Mipim 2014 news 1

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DAY

Tuesday 11 March 2014

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KEYNOTE SPEECH

London Mayor, Boris Johnson, will give a keynote speech today P.4

PROJECTS

San Francisco’s Transbay Tower P.48

JAPANESE UPTURN

Motoi Sasaki, vice-minister for land, infrastructure, transport and tourism, on investing in Japan P.8

www.mipim.com

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CONTENTS

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NEWS 12 Delivering the WTC message

32 Shanghai harnessing the power of urban chaos

53 Lyon showcases station of the future

BRAZIL Special report inside Retail: II the star of the show Office: riding the storm

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Residential: VI rents take a breather

FEATURES 65 MIPIM 25 Viewpoint: Damian Wild 68 MIPIM Awards: past winner King’s Cross is just the ticket 73 Emerging hotspots Back to the future

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M EET key contacts and discover the latest facts about the fastpaced Russian market at the MIPIM Russian Breakfast, which will take place on Wednesday, March 12.

This year’s is the 20th edition of this ever popular, invitation-only event which will be held between 8.30 and 11.30 at the Majestic hotel’s Salon Croisette.

Logistics and warehousing: future jam

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The MIPIM News team is located in the Palais des Festivals / Level 5 The official MIPIM daily newspaper Tuesday 11 March 2014

Director of Publications Paul Zilk Director of Communication Mike Williams EDITORIAL DEPARTMENT Editor in Chief Graham Parker News Editor Doug Morrison Reporters Ben Cooper, Mark Faithfull, Steve McCormack, Mark Moore, Liz Morrell, Paul Strohm Sub Editors Clive Bull, Julian Newby, Joanna Stephens Proof Reader Debbie Lincoln Technical Editor in Chief Herve Traisnel Deputy Technical Editor in Chief Frederic Beauseigneur Graphic Designers Muriel Betrancourt, Veronique Duthille, Carole Peres Head of Photographers Yann Coatsaliou / 360 Media Photographers Christian Alminana, Olivier Houeix, Michel Johner, Yohann Mortier Editorial Management Boutique Editions.

PRODUCTION DEPARTMENT Publishing Director Martin Screpel Publishing Manager Amrane Lamiri Publishing Co-ordinators Nour Ezzedeen, Emilie Lambert Production Assistant, Cannes Office Eric Laurent Printer Riccobono Imprimeurs, Le Muy (France).

Reed MIDEM, a joint stock company (SAS), with a capital of €310.000, 662 003 557 R.C.S. NANTERRE, having offices located at 27-33 Quai Alphonse Le Gallo - 92100 BOULOGNE-BILLANCOURT (FRANCE), VAT number FR91 662 003 557.

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NEWS CBIC OFFERS A SNAPSHOT FROM BRAZIL REPRESENTING the Brazilian construction and real estate sector at this year’s market, the Brazilian Chamber of the Construction Industry (Camara Brasileira da Industria da Construcao — CBIC) is providing delegates with a unique overview of its activities at a national and international level.

The organisation has 72 members distributed throughout Brazil, representing a variety of sectors including infrastructure, construction and real estate development, in addition to specialised construction services.

Its wide presence in all five of Brazil’s major regions provides insight into what’s occurring around the country, enabling it to work in a structured way for social and economic development.

A long-standing focus has been the integration of the supply chain. This initiative has enabled it to support the development of projects by the public sector with a direct and indirect benefit on the lives of all Brazilians, particularly in the area of social interest housing.

Its efforts have also led to the growing regulation of construction firms and workers, with the number of registered workers rising from 1.3 million in 2003 to 3.3 million in 2013.

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Mayor Boris to raise London housing issues in keynote

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ONDON mayor Boris Johnson will turn the spotlight on the housing sector in a MIPIM keynote address today, as he looks to harness global capital to speed up the rate of delivery of new homes to house London’s burgeoning population. He will be speaking in the Grand Auditorium at 14.00.

“We have to make the most of London’s international desirability,” he told MIPIM News in an exclusive interview. “Property in London is an asset that’s globally desired and we have to ensure that delivers homes for Londoners.”

The resurgent London economy is attracting people from across the UK and beyond, but Johnson took pains to counter suggestions that the city was bursting at the

seams. “We have huge numbers of brownfield sites that we can develop and with sensible planning we can accommodate a lot more people,” he said. “Obviously that’s not infinite and in the long term we are going to have to look at development to the east, beyond London’s borders.”

And he made no apologies for returning to the big stage at Cannes. “MIPIM is very important for my business,” he said. “I have to talk to the people who are engaged in addressing the biggest problem facing my constituents and MIPIM is a great occasion for people who are trying to solve our housing crisis to get together.

It’s an occasion for policy makers to talk to the industry and see what can be done.”

London mayor Boris Johnson

Work starts on Luxembourg’s Gate CONSTRUCTION is under way on the City Gate office scheme close to Luxembourg Airport.

The building, which is due for completion in June 2016, will deliver 13,406 sq m of new office space over eight floors.

City Gate developer Besix RED is working with ASSAR Architects which is at MIPIM this year showcasing the development.

It will boast large open spaces designed to suit modern office tenant requirements, with up to

The City Gate office development outside Luxembourg City

1,870 sq m of space available on each floor and minimum ceiling heights of 2.7 m throughout. The building’s main entrance, made up of a two-level glass lobby, will face onto the Route de Treves to the north east of the capital, Luxembourg City.

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3 PM PROJECT PRESENTATION: WHY INVEST IN TUSCANY?

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CONTACT PERSON AT MIPIM: SILVIA POLEDRINI +39 335 6210557 - COMMUNICATION@INVESTINTUSCANY.COM Invest in Tuscany - Regione Toscana - Directorate General for Presidency - Regional policies for attracting inward investments Piazza Duomo, 10 - 50122 Florence - Italy - T +39 055 4384859 / +39 055 4382425 - F +39 055 4384135 - info@investintuscany.com - www.investintuscany.com

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NEWS TALL STORY FOR KAZAKHSTAN HKR ARCHITECTS has been appointed by Aldar Developments to act as lead design consultant for the large 500,000 sq m mixed-use Abu Dhabi Plaza project in Astana, the new capital of the Republic of Kazakhstan.

The project has a retail centre, apartments and a 300-bedroom hotel.

The Abu Dhabi Plaza is planned as an integrated mixed-use development comprising retail, offices, residential and hotel buildings.

It will have an identity and sense-of-place achieved through a series of slender towers that will act as new urban markers for the city of Astana.

The project will also incorporate the tallest tower in the CIS.

New transport hub set to drive Nice into the future

The Grand Arenas zone will benefit from Nice airport’s multimodal transport hub

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ONSTRUCTION work has begun on a huge project on the Cote d’Azur that will create a new transport hub as part of a wider development plan for the region.

Ground was broken last summer on the Nice airport multimodal transport hub, a fundamental element of the project that will link the existing airport with regional trains, the Nice tramway system, bus networks, roads and the future Provence-Alpes-Coted’Azur railway line.

The 680,000 sq m hub will also bring significant retail, residential and office space, as well as hotels and catering to fit in with a wider masterplan for the city.

A major landmark in the overall project came last August with the founding of two mixed development zones — the Grand Arenas and the Nice Meridia — to pave the way for a wave of

fresh construction projects in and around Nice.

The Grand Arenas zone will include the city’s future international business district and a proposed exhibition centre. Together, the zones are part of the wider Eco Vallee masterplan, being delivered by urban development agency L’EPA Plaine Du Var. The agency is out in force at MIPIM to showcase the many opportunities that the masterplan offers to international investors. It is highlighting the wide range of elements to the scheme, which also includes the Nice Meridia urban technopolis, which will eventually house R&D facilities, and the university of Nice ‘eco-campus’.

The various developments will be linked by a wave of new transport infrastructure, including a west-east tram line, which will reduce the journey time between the port and the airport to just 26 minutes.

Alternative assets spark debate

The Abu Dhabi Plaza in Kazakhstan capital Astana

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THE CHANGING demographics boosting the performance of alternative real estate assets will be discussed at a round table lunch hosted by Addleshaw Goddard on Thursday.

Travelodge’s Tony O’Brien, Global Student Accommodation Group’s Tim Mitchell Fulcrum’s Richard Ashcroft and CBRE’s Chris Lacey will introduce the opportunities around the private rented residential sector, student accommodation, healthcare and assisted living, and hotels.

“While all of these sectors are well established, the difference now is the compelling

demographic drivers that are making these areas very attractive investment opportunities and also the increase in the sophistication and therefore institutional appeal of the sectors,” said Lee Sheldon, a partner in Addleshaw Goodard’s investment funds and structured real estate group.

He added: “We hope our event will stimulate some interesting debate, explain the dynamics of each sector and showcase the opportunities around assets that answer modern-day accommodation challenges, and offer stable income and long lease potential.”

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06.03.2014 14:31:49

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NEWS YOUR CHANCE TO CHALLENGE CARLSEN MIPIM delegates face a challenge from the Oslo Metropolitan Area — ‘Visit our stand and see if you can beat reigning world chess champion, Magnus Carlsen!’ Brave contenders will qualify to play against the world number one and six finalists will face him in speed chess on Wednesday at 15.00. Why not give it a try?

CITY OF MARICA CONFERENCE VENUE CHANGE THE CITY of Marica’s conference session on The New Hotspot For Investors In Brazil will now take place in Auditorium K on Wednesday, March 12, at 17.00.

Strong Japanese delegation reflects economic upturn Motoi Sasaki

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ISITING MIPIM for the first time, Motoi Sasaki, the Japanese vice-minister for land, infrastructure, transport and tourism, voiced his belief in the importance of the market in attracting investment to Japan.

“It is an honour to be here to celebrate 25 years of MIPIM,” he

said. “It is a fantastic event that gathers real estate professionals from around the world, including both public and private sector organisations. This makes it a valuable occasion for Japan.”

As part of a policy to raise its international profile, this year’s Japanese presence in Cannes comprises a range of organisa-

tions presenting 120 projects, with a record 130 delegates.

The country has enjoyed better economic indicators over recent years and seen a resurgence in commercial activity. Boosted by a national strategy to revitalise the economy plus the huge investment ahead of the 2020 Olympic and Paralympic Games, Sasaki believes Japan will remain an increasingly attractive investment destination.

As an example, he pointed out that plans for a 500 kph supertrain will bring a population of 60 million within one hour of central Tokyo, cementing its position as one of the world’s major commercial centres and increasing its attractiveness at an international level.

On a more sombre note, Sasaki said that, while MIPIM was celebrating the start of its 25th market, by coincidence today is also a sad day in Japan as the country remembers the devastating earthquake and tsunami which struck just three years ago.

UNIBAIL Rodamco has refinanced the Galeria Mokotow shopping centre in Warsaw with a €200m term loan from German banks Berlin Hyp and Helaba.

The two banks are acting as co-arrangers and lenders for the whole loan amount while Berlin Hyp was agent for the facility.

The 66,800-sq m Galeria Mokotow is located in the heart of Warsaw’s Mokotow business district. Completed in 2000, the shopping centre has been extended several times, most recently in 2013.

The centre comprises 260 shop units and its tenants include brands such as Zara, H&M and Peek & Cloppenburg as well as a Cinema City multiplex cinema.

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Galeria Mokotow, Warsaw: Refinanced for €200m

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NEWS RESIDENTIAL RISE PREDICTED AFTER GERMAN SURVEY RESIDENTIAL property in Germany continued to attract significant investment last year, with transaction volumes increasing by 29% compared with 2012’s figure.

The findings are part of a survey by BNP Paribas Real Estate which reveals that €14.72bn worth of transactions were made in 2013.

The report says that the high volumes of transactions were driven partly by a number of major deals of sizeable residential properties, defined as having 30 or more units.

BNP Paribas Real Estate Germany managing director Andreas Volker said: “Only in 2005 and 2007 were higher figures recorded. An extremely strong contribution to this out-of-the-ordinary result was generated by large deals of over €100m.”

The majority of the activity last year came from within Germany, with nearly 82% of all investors being domestic.

Around €2.7bn worth of residential transactions were completed by foreign investors, 5% of which were from the US.

Klovern signs agreement for Stockholm’s Globen scheme

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N Sweden’s largest transaction so far this year one of the country’s biggest property companies, Klovern, has bought the Globen City scheme from The Carlyle Group for SKr3.8bn (€429m).

Klovern signed an agreement on the eve of MIPIM with The Carlyle Group to acquire the asset in Solna, north of Stockholm city centre. It includes buildings known as Startboxen 3 and Arenan 2, 3, 6 and 8, with 140,000 sq m of mainly office space.

Klovern said the deal substantially increases its exposure to the Stockholm region which now accounts for about 50% of the value of the company’s property holdings.

The acquisition is subject to approval by the Swedish Competition Authority and the transfer is set to complete in April.

Catella advised The Carlyle Group in the transaction. “We noted broad interest from both Swedish and international investors during the sale process, which demonstrates the attrac-

Klovern CEO Rutger Arnhult

tiveness of Stockholm and the Globen area,” Catella’s Thomas Persson, who project managed the transaction, said.

“The acquisition strengthens Klovern’s position in the Stockholm area substantially,” Klovern CEO Rutger Arnhult said.

“Klovern is increasingly turning into a company focused on Stockholm combined with a presence in a number of strong regional cities. We believe strongly in the emerging Soderstaden as an attractive place to work with good communications.”

London apartments drive City Marque’s expansion SERVICED apartment group City Marque is on an expansion plan that will see it grow more than five fold by the end of 2016, as well as seeking investment to secure its own portfolio of owned properties across the UK capital.

“We are looking to raise a fund and start buying the portfolio which gives us more control. In the immediate term we would look to buy existing blocks with a view for development, but longer term in 18 months to two years we would look at purpose-built entire blocks,” Derek Gallimore, City Marque managing director, said.

The company will be talking to

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investors and developers about its plans at MIPIM this week.

City Marque, which is attending MIPIM for the first time, will have around 200 Central London properties on its books by Q2 2014 and is aiming for 1,000 by the end of 2016.

Its properties, for which it holds exclusive management contracts, are mainly based in the zone 1 area of London although it added some zone 2 properties at the end of last year.

Ian Daniels, business development director for City Marque, said that the company’s internationally-based support centre in

Derek Gallimore, managing director (left) and Ian Daniels, business development director (right) of serviced apartments group City Marque are on the hunt for investors this week

Manila in the Philippines, which allows for 24-hour support and data mining services meant that the location was the natural nextstop location for the City Marque brand. “We are looking to logically go into Manila in the next

12 to 18 months,” he said.

City Marque currently has customers from about 90 countries with a 70:30 bias between leisure and corporate customers. Gallimore said the company was aiming for a 50:50 balance in the future.

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NEWS PALMIRA PACT ANTICIPATES SPAIN’S REVIVAL ASSET manager Palmira Capital Partners, the Frankfurt-based industrial property specialist, is preparing for the revival of the market in Spain through a co-operation deal with Madrid’s Kefren Capital Real Estate (KCRE).

Palmira said the agreement is part of its plans to expand in Europe by working with country partners with strong local knowledge, networks and management.

Palmira’s Iberia operation will be domiciled at the KCRE office.

“The Spanish industrial property market is starting its comeback,” said Palmira partner Peter Schuijlenburg.

“We want to be ready when investment activities pick up in order to benefit from attractive deal opportunities for our investors.”

Palmira founder and managing partner Alexander Hoff said the move is an important step in the creation of Palmira’s pan-European industrial property platform and essential to its ability to “structure and raise new funds to target investments in European logistics properties”.

LIVERPOOL ROLLS OUT NEW IFB CONFERENCE A DINNER at the Radisson Blu hotel tonight will mark the launch of a new property event to be staged by UK Property Forums in Liverpool, as part of the International Festival for Business (IFB).

The conference will take place on July 1 and 2.

Ian Pollitt, property manager at sponsor The Peel Group, said: “We are passionate about the success of the region and keen to maximise the connections between businesses that the IFB will provide.”

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WTC in Cannes to deliver its message to global audience

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RRIVING in Cannes to pass on the message about the advantages of the World Trade Center (WTC) system, CEO Eric Dahl said MIPIM formed a vital cog in the business of spreading the news about WTCs to new members, developers and investors.

“We have been at every MIPIM from almost the beginning,” Dahl said. “We always bring a large contingent and what we look for is the ability to get our message across to a global audience. There’s a lot of interest in the brand, and it’s a good place to meet up with potential investors. In general terms, for tenants we tend to look for small and medium-sized clients.”

Dahl said the WTC network has been going and growing for 44 years and now stretches to over 300 WTCs round the world. “There are World Trade Centers in more than 100 countries,” he added.

Dahl reported “double digit growth” in WTCs in China, Asia and Latin America. But he also stressed that the establishment of a WTC can also benefit cities in the old world of urope and America”. He added: “A WTC can act as an anchor, a magnet for new business and a catalyst for growth and redevelopment. If a WTC is built in a run-down area of a city, it will attract significant new de elopment around it.”

The World Trade Centers Association is one of the few real estate organisations that has

WTC’s Eric Dahl: “a lot of interest in the brand”

a global brand, Dahl said: “Hotels and some of the big multinationals have a global identity, but it doesn’t happen with real estate. But if you’re a member of the WTC, you have a brand and identity, and a level of service and quality that is recognised all over the world.”

Best cinemas create destinations CINEMAS should not simply be bolted on as a leisure offer for shopping centres, said dcinex head of consulting John Sullivan. To be successful, the cinema specialist added,

Dcinex’s John Sullivan: cinemas aren’t “a cure-all”

they must create a sense of destination and complement the existing retail, and food and beverage mix.

“You still see plenty of examples of developers believing that cinemas are a cure-all, but that is not the right approach,” Sullivan said.

“Just like retail, the cinema market has polarised. For example, live-event screening has become very big business, accounting for up to 20%-25% of total revenues for some cinemas. As a developer, you need to consider how that will fit and how ou can support such offers.”

