, at MIPIM for the 14th consecutive year, were the 10 ha Science and Technology Park Ostrava, where a further 20 ha of development land is being prepared with the aim of creating 10,000-15,000 jobs in the next 10to-15 years.
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••• TURKEY
Investment Laboratory dissects Turkey’s ‘fantastic’ prospects
Celen Corporate Property Valuation and Counseling’s Guniz Celen: “Fantastic opportunities right now”
THE KEY to understanding Turkey is that it is in the middle of everything, according to Guniz Celen, chair of consultant Celen Corporate Property Valuation and Counseling, who was speaking at MIPIM’s Turkey Investment Laboratory conference session. “Turkey’s geography alone makes it an inevitable trade hub and conduit,” Celen said. “It has the 17th largest population in the world, with the 15th largest economy. Eight per cent of the world’s oil is
PwC Turkey’s Ersun Bayraktoroglu: The tax environment in Turkey is familiar, “corporation tax is 20%”
piped through Turkey, its population has a median age of 30 and it is forecast to have the third largest economic growth rate in the world over the next 10 years.”She added: “Investors take note. There are fantastic opportunities right now.” Other speakers included moderator REIDIN’s Mete Varas, PwC Turkey’s Ersun Bayraktoroglu and Zorlu Property’s Emre Zorlu. Bayraktoroglu said that the tax environment in Turkey is familiar for
European and US investors. “Corporation tax is 20% and individuals can own outright property of up to 25,000 sq m in size. However, corporations must own real estate via a Turkish company,” he said. Zorlu pointed out the advantages of developing mixed-use projects in Turkey, observing that they link residential and office areas while providing amenities that might otherwise be lacking in fast-growing neighbourhoods.
Zorlu issues invitation to Istanbul TURKISH developer Zorlu Property — sponsor of MIPIM’s Opening Night Party — promoted two major projects at MIPIM: the mixed-use Zorlu Centre and the Zorlu Levent office project, both located in Turkey’s largest city, Istanbul. The Zorlu Centre project, designed by the joint venture of Emre Arolat Architects and Tabanlıoglu Architects, combines retail, residential, hotel, offices and a 3,000-seat performing-arts centre. Zorlu board member Emre Zorlu said its philosophy is to create “distinctive and unique projects that add value to the whole city of Istanbul”. Zorlu Levent, situated in Istanbul’s
business district, will “satisfy the need for quality offices in Istan-
bul and add further value to the Levent district”, Zorlu added.
Investor comes first for IMS INVESTOR satisfaction is the primary goal of Istanbul-based IMS Project Management, one of the leading providers of project management services in Turkey. According to company president Serdar Gucar, IMS strives to “assure the goals of investors by accomplishing projects on time, within budget and to the expected quality”. To date, IMS has provided its expertise on a range of commercial, retail, business-centre, residential, tourism/leisure and industrial construction projects in Turkey, Russia, Macedonia, Kazakhstan, Romania and Dubai.
Mall on target THE €220m mixed-use Mall of Istanbul scheme — a finalist in the Future Projects category of the MIPIM Awards — is one of the biggest mixed-use developments currently on stream in Turkey. The project is being planned and developed by Turkish developer, investor and REIT Torunlar. The Mall of Istanbul will have a total built area of 538,885 sq m and a gross lettable area of 139,500 sq m. There will be 300 shop units, 86,000 sq m of residential space providing 657 homes and 25,000 sq m of offices. The development will also include a 300-bed four- or five-star hotel and a 37,500 sq m entertainment and catering area, which will include a multipurpose auditorium, a cinema, a snow park, restaurants and cafes. The project, which will cost $310m, is valued at $637m.
Underway: Mall of Istanbul Zorlu Centre will combine retail, residential, hotel, offices and performing arts
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••• RUSSIA
EU standards heighten appeal of Caucasus mountain resorts NORTHERN Caucasus Resorts Company (NCRC), the Russian state enterprise implementing a $15bn development of five mountain resorts in the Caucasus mountains, announced at MIPIM that it would become the first organisation in Russia to require EU standards in tenders for construction projects. The announcement is part of a raft of measures, including tax incentives and state guarantees, designed to attract international investment to the projects. Akhmed Bilalov, NCRC chairman and vice-president of the Russian Olympic Committee, said: “EU construction standards will mean more competitive bidding for contracts, better value for money for
investors, and help open up the Caucasus to foreign companies. We want to create one of the world’s top mountain tourism destinations and, to do this, we need to work with the best companies in the world.” NCRC presented plans for the five mountain resorts, which are strongly supported by the Russian government on account of the Caucasus’ largely untapped potential for tourism. With the planned investment, tourist numbers are expected to hit 10 million by 2020, up from the current level of one million. Visitors are primarily from Russia and the Commonwealth of Independent States (CIS), as well as Turkey, Iran, the Middle East and Eastern Europe.
