MIPIM ASIA REVIEW 2011

February 2012

mipimasia

®

www.mipimasia.com The official MIPIM Asia magazine

r eV ieW MIPIM ASIA AWARDS

We honour the very best of the region’s built environment projects SEE PAGE 22

INVESTMENT + RETAIL

Baku set for transformation Aedas’ golden year in China SEE PAGE 6

Also inside:

• Taichung mayor Jason Hu on the ‘miracle city’ • MIPIM Asia’s property influencers on the outlook for the region’s real estate market • Carrie Lam on Hong Kong’s next moves

EDITORIAL

COntents Filippo Rean Director of MIPIM Asia & MIPIM

i nEWS

4

i intervieWs

10

i VIEWpoint

12

i invision

16

i awards

22

The lowdown: All the news from the show, including special sections on investments, retail and cities

W

ELCOME to the MIPIM Asia 2011 Review magazine.

I want to start by thanking all of you for supporting MIPIM Asia 2011, where we welcomed over 1,900 delegates, an increase of 11% compared to 2010.

In 2011, we significantly boosted the number of networking and knowledge-sharing events and we will further develop this approach in 2012.

2011 also saw a much-enhanced conference programme which targeted investment and financing trends and practices in Asia Pacific, the challenges to sustainable cities and heritage preservation, and the prospects for retail real estate.

The importance of retail for the region’s real estate sector has encouraged us to launch the first Asia Retail Summit at MIPIM Asia 2012, with a dedicated conference and networking programme, and introduce the Retail Village on the exhibition floor. We had over 100 international retailers participating to MIPIM Asia last November, and we are confident that 2012 will see an even stronger retail participation.

2011 saw over 400 investors present at MIPIM Asia, and I am glad to announce that we will introduce the first Investors Summit at MIPIM Asia 2012, focusing on the market’s hottest topics.

Sustainable urban development is a major issue facing the entire world and MIPIM Asia is committed to bringing together the city administrators, architects and developers who will build the ‘smart’ cities of the future and who were a key to the success of last year’s event.

Finally, it is a pleasure to announce that MIPIM Asia 2012 will take place in Hong Kong, 7-9 November.

Filippo Rean Director of MIPIM Asia & MIPIM

Opinion formers: We ask the region’s key ‘property influencers’ for their views on the market

Hong Kong development secretary Carrie Lam outlines the city’s sustainable future

Asian eye: Relive the MIPIM Asia show through our special highlights section, in pictures

Gold, silver, bronze: Full coverage of the MIPIM Asia 2011 awards

mipimasia reVieW The official MIPIM ASIA magazine February 2012. ®

Director of Publications Paul Zilk EDITORIAL DEPARTMENT Editor in Chief David Taylor Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designer Carole Peres Proof Reader Debbie Lincoln Contributors Damian Arnold, KK Chadha, Mark Cooper, Steve Killick, Doug Morrison, Gardner Robinson Editorial Management Boutique Editions PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Co-ordinators Nour Ezzedeen, Emilie Lambert, Amrane Lamiri Production Assistant, Cannes Office Eric Laurent Printer Riccobono Imprimeurs, Le Muy (France) ADMINISTRATIVE & ADVERTISING DEPARTMENT Real Estate Division Director Christophe Chupot MIPIM & MIPIM Asia Director Filippo Rean Commercial Director Julien Sausset Sales Director Investors, Corporate End-Users and Hotel Groups Aude Fraisse Sales Manager Investors, Corporate End-Users & Hotel Groups Claire Chaussidiere Regional Director of Sales Christine Lam UK Managing Director Peter Rhodes OBE Senior Vice President (USA) Patric Dolan Published by Reed MIDEM, BP 572, 11 rue du Colonel Pierre Avia, 75726 Paris Cedex 15, France. Contents © 2012, Reed MIDEM Market Publications.

Publication registered 1st quarter 2012. ISSN 1969-2021. Printed on 100% recycled paper

www.mipimasia.com I review magazine I February 2012 I 3

nEWs WRAP UP

MIPIM Asia goes from strength to strength 2011 was the year in which MIPIM Asia cemented itself as an unmissable fixture in the real estate market calendar, raising the profile of Asian property on the world stage

S

OME 1,913 senior real estate executives, retailers, government officials and city administrators from 41 countries engaged in conferences and took advantage of the show’s major networking opportunities.

Attendance at the Hong Kong Convention and Exhibition Centre was up by some 11% compared to 2010, as MIPIM Asia welcomed its first Malaysian Pavilion, an expanded Hong Kong Pavilion, a first-time presence from the Northern Caucasus Resorts and France’s Orchestra retail brand. Indeed, retail was a big focus this year, with a record attendance of big name retailers such as LVMH, Apple, Hugo Boss and Abercrombie & Fitch all keen to expand in the Asia Pacific region and meet with developers, cities and investors to scout the best sites.

At the top of the exhibiting countries league, and second in the participating countries list, China was again an important presence at MIPIM Asia, including the attendance of Shanghai Huangpu River District.

There was a notable presence too from Hong Kong, Singapore, Japan, the US and UK in terms or participating countries; Australia, South Korea, Malaysia and Taiwan among the pre-eminent exhibiting countries. Underlining Asia Pacific’s growing importance on the international market, French Urban Affairs Minister, Maurice Leroy, attended MIPIM Asia to promote the vast Greater Paris project, which includes a 20bn, 150-kilometre driverless subway system around the French capital.

The project also plans for 70,000 houses to be built per year for the next decade. Work is expected to start on Greater Paris in 2012.

Other highlights included Carrie Lam, Secretary for Development of the HKSAR Government, hosting a Hong Kong-themed lunch for over 60 leading real estate executives attending MIPIM Asia. During the Secretary for Development’s presentation, she outlined plans to increase office supply in Hong Kong so as to sustain the city’s economic growth in the foreseeable future (see Viewpoint feature).

Meanwhile, Taiwan’s Council for Economic Planning and Development Minister, Christina Y. Liu, heading a 60-strong Taiwanese delegation, told MIPIM Asia attendees about 35 projects representing a total investment of $36.7 billion.

