MIPIM 2019 PREVIEW MAGAZINE by RX REAL ESTATE SHOWS

ENGAGING THE FUTURE

PREVIEW February 2019

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THE POWER OF 30

How has MIPIM evolved across 30 editions, and what does the future hold?

SPECIAL REPORT

How is real estate adapting to social and technological changes to meet the needs of a new generation?

REGIONS

What’s hot and what’s not in real estate markets around the world? Advertisement

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EDITORIAL

WELCOME to the MIPIM 2019 Preview magazine which sets the scene for some of the key discussions that will take place during the event. 2019 is a special year for everyone at Reed MIDEM as we prepare to celebrate the 30th edition of MIPIM with the thousands of women and men who come together in Cannes as leaders of the international real estate business. So much has changed since MIPIM was launched in 1990. Property has become an international asset class and a driver of national economies. Sustainable urban development is now firmly in the hands of public and private partners as they seek to meet the demands of a younger generation with new lifestyle and working expectations. The disruptive influence of the internet, PropTech, smart cities and smart buildings are to be seen around the world, bringing with them new opportunities and new challenges. It is against this background that we have decided to take ‘Engaging the Future’ as the central theme of this year’s event. We are particularly proud that former United Nations Secretary-General, Ban Ki-moon, has agreed to be our opening keynote speaker and we look forward to hearing his take on the social, political and environmental challenges we face. We are also excited to launch the first MIPIM Young Leaders Summit — an intergenerational forum where next-gen forward-thinkers will map out their ideas for tomorrow’s cities and tomorrow’s real estate industry. In keeping with MIPIM’s international remit, the Preview’s articles range far and wide. You can find out about investment activity and potential in practically every region of the world, including growing interest in Sub-Saharan Africa; how logistics are leading activity in East and Central Europe; why tariff disputes haven’t cooled appetites for North American assets; and what’s happening in a Western Europe where Brexit dominates UK thinking, and France and Germany are facing economic slowdown. I want to take this opportunity to recognise the thousands of delegates who have attended MIPIM over the years and who have contributed to the success of the event and to the wider discussion on how the global property sector will evolve. Your support has helped us develop MIPIM over the years. You are important members of the MIPIM business community and to past, present and future attendees... we say thank you. Ronan VASPART MIPIM Markets Director

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July 1-2, 2019 LE CENTQUATRE Paris, France

MIPIM PropTech Europe foster the digital transformation in the real estate industry. It’s the only international 2 day event that gathers key real estate and technology decision makers to make business deals. Benefit from a special price* for MIPIM participants: Startups – 190€ Regular – 390€

*Only at MIPIM – MIPIM Corporate Stand (D71-C72), Palais des Festivals -1, Cannes

www.mipim-proptech.com

: @MIPIM PropTech

: MIPIM PropTech

CONTENTS

92 YOUR MIPIM EXPERIENCE

MIPIM @ 30

How to get here • Your badge and registration • Mustattend events • Must-visit areas • Meetings and Map

THE POWER

OF 30

94 CONFERENCES & EVENTS

PROGRAMME

107 AWARDS

Xxxxx

The MIPIM Awards celebrate the brightest and the best in global real estate

11 NEWS

39 SPECIAL REPORT

Istanbul banks on infrastructure investment; GLP launches European logistics fund; Flexible oﬃce market grows across Europe; Paris and Tokyo plan for Olympic legacy

ENGAGING THE FUTURE 41 45 49 55

Innovation Strategy Sustainability The social impact of real estate

61 REGIONS

What’s hot and what’s not in real estate markets around the world

77 89

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61 65 69 73 77 81 85 89

Asia-Paciﬁc North America MENA Sub-Saharan Africa Southern Europe Nordics Western Europe Central & Eastern Europe

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MAKE THE MOST OUT OF ST YOUR 1 MIPIM! Dedicated 1st Timers accreditation desk

Dedicated 1st Timers lounge

Trained staff

Concierge

1st Timers bar

Complimentary breakfast & lunch

Networking sessions

Welcome gift

Making it through your 1st MIPIM has never been so easy and enjoyable! PLEASE COME JOIN US! MIPIM.COM

MIPIM @ 30

“The pace of change

is accelerating” Filippo Rean, director of the real estate division at Reed MIDEM, tells Graham Parker that MIPIM is poised to spearhead a new wave of innovation in real estate as it celebrates its 30th anniversary How would you define the niche that MIPIM occupies in global real estate?

“Over the last 30 years, MIPIM has been at the forefront of innovation. Cannes in March has become the place where industry experts gather to spot the latest trends that will shape their businesses in the years ahead and to debate solutions to the challenges they face.”

burgeoning populations and changing patterns in the way we live and work, we’re seeing urban leaders harnessing new and sustainable technologies to meet their citizens’ needs. Ever-greater

co-operation between public and private sector players is driving the emergence of the smart city.” How has the sector reacted to environmental pressures?

MIPIM has seen some huge changes in its three decades. What are the most significant?

“The industry has embraced globalisation. At MIPIM’s inception, Western Europe and North America set the industry standards, with other territories dismissed as ‘emerging markets’. Now it’s Asia Pacific and Middle East North Africa, where cities do not have to deal with the legacy of ageing infrastructure, that are setting the pace. And investment flows have reversed as Asian and Gulf-based investors have become the dominant players in the capital markets.”

Is there also a social dimension to sustainability?

“Absolutely. We’ve seen social changes impact the design and use of buildings as a youthful population has emerged that’s hungry for new ways of living and working. Traditional housing types have had to adapt to the decline of the nuclear family, while the workplace has had to adapt to informal and collaborative working relationships. At the same time, we’ve seen the emergence of new property types. The property industry has reacted to changing user requirements with new formats, such as data centres, student housing, senior housing, healthcare facilities and last-mile distribution units.” What of the future? Where do we go from here?

“If anything, the pace of change is accelerating, driven by technological, social and economic forces. MIPIM will continue to reflect the latest in real estate thinking — and the 2019 edition promises to be as stimulating and thought-provoking as ever.”

Filippo Rean

“Over the last 30 years, MIPIM has been at the forefront of innovation”

Cities have become major participants in MIPIM. How important is the public sector to the event?

“Cities have evolved and they’re continuing to evolve. Faced with

“There’s been a real move towards mixed-use. The real estate industry’s traditional silos have been broken down and, now, residential, retail, leisure and workplaces co-exist, creating new synergies and using land more sustainably. And where once ‘green’ buildings were seen as a specialist property type suitable only for niche occupiers, now sustainable elements such as solar PV, CFC-free air conditioning, rainwater harvesting and green roofs have gone mainstream.”

Filippo Rean

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MIPIM @ 30

To the power

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MIPIM @ 30

The 30th edition of MIPIM is an opportunity to take stock of how the event and the industry it serves have changed over the past three decades, as well as to look at how MIPIM might evolve in the future. What do real estate industry experts think? Graham Parker ﬁnds out

HE MOST obvious change from the first MIPIM in 1990 to today’s event is sheer scale — a couple of thousand delegates attended MIPIM in the early years and that has grown more than tenfold. MIPIM has grown out of the Palais des Festivals to encompass a tented village stretching along the Croisette, with satellite events in hotels throughout the city centre. “When MIPIM started, it was very much focused on the Palais but, as it’s grown and become more successful, it’s spread,” says Mishcon de Reya real estate partner Susan Freeman. “Every year it seems to get bigger and bigger.” For David Mann, executive partner at construction consultancy Tuffin Ferraby Taylor (TFT), “how far the tents stretch along the beach at MIPIM is a very

Susan Freeman, Mishcon de Reya

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good barometer of the strength of the real estate industry”. While the increased scale opens up new opportunities to meet and do business, it also presents challenges to delegates, says Melanie Leech, chief executive of the British Property Federation (BPF). “People do it in a much more professional way,” she says. “It has become more serious,” agrees TFT’s Mann. “The quality of delegates has gone up and, to get the best out of it, you have to be organised.” While the MIPIM audience was once characterised as ‘male, pale and stale’, recent years have seen a welcome dose of diversity. These days, “it’s definitely a place where women feel more comfortable”, agrees Mishcon de Reya’s Freeman. “And there’s a wider choice of events for them.”

David Mann, TFT

MIPIM @ 30

Melanie Leech, BPF

which people conduct themselves: “Times have changed and business has to move with it. Whether it’s in Cannes, Paris or London, we should always be

asking ourselves, ‘Is that the way I’d like to treat people?’” And for global real estate bodies MIPIM plays a key role as a gathering place for a disparate membership. Paul McDowell, President of the European Chapter of SIOR, the Society of Industrial and Office Realtors, says: “As an organisation founded on the principles of sharing best practise, improving professional standards and cross border collaboration, SIOR’s values are very much aligned with the ethos behind MIPIM. The event offers an opportunity for our members to convene in one place, among some of the most significant players in the global industrial and office sectors, to network, share ideas and contribute to deal flows.”

Susan Freeman

“People take it for granted that, in March, Cannes is going to be full of people you’re going to want to meet”

‘A HUGE REVOLUTION IN PROPERTY ANALYSIS’ INGRID Nappi-Choulet, real estate and sustainable development chair at ESSEC, which has staged roundtables at every MIPIM for the last decade, reflects on the event’s changing role “I have undoubtedly witnessed an enormous shift in the industry since I started my PhD research in 1989 into the office-property market in Paris. At that time, there was a very sudden switch away from a patrimonial perspective of real estate, based on long-term investment, to the financialisation of the sector in the mid-1990s, and the as-

And what of the future? For Trevor Goodman, Reed MIDEM’s newly appointed real estate regional director for the UK and Ireland, MIPIM’s mission remains unchanged. “While it has grown and evolved over the years, the core values of MIPIM remain the same,” he says. “It’s about bringing people together to share memorable experiences, gain valuable insight and create business opportunities.” Adolfo Ramirez-Escudero, CEO of CBRE Spain and chairman of the firm’s continental Europe capital markets division, says: “MIPIM has to reflect the changes in the industry. People now have other ways of meeting, so the experience in Cannes is becoming ever more important.” For Mishcon de Reya’s Freeman, MIPIM’s not going anywhere: “People take it for granted that, in March, Cannes is going to be full of people you’re going to want to meet.”

sessment of properties based exclusively on financial value, which is very often concerned with the short term. “This change followed and was the solution to the recovery from the huge 1991 crisis in European office markets. From this new concept of value, inspired by the financial markets, there was another shift at the end of the 2000s towards an increasing awareness of sustainability in both property development, with passive buildings, and investment, with the concept of green value. “Today, there are new challenges facing this sector as it

enters a new phase: big data and the digital revolution, as well as the greening-up of buildings and cities to cope with the new environmental challenges. Also, these days, it seems that housing and residential represent a new asset for global and national investors from a European perspective. “Finally, we have also seen a huge revolution in property analysis and research: the very recent inclusion of the concept of value in the use of spaces, besides the financial value favoured by all the players in the asset and investment sector.”

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Mann says: “The locals used to call it the ‘festival of the undertakers’, because of the wallto-wall dark suits. It’s become more laid-back.” At MIPIM, Mann will be hosting an event for Freehold, the group for LGBT people in property, which will have 60 or 70 members attending. Diversity is the biggest challenge facing the industry, according to BNP Paribas Real Estate CEO Andy Martin. “Over the last 30 years, the industry has recognised that creating and encouraging diversity across the sector is necessary,” he says. “The key to creating greater equality is creating a sector that is attractive to prospective employees from a broader range of socio-economic, gender and ethnic groups, through education, recruitment policies and inclusive industry events.” For the BPF’s Leech, these changes are welcome. But she also believes there is more change to come in the way in

Ingrid Nappi Choulet, ESSEC

• To find out more, download Cahiers de la Chaire at: https://sites.google.com/a/essec.edu/real-estate-and-sustainable-development-chair/ research-publications/les-cahiers-de-la-chaire.

news

MIPIM keynote

unveiled

The eighth UN Secretary-General to give MIPIM 2019 keynote address BAN KI-MOON, the eighth Secretary-General of the United Nations, will give the opening keynote speech at MIPIM on Tuesday March 12 at 14.00 in the Palais des Festivals in Cannes. He will share his vision of the new global challenges, from climate change and economic upheaval to increasing pressures involving energy and water. Ban Ki-moon served two consecutive terms as UN Secretary-General from 2007 to 2016. Born in the Republic of Korea, he is a former Minister of Foreign Affairs and Trade.

Ban Ki-moon

One of the Secretary-General’s ﬁrst major initiatives was the 2007 Climate Change Summit, followed by extensive diplomatic efforts that have helped put the issue at the forefront of the global agenda. His visits to hard-hit areas around the world, persistent advocacy on the issue and even a march through the streets of New York for climate action, helped to push the world to act. The Paris Agreement on Climate Change, adopted in December 2015, was signed by a record number of leaders on April 22nd — Mother Earth Day — and became effective on November 4.

MIPIM director Ronan Vaspart said: “For the 30th edition of MIPIM we have taken ‘Engaging the Future’ as our central theme and that includes addressing the issue of how upcoming generations will live and work in increasingly populated urban environments. Ban Ki-moon has championed sustainable development and his opening keynote address is expected to set the tone for this very special MIPIM,” he said. “We are honoured that the eighth UN Secretary-General will raise the curtain on MIPIM 2019.” MIPIM PREVIEW • 11 • February 2019

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INDOCHINA CAPITAL AND KAJIMA BREAK GROUND IN VIETNAM A START has been made on the construction of the first Wink Hotel in Vietnam. Located at 75 Nguyen Binh Khiem in Ho Chi Minh City — formerly Saigon — the hotel is developed by ICC-Kajima, a joint venture between Vietnam’s Indochina Capital and Japan’s Kajima Corporation. Located in a gentrifying area within Ho Chi Minh City’s central business district, the 237-room Wink 75 NBK hotel is targeted at business and leisure travellers. Peter Ryder, CEO of Indochina Capital, said: “This is a milestone for ICC-Kajima. The company has a clear strategy that addresses the current and future demands of the Vietnamese market, with a focus on delivering real estate developments while maintaining our commitment to architectural excellence, international construction standards, environmental sustainability and social responsibility.” With an investment mandate of $1bn spread over the next several years, ICC-Kajima is set to develop projects across Vietnam. These will encompass most types of real estate, including commercial, residential, hospitality and industrial/logistics. Wink Hotels is a key component in this strategy. ICC-Kajima’s target is to build 20 Wink Hotels over the next five to seven years in Vietnam’s primary and secondary cities, with potential expansion into neighbouring markets, such as Cambodia and Laos. Wink 75 NBK is set to open in the first quarter of 2020. It will be followed by Wink Hotels in Hanoi, Danang and Hai Phong.

Istanbul’s infrastructure fit for ‘another 8,500 years of history’ ISTANBUL’s continued investment in infrastructure is reinforcing its pivotal position in global trade, according to Sekib Avdagic, new president of the Istanbul Chamber of Commerce. “Istanbul has a modern infrastructure and a well-developed transportation network that allows fast and easy access to other large and important markets within a three-to-four-hour flight time,” he said. And the city is maintaining its dominant position in the Turkish domestic economy, Avdagic added: “Almost one third of all companies in Turkey are located in Istanbul and 5.6 million people are employed in the city. This is almost one fifth of all employment in Turkey. With a population of 16 million, it is a big market for investors as well.” Istanbul’s new airport, which saw its first phase open in 2018 and which could eventually see 200 million passenger movements a year, is already proving a catalyst for new development. “I believe that the airport will lead to high-quality real estate projects,

Istanbul Chamber of Commerce’s Sekib Avdagic: “bigger, more attractive and more profitable”

both in that region and in Istanbul in general,” Avdagic said. Meanwhile, new Bosphorus crossing points by both road and rail are opening up new opportunities. “These mega projects will add another 8,500 years to the

8,500-year history of Istanbul,” Avdagic predicted. “These projects bring new vitality and action to the city and will make the future of Istanbul bigger, more attractive and more profitable for investors.”

Manchester shows its human face 2019 IS the 20th year that Manchester, UK has exhibited at MIPIM. To mark this anniversary, the Manchester at MIPIM Partnership will launch a redesigned Manchester Pavilion that will place people front and centre in a new approach to telling the city’s story. Through a series of life-size living portraits, thought-provoking soundbites and short films, the Manchester Pavilion will show delegates the human endeavour, engagement and creativity that is breathing life into the city’s numerous developments. This will all be supported by a new design

for the Pavilion, which will create a space where people can gather, meet and start new conversations. In this way, Manchester plans to

Manchester City Council’s Sir Richard Leese: “telling the Manchester story in a new way”

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challenge some of the conventions of destination marketing, and to encourage debate about such issues as infrastructure, housing and sustainability. Sir Richard Leese, leader of Manchester City Council, said: “Manchester is a longstanding advocate of MIPIM. We recognise the valuable opportunity it provides for serious discussions around how the property industry can contribute to growing an inclusive city economy. We are looking forward to opening some important industry discussions and to telling the Manchester story in a new way.”