NCRC’s Alexey Nevskiy presented opportunities in the region
Ivanovo builds on tourist potential ABOUT one million tourists from home and abroad spend their vacation in Russia’s Ivanovo region each year — and the numbers are increasing all the time. The regional government of Ivanovo, located about 280 km north of Moscow in Russia’s ‘Golden Ring’, was at MIPIM to
promote opportunities for investors. Prominent among these was the city of Plyos on the Volga river, where tourist infrastructure is now being developed. Plyos has retained its historic fabric but is also building modern ski trails, an international hotel, a yacht club, a golf club and a hippodrome.
Rodniki Industrial Park: The largest turnkey production area in the Ivanovo region
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Ivanovo region is also seeing the rapid improvement of its industrial facilities, with more than 1,230 ha of land available for development. The area benefits from having an established industrial infrastructure, plentiful energy supply, reliable communications, and inexpensive land and buildings. There is also a plentiful supply of skilled labour. The largest turnkey production area in the Ivanovo region is Rodniki Industrial Park, where there is 190,000 sq m of industrial space available and 320 ha of prime industrial development land. “The Ivanovo region is characterised by a well-developed logistics system, including highway interchanges, railway junctions and water transportation routes along the Volga river,” a spokesman said.
DON-STROY Invest was at MIPIM to promote its “unconventional” high-end residential projects in Moscow.The Russian company’s general director Alena Deryabina (pictured) said that since 1994 it has been the leader in high-rise construction, working in partnership with one of Russia’s largest banks — VTB Bank JSC. Don-Stroy has completed more than 30 assets with a total area of more than 2.7 million sq m.
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••• RUSSIA
Krasnodar focus on sports and resorts KRASNODAR was back at MIPIM with more than 1,500 commercial real-estate investment projects, including hotel and resort developments, business centres and infrastructure schemes, all located in cities along the Black Sea coast and surrounding areas. The Russian region will host the Winter Olympics in 2014, the Football World Cup in 2018 and recently agreed to hold the first series of Russian Formula One races in Sochi from 20142020. Among the opportunities being promoted at MIPIM was the Vysoky Bereg holiday and recreation area in Anapa, a famous Russian family-holiday resort on the Black Sea coast. An area of 80 ha will be developed to provide hotels, restaurants, bars and cafes, along with health, spa and entertainment facilities to accommodate more than 16,000 people. The total cost of the project is estimated at €600m.
Renova round-table highlights ‘enhanced’ Russian prospects
Deputy prime minister Alexander Zhukov: “We are ready to co-operate with international companies” Renova Stroy held a special MIPIM round-table event at Cannes city hall
RUSSIA is modernising and diversifying in a bid to attract more investors. This was the message from the deputy prime minister of the Russian Federation, Alexander Zhukov, at a special MIPIM roundtable event organised by Renova Stroy at Cannes city hall. Zhukov, who is also president of the Russian Olympic Committee, told a packed seminar that he was delighted that all of the big cities in Russia were well represented at MIPIM, showcasing innovative in-
vestment projects that reflect “a real enhancement of the Russian economy”. The Russian economy grew by 4% during 2010 and is set to rise further, he said. Zhukov added: “We are ready to co-operate with international companies. I’d like to invite all potential investors to a dialogue and to optimise the investment climate.” Meanwhile, Renova Stroy is working on the integrated urban development of Akademichesky in
Ekaterinburg in southern Russia. “It is probably the largest development going on anywhere in Europe,” said Denis Borisenko, the company’s director of strategy and project development. “It’s basically a new district of the city. When the project is completed in 2026, we will have created 9 million sq m of residential units and 4 million sq m of commercial and office space on a built-up area of 1,300 ha, for a population of 325,000 people.”