4I

review magazine I February 2012 I www.mipimasia.com

We are not resting on our laurels, however. MIPIM Asia organiser Reed MIDEM has exciting plans to develop the show further next year.

The idea is for a ‘3 in 1’ event focusing on an Asian Investment Summit, an Exhibition Area to feature building innovation, and a special summit based on Asian Retail. Each of these sectors will have its own dedicated events and speakers to delve deeper into those subject areas, with a more structured and focused exhibition zone, and unifying events such as planned networking and awards. The show will aim to be the leading real estate investment conference for Asia, the Asian showcase for major developments, developers, projects and cities seeking investment, and the leading retail real estate conference in Asia. Roll on MIPIM Asia 2012...!

Leading lights – MIPIM Asia venue, the Hong Kong Convention and Exhibition Centre

i neWs: conferences KEY SPEAKERS

CONFERENCE TRACKS / WRAP UP

‘Cautious optimism’ prevails at MIPIM Asia as China leads the way Delegates to MIPIM Asia 2011 demonstrated their confidence in the region’s real estate future, led by powerhouse China

T

François Ortalo-Magné

HE strong sense of opti- Mixed with a cautious optimism in a “numism about the Asian mar- anced approach to the market” across propket felt over the last two years erty type, delegates at MIPIM Asia expressed at MIPIM Asia continued a strong focus on China, said Ortalo-Magne. into 2011’s show, with more “There’s also much more nuance in terms of inof an emphasis on the diversity of opportuni- vestment structures, in particular, it seems the Pan Asian fund is dead and investors are askties now available.

That was the chief point made by François ing the fund managers to be a lot more specific Ortalo-Magné of the Wisconsin School of about their strategy in terms of property types Business in his wrap-up speech in Hong Kong at and geography.” There were more nuances emerging too, across Chinese the end of MIPIM Asia 2011. provinces with opportuni“From a real estate point of ties beyond the coastal review, investing in Asia is not “My own gions and beyond China into simply investing in Shanghai sense is that other Asia-Pacific markets. or Hong Kong, Beijing, Tokyo Beyond China, Australia and and Singapore” he said. the world is New Zealand and Japan repMore than half of the delemoving closer resent good opportunities, gates asked about their busito here” along with Taiwan and Hong ness activity said it was betKong. China, though, is the ter this quarter than the same unavoidable market because quarter last year, representof its rapid urbanisation and ing a “very strong vote of realisation from the optimism we saw a year ago”. its scale — the value of exports coming out of Similarly, a survey conducted by MIPIM Asia China is as big as the rest of the region comexhibitor Real Capital Analytics found that all bined. And part of the confidence on show but one of the top 20 Asian firms which were is down to the confidence people have in the active in buying real estate at the peak are still Chinese government to engineer a soft landtoday active, in stark contrast to those surveyed ing and to “fine tune the economy. Every time in Europe (11 remaining) and, to a lesser ex- I come to MIPIM Asia my own sense is that the world is moving closer to here.” tent the US.

MIPIM Asia 2011 attracted some of the biggest names in Asian property. Alongside Justin Chiu of Cheung Kong Holdings and Hong Kong development secretary Carrie Lam, the cream of the Asia-Pacific region’s real estate professionals attending the show included: president of the MIPIM Asia 2011 Awards jury GIC’s Dr Ngee Huat Seek; Minister Dr Christina Y Liu from Taiwan’s council for economic planning and development; global head of real estate markets for Thomson Reuters Robert Ciemniak; professor of economics at the China Center for Economic Research Prof Yiping Huang; Gaw Capital’s Goodwin Gaw; Sino Land associate director Hong Ping; head of research, Asia Pacific capital markets, Jones Lang LaSalle Dr Megan Walters; KPF president Paul Katz; China Energy Fund adviser Ben Simpfendorfer; Redevco MD Robert Lie; SOCAN managing director and chief executive Philip Wong; Malaysian Property Incorporated CEO Kumar Tharmalingam; Harvest Capital Partners CEO Rong Ren; head of Japan Core Fund at AXA Real Estate Hidetoshi Ono; Hong Kong director of planning Jimmy Leung; director of real estate investment market, Japan ministry of Land, Takuya Ishikawa; and Costa Coffee general manager Bernard Chiew.

NORTHERN CAUCUSES SET FOR LIFT OFF THE NORTHERN Caucuses is set to become a yearround, sustainable centre for tourism thanks to a $30bn public private venture to create the world’s largest mountain skiing and beach resorts. The Northern Caucuses Resorts Company (NCRC) is a public-private initiative to oversee the creation of the development to be located in the south of Russia. The company will also establish a network of beach resorts along the Caspian Sea coastline, with the $30bn project at the core of a government strategy to promote economic and social transformation of the region. NCRC will for the first time present world travellers with opportunities to discover the unique natural and cultural beauty of the North Caucasus Mountains, home to four UNESCO World Heritage Sites. On completion, the North Caucasus will be the world’s third-largest ski destination, after the Alps and the Rocky Mountains. The resort cluster is set to rival such acclaimed destinations as Park City and Vail in the US, Les Arcs and Val Thorens in France, Ischgl in Austria, Zermatt and Gstaad in Switzerland and Sella Ronda in Italy. Hotels will offer more than 150,000 rooms, enabling visitors to enjoy almost 900 km of ski slopes equipped with 180 modern lifts. The new regional tourism industry will create more than 300,000 jobs and will double the size of the region’s economy by 2020.

www.mipimasia.com I review magazine I February 2012 I 5

i neWs: investors NEWS IN BRIEF

TOWN REAL ESTATE FOCUSES ON NEW YORK INVESTORS NEW YORK’s fastest growing real estate services firm took part in MIPIM Asia to show off its expertise and knowledge of Manhattan’s dynamic real estate market. Formed in 2010, Town Real Estate says its approach is “all-encompassing yet remarkably simple, with a recognition that at the heart of each unique transaction is a client with the same universal needs: superior service, impeccable neighbourhood knowledge, transparency of information and attentive professional guidance throughout the process”.