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MAKE.ORG AND MIPIM ENLIST CITIZEN POWER THE GREATEST challenge for the cities of tomorrow is how to include citizens in the decisionmaking processes that are shaping the places in which they will live. This is the view of make.org, which is joining forces with Reed MIDEM in the run-up to MIPIM 2019 to engage the public through an open-citizen consultation. The best ideas will then be transformed into concrete action plans, which will be shared with delegates at MIPIM 2019, enabling them to develop further initiatives generated by the proposals. With the world’s population continuing to grow at rapid speed, it is estimated that seven billion people — or 70% of all human beings — will live in urban areas by 2050, up from 50% today. On top of the demographic challenge of urban density, three other urban challenges are looming on the horizon for all governments, according to make.org. The first is the challenge of providing civil society with infrastructure, access to consumer goods and access to services. The second is the energy issue and the amount of energy consumed by cities. Around 70% of CO2 emissions are produced by urban areas, which take up only 2% of the occupied land surface. Cities are therefore at the heart of the response to global warming and air pollution. The third is the challenge of creating ‘the new urban citizen’ — citizens with greater awareness of their environmental responsibility and who are less consumer-orientated than previous generations. CONFERENCES & EVENTS AT MIPIM YOUNG LEADERS: CONVERGENCE OR DIVERGENCE 13 March 2019 – 09.45 – 11.00 Grand Auditorirum - Palais 1 YOUNG LEADERS: PROMOTING TALENT & SKILLS 13 March 2019 – 11.00 – 12.00 Grand Auditorirum - Palais 1

Lenders bank on restructurings and emerging markets in 2019 PROPERTY lenders are more relaxed about the global economy than they were in 2017, according to a survey of the membership of the Loan Market Association (LMA). “Back in 2016 with the election of President Trump and the aftermath of the Brexit vote, 51% were concerned about the global economy and geopolitical risks. Last year, surprisingly, this reduced to 36%,” said Amelia Slocombe, director and head of legal at the LMA. But 2019 will not be without its challenges, Slocombe warned: “In a market already supporting a very healthy amount of competition, it’s not surprising that too much competition chasing too few assets is rated the greatest challenge going forward, particularly given the impact that macroeconomic uncertainties and an uncertain political environment are having on companies’ willingness to borrow.”

LMA’s Amelia Slocombe: “best opportunities” in restructurings

Looking ahead, lenders expect restructuring and emerging markets to be the most fertile sources of business in 2019. “Restructurings have risen from 10% to 20% as the area where the best opportunities lie in the loan market,” Slocombe said. “The expectations for corpo-

rate M&A are down from 24% to 17%, and refinancings from 37% to 30%. More positively, leverage is holding up at around 17% and emerging markets has increased from 11% to 16%.” So what could be done to support developing-market lending? “As was the case in 2017, the results of the survey demonstrate that there is no obvious single solution when it comes to supporting developing-market lending,” Slocombe said. “However, the highest proportion of respondents — 26.2% — believe that standardisation of loan documentation and practices is the most important contributing factor.” CONFERENCES & EVENTS AT MIPIM REGULATION & LEGAL: VISIONS FOR THE FUTURE 12 March 2019 – 15.00 – 18.00 Magenta Room - Palais 3

Catella completes £18m Apam deal REAL estate financial services outfit Catella has completed the purchase of 75% of UK real estate investment and asset manager Apam. Catella acquired 75% of the shares in Apam for £18m on a debt and cash-free basis. Apam is now consolidated as a subsidiary in Catella Group. Necessary regulatory approval was obtained from the financial supervisory authority in Luxembourg, Commission de Surveillance du Secteur Financier (CSSF). Apam, which had revenues of £7m in 2017, has assets under management of £1.4bn and 41 employees. “The UK is a key strategic market for us, where we see significant investment interest from our clients, particularly from our Asian office,” said Knut Pedersen president and CEO of Catella. He added: “Apam has exceptional

knowledge of real estate markets across the UK. With this deal, we strengthen our pan-European

platform and local expertise, giving us a competitive edge across Europe.”

Shaking on the deal at MIPIM 2018: Catella’s Caj Tigerstedt (left), Apam’s William Powell and Simon Cooke (Apam), and Catella’s Timo Nurminen and Joachim Gahm

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From high-altitude resorts to hightech solutions — Canada has it all ONCE again in 2019, Canada comes to MIPIM with strong representation from its cities, regions and companies. This year sees stands and delegations from Quebec City, Greater Sudbury, Lunas and Greater Montreal. For Quebec City, a stand highlight is its alliance with Club Med to create the first Club Med

Mountain Resort, a four-season holiday base on the St Lawrence riverfront. Club Med Charlevoix is set to open its doors in December 2020. It will be built using locally sourced materials, including wood, stone and tile, in a modern style. With views of the St Lawrence River, the new resort aims to offer visitors a memorable ex-

perience at any time of the year. A one-hour drive from Quebec City’s international airport, the resort is envisaged not just as a destination in itself, but also a base from which to explore Quebec. The City of Greater Sudbury, meanwhile, is investing $110m in redeveloping The Junction, which consists of two city blocks in its

downtown core. To realise its full potential, the scheme requires the participation of a private-sector hotelier to integrate a new hotel into the proposed Greater Sudbury Convention and Performance Centre (GSCPC). The Junction, so named because of its location adjacent to the Sudbury Junction site of the original Canadian Pacific Railway, is comprised of the convention centre and a hotel. Facing this development will also be a state-of-the-art library hub and a modern art gallery. MIPIM newcomer Lunas provides 3D architectural visualisation solutions. The company “opens new visual horizons” for architects, designers, real estate professionals and property developers by helping them to envisage properties before they are built. The Greater Montreal group returns to MIPIM with its biggest delegation yet, consisting of 17 private partners and the City of Montreal. The City of Montreal is presenting three main areas for development and will present 20 projects. CONFERENCES & EVENTS AT MIPIM THE US & CANADA PROPERTY MARKET TRENDS 14 March 2019 – 15.15 - 16.00 Audi A - Palais 3

Sudbury’s The Junction development will transform the city’s downtown area

Nine for 19: PGIM’s top global trends PGIM Real Estate has identified nine global real estate trends that it expects to influence market conditions and investment performance in 2019 and beyond. First up is a tighter monetary-policy environment. History suggests that monetary-policy tightening will eventually be followed by slowing returns on real estate — although accommodative fiscal policy should help offset its impact. The second trend is that resilient global growth will continue to support most occupier markets.

But while the office and logistics markets are recording strong demand and falling vacancy, retail is struggling. Next up is the threat of rising construction costs to supply growth. Capacity constraints and rising costs in the construction sector are dampening the supply pipeline and point to upside risks to the rental-growth outlook. The fourth trend is the rise of flexible offices, which are a fast-growing and increasingly prominent part of the office market, particularly in global gateway cities.

Trend five is that yield compression will slow still further, driven by rising interest rates and upward pressure on the risk premium from policy uncertainty. Trend six is that transaction volume will continue to track sideways. While volumes are stable, a recent increase in the average size of new funds points to a growing share of portfolio deals in 2019. The seventh trend is a retail value correction. The prospect of value write-downs implied by retail REIT pricing suggests that retail is going to remain out of

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favour in 2019. More operational risk has been identified as trend eight. Low core returns and a rising share of value add-capital raising points towards further investment in operating assets that offer an additional risk premium. Lastly, PGIM predicts that lender discipline will persist. Lenders continue to be cautious, keeping loan-to-value ratios down and creating an opportunity for a growing private debt-fund sector. PGIM is the asset-management arm of Prudential Financial. PGIM Real Estate is PGIM’s real estate investment advisory business and operates through PGIM Inc.

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SCOTLAND

@ MIPIM 2019

V&A, Dundee

Join us at the Scotland Pavilion, Palais des Festivals, Cannes, March 12th to 15th Come along to the Scotland Pavilion to hear about Scotland’s portfolio of investment opportunities. Play a central part in conversations around smart cities, city living, waterfronts, technology and education to name a few, or join us at one of our many events where we will be showcasing Scotland’s unique strengths. Scotland is growing as a global innovation centre and we are committed to supporting investors to develop, grow and expand in Scotland. The Scotland Pavilion is a joint initiative of Scotland’s public and private sector.

news

BEST OF BRITISH — IN THREE DAYS IN FRANCE THE UK government pavilion at MIPIM 2019 will again host a three-day programme of talks, seminars and discussions, created in partnership with the British Property Federation. Focusing on climate change, diversity and innovation, the programme will consider future trends in the property sector and examine what current developments mean for overseas investors looking for large-scale opportunities in regeneration and infrastructure. The UK’s Department for International Trade (DIT), Ministry of Housing, Communities and Local Government, Homes England and the Cabinet Office have come together to showcase investment opportunities from across the UK that demonstrate the quality of design and sustainability on offer to global investors.

DIT’s Mark Slaughter: “commitment to the capital investment sector”

Mark Slaughter, DIT director general for investments, said: “The Department for International Trade greatly values the contribution of real estate investors to our economy and our national life. Our extensive presence at an event as prestigious as MIPIM shows our commitment to the capital investment sector and offers an exciting opportunity to demonstrate the exceptional services we have to offer those looking to invest in UK real estate.”

GLP creates European logistics fund with CPPIB and QuadReal

GLP has brought in two co-investors in its European properties

LOGISTICS facilities provider Global Logistic Properties, which owns the European logistics platform Gazeley, has launched a new logistics fund — GLP Continental Europe Development Partners 1 (GLP CDP 1) — with QuadReal Property Group and CPPIB, the Canada Pension Plan Investment Board. The partners are contributing €1bn in equity to GLP CDP 1, which will focus on developing modern logistics facilities in

Germany, France, Italy, Spain, the Netherlands and Belgium. CPPIB will contribute €450m of equity to the fund through its subsidiary CPP Investment Board Europe. When fully invested, GLP CDP 1 is expected to reach €2bn of assets under management. Building on the success of GLP’s first two European funds, which are fully allocated, the new venture is set to capture growth opportunities in Europe.

Ming Z Mei, co-founder and CEO of GLP, said: “The proposed establishment of GLP CDP1 reflects the confidence that institutional investors have in GLP and Gazeley, our Europe platform. We are committed to a long-term growth strategy in Europe. Demand from institutional investors to partner with GLP remains strong and we see opportunities to expand our fund-management platform further.”

Icade moves into Italian healthcare FRENCH investor and developer Icade is to invest in the construction of seven nursing homes in northern Italy. The investment amounts to €112m, with an initial yield in line with the market. It is Icade’s first international healthcare investment. The seven nursing-home pro-

jects are located in the Piedmont, Veneto and Lombardy regions. The properties, totalling 1,020 beds and 52,200 sq m, are scheduled for completion between the end of 2019 and the end of 2021. The assets have been pre-let under 18-year leases, with no break options. They will be operated by the

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Gheron Group, a specialist healthcare operator that manages facilities totalling 3,250 beds, some under development and some already in use. The transaction was with a property development fund managed by Numeria, an Italian asset management company (SGR), and is part of a new partnership.

Picture Source: Commerz Real | Copyright: TS Tessuto S.Ã .r.l.

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#schindlerismore

Innovation Forum P-1.B50

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UNION ACQUIRES HELSINKI’S URBAN ENVIRONMENT HOUSE UNION Investment is set to own the planned Urban Environment House office property in the east of Helsinki via a forward-purchase agreement. The purchase price of the planned 27,500 sq m project is €165m. Completion of the building, which is located in the Kalasatama submarket, an inner-city development zone, is scheduled for summer 2020. The vendor and future tenant of the property is the City of Helsinki, which has signed a 20-year fixed lease for the entire building. Following completion, the space will be used by 1,500 employees of the City of Helsinki. Urban Environment House is Union Investment’s largest single property investment in Finland. The building will be added to the portfolio of its open-ended real estate fund Unilmmo: Europa. “Nordic cities such as Helsinki and Stockholm generally offer very stable conditions for long-term investment in office property,” said Martin Schellein, head of investment management, Europe, at Union Investment Real Estate.

Europe’s flexible office-space market doubles in five years

JLL’s Anna Bartoszewicz-Wnuk: “The business hubs of Europe lead the way”

ACCORDING to research by consultant JLL, the flexible office-space sector in Europe has more than doubled since 2014. This is driven by internet access, start-ups, creative industries, and small and medium-sized companies. JLL believes flexible offices will account for up to 30% of the portfolios of some tenants by 2030. “The business hubs of Europe — London, Amsterdam, Dublin, Berlin and Copenhagen — lead the way in flexible-space volume.

At the end of the last decade, as a result of the global financial crisis, the number of self-employed people increased, which generated a need for flexible offices,” said Anna Bartoszewicz-Wnuk, head of workplace advisory at JLL. The rise in the popularity of flexible office spaces can also be seen in other European cities. Hamburg, Warsaw and Barcelona all recorded a 30% increase in the supply of flex space in 2017. In investment terms, the flexible-space market is currently divided into three groups. The first

are ‘conservatives’, who have a low percentage of flex space in their portfolios and have zero or very limited expansion planned for the future. Next are ‘experimenters’, who have a low-to-moderate percentage of flex space in their portfolios, with the possibility of an increase to 10% or higher in the next three-to-five years. Finally, the ‘visionaries’ are responsible for the most dynamic growth in the flex sector. JLL expects flexible space to account for 20% or more of this group’s office portfolios in the future.

Nuveen Real Estate buys in The Hague Urban Environment House, Helsinki, Finland

NUVEEN REAL Estate’s European Cities platform has acquired its 12th European building asset — The Hague’s iconic De Haagsche Zwaan office building in the Netherlands — from Capreon. Haagsche Zwaan consists of 18,500 sq m of office space and 237 car-parking spaces. The building, which is located in The Hague’s Beatrixkwartier office

district, is fully let to occupier, including Deloitte, Kuwait Petroleum and Royal HaskoningDHV. The 20-storey building is sited near to The Hague central station, within easy access of the A12 motorway. Beatrixkwartier’s amenities include restaurants, shops and a four-star hotel. Liz Sworn, co-fund manager of Nuveen Real Estate’s Europe-

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an Cities Strategy, said: “With its excellent location and strong covenant, this property perfectly fits the strategy of the fund. Our research has highlighted The Hague as a city that is set to benefit from positive population growth, high quality of life and inward migration, giving it a favourable score for long-term investment.”

Welcome to Brazil DISCOVER VALUABLE OPPORTUNITIES TO INVEST IN THE TOURISM SECTOR

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CAIPIRINHA HOUR Join us for a cocktail after a long day of business

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PICHET’S NEW PERSPECTIVE ON WOOD GROUPE Pichet has inaugurated the tallest wooden building in France — the 4,600 sq m Perspective office building in Bordeaux. At seven storeys, it is almost 31 metres high, and is the first building to use Pichet’s unique post-beam construction system. Pichet’s post-beam technology makes it possible to achieve a structure five to seven times lighter than that of concrete, speeding up construction and reducing disruption. And because one cubic metre of wood stores one tonne of CO2, solid wood is the only building material that stores carbon instead of emitting it. To further reduce its carbon footprint, Perspective was built exclusively with timber from the Landes and Limousin regions of France. The combination of these attributes means Perspective is a passive-energy building, winning Certivea NF HQE, BREEAM Very Good and BBCA certifications. Among the dignitaries at Perspective’s opening ceremony were Alain Juppe, mayor of Bordeaux and former French prime minister, Pichet CEO Patrice Pichet, Virginie Calmels, president of EPA Bordeaux Euratlantique, and Jean Boonen, president of Groupe Camacte.