Dcinex works across Europe, but Sullivan said the business is increasingly being asked to consult in Eastern Europe, often to help smaller players to defend their business from rivals. In addition, he believes Asia will be a strong growth market.

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NEWS REAL ESTATE MARKET TURNS CORNER NEW RESEARCH from executive search firm Bohill Partners suggests that Europe’s commercial real estate market has turned a corner with an increasing number of deals leading to a surge in hiring and larger compensation packages across the sector.

The Bohill Partners Compensation Review 2014 showed that some investors with a greater appetite for development risk are showing more interest in candidates with construction experience, particularly in those who have managed full project cycles from site acquisition to leasing. The research also showed that the gap between asset manager and investor salaries is widening as investment professionals see compensation rise. However firms have moved away from the ‘percentage of capital raised’ model of compensation towards more traditional base and discretionary bonus packages.

Thomas Hughes, senior consultant at Bohill, said private equity funds and investment banks are after experienced professionals with proven track records to source and execute deals.

“Opportunistic investors are taking on large property exposure and we’re seeing very strong demand for senior people with the skills to manage and restructure non-performing loan portfolios. The top talent can demand big numbers and this has a knock-on effect across the market,” he said.

You can be among the first to see Toyota’s i-Road

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IPIM delegates are being offered the chance to witness an early appearance of the i-Road by Toyota, which will be launching this radical means of transport in partnership with the Grenoble Metropolitan Area in autumn 2014.

The i-Road is one outcome of Toyota’s views on the future of road transport. It is an electric three-wheeled vehicle with a two-passenger enclosed cabin.

Drive is from a pair of twokilowatt motors inside the front wheels powered by a lithiumion battery pack. Top speed is around 50 kph and the range is said to be up to 30 miles, with battery recharge in three hours.

The vehicle takes corners leaning over like a motorbike, a technology described as Toyota’s Active Lean technology,

Toyota’s i-Road concept vehicle on the Grenoble stand

The Toyota i-Road is part of Toyota’s Ha:mo (Harmonious Mobility) vehicle network project.

Ha:mo aims to make travel more energy efficient as well as quicker for users. Ha:mo is a network system combining private car and

public transportation efficiently, and it will make transportation more people- and communityfriendly.

The Toyota i-Road concept vehicle is presented on the Grenoble stand at 10.30 tomorrow.

Go-ahead for Belgian retail park FROYENNES Retail Park at the north-western entrance to Tournai, Belgium, has been given the go-ahead from local authorities.

Developed by Equilis and designed by Art & Build Architect, the project has been conceived as a new landmark for the entrance

to the city and as a catalyst for the regeneration of the whole ageing retail park zone. It will open in 2015 and further projects are expected to follow.

In order to achieve successful urban renewal, the Froyennes Retail Park is to be developed

in parallel with a landscaping development for the promenade along the nearby Escaut River.

The low-carbon imprint of the two-level, 9,000 sq m project has been bolstered by a roof designed to accommodate both parking and a series of photovoltaic cells.

ERRATUM HINES Hines is a co-investor in the Rose de Cherbourg project in Paris, and not as described on page 45 of the MIPIM Preview Gateway project: Froyennes Retail Park will rejuvenate the north-west entrance to Tournai

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Fortress Germany Asset Management: Professionalism, flexibility and transparency with the help of innovative software.

Strict legislation and regulations make it comparatively complex to do business in Germany. Fortress Investment Group has been successful there through early adoption and development of modern IT systems.

“Software is a key element to our success,” says the company’s head of operations and projects.

Fortress Investment Group manages a global portfolio valued at US$61.8 billion.

The company’s German subsidiary, Fortress Germany Asset Management, is responsible for managing a volume currently of 1.7 billion euros. This makes it a big player in Europe’s biggest market – where it’s not always easy for any business, especially a foreign one, to be successful. This is due to the fact that the

Yardi Voyager® from Yardi Systems can help to make that difference.”.

US Companies that want to do business in Europe - such as Fortress - have to deal with European legislation and regulations on top of each nation’s own legislation. Dietze expects fewer national rules and laws moving ahead.

From a German perspective this would be a positive development because it would harmonize Germany with European standards and open the German market even more to international investors. “With the switch to Sepa, for example, you see the aim to strive for a European-wide standard. Unfortunately, such standards still leave lots of room for national variants,” he said.

“By using Yardi software we are able to support our operations and be faster and more efficient than our competitors. This gives us a market advantage.”

Stefan Dietze

Head of Operations & Projects - Fortress Germany Asset Management

market was comparatively closed to foreign parties for a long time. Foreign business are required to adapt to various circumstances.

“Germany does offer plenty of opportunities, but it’s the most highly regulated country in the world; this certainly applies to the property market,” says Stefan Dietze, head of operations and projects at Fortress Germany. “A good example of how strict Germany’s regulations are is the way tenants are protected.” In Dietze’s experience, entrepreneurs who want to be active in the German market must develop a sensibility for these constraints. “A success factor on the German market is the ability to offer extra services which focus on specific regulatory aspects; professional software like

Investors operating in this environment, cannot rely on a generic software product for their accounting and reporting. “We use software geared toward specific requirements of the market or country concerned. This incorporates the latest European standards and complies with U.S. compliance standards,” Dietze said, adding that specialised software offerings, such as Yardi Voyager, are a key element to achieving success. “By using Yardi software we are able to support our operations and be faster and more efficient than our competitors. This gives us a market advantage.”

Now that it appears that the European market is recovering, Dietze dares to look ahead

and predict the requirements that property organisations must comply with to be successful over the next five years. “There will be a few global players that will offer a whole range of services, next to the specialised niche players.” Dietze mentions CBRE as an example of a global service organisation. “They can provide all the necessary services for investors who want to outsource their management and control activities.” For investors seeking an active role in managing their properties and portfolios, there will be room for firms that can operate with flexibility and as an example, specialise in facility services or asset management.

The business attitude of professionals and the vision of property organisations will become increasingly important. “There are four important aspects here,” says Dietze. “The first of them is integrity, both with regard to working as an investor and managing the assets in your portfolio.” Transparency is another important aspect. Stefan explains, “This will be enforced via legislation and regulations, but if you are working in the property market you’ll need an intrinsic ability to be transparent.” Noting that global markets are constantly in flux, Dietze mentions flexibility as the third element of success. “This applies to both individual property professionals and companies that are active in this market.” Lastly, he mentions that it is important to be passionate about what you are doing.

By organising business processes efficiently, workers will have room to develop the abovementioned qualities. “Fortress has organised our processes in a clear way, and we have carefully defined responsibilities. This means we have achieved maximum transparency and operational efficiency,” Dietze says. “We really benefit from the combination of our professional skillset and our use of modern real estate-focused ERP systems, such as Yardi Voyager.”

To learn more visit: www.yardi.co.uk - www.yardi.nl - www.yardi.de

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NEWS

Oxford Properties will target further European expansion

INNOVATION FORUM HIGHLIGHTS PBO’S LIBRARY PROJECT

ONE OF the key architects behind the first public building in France to have been awarded international LEED Platinum certification will address a session of the MIPIM Innovation Forum today.

Pascal Brunel-Orain, manager of PBO Architecture, will speak at the forum this afternoon, where he will present his thoughts and experiences from the media library project in Verneuil-sur-Seine to the north west of Paris. He will also be presenting a virtual visit of the building to the gathered audience, using an augmented reality flythrough video. The project which was completed in July last year after achieving 97% waste recovery during construction, was awarded the highest LEED certificate, the Platinum level, the first time a public building has ever been given the accolade. The public media library, which was officially opened in September, is filled with innovative sustainable features and has been built to encourage green use by the tenant. The library has also been fitted with sensors throughout to enable accurate monitoring of the building and its environmental performance.

R Sones

Pascal Brunel-Orain, manager of PBO Architecture

Royal Exchange: Oxford’s first UK deal

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AVING established a £2bn portfolio across Central London and the South East since its entry to the European market in 2008, Canadian investor Oxford Properties is now seeking further expansion into liquid European mar ets The compan mar ed fi e ears in Europe in 2013 with the development of its new strategic plan, which is targeting growth to C$10bn (€6.5bn) by 2018.

These totals would see Oxford’s European region accounting for 20% of the global busi-

Spire to be new Warsaw landmark THE WARSAW Spire and two adjacent buildings will form a new mixed-use complex between the Palace of Culture and Science and the Warsaw Rising Museum when they open in 2015.

Developed by Ghelamco and designed by Jaspers-Eyers Architects the 49-storey, 220 metre-high Warsaw Spire will act as a beacon for the new business district of Warsaw.

Accompanied by two 16-storey 58.5-met re m id-r ise bu i ld i ngs, t he overa l l 129,336 sq m project has been positioned to allow for the creation of a

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landscaped urban plaza, and the project’s 4,300 sq m of restaurants, cafes, retail and services areas are to become the focal point of urban life in the district.

The 81,607 sq m tower and the two 23,837 sq m and 23,892 sq m mid-rise buildings sit above a five-level underground garage comprising 1,235 parking spaces.

Warsaw Spire is at the heart of urban renewal in the Polish capital

ness, which will be a C$50bn global platform by 2018. “The resilience of the London market, the prudence of our investment approach and our access to OMERS equity has served us well in Europe to date,” managing director Richard Pilkington said. “The purchase of the historic Royal Exchange in the City of London at the end of 0 was our first fora into UK retail, and it won’t be the last; alongside European expansion and direct development, sector di ersification is another e component of our growth plan.”

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NEWS TRANSACTIONS ARE UP FOR AXA AXA REAL Estate Investment Managers set records in 2013, increasing transaction volumes 26% to €9.2bn, raising €6.5bn of capital and expanding its real estate debt platform to €7.9bn.

The transaction total comprised acquisitions of €3.1bn (2012: €2.9bn) and disposals of €3.2bn (2012: €2.1bn).

During the year AXA Real Estate also implemented its value-add investment strategy and increased total assets under management to €47.7bn (2012: €45.3bn).

Of the €6.5bn of new capital raised from over 30 institutional and sovereign wealth fund clients, half originated in Europe with the rest from Canada, the US, Asia and Middle East.

AXA Real Estate said in a statement that since it became the first non-banking lender to enter the European real estate debt market in 2005, it has expanded its real estate debt programme to €7.9bn and increased investment capacity to €600m per loan.

Loan transaction volume increased to €2.9bn in 2013 (2012: €2.3bn).

The debt platform serves 40 insurance company, pension fund and sovereign wealth fund clients.

Russian commercial market attracting record investment

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NVESTORS spent $8.2bn (€5.9bn) on Russian Real Estate in 2013 according to property consultant Colliers, making three years of record investment volumes.

The average size of deals in Russia also increased to $186m, 29.5% up on 2012, and the firm said that this indicates the commercial property market in Russia is stable and appeals to both Russian and foreign institutional investors.

The sale of the Metropolis shopping centre in Moscow to a Morgan Stanley real estate fund for $1.2bn was the largest deal of 2013 and an important step towards ensuring future inflows of foreign investment to the Russian market, according to the firm. Colliers added that the deal could foreshadow the appearance of more international companies in the market during 2014.

Other notable players during 2013 included Millhouse Capital, Hines CalPERS, BIN Group and 01 Properties.

Notably, Millhouse Capital ac-

Metropolis shopping centre sold for $1.2bn

quired the White Gardens business centre for a price thought to be about $740m. In the warehouse market, Renova sold its MLP warehouse portfolio to BIN Group for an estimated price of $900m.

2013 was a year of portfolio building for major institutional investors, which will continue to increase the size of portfolios in 2014, Colliers said. “Since the number of institutional quality assets is limited, several good acquisitions could significantly

improve their positions,” said Colliers International Russia director of capital markets Sayan Tsyrenov.

This year the average rates of return are expected to remain at 2013 rates: 8.5% for high-class offices, 9% for quality retail and 11% for class-A warehouses.

Quality retail and office assets commanded most investment in 2013, respectively $2.93bn and $2.87bn, while $1.54bn and $210m was spent respectively on warehouses and hotels.

Largest-ever conversion for Brussels CONSTRUCTION has started on what will be the largest-ever office conversion to be carried out in the Belgian capital Brussels.

The Chambon project will see a 60,000 sq m office building in the centre of the city being converted into a mixed-use development made up of office, residential, retail and cultural space as well as a five-star boutique hotel.

It is being developed by Belgian firm Allfin, which commenced demolition of the original building last year and was on site for the construction phase in January this year.

The finished scheme will be made up of a combination of new buildings, renovations and preserved historic features, and

20

will include a 3,000 sq m garden promenade. Allfin is delivering

the Chamon conversion, which is due for completion in July

2016, with A2RC Architects and Jaspers-Eyers Architects.

The mixed-use Chambon project in Brussels, Belgium

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NEWS CORFAC ON HUNT FOR AFFILIATES IN NEW TERRITORIES AS IT celebrates its own 25th anniversary, global real estate brokerage network CORFAC International is using the 25th MIPIM to source affiliates in new territories.

Ex-President Bill Hawkins said: “MIPIM is an opportunity to bring all our European affiliates together. We have been repopulating Europe with CORFAC affiliates and have recently added Greece, Romania and Russia to our network, but there are still gaps to fill.”

CORFAC consists of a network of generalpractice firms covering North America, Europe, Australia and India.

Member firms typically employ between 20 and 40 people. “The challenge is how to sustain ourselves in the face of the corporates,” Hawkins added. “CORFAC membership means that, without employing more people, you can access more business.”

According to Alistair Subba Row, senior partner of London affiliate Farebrother, CORFAC membership is as much about mutual support as it is about business referral.

“We all face issues like succession planning.

There’s no substitute for being able to pick up the phone to someone who’s been through it,” he said.

Rowan to ramp up portfolio of prime UK and German assets

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ONDON-based property company and fund manager Rowan Asset Management is back at MIPIM to exploit a market that “has not looked stronger since 2007”.

The company’s CEO Nick Jacobs comes to Cannes fresh from signing a £70m (€84m) debt package with Blackstone to allow a 135,000 sq ft (12,542 sq m) office refurbishment of Aldwych House, the US-headquartered investor’s flagship office development in the heart of London’s Midtown district.

Jacobs said Rowan has ambitious plans to increase its portfolio of prime assets in the UK and Germany and to exploit the upswing in the investment cycle to acquire larger scale stock. In the UK, the primary focus is London offices, while in Germany the emphasis is

Rowan Asset Management’s Nick Jacobs: “market has not looked stronger since 2007”

on larger retail portfolios priced between €150m and €300m.

The company has already taken

advantage of the improved market to sell a number of smaller properties in Germany and the UK’s regional markets.

Rowan, which is working with several overseas investors in London, including GI Partners and Taurus Investment Holdings, said that it is prepared to invest, alongside existing owners, in income-producing London properties with significant “potential for upside”. The company is looking for on- or off-market deals and ideal lot sizes are £75m to £200m.

Jacobs said MIPM is “highly convenient for its cross-border business” and has scheduled a number of discussions during the show. He added: “We have to be acutely aware of the change in the cycle and to ensure we are invested well to exploit latent value and market movement.”

Astudio gets homes out of deep water ARCHITECT Astudio has unveiled a new flood-resistant urban design that will allow developers to build homes on flood plains.

The designs were initially conceived after the UK floods of 2012, but have been updated based on the lessons learned from this year’s widespread flooding.

The London-based firm has developed leaf-shaped clusters of resident ia l

units that are designed to allow floodwater to surround and infiltrate properties rather than keep it out. The houses include a garage at ground level with living areas beginning on the first floor, above the flood level, to reduce the risk of water ingress. Services such as gas and electricity are held near ceiling level to minimise the potential f o r dam-

age. The roads surrounding the units are designed to flood and become channels for water in order to deflect it from the homes.

“The recent devastating UK floods have only compounded the urgency for a rethinking of how best to minimise this risk,” said Richard Hyams, director of Astudio. “It is now necessary to shift our thinking from dry proofing and prevention to elevation and wet proofing.”

Astudio’s flood-resistant urban design deflects water away from homes

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mipim

NEWS INVESTMENT INTO EUROPE SURGES DTZ’S latest European Investment Market Update on cross-border flows reveals that non-European investment into Europe rose to €36bn in 2013.

The figure was a record 26% share of total volumes, although in absolute terms was still below the €46bn recorded in 2007.

While North American and global fund managers were the main sources of investment in 2013, each investing over €7bn, they also sold more than €9bn each.

Non-European investors remained focused on offices, which represented around two thirds of the investment total. Asian and Middle Eastern investors remained centred on the office sector, whereas North American capital was more diverse. New pools of Asian capital are also now focused on mixeduse or residential-led schemes.

ARTISTS IN RESIDENCE 3D ARCHITECTURAL visualisation specialist Wondering, launched last year by YoungNetwork Group, is exhibiting at the MIPIM Innovation Forum this week, as well as being involved in this afternoon’s pitching session. The company works with architectural, design, real estate and tourism firms, as well as with public and private bodies, to create 3D images and videos to promote projects at the commercialisation stage.

Wondering’s team includes 3D artists, architects and postproduction professionals.

Cannes launch for Istanbul’s new record-breaking project

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URKEY’s largest privatesector real estate investment — a 1.6 million sq m mixed-use project in Istanbul — will be unveiled this week at MIPIM. Positioned on a land plot of 1.5 million sq m in the city’s Atakent district, Tema Istanbul encompasses not only 4,000 residences but also commercial areas including a hotel, an exhibition area, a congress hall and a shopping mall.

The developer, also called Tema Istanbul, plans to build the largest theme park in the region — Tema World — within the overall scheme, making it a centre of attraction not only for Turkey but also the rest of the world.

Tema World in Tema Istanbul will be a world-class theme park. It will be built on a 400,000 sq m site and requires an investment of approximately $400m (€288m) excluding the cost of land. It is intended

that Tema World with its stories, themes and activities will become one of the most contemporary theme parks in the world and attract an average of 3 million Turk-

Tema Istanbul — Turkey’s largest private-sector real estate investment

GVA agrees Fashion Arena sale ON BEHALF of TK Development and LMS Outlets, property advisor GVA has secured a memorandum of agreement to sell the Fashion Arena outlet

centre in Sterboholy near Prague to UK investor Meyer Bergman for €71.5m.