Robert Dvorin and his team at Town are some of Manhattan’s most accomplished and respected real estate professionals and have also been recognised as one of the city’s top resources for international investors active in the Manhattan market.

LANDED: CHINA TO DEBUT IN Q2 2012 THE LATEST installment in the Landed series of real estate books will arrive in bookstores in the second quarter of 2012.

Landed: China gives readers the key facts and local insights they will need to buy property in China’s Tier 1 cities. The new book includes detailed information about the buying and selling process; how to identify and manage Chinaspecific risks; and where to find financing, legal advice and other essential services.

Following on from the success of books about Hong Kong and Japan, Landed: China includes case studies about residents and non-residents who have successfully bought real estate in Beijing, Guangzhou, Shanghai and Shenzhen. The new book also explains the demographic, economic and political changes that are reshaping China’s real estate markets.

The Landed books are written by Christopher Dillon, an entrepreneur and real estate investor who has lived in Asia for more than 20 years.

For more information, go to www.landedbook.com

TBILISI SHOWS ITS LOVE TBILISI — the City That Loves You — ventured to MIPIM Asia this year to demonstrate its potential to investors as a gateway for business. The City’s Economic Affairs Office, part of the Tbilisi Authority acts on city strategies and long-term plans, investors’ service, city branding and marketing, tourism, SME support, workforce capacity-raising, energy efficiency, international projects management, and Tbilisi Metropolitan Area development. Potential investors can gain help on marketing, information on how to start and develop a business and links with relevant partners.

6I

From black to white: Baku White City

REGENERATION

Baku gearing up for ‘step change’ in urban living Baku, the capital of Azerbaijan and the largest city on the Caspian Sea is home to the major mixeduse scheme Baku White City

A

Z E R B A I J A N c a p i t a l squares, open spaces, streets and boulevards.

Baku is looking to its Landmarks and gateway buildings have been past as well as its future by carefully orientated within the masterplan to building a major mixed-use create a legible visual structure, and to maxscheme which represents imise opportunity for residential developments which command views of the both a turnaround for the once Caspian Sea. Ultimately, say polluted site it sits on and a the backers, the scheme is step change in quality of urban “We know trying to achieve a sustainliving. able community where the Baku White City provides a tothat investors people of Baku can live, work tal of 4,800,000 sq m of gross will come” and play. Azerbaijan presifloor area, and will be populatIlham Aliyev dent President Ilham Aliyev ed by a community of 50,000 President spoke at the ground-breakpeople with 19,700 homes and ing ceremony of the project jobs for close to 48,000 peoin December, praising the imple. The development promises highly sought-after residential areas, pact the scheme will have on the country. “In well connected commercial and business ar- Azerbaijan, we are laying the foundation of eas and high quality leisure facilities, linked a project measured in billions of dollars”, he together through a series of vibrant public said. “We know that investors will come”.

review magazine I February 2012 I www.mipimasia.com

BEST MIXED-USE BUILDINGS {GOLD} and MIPIM ASIA PARTICIPANTS’ CHOICE AWARD Marina Bay Financial Centre

BEST HOTELS AND TOURISM RESORTS {SILVER} Xintiandi Hotels

Kohn Pedersen Fox Associates Winner of 6 MIPIM Asia Awards KPF is proud to have been recognised over 25 times in the history of the MIPIM and MIPIM Asia Awards and would like to thank ReedMidem and MIPIM Asia for consistently honouring international excellence in Architecture and Urban Design.

BEST BUSINESS CENTRES {SILVER} Abu Dhabi International Airport Midfield Complex

BEST BUSINESS CENTRES {GOLD} International Commerce Centre

BEST BUSINESS CENTRES {BRONZE} Wheelock Square

www.kpf.com

i neWs: retailers RETAIL

TOWN CENTRES

Aedas reports golden year for China projects

WESTERN AUSTRALIA’S PILBARA TURNS TO ITS TOWN CENTRES

MIPIM Asia participant Aedas is basking in the warm glow of a successful 2011, signing and now designing over 7 million sq m of new projects in China.

Chairman of AEDAS Asia Keith Griffiths said most are mixed commercial developments exceeding 200,000 sq m and are located mostly in the secondary cities of China including Chengdu, Chongqing, Wuxi, Huizhou, Nanjing, Nanning, Zhengzhou, Nanchang, Dongguan, Zhongshan, Taicang, Jinhua and Foshan.

In Hong Kong the firm completed a hat trick of the gateway Hong Kong Infrastructure projects by acquiring the design for the Hong Kong – Zhuhai Bridge Facilities Building to add to the West Kowloon Express Rail Station and the new Mid-Field Concourse at Hong Kong Airport.

While in Singapore AEDAS completed Marina Bay and acquired nine stations for the Thompson Line.

Completions included 4.5 million sq m of China projects, including office buildings at Sino International Plaza in Fuzhou; Fortune Centre in Xiamen; Dynasty on the Bund in Shanghai and mixed use buildings; North Star Hotel/Office/Retail in Beijing; Crowne Plaza Hotel/Retail in Huizhou; Starlight Place Retail/Residential in Chongqing; Mountain Creek Residential in Sanya; Jade City, The Loft and Le Parc Residential projects in Chengdu.

The firm also had a good year for awards including Gold MIPIM Futura and the Chicago Athanaeum Award for Lucas’ Singapore HQ, CX2-1 and Cityscape awards for CX2-1 and Pazhou Exhibition Centre/Office/ Hotel project in Guanghou.

“It’s interesting to note that our projects are increasingly in the second tier cities in China and that we are working on more mixed use projects”, said Griffiths. ‘We anticipate a slower year in 2012 for Singapore and Hong Kong and roughly the same level of activity for us in China.’

BILLIONS of dollars are pouring into Western Australia’s Pilbara region in a bid to transform its town centres into sustainable communities with new retail, housing and public spaces.