Moscow tops PwC’s megacity league for social development

Moscow: top of the megacities for social infrastructure, shopping access and transport multi-modality

THE CITY of Moscow continues to have a significant presence at MIPIM. This year, some of the massive growth achievements of the Russian capital will be highlighted, including those in infrastructure, real estate development, culture, health and sports facilities, and social housing. Moscow’s achievements are illuminated in a recent PwC survey, which looked at social development in 14 of the world’s megacities. In terms of urban development, Moscow came in first for social infrastructure, level of comfort, the quality and ease of access to shopping facilities and its urban transport multi-mo-

dality (the different types of transport integrated into joint networks). It came second to Shanghai for road-network development rate (7.8% between 2010-2016), and third for both its metro network and its new metro-line construction rate. It was also third in terms of leisure facilities level of comfort. Lastly, it was fifth on the list for real estate construction rate. Moscow’s high scores in the areas highlighted by the report are based on a series of remarkable statistics. For example, the Moscow metro has increased in length by 45% over the past eight years. By 2023, 95% of Moscow citizens

will be within walking distance of a metro station. By 2023, seven million sq m of new housing will have been constructed — and one million Moscow citizens will have obtained new apartments by the same date. Overall, 15% of the city’s total existing real estate stock has been constructed in the last eight years. Moscow has also benefitted from recent signature projects, including new facilities for the 2018 FIFA World Cup — notably the state-of-the-art Luzniki Stadium. In addition, the 4,000-seat, 250,000 sq m Zaryadye concert hall was opened in September last year.

Nakheel raises bar for Dubai malls

The opening ceremony of Groupe Pichet’s Perspective office building in Bordeaux

DUBAI-based developer Nakheel plans to take retail in Dubai to the next level with its new mall, positioned as the centrepiece of the world-famous Palm Jumeirah. The 4.5 million sq ft retail, dining and entertainment destination, which will trade over five retail levels, will offer 350 shops, res-

taurants and leisure attractions. Directly connected with Nakheel’s Palm Tower, Nakheel Mall will be positioned as Dubai’s premium lifestyle shopping, dining and entertainment destination. It will also offer a fine-dining roof plaza offering panoramic views of Palm Jumeirah, the Arabian

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Gulf and the Dubai skyline. Nakheel Mall, which will be served by three underground parking levels with 4,000 spaces, will offer unrivalled accessibility via the Palm Monorail, the Dubai Tram and the Dubai Metro. The mall is currently under construction, with 70% leased out.

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Urban Development Affordable Housing

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SMART CITY SOLUTION FOR HOUSING & URBAN DEVELOPMENT

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March 13 (Wed), 2019, 12:30 PM Le Majestic Hotel WHO. WHAT. HOW. MAKES SEOUL SMART

Seoul Housing and Communities

2019 marks 30 years of the

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Oslo puts eco-friendliness first as it takes on role of Green Capital OSLO has been named as the 2019 European Green Capital. The accolade reflects the Norwegian capital’s achievements in sustainability, but also its determination to become one of the world’s most eco-friendly cities, according to governing mayor Raymond Johansen. “The European Green Capital title gives Oslo an opportunity to challenge the business community to accelerate the green transformation,” Johansen said. “In 2019, we aim to create a platform for sharing and debating city solutions that will [help create] liveable cities adapted to climate change and to smart urban living.” Oslo’s city government has launched ‘climate budgets’ for

Governing mayor Raymond Johansen: accelerating Oslo’s “green transformation”

NAR presents united markets of America MIPIM’s 2019 USA Pavilion, hosted by the National Association of Realtors (NAR), will include partners representing Illinois, Missouri, Washington State (Seattle), Texas, Los Angeles, New York, New Jersey, North Carolina, South Carolina (Myrtle Beach), Georgia and

Rhode Island. Florida, San Diego and Miami will also be represented in the USA zone, along with two professional development organisations: the CCIM Institute and SIOR. NAR’s 2019 president, John Smaby, said: “Our intent is to showcase a variety of markets

Greystar’s French connection GREYSTAR is launching a vertically integrated platform in France to acquire and develop purpose-built student accommodation and rental housing. To support the move, the rental-housing specialist is opening an office in Paris under Hideki Kura-

ta, who will lead a team building a portfolio of student housing and multifamily units. Hideki joins Greystar from AXA IM – Real Assets. The new France office forms a part of Greystar’s European expansion programme, which aims

2017–2020 as a part of the financial budget, meaning that carbon dioxide will be counted in the same way that money is. The city also aims to reduce greenhouse-gas emissions by 95% by 2030. Already, 30% of the new cars sold in Oslo are electric vehicles, which makes the city the electric-vehicle capital of the world. And by 2025, 60% of Oslo’s bus fleet will be electric. Oslo’s new public buildings will generally be energy positive, meaning that they produce more energy than they use. The city also has numerous ambitious initiatives in the pipeline that will confirm its status as a pioneer in sustainable development. “Cities are key in solving climate challenges,” Johansen concluded. “We are the first generation that can see climate changes with our own eyes — and probably the last generation that is able to do something about it.”

in the United States and the property, expertise and opportunities that exist for investors, developers and businesses. For investors, US real estate offers benefits including safety of capital through well-enshrined private-property rights, as well as attractive returns. The strongest performers during this real estate cycle have been apartment and industrial properties.” NAR is made up of 1.3 million real estate professionals, active across the US real estate sector.

CONFERENCES & EVENTS AT MIPIM

to position the company as the leading provider and operator of rental housing in all major European cities. Greystar’s strategy for France is initially focused on Paris, where it is prioritising student accommodation and targeting development opportunities and the acquisition of operational assets and platforms. The company is

also committed to investing outside of Paris. Bob Faith, founder, chairman and CEO of Greystar, said: “France has the second largest real estate sector in Europe. It has a mature, stable and growing economy but, at the same time, it’s a country with a serious shortage of purpose-built rental accommodation.”

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INVESTING & DEVELOPING IN THE UNITED STATES: WHERE, WHAT & HOW? 13 March 2019 – 10.30 - 12.00 Espace Debussy – Palais 3 US BREAKFAST 14 March 2019 – 08.30 - 10.00 Salon Croisette – Palais 5

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Legacy of Paris 2024 will be ‘the European city of 2050’

The Paris 2024 Olympic Village

AS PARIS gears up to host the 2024 Olympic and Paralympic Games, the Olympic Delivery Authority, Solideo, is using MIPIM 2019 as the launchpad for a number of key construction projects, aimed at inventing “the European city of 2050”. The programme for the Olympic permanent venues has now been set in stone. The projects encompass development works, public

spaces, infrastructure and sports facilities. Already, contracts have been let to no fewer than 29 public and private contractors. All are supervised by Solideo, which is chaired by Paris mayor Anne Hidalgo and headed by Nicolas Ferrand. The agency has one core mission: to deliver the Olympic structures on time — by January 1, 2024 — within the agreed budgets and fit for purpose,

no matter what the challenges. Beyond these core roles, Solideo has wider aspirations: to make the 2024 games a showcase for French and European excellence. At MIPIM, the agency will be asking investors, constructors, developers, architects and design offices to answer the question: How should we design and build the city of 2050, which must be sustainable, desirable and inclusive?

Tokyo lives the Olympic dream

Tokyo’s Olympic stadium under construction

OPPORTUNITIES will remain bright in Tokyo after the 2020 Olympics, a panel session at MIPIM 2019 will hear. Already, as the 2020 Olympic and Paralympic Games approach, the host city of Tokyo is enjoying a surge in economic activity in anticipation of the event. The construction of facilities for the Olympics is opening opportunities for investors in Tokyo. The athletes village being built in Harumi on the waterfront will be converted into a large residential complex of some 6,000 units. Overseas investors are already buying up Tokyo residential properties in anticipation of higher prices in the future, even after the Olympics have finished. In the past two years alone, apartment prices in Tokyo have risen by around 11%, mainly due to

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Also at MIPIM, Solideo is launching its call for tenders to build the Paris Olympic Village. This 51 ha community, which will be sited on the banks the river Seine at the Pleyel crossroads, will host some 15,000 athletes and support staff. After Paris 2024, this venue will be converted into 2,200 family homes, 900 residential units, two hotels and 100,000 sq m of offices, thereby accelerating the development of this area of Greater Paris. This year is a decisive one for Olympic bidders, with the final submission date planned for September, followed by selection in October. According to Solideo, it represents a rare opportunity to participate in a project that will help to renew the practices and processes of urban development, work on one of the major R&D projects of the decade and “contribute to the design of France’s message to the world”. Bold solutions are required. CONFERENCES & EVENTS AT MIPIM

THROUGH BUILDING THE PARIS OLYMPIC VILLAGE, INVENTING TOGETHER THE EUROPEAN CITY OF 2050 12 March 2019 – 17.30 - 18.30 Ruby Room – Palais 5

purchases made by Chinese investors, who have also shown a keen interest in Osaka properties. Growth is also expected in Tokyo’s commercial real estate market. There has been upward pressure on rental prices for newly developed office properties as capital floods into the city. This growth is expected to continue at least through 2019. Of particular interest is the Shibuya district of the Japanese capital, which is currently undergoing extensive redevelopment. By 2023, the district will have expanded its commercial real estate volume by 800,000 sq m. Given the strength of economy at the moment, it seems likely that Japan and Tokyo will enjoy continued growth long after the 2020 Olympics have become a happy memory. CONFERENCES & EVENTS AT MIPIM TOKYO: POST OLYMPIC MARKET 13 March 2019 –11.15 - 12.00 Beige Room – Palais 3

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RICS REPORT PUTS DIGITALISATION ON ECO AGENDA GLOBAL real estate professional body RICS, in partnership with Morphosis, has launched a tool for action that redefines sustainability in response to the opportunities and risks of digital technologies. The report, Crossing The Threshold, presents digitalisation as a megatrend that, alongside urbanisation, globalisation, climate change and others, is reshaping our world and redefining the global sustainability agenda. It outlines the opportunities and challenges emerging for the property industry, ensuring digital innovation is sustainably and ethically implemented. Crossing The Threshold is written with creators, owners, occupiers and operators of real estate and cities in mind, according to Chris Nicholl, RICS’ managing director for ASEAN and Oceania. “Crossing The Threshold helps us all to provide leadership in an area fundamental to future success and prosperity,” he said. “It reminds us to put ethics at the heart of our decision-making. In so doing, we serve the interests of today’s society and those of future generations in equal measure.”

Tim Henman prepares to Make A Racket in Cannes TENNIS star Tim Henman will be at MIPIM to lend his support to the charity doubles tournament, the MIPIM Tennis Classic, now in its fifth year. The organisations supported by this year’s event are homeless charity LandAid; Bright Ideas for Tennis, which supports the sport across the UK; the Cannes Community Fund; and the Tim Henman Foundation. Henman launched his foundation while still a full-time player, inspired by the many charities that called on his goodwill while he was enjoying worldwide fame. “Also, I was chairman of the ATP charities programme and it was while that was all happening that I decided I’d like to have my own,” he told the MIPIM Preview. The Foundation started small but, six years ago, went through a re-launch, focusing particularly on the health and education of disadvantaged young people. “It’s very satisfying because you can follow the progress and see where the work and the money is going,” Henman said. “If you take on a six-year-old girl, you know you need to have a plan for the next 12 years, so it’s a real tangible thing that you’re doing.” This year in Cannes, competitors

Former UK number-one and world number-four Tim Henman in action

will not only be playing for the Make A Racket trophy but can also win a coaching session with — and even play against — the one-time world number-four. Henman was invited to take part in this year’s event by former Davis Cup player Danny Sapsford, who now runs Bright Ideas for Tennis. And he didn’t need much persuading: “A day in the

Sunny outlook for Cyprus’ hotels A RECORD increase in tourist arrivals to Cyprus has driven strong demand for hotel occupancy, with construction on at least nine new hotel complexes under way, according to a report by KPMG into the key trends in the real estate market on the island. Projections show a sharp increase in future supply, with the number of beds reaching 90,000 by the end of 2019, followed by an ad-

ditional 2,000 by 2020. Residential activity also continued its upward trend throughout 2018, with an increase of 21% in sales. The popular resort of Limassol on the southern coast of Cyprus has the biggest market share at 37%, but Famagusta saw a 37% uplift in sales in 2018. George Campanellas, director general of Invest Cyprus, said: “Increased activity levels both in terms of transactions and new

permits for development demonstrate the enhanced confidence in the real estate sector. This demand is coming from foreign investors and the domestic market and has led to a revival of the construction and property-development sectors.” This MIPIM will see the largest-ever delegation from Cyprus, including leading developers Cybarco, Leptos Estates, Ayia Napa Marina and Pafilia. Among the

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South of France in March and a contribution to my charity? It’s a no-brainer, really!” CONFERENCES & EVENTS AT MIPIM The MIPIM Tennis Classic, in association with Towergate Insurance, is on March 13, 2019 at the Tennis Club De Cannes. Contact: events@wlcreative.org.uk

projects on show will be City of Dreams, a luxurious integrated casino resort by Melco Resorts & Entertainment and Cyprus Phassouri (Zakaki). Plans include a 500-room, five-star hotel, 136 gaming tables and 1,200 gaming machines. Construction is under way and is expected to be completed by 2021. CONFERENCES & EVENTS AT MIPIM EUROPE: MEDITERRANEAN REGION & INVESTMENT 13 March 2019 – 16.30 - 17.15 Beige Room - Palais 3

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Egypt’s culture and ambition meet in Cairo’s Capital Park DESIGNS for the commercial backbone of Cairo’s new administrative capital — the Capital Park development corridor — have been unveiled by international services group Dar on behalf of the Egyptian government. Capital Park, which is located 45 km east of downtown Cairo, will ultimately have a population of 6.5 million people. Covering an area of 23 sq km and with a planned built area of about 17 million sq m, the new commercial hub will consist of three distinctive commercial zones: Gateway, Downtown and Central Business District (CBD). The districts are centred upon a world-class Central Park, larger than the size of New York’s Central Park

Dar’s design for Capital Park, Cairo’s new 23 sq km administrative capital

and bookended by a new grand mosque to the west and Africa’s tallest tower to the east. As main consultant, Dar is undertaking masterplanning ser-

Gare du Nord gets in shape for Olympics

The revamped Gare du Nord in Paris

FRENCH railway operator SNCF has unveiled plans to triple the size of the Gare du Nord terminus in Paris ahead of the 2024 Olympic Games. The project, which will be delivered through a joint venture between SNCF Gares & Connexions and property developer Ceetrus, will allow the station to accommodate an additional 100,000 passenger movements a day. This will be achieved by enlarging the departure hall, extending the Eurostar terminal and improving ac-

cessibility with a façade on to Rue du Faubourg-Saint-Denis. The overall floorspace will increase from 15,000 sq m to more than 37,000 sq m. SNCF Gares & Connexions CEO Patrick Ropert said: “Each time we transform a train station in Paris, we transform part of a Parisian neighbourhood. Tripling the size of the Gare du Nord station for the 2024 Olympics is a huge challenge, which we are undertaking with great determination and pride.”

vices for the whole Capital Park corridor, as well as detailed architectural and engineering design services for the CBD. Site-preparation works are in progress for

the latter, which is earmarked as the first phase of construction. The Egyptian government sees Capital Park as a symbol of Egypt’s rich culture and progress. The country’s president, Abdel-Fattah al-Sisi, said: “The new administrative capital city will provide outstanding services and a high quality of life for the citizens of Cairo and the surrounding area. The new city will also create a variety of job opportunities as part of a comprehensive development framework.” He added: “Once the capital is complete, it will be vital to continue to upgrade the infrastructure and provide constant maintenance, to very high standards, across the various projects, and to provide ongoing high-quality services for citizens, to guarantee a sustainable city.” CONFERENCES & EVENTS AT MIPIM MENA: TRANSIT ORIENTATED DEVELOPMENTS 13 March 2019 – 15.15 - 16.00 Beige Room – Palais 3

ALLARD’S HOSPITAL HITS TARGET CIDADE Matarazzo, the former Matarazzo hospital in Sao Paulo, Brazil that is being renovated by Groupe Allard, has a key landmark in sight with the announcement that the scheme’s Rosewood hotel and apartment complex is on target to open in 2020. The hotel will be sited in one of the restored neo-classical hospital buildings. In addition, 120 apartments are being built in an adjoining tower

designed by Jean Nouvel. The interiors will be by Philippe Starck. The €230m investment by French tech entrepreneur and hotelier Alexandre Allard will create a new 27,000 sq m retail, cultural and gastronomic hub out of the derelict hospital buildings. The complex will be surrounded by parkland to form a green oasis in the middle of one of the world’s harshest urban environments.