SEZ and expo centre for Sverdlovsk
Krasnodar showcased the venues for the 2014 Sochi Winter Olympics at MIPIM
Another key project is the Atlant sports complex in the holiday resort of Gelendzhik. The scheme comprises a hotel, sports facilities, an entertainment centre, swimming pool, indoor skating, a 4,500-seat stadium, outdoor playgrounds and tennis courts. The total cost of the project is €58m.
RUSSIA’s Sverdlovsk region was at MIPIM to present two key projects: the Titanium Valley special economic zone (SEZ) and Ekaterinburg’s new international exhibition centre. Titanium Valley, located at the town of Verkhnyaya Salda, is the first industrial SEZ in the UralsSiberia region. The benefits on offer will include lower taxes on profit and property, as well as customs-zone advantages and administrative support for obtaining permits and approvals. Twenty-five companies have already confirmed interest in locating to the Titanium Valley SEZ.
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Meanwhile, construction of the exhibition centre Ekaterinburg Expo commenced last September close to Koltsovo International Airport and the first 94,000 sq m phase is
on course for completion in July 2011. The exhibition centre, which was initiated by the Sverdlovsk government, will have a total floor area of 200,000 sq m.
Ekaterinburg Expo, where construction started in September 2010
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••• SOUTH-WEST ASIA
New city centre for Baku will be biggest scheme in the Caucasus BAKU White City, which made its MIPIM debut this year, envisages the development of an entire new centre for Baku, the capital of Azerbaijan. The development will cover an area of 221 ha — bigger than Monaco — and will be the largest development in the Caucasus. It also includes the largest shopping and entertainment centre in the region, Baku City Mall, which will be linked to a new open mall by means of a footbridge. New hotels, a major shopping centre, office buildings, a concert complex and a pavilion of contemporary art will also be provided. At MIPIM, Baku White City’s senior co-ordinator, Yelena Chernova, said: “The project offers investors a wide range of residential and commercial buildings. Investors will be able to select suitable units for investment and construction, from small villas to large-scale urban projects.” Baku White City will also provide 39 ha of open space, in addition to
Baku White City envisages an entire new centre for Baku
20,000 residential and commercial units, 40,000 parking spaces and employment for 48,000 residents. A new subway station will serve the area, along with a new tramline and a sea taxi. The project will extend the city’s existing boulevard
by 1.3 km, making it the longest boulevard in the world. Initiated following a decree by the Azerbaijan Republic’s president Ilham Aliyev, Baku White City began as a plan to expand the city centre and extend Baku Boulevard to
the east. It has now grown into a major international urban-planning project. Engineering consultancy Atkins, Foster + Partners and US-based F+A Architects are working alongside local experts.
‘New’ Georgia sets cap at investors VERA Kobalia, Georgia’s minister of economy and sustainable development, stressed the attractions and advantages of the ‘new’ Georgia for outside investors. Speaking on the Tbilisi stand at MIPIM, she said: “We decided to eliminate all barriers to trade and investment in the country. It is now possible for a foreign investor to gain the necessary permits and paperwork in a single day. What is especially attractive to investors in Georgia are our low taxes, the absence of corruption, reduced
bureaucracy, the 100% literacy level in our country and our favourable investment climate.” Kobalia said that the Georgian government had targeted real estate as a key economic priority for investment and growth. “We are supporting this with the necessary infrastructure, appropriate legislation, tax incentives and privatisation programmes,” she added. According to the minister, the Georgia’s “stature and attraction” is now being recognised internationally. “We are ranked 12th [out
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of 183 nations] by the World Bank’s 2011 Ease Of Doing Business Report, and seventh on the list for ease of dealing with construction and development permits. There has never been a better time to invest in Georgia.” While in Cannes, Georgia’s Ministry of Economy and Sustainable Development also launched the new Anaklia-Zugdidi Free Tourism Zone. The government is aiming to initiate hotels and leisure developments on the country’s Black Sea coast.
Vera Kobalia, Georgia’s minister of economy and sustainable development: “There has never been a better time to invest in Georgia”
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••• MIDDLE EAST - NORTH AFRICA
Bahrain Bay surges on BAHRAIN Bay, the $2.5bn landmark waterfront project located off the north shore of Bahrain’s capital Manama, has achieved several development milestones this year. The mixed-use project began in 2006 and is anchored by Bahrain’s only Four Seasons Hotel, CapitaLand’s Raffles City Bahrain and Arcapita Bank’s new headquarters. The project’s most recent milestones include the first completion — Arcapita’s new HQ — and phase one of the site-wide infrastructure.