The sale of the Czech Republic’s leading investment opportunity

Meyer Bergman set to buy the Fashion Arena outlet in Sterboholy

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ish and foreign visitors every year.

The development is close to both the existing Ataturk Airport and the city’s third airport which is under construction.

forms part of TK Development’s current strategy to sell one or more major projects.

The 25,000 sq m outlet centre, located 25 minutes east of central Prague, comprises 110 stores and is 96% leased to a range of internationally recognised brands and tenants, including Tommy Hilfiger, Nike, Adidas, Benetton, Lacoste, Levi Strauss & Co, Guess, Calvin Klein and Esprit.

Meyer Bergman is the owner of the Galeria Katowicka mall in Katowice, the Aladdin shopping centre in Kiev and Forum Novi Karolina in Ostrava, among other Eastern European assets.

Rob Bould, chief executive at GVA, said: “This is an outstanding investment for Meyer Bergman given the timing in the economic cycle and the country’s robust economic performance.”

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NEWS IN THE lead up to MIPIM, the Scottish Cities Alliance has unveiled details of £2.5bn (€3.01bn), of investment sites being brought forward for development and occupation across the country.

The 18 sites being showcased include The Dundee Waterfront, a £1bn, 240 ha mixed-use redevelopment of the coastline; the £200m Aberdeen Exhibition and Conference Centre, a 150,000 sq m mixed-use office, hotel and entertainment scheme; and the 65,000 sq m mixed-use redevelopment of Haymarket railway station in Edinburgh.

Scottish Cities is also launching Inverness Campus, a £200m development that will see a state-of-the-art educational and business environment developed in Scotland’s fastest growing city, plus a range of hotel developments in Perth. Finally, the Broadleys Business Park in Stirling will see increased capacity for industrial occupation.

CBRE BUYS VALTEQ CBRE has expanded its building consultancy capabilities in Germany with the acquisition of Valteq, which specialises in technical and environmental due diligence for commercial real estate. The company also provides technical asset management, project management, facilities management, consulting services and economically feasible sustainability solutions.

Valteq’s team of approximately 60 professionals will now be fully integrated with CBRE’s building consultancy group in Germany and across Europe.

CAERUS ON TARGET GERMAN debt fund Caerus Real Estate has raised €70m with two major equity deals, on its way to a target of €300m. The Dusseldorfbased fund has received a commitment of €50m from German insurance group Gothaer, following a €20m deal with Swiss private bank Reichmuth. Once it has reached its equity target, the fund will be used to finance real estate projects in the German-speaking countries of Europe, with developments in the Benelex region also being considered.

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Downtown on the up in

Sao Bernardo do Campo © Photograph: Lucas Chiconi

SCOTTISH CITIES UNVEILS 18 SITES

Sao Bernardo do Campo is launching an ambitious urban and structural programme

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NE OF the sponsors of the Brazil delegation, the municipality of Sao Bernardo do Campo, is showcasing the ambitious urban and structural programme that is transforming its downtown area.

The city is working with the state government, the federal government and the private sector to create a location that is compatible with its economic and political importance.

Sao Bernardo do Campo is located 20 km from the centre of Sao Paulo and just 50 km from the largest capacity port in Latin America, the Port de Santos. It ranks 13th among

Brazil’s local economies and was the eighth largest exporter among the country’s municipalities in 2011.

The Urban Operations programme will see the political centre of the municipality integrated and connected to its main commercial hub. It will include the construction of commercial and residential buildings and the consolidation of various investment options across more than 32 blocks of the city’s downtown area.

Sao Bernardo do Campo is also promoting itself as a new focus for the defence industries, offering incentives for innovation and high-tech development in the city.

BUELENS Group is developing a new office building in the Belgian city of Liege. The energy-efficient 11,000 sq m building, known as E.Lyge, is pre-certified with a BREEAM Very Good label. Designed by Art & Build Architect, the scheme is located at the entrance of the city but is close to the historic old centre. The building comprises one wing of nine storeys and another of five, between which is a two-level covered passage that is open to the public.

The ground floor and mezzanine levels will also accommodate several services.

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mipim

NEWS DEMAND FOR LOGISTICS HIGH IN GERMANY DEMAND in the German logistics and warehouse market stayed at a relatively high level during 2013 despite the subdued economic climate, with the third-best annual take-up recorded.

The almost 4.64 million sq m taken up was 9% down on the previous year but still exceeding the 10-year average by a cracking 20%.

According to a survey conducted

by BNP Paribas Real Estate only in the two previous years was nationwide turnover higher, due to an unusually large number of major deals.

One strong indication of the stable basis of demand was the relatively balanced spread of take-up across the different size classes. Demand across business sectors has also remained comparatively stable. In 2013 logistics firms accounted for nearly 38% of all take-up, reflecting the rapid professionalisation of this branch of the economy. In second and third places came retailers (over 32%) and manufacturing companies (slightly more than 26%).

The survey results suggest that space turnover in 2014 should again be well up on the long-term average, with a possibility that rents will climb during the year if demand picks up to an even greater extent.

Lifestyle and entertainment are key to Doha’s Mall of Qatar

The 162,000 sq m Mall of Qatar in downtown Doha

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ELEGATES will get the opportunity this week to assess one of the Middle East’s most ambitious developments, the Mall of Qatar in Doha, which is intended to be a world-class retail, sports and entertainment destination and has a total build area of 388,000 sq m.

It is located 20 minutes from downtown Doha, at the intersection of Al Rayyan Highway and Celebration Road, adjacent to the Al Rayyan Sports Club and a future stadium for the FIFA World Cup in 2022.

The mall will have 162,000 sq m of gross lettable area spread over three levels and will include 7,000 parking spaces, themed restaurants, family entertainment and multiplex cinemas. Also scheduled is a dedicated metro Copenhagen’s new international arena

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station that will be integrated into the centre as part of Doha’s new transportation system.

One of the distinguishing architectural features of the Mall of Qatar will be a threestorey, sophisticated urban-lifestyle market place running the full length of the centre spine. This area, with a vaulted glass ceiling, opens out into a central amphitheatre called The Oasis with a domed roof and will become the heart of the project.

The opening is planned for the third quarter of 2015, with an estimated 20 million customers anticipated annually.

Chapman Taylor is design architect for the project. McArthur + Co is providing the leasing and marketing expertise. They are both supported by a team of local and international professionals.

ONE OF Denmark’s major mixed-use projects is on show in Cannes this week — Copenhagen’s so-called Arena Quarter in Orestad Syd (south).

The project consists of offices, retail space, housing, an indoor ice rink and a school. The focus of the development will be the city´s new international arena. Total floor area is 270,000 sq m.

Developer Realdania and the City of Copenhagen contributed $60m (DKr 32m) each to fund the project. The parties have established the Arena CPHX P/S company that will manage the design, planning and construction of Copenhagen Arena. Subsequently Arena CPHX P/S will own the building that will be run by the chosen operator Live Nation. The City of Copenhagen and Realdania both maintain an equal ownership interest in the company.

Completion is set for 2015.

Copenhagen Arena is designed to be used for culture, music and sports events. For music and other entertainment the arena will have a capacity of up to 15,000 spectators.

The Arena Quarter will be organised around a green park area with space for sports and a promenade for pedestrians, connecting the park area with the surrounding buildings.

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NEWS SMART OFFICE PLAN OPTIMISES SPACE — AND CUTS COSTS ING IS showing investors and end-users at MIPIM how to cut office costs.

According to the giant Dutch financial services group, annual real estate costs arise from three major factors: rent, energy (heating/cooling/lighting), and maintenance services — all of which are driven by the surface area of the space. The other major cost in real estate is the investment in the interior, firstly at time of build and then repeated every 10-15 years as refurbishment, and to meet organisational changes.

To minimise these real estate costs, experts from consultant MCS were commissioned to develop an office concept that makes the best use of space, while avoiding the recurring cost of rebuilds following reorganisation.

Using its proprietary ABOOT methodology MCS measured the mix of activities within ING operations for a full week.

The result is an activitybased office concept tailored for ING daily operations across different groups and buildings. It allows ING to save on costs of space and recurring refurbishment. By implementing smart activity zones, the office concept brings an optimised mix of space types to support team needs for individual work, focused collaboration, and formal and informal meetings.

With this smart-office concept ING benefits from office space that reduces costs while providing the optimal combination of space types for its business activities, both now and in the future.

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Carnival Corp cruising into Amsterdam’s Duin project

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ELEGATES will get a chance this week to assess the progress at Almere on the coast east of Amsterdam, one of the fastest growing new towns in Europe. First established in 1976, Almere in 36 years has attracted over 195,000 residents and 14,500 businesses. Almere is already the largest city in the province of Flevoland and the seventh largest city in the Netherlands.

One of the ongoing projects is Duin, a planned business and residential community by developer Amvest. This is the creation of a co-ordinated living, working and recreation area. The resort effect is reinforced with the construction of a second beach, boulevard and a dune landscape with 10-metre-high dunes. Amvest says residents will feel like they’re living in a real resort while being in the shadow of the booming city of Almere.

The latest news from the Duin project is that Carnival Corpo-

ration, the world’s largest cruise company, has signed a letter of intent with Amvest to purchase 700 sq m of land in Amvest’s Duin project in Almere with plans to build a state-of-the-art Carnival Campus and Centre of Excellence.

The centrepiece of the campus will be a new and larger Centre

for Simulator Maritime Training (CSMART), which is Carnival Corporation’s world-class maritime training and research facility, also based in Almere.

The facility is used by all 10 of its worldwide cruise brands for professional maritime training, professional development and research.

Carnival’s new maritime training centre in Almere

Eco-park attracts aviation sector MARSEILLE’s Technoparc des Florides in Marignane is dedicated to aerospace industries but is also part of an ambitious sustainable development process.

The 87 ha business park serves the aerospace company Eurocopter — a key industrial player and the leading global manufacturer of civil helicopters.

Delegates will also be able to check its high environmental credentials — rare for a development in the aviation sector. It has ISO 14001 certification and devotes a third of its surface area to green spaces. Some 37 ha are still available for sale in 2014.

Companies already on the site also include Daher Aerospace,

AKKA Technologies and Bonnans. The scheme is located a few kilometres outside Marseille, Technoparc des Florides

close to major roads, Marseille Provence Airport and the port of Marseille.

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NEWS

Shanghai project designed to celebrate city’s urban chaos

The 150,000 sq m Magnet Minsk project in the Belarus capital

NEW MIXED-USE COMPLEX FOR MINSK MAGNET Minsk is a 150,000 sq m mixed-use multi-purpose complex with a shopping mall, an office centre, a supermarket, a high-class business hotel and residential units. The project in Belarus capital Minsk is developed by client Belpars and is located along the main arterial road leading from the city centre to the international airport. This area will be developed according to a masterplan for further residential and office buildings and the Zomex Complex, a new shopping centre.

WORK STARTS ON HOUSTON DEVELOPMENT AS THE fourth largest city in the US, Houston, Texas has become a hot spot for commercial development in the last few years. American developer Thor Equities has started development on the Kirby Collection, a 48,000 sq m mixed-use commercial development site located in Houston’s River Oaks community. On completion Kirby will have 16,500 sq m of office, 24,000 sq m of residential space and 6,500 sq m of retail space.

Thor Equities has made a start on its Kirby Collection in Houston, USA

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HE JING An Kerry Centre in Shanghai is one of the main projects from China on show in Cannes this week.

Designed by Kohn Pedersen Fox (KPF), the scheme is located in Shanghai’s Jing An district, on Nanjing Road West and is developed by Shanghai Ji Xiang Properties.

The mixed-use project has a footprint of 85,000 sq m and includes 86,000 sq m of retail, 152,000 sq m of office space, the 508-room 73,000 sq m Jing An Shangri-La hotel, 18,000 sq m of residential in 133 units, and 1,340 parking spaces.

According to KPF each major piece of the programme is articulated as a separate massing element. The southern 260 metre-high tower includes an 80,000 sq m office building and convention centre. The 198 metre-high north tower comprises a luxury hotel, retail, a health club and an underground station.

The masterplan has been designed to “celebrate the chaotic and energetic urban context of modern Shanghai” by integrating it into the cityscape rather than setting it apart from it, according to KPF. An additional level of visual interest for the complex is created

by the use of a “family of grid pattern facade treatments. The tower grids consist uniformly of positive mullions defining the largest grid module, with hidden mullions creating the necessary subdivisions. The grids take several forms, including a mega-grid outrigger at the office base, large

embedded mullions on some masses, fine embedded mullions on others, and cage-grids at the tower crowns.”

The driving force behind the project is “to create a stage to celebrate Shanghai’s evolving affluence and aspirations”, the developer said.

The Jing An Kerry Centre in Shanghai is designed by Kohn Pedersen Fox

Helsinki regenerates west harbour

Finland capital Helsinki’s West Harbour urban regeneration project

HELSINKI’s west harbour urban regeneration project aims to restore the connection between the harbour and the city. The old cargo harbour and dockyards have been relocated and the remaining passenger port with its new hotel and retail functions will act as the new centre of the area.

By 2030 over 22,000 new residents will have moved to the

area and 10,000 new jobs created next to the port servicing up to 10 million passengers per year. The project, on show at MIPIM this week, will return everyday urban life to the active port area and large ferries to the landscape of a modern diversified city centre.

The project is developed by the City of Helsinki. Architectural design is by ALA Architects.

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REUROPE IS A BRAND OF

NEWS MILAN SEEKS INVESTORS FOR EXPO SITE AREXPO, the owner of the 105 ha site of the 2015 Milan Universal Exhibition, is in Cannes for the first time to meet investors who are interested in the redevelopment of the area once the exhibition is over.

The Expo site, in the northwest quadrant of Milan’s metropolitan area, will be available for post-Expo projects from November 1, 2015.

Arexpo is supported by the Lombardy Region, Municipality of Milan, Municipality of Rho, Fiera Internazionale di Milano and Milan Province. Representatives of Arexpo are interested in meeting real estate professionals eager to invest in one of the most dynamic and well-connected regions of Italy, if not the whole of Europe.

The area is easily accessible from the Milan airport system, well served by the underground and railway interchange system and next to the strategic hub of the regional, national and international highway system. The infrastructure system for the 2015 Universal Exposition will provide a frame for the development of the future urban project, which aims to redesign the metropolitan area of Milan.

Soccer star Neville presents Hotel Football in Cannes

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MONG the speakers on the Manchester stand at MIPIM this year is ex-footballer and current TV pundit Gary Neville, who will give a keynote speech on behalf of Manchester’s property professionals.

Neville’s speech will centre on his Hotel Football development at Old Trafford, home of his former club Manchester United. His presentation will be one of six Manchester stand events taking place this year. Other speakers representing Manchester at MIPIM Partnership include economist Jim O’Neill, who is discussing the importance of cities to the global economy.

O’Neill came to fame as the originator of the BRIC acronym to describe the up-and-coming economies of Brazil, Russia, India and China. More recently he has identified the MINT countries of Mexico, Indonesia, Nigeria and Turkey as the next wave of growth economies to watch after the BRICs. O’Neill will go on to join Bruce Katz, vice-president of the Brookings Institution, at the European Cities Partnership event,

Gary Neville played for Manchester United throughout his professional career and played 85 times for England

running for its fifth year. Entitled The Metropolitan Revolution after the book published by Katz in 2013, the event is set to build on the work of the European Cities Partnership, which includes Amsterdam, Barcelona and Hamburg, and has been joined by Stockholm and Torino for 2014.

The event will take place on Tuesday, March 11, at 11.00 in the Croisette Room at the Majes-

Agents announced for Battersea BATTERSEA Power Station Development Company has announced the four agents selected to handle retail and office lettings at Battersea Power Station. CushLondon landmark: Battersea Power Station

34

man & Wakefield and CWM are retail property consultants, while CBRE and Knight Frank are appointed for the offices at Battersea Power Station.

Rob Tincknell, chief executive of Battersea Power Station Development Company, said: “Battersea Power Station will be a new entertainment, cultural, creative and commercial destination — like nothing ever seen before anywhere in the world.”

Battersea Power Station is one of the world’s most famous buildings and is at the heart of Central London’s long-awaited new development.

This 16 ha site will become home to a new town centre with shops, cafes, restaurants and bars set among 3,500 new homes,

tic Hotel.

During three themed days, Manchester will focus on the power of connections and how one initiative or development acts as a catalyst for another, drawing out those that are unknown as well as those recognised locally, nationwide and internationally.

The Manchester stand sessions take place at 10.30 and 15.30 each day during MIPIM. 158,000 sq m of offices and hotels, 93,000 sq m of retail and seven ha of open and cultural activity space.

Its own new underground station and river-bus jetty will link into the existing rail, bus, pedestrian and cycle routes creating a new transport hub.

The power station itself, which was decommissioned 31 years ago, was designed by Giles Gilbert Scott and is regarded as one of the finest surviving examples of art deco industrial architecture.

The Battersea Power Station masterplan comprises seven phases in total. Construction is now under way and residential sales started this year.

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mipim

NEWS TIAA-CREF and Henderson tie-up boosts global reach

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TIAA Henderson Real Estate’s James Darkins: “ideal tie-up”

IAA Henderson Real Estate, the combined operations of US-based financial services provider TIAACR EF and Eu rop e a nh e a d q u a rtered fund Henderson Global Investors, is promot i ng its new global real estate invest-

ment management company at MIPIM. The new company — which officially launches on April 1 — will offer clients expanded investment opportunities in the global real estate market and will enable the companies to enter or bolster their presence on new financial platforms.

TIAA Henderson Real Estate will consist of TIAA-CREF’s European real estate business, Henderson’s European and Asia Pacific-based real estate businesses, and a new global distribution and client-service organisation. The company will provide access to global capabilities in the office, retail, logistics, multifamily and commercial real es-

tate debt sectors.