The Pilbara Cities scheme was launched by State Government in November 2009 as part of the Royalties for Regions programme, which invests the equivalent of 25% of the State’s mining and onshore petroleum royalty revenue in regional Western Australia each year. The scheme’s vision is to use an allocation of A$1bn over four years to transform the region by creating attractive, sustainable communities, aiming to grow the population from 52,000 to 140,000 by 2035. The project involves diversifying the economy through the revitalisation of town centres in Karratha, South Hedland,

Newman and Tom Price, with new precincts aimed to provide apartment living, entertainment, shopping and social options. The Karratha City of the North Plan, for example, will ultimately represent A$1.5bn of public and private funding to produce on 1.5ha a 150-room hotel, commercial space, entertainment and public spaces.

Exciting opportunities are also now available in Port Hedland with applications sought for commercial, office, retail and accommodation projects on the coastal site, while Newman will get A$20m and Tom Price A$10m in similar town centre moves.

The Western Australia team at MIPIM Asia said investment opportunities exist across the spectrum, from retail, to resort and marina-style developments to eco-tourism.

COMPANIES

Orchestra tunes up for Asian market

Networking on the Orchestra stand

Daylight delight: Aedas’ North Star project in Beijing 8I

review magazine I February 2012 I www.mipimasia.com

FRENCH children’s wear chain and MIPIM Asia 2011 first-time exhibitor, Orchestra, has chosen Hong Kong as its Asian headquarters. The company, which has some 170 stores in Europe, the Middle East and Russia, is known for its “circuslike decoration and atmosphere”.

Director of Orchestra (Asia) Guy Mazzoni

said there was never any question where its first Asian presence would be. “Hong Kong is not only the shopping capital of Asia; it is also a fantastic stepping stone into China and the rest of Asia,” he said.

Orchestra is setting up a franchise network with Hong Kong partners to address the mainland market.

i neWs: cities CITIES

SOM

Hu pushes Taichung — ‘miracle city’

SHANGHAI SURPRISE

TAIWAN has emerged unaffected by the “financial Tsunami” of the last two years and is going from strength to strength in its real estate markets.

That is according to Jason Hu, mayor of Taichung, who said the “very special city” he governs has seen its land value increase by an average of 300-400% over the last 10 years. “Some specific redevelopment areas grew by 10 times, mainly because the confidence people have in the future of this city”, he told MIPIM Asia Review. Partly this is down to promotion of the city’s image, partly because of the “exceptional quality of construction’” Taichung was the third largest city in Taiwan when former foreign minister and US ambassador Hu took over in 1991. In the meantime he has worked to internationalise the city, bringing it to the media domestically and internationally, and transforming it into a municipality, thus allowing Hu to sit in the country’s cabinet meetings. Hu has also attracted some $53bn of investment, partially using the locomotive of real estate to drive economic progress forward. Taichung has grown to become twice as big as Hong Kong and three times as big as Singapore in geographic size. “I am trying to make Taichung competitive, or emulating these two great cities,” said Hu. Taichung’s housing market is thriving, while it also won city of the year in art in 2007, and Hu is figured as one of the top 10 popular mayors in the world in Monocle magazine. The city is currently building a Toyo Itodesigned opera house that Hu believes will be “as great an achievement as the one in Sydney”, and an award-winning park, both of which will help to push the city’s image further. The thriving sectors for developers and investors include electronics, biotech, robotics and mobile phones.

“I’m very impressed with MIPIM Asia and am trying my best to get it to come to my city,” added Hu. “People could see the miracle city in real estate in the world!”

SHANGHAI can boast a high quality new research and development campus for the future of mobile phones in the city’s Pudong District, thanks to the SOM-designed Shanghai Huawei Technologies Corporate Campus.

The scheme, comprising two linear fivestorey buildings, integrates two parallel wings of office and lab space, bridged by

a central building containing administrative offices, cafeteria, and conference rooms. Built to hold 7,500 employees, the 270,000 sq m multiaward winning scheme also features bamboo-filled gallerias, open plan working and a lush wetlands landscape which provides flood control and a strong connection to nature.

Shanghai Huawei Technologies Corporate Campus

PROGETTI

AM Progetti goes for growth in China

Plastic fantastic: the Guangdong Plastic Exchange scheme

Mayor of Taichung, Jason Hu

AM PROGETTI was at MIPIM Asia to show a number of its schemes in China, including the landmark building for the Guangdong Plastic Exchange in Canton, the eco town of Jingwu in Tianjin, the new Shanghai International Design N.1 in Shanghai

designed in collaboration with the Tonji University, and an eco-friendly housing project designed for the city of Shenzhen.

The practice, which has been operating since 1995, has offices in Milan, Beijing, Guangzhou and Shanghai.

www.mipimasia.com I review magazine I February 2012 I 9

intervieWs INTERVIEWS

Property influencers We conducted a series of short video interviews with industry leaders during MIPIM Asia, to find out their thoughts key trends in the property market and prospects for the future. The videos, which also include a session with Hong Kong development secretary Carrie Lam (see p. 12), are viewable in full, along with property influencers from other shows, on the MIPIM Youtube channel at www.youtube.com/user/mipimworld/featured. The following is a summary of what our MIPIM Asia property influencers told us.

Muhyiddin Razack

David Sancho

Justin Chiu

Head of private funds, Mapletree Investments

Vicepresident, Mango

Executive director, Cheung Kong Holding

“OUR FOCUS is very much on the major markets in Asia. I think China still has a lot of potential. If you look at the inland provinces in China, the demographics there show there are almost as many people there as there are in Africa, for example. So there will be opportunities to expand into the inland provinces — I think that’s a key market in the region, both in residential and offices. There’s been a lot of attention devoted to the tier-one cities but those other cities in the inland provinces... the numbers are quite mind boggling. I think the delegates at MIPIM are a very realistic bunch of people — there is caution in the wind but for me and my company it is positive in terms of the opportunities that the current environment will throw up. So for the smaller entities it may be more trying to get the capital to take advantage, but for the larger organisations like Mapletree it is good. Given what is happening in the west it has heightened the sense that if you want to make money it is a less risky proposition — you should be looking at the major markets in the east, and not just the mature markets like Singapore, Hong Kong, Australia and Japan but also emerging markets like China and India continue to attract a lot of capital.”