Alexandre Allard: creating a green oasis in Sao Paulo

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Shaping the future If you can imagine it, somebody, somewhere, is probably developing it. The new generation of projects on display at MIPIM 2019 — from rooftop ski slopes to giant observation wheels to entire new city districts — reflects not only the diversity of property types on the market, but also the ambition and audacity of today’s developers DUNDEE WATERFRONT, DUNDEE, UK Mixed use. Presented by Scottish Cities Alliance

MERCAFIR, FLORENCE, ITALY Mixed use. Presented by Italian Trade Agency

WITH a gross floor area of 155,842 sq m, Dundee Waterfront is one of the largest active regeneration projects in the UK. The primary investment opportunities are within the Central Waterfront, which includes a number of ‘shovel ready’ sites that are wholly owned by Dundee City Council. Development at Dundee Waterfront is based on a visionary masterplan that proposes 89,287 sq m of commercial space, 4,000 sq m of hotels, 42,155 sq m of residential space and 19,880 sq m of active ground-floor space. Significant public and private investment has already been made to develop the necessary infrastructure, which includes a new railway station, serviced sites for development, civic space and the V&A Dundee museum.

MERCAFIR is a new multi-purpose food centre in Castello, north of Florence. It will become the heart of a new settlement covering a gross surface area of more than 65,000 sq m: 28,000 sq m for light industrial uses, 30,000 sq m for the market itself and the remainder given over to retail and offices. Relocating the city’s fruit-and-vegetable market to its new 16.5 ha site will improve access to the main road network. The project will also transform Mercafir into a landmark and create new growth opportunities for existing companies. Ancillary facilities will include workshops to host a food-education project for children, spaces for agri-food start-ups, catering outlets, commercial spaces and an ‘opportunity market’ for local citizens.

CLOS PARADIS, VAR, FRANCE Residential. Presented by Sogeprom

LANDMARK, BAKURIANI, GEORGIA Leisure. Presented by DUX Development DUX DEVELOPMENT has started on the construction on one of the largest and most innovative projects in the Georgian ski resort of Bakuriani. The $24m project is planned to be completed by 2023, in time for the FIS Freestyle Ski and Snowboard World Championship. Uniquely, the complex will feature a rooftop ski slope, allowing visitors to take an elevator up to the rooftops of the four building blocks and ski back down. Three blocks are designed as hotel-standard apartments, with a fourth devoted to commercial uses, including restaurants, bars, a swimming pool and a spa. The total construction area is 24,000 sq m. Construction on the 8,000 sq m first phase began in March 2017 and is expected to open in December 2020.

CLOS Paradis is a new residential project that is coming to life in the Var region of Provence. Located within a large vineyard on the historic Chateau Paradis estate, Clos Paradis will consist of two buildings — designed “on a human scale” — offering 60 new homes, ranging in size from two to four bedrooms. Forty-two of these units will be sold on the open market, with 18 reserved for social housing. Despite its idyllic rural setting, the new residential community is close to shops and within 10 minutes of the major A8 and A57 highways. The commercial launch of Clos Paradis took place in November at Chateau Paradis. Nearly 50% of the new units were reserved during the opening weekend.

MIPIM PREVIEW • 34 • February 2019

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MAGOK, SEOUL, SOUTH KOREA Mixed use. Presented by Seoul Housing & Communities Corporation SEOUL’s 365 ha Magok district is being masterplanned as the South Korean capital’s premier industrial complex for the fourth industrial revolution. It will be home to a number of R&D clusters, as well as a science park and an eco-friendly residential area. Located close to Incheon and Gimpo airports, Magok’s excellent international connections and local accessibility make it a key gateway, not just to Seoul but to North-East Asia. Magok is designed to be a self-contained town embodying green innovation and high-tech convergence. At its heart will be open and wooded areas, a lake, a marshland eco-park and a botanical garden. In parallel, the Magok industrial complex is emerging as an urban high-tech industrial complex that combines a range of industrial functions, including advanced research and high-tech manufacturing.

GIANTS ON THE QUAYSIDE, NEWCASTLE UPON TYNE, UK Leisure. Presented by NewcastleGateshead Initiative DEVELOPER World Wheel Company has submitted a planning application for north-east UK city of Newcastle’s £100m Giants on the Quayside development, featuring Europe’s tallest observation wheel, the Whey Aye. The five-storey Wheel Terminus building will contain up to 8,000 sq m of commercial space. The 32,000 sq m Quayside development will feature a destination F&B experience called the Giant’s Quay; 8,000 sq m of commercial space; a 700 sq m LED screen and a family entertainment centre with trampolines, climbing walls, a skywalk and a cafe; and the Geordie Giant, a 12 m tall steel structure. The Giant Sport Deck will consist of a multi-purpose play and sports complex, with covered five-a-side pitches, tennis courts and a state-of-the-art virtual golf club.

BIOTIC, BRASILIA, BRAZIL Mixed use. Presented by Terracap BRAZILIAN development agency Terracap has established a special-purpose subsidiary — BioTIC S/A — to implement the 96 ha BioTIC technology park in Brasilia. Focused on bio, information and communication technology, BioTIC will become the main centre of scientific innovation development in Brazil’s Federal District. The project will house a range of companies, as well as research institutions and innovation centres. “Terracap is very supportive of this initiative,” said the agency’s technical director Carlos Leal. “We have dedicated time and effort to these new projects that are of great relevance, not just locally, but also nationally.”

DAXING NEW TOWN, BEIJING, CHINA Mixed Use. Presented by Chapman Taylor CHAPMAN Taylor’s competition-winning Daxing New Town concept creates a 1,380 ha innovation district for Beijing. Set in a landscape of parkland and lakes, the ambitious mixed-use project strikes a balance between the requirements of urban and rural living, while blending with its surrounding natural environment. The new district will include residential buildings, shopping centres, entertainment venues, cultural amenities, offices, co-working spaces and hotels. Located to the west of the Beijing-to-Shanghai high-speed railway line, the area will incorporate new infrastructure and improved transport links, with underground space used to create a three-dimensional city. Emphasis will be placed on the ecological and cultural elements of the district, which is envisaged as an attractive, self-sustaining place in which to live and work.

MIPIM PREVIEW • 35 • February 2019

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THE

PEOPLE WHO MAKE THE PLACE THAT SHAPES THE WORLD

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Montréal is a great example of a destination wheel with its roof-top terrace, bistro, coﬀee shop, icecream corner and central plaza, oﬀering visitors to the Old Port of Montreal a reason to come, hang around and come back!

Turning your development into a destination

Giant Wheels are gaining popularity as a valuable addition to mixed use and leisure developments. They create traﬃc and oﬀer great potential for an interesting return on investment. Integration is key to convincing investors and local authorities.

In case you are interested to discuss what a giant wheel can do for your project, city, or capital, do not hesitate to contact Dutch Wheels. Visit our stand No. P-1.K68

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SPECIAL REPORT

ENGAGING THE FUTURE Across the globe real estate professionals are wrestling with new challenges as new technology and evolving human behaviour place new demands on the buildings we live, work, shop and play in. It is certain that buildings will become more sustainable, and more sensitive to the needs and aspirations of occupiers. But how will the industry deliver this while at the same time driving asset performance? The old certainties no longer apply but for those who grasp the opportunities and manage the risks of the new property paradigm, the potential rewards are great. Now is the time to engage the future.

IN THIS SECTION: INNOVATION

STRATEGY

Occupiers and owners are embracing the concept of ‘property as a service’

Investors seeking higher returns are increasingly adopting more active approaches to asset management

SUSTAINABILITY

New construction materials and techniques are cutting waste, reducing energy usage and improving building efficiency

THE SOCIAL IMPACT OF REAL ESTATE

Local authorities, town planners, developers and architects are rethinking the way they approach the design of cities.

MIPIM PREVIEW • 39 • February 2019

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engaging the future: INNOVATION

It’s not all tech

ITH the buzz around proptech, you would be forgiven for thinking that innovation in real estate is limited to the tech community. However, that would be to ignore the fact that property is experiencing a period of huge change for a host of other reasons. Yes, digital advances are highly important and play at least a contributing role in the causes of and solutions to many other trends, but they are far from the only game in town. At the heart of the changes currently taking place is a switch in

Proptech may be grabbing the headlines, but the real estate sector is embracing innovation in a number of less obvious ways. Co-working, Airbnb and pop-ups all embody the concept of ‘property as a service’, writes Adam Branson focus on the part of both landlords and occupiers. Both parties have realised that, in order to thrive in the modern era, they need to concentrate far more on the end-users of their buildings, whether that is the worker in the case of offices or the consumer

in the case of retail. Fundamentally, “this is all about dealing with the experience of the end-user and what the end-user wants,” says Nick Wright, senior director of strategic consulting, investors, at CBRE. “That’s what is funda-

MIPIM PREVIEW • 41 • February 2019

Inside WeWork-Chelsea

mentally changing the real estate world at the moment. So a business now has to understand how to attract and retain talent. That means providing a different type of experience and that on-demand culture. The consumer is driving that change.”

Nick Wright:

“This is all about dealing with the experience of the end-user and what the end-user wants” And that, of course, also has implications for the relationship between landlord and occupier, with the concept of ‘property as a service’ coming to the fore.

engaging the future: INNOVATION “Developers and landlords have to understand how they interact with those businesses that are taking space either in their offices or shopping centres,” Wright adds. “That has changed the balance in real estate. It means more flexible lease terms, creating experiences, better placemaking and being more agile with business models.” The company that has come to represent this fundamental shift is, of course, WeWork. The growth of the flexible-office business over the last decade has indeed been remarkable. From its origins in Brooklyn, New York, WeWork now has properties in around 80 cities in more than 20 countries, including much of continental Europe, as well as the UK. The company is sometimes described as a tech firm, although its core business is providing office space, but the fact is that digital technology has been a key enabler in providing a product that so many businesses now find attractive. “For the last eight years, we’ve been building up and layering technology into basically everything that we do,” says Patrick Nelson, executive vice-president and head of Europe, real estate, at WeWork. He adds that, because the company is vertically integrated, it is able to harvest data from in-house contractors

and facilities managers, among many others, all of which can be used to enhance the service it provides. “For example, with facilities management, we have an app and a programme [that allows] somebody to go through a space and take pictures of issues want to have finalised and updated,” Nelson says. “That will be immediately sent to a tracker that our sub-contractor can immediately address. From our point of view, we can track when that issue is resolved and get updates on it and it will seamlessly link to everybody. So [it’s about] the efficiencies that can be achieved by integrating all these systems.” It isn’t just about maintenance, however. The way in which WeWork’s centres are designed is also based in-house, which means the company can learn about what works best and where, and take on board the lessons for future projects, while adapting designs for local circumstances. “Our designers will receive CADs and they can have default layouts,” Nelson adds. “What they’ll really spend their time focusing on is making sure that that particular location speaks to that particular sub-market and that particular building. For example, we would understand how different couches are used and how different

conference rooms are used in different cities by departments within companies. It’s the culmination of hundreds of little things that allows us to provide a more suitable space and a more productive atmosphere, as well as savings and productivity improvements for our customers. It’s an iterative process — a new space should be an improvement on the last.”

Patrick Nelson:

“It’s the culmination of hundreds of little things that allows us to provide a more suitable space and a more productive atmosphere” WeWork’s occupiers are also able to benefit more directly from the focus on technology. The company has developed an app that alows its members to do business together. According to Nelson, more than 50% of occupiers do so. “When I say ‘do business’, I’m talking about revenue-generating business,” he adds. “We also take the collective leverage of all of our members globally and enter into preferred-party partnerships that we can provide to our members — for example, healthcare provisions or payroll services, and things like

Joff Sharpe:

Christophe Cuvillier, UnibailRodamco-Westfield

Joff Sharpe, British land

discounts on tickets, events, concerts, rental cars or Airbnb — whatever it might be.” According to CBRE’s Wright, praising WeWork has become almost an industry cliche, but that should not take away from the company’s success. “Everyone talks about them, but they will continue to develop and grow their business and market share,” he says. “I love the fact that they’re using the data they capture from their members and buildings to help create a better experience for the end-user. It’s a great model that we should all be learning from.” Certainly, some of the most established names in real estate have been taking notice. In the UK, for instance, British Land has established its own flexible working brand in the shape of Storey. Again, the focus is on providing end-users with a service with which they can engage. “The great shift towards more flexible workspace might alarm property traditionalists and their investors,” says Joff Sharpe, head of operations and co-lead at Storey. “But it stands to reason, as with any other industry, that the alignment of businesses with the needs of their customers will pay dividends in the medium term. If property companies can demonstrate that they can help to make clients more productive, with greater wellbeing, better community integration and supported by better technology and connectivity, it’s reasonable to expect that they

“The great shift towards more flexible workspace might alarm traditionalists, but it stands to reason that the alignment of businesses with the needs of their customers will pay dividends”

MIPIM PREVIEW • 42 • February 2019

engaging the future: INNOVATION

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how you charge for it.” A greater focus from landlords on the needs of both occupiers and end-users is not limited to the office market, however. Retail, too, is having to adapt, largely as a result of the strong headwinds caused by the rise of e-commerce. This was something that was made abundantly clear in a keynote session with Christophe Cuvillier, group CEO of Unibail-Rodamco-Westfield, at MAPIC last November. Cuvillier stressed the importance of digital integration, but also noted that his company now rotates 10% of its retailers every year and in every mall, in order provide a fresh experience for consumers. The need to come up with ways to keep shoppers engaged is also exemplified by the rise of the pop-up store — a phenomenon that has been facilitated by tech

firms such as Go—PopUp in multiple European cities. Once a fringe activity motivated by necessity, bringing in pop-ups is now seen as an end in itself. “The pop-up-shop concept is evolving rapidly,” says Paul Souber, co-head of EMEA retail at Colliers. “What was often just a way of filling vacant stores and mitigating cost is now being used to test brands, boost footfall and access the opportunities brought by both the changing seasons and cultural events, such as festivals and major sporting occasions.” For major international landlords, Souber adds, there is no reason why the pop-up concept cannot be made to work on a continental, or even worldwide scale: “As the concept proliferates, there’s the prospect of European — or even global — rotating pop-up opportunities that

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MIPIM PREVIEW • 43 • February 2019

would give brands the chance to simultaneously test their offer across international locations and in the context of different consumer settings.” So while digital technology is playing a key role in enabling property companies to innovate, the motivations for those innovations go far deeper. The ways in which we live, work and play are changing — and the successful companies will be those who understand that traditional business models need to change with them. CONFERENCES & EVENTS AT MIPIM

WORKPLACE TECHNOLOGY: IMPROVING THE EXPERIENCE 14 March 2019 – 10.00 - 10.45 Coral Room - Palais -1 MILLENIALS: SATISFYING THEIR EXPECTATIONS 14 March 2019 – 11.15 - 12.00 Coral Room - Palais -1

will receive a good return for their efforts.” Interestingly, CBRE has also got in on the act with its Hana brand. Launched towards the end of 2018, the business is based on the idea that the agent will act as operator on behalf of landlords across Europe and beyond. More unusually, the model also involves the company putting in a 25% equity stake to provide reassurance to landlords that it genuinely has skin in the game. “Part of innovation is about operationalising real estate and getting away from the traditional models,” Wright says. “Hana is that operation. We’ve got a lot of demand — people are very interested in this — and it’s a global project, so we will be launching Hana spaces soon. It indicates that there is a new way of looking at how you engage and encourage consumers into your space and

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engaging the future: STRATEGY

Operators like Patrizia see multifamily housing as a defensive play

Round in cycles

S INVESTMENT returns tail off, investors are reassessing their strategies in search of performance. “Global returns are at an alltime low,” says Timothe Rauly, head of the funds group at AXA IM – Real Assets. “We’re at a mature part of the cycle,” adds Richard Divall, head of cross-border capital markets at Colliers International. “Winter is coming but it hasn’t properly arrived — it could potentially still be another year or two away.” For many, this means a passive approach to property will no longer suffice — more investors

Across the developed markets of North America and EMEA, there are signs that the current bull run is coming to an end. Graham Parker asks how investors are intending to navigate the troughs that follow every peak are being driven to core-plus and value-add strategies that require a more hands-on approach to asset management. Schalk

Visser, partner and head of private-capital markets at Europa Capital, explains: “Perceptions of a ‘late-cycle’ investment envi-

Richard Divall:

“Winter is coming but it hasn’t properly arrived — it could potentially still be another year or two away” MIPIM PREVIEW • 45 • February 2019

ronment are clearly impacting investor appetite for certain strategies and we have seen investors typically defaulting into either core investing or more value-add strategies, with the latter offering a more alpha-driven return.” This is leading to more diversity in investment strategies, as different classes of investor pursue different approaches to meet their individual requirements in terms of income profile and capital protection. “Since the global financial crisis, investors have come to behave differently,” says Rob Wilkinson, CEO of AEW Europe. “The sector has much less leverage and that’s down to a mix of self-discipline and the unwillingness of banks to lend. In the last three years, very positively, we’ve seen a more intelligent approach to investment in real estate — investors are looking at the fundamentals.”