James Darkins, CEO of TIAA Henderson Real Estate, said: “We are strong in Europe, TIAACREF is strong in the US and we both have growing businesses in Asia, so this was the ideal tie-up.

Not only will it strengthen our global reach, but it enables us to strengthen in areas such as commercial real estate debt.”

The combined total of real estate assets under management for TIAA-CREF and the new venture is $63bn. TIAA-CREF will hold a 60% interest and Henderson a 40% interest.

Darkins added: “Increasingly, we are seeing our investors wanting the funds to also put equity into an investment and this merger will allow us to do that. We have been able to focus the business on these opportunities. And I think it’s fair to say, having been established across Asia for some years, we’ll also be doing a lot more in the region.”

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SPECIAL REPORT THE BRAZILIAN OPPORTUNITY

The turning point As one of the BRIC nations, Brazil has been the darling of economists for several years, despite a somewhat bumpy 2013. John Ryan reports the prospects for the country’s property market

F

OR THE first-time visitor to Brazil, it is probable that the port of entry will be Sao Paulo.

And whether coming from the US, Europe or one of the Pacific Rim nations, the thing that is likely to surprise is just how long it takes to fly over the country to the point at which the plane actually touches down.

That Brazil is huge is a geographical cliche, but there is nothing like flying across part of its territory to reinforce that message.

This of course means that, like the US, Brazil is a country of regions, each with its own distinctive charact er,

Contents Retail: II the star of the show Office: riding the storm

III

Residential: VI rents take a breather Logistics and warehousing: future jam

VII

economy and, to an extent, demography. And like the US, there are areas that have concentrations of wealth and that attract inward investment, while others struggle and seem set to continue to do so.

Taking Brazil as a whole, however, the last couple of years have been difficult ones for a country that was frequently cited as something of a global superstar in terms of growth. Since 2012, and arguably for some time before that, things have been tough in Brazil — or at least that’s the received wisdom.

In the third quarter of 2013, Brazil’s GDP actually went backwards 0.5% compared with the previous three months. All of these things are relative, however.

In the second quarter of 2013, the country’s GDP grew by 1.8%. All of which means that the country ‘probably’ grew by 2.3% in 2013, according to estimates from its central bank.

If this were to be attributed to the performance of any of the major European economies during the same period, the airwaves would be thick with talk of a Lazaruslike recovery. Yet such is the level

of expectation that surrounds the BRIC economies of Brazil, Russia, India and China that 2013 in Brazil was held to be a mild disaster by those who document such things. And opinion of this kind is likely to have a negative impact on inward investment, as well as causing domestic demand to falter.

There are, of course, those who see beyond this. Marcelo da Costa Santos, Cushman & Wakefield’s vice-president, capital markets, South America, puts the current economic status quo in perspective: “Brazil may be in a technical recession, but 2014 will be not be a recessionary year and we would expect to see growth of around 2%.”

This is still modest compared to various points in the last decade, but it is moving in the right direction. Da Costa Santos also makes the point that, while demand for office property in particular may have fallen well behind supply, this will be in balance “within two or three years”.

So is Brazil a good place for foreign property investors to put their

money? Da Costa Santos says that the country’s current problems will evaporate in the long term and that the prospects across all sectors are positive, even allowing for the current difficulties. “The only thing you have to be aware of is that this is not a place for small operators. If you come here with $20m, you will fail. This is about large investment.”

It is also worth noting that 2014 is World Cup year and that it is taking place in Brazil. Conventional wisdom has it that mega sports events of this kind provide a boost to an economy across all sectors.

Yet several observers caution that the Brazilian president has it within her gift to declare a Brazil Day holiday on the days in which the home football team is playing in the competition. The economy grinds to a halt on such days and, therefore, the longer Brazil remains in contention, the greater the effect upon its GDP for 2014.

A number of Brazilian economists have said that the tourist influx will be insufficient to balance the books when set against the effect of Brazil Day holidays, should these go ahead.

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SPECIAL REPORT

R

ETAIL is the most sophisticated of the property sectors in Brazil, according to Cushman & Wakefield’s da Costa Santos. “I would say that 60% of the sector is managed by professional companies, against just 15% in the office sector,” he says.

A number of large overseas investors that have put their money into the Brazilian retail sector, with Portuguese shopping-centre developer Sonae Sierra leading the charge. However, the Australian giant Westfield has disposed of its Brazilian assets relatively recently.

Sonae Sierra owns and operates 10 shopping centres in Brazil and manages two more.

The interesting feature of its Bra zilia n por tfolio, wh ich consists of a GLA of 502,000 sq m and 2,487 shops, is that it is not confined to the south east of the country and the Sao Paulo region. While it is certainly a force in this part of Brazil, Sonae Sierra also has interests in Amazonas, Minas Gerais, Parana and Goias, all of which are substantially less developed. That said, it is fair to say that the bulk of its assets are in the Sao Paulo region — a pattern that holds good for most investors in the Brazilian market.

Da Costa Santos says that there is “talk of other companies coming in”, but cautions that Brazil is an “extremely difficult” market to enter. It is also worth noting that, even in the boom area of Sao Paulo, there are areas that are already close to capacity. The southern part of the city, for example, has five substantial malls already in place.

For incoming investors, capi-

II

© Photo: David Silverman / Getty Images News / Thinkstock

Retail: the star of the show

tal and a canny eye on where to open seem to be the two essential determinants of success. The market may be difficult to enter, but it is the south east that seems to hold the prize as far as retail investors are concerned.

JLL research highlights the fact that 27 new malls opened in 2012 and that there is a 4 million sq m new retail project pipeline, or 168 new schemes, in the period to 2016. This indicates a belief in strong demand and, indeed, the low vacancy rates in Brazilian shopping centres, running at just over 2%, bear this out. A vigorous demand for hypermarkets also continues to characterise the country, with Carrefour, Walmart and Casino, among others, all

highly active and jockeying for position with a range of retail fascias.

One of the starkest facts produced by the JLL research team is the GLA in sq m per 1,000 inhabitants. This stands at just 59, compared with, for example, 463 in Holland, 274 in the UK and a relatively modest 145 in Germany. Clearly, there is some way to go before this country becomes ‘over-shopped’.

Note should also be made of AT Kearney’s Global Retail Development Index which, in 2013, ranked Brazil top for the third year in a row among the 30 developing countries that it covers annually — another sign that this retail market cannot be ignored.

For incoming investors, capital and a canny eye on where to open seem to be the determinants of success

SPECIAL REPORT

Office: riding the storm Rio’s Trump Towers

T

HAT supply is running some distance ahead of demand in the Brazilian office sector has been the case for a while but, with vacancies currently standing at around 14% against 3%-4% three years ago, the climate continues to tighten.

Prime, of course, remains prime.

But, according to Cushman & Wakefield’s da Costa Santos, even here not everything is clear cut: “You will certainly attract the right occupants in prime locations but, even allowing for this, there is downward pressure on rents.” Even in the Sao Paulo powerhouse, there are areas where office vacancies this year stand at 30%. Nothing, in other words, can be taken for granted.

Currently, Brazil’s office sector is a buyer’s market and, as one potential investor who declined to be named, puts it: “I’m waiting for the blood to drip from the

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RIO DE JANEIRO: PRIVILEGED LOCATION, STRATEGIC LOGISTICS.

Add to this exceptional situation the fact that Rio de Janeiro boasts the largest concentration of investments per square kilometer in the world, offering numerous new business Rio de Janeiro has advanced enormously over the past opportunities, as already pointed out in the Decision: Rio decade with thriving social and economic development. The Investments 2011-2013 study. For the 2012-2014 period, the per capita income for the country’s second-largest economy investments are going to be even greater. has more than doubled since 2000, surpassing the natio- In fact, Rio de Janeiro will receive US$ 120.0 billion in nal average. In addition, the state continues to make a name investments in the next three-year period. Despite the for itself on the international scene. In fact, Rio de Janeiro is importance of sectors like oil and gas, energy, shipbuilding, recognized as a leading destination for foreign tourists in Brazil, is steel and automotive, it is the investments in logistics that a national and international benchmark in the audio-visual sector stand out. This sector accounts for US$ 12.1 billion of the and has made clear advances in public security, in particular with the setting up of the police peacekeeping units in the state capital, which will host the 2014 FIFA World Cup and the 2016 Olympic and Paralympic Games. At the same time, it is the largest national producer of oil and gas, with oil reserves comparable to those of the world’s major oil-producing countries. With regard to logistic infrastructure, Rio de Janeiro also boasts a significant differential, allowing access to 50% of Brazilian GDP within a radius of 500 km, thanks to good quality roads, an extensive rail network and its ports and airports. Situated in an extremely privileged location, the state already stands out as one of the major logistics hubs in the country, being responsible for a large proportion of the movement of Brazilian cargo and passengers.

total, 80.6% more than the amount recorded for the 20112013 period. These investments will have an enormous impact on the economy of Rio de Janeiro, serving as important leverage for the attraction of new ventures, and stimulating, at a later stage, population growth caused due to the increased demand for labor by the companies that have set up operations.

Thus, being able to rely on an extensive, top-quality logistics infrastructure will open up opportunities for the installation of industries, commercial establishments and service providers.

The logistics infrastructure under construction will be particularly important for supporting major on-going developments, such as Comperj and the Açu Port Industrial Complex, facilitating the shipping of products, labor mobility and the transportation of machines and pieces of equipment – often highly complex ones.

In addition, it will be a key factor in attracting new investments to the state. Due to the impact of the various investments in improvements and the expansion of the logistics infrastructure in Rio de Janeiro, the state will be able to reinforce its privileged location. National oil capital, international tourist center, venue for large sporting events and enjoying the biggest concentration of investments in the world, the state will earn another title: that of Brazil’s new logistics center, serving as a strategic international hub. This is why Rio de Janeiro will continue to offer excellent opportunities in various industry sectors for the coming years.

III

SPECIAL REPORT buildings before I buy anything.”

Vacancies rising and rents falling does indeed sound like the perfect landlord’s storm, yet the outlook is more interesting in the medium term. The Brazilian office sector is characterised by a large number of owner/operators and, given current conditions, most commentators are predicting that there will be a great deal

Developers are looking at markets beyond Sao Paulo, Rio de Janeiro and their hinterlands

of consolidation. This means a more professional approach, as well as a streamlining of supply.

It is also fair to say that developers are looking at markets beyond Sao Paulo, Rio de Janeiro and their hinterlands. Recife in the north east, Brasilia and Belo Horizonte all feature in future expansion plans.

But this is a regional country, meaning that conditions, rents and tenants vary wildly, depending on area and city. Taken together, Rio de Janeiro and Sao Paulo account for more than two-thirds of the current office stock in Brazil, while the capital, Brasilia, boasts less than 2%. There is also some way to go in a lot of the bigger cities.

The phenomenon of houses being used as offices is also something that is still commonplace in Brazil, although da Costa Santos makes the point that, once the transition is made by a company to a true office environment,

FULL SPEED AHEAD FOR HOTELS AT 28.1% of the total, the number of hotel rooms owned by the big chains in Brazil is modest compared to other countries. But it is growing, according to figures from JLL. Hotel chain Accor is at the top of the tree with 30,260 rooms in 2013 in 181 hotels spread across the country. Ricardo Mader, director of hotels and hospitality at JLLin Brazil, noted in 2013 that: “In 2012, for the eighth consecutive year, hotels in Brazil grew in RevPAR [revenue per available room] by about 9%. The GOP

there is no turning back.

And in some ways, the prospects for office development are better than in many centralised European nations, where there is a tendency for there to be one major city in which all of the best office stock is located. Brazil is not

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São Bernardo do Campo: a city of opportunities São Bernardo do Campo is located in the São Paulo’s Metropolitan Region. The city is 20km far from São Paulo’s downtown, just 50km distant from the Porto of Santos, the biggest in capacity of Latin America, and 42 km from the International Airport of São Paulo. The city is also well connected to the main brazilian roads, through the South Stretch of the Interconnection Road (Rodoanel).

São Bernardo do Campo ranks 13rd between the Brazilian local economies and 8th exporter between the Brazilian municipalities (2011).

The GDP in 2011 was US$ 1,3 billions and the investments directed to the city reach US$ 786,73 millions in 2010.

Our territory has 408,9 km² and 800,000 of inhabitants, the 3rd in the ranking of São Paulo’s Metropolitan Region. The city has around 1,800 of industries, 4,600 of com-

IV

mercial installations and 5,000 service providers. It’s a historical territory of the automotive industry in Brazil which holds the more relevants industries of this sector.

The city has a vibrant and growing sector of trade and services, and it is experiencing a large and ambitious revitalization process named «Urban Operations», which will create investment opportunities in Real Estate in over 1,000 km ² of revitalization area. São Bernardo do Campo also projects itself as a new pole of the defense industry, offering incentives for innovation and high-tech development in the city.

Contact: Alfredo Luiz Buso Secretary of Urban Planning Address: Samuel Sabatini Square, 8th floor Phone: +55 11 4348-1041 Website: www.saobernardo.sp.gov.br

[gross operating profit] grew by about 8%, which was significantly above the inflation of the country.”

With tourism, the World Cup and the Olympics all contributing to an increase in demand for hotel rooms, as well as a domestic economy that is forecast to experience a return to robust growth rates in the years up to 2020, this is a property bet that looks worth taking. The big chains will continue to expand across the country and, with room rates increasing nationally, the future is rosy for the sector.

only large and has Sao Paulo as a ‘mega-city’, but it also has a lot of cities with more than five million inhabitants — sufficiently large to function as minor economies in their own right and to create markets for all property sectors, including new office developments.

Dracorion Investment I n t e r n a t i o n a l

R e a l

E s t a t e

Office market of Sao Paulo : a historic moment for End-Users Brazil is now one of the largest economies in the world (ranked 8th in international classification).

If it were a country, the state of Sao Paulo would rank 18th in the same classification. Most multinational corporations have headquarters in the city of Sao Paulo. At issue, is the quality of commercial real estate stock, which is paramount.

- allow their users to enjoy significant savings, versus their competitors, while improving comfort. Secondly, the large number of deliveries of this type of building lower the tension exerted on prices, causing most of the landlords not only to offer more flexible financial conditions, but also to better adapt to the needs of their clients.

Historically composed of atomized, “B” class buildings, the Paulista capital saw the pace of “A” class building deliveries accelerate in recent years, currently peaking. Until now, delivery of new operations had failed to meet the growing need for quality surfaces, generated by the Brazilian economic boom. Often forced, until recently, to grow in difficult conditions - multiplying the number of locations in unsuitable buildings let at high prices - companies now have a historic opportunity to rationalize their real estate questions.

In order to take full advantage of this new market structure, users must surround themselves with independent specialists who will assist them in their decisions. Dracorion Investment is your one-stop, international consultant, dedicated to the representation of the interests of end users, 100% worry-free of any conflict of interests. Our services offer a method, based on objective and detailed market analysis. Our knowledge provides companies with a clear vision thereof, and all the rewards it could bring. Dracorion Investment offers a seamless, full-service experience, from real estate acquisition in prime locations, to “builtFirst, the technical qualities of last generation to-suit” and “Sale and lease-back” operation buildings – service expense optimization, efficient engineering, or just locating the perfect existing surfaces, positive energy, “green” structures etc structure that suits your needs.

Contact : Raissa Martins – Dracorion Investment - Avenida Paulista, 2202, São Paulo

Phone : +55 11 981 118 499 - rm@dracorion.com - www.dracorion.com

With two world class sporting events coming to Brazil over the next few THE QUESTION ISN’T WHETHER TO INVEST IN BRAZIL...IT’S HOW?

years, all eyes will be focused on the country, and its property market will enjoy the benefit of the global spotlight.

Brazil is South America’s leading economic power and 7TH largest economy in the world. It is also one of the emerging BRIC economies. As a result of Brazil’s fast economic growth, the country’s middle class community grew rapidly and now accounts for over half the population. However, due to a national housing deficit of 8 million, many of these people are forced to live in the notorious favelas.

To resolve this problem, the government launched the Minha Casa, Minha Vida social housing programme, which will create 3 million affordable homes for Brazilian families, allowing them subsidised mortgages with zero deposit.

EcoHouse Group is the only company in the UK building under Government authorisation.

To get involved with the Brazilian social housing program or to enquire about Joint Venture speak to us today. t. +44 203 540 2200 - e. info@ecohousegroup.com - w. www.ecohousegroup.com

h

SPECIAL REPORT

Residential: rents take a breather

A

CCORDING to research undertaken

by Savills in 2013, Brazil “has a relatively high level of owner-occupation in its urban areas”. Savills notes, however, that as “the market develops and more international and domestic investors are attracted to the market, particularly in urban areas like Rio, it may be that rates of owner-occupation will fall as rental alternatives become more numerous”.

Yet in spite of this, house-price growth in Rio continues to run ahead of consumer price inflation, albeit at a lower rate than has been the case over the past five years. This makes investment in the sector, especially

in the urban areas, an attractive proposition.

There are two other aspects to the Brazilian residential property market that mark it out. The first is that, when set against other emerging economies, rents in its two biggest cities are less than 40% of those in Shanghai and Mumbai, according to Savills.

The other point is that this is a market that is relatively free of red tape, meaning that buying freehold properties from developers is straightforward.

The outcome of all this is that, in Rio, even some of the favelas are being snapped up by developers with an eye on the long-term opportunities. Relatively close to Rio, the oil-boom town of Marica is a residential hotspot as its

EcoHouse’s Bosque development

population continues to burgeon.

In Sao Paulo, meanwhile, the brakes have gone on as far as residential price inflation is concerned when compared with Rio, although this may be related to it being a more mature market.

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Managing Brazilian Opportunities and Risks With good interest rates and economic growth Brazil is one of the top countries in which to invest nowadays. Every day more of its population ramps up to the middle and upper classes, backed up by strong agribusiness, natural reserves, small and middle entrepreneurs and civil construction, amongst others.