“WE’RE one of the biggest retailers, with 2,500 stores in 105 countries. We are seeing that Asia is a booming market for retailers, and we want to enjoy the party, develop our brand and bring our fashion to the Asian customers. We want China to become one of the biggest markets in our portfolio, but of course we have Korea, Japan, Singapore, India, and Malaysia where we are already with very good partners. Our idea is to grow there crazily! When I arrived in China in March 2011 we had 100 stores. By December (2011) that has grown to 200, and in three years time we will hopefully have 700 stores. We really think the market is going and that we can go to those figures.

Most of our stores are in Europe and the US but this is going to change for sure in the next 10 years. The retail trends are telling us that Asia is going to be the big field where retail players are really going to play hard. If we look at GDP growth we can see that China is still growing compared to other economies like the US or Europe, which are facing some troubles. We can see that China and other companies inside the Asia Pacific are keeping quite safe compared to what is happening in other parts of the world.

Globally, no one knows what is going to happen, but Asia is still growing, so a lot of retailers are forced to come to Asia.”

“FOR THE whole of 2011 we have been facing two major crises globally; the American and the European debt situations.

The American debt situation is more or less settled, not solved, but we know how to go forward. But the European is still a major concern to developers because it will affect us. We think the interest rate will remain relatively low in the next few years, so good news for developers, our cost of funding will be very low. But the economy overall will also be very slow — and even our office development will be much lower than what we had expected earlier. China is not a 100% free economy — the government has all these cooling measures, but I think that is the right thing to do because property prices in China have risen by three or four times in a five-year period.

That is too much for the economy. For growth I still look at China, and on the commercial side. There’s a huge demand for office space, especially Grade A. Before the Beijing Olympics, everybody was about ‘wow, you have so many office buildings in Beijing, what are you going to do with them after the Olympics?’ But within a very short period of time, most of the vacant office space was taken up. Now there is a shortage; it’s a similar story in Shanghai, before and after the Expo. If I were to invest and develop in China I’d look for Grade A office space and with the growing economy, retail — shopping malls — would also be a good choice.”

10 I

review magazine I February 2012 I www.mipimasia.com

i intervieWs Philip Wong

Ben Simpfendorfer

Francois Ortalo-Magne

Executive director, Shui On Land

Managing director, Silk Road Associates

Dean of the Wisconsin School of Business

“IF A company has any strong relationship or tie with a European entity on financing, they of course will be very cautious. So for Asian players a strong relationship with Europe would be very prudent on future strategies. But with the unknown, the uncertainty around the financial market, the debt crisis in Europe, we don’t overcommit. We engage in more short term projects rather than overcommit on payment to be made in the next 12 to 24 months.

I think in the current market, especially in China, there is still a lot of room to do more in sustainable development. In terms of hardware, a proper ecosystem, and then in order to make the community self-sustain, low carbon emissions, in terms of the software — I think a lot still has to be done. The innovation is the 12th fiveyear plan for China, but also with technologies, because we are transforming from export-driven to domestic consumption-driven and knowledge- and innovation-driven sectors. So a knowledge- and innovation-driven economy is something that China is placing a lot of focus on. Property players, in this respect, can benefit if they do it properly. For example, in China we still do not have communities that can house or cater for the high-end talent; that put all the live, work play and learn together, in the way that Silicon Valley has done. We need to develop a sustainable eco-system in order to integrate the live, work, play and learn in the same community.”

“CERTAINLY there is reason for concern, but at the same time, this is a region with high savings rates, it’s benefiting from policy easing — in the rest of the world we are seeing capital come into this part of the world to capture high growth rates and so that seems to be sustaining property prices. That said, the region won’t escape another global recessions, so we do see risks of a correction, but not a serious correction; the fundamentals are strong. Urbanisation is the major trend; we’re seeing a huge influx of people into cities — it was traditionally China, but we’re now seeing that spread to countries such as India, Indonesia, Pakistan, so really it is about construction of new residential apartments, particularly public housing, but also the infrastructure that supports larger cities, from schools, to subways, to sewers.

China accounts for almost half the region’s total economy, so plays a major role as a growth engine. I think China faces some challenges, in the next five years, particularly related to inflation, and the imbalances that have developed, but nonetheless, growth, even if it slows, will remain above the 5% level and over the 10-year horizon it could or should return to about 8%. Sustainable development is crucial. What is clear is that while urbanisation will be a powerful trend we cannot repeat the same types of urbanisation that we have seen over the last 50 years.”

“THIS year, with tremendous turmoil happening in Europe and the US I haven’t heard anyone mention the issue. The first year I came here to MIPIM Asia we were all concerned about whether the US recession would take the local market down — it is not even part of the conversation. At the same time you hear the importance of China; now everybody is looking to China as the engine of growth for the region.

“It’s a question of what kind of capital flow do we expect to see in this region — there has been a lot of flow from the rest of the world into the region, because of a strong expectation of growth even though in the last few months there has been a comedown in some of the regional markets. Australia and New Zealand in particular have attracted a lot of capital. But these are still small markets. There is a lot of enthusiasm for secondary cities in China but I think a lesson I learned here this year is the enthusiasm for the discerning investor.

There is a lot of heterogeneity in the perspective for growth across the secondary markets in China. And even the secondary cities in China are such big local economies.”

www.mipimasia.com I review magazine I February 2012 I 11

VIEWpoint CARRIE LAM

Lam steers Hong Kong to sustainable expansion Carrie Lam, development secretary of the Hong Kong government, is pushing the city to keep competitive, embracing a new CBD in Kowloon and greater energy efficiencies. By David Taylor

H

ONG KONG is gearing up for a sustainable future, with a new CBD in Kowloon and other measures which seek to capitalise on its land resources.