engaging the future: STRATEGY “We’ve witnessed the universe of investors diversifying,” adds Giuseppe Oriani, CEO, Europe, at Savills Investment Management. “Not all investors want inflation protection from long-term income. Value-add is an example of this, with asset management-intensive strategies. It’s a world that’s developing quite rapidly.” This diversity is also reflected in the locations that investors are targeting, with new markets emerging to rival the traditional gateway destinations. “Global destinations like London and Paris are still in demand,” says Jan-Willem Bastijn, head of EMEA capital markets at Cushman & Wakefield. “Anything trophy in any gateway is highly sought after, especially when it’s mixed-use because that diversifies the risk.” But Bastijn also sees new rivals emerging as telecoms, media and technology businesses challenge financial services as the main drivers of occupational demand in the office sector. “The other piece is investment into growth cities on the back of technology,” he says. “That’s driving demand in Berlin, Dublin, Lisbon and Amsterdam.” Colliers’ Divall says this is especially apparent in Germany, where Berlin is outperforming the financial capital Frankfurt. “For the past two years, Berlin has been the best city in Europe for investors,” he adds. “It’s on a different scale to Frankfurt and it’s not just dependent on finance. Plus it’s affordable for young people and that’s driving businesses there. There’s talk of office rents in Berlin doubling.” Away from the core office market, the retail and logistics sectors have performed very differently — although, perversely, the big driver for change in both sectors has been the growing shift in commerce from physi-

Adolfo Ramirez-Escudero, CBRE

cal stores to online platforms. Logistics has become the darling of the investment market, with some massive deals by sovereign wealth funds, including CIC’s purchase of the Logicor platform and GIC’s purchase of P3 Logistic Parks. However, AEW’s Wilkinson warns that, even in this boom sector, it is not sufficient just to buy the market: “Logistics breaks down into three sectors: logistics parks, where you have critical mass and multimodal links, build-to-suit and last-mile. We’re less keen on the middle one but last-mile assets are increasingly sought after by the third-party logistics suppliers. The only issue is that many urban sites still have a higher value for residential.” The beleaguered retail sector, by contrast, has seen rising vacancies, rents stagnant at best and investors looking to lessen their exposure. However, Cushman & Wakefield’s Bastijn says that, at some point, the sector will be over-sold. “There is dry powder and it’ll come into play when retail returns hit double digits,” he adds. He predicts that 2019 will be the year of retail repricing: “It’s already happened in the US and UK, and the public markets are already pricing that in.” AEW is one of those investors waiting to pounce, according

Richard Divall, Colliers International

to Wilkinson. “Not all retail is ugly,” he says. “We’ll see further pain but I believe in centres that offer a distillation of leisure, convenience and amenity. I’d be very happy if people unloaded all their shopping centres, because we’d see that as an opportunity.”

Rob Wilkinson:

“Not all retail is ugly. We’ll see further pain but I believe in centres that offer a distillation of leisure, convenience and amenity” Increasingly, investors are looking beyond the traditional office, retail and logistics sectors at what were once considered ‘alternatives’, but are now increasingly mainstream, where higher returns are still available. Healthcare facilities, hotels, student housing and data centres have all seen strong inflows of capital. Savills’ Oriani observes: “Late in the cycle, we are seeing a move to assets that are more defensive — for example, nurs-

MIPIM PREVIEW • 46 • February 2019

ing homes, residential and student housing. They are less correlated to the economic cycle and offer long-term contracts that bridge across any downturn in the cycle.” And Europa Capital’s Visser counts multifamily housing as part of this sector too: “With regard to sector preference, a growing number of investors are recognising the defensive qualities of well-located PRS investments, particularly those investors with long-term investment horizons.” AXA has been at the forefront of this process, but Rauly observes that these sectors pose challenges for investors because performance is driven as much by the operating company as it is by the bricks-and-mortar. “You can’t disconnect the asset from the services,” he says. Healthcare sector specialist Threestones Capital was ahead of the curve when it moved into these asset classes, but the wider market is now catching up. Managing partner Giovanni Perin says: “In niche, specialist investments like nursing homes, the quality of the operator is key. Plus you have to analyse these sectors very separately. Healthcare property offers long-term contracts, it is typified by local markets, and it’s driven by demography.” These factors, Perin notes, make it attractive to major players. However one barrier is that healthcare is a fragmented industry typified by small lot sizes. “Our typical deal size is €15m,” Perrin adds. “There is a lot of demand from pension funds and sovereign wealth funds to buy into the sector — they’ve

CONFERENCES & EVENTS AT MIPIM

ECONOMY: INFLUENCING REAL ESTATE INVESTMENTS 14 March 2019 – 10.00 – 10.45 Magenta Room - Palais -1

engaging the future: STRATEGY identified the mega-trends driven by demographics — but they want scale.” Rauly agrees: “If you only have €20m in healthcare, you’re at risk. We make sure we have scale in each sector we invest in, and we’ve achieved this by investing in operational platforms. For instance, we bought Retirement Villages in the UK and, at the other end of the spectrum, we bought DATA4 in France, which manages and operates data centres.” He concludes: “We’re not managing properties, we’re managing businesses. You need granular knowledge of how their businesses work and that trend’s only going to accelerate.” Another sign of diversification identified by Colliers’ Divall is the growing willingness of investors to play on the debt side of the deal rather than stick to equity. “The likes of Invesco, AXA and Barings are going into the debt market,” he says. “They see debt as a defensive way of putting money into real estate late in the cycle.” As an example, he points to a recent deal in London where AustralianSuper and Nuveen Real Estate jointly

financed the One Crown Place project with a £280m (€310m) development loan. Another challenge all investors are facing is the increasing mismatch between investors’ and occupiers’ attitudes to property. More and more occupiers are looking for flexibility in their property deals, but investors have traditionally been attracted to property because it offers long-term secure income. Oriani at Savills Investment management says: “Players like WeWork have exploited this, renting in a wholesale modality and then re-letting space short term. They are exploiting the difference between the creditworthiness of their own business and that of their clients. But there are also tenants that appreciate the recognition that a location brings to them and that means they want to stay long term.” Adolfo Ramirez-Escudero, CBRE’s chairman of capital markets, Continental Europe, and CEO of CBRE Spain, adds: “There is an inconsistency between occupiers’ demand for flexibility and investors’

demand for long-term income. Aggregators like WeWork are a solution for parts of the market, but landlords can do it as well by recognising that part of the space needs to be dedicated to non-traditional leases.” So what does the future hold? Experts agree the investment climate is going to become more challenging. “Quantitative easing is going to be finishing in 2019,” says Colliers’ Divall. “US interest rates are heading up. The UK will follow, but the EU is unlikely to do anything before the second half of 2019.” But weighed against this, Divall does not see the oversupply of floorspace that characterised the end of previous cycles: “There is a lack of development across Europe and that means we’re seeing genuine rental growth. The central business districts of Paris, Berlin, Munich and Stuttgart all have vacancy rates at historic lows. That gives confidence that rental growth will carry on and that, in turn, underpins investment.” Meanwhile, a more diverse and complex investment market is increasing the demand for data and advice — and that is chal-

AXA bought the Retirement Villages platform in the UK

MIPIM PREVIEW • 47 • February 2019

lenging property consultants to become more than just brokers. CBRE’s Ramirez-Escudero adds: “Clients’ needs are becoming more diverse, but real estate advisors can still add value — they are just being asked to think harder.”

Adolfo RamirezEscudero:

“Clients’ needs are becoming more diverse, but real estate advisors can still add value — they are just being asked to think harder”

CONFERENCES & EVENTS AT MIPIM ECONOMY: INVESTMENT & INNOVATION 14 March 2019 – 11:15 - 12:00 Magenta Room - Palais 3

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engaging the future: SUSTAINABILITY

Good for everyone S

U S TA I N A B I L I T Y across all industries is a hot trend. But in the real estate industry, considering the environmental impact of construction — and doing everything possible to minimise it — is crucial for a number of reasons. “More and more owners are realising that sustainability in operation constitutes a unique selling proposition and, if implemented correctly, can also save considerable costs,” says Dr Daniel Haussermann, CEO at Apleona Real Estate Management.

There’s a lot of talk about the new construction materials and techniques that are cutting waste, reducing energy usage and improving building eﬃciency. But is the real estate industry doing enough to lessen its environmental impact, both during and after construction? Liz Morrell reports

Daniel Haussermann:

“More and more owners are realising that sustainability in operation constitutes a unique selling proposition and can also save considerable costs”

As a result, a number of new materials and techniques are emerging to cut waste, reduce energy use and improve efficiency during the construction phase. But it is not just during building that this is important. There is also a greater focus on the long-term impact of properties once they are occupied, driven by the fact that around 80% of a building’s total environmental impact occurs while in use. “Buildings account for 40% of global energy consumption and contribute an estimated 30% of MIPIM PREVIEW • 49 • February 2019

engaging the future: SUSTAINABILITY global annual greenhouse gas emissions to the environment. Therefore, the real estate sector presents significant opportunities for reducing contributions to climate change and environmental issues,” says Lucy Auden, global head of ESG (environmental and social governance) at Savills Investment Management.

Lucy Auden:

“Buildings account for 40% of global energy consumption and contribute an estimated 30% of global annual greenhouse gas emissions to the environment” One such method has been the introduction of the Passivhaus Standard for energy-efficient buildings. It was developed in the 1990s by Dr Wolfgang Feist with the aim of drastically reducing the heat loss of a building and minimising its energy demand. Such buildings are characterised by excellent thermal insulation, triple-glazed windows and a ventilation system that offers heat recovery among other features. The first such property was built in 1991. According to the Passivhaus Institute, more than 1 million sq m of Passivhaus Standard real estate has now been built, including hotels, schools, offices and residential. In Frankfurt, the world’s first Passivhaus hospital is currently under construction and, in Bilbao in Spain, an 88-metre high-rise is to become the world’s tallest such development.

In 2014, the Passivhaus Institute also extended the standard to include Passivhaus Plus and Passivhaus Premium classes. “The two concepts fit together very well: energy efficiency and renewable energy are a perfect match,” says a spokesperson for the Institute. The investment costs for the construction of a Passivhaus building are a little higher than those of a conventional building, but its reduced energy requirements for heating or cooling mean that its running costs are lower. Developers are increasingly using renewable generation, including solar-PV, wind and geothermal products, to help make construction more sustainable. These techniques allow buildings to use natural energy to heat and light space — for example, by replacing electrical water heaters with renewable energy-based light heaters. “Sustainability in real estate is a crucial issue as many factors contribute to the daily impacts of buildings on the environment and society,” says Johann Viljoen, head of corporate sustainability at Schindler. His company contributes to reducing such impacts through the production of escalators and elevators that use less energy, as well as the modernisation and maintenance of existing units, which helps to reduce energy and extend product life. “Our role is to ensure that we provide energy-efficient elevators and escalators to the market and, through regular maintenance, ensure that the units operate at optimum levels,” Viljoen says. New technologies and suppliers are emerging in this space all the time. Roy Den Hoed, president of Green Planet Architects (GPA), cites two examples of technologies that will contribute to sustainable

Arlin Morales Lemus, Green Planet Architects

construction in the future — and both will be exhibited on GPA’s stand at MIPIM. One is from Norwegian company Spacemarket, which has created a digital tool using AI and an unlimited database to help architects and real estate developers create the best, most sustainable concept for each building site. The second is from Solaxess, a Swiss company that has invented what it calls ‘white solar technology’. This consists of a white nano-technology film for photovoltaic solar panels, which can be directly integrated into a building’s facade. Meanwhile, Apleona HSG Facility Management is currently implementing a project to save energy by optimising the operation of building systems. The pilot Energy Savings Meter programme is funded by BAFA and BMWi. “The aim is to reduce the effort and costs of traditional measuring systems and human resources by using innovative measuring and monitoring systems, and to develop an efficient IT platform as an operator of energy-intensive commercial and industrial real estate, as well as energy contracting projects,” says Frank Katzemich, head of Apleona’s energy and sustainability cen-

MIPIM PREVIEW • 50 • February 2019

Dr Daniel Haussermann, Apleona Real Estate Management

tre of competence. “The focus is on identifying, evaluating and implementing operational optimisation and energy-saving measures in buildings as intelligently and as automated as possible.” It is hoped the resulting savings will prove to be “plausible, efficient and cost-effective”, Katzemich says, adding: “The target systems for the savings to be generated are HVAC systems, local combined heat and power, and refrigeration.” The drive for change is coming from a number of sources, from cost savings to investor pressure to be more environmentally sensitive. “There are well documented bottom-line gains from sustainability initiatives, such as energy reducing leading to reduced costs of occupation. And there is an expectation, too, from institutional investors that sustainable objectives form part of a fund’s strategy,” says David Hirst,

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engaging the future: SUSTAINABILITY chief operating officer of UBS Asset Management’s Real Estate and Private Markets, and chair of the Real Estate & Private Markets Sustainability Workgroup. Legislation is also forcing change. From 2019, the revised Energy Performance of Buildings Directive (EPBD) stipulates that, in the European Union, all public buildings — and from 2021, all private buildings too — must be near zero-energy buildings. And it is a trend that is spreading worldwide. “Buildings take up a significant percentage of the world’s resources, including water and wood, but homes designed with the environment offer more advantages than just conservation,” says Arlin Morales Lemus, a sustainable architect and vice-president of operations at Green Planet Architects. Morales Lemus says that developers need to think in terms of the three Rs of sustainability: reduce, re-use and recycle. But, she adds, for the greatest impact, developers must also consider sustainability from the outset: “According to the World Green Building Council, the construction sector accounts for up to 40% of the waste in landfill sites worldwide. I would say that, more than materials, it is design and planning that helps cut waste and improves efficiency.”

Arlin Morales Lemus:

“According to the World Green Building Council, the construction sector accounts for up to 40% of the waste in landfill sites worldwide”

An example of this is reducing waste during construction by designing with knowledge of all materials, using standard sizes and planning ahead. Re-using an existing building, meanwhile, minimises the use of new raw materials. It is often possible to re-cycle materials either on the same building or on a different construction, Morales Lemus points out. Modular construction is also helping to reduce both time and waste in construction, since prefabricated or modular buildings are planned ahead and designed to fit. They also work efficiently from a cost saving and speed point of view. “One example is the use of modular construction for drive-through cafe pods for Starbucks and Costa, where the traditional cost of construction might make such a scheme unviable,” Hirst says. The increased adoption of accreditation schemes such as LEED, HQE and BREEAM are also helping to drive change, according to Green Planet Architects’ Morales Lemus. She says there are now nearly 80,000 projects participating in LEED across 162 countries, of which 32,500 were certified commercial projects as of 2016. Meanwhile, BREEAM has around 548,500 certificated buildings so far and more than 2.25 million registered. “Certifications help improve how buildings are designed, constructed and operated,” Morales Lemus says. “They provide the designers, architects and developers with tools and guidelines on how to create more sustainable buildings. I don’t think any of them are perfect, but they are a very positive starting point to introduce, regulate and normalise sustainable design and construction. And with the environment ever

higher on the agenda, it is also an increasingly important way to set buildings apart from their competitors, she adds. Schindler’s Viljeon says such certifications are becoming an increasingly important part of the construction process. “It’s essential to take account of green building standards such as BREEAM, LEED, Minergie and Green Star when planning, constructing and operating sustainable buildings,” he says. “We comply with the specifications of the relevant international codes, and assist architects and designers in obtaining green building certifications.” UBS’ Hirst says that accreditation is increasingly being demanded by occupiers and investors. “In our experience, where we have speculative new build or refurbishment grade-A office schemes in developed central business districts, we will seek some sort of accreditation,” he says. “Potential occupiers of such buildings expect their buildings to achieve the same. If you don’t have it, you simply won’t get on potential tenants’ viewing lists.” Ian Bragg, head of building consultancy at BNP Paribas Real Estate, says that he has also witnessed landlords become increasingly attracted to green technologies designed to improve the efficiencies of their operational investment assets, driven both by regulation and tenant demand. According to Bragg, this is something the industry as a whole should be considering, whether during initial construction or the refurbishment of existing properties. “Some of these technologies are more easily incorporated during a significant refurbishment, when the building is vacant,” he adds. “These include sensors that monitor people movement and occu-

MIPIM PREVIEW • 52 • February 2019

pancy rates, so that heating, cooling and lighting can all be controlled.” Other measures, such as solar shading to windows, energy-efficient lighting and smart meters, are also useful measures, Bragg suggests. Hirst agrees that sustainability also needs to be considered for buildings in use. “There are many things that can be done with standing investments, but clearly you need to engage with your occupiers [to see] what they want to achieve too. ‘In use’ certifications and energy audits can provide a useful basis for those discussions. We have rolled out a number of initiatives, such as the inclusion of car-charging facilities, good quality recycling facilities, use of renewables like PV panels on buildings, use of self-cleaning materials to facades, etc. Simply changing to LED lighting can be very easy and provide real energy savings.” The opportunities for more sustainable construction as well as more sustainable post-construction building management are wide-ranging — and the benefits, both financial and environmental, of adopting such measures even more so. It is a trend that the industry cannot afford to ignore.