As a developing country, Brazil still fight its way towards a well-established panorama, which means that not all scenarios – legislation, infra-structure, supply chains, localized demands – are as thoroughly defined and understood as one can find in US or European Union. This can be challenging for the person or company investing in Real Estate in Brazil, native and foreigner alike.

VI

Tallento has 25 years of experience in Real Estate Business, with a portfolio over 5 million square meters and 500 managed ventures, optimizing costs, overseeing constructions and integrating all needs and requirements with the best Brazil has to offer. From highest and best use of the land up to designing office efficiency, Tallento optimizes deadlines, monitors and manages planning scopes and matches client guidelines with local regulations.

Expertise to reduce risk – making sure your project is well suited to match market demand, easing hedging and avoiding imbalances – is at the core of Tallento. If you want to invest, or just know a little more about the country of the moment, come talk to us.

In total, residential property inflation may be slowing in Brazil.

It is now, however, expected to go into reverse, even allowing for the broader economic backdrop, as demand is forecast to outstrip supply for the foreseeable future.

SPECIAL REPORT

Logistics and warehousing: future jam

I

N BRAZIL’s logistics and warehousing sector, the overwhelming majority of both its existing stock and future development is in the south east of the country — and seems set to continue to be so.

With the Sao Paulo region accounting for half of all development in the pipeline up to 2017,

according to JLL, while the massive Amazonas region represents just 1% of the total, the disparity between the south east and the rest of Brazil is obvious. Warehousing in the Sao Paulo area is set to almost double by 2017, in spite of a 10.2% vacancy rate in 2013. Clearly, future growth and the consequent anticipated shortage of supply point to a stampede of new openings over the next three years, but this will be highly localised and indeed specialised.

The city of Marica, Ponta Negro near Rio, is seeing Terminal, Marica a surge in industrial

development to serve the Libra and Lula offshore oil fields 200 km off the coast. The naval complex at Jacone beach, meanwhile, is being redeveloped by DTA Engenharia at a cost of $2.5bn and renamed Terminal Ponta Negra.

It will become the leading onshore seaport in South America, capable of berthing even the biggest oil tankers. It will also be linked by a 45 km pipeline to the Comperj refinery in Rio. Meanwhile, the Marica city authorities are promoting the development of a nearby site into a major logistical hub to house support facilities for the new seaport operations. The 2.5 million sq m site will host a range of activities, from warehouses with customs

Future growth and the anticipated shortage of supply point to a stampede of new openings over the next three years houses to small industries active in the oil exploration and production sector.

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COME TO WHERE THE OPPORTUNITIES ARE. COME TO MARICÁ.

Maricá is a Brazilian city surrounded by a beautiful nature and many opportunities for the world of business. Maricá is located only 60 km from the center of Rio de Janeiro, a strategic location, and is embedded in a cycle of accelerated development.

It’s an oil producing city, 360 km2, 134,000 inhabitants, Southeast Atlantic coastline, facing the main oil wells of the pre-salt layer.

If you look for opportunities in the oil producing business, you can find them in the construction of Ponta Negra Terminal, a seaport of US$ 2,7 billions, capable of docking ships with 30m deep hull. Previewed to handle 850,000 oil barrels a day. With the new port modernization law private enterprise can handle containers, transforming the city in one of the biggest entrepreneurial logistic center of the whole state. Natural liaison with the COMPERJ (Complexo Petroquímico do Rio de Janeiro), the oil complex of Rio de Janeiro, that will be the most up-to-date in South America.

If you look for opportunities in social investment, environment and in infrastructure, Maricá is the right place. The Pre-salt’s royalties (preview of US$ 500 million/year, starting in 2016) will be mainly invested in social and environmental areas. Several projects of infrastructure are undergoing.

Construction of a heliport. Local airport will have landing strip increased to 1.800m, capable of receiving large airplanes, with the forecast of attending 68,000 passengers/year and handle 4,100 tons of cargo.

And if you look for opportunities in tourism, you just

found one of the greatest wonders of nature. 46km of beautiful beaches, a dazzling lagoon complex that will have canals linking all the lagoons, allowing navigation. Railroad transportation parallel to the beaches, with future integration to the city of Niterói, RJ. Marina in Ponta Negra, for vessels up to 56 feet. Big lodging complexes, resort, a Spanish investment with 820ha.

Maricá is a big opportunity for your investment.

Don’t miss it.

Meet us at stand No 16.18/18.15, level 01

VII

The path to investment in Brazil T h e Cofeci-Creci System is the main partner for investors interested in the real estate business in Brazil.

With over 50 years of experience, it is the federal agency responsible for regulating and monitoring the market for real estate transactions, in particular the role of real estate agents.

«The Brazilian real estate market consists of approximately 280 000 professionals and 36 000 real estate companies,» says the chairman of the Cofeci-Creci System, Joao Teodoro da Silva, recognized

as the ambassador of the Brazilian real estate market abroad.

After the United States, Brazil is the leading country in the world in number of organized professionals in real estate. The sector is responsible for about 18 % of the Brazilian GNP. The seventh world economy is still driven by the segment, either by demands for housing, commercial and industrial properties and properties for tourism investments of all sizes.

«Brazil is a safe destination. The country remains promising, with great rising prospects in the years ahead. There are investment options in real estate for all profiles. We are increasing the sector of infrastructure and logistics, with the expansion of the ports. We have a program for popular housing which is a priority in the government’s policy. These are initiatives that may attract small, medium or large investors, influencing the whole real estate economic chain, including construction», says the chairman of the Cofeci-Creci System.

investments with a safe return. In contrast, we have some well-known natural landscapes, and others to be uncovered, which constitute a tourism potential capable of attracting visitors from all over the planet. And to complement the context of a safe and stable economic and political framework, we have the Brazilian people, receptive, smiling and used to receive foreigners with much kindness», Teodoro added.

To operate in the Brazilian real estate market , foreigners should seek partnerships with Brazilian professionals. The Cofeci-Creci System is the only institution legally entitled to grant a license to operate in the real estate market. The entity is present throughout Brazil, with its headquarters in Brasilia, the capital (in the Federal District) and Regional Councils - the Crecis - in all states of the federation.

«The large cities are among the highest commercial real estate valuations of the planet. These are

The Brazilian Chamber of the Construction Industry (Câmara Brasileira da Indústria da Construção – CBIC) has represented the Brazilian construction sector and real estate market at the national and international levels since 1957. Currently, we have 72 members distributed through Brazil, which together represent a variety of segments, including: infrastructure, construction, and real estate development, in addition to specialized construction services.

Dialogue represents the heart of our work, allowing us to articulate and coordinate with all stakeholders engaged in the construction supply chain. One of our distinctive features centers on our long-standing efforts to integrate the supply chain. In fact, the initiative has enabled us to support the development of projects by the public sector with a direct and indirect benefit on the lives of all Brazilians.

CBIC coordinated Moradia Digna (Dignified Housing) initiative, which spurred the federal government’s development of the Programa Minha Casa Minha Vida (My Home, My Life Program). Since the Program’s inception, we have contributed significantly to the ongoing development of this ambitious state policy, recognized as the best model implemented to date in

Brazil for the construction of social interest housing.

Indeed, Minha Casa Minha Vida has produced a paradigm shift in the effort to address Brazil’s housing shortage by combining the goals of government social policies with those of economic stimulus programs.

To learn more about us go to www.cbic.org.br

mipim

NEWS EUROPE’S STUDENT MARKET SHOWS POTENTIAL THE CHALLENGE for institutional investors of finding attractive investment opportunities has increased significantly in recent years, according to Bouwfonds REIM, which has pointed to the potential of the “largely neglected niche” of the European student housing market.

Bouwfonds REIM said that “selected investment based on solid research of opportunities can provide a valuable addition to the real estate component in investment portfolios” and as a result it has produced a report, entitled Investing In European Student Housing. This focuses on Bouwfonds’ three core markets of France, Germany and the Netherlands as well as the UK, the only country in Europe with a liquid student housing investment market.

Attractive general investment characteristics include strong yields, a sizable market and stable demand, plus an anti-cyclical nature and a favourable risk profile.

Bouwfonds said: “If we combine our outlook for domestic and foreign students, we estimate that the total number of students in Germany, France, the Netherlands and the UK will increase by 3.3% between 2011 and 2025.”

The time is right for Spain as investment volumes soar

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PANISH retail investment volumes reached approximately €850m in 2013, representing a three-fold increase compared with the €320m transacted in 2012, according to Savills. The international real estate advisor attributed this rise in part to increased activity from international funds and said that many institutional investors believe that the time is now right to invest, notably in Madrid and Barcelona.

US, French, UK and German funds, plus capital from Latin America, moved into Spain during 2013 and Savills forecasts investment in this sector will reach €500m in the first half of 2014.

Luis Espadas, head of capital markets at Savills Spain, said: “Prime shopping centres continue to be most in demand, par-

WHAT is understood to be the first ‘designer outlet resort’, Centerfalls will open in the affluent Metn neighbourhood of Beirut in spring 2016. Overlooking the city and the sea, Centerfalls will include fine dining restaurants, a nightclub, an infinity pool and a huge waterfall that will originate from beneath the roof terrace and descend four levels into the 30,000 sq m GLA retail

Savills’ Luis Espadas: Specialists may turn to secondary opportunities

ticularly for foreign investors, who dominate investment into this asset type. Shopping centre deals accounted for 51% of the retail investment volume in 2013,

development, creating the largest waterfall ever to be built in a shopping destination.

Centerfalls is being developed

by Lebanese-based Sidcom and designed by retail architect Design International and the retail will be divided into three main areas: the resort which will include fine and casual dining; an entertainment, culture and personal healthcare zone; and a designer outlet,

but supply remains scarce. Consequently, specialist investors are also looking to consolidated centres in secondary cities as a good alternative.”

The current level of available retail space in Spain is 14.78m sq m, with 160,000 sq m of new space delivered in 2013.

Going forward, Savills expects approximately 300,000 sq m of new space to come on the market over the next 24 months.

Key developments scheduled include: the 70,000 sq m retail park in Torrecardenas, Almeria,

by Bogaris which is due to open in 2015; the 48,000 sq m Avenida M-40 shopping centre in Leganes, Madrid, scheduled to re-open in 2014; and the 45,000 sq m Cruce de Caminos retail complex in Sagunto, Valencia, developed by Grupo Lar.

including luxury clothing, electronics, pop-up shops and a gourmet market.

Davide Padoa, CEO of Design International, said: “What excites me the most about this project is the ambition to design a shopping destination with all the tricks that are normally used in a successful hotel, with the panoramic view and a gorgeous lobby as the key elements of the development.”

Retail meets resort at Centerfalls, opening in Beirut in 2016

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NEWS RENDEZ-VOUS

Risk back in fashion as competition increases

I MIPIM 2014 #11-14 MARS #ESPACE RIVIERA #R31-23

NVESTORS will “move up the risk curve” as competition for core assets intensifies, according to Emerging Trends In Real Estate 2014, a report by PwC and the Urban Land Institute (ULI) on the global outlook for real estate.

The report shows that direct investment in property is almost back at pre-financial crisis levels, with sovereign wealth fund and institutional capital from Asia pouring into markets around the world.

One consequence has been a surge in prime property prices in major cities, say PwC and the

ULI, which will present their conclusions to delegates at a panel session this morning.

Simon Hardwick, partner and head of legal at PwC Legal, said “unprecedented competition” for core assets is forcing investors to broaden their horizons. “They may have to look at other opportunities and accept more risk,” he added.

The global study draws together the viewpoints of senior property professionals originally interviewed for the annual Emerging Trends In Real Estate US, Asia and Europe reports, which were published in their respective regions in late 2013 and early 2014.

Birmingham out in force THE UK city of Birmingham is back at MIPIM with its largest ever team.

Unveiling a range of projects, including the New Street station scheme, which has been shortlisted for the MIPIM People’s Choice Award, Birmingham will hold 13 events during the exhibition.

The major railway station scheme is key to Birmingham’s investment opportunities, with £600m (€720m) worth of investment being spent on totally revamping the transport hub in the centre of the city. The project will bring a wave of new commercial space to the UK’s

©Euroméditerranée • www.next-creation.com

Chinese to double spend in UK

CCI MARSEILLE PROVENCE

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second largest city, which is home a wide range of investment and development activity.

Birmingham City Council leader Albert Bore said: “Our presence will be bigger than ever at this year’s MIPIM as we show how Greater Birmingham is rising to the challenge in the global race for investment. We are looking forward to telling our story to the world at this year’s event.”

Birmingham is inviting investors from across Europe to attend a series of events held throughout MIPIM designed to showcase the range of opportunities on offer.

THE SIMPLIFICATION of the visa process for Chinese visitors to the UK could see spend by this consumer group more than double by 2020 to close to £500m (€600m) per annum, advisor Savills said.

The real estate advisor said the growth of Chinese shoppers could increase spend in London by 141% over the next six years.

Total overseas spend in the UK capital is expected to expand by 47% over the same period.

Marie Hickey, associate director of research at Savills, said:

“The Chinese are now the biggest spending travellers globally and the retail sector should see a positive impact, with London set to benefit the most.”

Savills predicts that occupational demand will put upward pressure on rents on all key pitches in London’s West End. Over the next 18 months Savills expects Bond Street prime Zone A rents to exceed £1,500 per sq ft (€16,146 per sq m), 15% up on current values, with Brompton Road likely to see the greatest uplift at around 20%.

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Record recovery in sight for UK logistics market

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HESE are the findings of research by property consultancy Lambert Smith Hampton. The latest edition of its annual Industrial & Logistics Market report reveals that takeup increased by 24% to 94.2 million sq ft in 2013. This was in response to the economic recovery, an improving manufacturing sector, the ongoing drive by retailers to streamline their supply chains and a growing appetite from logistics businesses serving the burgeoning e-commerce industry.

The report also finds that improving occupier appetite, combined with a lack of devel-

www.strabag-real-estate.com

opment activity that stretches back to before the global financial crisis, has led to a shortage of top-quality space in much of the country. Grade A now represents just 9% of total available supply, down from a peak of 29% in 2008.

As a result, Lambert Smith Hampton forecasts that over 2 million sq ft of space could be built speculatively during 2014 — the first meaningful volume of activity since 2007/8.

Although this represents a significant increase over recent activity, it accounts for only 7% of current grade-A availability and is unlikely to stem the upward pressure on rents.

Otto takes Sonae Sierra stake

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LEXANDER Otto, CEO of German shopping centre specialist ECE, has expanded his business activities to Brazil as a shareholder in Sonae Sierra Brasil.

Otto will acquire his stake from US-based DDR Corporation.

Its 50% share in a joint ven-

ture with Sonae Sierra has been valued at €240m and this joint venture in turn owns 67% of the listed Sonae Sierra Brasil company, as well as a significant share of Parque dom Pedro, located in Sao Paolo.

Sonae Sierra Brasil currently operates 12 shopping centres, 10 of which are owned by the company and two by third parties, with a portfolio of 502,000 sq m total leasable area.

“I am pleased that, with the share purchase of Sonae Sierra Brasil, we can invest in South America for the first time,” Otto said. “In a challenging market environment in the emerging markets we have the opportunity to bring our global expansion a big step forward. I see good growth in this dynamic market.”

The transaction is expected to close at the Alexander Otto: Brazilian acquisition to bring end of March 2014. “global expansion a big step forward”

CHOOSE THE NUMBER ONE

The Dancing Towers already are number one on Hamburg’s most famous street. Now they are to become the number one at MIPIM. Their bent façade is breathtaking, and their address – Reeperbahn 1, Hamburg-St. Pauli – is a place where creativity, modernity and urbanity come together. The tango-dancing high-rise has made it into the finals at MIPIM. Now it’s your turn: help make us the number one at MIPIM! Vote for the Dancing Towers in the category of Best Office & Business Development.

STRABAG Real Estate GmbH www.strabag-real-estate.com

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NEWS All aboard

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Realogis launches German logistics fund worth €250

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NVESTMENT manager Realogis Real Estate has launched an open-ended logistics fund for institutional investors.

The Realogis Real Estate Logistics Fund – Germany, is targeting a volume of about €250m and the first closing of €75m equity is scheduled for the end of 2014.

Logistics property offers attractive returns of between 7% and 9% in the top locations, 2% higher than other real estate classes, Realogis said. This is combined with a stable lettings market with low levels of vacancy, while macro trends such as globalisation, increased levels of outsourcing and demographic change, also help to sustain interest in logistics property investments.

Three-day warning before your building collapses

© GennadyPoddubny/iStock/ThinkStock

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The fund will target institutional investors and is established as a real estate special fund with a core-plus risk profile. “Large fund houses, institutional investors and endinvestors have been approaching us in their search for indirect investment opportunities.

This interest and our knowhow induced us to start the Realogis Real Estate Logistics Fund – Germany,” said Realogis Real Estate managing director Bodo Hollung. “Realogis Real Estate is the only fund issuer in the German-speaking region with its sole focus on logistics real estate, that is independent of banks,” Holling added.

The fund is targeting dividends of more than 7% per year and already has a pipeline of properties lined up.

TRUCTURAL health surveillance specialist Osmos will be demonstrating its technology as part of the Innovation Forum at MIPIM this week.

The company’s LIRIS Optical Cord is an embedded wireless system comprising a compact wireless mini-station that can be installed into a building within ten minutes and is already used to monitor famous landmarks such as Paris’ Eiffel Tower and Barcelona’s Sagrada Familia.

Through its continuous monitoring the system detects, in real time, structural weaknesses in all types of buildings and can predict the collapse of a building three days before it will happen.

It collects

static and dynamic data to ensure the building being monitored is behaving normally or to prove that it is being subjected to unforeseen or unusual pressure. The system triggers an alarm or light signal at the site if the LIRIS alarm module detects that a threshold previously set using the software has been breached, allowing the building to be evacuated if required.

The technology is already used to survey more than 3,000 structures in 24 countries across the world. Osmos was founded in 2001.