That is according to Carrie Lam, Hong Kong development secretary, who officially opened MIPIM Asia 2011 and answered a series of questions in the show’s Property Influencers video slot.

“How we could, on the one hand, continue to propel Hong Kong’s continued development while paying sufficient attention to sustainability is, I think, crucial to Hong Kong’s continued success,” said Lam. So the government is paying particular regard to the energy efficiency of its existing buildings, especially since they use 90% of the electricity used in the region. Statutory land use planning with imposed parameters on

Driving the news agenda – Carrie Lam 12 I

review magazine I February 2012 I www.mipimasia.com

items like plot ratios, building heights and densities are being conducted, especially on land close to the harbour front. The government is also looking at air ventilation assessments, is devising an urban climatic map and has set up the Hong Kong Green Building Council, which requires all new buildings to go through its assessments, but offers developers incentives to incorporate green features.

Although the city has developed only 24% of its land, it is looking to build up a land bank including through land reclamation outside of Victoria Harbour and through cavern development — putting public facilities in them to free up other land. But Kowloon East is aimed at providing quality office space beyond “very expensive” Central. “We wanted to create another CBD for Hong Kong and we have chosen Kowloon East,” said Lam. Situated on the eastern part of the Kowloon peninsula, Kowloon East is made up of three parts — the Kai Tak development of the old airport; and two former industrial areas — Kwun Tong and Kowloon Bay. Together these form around 500 hectares of land, with around 1.4 million sq m of Grade A office supply already on the sites but which have not been patronised as they should have been because of the “uninteresting vicinity” and inadequate connectivity. “So we call this initiative energising Kowloon East because it is up to government to adopt a more visionary and integrated approach and try to inject some energy into this area.” Ultimately, said Lam, this area will be another CBD for Hong Kong, providing over 5 million sq m of office space. The area will be able to draw the benefits of a sea water cooling system and a proposed HK$12bn monorail system. “Governments should invest in infrastructure which brings wider benefits. We believe the monorail has this crucial role to improve the internal connectivity between the two former industrial areas and Kwun Tong. From that perspective, this investment is very worthwhile because by investing in it we help to revitalise the area and if we can collect the premium from the land this will more than offset the investment on the monorail.”

Lam is a big supporter of MIPIM Asia, having been to the show consecutively for four years. “I find this major property event very interesting and very relevant to Hong Kong,” she said, partially because of the economic impact of the city staging such shows. But also to keep abreast of what other cities are doing in the name of sustainable development and keep up with global competition. “I find it very inspiring,” she added.

i VIEWpoint TAKUYA ISHIKAWA

Japan’s real estate sector fights back In his keynote address at MIPIM Asia, Takuya Ishikawa told delegates of the measures the Japanese government is employing to help regeneration in the wake of the tsunami. By Christopher Dillon

J

APAN is laying the foundations for a revitalised com- 1981,” said Mr Ishikawa. A post-quake survey by Tokyo-based Mori mercial real estate market after the March 11 earth- Building Co showed that seismic resistance was now the top priority quake and tsunami. That was the message from Takuya for corporate tenants, surpassing preferences for lower rents or better locations. This conclusion was reinforced by a Ishikawa, director of the real estate Nikkei Real Estate Market Report survey of inmarket division of Japan’s Ministry stitutional investors and asset managers that inof Land, Infrastructure, Transport and Tourism, “Higher rents are dicated an increasing emphasis on earthquake rein a keynote address at MIPIM Asia. sistance, coupled with a continued commitment In addition to two supplementary government welcome if to Japan. Eighty percent of respondents said they budgets totalling ¥6 trillion and a third budget buildings are were maintaining or expanding their investment that would make an additional ¥12 trillion in requake-resistant” in Japanese real estate. construction money available, the Japanese gov“Higher rents are welcome if buildings are quakeernment is introducing legislative reforms that will resistant,” said Mr Ishikawa, who observed that simultaneously promote the development of the this posed a challenge for owners of older buildJ-REIT (Japanese Real Estate Investment Trust) ings, many of whom were reluctant to lose tenants during a renovation market and increase the earthquake resistance of older buildings.

“Just over 35% of the office buildings in Tokyo were completed be- or add debt to their balance sheets. He added that older buildings are fore tighter earthquake resistance standards were introduced in often located near train stations and business centres, making them excellent candidates for renovation.

To facilitate the rehabilitation process, the government is undertaking a series of legislative reforms. This includes proposed amendments to the Real Estate Partnership Investment Law that would eliminate the need for recognised developers to obtain a licence to establish a securitisation vehicle and allow those vehicles to acquire real estate, in addition to the trust beneficiary rights they can now own.

The amendments would let owners sell their older buildings to a securitisation vehicle, which would work with investors and licensed developers to renovate the property. The vehicle could then sell the renovated building to a J-REIT. The industry has also benefited from a June 2011 change to Japan’s tax laws that allowed J-REITs to increase the proportion of public offerings that is sold to overseas investors. Furthermore, consultations with the National Tax Agency are now under way that could permit capital gains from the disposal of property to be retained and used to finance new acquisitions. Additional reforms are anticipated, including a review of the Investment Trust Law that is scheduled for 2013.

By allowing J-REITS to own renovated property, the government hopes to encourage the growth of Japan’s REIT market, which is currently the world’s fourth largest after the US, Australia and France.

Isikawa is confident that the measures will work. “If I wasn’t a bureaucrat, I’d buy lots of J-REITs to supplement my pension,” he quipped.

Rebuilding – Takuya Ishikawa www.mipimasia.com I review magazine I February 2012 I 13

invision MIPIM Asia 2011 captured the spirit of the region’s vibrant real estate sector.