Cairo targets world’s investors with mixed-use mega-projects CONSTRUCTION will begin this year on the Zaha Hadid-designed Stone Park residential compound in New Cairo City, Rooya Group executive president and CEO Hisham Shoukri announced at MIPIM. “Stone Towers consists of 18 office towers on the ring road in New Cairo City,” Shoukri said. These provide 450,000 sq m of offices, a
500-room five-star hotel and 20,000 sq m of retail, and are targeted at international investors. Meanwhile, Al Futtaim Group Real Estate’s vast Cairo Festival City project is on course for its completion target in 2014, according to Ahmad Touni, director of All Futtaim’s residential and commercial division. Spanning 300 ha, Cairo Festival
City is a mixed-use urban community located 15 minutes from Cairo International Airport. Situated at the gateway to New Cairo City, Cairo Festival City consists of a major indoor/outdoor retail and entertainment resort combined with luxury residential communities, prime office spaces, international hotels, schools and an automotive park.
Egypt dismantles barriers to trade Bahrain Bay
Dohaland goes back to basics DOHALAND’s award-winning Musheireb project in Doha, Qatar, shows a new approach to city-centre development in its respect for location and culture — and could influence the future evolution of our cities, according to the Quatari developer. “We are challenging the status quo, questioning how developers think,” said Dohaland CEO Issa Al Mohannadi. “While we are not mimicking the past, we are going back to basic concepts to recapture a sense of place and produce unique schemes.” The Musheireb project — which was Mixed Use category winner and Overall Winner in the 2011 MIPIM Architectural Review Future Projects Awards — forms the centrepiece of phase 1B of Dohaland’s $5.5 bn (€3.9bn) city-centre redevelopment.
Dohaland’s Issa Al Mohannadi (left) and Mossessian & Partners’ Michel Mossessian
Rooya Group’s Hisham Shoukri: “Corruption and lack of transparency are being tackled and removed”
THE EGYPTIAN Investment Laboratory saw three of Egypt’s most respected commercial real-estate figures talking about the opportunities in the ‘new’ Egypt. Hisham Shoukri, executive president and CEO of developer Rooya Group for Real Estate Investment,
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Al Futtaim’s Ahmad Touni: “Great urgency” to reduce Egypt's supply and demand mismatch
said it is already clear that Egypt’s future is looking good — better in many ways than before the events of January 5 this year. “The age-old inherent barriers to trade in Egypt — corruption and lack of transparency — are being tackled and removed,” Shoukri said.
Ahmad Touni, director of All Futtaim’s residential and commercial division, said there was “great urgency” to reduce the mismatch between supply and demand. “In office space, retail provision and leisure-related space, the next few years will see Egypt catch up.”
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••• AFRICA
Living the dream in Mozambique MIRCO, the Mozambique Infrastructure Resource Company, is setting its country’s investment and development scene alight by bringing projects from ‘vision to reality’. The new company — a joint venture with SBT Juul from South Africa — specialises in developing office blocks, hospitals, waterfront developments, marinas, shopping centres and mixed-use developments. With one of the highest economic growth rates in Africa, Mozambique’s strong economic indicators have encouraged increased foreign direct investment (FDI) flows into the country, MIRCO says. The current investment climate offers international investors opportunities to explore various sectors as the country and region move towards greater economic integration. But tourism is thought to be the key. Mozambique boasts a long coastline featuring some of the most stunning beaches on the African continent, with subtropical islands, azure waters and unspoilt coral reefs. Moreover, its wildlife is rich and diverse, and it is home to several internationally recognised nature-conservation areas, including the Gonarezhou National Park, one of the largest transnational parks in the world, spanning three countries.
Prime minister flies flag for ‘investor-friendly’ Rwanda RWANDA’s prime minister, the Right Honourable Bernard Makuza, led the country’s first ever delegation to MIPIM in a bid to reinforce its position as the gateway to East Africa. In a keynote speech, Makuza talked about the great strides that Rwanda has made in recent years and set out some of its plans for the future, particularly in the capital city of Kigali. “We are putting great stress on infrastructure,” he said. “Without that, commercial, office and even retail developments won’t get off the ground.” Makuza added that his country has seen an average of 8.5% growth every year over the past five years. The masterplan for Kigali was put into operation in 2010. Makuza reported that $630m has already been invested in the city’s infrastructure and services by the private sector, with $120m coming from the public purse. The prime minister said Rwanda and Kigali would take advantage of its central geographical position “to become a gateway to the whole of East Africa — a place where 135 million people live. We aim to be
Rwanda’s Bernard Makuza: Kigali could “become a gateway to the whole of East Africa”
a hub for servicing the area around us within a four-hour flight radius.” Among the key infrastructure projects set to transform the Rwandan
business scene are a new $1bn international airport and a $4bn railway linking Rwanda to Tanzania in the east, and to the Congo in the south.