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Race is on to help job seekers back to work

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LORENCE Fontani, director of Fondation Agir Pour l’Emploi (FAPE) GDF SUEZ, explains why MIPIM and the French charity, which helps the long-term unemployed back into the job market, have joined forces to organise the solidarity race, Lend A Hand With Your Feet

Could you tell us more about the event?

Tomorrow at 07.45, a group of delegates will kick off the second day of MIPIM with a 5.5 km race on the Croisette. All the funds raised will be distributed to FAPE GDF SUEZ. What does FAPE GDF SUEZ do?

FAPE GDF SUEZ aims to promote occupational integration and workforce re-entry for longterm job seekers and those excluded from the job market. The foundation operates on a participatory organisation model.

It relies on a solidarity network consisting of GDF SUEZ group companies and their current and former employees to raise funds.

We provide financial support as well as a coaching for civil-socie-

ty initiatives that focus, above all, on businesses and jobs creation.

Employment is a priority. Helping the most vulnerable people to find jobs can change their lives.

Why organise the race at MIPIM? MIPIM represents a great opportunity for us to raise awareness among key players from a major economic sector. Real estate is also a labour-intensive industry. The foundation also wishes to extend its activities outside of France and develop new partnerships worldwide. For these two reasons, it seemed logical to associate FAPE GDF SUEZ with MIPIM, especially in the year of MIPIM’s 25th anniversary.

Leicester Leicestershire MIPIM 2014

Leveraging Successful Development Through the Cluster Effect...

A dynamic, interactive event revealing how science and R&D has driven successful development in Leicestershire.

Come and find out how the cluster effect in the science and R&D sector has boosted the property market in Leicestershire, by joining this lively and inspiring debate led by a panel of panel of experts, including: Andy Macdonald Development Director at MIRA Technology Park Professor Steve Rothberg Pro-Vice Chancellor, Loughborough University Science and Enterprise Park Dr Carl M Edwards Charnwood Biomedical Campus Duncan Green Pick Everard Compere – David Simms Publisher at the Leicester Mercury

Date: Thursday 13th March 2014 Time: 10.30am–12.30pm Venue: Esterel Suite.

Gray D’Albion, 38 Rue des Serbes, Cannes This is a badged event incendo-events.co.uk/leveragingdevelopmentthroughcluster Visit us at Stand R29.13

Florence Fontani: “Helping people to find jobs can change lives”

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07/03/2014 10:00

NEWS PAVING THE WAY TO A CLEANER, GREENER WORLD AT A MIPIM Innovation Forum workshop today, GranitiFiandre will describe the pollutionreducing abilities of a revolutionary paving material used in a new town square in the Municipality of Maranello, home of motor manufacturer Ferrari.

The square is opposite one of the most visited attractions in the region, the Museo Ferrari.

GranitiFiandre proposed the use of its Active Clean Air & Antibacterial Ceramic slabs to reduce the presence of polluting substances in the air breathed by visitors.

A study carried out by the University of Milan showed that eight hours of exposure to sunlight of the 1,088 sq m of paving used would have the same inhibiting effect on the production of nitrogen oxide as a green area of 20,000 sq m in a237_GRENOBLE_N1_PIM year.

Haagse Poort repositioned as multi-let occupier destination

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VANS Randall, the UK investment banking and private equity group, has completed a major lease renewal and new letting process totalling 50,682 sq m at its Haagse Poort office development in The Hague, the Netherlands.

The deal includes a 20,600 sq m letting to global energy-infrastructure group CB&I, which signed for new headquarters in the building in January. The CB&I letting represents the largest deal in the Dutch market in 12 months.

Nationale-Nederlanden, one of the Netherlands’ largest insurance companies and an existing tenant, has re-geared its lease, taking 30,082 sq m of newly refurbished and reconfigured space from January 2015.

The deals form part of an active asset-management strategy to

Haagse Port: from single tenant to a multi-occupancy

reposition the building as a premium quality multi-let occupier destination. The remaining 17,500 sq m of space is currently being prepared for launch to the market.

Kent Gardner, chief executive of Evans Randall, said: “These substantial lettings are part of our strategy to transform Haagse

Poort from a single-tenant to a multi-occupancy building.”

Evans Randall acquired the 60,277 sq m building in 2006, in what was the largest transaction involving a single property on the Dutch market that year. CBRE and Loyens & Loeff advised Evans Randall on the respective lettings.

MERCREDI 12 MARS / 10 H 30

BORN IN GRENOBLE

H4/22

Grenoble terre d’innovation technologique, scientifique ou sociale, métropole pionnière qui s’est développée autour de l’alliance Université-Recherche-et Industrie.

Grenoble, known for its scientific, technological, and social innovation, is a pioneering metropolis that has developed around cooperation between University-Research-Industry. À ne pas manquer : la présentation de l’i-ROAD de Toyota un véhicule ultra-compact, 100 % électrique.

présente son TVSHOW

MARDI 11 MARS / 17 H

BE IN GRENOBLE

JEUDI 13 MARS / 10 H 30

L’émission est consacrée à la qualité de vie dans la capitale des Alpes de son environnement naturel, culturel, sportif ou éducatif qui contribuent à l’attractivité économique et à l’art de vivre au cœur des montagnes.

En présence d’architectes et de professionnels de l’immobilier d’entreprise nous échangerons autour de la ville de demain…

The show is focused on quality of life in the capital of the Alps and its natural, cultural, sporting, and educational environments, which all contribute to Grenoble’s economic appeal and art de vivre in the heart of the mountains.

Avec : • Marc Baïetto, président de Grenoble-Alpes Métropole.

• Michel Destot, député-maire de Grenoble.

• Marc Chereque, président du club professionnel de rugby FCG • Yves Exbrayat, directeur de l’Office de tourisme de Grenoble • Bernard Mure-Ravaud, maître fromager, MOF, fromagerie Les Alpages • Loïck Roche, directeur Grenoble École de Management

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Not-to-be-missed : the presentation of the Toyota i-ROAD, an ultracompact, 100 % electric vehicle that will be part of a car-sharing service to launch in Grenoble this autumn- a European exclusivity !

BUILD IN GRENOBLE A discussion about the city of tomorrow with architects and commercial real estate professionals…

Fromages et Chartreuse Dégustation des meilleurs fromages de montagne sélectionnés par le Grenoblois Bernard Mure-Ravaud, champion du monde des fromagers et meilleur ouvrier de France.

Création par Ypnotik, maître du « bartending », de cocktails à base de Chartreuse, la liqueur des Alpes qui compte parmi ses adeptes Quentin Tarantino ou encore le groupe ZZ Top.

mipim

Russia and Turkey take lead in Europe’s shopping boom to go online in 2015, up 26% on the five-year average.

The majority of the new schemes continue to be developed in Russia and Turkey, with almost 50% of newly developed shopping centre space in Europe located in these two countries. Increased

development activity across the wider European region, however, will see this share of new space reduce to 34% by 2015.

In Western Europe, Germany has the largest shopping centre development pipeline over the next two years. In 2014 some 613,000 sq m

The 66,000 sq m Zorlu Center, the most notable Turkish opening in 2013

VOTE FOR GOLD! VOTE FOR KO -BOGEN!

Niehaus Knüwer and friends

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OME 14.1 million sq m of new shopping centre space will be completed across Europe during 2014 and 2015, the equivalent of 90 major shopping centres, according to global advisor JLL. Russia will have the largest share of shopping centre space in Europe by 2015, with 3.8 million sq m scheduled for completion over the next two years.

Last year 5.6 million sq m of new shopping centre space was completed in Europe, an increase of 11.2% on 2012. The pipeline for 2014 is expected to reach 7.2 million sq m, the highest level since 2008 and up 32% on the average level completions of 5.5 million sq m between 2009 and 2013.

An additional 6.9 million sq m of shopping centre space is expected 084_DIE DEV_N1à3_PIM

is expected to open, increasing to 919,000 sq m in 2015. This is significantly up on 2013, which saw 295,000 sq m of new shopping centre space coming onto the market.

Robert Bonwell, CEO EMEA retail at JLL, said: “Redevelopment is the new development for most established markets,” as tired stock loses appeal and deferred capital expenditure is released. He added: “Redevelopment of existing largescale retail assets will become a key part of asset management.”

Your MIPIM vote is a golden opportunity! Germany’s only nominated project in the MIPIM category “Best Urban Regeneration Project” by die developer & Daniel Libeskind.

YOUR VOTING SURPRISE IS WAITING FOR YOU!

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096_WALL STREET_N_PIM

The Wall Street Journal readers influence $39.7 billion in global real estate.

A Platform as Powerful as the People Who Use It. +44 (0) 207 572 2124 +1-800-366-3975

Source: Purchase Influencers in American Business, Erdos and Morgan.

Š 2014 DOW JONES & COMPANY, INC. ALL RIGHTS RESERVED.

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NEWS

New hotel complex takes Hamburg redevelopment centre stage at Olympia continues to take shape

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RCHITECT ColladoCollins has secured consent on three substantial planning applications that form the latest phase of the redevelopment of the Olympia exhibition centre in London, which is owned by Earls Court & Olympia.

The applications include a new 242-bedroom G-Gate hotel, new Grand Hall entrance pavilion and improved public realm on Olympia Way. The hotel will be located on the former marshalling yard adjacent to Olympia Central and West Hall on Hammersmith Road. The new Grand Hall entrance pavilion replaces two tiered buildings on Olympia Way and will be set in front of the listed Grand Hall facade.

The comprehensive new public realm area planned for Olympia 149_ALTAREA_N1a3_PIM Way will enhance visitors’ ar-

rival experience at the venue and encompass new street furniture and lighting as well as new pavements and road finishes, together with a new cycle path.

This latest phase follows ColladoCollins acting as lead design consultant on the building of West Hall, creating two new floors of exhibition space, and the total refurbishment of the original Empire Hall which was completed in February last year.

The 242-bedroom G-Gate hotel is one of three planning applications to have gained consent in the redevelopment of the Olympia exhibition centre

FINALIST

BEST REFURBISHED BUILDING

2014

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ONST RUC T ION is due to get underway on nine projects this year as a part of a major long-term masterplan to transform part of Hamburg.

The developments, part of the HafenCity project, will add

The HafenCity project in Hamburg, Germany

180,000 sq m of space to the overall scheme, a significant urban plan to transform over 157 ha of former port and industrial land.

Representatives of the development agency behind the masterplan, along with key figures from the city of Hamburg, are at MIPIM to promote the development and seek further investment into the project.

Phased developments completed since 2000 have attracted some 2,000 residents and 9,000 workers to the area, which is already home to nearly 500 businesses.

Due for completion in 2025, HafenCity will form a major new district of the city, including 6,000 homes, 28 ha of public space, a 10.5 km dockside promenade and a 3.1 km embankment on the river. It will expand the city of Hamburg by 40%.

TRANSFORMING A LOCAL LANDMARK FROM THE PAST INTO THE FUTURE. VOTE FOR INTERCONTINENTAL MARSEILLE HOTEL-DIEU ON WWW.MIPIM.COM

Hotel-Dieu InterContinental Marseille – Hotel Dieu Nominated at MIPIM Awards – Best Refurbished building g category g y Transforming an 18th century hospital so steeped in history into a superb 5-stars hotel was a real challenge. Everything noteworthy in the former Hotel-Dieu had to be restored, enhanced and preserved to transform it into an InterContinental Hotel ready to host international visitors for the opening of Marseilles, international capital for culture. Altarea Cogedim and AXA Real Estate made it possible respecting the highest international standards: 23,200 sqm were refurbished in a stylish and contemporary design. It has been amongst the first historical building to reach the highest environmental labels making Hotel-Dieu a unique place to stay in the heart of Provence.

www.altareacogedim.com

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mipim

NEWS EUROPEAN SERVICEDAPARTMENT MARKET SET FOR 50% GROWTH THE EUROPEAN servicedapartment market is set to grow by 50% over the next two years, new research from real estate advisor Savills has revealed.

According to Savills, the current constrained supply across key gateway cities such as London, Paris, Frankfurt, Amsterdam and Brussels will help to fuel growth.

Singapore operators Ascott and Frasers are planning to open sites in Frankfurt this year, and Staycity is planning to expand to 5,000 apartments across Europe by 2019, including new serviced units in Venice, Lyon and London. Marie Hickey, associate director of commercial research at Savills, said: “Some operators are moving away from the long-stay corporate market and are tapping into shorter stay guests, particularly as businesses’ reliance on travel-management companies wanes.”

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Transbay Tower ticks all the boxes for a prime destination

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A N F R A NC I SCO’s Transbay Tower, designed

by Pelli Clarke Pelli Architects and co-developed

by Hines and Boston Properties, is among the major US schemes on show this week.

Located on Mission Street between First and Fremont, the building is adjacent to the city’s new trans-modal hub, the Transbay Transit Centre, which when completed will be the ‘Grand Central Station of the West’. This location offers rapid connectivity to nearly every form of mass transit in the Bay Area.

The tower will be one of two buildings with direct access to the elevated 5.4-acre (22,000 sq m) City Park atop the Transit Centre, creating an ‘urban vertical campus’.

Transbay Tower features ad-

vanced building design and construction techniques, which the developers hope will ensure its status as a prime destination.

With 61 storeys and 1.4 million sq ft (130,000 sq m) of office space located on a rare full-block site, the tower will provide both scale and growth opportunities.

Outside air intakes on every floor and single-direction air movement

create a breathing building that circulates fresh air and supports the wellness of each occupant.

Thirteen feet-high ceilings and 10 ft-high continuous clear-glass window lines allow natural daylight to infuse and access the interior spaces. Typical floor-plates are 25,000 sq ft and entirely column free, with a raised flooring system for maximum flexibility of layout.

San Francisco’s 61-storey Transbay Tower: well connected

Architectural Puzzle of Latest Decades Solved Everybody knows that an apartment with a large sunlit green terrace is one of the rarest and the most demanded types of urban residences.

It is quite obvious, as this apartment type allows to maintain the so much needed daily contact with nature without tiresome long-hours journeys to the countryside, even in the aggressive pace of life of big cities.

However, all attempts to find a universal commercially viable architectural formula for the construction of multi-apartment buildings where each apartment would have its own green spacious terrace led to construction of low-profit stepped buildings with variable number of floors, or had reduction of natural lighting in apartments or lack of privacy at the terraces.

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Everything has changed, after a Russian non-professional architect Alexander Malyshev (pseudonym – Alexander Createric) managed to solve this architectural puzzle.

Now, investors and constructors all over the world, after buying the relevant license from the author, receive an opportunity to develop and construct conceptually new houses. Vertical houses, where each apartment has its own spacious and, what is more important, private terrace with a lawn and a garden with large trees (> 5 m), hidden from the neighbors. If the climate allows it, the terrace can have a normal, deep pool. At the same time the apartments do not lose their natural lighting, they remain one-story(non-duplex) apartments and retain standard ceiling height (for example, 3 m) and the buildings themselves do not require large plots of land and may be built in very constrained conditions.

If we are to make a prediction for the next 10-15 years, there is enough evidence to believe that this type of buildings, named Ecoterrause by its author, cannot just improve the ecological situation in big cities, but can take a dominant position on the market of new buildings by offering the customers the highest level of comfort of the urban life with the prices lower than the prices of penthouses.

Even if the investor doesn’t gain in the gross area of apartments, he gains in money, selling apartments with terraces twice as fast as ordinary ones.

To learn more about this simple, but efficient solution is possible at the author’s web-site: www. labcreaterics.com

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Welcome to TO the belgian pavilion 436m² exhibiting exhibiting space 105companies 5th main

delegation at mipim

the belgian

beer bar

do not miss: tuesday March 11th: 18h - 19h30 official inauguration of the belgian pavilion wednesday March 12th: 12h - 13h30 belgian cocktail and a comprehensive programme of conferences and networking events, available on MIPIM website & MIPIM app | www.mipim.com

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companies

Main entrance

Théâtre Debussy/ Belgian Pavilion

Discover the Belgian Pavilion, a new exhibition hall for the Belgian community at MIPIM 2014. MIPIM delegates interested in the Belgian market can connect during the many events and seminars. The Belgian Pavilion includes a dedicated conference room with a busy programme. www.surrealestate.be @sur_real_estate

In partnership with:

Contact: Francesco Pupillo | +33 1 79 71 97 74 | francesco.pupillo@reedmidem.com Untitled-1 1

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Just Imagine: Real Estate 2030 Tuesday 11 March 2014 17:30-18:30 followed by cocktail reception offered by RICS Red Room, Level 3, Palais des Festivals, Cannes We all have a stake in the future of the real estate and built environment profession. RICS is leading a programme of work to look at the world in 2030, which aims to offer clear recommendations on how businesses can plan now to maximise future opportunities and mitigate unforeseen risks.

We are establishing a dialogue with those involved in real estate and the built environment, and those affected by it. We want to inspire original, insightful and focused thinking about what we should start doing NOW to ensure that in 2030 the physical world and the markets underpinning it are in a vibrant and sustainable state.

Michael Newey

Eric Dahl

Prof. Hugh Kelly

Keynote Address: Michael Newey FRICS – President, RICS Panel: Eric Dahl – CEO, World Trade Centers Association Prof. Hugh Kelly CRE FRICS – Chairman, Counselors of Real Estate; NYU Schack Institute of Real Estate Steve Norris FRICS – Chairman, BNP Paribas Real Estate UK and Soho Estates; former Minister and London Mayoral candidate Markus Reinert FRICS – Head of Property, Cushman & Wakefield EMEA Neil Singer FRICS – CEO, Singer Vielle Moderator: Sean Tompkins – Chief Executive, RICS

Steve Norris

Markus Reinert

Neil Singer

Sean Tompkins

RICS members are invited to make use of the RICS stand (R29.32 Riviera Hall) to host their meetings, enjoy refreshments and network with fellow members.

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NEWS ASIAN TOWERS TOP INDEX OF SKYSCRAPERS ASIAN skyscrapers dominate a new index of the world’s most expensive high-rise office space.