The pictures on this and following pages present a flavour of the show and the people who made it happen

Back with a bang

A dancing dragon at the show’s opening ceremony

16 I

review magazine I February 2012 I www.mipimasia.com

Professor Yiping Huang, Professor of Economics at the China Center for Economic Research, Peking University and keynote speaker with Robert Ciemniak, Global Head of Real Estate Markets Thomson Reuters

The MIPIM Asia awards jury

Justin Chiu, Excecutive Director, Cheung Kong (Holdings) Ltd, and Goodwin Gaw. Chairman and Managing Principal, GAW Capital, Hong Kong SAR

Justin Chiu, Excecutive Director, Cheung Kong (Holdings) Ltd,

Conference-goers enjoying the show

The awards voting wall

www.mipimasia.com I review magazine I February 2012 I 17

i invision

Carrie Lam Secretary of Development of the HKSAR Government kicks off proceedings

French Urban Affairs Minister Maurice Leroy

Delegates discuss the big issues

18 I

review magazine I February 2012 I www.mipimasia.com

RETAIL IS ON THE RISE AT MAPIC MAPIC 2011 figures 8,035 participants (+8%) 2,300 retailers (+11%) 680 exhibiting companies (+6%) Discover who came at MAPIC 2011

www.mapic.com

MAPIC is a registered trademark of Reed Midem - All rights reserved. MA2010-001 / © Warmgrey

THE INTERNATIONAL MARKET FOR RETAIL REAL ESTATE - 18TH EDITION MAPIC brings together global retail and real estate leaders to forge partnerships, close deals, connect all year-round and stay on top of trends and innovation.

Contact us Paris (global headquarters): tel: +33(0)1 41 90 45 15 London: tel: +44(0)20 7528 0086 New York: tel: +1(212)284 5141 To find our worldwide sales representatives, visit the contact us page at

www.mapic.com

let's talk shop

Palais des Festivals Cannes France 14-16 NOVEMBER 2012

MIPIM速 is a registered trademark of Reed MIDEM. All rights reserved.

6-7-8-9

MARCH

2 01 2

Cannes

Palais des Festivals w w w. m i p i m . c o m

Looking ahead.

Germany Country of Honour 2012 WE WOULD LIKE TO THANK OUR SUPPORTERS:

CONTACT: Claudia Roehl - +49 30-280 18 555 - mipim@runze-casper.de

Š Yuri Arcurs

City of Muni ch

i 2011awards And the Gold, Silver & Bronze winners are…

T

HE fifth annual MIPIM Asia Awards took place on November 16, 2011, in Hong Kong.

Once again, the must-attend event brought together top decision makers as well as real estate experts, and recognised the very best of the industry during a prestigious gala dinner.

Through the MIPIM Asia Awards, companies

22 I

were able to highlight their projects and be rewarded for their outstanding performance and achievement in the Asian property market.

The MIPIM Asia Awards Gala Dinner was an unforgettable night of celebration, live entertainment including a crystal ball show and one of the best networking opportunities of the year.

Congratulations to this year’s winners!

review magazine I February 2012 I www.mipimasia.com

Mipim Asia Awards Official International Media Sponsor:

In Partnership with:

i 2011awards The Jury PRESIDENT OF THE JURY Dr. Seek Ngee Huat Board Director, Government of Singapore Investment Corporation (GIC)

Participants’ choice Award

Best business centres

Margaret Brooke CEO, Professional Property Services Group & Chair, Heritage Hong Kong

Andrew Chang Chairman Hong Kong Green Building Council

Stanley Ching Managing Director & Head of Real Estate Group, Citic Capital

Jaques Ferrier Architect and urban planner Jacques Ferrier Architectures

MARINA BAY FINANCIAL CENTRE Singapore Raffles Quay Asset Management Pte Ltd

Developers: Cheung Kong (Holdings), Hong Kong Land, Keppel Land Limited Architect: Kohn Pederson Fox Associates

INTERNATIONAL COMMERCE CENTRE Hong Kong Kohn Pedersen Fox Associates

Goodwin Gaw Chairman & Managing Principal Gaw Capital

Developer: Sun Hung Kai Properties Architect: Wong & Ouyang (HK) Ltd.

William Ko Executive Director Hang Lung Group

Charles Lam Managing Director - Real Estate, Baring Private Equity Asia

Dominic Lam President The Hong Kong Institute of Architects

Cheng Soon Lau Managing Director Invesco Real Estate Hong Kong

John Lim Group CEO ARA Asset Management

Elizabeth Loh Head of Asia Generali Immobiliare

Nicholas J.Loup Chief Executive Grosvenor Asia Pacific

Anatoliy I. Melnik Chief Architect, Vladivostok City Administration

Mike Moir Director of Property Hong Kong Jockey Club

Jimmy Phua Managing Director & Head of Real Estate Investments Asia Canada Pension Plan Investment Board

During the first two days of MIPIM Asia, delegates had the opportunity to have a look at all the winning projects showcased at the Awards Gallery in the Business lounge, and cast their votes for their favourite project in each of the 10 categories to determine the ranking of the projects.

The project Marina Bay Financial Centre in Singapore received the most votes among all and is therefore the winner of the Participants’ Choice Award.

SHANGHAI HUAWEI TECHNOLOGIES CORPORATE CAMPUS Shanghai, China Skidmore, Owings & Merrill LLP

Developer: Huawei Technologies Co., Ltd.

Richard Price CEO, ING Real Estate Investment Management

Daan Van Aert Head of Strategic Real Estate Asia APG Asset Management Asia

Nicholas Wong Principal The Townsend Group

Richard Yue Chief Executive Officer & Chief Investment Officer ARCH Capital Management Co. Ltd.

SHANGHAI WHEELOCK SQUARE Shanghai, China Kohn Pedersen Fox Associates

Developer: Wharf Holdings Architect: Leigh + Orange

www.mipimasia.com I review magazine I February 2012 I 23

i 2011awards Best green buildings

Best hotels and tourism resorts

Best mixed-use buildings MARINA BAY FINANCIAL CENTRE Singapore Raffles Quay Asset Management Pte Ltd

Developers: Cheung Kong (Holdings), Hong Kong Land, Keppel Land Limited Architect: Kohn Pederson Fox Associates

SUZLON ONE EARTH Pune, India Synefra E&C Ltd

Developer: Vascon Engineers Architect: Christopher Charles Benninger Architects Pvt. Ltd

HOTEL INDIGO SHANGHAI ON THE BUND Shanghai, China Shanghai Huangpu River Banks Asset Management Co. Ltd

Architect: Shanghai Construction (Group) General Co.