Ogbu tells ‘the real African story’
Tourism is the key: Mozambique boasts a stunning coastline
AFRICA is the future — particularly South Africa. That was the message that Samuel Ogbu, this year’s president of the South African Property Owners Association (SAPOA) and CEO of Liberty Properties, shared with MIPIM delegates. “We want to tell the South African story to the world’s investment community,” he said. “And not just
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that — we are also playing advocate for Africa itself. There are fantastic opportunities in Africa, and we want to dispel the old myths about problems and difficulties, and tell the real African story.” Ogbu’s MIPIM mission was to highlight the merits and advantages of investing in South Africa — and he pointed to SAPOA as the prime conduit through which to do it. SAPOA
members own or control 90% of the commercial property in South Africa. The organisation can connect investors with the commercial property industry throughout the country. This is done through its database and by regular communication with its 1,075-company membership in publications, newsletters, e-mail, personal contacts and industry conventions.
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••• NORTH AMERICA
Ontario’s top 10 benefits THERE are 10 dynamic reasons why Ontario is a hub for global business, according to Hazel McCallion, the 90-year old mayor of Missisauga, Ontario’s third largest city. “We have slashed business taxes and our manufacturing costs are lower than in the US, the UK, France or Germany,” McCallion said. “We have a smart, highly skilled workforce; we have duty-free access to the US market; and we promote R&D, incentivise invention and support innovative industries. Our infrastructure is modern, we have a broad and stable economic base — and, not least, we have a quality of life in Ontario that attracts global talent.”
NYLon: a tale of two cities NEW York is “the most sustainable place on the planet” because many of its tall buildings sit on public-transport hubs”, Kenneth Patton of the NYU Schack Institute of Real Estate told a MIPIM audience. “Density is what London needs,” he added. Patton was speaking at a seminar on the London stand, which brought together planning and development experts from both sides of the Atlantic to discuss what the two rival world cities can learn from each other. On the subject of regulation, Stuart Fraser, chairman of the City of London’s policy and resources committee, said that it is “vital” that London remains open to global talent. Stuart Fraser, City of London: “Vital that London remains open to global talent”
Surprise Pointe seeks ‘unique investor’ with $20m to spend FIRST-time delegate Mike Gottlieb, chairman of Citation Capital Partners, was at MIPIM to look for a partner to invest $20m (€14.3m) in the Surprise Pointe foreign-trade zone in Arizona. “We believe our project will appeal to a specific European investor who is interested in getting excellent value on a medium-term investment in one of the fastest growing areas in the United States,” Gottlieb said. “Its location in a newly designated foreigntrade zone will create demand for this industrial/commercial/retail project located on a rail-spur.” The designation means tenants of the 157-acre project will enjoy zero import duties and reduced prop-
Citation Capital Partners’ Mike Gottlieb: “Our project will appeal to a specific European investor”
erty taxes. Close to both Phoenix and the Mexican border, the site is expected to appeal to big-box occupiers. Site developer ESI Ventures is offering a choice of serviced sites, or will build to suit occupiers’ needs. The announcement of local solarpower facilities adds to Surprise Pointe’s attractions, particularly for major power users. Crescent Crown Distributing, the secondlargest beverage distributor in the US, has already given the project a vote of confidence by choosing it for its western distribution hub. “We believe MIPIM provides the ideal setting to find that unique investor looking to capitalise on this opportunity,” Gottlieb said.
Good time to rediscover Montreal
Richard Deschamps (inset): “For investors, it’s a good time to rediscover Montreal”
MONTREAL was at MIPIM for the sixth time to showcase the latest milestones in its 20-year development programme. “For investors, it’s a good time to rediscover Montreal,” said Richard Deschamps, the city’s deputy
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mayor and member of the executive committee with special responsibility for economic development. Deschamps pointed to three key development programmes now taking place in Montreal as part of
the city’s 20-year plan: The Harbourfront, the entertainment district and Montreal Technopole, which “will establish Montreal as a business incubation, research and innovation centre”, Deschamps said.