Knight Frank’s Skyscraper Index calculates commercial value through an analysis of the capital value of upper-storey floor space.

These upper floors typically command premium pricing in the leasing market.

Using these criteria Asia dominates the top 10, with Hong Kong boasting the most expensive skyscraper space in the world at $69,222/sq m (€49,907/sq m), followed by Tokyo ($42,283/sq m). In third place, Manhattan ($25,740/sq m) is the highest placed North American city, and fifth-placed London ($23,767/sq m) tops the European league.

The research indicated that, while Hong Kong and Tokyo are too far ahead to lose first and second place, some competition is expected among Manhattan, London and Singapore in the coming year as a result of economic uncertainty in emerging markets.

This could see some of the Asian cities slide down the table with more western cities on the rise.

HSH NORDBANK SHOPPING FOR MALLS GERMAN bank HSH Nordbank has provided funding of €270m to the Morgan Stanley Real Estate Fund Global to back the purchase of four shopping centres in the Berlin and Dresden regions.

The malls cover a total floorspace of 214,000 sq m, with each sitting in metropolitan areas of Berlin and Dresden.

The fund is part of Morgan Stanley’s real estate investment arm, which was established in the early 1990s. Since then it has amassed assets of over $187bn (€134.7bn) across 36 countries.

Tenants happy with industrial market, Poland study says

T

HE MAJORITY of tenants for warehouse and production space in Poland are content with their current arrangements, according to research conducted by Colliers International.

The survey results are published in a report, Industrial Market From The Tenants’ Point f iew, which identifies the needs and e pectations of tenants and trends in the Polish industrial market.

The ma orit of respondents were satisfied or er satisfied with their current lease terms. Only 6% of respondents stated that the currently leased area does not meet their e pectations The study shows that the most significant factors taken into consideration in the leasing process are financial aspects and location, which were marked as very important b the ma orit of respondents 6 and respectively).

Meanwhile, half of the respondents admitted that o er the ne t three ears, the plan to change their current location. The reason for this decision included the need to lease more space, consolidation, cost savings, a better location plus corporate policy.

“One of the most important factors taken into

Colliers International’s Tomasz Kasperowicz

account by the tenant in the decision-making process are the costs. The longer the term of the lease, the lower the price per square metre,” said Tomasz Kasperowicz, partner, industrial and logistics agency at Colliers International in Poland.

“It should be noted, however, that due to the observed decrease in the vacancy rate in many regions in Poland, which is a consequence of the lack of speculative investments, it is currently less likely that price concessions can be achieved from developers.”

Friargate plan links Coventry THE ENGLISH region of Coventry and Warwickshire is promoting the Friargate mi ed use scheme at This 00,000 sq m office led mi ed use de elopment will link Coventry train station with the city centre, in a location which is at the very heart of local and national transport connections. omprising efficient and sustainable buildings including grade office buildings,

two hotels and new residential dwellings, the riargate pro ect will generate up to ,000 jobs across a range of sectors. All elements of the new development will be linked by lively streets with ground oor retail, restaurant, cafe and bar units set within immense public spaces. With its city-wide access, the scheme is designed to facilitate further urban renewal beyond the masterplan area.

Coventry’s Friargate scheme

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NEWS BREEAM STATUS FOR LUMEN AND SKYLIGHT OFFICES THE LUMEN and Skylight office buildings — part of the Ziote Tarasy complex in Warsaw owned by Europe’s largest listed property company Unibail-Rodamco — have become the first buildings in the Polish capital to be awarded BREEAM In-Use International certification.

The buildings, which comprise around 45,000 sq m of A+ space, achieved an excellent rating in the BREEAM Building Management category and a very good rating in the Asset category.

The green certification system factors in energy and water use, carbon emissions, the application of eco-friendly solutions and materials, and the health and wellbeing of occupants, as well as building management.

In the Lumen and Skylight offices, traditional lighting was replaced with LED lighting.

Other features included rainwater collection tanks to be used for plant watering and a building-management system (BMS) controlling mechanical and electrical devices to reduce water and energy use. Amenities for cyclists, including showers and lockers, as well as an electric car charger for both tenants and guests were also introduced.

JLL is the letting agent for the office complex.

Part-Dieu is on track to host Lyon’s ‘station of the future’ Part-Dieu is at the heart of Lyon’s revitalisation programme

S

EVERAL major facelifting projects are under way in Lyon, France’s great inland port on the junction of two of Europe’s biggest rivers, the Rhone and the Saone.

The Part-Dieu area of the city in particular, where more than 2,200 institutions employ 45,000 employees, is at the heart of the revitalisation programme. The train station and its surrounding area constitute the strategic perimeter of the Part-Dieu district, positioning it as a metropolitan

hub. This central space — the focus of the most significant short- and medium-term developments — is being prepared to absorb the predicted growth in rail traffic: 220,000 passengers are forecast in 2030 compared to 125,000 today.

Demolition of the building situated in the middle of Place Beraudier, the development of Place de Francfort, the construction of a four-star hotel with 450 rooms and 95,000 sq m of office space are the highlights that prefigure this ‘station of the future’.

Other projects in the Part-Dieu district include the Incity Tower, which involves the demolition of the UAP tower on the corner of Cours Lafayette and Rue Garibaldi and the construction of a tower 200 metres high with 42,000 sq m of office space. Construction is in progress with completion slated for 2015.

SKY 56 is a 56-metre high building in the heart of Lyon-Part-Dieu developed by Icade and Cirmad.

The building, due to be finished in 2016, will offer approximately 30,000 sq m of floor area.

All GO! for Schools Of Tomorrow ONE OF the leading players in the educational field in Belgium, GO! Onderwijs van de Vlaamse Gemeenschap, run by the Flemish community, is in Cannes with its Schools Of Tomorrow project.

GO! recently appointed 66 architect teams to develop 200 new school buildings with a focus on modern design, property management, space optimisation, flex-

ibility and energy management.

The vast project will be supported by the implementation of an integrated real estate and facilitymanagement software platform called myMCS. Data related to the existing 3,000 buildings, along with the 200 new school buildings, will be entered and managed in detail in the myMCS software system.

The construction project and the software implementation throughout the entire organisation will be completed by 2016.

Despite being financed by the state, GO! functions independently from the Flemish education ministry. It brings together 28 groups of schools, approximately 1,000 educational institutions, some 3,000 buildings, and

GO! set to develop 200 new school buildings

around 300,000 students and 32,000 staff members.

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NEWS

Koneser plans breathe new life into vodka distillery Warsaw’s Praga Koneser Centre was once home to the Koneser vodka distillery

O The Riedenburg Sternbrauerei block of apartments in the centre of Salzberg

IN TOUCH WITH NATURE AUSTRIAN real estate advisor UBM Realitatenentwicklung is showing the Riedenburg Sternbrauerei block of apartments and penthouses, which has been built in the centre of Salzberg, Austria’s gateway to the Alps.

Designed by New York architect Hariri & Hariri the Riedenburg Sternbrauerei block is positioned at the edge of the town’s historical centre under the Rainberg cliff face.

The building uses natural stone on its facades, which are designed to harmonise with the surroundings.

The focus of the penthouses is the communicative living zone whose room-high windows provide a seamless transition to the generously dimensioned roof terraces.

NE OF the latest examples of the reintegration of post-industrial buildings back in to the urban fabric is Warsaw’s Praga Koneser Centre, once home to the Koneser vodka distillery where worldfamous brands of vodka such as Wyborowa and others were produced. Now the works and factory buildings are being converted to residences, retail and ,000 sq m of offices Three architectural firms are in ol ed uvenes Projekt; ARE; and Bulanda & Mucha Architects. The developer is Poland’s BBI Development Co. The Praga Koneser Centre project is claimed to be the only investment of its kind in Warsaw. It includes revitalisation and adaptation of the industrial buildings of the factory including the old ordegarda, ectification, Filtration and Spirit Warehouse buildings,

using authentic architectural elements of the factory.

The remaining part of the factory site will be filled with modern buildings nside the building comple there will be apartments, offices, galleries, a shopping arcade, restaurants and cafes. The complex will also have its own underground car park.

The factory buildings are situated in Warsaw’s Praga area where a melting pot of Polish, Russian and ewish culture created a special character and a specific atmosphere t attracts the city’s residents, tourists and investors searching for an authentic source of city life as well as new business development perspectives.

It is also being promoted by its proximity to the city centre and the convenient access to public transport. And a useful travel and access bonus will be the opening of a new Warsaw Metro station nearby later this year.

Lakeside homes built from paper AFTER a hundred years of paper and board production, the old polluted paper mill property in Orebro in central Sweden — covering 15 ha — is set to be transformed into an area with 1,300 contemporary apartments with views across Lake Hjalmaren.

With its lakeside location within walking distance of Orebro city centre, the area offers a good quality of life. It also offers an opportunity for Orebro to establish a closer link with Lake Hjalmaren.

At MIPIM Orebro Municipal Authority is looking for partners interested in developing the area and investing in Orebro.

The paper mill in Orebro will be transformed into 1,300 apartments with views across Lake Hjalmaren

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Pendant le MIPIM® le magazine Business Immo sera diffusé dans les plus grands hôtels de Cannes !

3.14, 355, Carlton, Croisette Beach, Crystal, Gray, Grand, Majestic, Marriott, Martinez, Novotel, Park & Suite, Resideal

Le magazine sera aussi : • sur le stand Business Immo 08.26 • dans les racks presse du salon

Connecting Real Estate www.businessimmo.com

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07/03/2014 11:08

NEWS

Martins secures planning Emaar showcases green developments in Egypt for new Chelsea scheme

M

ARTINS Properties has secured planning consent for a £12m (€14.5m) redevelopment of a former drug rehabilitation centre in the heart of Chelsea, London.

The mixed-use scheme by KSR Architects will comprise townhouses, flats and a retail unit.

The 28,100 sq ft (2,610 sq m) property has been vacant for more than five years and will now be given a new lease of life. Work will start on site later this year with completion due in mid-2016.

Martins Properties is at MIPIM for the first time this year. A family-run investment company in Central London, it specialises in retail, residential and commercial development and has recently widened its focus from Chelsea MIPIM14_NEWS_1:4_OULU.pdf 1

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London calling: Martins Properties will be looking for joint venture partners for London schemes

to include opportunities in the City fringe and East London.

Tom Martin, managing director at Martins Properties, said: “We are attending for the first time to help grow our portfolio, find likeminded joint-venture partners and explore new opportunities.

With 40 projects in Central London under our belt, we’re here seeking to expand our asset management and developed portfolio with income-led, long-term London investments, particularly schemes of up to £50m.”

2/19/14

15:33

EMAAR’s green credentials are on show this week with Mivida, its $860m (€620m) housing community in New Cairo, a new academic and residential satellite of Cairo.

Developed by the Dubai group’s Egyptian subsidiary, Emaar Misr, and designed by architect JZMK, the 6.5 ha scheme is close to the American University campus.

Mivida includes a mix of residential, commercial and leisure facilities interlinked through green walking trails, centred around a 0.3 ha central park that allows residents to take advantage of an outdoor experience. Other elements of the community include playgrounds, community centres, a business park with 150,000 sq m of office space, hotels and boulevard-style shopping. The architecture is said to have been 214_WRASAW_N1_PIM inspired

by Santa Barbara in Cal-

Mivida is Emaar Misr’s green residential project in New Cairo

ifornia.

Emaar identified Egypt as a key market for growth and has four ongoing projects: Uptown Cairo, Marassi, Mivida and Cairo Gate.

As a result Emaar Misr is one of the largest foreign direct investors in Egypt’s real estate sector with an investment portfolio of $7.97bn.

WE LOOK FORWARD TO SEEING YOU AT OUR STAND NO. LR4.02.

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NEWS CHEESEGRATER APPROACHING COMPLETION BRITISH Land and Oxford Properties have released new images of the landmark Leadenhall Building, known as The Cheesegrater, taken by renowned helicopter photographer Jason Hawkes. The building, which approaches practical completion this summer, is the tallest skyscraper in the City of London. It is already 53% pre-let, with US insurers Aon and Amlin and international serviced office provider Servcorp confirmed as occupiers.

Poblenou, Barcelona letting is city’s largest since 2012

ADP has taken a seven-year lease at Benson Elliot’s Cornerstone office development

U The famous Cheesegrater building, owned by British Land and Oxford Properties is already 53% pre-let

K-BASED private equity real estate fund manager Benson Elliot has achieved the largest letting in Barcelona since 2012 with the letting of 6,800 sq m of space in its newly built Cornerstone office development in Poblenou, Barcelona.

The space, which is located in the heart of Barcelona’s modern business district of 22@, close to the crossing of Poblenou’s two principal thoroughfares Avenida

Diagonal and Avenida Pere IV, has been let to outsourced services and human resources management specialist ADP. ADP has taken a seven-year lease at the development and will occupy floors 1 to 6 of the project’s Building B. Benson Elliot agreed to forward purchase the 20,700 sq m Cornerstone office development from Banco Sabadell subsidiary Solvia in 2011, in a joint venture with Bream Real Estate. Three years

later Cornerstone represents the only major new office project expected to deliver space for occupation in Barcelona in 2014.

Trish Barrigan, senior partner at Benson Elliot, said: “This letting to ADP, and the level of interest we are seeing from other potential occupiers, validates our early decision to move forward with the project. It is also satisfying to see renewed investment interest in Barcelona, and in Spain more broadly.”

Hines set to grow UK portfolio FOLLOWING the success of its earlier presence at MIPIM US-based international real estate firm, Hines, is returning to Cannes this year with ambitious plans to continue growing its UK management portfolio.

In 2012, Hines used MIPIM as a springboard to double its UK portfolio from two to four million sq ft (4186,000 sq m to 372,000 sq m) in three years, investing

up to £1bn (€1.2bn) in office and mixed-use developments, a target the company has already surpassed ahead of schedule. The company is confident about the prospects for further growth through investment, risk and diversification.

Ross Blair, senior managing director for Hines UK, said: “Two years ago MIPIM provided us with the springboard to embark

on an ambitious programme of growth, allowing us to reposition the business and get our message across to a global audience. This year we’re confident we can leverage similar opportunities which will allow us to grow our portfolio, with our recent successes giving us license to assume more risk within the portfolio through leasing exposure and intensive asset management.”

Hines’ Ross Blair

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PROFESSIONAL is also how we’d describe the eight-storey library at the Brandenburg University of Technology in Cottbus. The building is a wellequipped, state-of-the-art communications centre and workplace designed by the Swiss architects Herzog & de Meuron.

The organically shaped glass library tower with its winding staircase really stands out from its surroundings.

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NEWS

UK portfolio acquisition GVA moves into Australasia boosts L&G investment

L

EGAL & General Property (LGP) has completed the purchase of a portfolio of 55 assets from Telereal Trillium for a total of £550m.

Backed by Royal Bank of Scotland (RBS), it brings LGP’s direct property transactions to over £3.15bn in the past year, having acquired £2.6bn and disposed of £650m.

The figures mean that L&G continues to be one of the most active investors in the UK commercial property market.

The portfolio comprises 41 retail/ banking units, 10 office buildings and four industry sites across the UK and includes a number of London properties, for example the Coutts headquarters at 440 Strand, close to Trafalgar Square.

Gordon Aitchison, director of investment and development at Legal & General Property, said: “This is one of the largest ac-

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quisitions to be successfully undertaken by a UK fund in recent years. Securing this portfolio of high-profile assets in a single transaction demonstrates the depth and breadth of L&G’s investment and principal platform, including our extensive transactional capabilities.”

Three of the assets, occupied

by UKI Insurance, will be sold to the tenant as part of the deal.

The RBS leases are subject to annual index linked rent reviews and have an average weighted unexpired lease term of 22 years.

Around 45% of the income is derived from the London assets with a further 22% coming from those located elsewhere in the South of England.

CBRE and Ashurst LLP acted for Telereal Trillium. DTZ and Slaughter and May advised Legal & General.

Rob Bould: “Australasia is a key region”

P

ROPERTY consultant GVA Worldwide is now present in Australasia following its affiliation to form GVA Franklin

Shanks.

The firm will provide professional consultancy services aligned to commercial and industrial property occupiers.

The Sydney, Australia-based firm is to be based in Sydney’s Gover-

nor Phillip Tower and led by partners Mike Franklin and James Shanks, both chartered surveyors with a combined 50 years experience both in the Asia Pacific and UK markets.

Franklin and Shanks held senior positions at CBRE, DTZ and Knight Frank before launching their own respective firms, preceding their partnership.

This affiliation follows soon after GVA Worldwide established a partnership with Asia Pacific Properties in Hong Kong and Shanghai and new partnerships in Spain, Portugal, Poland, Belgium and Luxembourg, tied up in 2013.

“As we look to strengthen our global reach, Australasia is a key region that will play an integral part both in the future growth of GVA Worldwide and as a standalone global market,” said Rob Bould, GVA chief executive and chairman of GVA Worldwide.

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NEWS

C&W confirms London offices still world’s most expensive TOP 10 MOST EXPENSIVE LOCATIONS 2014 2013 rank rank

Location

Occupancy cost €/sq m/yr

1 2 3 4 5 6 7 8 9 10

London West End Hong Kong Central Moscow CBD Beijing CBD Tokyo CBD (5 Central wards) New York (Madison/Fifth Avenue) Rio de Janerio Zona Sul New Delhi Connaught Place Paris CBD Sydney CBD

2,122 1,432 1,092 1,027 1,003 993 991 959 895 844

LA CITÉ MUSICALE DÉPARTEMENTALE

DE L’ÎLE SEGUIN Découvrez les maquettes des grands projets innovants des Hauts-de-Seine sur le stand du Conseil général des Hauts-de-Seine - stand MAR.PR22, Marina Hall

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1 2 6 7 5 8 3 4 10 9

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Source: Cushman & Wakefield 2014

Conseil général des Hauts-de-Seine - Pôle communication - © Shigeru Ban Architects Europe - Jean de Gastines Architectes - Février 2014 - NL

L

ONDON’s West End has been named the world’s most expensive office market in the world for the second consecutive year, according to Cushman & Wakefield’s annual Office Space Across The World report, published this week.