Lucy Auden, Savills Investment Management

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engaging the future: THE SOCIAL IMPACT OF REAL ESTATE

Stress and the city The struggle to cope with life in our thundering modern cities is driving developers, local authorities, town planners, mall owners, architects and business leaders to rethink the way they approach the design of cities. Ben Cooper reports

HE SEARCH for happiness, wrote Canadian author and urbanist Charles Montgomery in Happy City: Transforming Our Lives Through Urban Design, “shapes cities, and cities shape the search in return.” He concludes: “It is impossible to separate the life and design of a city from the attempt to understand happiness, to experience it and to build it for society.”

Charles Montgomery:

“It is impossible to separate the life and design of a city from the attempt to understand happiness, to experience it and to build it for society”

Contrast the idealism of this statement with research from international think-tank the Centre for Urban Design and Mental Health (UD/MH), which shows that people living in cities are 40% more likely to suffer from depression then those living in rural areas, and 20% more likely to be plagued by anxiety, and the problem — or at least, the challenge — becomes more obvious. Cities are stressful places. And they will become more so as

Egypt’s New Administrative Capital will feature a new Central Park

MIPIM PREVIEW • 55 • February 2019

the world’s population grows and becomes more urbanised — globally, by 2050, seven out of 10 people will live in cities. The denser the place, the faster it all has to run, and the more frenetic life becomes, leading to what UD/MH describes as one of the major contributors to human unhappiness: “overload”, defined as a damaging combination of “density, crowding, noise, smells, sights, disarray, pollution and intensity of other inputs.” The think-tank adds:

engaging the future: THE SOCIAL IMPACT OF REAL ESTATE “Every part of the urban environment is deliberately designed to assert meanings and messages. These stimuli trigger action and thought on a latent level of awareness, and become more potent as an inability to ‘cope’ sets in.” This is reflected in the three key goals for the ambitious New Tokyo New Tomorrow action plan to reform the Japanese capital. The plan’s top priorities are to create “a Tokyo where all can live with peace of mind, hold hopes and lead active lives”. To that end, the space itself is being redesigned to improve Tokyo’s citizens’ consciousness of their own health, with a focus on making the huge city safer and more friendly for elderly people. Public transport is being improved to reduce the stress of moving around the capital and cleanse the city air, and the streets and sidewalks are being redeveloped to be safer and more walker-accessible. These are just a few examples of how one major city is adapting. From Cairo to Copenhagen, imaginative new ideas are taking root; urban design is taking place with the ‘wellbeing’ of city populations in mind, and emerging technologies are enabling it all to happen in ways that town planners could not have imagined even 10 years ago. Take Copenhagen. The Danish capital is on a long-term journey to become one of the world’s healthiest and, in turn, happiest places to live. As part of the Enjoy Life Copenhageners strategy, by 2025 the city — where 50% of urban trips are already made by bicycle — is set to become the first carbon-neutral capital city in the world, and to be smoke-free. But it is not just physical health that the strategy is addressing: improving people’s wellbeing and mental

health is at the core of the plan. One of the fundamental ways in which this is being carried out is in urban design and planning — crucially, via co-operation between designers, builders, and healthcare and public services, such as day-care providers, sheltered-housing organisations and educational bodies. The ethos: in order to improve the way people think and feel, it is crucial to enhance the space around them, and the ways in which a city is networked up. Joyce Chan, sustainable design leader at international architects firm HOK, says that for this type of grand plan to come to life, city leaders and developers need to work together on the macro level. “To improve wellbeing, we need to think about things on a city scale,” she adds. “You need to think not only about buildings, but the whole journey through a city. Real estate has increased its understanding of this in the past two years. Developers are coming to us to ask specifically about wellbeing. They are getting more interested in these concepts.”

Joyce Chan:

“To improve wellbeing, we need to think about things on a city scale. You need to think not only about buildings, but the whole journey through a city” One of the facts of life is the need to work. And in cities all around the world, for a huge proportion of people this means commuting to the enclosed environment of an of-

Janjaarp Boogaard, Colliers

fice. While it has traditionally been seen as the employer’s job to create a healthy and happy work environment, JanJaap Boogaard, head of EMEA workplace solutions at Colliers International, which is active on the ING Campus project in Amsterdam, says that office developers are thinking increasingly on the city-level scale described by Chan. “Organisations are opening up more and more,” he adds. “For example, banks used to have an internal focus, but we’ve seen them start to collaborate with their wider ecosystem. To prepare for the future, investments in technologies have been made and the working environment should facilitate and stimulate this. As a result, we are seeing more organisations choosing a campus approach, instead of single-tenant buildings. They want to get out of the corporate environment and focus more on cross-organisational and cross-industry collaboration.” In the 21st century, collaboration of any kind means communication – and technology. This is where Daniel Horner, director of planning and urban design at Dar Al-Handasah, says the next generation of city planners will be looking to get things really connected. “There’s a whole wave of technology that can improve the proficiency not just of a single building, but a whole series of buildings and the sur-

MIPIM PREVIEW • 56 • February 2019

Joyce Chan, HOK

rounding street space and public realm. By networking systems, you can make cities smarter and safer and more secure. There are smart technologies that can manage lots of things, such as monitoring systems that can be used when a water pipe bursts to find the precise spot where the pipe has burst, rather than digging up a whole street. And there are smart ways to control traffic lights to allow emergency-service vehicles through and find the fastest routes through a city.” In Egypt, Dar is currently engaged in a major project to deliver a whole new administrative capital city to the south of Cairo. Meanwhile, in one of the world’s two prototype zero-carbon cities, Masdar in Abu Dhabi, a massive urban project is under way to deliver a wastefree, carbon-free city network to house 50,000 people, fuelled by a single solar photovoltaic power plant and connected up by an ultra-efficient transport system that includes vacuum tube trains. The second of these experimental city projects — Dongtan — happens to be in a country better known for rapid indus-

CONFERENCES & EVENTS AT MIPIM

HEALTH & THE CITY : AGEING IN THE CITY 13 March 2019 – 08.15 – 10.15 Gare Maritime

engaging the future: THE SOCIAL IMPACT OF REAL ESTATE trialisation, urbanisation and, in turn, some of the largest, most polluted cities in the world. China might be surging ahead economically, but in the process it is racking up a huge carbon footprint and creating some of the most chaotic cities in the world. But HOK’s Chan says the fact that the Chinese government is now embarking on more sustainable cities points to an interesting development in urban design globally. “The developed countries are actually slower then countries like China, because they know it will be restrictive to their growth if they don’t control pollution and air quality in their cities,” she says. “They are pushing a high sustainability agenda.” To this end, led by Arup and the Shanghai Industrial Investment Company (SIIC), an area almost as large as Manhattan

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has been set aside on Shanghai’s Chongming Island for one of the world’s largest real estate projects with surely one of the most ambitious intentions: to create the world’s one and only entirely sustainable whole-city development, to house 80,000 inhabitants by 2020. But most urban planners do not have the luxury of starting from scratch. The challenge for the majority of the world’s city leaders and developers is to transform and redevelop existing urban spaces with improved wellbeing in mind — the type of project international real estate advisor Pembroke is doing with a whole city block in Stockholm. Known as Project Access, the development epitomises the convergence of wellbeing and placemaking. The scheme’s newly created public spaces, extended pathways and green spaces

and housing mingle with a new LEED Platinum-certified office building in the heart of the city’s central business district. Access might just be one of the key words for developers, investors and public authorities looking to rejuvenate their city spaces. Matthew Webster, head of wellbeing and futureproofing at British Land, which last year published a major work on urban wellbeing entitled Design For Life, says that, for cities to really function healthily, openness and collaboration will be vital. “People are comfortable talking about internal environments, but we argue that we have a responsibility to consider how these spaces and places can impact on people’s health,” Webster says. “It’s about making environments really integrated and connected with cities. It’s about creating the right partnerships.”

Matthew Webster:

“We have a responsibility to consider how city spaces and places can impact on people’s health” Is it really possible to make a ‘happy city’? Perhaps not through buildings alone. But there are places where the search for it has already shaped cities — and where cities are already shaping the search.

CONFERENCES & EVENTS AT MIPIM CITIES & TECH: DELIVERING A SUSTAINABLE LIVING MODEL 12 March 2019 – 16.15 – 17.00 Beige Room - Palais 3 MOBILITY IN THE CITY 14 March 2019 – 16.30 – 17.15 Beige Room - Palais 3

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REGIONS: ASIA-PACIFIC

The wind changes

FTER nine years of expansion, Asia is feeling the weight of a China-US trade war, rising interest rates, tighter access to credit and sky-high prices. However, the market fundamentals in 2018 remained robust, with transactions for the year at record levels and large volumes of institutional capital. Commercial transaction levels reached an all-time high on a rolling 12-month basis in the first half of 2018, according to Real Capital Analytics. But some investors are beginning to question whether the long bull cycle may be reaching its peak. “Today, as central banks start to withdraw liquidity and normalise interest rates, the period of rapid yield compression is slowly but surely coming to an end,” says Shaowei Toh, head of research and strategy, APAC, at UBS Asset Management. “It’s almost certain that real estate will offer lower returns over the

next cycle than it has in the last 10 years. That said, APAC real estate continues to be among the most coveted investment options for many investors, underpinned by the compelling top-down drivers. We expect that most of developed Asia will outperform global returns from real estate, especially with the income component staying resilient and capital growth still outpacing the global average.”

Shaowei Toh:

“APAC real estate continues to be among the most coveted investment options for many investors, underpinned by the compelling topdown drivers”

Asia’s real estate markets have been battling headwinds this year. But there are still opportunities for investors with realistic short-term expectations and long-term vision, writes Helen Roxburgh

This implies a new era in which investors must consider more varied strategies to get money into the market. According to Emerging Trends In Real Estate 2019 from PwC and the Urban Land Institute (ULI), developed markets including Australia, Singapore and Japan still have the broadest appeal. Foreign buyers currently account for some 40% of all transactions for prime assets in Australia and, in the first half of 2018, prime office rents in Sydney and Melbourne registered growth of 12.5% and 10.7% respectively over the same period in 2017, according to JLL. “In our view, across the region, offices are providing the best

MIPIM PREVIEW • 61 • February 2019

opportunities to invest into attractive real estate fundamentals,” says Glyn Nelson, head of research at AEW Asia. “In most of the leading gateway markets, office vacancy rates are already low or are declining. In addition, new construction is fairly modest and liquidity is high.” But with investors concerned that the most developed markets in the region are reaching the top of the curve, attention is turning to emerging markets, as well as value-add strategies. Higher yielding alternative sectors, such as logistics and data centres, are also drawing capital. “While the office sector comprises the majority of volume, it’s the industrial sector that has

REGIONS: ASIA-PACIFIC seen investor interest surge — up by over a third year-on-year,” says Priyaranjan Kumar, regional executive director, capital markets, Asia Pacific, at Cushman & Wakefield. “In contrast, investors have become more wary of retail assets due to several headwinds that the sector currently faces.” The PwC/ULI report says that investment allocations to the logistics sector rose significantly in 2018, with the action centred on major cities in China, as well as Australia and Seoul, Korea, as the sector evolves to meet modern demands. Demand is also booming in Vietnam, Indonesia and India, where the introduction of a nationwide goods-and-services tax in 2017 revolutionised how goods are delivered across the country. Other alternative real estate sectors attracting investor interest include data centres, co-working and co-living, which has started to gain traction across the continent amid soaring house prices and overcrowded cities. “We really like the hospitality sector across Asia Pacific, including hotels, student housing and nursing homes,” says Laurent Jacquemin, head of Asia-Pacific at AXA IM – Real Assets. “These asset classes are fully supported by current demographic and social trends. The middle class in Asia is growing rapidly and people increasingly want to travel more, and ensure their children are properly educated and have the right experience. They also worry about the quality of both their own and their parent’s later-life care.” But rising interest rates could have a significant impact on real

Laurent Jacquemin:

Priyaranjan Kumar, Cushman & Wakefield

estate markets in South-East Asia, where cheap capital from domestic banks has been one of the drivers of the regional development boom. And while strong outflows of capital from Asia are set to continue, a big change for global capital flows is the redirection of Chinese investment. Amid regulatory restrictions on capital moving out of China, once-enthusiastic Chinese investors are retreating and, instead, putting their money into domestic projects. CBRE data shows Chinese outbound investment in the first half of 2018 of just $5.26bn, compared with $25.6bn for the first half of 2017. Meanwhile, Japanese investors, such as Japan’s Government Pension Investment Fund, are moving offshore owing to low yields on government bonds, and beginning to step into the void left by Chinese investors. However, they are still early in their allocations. Singapore was the largest source of Asia-Pacific outbound investment in the first half of 2018, with $9.06bn of capital deployed, according to CBRE.

“We really like the hospitality sector across Asia Pacific, including hotels, student housing and nursing homes”

Laurent Jacquemin, AXA IM – Real Assets

New infrastructure improvements and projects are key to investors deploying capital across the Asia-Pacific region. “Many countries, including Singapore, Malaysia and India, are currently investing to expand their aviation, and heavy and light rail networks to facilitate the movement of goods and people. In Australia, both Sydney and Brisbane have airport-expansion programmes under way,” says Cushman & Wakefield’s Kumar. New projects include the relocation of the Tanjong Pagar Terminal in Singapore, the 54,800 sq m One HarbourGate project in Kowloon and China’s ASEAN roll-out of the Belt and Road Initiative, plus new bridges and railway lines connecting Hong Kong with Mainland China. “We consider city planning and infrastructure investment as key factors driving shifts in market dynamics and rental-growth prospects in a number of markets,” says Benett Theseira, head of Asia Pacific at PGIM Real Estate. “One example is the continued evolution of the Sydney real estate market across almost all sectors due to significant investment in infrastructure. The construction of new metro lines, the pedestrianisation of George Street, the development of Darling Harbour and the Moorebank Intermodal project, for example, are trans-

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Shaowei Toh, UBS

forming Sydney’s connectivity and transport links. These infrastructure developments have been key to rental-growth momentum in Sydney for office, logistics and CBD retail in the last few years.” Infrastructure connected to the 2020 Tokyo Olympics is another draw. “The tourism sector in Japan is growing very quickly and there is demand for significant hotel development in gateway cities like Tokyo, Osaka, Sapporo and Fukuoka,” adds AXA IM – Real Assets’ Jacquemin. There are a number of challenges ahead for the real estate sector in Asia but, with large populations and a strong appetite for real estate investment, most experts believe there are plenty of opportunities to be found. “Investors have to manage their return expectations downwards and enhance their risk awareness,” says UBS Asset Management’s Toh. “Excessive optimism and the herd effect may make for decent short-term outcomes, as we have observed in the last few years, but investing in the fundamentals is still the key to long-term outperformance in real estate.”

CONFERENCES & EVENTS AT MIPIM INVESTMENT TRENDS IN ASIA 13 March 2019 – 14.00 – 14.45 Beige Room - Palais 3

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regions: NORTH AMERICA

Not too hot, not too cold… Westfield World Trade Center

Market commentators remain resolutely upbeat about North America’s property markets, despite President Trump’s tariff talk and the spectre of a future economic downturn. Chris Bown reports

HOSE long on experience will be calling for caution, given that the US economy is well into the second longest growth cycle on record. But while the fundamentals may temper the enthusiasm of some, plenty of other investors are setting the macro-economic picture to one side as they look to the other indicators that will define the winners and losers of the coming months and years. President Trump’s tax cuts and tariff battles, fundamental changes in retail and the trend towards office co-working are all impacting real estate in some way. In the industrial sector, recent months have seen the auto industry announce a series of repositionings, as electric motors look set to replace

the internal combustion engine. At press time, last year was also on track to deliver a record volume of transactions, headed for more than $70bn. With demand for stock outstripping supply, investors have been driven towards secondary markets, and remain undeterred by Trump’s tough talk. Spencer Levy, chairman of Americas research at CBRE, suggests the US market still has plenty of running, with the tax cuts helping: “A lot of the stimulus hasn’t been felt yet,” he says. And Levy is sanguine about the President’s hard stance on tariffs: “I’m of the opinion that we’ll cut a trade deal with China.” “The biggest question mark is how aggressive the Federal Reserve is,” says David Bitner, head

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of Americas capital markets research at Cushman & Wakefield. With confidence high, employment low and earnings strong, “so far we haven’t really seen cap rates move”, he adds. “It’s a Goldilocks environment.”