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••• LATIN AMERICA
‘Magical’ Sao Paulo confronts challenge of explosive growth SAO PAULO has undergone an urban transformation following extraordinary economic growth. But as the city’s mayor, Gilberto Kassab, told delegates in a keynote speech, such good fortune brings its own special challenges. The city already accounts for 15% of Brazil’s GDP and boasts the greatest “multiplicity of communities and cultural diversity” of any capital city, Kassab said. He added: “That pluralism makes Sao Paulo a magical city and a thriving capital, but the influx of people from all over Brazil and all over the world means that society is increasingly demanding on the facilities of the city.” The municipal budget has more
than doubled to Brazilian Reals 35bn in the seven years that Kassab has been mayor, reflecting the wealth creation and economic growth of the city and its 11 million population. “These changes generate investment opportunities from outside, which are extremely welcome but actually needed in a city the size of Sao Paulo,” Kassab added. “The city is transforming unlike any other city.” With Sao Paulo hosting the 2014 World Cup football tournament and bidding to host the 2020 World Expo, more change is coming. The city is building a 5 million sq m convention centre in readiness for World Expo and in the expectation of investors from overseas. “There is a great demand for partners,” Kassab added.
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Gilberto Kassab, mayor of Sao Paulo: “Transforming unlike any other city”
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••• LATIN AMERICA
Tourism puts Uruguay on the map URUGUAY is positioning itself as an international destination for tourism and residential investors — and, to this end, it was represented in Cannes this year by Destino Punta del Este, Uruguay XXI and the city of Maldonado. Uruguay is considered politically and economically stable, boasts areas of great natural beauty and is already popular with international investors, especially from Europe.MIPIM week also saw the launch of the Guia De Inversiones (Guide To Investments), which explains how best to go about investing in Uruguay. The guide, which is available in three languages, is designed to help those who are interested in doing business in country.
Punta del Este, Uruguay
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••• HOTELS, TOURISM & LEISURE
Boutique hotels to the rescue? SPEAKING at the HTL Lounge presentation Islands In The Urban Jungle: City Hotels, architect Axel Schoenert described the growing trend for reinvigorating existing citycentre buildings by transforming them into boutique hotels. According to Schoenert, the approach frequently involves the conversion of a run-down hotel. The number of rooms are reduced, the guest accommodation expanded, the star rating upped and sustainable features introduced. But for a scheme to be successful, he said, it should take inspiration from the building’s history and location.
Portugal still hot PORTUGAL is still open for business, according to Hans Luyckx of consultant Constructions Europe. Luyckx is working on the Panorama Village project that is being developed north of Lisbon by Urbidoismil-Empreendimentos Urbanos. Also involved in the scheme is Pedro Santos of consultant De Minimis, who added: “Portugal is good for those looking for opportunities at the bottom of the cycle.” His colleague, lawyer Carina Santos, agreed: “Investors should look again at Portugal.”
Ultimate choice NAVARINO Dunes is bent on becoming “the ultimate family destination in the Mediterranean”, said Leonidas Tsibouris, general manager of TEMES, the developer of the eco-friendly Costa Navarino development in Messinia in the Greek Peloponnese. Navarino Dunes includes two luxury hotels, a golf course designed by Bernhard Langer and innovative child-care centres. The ultimate goal, Tsibouris added, is to create a ‘cluster’ of up to five golf courses within a half an hour drive, along with residential villas.
Osnova fulfils MIPIM mission with hotel deal in Volgograd RUSSIA’s Osnova Invest was in Cannes for the first time to find partners with experience of the hotel and hospitality industries — and the Voronezh-based company wasn’t disappointed, according to managing partner Alexander Kaltykov. Central to Osnova’s MIPIM mission is its plan to create a national chain of hotels across the breadth and depth of Russia, “all under international brands,” Kaltykov said. “And during MIPIM, we signed an agreement with the mayor of Volgograd for the provision of a hotel site in that city. We have the money. We have the companies. We don’t
Osnova Invest’s Alexander Kaltykov: “We signed an agreement with the mayor of Volgograd”
have the experience, so we were at MIPIM looking for that.” Kaltykov added: “There are very few quality hotels in Russia’s regions. As Russia develops and grows, there are increasing numbers of tourists and business people visiting areas of Russia outside Moscow.” The Osnova Group, which was founded in 1999, has agreements to provide hotels with Hampton, Hilton Garden Inn, Ibis and Days. “Since 2006, the group has operated primarily in the sphere of project management, both as a contracted developer and promoting its own projects,” Kaltykov said.