Rents rose in the West End by 5% in 2013, the report reveals, compared to an overall rise of 3% globally.

Digby Flower, Cushman & Wakefield’s UK chief executive and head of London markets, said further growth was likely in the UK capital. “With prime space at a premium in the West End and a steady demand for offices from across all sectors, significant rental growth can be anticipated in 2014,” he added.

Hong Kong — the world’s most expensive market until two years ago — retained its second-place position.

However, certain areas, including Africa and the Middle East, saw a more buoyant rental market, with rents increasing by 14%. In South Africa, prime rents rose by almost 30%.

In the Americas region, there was an overall regional rise of 1% in 2013, while Asia Pacific saw an overall regional rental rise of 2%.

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FÉVRIER 2014 – N°114

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7/03/14 17:18

VIEWPOINT BY DAMIAN WILD

25 YEARS OF MIPIM: ‘It’s still the biggest show in town’ THEY are not a big group, but you don’t have to hunt too hard to find Brits who have been to all 25 MIPIMs. Philip Lewis, the former Heron, Hines and Lambert Smith Hampton man, is one. Harvey Soning is another. Stephen Hubbard, CBRE’s UK chairman, has made it to the last 24. Others too. They’ll tell you how it’s grown, how it’s changed and how, two and a half decades since a small but committed group first gathered in Cannes, it’s still the biggest show in town.

I’ve only managed the last five, seeing only one half of one cycle.

I’ve missed the best years, some people tell me. Others, perhaps greater in number, say that’s cobblers: it’s more focused now. The children and the partygoers have been left at home; the people who are here are here to do business.

But even in the comparatively brief period that I’ve been attending, the event — and participants’ behaviour — has altered.

You could, for instance, taste the recovering sentiment in the champagne that flowed a little more freely last year. You can feel that the market has decisively turned in the thicker card used for event invites this year.

And for a look into the future, there is no better confirmation that this is a market that can move from boom to bust and back again in short order than the offer I had this month to be whisked to a report launch by branded speedboat. Clearly the good times are back. Enjoy them while they last.

There has been no shortage of highlights in my time. Boris and his ability to entertain a room like no other politician glad-handing today. The double height Qatari pavilion of 2012 was a statement of intent, looming lasciviously over the London stand for the week. The first time we broadcast an event live over estatesgazette.com in 2011, putting questions from listeners in the UK to panelists in Cannes, was another high point. (I won’t name the panelist whose technophobia convinced him I had made up the questions. Indeed, you can track how the industry has — perhaps belatedly — joined the tech revolution by how much harder it has become to catch a signal on a tablet or a smartphone on the Croisette midweek.)

Colleagues of a longer vintage talk of the fabled MIPIM transport challenge that saw Routemaster buses, hot-air balloons and boats compete to make the journey. Others miss the years of Bananarama and The Stranglers, or even Balti on the Beach.

But MIPIM isn’t about the froth — fun though it can be — it is about business. Says Soning: “We’ve always done business there.

You start business there. It’s about who you bump into.”

And that’s why Boris and other city leaders go, too. One of the headline deals of last year — the £700m purchase of the Market Towers site in London’s Vauxhall by China’s Dalian Wanda Group — was initiated at MIPIM. What city-changing schemes will originate in the next 25 years?

Damian Wild, editor of Estates Gazette

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255_RM HTL_N1_PIM

Tuesday, 11 March

DAY 1

11:30-13:00 Solution pitchings

MIPIM HTL lounge is the platform for hospitality and property professio

nals

to conduct meetin and discuss new

gs

trends,

hotel investments

and

tourism real estate

.

> LEVEL 3

11:30-12:00 // The 5 star space, needing 5 star place to stay Organiser: Kriolis 12:00-12:30 // Hospitality and the importance of excellence levelled on new concepts that go beyond the mere star rating Organiser: Hospitality Project 12:30-13:00 // Solution pitching Organiser: ANCE

14:00-17:00 Project presentations Places to be - resort hotels & tourism projects Co-organiser: PKF hotelexperts 14:00 // Welcome Speaker: Mr Andreas Martin, Managing Consultant, PKF hotelexperts 14:15 // Mali Losinj – development of a touristic masterplan Speaker: Mr Stefan Hitzler, Senior Consultant, PKF hotelexperts 14:30 // Hotel Schani Vienna Speaker: Mr Helmut Frank, Project Management, Gira

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

14:45 // Leading family hotel & resort Gosau, Austria Speaker: Mr Herbert Ackerl, Member of the Board, Ambras 15:00 // Driven to create – Developing a region’s eco-system Speaker: Mr Thomas Maruschke, Project Management, Wolfsburg 15:15 // Where luxury meets hospitality Speaker: Mr René Wilms, Director of Project & Business Development, Regent Hotels

15:30 // Pramollo-Nassfeld: a three borders new complex resort Speaker: Mrs Gianna Trevisani, Business Development Manager, Interna Group & Interna Real Estate 15:45 // Six Senses Mont Blanc, a unique mountain setting Speaker: Mr Jean-François Garneau, CEO, Swiss Development Group 16:00 // Dusit Thani Maldives & DusitD2 Nairobi Speaker: Mr Cyrill Czerwonka, Assistant Director of Development EMEA, Dusit International Hotels and Resorts 16:15 // Design does matter!

Speaker: Mr Matthew Heller, Vice President Marketing, The Jerde Partnership 16:30 // The net value of a brand Speaker: Mr Robert van der Beek, Senior Director Hotel Development, Worldhotels 16:45 // Holiday Inn project Frankfurt city centre Speaker: Mr Andreas Löcher, Head of Division Asset Management Hotel, Union Investment Real Estate > Followed by a cocktail

17:00-18:00 Cities project presentations 17:00-17:10 // Dijon 17:10-17:20 // Leicester / Leicestershire 17:20-17:30 // Poitiers 17:30-17:40 // Coventry 17:40-17:50 // Sao Bernardo do Campo 17:50-18:00 // Ghent > Followed by a networking coffee

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AWARDS MIPIM AWARDS 2013: WINNER PROFILE

Flame Towers lights the way The 2013 gong for best hotel and tourist centre went to Flame Towers in Baku.

Graham Parker looks at the capital of Azerbaijan’s new symbol of optimism

S

INCE achieving its independence, Azerbaijan from most vantage points in the city. has been positioning its capital city, Baku, as Baku Flame Towers is a project by Azinko Developan outward-looking, high-tech city — and the ment. HOK was the architect, with DIA Holdings servFlame Towers have come ing as design-build contractor and to symbolise this optimisHill International providing project tic outlook. management.

Located on a hill overlooking Baku Bay and the old city centre, this The 39-storey residential tower — iconic trio of buildings transforms the tallest of the three — sits to the the city’s skyline and promotes its south, accommodating 130 luxury historic identity. Baku’s history of apartments over 36 floors with a fire worship provided the inspiraswimming pool at podium level. tion for the design, which consists The hotel, operated by Fairmont of three flame-shaped towers, each Hotels, is located on the northern Barry Hughes with a different function, set in a corner of the site and consists of triangular shape. They are visible 318 rooms over 36 floors. Located 185_DANA_N1&2_PIM

The project really tested our designers and our software

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Welcomes H.E. Mr Pavel Latushka, Ambassador of Belarus to France. at our stand No 16.15 on 13th of March at 11 AM.

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on the west side of the complex, the office tower provides more than 33,000 sq m of flexible, class-A office space. All three towers are now completed and occupied and the final piece of the jigsaw to open will be the retail podium, containing a 25,000 sq m shopping mall.

The podium acts as the anchor for the project, providing leisure and retail facilities for the three towers’ residents and visitors. It also houses a spectacular atrium sitting over a grand ballroom for the Fairmont Hotel. And a new IMAX cinema sits between the towers, its bright red colour described by HOK’s head of mixed-use, Barry Hughes, as “the cherry on the top”.

“We needed to make sure the base was equal to

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the towers,” Hughes says. “The site sits opposite Azerbaijan’s parliament and creates a civic space with another symbolic building.”

The facades at ground level reflect the varied forms of the old city of Baku, which cluster at the bottom of the hill beneath the Flame Towers.

“The project really tested our designers and our software,” Hughes adds. The towers posed numerous challenges. They had to be weighted to withstand potential earthquakes, and some parts had to be constructed without the use of cranes because of Baku’s harsh winds.

Flame Towers, Baku: the iconic trio of buildings transform the city’s skyline

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AWARDS MIPIM AWARDS 2013: WINNER PROFILE

King’s Cross is just the ticket A year on from its MIPIM Award win in the Best Refurbished Building category, King’s Cross station’s revamp and refurbishment continues to deliver on its early success. Liz Morrell reports

N

ETWORK Rail last month reported a

26% leap in retail and catering sales at the King’s Cross scheme. The results came as part of the UK rail operator’s strongest yet quarter of trading for its 16 managed-station portfolio, with the company reporting a 7.8% growth in like-for-like sales for the three months from September 2013 to December 2013.

According to Network Rail, The success is testament to investment and the growing demand for convenience retailing from both shoppers and travellers.

As was always going to be likely, the scheme performed strongly from the start

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The five-year £550m project finally completed in September last year with the opening of the 75,000 sq ft (7,000 sq m) King’s Cross Square — bigger than London’s Leicester Square and designed to add a little further grandeur, as well as a touch of Europe, to the development. Work on the square began following London’s hosting of the Olympic and Paralympic Games in 2012.

Of course, the major work — and the main point of the project — was to create a travel infrastructure of which London could be proud, while also paying homage to the rich architectural heritage of the station.

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In March 2012, a new western-side concourse opened at three times the size of its predecessor. It included a larger ticket office, a new retail and catering offer, and upgraded and refurbished facilities. The project delivered more than 27,000 sq ft of new retail space comprising more than 27 retail units. Upon opening, the line-up included 11 new retailers and 13 caterers, nine of which showed their faith in the project by opening their first stores in a UK station at King’s Cross.

Retailers joining the scheme on opening included the likes of Oliver Bonas, Paperchase and T.M. Lewin, as well as the usual station staples, such as Boots and WHSmith. The station debuts included the likes of American Apparel, Kiehl’s and Watermark.

On the catering side, 13 catering operators joined the scheme, nearly half of whom, including Benito’s Hat, Fullers, Giraffe, Leon, Prezzo and Yalla Yalla, opened their first UK station store at King’s Cross.

needed and has shown the success of Network Rail’s commitment to invest in retail, with the company adding 75,000 sq ft of new retail space to its existing portfolio by the end of 2014/2015.

With King’s Cross currently the strongest performing station in its portfolio, it is not hard to see why.

The winning King’s Cross team at MIPIM 2013

As was always going to be likely, the scheme performed strongly from the start. In May 2012, it was reported that, in the first month of opening, retailers within King’s Cross were posting average sales of £600,000 per week — nearly double the sales being achieved the previous year and putting the station on target for sales of more than £34m (€40.9m) in the first 12 months of trading.

Network Rail has not revealed a breakdown for King’s Cross specifically. However, the upgrading was long

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06/03/14 16:14

FEATURE

mipim

EMERGING HOT SPOTS

Back to the future

Spain and Ireland are back on investors’ radars, according to the 2014 Emerging Trends In Real Estate Europe report. One of the study’s authors, Doug Morrison, looks behind the headlines

F

OR MANY of Europe’s leading investors and advisers, a defining moment in the recovery of the Spanish property market came last October when Intu, the UK shopping-centre specialist, acquired the Parque Principado mall in Oviedo.

Until that point, Spain had been the subject of growing investor interest throughout 2013 and especially since the summer, when Sareb, the country’s ‘bad bank’, opened for business. Yet these were largely buyers of distressed assets in Madrid and Barcelona, and all of a certain type: vulture funds and opportunistic investors.

The €162m acquisition of Parque Principado in northern Spain was clearly different, largely because of Intu, which is part of the UK’s shopping-centre establishment and a company not known for venturing overseas on speculative punts. For this investment, Intu had joined forces with the Canadian Pension Plan Investment Board — about as blue chip as it gets with institutional capital.

What is more, Intu also disclosed that it has land under option in Malaga, where it aims to develop around 850,000 sq ft (79,000 sq m) of retail and leisure space, as well as development sites in Vigo and Valencia. If everything goes to plan, Intu says it will package it all up into a Spanish real estate investment trust.

Intu’s Spanish debut marked the market’s return to some semblance of mainstream respectability, beyond the realm of the speculators. As such, it offered a glimmer of hope that the recovery of Spain’s property market and the wider economy could be sustainable in the long term.

As many as 67% of Europe’s 500 most senior property professionals interviewed or surveyed for Emerging Trends In Real Estate Europe 2014 believe that there are now good buying opportunities in Spain. It is telling that most of the interviews for this authoritative joint study

by PwC and the Urban Land Institute were conducted around the time of Intu’s foray into northern Spain.

The interviews for the annual Emerging Trends reports are always non-attributable, which makes for a more accurate test of sentiment — and more candour too.

There was no mistaking the genuine surprise this time at the extraordinary turn-around in investor sentiment towards Spain. Barely a year ago, this market was off limits for most global players.

Investors appear to have shrugged off concerns of a eurozone break-up, which had been the underlying fear factor previously. Many interviewees believe Spain could present a re-run of what went on before in Ireland with its ‘bad bank’, the National Asset Management Agency (NAMA). “It is about the opportunities becoming unlocked, with the whole banking sector dealing

with its portfolios and loans issues,” says one investor.

“The difference with Spain is that it has been so fast.”

The UK’s Intu acquired the Parque Principado mall in a €162m deal

If Spain follows Ireland’s lead, then 2014 looks set to be a busy year. Dublin in particular has benefited from the sheer competition for core assets in Europe’s major property markets, such as London and Paris, which has forced investors to seek higher risk returns in secondtier cities.

As a result, the Irish capital has risen dramatically in the Emerging Trends city investment rankings, moving up from 20th in last year’s report to second — out of 28 cities — in 2014. Dublin has been transformed from a no-go location for investors only two years ago, to one of the hottest markets in Europe, with both domestic and international investors attracted by pricing levels and Ireland’s improving economic outlook. The latest report finds that 51% of respondents now see good buying opportunities in Ireland.

The speculators descended on Dublin before the mainstream investors moved in — and it is easy to see parallels with Spain and its improving economic outlook.

Given the lag between a shift in sentiment and deals done, Madrid and Barcelona can reasonably expect a similar rise up the rankings in next year’s Emerging Trends report. This year, they reside at 19th and 22nd place respectively.

Not that the story is over for Ireland. On the contrary, according to Marie Hunt, executive director and head of research at CBRE Ireland: “It is fair to say we have experienced the busiest January and February in the Irish

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FEATURE

NAMA and various financial institutions such as Ulster Bank — which recently appointed Eastdil to dispose of €1bn of its Irish assets — accelerate their deleveraging activities to match current demand.

Oviedo’s Parque Principado mall

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commercial property market in many years.”

Hunt says that investment transactions are up in both prime offices and retail. Yields for both asset classes are 5.25%, which is still attractive to the domestic and international investors that have shown their appetite for the various assets and loan portfolios released to the market so far.

According to CBRE, there is now an expectation that the number and value of loan and asset disposals will increase significantly over the coming months, as

But as Hunt observes, the investment activity has been underpinned by strong occupier demand — a sure sign of a recovering economy. It is evident that Spain lags Ireland in its recovery and, notwithstanding the show of faith by Intu, there are lingering doubts about its economy.

Some fund managers interviewed for Emerging Trends regard the investor surge into Spain as not so much a search for value as “a lemming-like scramble”. This is because they believe the capital flowing into the market is purely based on rock-bottom pricing rather than any sign of robust, on-the-ground occupier demand.

The vast majority, however, see high yields and a broad range of opportunities. Just this month, a new Spanish company called Hispania Activos Inmobiliarios announced plans to float on the Madrid, Barcelona, Bilbao and Valencia stock exchanges through an institutional placing. The company intends to invest in Spanish housing, offices and hotels — “quality assets that are well located and with yield potential”.

Such is the confidence of Hispania — and by implication, the Spanish property market — that the company says institutional investors have already committed €314m of the €500m it hopes to raise from the flotation.

Who would have predicted such a well-supported Spanish float this time last year?

Schedules are available in hotels and at various points in the Palais des Festivals

Get on the bus use the free MIPIM shuttle service

Shuttle hotline:

+33(0) 620 93 00 62

If your hotel is located outside Cannes, check out the free shuttle service.

Available to all delegates from 08:00-00:00

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The 25 Restaurant & Beach Bar The newly refurbished Majestic Beach restaurant reopens its doors for MIPIM to become The 25 – Restaurant & Beach Bar, a premium space where registered participants can enjoy breakfasts, lunches and drinks by the beach.

Enjoy our special MIPIM25 menu !

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Croisette Village

Sunset Hall

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Opening hours From Tuesday 11 to Thursday 13 March, 9.00-18.00 & Friday MIPIM 14 March, 9.00-15.00 AREA

PA D FEST

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Fund

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A fruitful investment After the great success of the ECE European Prime Shopping Centre Fund, ECE Real Estate Partners have the pleasure of announcing the upcoming launch of our successor fund. Raised in 2010/2011, with total commitments of €775.5 million from international investors, Fund I is now fully allocated and opens the way for Fund II.* With a portfolio valuation of approx. €2 billion, the ECE Fund I now manages 12 prime urban shopping centers in Germany, Poland, the Czech Republic, Italy, Austria, and Denmark with value-add potential, providing a strong driver for future returns through active asset management. *This does not constitute an offer or solicitation. A subscription of interests in the fund is currently not possible.

Shopping | Office | Traffic | Industries ECE Real Estate Partners S.à r.l.

17, rue Edmond Reuter, 5326 Contern, Luxembourg Phone: +352 26 78 59 29, Fax: +352 26 78 59 79 www.ece.com, info@ece.com

at Visit us 1 6.0 Stand 1