David Bitner:

“So far we haven’t really seen cap rates move. It’s a Goldilocks environment” North American retail remains resolutely upbeat, in contrast to the sector’s fortunes in Europe. While 2018 saw the final demise of department store group

regions: NORTH AMERICA Sears, there were plenty of positives in the form of two major investment deals. Mid-2018 saw Toronto-based Brookfield spend $15bn taking over GGP, the country’s second largest mall owner. “We look for places where people are running away from,” said Brian Kingston, Brookfield’s chief executive, as the deal was signed. “Yes, there’s trouble with retailers, but not in the class-A shopping centres.” However, based on past experience, some suggest Brookfield will look to redevelop retail sites for other uses, such as residential, and it is this repurposing that is now the key to the future for many secondary malls — rewarding the adventurous investor. Another key 2018 detail that changed the US mall landscape was Unibail-Rodamco’s acquisition of Westfield. While this was a European company taking over an Australian one, the move affected the ultimate ownership of more than 40 Westfield-branded malls across the US. “Either you invest in experiential retail or you play in the world of discount,” says Naveen Jaggi, JLL Retail’s global head of retail brokerage, America. “Sears fell into that black hole where they weren’t discount, but were also not relevant to the modern consumer.” It is true that US consumers are buying more online, but CBRE’s Levy notes that online represents just 9% of US retail sales, in contrast with the leading online growth market, the UK, where the figure is 20%. “Bricks-and-mortar has a strong future,” Levy adds. He believes that, for structural and geographic reasons, the US will not approach the UK’s scale online “anytime soon, or ever”. But he says that those investing in retail property need to remember that “retailing isn’t just a place to buy

David Bitner, Cushman & Wakefield

stuff — it’s an experience”. For investors, meanwhile, it is all about picking the right locations, JLL warned in a recent report: “Retail remains the property sector most dependent upon local factors (within a property’s trade area), resulting in the most variable property-level performance among major commercial real estate sectors.” In the office space, it appears that a quiet revolution is gathering pace, driving towards fundamentally more flexible working. On the one hand, this is being driven by WeWork, the poster child for the co-working revolution, which has signed massive swathes of office space in major US cities. In addition to appealing to freelancers, the company has had success in signing corporates as a location for project teams. The other issue is that the low US employment rate means employers are feeling the need to offer attractive employment spaces — and WeWork is the go-to look right now. CBRE predicts that corporate America will migrate strongly towards shared desks over the next few years, both in their own offices as well as in sub-leased space. Levy says the impact is clear — and it is driving office investors to consider building their own co-working offering: “We

Naveen Jaggi, JLL

expect that to continue, but we expect many landlords to do it directly.” The technology sector is increasingly important in office markets. “We have definitely seen a shift for corporate occupiers,” says Cushman & Wakefield’s Bitner. “These co-working formats make a lot of sense. There’s a huge premium in being able to move quickly when you need to.” The industrial sector has benefitted from a modest influx of new supply, and this has moved vacancy rates down to a record low, which JLL reckons to be around 4.8% nationally. The sector demand has been driven by e-commerce businesses and the logistics sector. New construction is already being stifled by the tariff effect, however, with steel up over 10%, plywood by more than 20% and general timber close to 20% more expensive. “Anecdotal evidence from clients suggests that it is already rendering some projects infeasible and slowing the construction pipeline,” noted one recent report from JLL. For investors seeking advice on the best markets to head for, JLL’s ‘property clock’ paints a clear picture of the opportunities, with Columbus, Detroit, Fort Lauderdale, Baltimore and New Jersey among the markets in a rising phase. Chicago, Washington DC and

MIPIM PREVIEW • 66 • February 2019

New York are reckoned to be in a falling phase. North of the border, Canadian markets are in similarly robust shape. Vancouver and Toronto are strong, but the weaker oil sector continues to be a drag on commercial property in Calgary. Pension-fund investors currently favour the industrial markets, where the strongest Canadian markets are now seeing rents above C$8 per sq ft. But Scott Addison, president of brokerage services, Canada, at Colliers International, noted that Canadian markets struggle to provide the scale some investors need: “Our big pension funds have to look outside Canada. We find they are tending to look at major cities worldwide, and find a local partner.” Canadian retail markets, in common with their US neighbours, are powering ahead. “There are more shops opening than closing and the large regional malls are doing well,” Addison says. One boost has been the recent legalisation of cannabis in the country, which has led to a slew of new retail operations opening up and signing space.

Scott Addison:

“There are more shops opening than closing in Canada and the large regional malls are doing well” CONFERENCES & EVENTS AT MIPIM

INVESTING & DEVELOPING IN THE UNITED STATES: WHERE, WHAT & HOW? 13 March 2019 – 10.30 – 12.00 Foyer Debussy - Palais 1 THE US & CANADA PROPERTY MARKET TRENDS 14 March 2019 – 15.15 – 16.00 Auditorium A - Palais 3

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regions: MENA

Shifting sands Al Marjan Island is emerging as an alternative leisure destination to Dubai

A longer-than-expected slowdown in Dubai’s property market, the surging Qatari economy and mega-projects in other emirates are changing a region shaped by landmark real estate schemes. Mark Faithfull reports

HE NEXT stage of the real estate market in the Middle East may come to be defined by two set-piece events: Dubai’s Expo 2020 and Qatar’s 2022 FIFA World Cup. Both have injected huge amounts of infrastructure spend into their respective markets and have become the foundation blocks for further property plans at a time when both are at different points in their respective property cycles. Qatar has largely contained the effects of a regional economic

blockade and, according to the International Monetary Fund (IMF), growth in the Gulf Co-operation Council (GCC) states is expected to recover to 2.4% in 2018 and 3% in 2019, following a 0.4% contraction in 2017. This is mainly due to the implementation of public investment projects, including those as part of Kuwait’s five-year development plan and Qatar’s infrastructure investment projects ahead of the World Cup. The Qatari government has also announced plans to invest nearly 60bn Qatar riyals (€14.5bn)

into the country’s infrastructure and real estate sectors over the next four years, with key projects including a new port situated approximately 25 km south of Doha. PLP Architecture has provided the thematic design for the port buildings, as well as architectural and interior services for two signature buildings: the headquarters for Mwani, the Qatar Ports Management Company, and the port control tower, which forms part of the Port Marine Unit. Kuwait is also enjoying a robust period of real estate growth. At the end of 2013, PLP Architecture was awarded municipal permission for a new mixed-use complex situated in the central business district of Kuwait City. The site borders the urban grid of the modern city on two sides and fronts a meandering route that leads to the sea. This route has inspired the design for a retail conduit with an external

MIPIM PREVIEW • 69 • February 2019

landscaped forecourt and a treelined covered entrance, plus a landmark office tower. As the MENA region’s real estate market continues to mature, so does the investment sector. In its latest report — The Emergence Of Real Estate Investment Trusts In The Middle East — PwC Middle East notes the rise of REITs as an investment vehicle. Market capitalisation of REITs compared to listed real estate companies in the UAE was around $800m as of early 2018. By comparison, Singapore had more than $60bn in aggregate REIT capitalisation over the same time period. “On average, REITs tend to provide a healthy dividend yield, but sufficient diligence needs to be done before allocating capital to REITs to ensure that an investment yields the right returns,” says Martin Berlin, Middle East partner and global deals real es-

regions: MENA

ISLAND IN THE SUN

Meydan One Mall will provide an integrated retail and leisure destination

tate leader at PwC. “Although still underpenetrated in the Middle East, REITs will benefit the region in terms of the transparency they will bring to sector. However, this will be a gradual process.”

Martin Berlin:

“Although still underpenetrated in the Middle East, REITs will benefit the region in terms of the transparency they will bring to sector” Needless to say, much of Dubai’s development is based around retail. The emirate is expected to see 1.5 million sq m of new retail space open over the next three years, according to real estate advisor CBRE, which predicts that landlords will focus on F&B, family entertainment and experiential retail. “Malls such as Meydan One are seeking to maximise these types of concepts and offer a new shopping experience to consumers,” says Anthony Spary, associate director of investor leasing, CBRE Middle East. “With a continued focus on physical retail, we expect to see retailers adapting to

more of a bricks-and-clicks model in the coming years.” Indeed, Fahad Abdul Rahim Kazim, vice-president of Meydan Malls, says of the project: “We’re coming from a region where the mall business is super-competitive. There’s no shortage of malls but, in the past, the approach has been very sales-driven. However, for a new generation of visitors, it’s all about experience.” Dubai remains on track to become the most-visited city for global travel, business and events, according to the latest figures from its Department of Tourism & Commerce Marketing (DTCM). The emirate welcomed 11.58 million visitors in the first three quarters of 2018, with India retaining its position as Dubai’s leading source market, followed by Saudi Arabia and the UK. “Dubai continues to actively target a diversified global base of travellers,” says His Excellency Helal Saeed Almarri, director-general of DTCM. “With 11.58 million tourists to date this year, we have maintained our po-

sition as the fourth most-visited city in the world.” The emirate is also working on its legacy plans for Expo 2020, focused on District 2020. Al Wasl Plaza, which will host the Expo opening ceremony, will be used to hold shows and concerts, while also providing a relaxing space. Expo 2020’s Sustainability Pavilion will become District 2020’s Children and Science Centre within a large, mixed-use project. “Dubai has spent the past seven years preparing for the hosting of Expo 2020 — the first time this six-month trade show has been held in the Arabic world,” says Craig Plumb, head of research, MENA, at JLL. “These preparations have included a new airport and an extension to the metro network, as well as major highway investment. The Expo will be housed in a new extension to the city called Dubai South, where there are a range of residential, commercial, retail and hotel projects being undertaken, in addition to the works on the Expo site itself.” In Abu Dhabi, Al Farwaniya

Helal Saeed Almarri: “With 11.58 million

tourists to date this year, Dubai has maintained its position as the fourth most-visited city in the world” MIPIM PREVIEW • 70 • February 2019

DUBAI and Abu Dhabi are not the only emirates promoting development and investment. Marjan is the master-developer aimed at positioning Ras Al Khaimah as one of the UAE’s preferred lifestyle and investment destinations. The flagship development is a man-made island that is transitioning into a resort destination. Al Marjan Island currently has more than 1,600 operational five-star hotel keys, including Rixos Hotels, Hilton Hotels & Resorts and Accor Hotels, along with around 2,000 residential units, including Bab Al Bahar Residences and Pacific by Select Group. The scheme also has 3,500 hotel keys under development, including new brands such as Address Al Marjan Island by Emaar Hospitality Group, Movenpick, Avani Hotels & Resorts by Minor Hotels, Park Inn by Radisson, Hampton and Conrad by Hilton, Cristal Hotel, Grand Millennium and Rove Marjan. In addition, some 900 residential units are under construction.

Property Developments is currently leasing its 270,000 sq m Reem Mall, which will become the emirate’s largest urban mall when it opens in the second half of 2020. Around 10% of the mix will be allocated to F&B, with a further 11% let to leisure operators.

CONFERENCES & EVENTS AT MIPIM MENA: TRANSIT ORIENTATED DEVELOPMENTS 13 March 2019 – 15.15 – 16.00 Beige Room - Palais 3

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regions: SUB-SAHARAN AFRICA

The next big

growth story?

Despite diverging levels of economic development and political stability, Sub-Saharan Africa is increasingly on the investment radar. Anika Michalowska assesses the opportunities for those who take a long-term view, think big and find the right partner Nairobi

ITH a population of 1.3 billion people, which is expected to double by 2050, a fast-growing middle class, increasing urbanisation and a rapid adoption of new technologies, Sub-Saharan Africa is an increasingly tempting prospect. “We cannot afford to ignore the African continent,” says Vicus Bouwer, divisional director, retail leasing Africa, at Broll Property Group. Take, for example, the hotel and hospitality sector — one of today’s hottest areas of real estate.

International tourism in Africa is expected to grow by 5% in 2018, on top of the 8% growth it posted in 2017, according to the World Tourism Organization. South Africa and West Africa are among the top African destinations, but East Africa — notably Zimbabwe, Mozambique and Uganda — are gaining in popularity. Business tourism has taken the lead for many years, but private tourism and local tourism are now catching up fast. “Quality projects in cities and sites with a high degree of potential continue to attract investors,” says

Tom Mundy, JLL’s head of advisory for Sub-Saharan Africa. He predicts that the level of investment in the tourism sector will reach $1.7bn in 2018. All categories are in need of investment, from five-star hotels and luxury resorts to serviced apartments and budget hotels. “With proper analysis, investors will see better investment returns than in other real estate classes,” adds Benoit du Passage, JLL’s managing director, EMEA. “This asset class gives investors USD-based income, which is a good cash hedge against volatile local currencies.”

MIPIM PREVIEW • 73 • February 2019

Benoit du Passage:

“Tourism gives investors USDbased income, which is a good cash hedge against volatile local currencies” And tourism should also benefit from the launch in January of the Single African Air Transport Market (SAATM) initiative.

regions: SUB-SAHARAN AFRICA Signed by 23 African Union member states, SAATM should greatly improve the connectivity of the continent in the coming years. Major international hotel brands are investing heavily in Sub-Saharan Africa. Sweden’s Radisson Hotel Group will own 130 hotels with 23,000 rooms in Africa by 2022. The Hilton Group has ambitions to double its presence on the continent and is entering Botswana, Ghana, Swaziland, Uganda, Malawi and Rwanda. AccorHotels Group already owns 150 hotels with 27,000 rooms in 13 African countries and it is on target to open 120 more by 2025, mainly in East and South Africa. In 2018, the French company took a 50% stake in the South Africa’s Mantis Group. Local hotel brands are also growing, with Onomo Hotels and City Lodge expanding across West and South Africa. Meanwhile, a number of smaller local brands, including Urban by CityBlue, have ambitious plans to grow their share of the hotel market. Retail is another sector on the move, driven by the evolution in the lifestyle of African consumers and higher levels of income. According to pan-African company Sagaci Research, there are currently 579 shopping centres on the continent, compared to 225 in 2010. This figure excludes South Africa, which is already well provided with malls. Most of the schemes are located in Egypt and North Africa but, in Sub-Saharan Africa, Kenya accounts for 66 shopping centres and Nigeria 53. Between June 2017 and June 2018, 41 new shopping centres opened. “There is a change in the size and location of new shopping centres,” says Julien Garcier, general manager at Sagaci Research. “So far, most of them

were built in the big cities, but now they also cater for smaller urban centres.” Investors have traditionally been local or South African, he adds, but Chinese and Saudi Arabian investors are increasing their presence in the sector. Most of the future projects in Sub-Saharan Africa are located in Nigeria, Kenya and South Africa. However, the retail landscape in Angola has changed dramatically in the last three years and, in 2019, the 18,000 sq m Douala Grand Mall shopping centre will open in Cameroon, claiming to be the first ‘destination’ shopping mall in the country. “Shopping centres are places where consumers come to spend their free time, and find and share some leisure on top of doing their shopping” Garcier says. With the increasing penetration of the internet, smartphones and pay-by-phone technology, e-shopping is also gaining traction in Africa, with new local players including Jumia and MallforAfrica competing with global giants like Amazon and Alibaba. But for e-commerce to take off, logistics is key. The most visible trend in Africa is the unprecedented pace of urbanisation. According to Euromonitor International, African megacities will lead population growth, reflecting Africa’s position as the last major continent to undergo urbanisation. Lagos alone — already a megacity — is expecting a 35% increase in population growth between 2017 and 2030. Luanda, which is forecast to grow by 60%, and Dar es Salam will be the fastest growing African cities by 2030. This trend is placing further pressure on housing, infrastructure, office buildings and employment. “Green buildings have been at

the forefront of new developments in South Africa for some time and are now spreading to the rest of Africa, with the establishment of Green Building Councils in Namibia, Zambia, Mauritius, Rwanda, Tanzania, Kenya and Ghana,” says JLL’s Du Passage. “Recently, Green Star ratings have been accredited to three buildings in Namibia, one in Rwanda, one in Kenya and one in Ghana. In general, green buildings are not only cost effective, but also command higher rentals. Most international companies who enter the African market have a prerequisite for this type of building.” Du Passage also believes growing transparency will drive real-estate activity: “At the core, transparency and regulatory enforcement are driving investor and occupier activity.” JLL’s 2018 Global Real Estate Transparency Index revealed the progress being made by Sub-Saharan Africa, with 10 out of 15 markets registering improvement since 2016. However, the report notes that the pace of change needs to accelerate to close the gap with other regions and meet rising expectations from investors. New technologies, such as the blockchain for land registries, and smart buildings and infrastructure, together with the digitisation of existing processes, offer an opportunity for Sub-Saharan Africa to leapfrog traditional routes to transparency and improve methods of collecting information. Charles Hecker is senior partner of Control Risks, a specialist global risk consultancy company, which publishes the Africa Risk Reward Index. “Rwanda has shown a real increase and improvement in the balance between risk and reward in the last three years

MIPIM PREVIEW • 74 • February 2019

and is currently one of the more investor-friendly countries in Sub-Saharan Africa,” Hecker says.