SHANGHAI INTERNATIONAL CRUISE TERMINAL KHOO TECK PUAT HOSPITAL Singapore CPG Consultants in collaboration with RMJM

XINTIANDI HOTELS Shanghai, China Kohn Pedersen Fox Associates

Developer: Shui On Land Ltd Architect: Leigh + Orange Limited

UNITED WORLD COLLEGE OF SOUTH EAST ASIA (EAST CAMPUS) Singapore JTC Corporation

Architect: P&T Consultants Pte Ltd

24 I

Shanghai, China Sparch

Developer: Shanghai Port International Cruise Terminal Development Co., Ltd Local Architect: Shanghai Institute of Architecture Design Research (SIADR)

NOVENA LIFESTYLE & MEDICAL HUB MAIKHAO DREAM VILLA RESORT & SPA Phuket, Thailand DWP

review magazine I February 2012 I www.mipimasia.com

Singapore Far East Organization

Developers: Transurban Properties Pte Ltd and Novena Point Pte Ltd Architect: DP Architects Pte Ltd

i 2011awards Best residential developments

Best urban regeneration projects

Best retail store design MIELE HOUSE Shanghai, China KokaiStudios

Developer: Miele & Co. (China)

BELLE VUE RESIDENCES Singapore Wing Tai Land Pte Ltd (on behalf of Winquest Investment Pte Ltd)

Architect: P&T Consultants Pte Ltd Design Architect: Toyo Ito & Associates, Architects

THE SHILIUPU (PIER 16 REGENERATION PROJECT) Shanghai, China Shanghai Huangpu River Banks Asset Management Co. Ltd

SHANGHAI MUSEUM OF GLASS Shanghai, China Logon urban architecture design

Developer: Shanghai Glass Co., Ltd.

CANDYLICIOUS

SAIGON SOUTH MASTER PLAN

Shanghai, China Singapore

Ho Chi Minh City, Vietnam Skidmore, Owings & Merrill LLP

Gill Capital (Singapore) Pte, Ltd

Developer: Phu My Hung Corporation Architects: Skidmore, Owings and Merrill LLP, Korn Architects, SPCC, NQH Architects, KYTA, RTA Associates, SURV

HELIOS RESIDENCES Singapore Wing Tai Land Pte Ltd (on behalf of Winnervest Investment Pte Ltd) Architect: P&T Consultants Pte ltd Associate Architect: Guida Moseley Brown Architects

THE BRIDGE 8 Shanghai, China Shanghai Bridge 8 Property Co. Ltd

Architect: Kenji Mantani

www.mipimasia.com I review magazine I February 2012 I 25

i 2011awards Best futura projects

Best chinese futura projects

INTERCONTINENTAL SHIMAO WONDERLAND HOTEL

CX 2-1

NORTHERN CAUCASUS RESORTS, THE WORLD’S LARGEST TOURISM PROJECT

Shanghai, China Atkins

Singapore Aedas Limited

Developer: Lucas Real Estate Architect: Andrew Bromberg of Aedas

Developer: Shanghai Shimao Wonderland Property Co. Ltd. Architect: Atkins Consultants (Shenzhen) Co Ltd Shanghai Branch

North Caucasus, Russia OJSC Northern Caucasus Resorts

ABU DHABI INTERNATIONAL AIRPORT MIDFIELD COMPLEX

CLEANTECH PARK Singapore JTC Corporation

Abu Dhabi, United Arab Emirates Kohn Pedersen Fox Associates

HONG CHENG PLAZA

Developer: SCADIA – Supervision Committee for the Expansion of Abu Dhabi International Airport

Guangzhou, China Benoy

INCHEON INTERNATIONAL AIRPORT PASSENGER TERMINAL 2

Developer: Sun Hung Kai Properties

Incheon, South Korea Heerim Architects & Planners

Developer: Incheon International Airport Corporation Architects: Gensler, Mooyoung Architects & Engineers

26 I

Best central & western Asia futura projects

review magazine I February 2012 I www.mipimasia.com

OLYMPIA 66 Dalian, China Aedas Limited

BAKU WHITE CITY Baku, Azerbaijan ADEC Azerbaijan Development Company

Architects: Atkins, Foster&Partners, F+A Architects

MIPIM Asia continues ntinues online With the MIPIM Asia online stay in touc database, you can stay touchh tacts you made with the contacts maarket and boost during the market your business ess all year long. long.

Conduct nduct business bu onduct long after he market closes the C Continue network ontinue to netw ork with hundreds keyy industry pla players hundreds of of ke yers Promote Promote your company company and yourself with personalised personalised proďŹ les proďŹ les yourself Showcase and discover discover rreal eal projects estate projects

www.mipimasia.com www .mipimasia.com

Where the

world's property leaders converge in Asia PaciďŹ c Engage with future partners and make deals happen

Last year MIPIM ASIA was the meeting point for: 1,915 Participants +11% vs 2010 350 Investors, End-Users and Hotel Groups 115 Exhibiting companies 100 Retailers

This y year, earr, MIPIM Asia brings brings you you 3 events events in 1: In Investment vestment Summit

Julien Julien Sausset MIPIM Asia Asia Sales Dir Director ector julien.sausset@reedmidem.com julien.sausset@r eedmidem.com

Exhibition Area Ar ea

Retail Retail Summit

7- 8 - 9 November November 2012 Hong K Kong ong Convention Convention & Exhibition Centre Centre Hong K Kong ong - SAR

Chr Christine istine Lam R Regional egional Dir Director ector of Sales cchristine.lam@reedmidem.com hristine.lam@reedmidem.com

www.mipimasia.com www w..mipimasi .m a.com