W London on market for £200m MCALEER & Rushe announced at MIPIM that it is to sell its W Hotelled development on London’s Leicester Square — and is looking for bids in excess of £200m. W London, which was presented with the MIPIM Award’s Best Project In The UK as part of the MIPIM Country Of Honour programme, is situated on the corner of Leicester Square and Wardour Street. The 10-storey development provides 192 guest rooms, 11 two- and three-bedroom penthouse residencies and 3,251.6 sq m M&M’s World Store. Speaking from McAleer & Rushe’s stand in the London Pavilion, the company’s chief executive, Eamonn Laverty, said: “It is entirely appropriate that we should chose the glamorous surroundings of Cannes to launch the sale of London’s most glamorous hotel.” McAleer & Rushe has appointed Jones Lang LaSalle and Steerforth Partners to advise on the sale.
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McAleer & Rushe to sell W Hotel development on London’s Leicester Square
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••• KEYNOTE SPEECH
DR NOURIEL ROUBINI
Accentuating the positives DR NOURIEL ROUBINI, THE RENOWNED ECONOMIST WHO PREDICTED THE RECENT FINANCIAL CRISIS, SPOKE TO A PACKED HOUSE AT MIPIM ON THE GLOBAL ECONOMIC OUTLOOK AND ITS IMPLICATIONS FOR THE REAL-ESTATE INDUSTRY. MARK MOORE WAS THERE
L
OOKING at the economic prospects for the world, Dr Nouriel Roubini, professor of economics at New York University’s Stern School of Business, foresaw a mixed future, with both pluses and minuses in store for the global economy. Roubini identified a series of positive effects that would drive the world economies and said that these would
“
Governments
need to tackle deficits with
”
conviction
make headway against some counterpositive trends. The first positive identified by Roubini was the fact that the recovery has lasted three years to date and looks to be well-founded in Europe, the US, Japan and the emerging economies. Second, he observed that “the tailrisks, such as double-dipping, are definitely smaller and lower now than they were a year or so ago”. Third is the fact that “corporates round the world appear to be in good shape. They have emerged from the low point leaner and meaner, and have cash available that they are more willing to spend.” Roubini’s fourth positive pointer was the continuing strong rise of the emerging economies. “The permanent fast growth of these economies is also
good news for real estate,” he said. And then there is the fact that the financial markets are starting to rise round the world — and the equity markets are also experiencing a positive rally. Encouragement should be drawn from these indicators, Roubini said. However, he also identified a series of factors that are working against these positives: “Recovery is still slow and precarious in many places. It is a Ushaped recovery not a V-shaped bounce-back.” Sovereign risk is still high, and there are large public deficits, Roubini pointed out, adding: “Governments need to tackle these deficits with conviction.” The persistent problems in the periphery of the euro zone are also a
cause for concern. “Though the breakup of the euro now seems unlikely, the troubles in Greece, Spain, Ireland, Italy and Portugal mean that, even when they get back on the road to recovery, they will have lost market share to the emerging economies.” The fourth troubling factor is the continued problems in the US. Chief among these is the country’s inability to tackle its endemic fiscal problems, Roubini said. The housing sector has double dipped and unemployment remains at a high level. Roubini also stressed the as-yet unknown run-on effects flowing from the troubles in the Middle East. But despite these problems, Roubini was hopeful that the positives would continue to outweigh the counter-positives.
Nouriel Roubini
Keynote speaker Dr Nouriel Roubini, professor of economics at New York University’s Stern School of Business
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Nouriel Roubini: “The tail-risks, such as double-dipping, are definitely smaller and lower now than they were a year or so ago”
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Data as at 31 December 2010. Amundi Immobilier, Head Office: 91-93 boulevard Pasteur 75710 Paris Cedex 15 – France. A joint stock company (“Société Anonyme”) with a registered capital of €15,666,374 RCS Paris registration number 315 429 837. Investment Company approved by the French stock market regulatory authority (AMF) n° GP-07000033. Photo : Frank Hülsbömer.
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