Charles Hecker:

“Rwanda has shown a real improvement in the balance between risk and reward and is currently one of the more investorfriendly countries in Sub-Saharan Africa” The West and East African hubs of Nigeria and Kenya are leading the way with greater data availability, improved valuation standards and government-led digitisation initiatives. But investors may hesitate, waiting for the results of the next elections in Nigeria. Ethiopia, Ghana and Mozambique are also opportunity markets. “Increasing market participation by institutional investors and the development of the listed sector will also be key,” says JLL’s Du Passage, whose advice is to “look at the long term when coming to Africa and think big in terms of number of countries and sectors”. And it is also crucial to find the right partner. As Control Risks’ Hecker says: “Sub-Sahara Africa is not one country. It’s important to get extensive local advice and be extremely cautious in the selection of partners.”

CONFERENCES & EVENTS AT MIPIM AFRICA: GROWTH & INVESTMENTS 14 March 2019 – 10.00 – 10.45 Beige Room - Palais 3 AFRICA: ENGAGING TESTIMONIES 114 March 2019 – 11.15 – 13.00 Beige Room - Palais 3

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regions: SOUTHERN EUROPE

Sunny days Property investors are returning to Southern Europe in the hunt for better yields and brighter opportunities, attracted by the positive dynamics in both established asset classes and emerging sectors. Isobel Lee reports

E HAVE come a long way since the derogatory term PIGS — Portugal, Italy, Greece, Spain — was applied to Southern Europe by economists in the 1990s, highlighting the debt and economic vulnerability of the southern EU states. The last decade and a half have seen these countries undergo a steady transformation and, today, as the property-investment world contemplates the tight margins and overheated values of late-cycle European real estate, Southern

Europe offers opportunity and diverse prospects across a broad range of sectors. “Southern European countries like Spain and Portugal have witnessed increasing investor demand for a number of reasons,” says Fernando Ramirez

de Haro, head of Spain at Savills Investment Management. “Firstly, the macro trend is very positive in these countries. GDP growth, consumption and employment evolution are fuelling demand in all real estate segments. Secondly, new sup-

Fernando Ramirez de Haro:

“The macro trend is very positive in these countries. GDP growth, consumption and employment evolution are fuelling demand in all real estate segments”

Cascina Merlata in Milan

MIPIM PREVIEW • 77 • February 2019

ply levels, although increasing moderately, remain below average levels, creating an adequate supply-demand imbalance for rental growth.” In particular, Portugal registered the highest deal flows on record in 2018, with the capital Lisbon chalking up over €2.0bn of mostly retail transactions in the first nine months of the year, according to Real Capital Analytics (RCA). Similarly, Spain made it into Europe’s top five investment markets in 2018 following a wave of transactions, particularly residential. US capital has favoured the Spanish market over any other European country in the past 12 months, with some high-profile transactions by private-equity player Cerberus pushing deal flows into the several billions. Nowhere is the popularity of Southern Europe better illustrated than in retail real estate, a sector that is currently undergoing profound structural change. Shopping centre-focused

regions: SOUTHERN EUROPE

Walther Park, Bolzano

investors have been targeting Europe’s less mature markets, where e-commerce penetration — in Southern Europe, at least — is, at just 4%, significantly below the continental average. Savills’ European research analyst Eri Mitsostergiou says: “What has been really interesting is that, despite a move towards e-commerce in core markets such as the UK and Germany, there are still prime high-street opportunities to be had in markets such as Spain, where online retail has not yet taken off to the same extent. Overall, quality high-street units in shopping streets with strong footfall and tourist numbers are highly sought after by investors and considered to be a defensive choice against online retail.” In 2018, Spain booked two of Europe’s biggest shopping-centre transactions, including the purchase of four malls by South African investor Vukile from Unibail-Rodamco-Westfield (URW) for €460m. Last year also saw the Spanish debut of Slovak developer J&T Real Estate, which acquired three shopping centres from CBRE GI and Sonae Sierra for €500m. Equally, Italy saw shopping-centre transactions rise by over 150% in 2018, according to RCA. Meanwhile, Portugal’s record year was largely due

to shopping centres changing hands, with US giant Blackstone selling four flagship malls — Forum Sintra, Forum Montijo, Sintra Retail Park and Almada Forum — for almost €1bn. Unsurprisingly, the development industry is eager to keep pace, with Italy in particular home to a raft of exciting retail projects. Westfield Milan, a shopping centre covering 170,000 sq m, will be the first Westfield in Italy when it opens in 2021. Next year will see the opening of Merlata Mall in the north-west of the city, near the Expo 2015 site. This will deliver 65,000 sq m of shopping in the middle of a park, which is part of a wider brownfield redevelopment dubbed Cascina Merlata. Regional cities are also driving change, with the Alto Adige town of Bolzano attracting the UK’s David Chipperfield Architects for an outstanding downtown scheme to transform an old bus station into a dynamic mixed-use development called WaltherPark. And investor-developer Aedes is working on its Caselle Torinese development scheme — a hugely ambitious open-air mall near Turin, consisting of more than 250 stores across 120,000 sq m of GLA, 15% of which will be focused on leisure.

It is not just retail that is enjoying its moment in the sun. Key office markets, including Madrid, Lisbon and Milan, are presenting increasingly attractive investment opportunities. Speculative office development has returned to the fore in Milan, where players such as Coima have been buoyed by the success of schemes including Milano Porta Nuova. Coima is now embarking on the ambitious refurbishment of the city’s Unilever Tower to create Corso Como Place, an office tower providing 20,000 sq m of space. “We have invested a lot in the last 24 months in value-add projects in the centre of Milan, mainly vacant assets requiring full refurbishment,” says Cristiano Ronchi, Savills Investment Management’s head of Italy. However, a lack of available product within the office sector in Italy has kept a lid on deal volumes, according to JLL data. The logistics market is a different story, says Mike Bellhouse, JLL’s director of international capital markets for EMEA. “It’s reaching record levels in terms of take-up as well as investment volumes,” he says. “International money continues to target this sector, from last-mile concepts through to the larger distribution hubs.”

MIPIM PREVIEW • 78 • February 2019

Mike Bellhouse:

“The logistics market is reaching record levels in terms of take-up and investment volumes. International money continues to target this sector” But perhaps the most exciting investment trend is the appetite displayed by international investors for alternative assets in Southern Europe. “In Spain, Italy and Portugal, the alternative asset classes have reported the highest annual growth rate of 46% per year between 2008 and 2017,” Bellhouse says. “Student housing has been the most sought-after sector, with €603m invested across Spain and Italy in the last two years. And this sector is also very strong in the Portuguese cities of Lisbon and Porto, with continued development taking place in these markets.” Demand for healthcare and multi-family assets is also on the increase. The deals are taking place in a climate of improved transparency

regions: SOUTHERN EUROPE and fiscal health. Spain’s banks have set themselves the deadline of 2020 to reduce the property that remains on their balance sheets to an absolute minimum. Bankia, Liberbank, Ibercaja and Santander recently said they would divest at least €12.5bn in non-performing assets over the next 24 months. The announcement followed recent attempts by the Italian banks to further reduce their exposure to toxic loans. While Greece remains one of Europe’s economic underdogs, its banks are finally reducing their non-performing loan exposure, after a number of key transactions in 2018, led by Greek lender Alpha Bank, transferred billions of toxic assets into the hands of private-equity players. Investors are tipped to return to Greece in 2019 after a dec-

Caselle Open Mall in Turin

ade of recession, as the country eyes an exit from its third EU bailout programme. Recovery is set to be driven by tourism, with the office markets tipped

for yield compression by Cushman & Wakefield as cautious development and refurbishment programmes return to the fore in Athens.

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EUROPE: MEDITERRANEAN REGION & INVESTMENT 13 March 2019 – 16.30 – 17.15 Beige Room - Palais 3

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regions: NORDICS

AEW paid Stockmann $123m for the Atlas building in Helsinki’s Esplanade Park

Paying for success

T WOULD have been satisfying to open this account by saying that the Nordic region offers a smorgasbord of commercial property investment opportunities. There is certainly plenty of top-ﬂight property on the table but, while there are one or two rich pickings, little of it is available for immediate consumption. So where, to continue the food analogy, is the meat on the bone for investors looking for an angle? “Sweden dominates the market, seeing 50% of overall activity,” says Peter Brostrom, head of Nordics region at Savills Invest-

In many ways the Nordic region, with its aﬄuent, increasingly urbanised population, has become a victim of its own success. Add low yields coupled with high rents and the investment opportunities are few and far between, writes Steve Killick ment Management. With all major cities in the Nordic countries together with coastal Germany and Poland capable of being served by road transport within 12 hours from Sweden and a further 100 million people accessible within 24 hours, investment in the country’s logistics sector has been intense.

And it is not just delivering to neighbouring countries that has seen yields in Swedish logistics drop as low as 5.25% in Gothenburg, but also Sweden’s appetite for online shopping, which requires home deliveries. “The problem now is that there are only so many investors prepared to pay such low yields, es-

MIPIM PREVIEW • 81 • February 2019

pecially with high rents levelling off in the logistics sector,” Brostrom says. What most investors want, he adds, is a well-configured unit close to the edge of town — but these do not come on to the market very often. Brostrom says that similar low yields in the retail market have

regions: NORDICS also acted as a brake on transactions. “Fortunately,” he adds, “despite the increasing volume of e-commerce sales, the majority of Nordic shopping transactions still take place in physical stores, particularly when it comes to trialling goods, entertainment and dining. Successful stores will integrate both forms of retailing.”

Peter Brostrom:

“Despite the increasing volume of e-commerce sales, the majority of Nordic shopping transactions still take place in physical stores.” One of the reasons Swedish fashion retailer H&M has had weaker-than-expected sales recently is reckoned to be because an uneven balance between online and physical sales has led to store closures. Copenhagen has maintained solid retail action because, as Brostrom notes, “it is hugely popular with tourists from Asia and mainland Europe, as well as Danes, and is the only Nordic capital that offers a pure, retail high street”. However, just as in the logistics sector, prime retail yields are extremely low — down to 3% in some prime areas of the region’s capital cities. Lars Flaoyen, head of Nordic property research for Aberdeen Asset Management, is concerned that a two-tier retail market is appearing in Sweden. “Prime is OK, but in the subprime market there is limited investment demand and some retailers are not doing particu-

larly well,” he says. Flaoyen detects far better investment opportunities in neighbourhood convenience centres, backed by the strength of the housing market, which has seen increased movement towards the cities. The Swedish government has the monopoly on alcohol sales run through its own company, Systembolaget, which operates more than 430 stores countrywide. “Having one of these stores in a neighbourhood centre creates excellent footfall,” Flaoyen says. “A pharmacy is also a big plus that helps defend a centre against e-retail. With lower rents and yields of around 6.5%, these are the sort of centres we are keen on.” Investment in local transport in Sweden includes two new subway lines under development in Stockholm and a new underground commuter train in Gothenburg. These are just two examples of how improved access will help spur suburban activity and create new opportunities. “The over-decking of roads and tracks are a theme in many locations, both central and suburban,” says Cushman & Wakefield’s head of research, Havard Bjora. “This can help open up prime locations for development or make existing locations far more attractive and eligible for higher value use and redevelopment.”

The housing market across the Nordic countries has been hot for some time and, while fears that the bubble was about to burst have been unsubstantiated, there is no doubt that city-centre residential activity has slowed. This is due largely to a surge in development activity, which is bringing increasing numbers of high-priced new homes on to the market. The decreased competition for residential space has helped stimulate the local office market — although, again, it should be noted that in all but Sweden the activity is very much dominated by the capital cities of Copenhagen, Helsinki and Oslo. Peter Winther, CEO of Colliers International in Denmark, points out that, while activity has risen compared to 2017, 90% of the office volume has been transacted in the Copenhagen area. “We have enjoyed strong growth in terms of both jobs and population, which has inevitably led to increased activity in the office markets,” he says. “People want to work in places like the new harbour area in northern Copenhagen, where huge occupational demand has helped push rents upwards.” According to one recent report, the third quarter of 2018 saw Danish office investment hit $0.79bn.

Peter Winther:

“People want to work in places like the new harbour area in northern Copenhagen, where huge occupational demand has helped push rents upwards” Because it lags behind its Scandinavian neighbours, Finland has been seen by some investors as the land of opportunity. In October 2018, Dutch investment company Wereldhave sold the 100,000 sq m Itis shopping centre in East Helsinki to Morgan Stanley Real Estate for $587m in one of Europe’s largest single real estate deals. What is particularly significant for Finland is that, in 2017, overseas investors became the largest single group to put their money into the country’s commercial property market, accounting for some 29% of the total share. Real estate investment manager AEW was another company happy to sink big money into Finland when it paid owner Stockmann $123m for the Atlas building in Helsinki’s Esplanade Park. The property consists of a mixed-use building of retail and offices. Like the rest of the Nordic region, Finland looks likely to see a few more large sums from overseas during the next year.

CONFERENCES & EVENTS AT MIPIM

Peter Brostrom, Savills Investment Management

Peter Winther, Colliers International

MIPIM PREVIEW • 82 • February 2019

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regions: WESTERN EUROPE

Ever optimistic

Berlin’s diverse occupier base is attracting investors

UROPEAN real estate remains a magnet for global investors despite concerns around record high values, scarcity of suitable assets and, above all, the fact that the major markets are “one year further into the cycle and one year closer to the end.” The quote comes from one of the 885 senior property professionals interviewed or surveyed for Emerging Trends In Real Estate Europe, the annual forecast published jointly by PwC and the Urban Land Institute. And it reflects the chief pre-occupation of many in the industry. Over a decade on from the onset of the global financial crisis, Emerging Trends Europe underlines how the late property cycle is informing sentiment and decision-making in key markets, not helped by the uncertainty over Brexit in the UK and the

Despite Brexit, slowing growth in Germany and France, and geopolitical instability, Western Europe’s real estate industry remains upbeat about the prospects for 2019. But there’s more caution in the air, writes Doug Morrison, as investors fret about the availability of assets and consider their late-cycle strategies faltering economic performance of France and Germany. As one pan-European investment manager says in the report: “At this stage in the cycle, a lot of risks are on the downside, not the upside. The challenge now is assessing those risks and adding value, and so outweighing potential, wider market risks and the risk of interest rates increasing.” This air of late-cycle caution is also evident in another sentiment survey — this time covering the US and Europe — by

BrickVest, the online investment platform. Based on data from 5,000 investors, BrickVest reveals that international investor appetite for high-risk commercial ventures, such as opportunistic investments and speculative development, plunged by 41% in the 12 months to the end of the third quarter of 2018. Yet, as Emerging Trends Europe and BrickVest acknowledge, the volume of capital targeting European real estate held up remarkably well in 2018 and, barring a big geopolitical

MIPIM PREVIEW • 85 • February 2019

“At this stage in the cycle, a lot of risks are on the downside, not the upside. The challenge now is assessing those risks and adding value”

regions: WESTERN EUROPE

Nathalie Charles, AXA IM – Real Assets

shock, something approaching a repeat performance looks likely for 2019. It comes down to the basic attraction of some real estate sectors as a source of secure income that will see investors through this cycle and the downturn that will assuredly follow sooner or later. “Definitely the comfortable yield shift play is over — time for hard work,” says Nathalie Charles, head of development and European country teams at AXA IM – Real Assets. “It is clear the recent GDP figures both in Germany and France have been disappointing. We need to adapt even more to a low-growth environment. We’ve been talking for years about low yields, low interest rates and low inflation, but we have not yet fully adapted to that. We need to manage our portfolios and to make our investment decisions in a very documented manner and on more detailed analysis.”

Nathalie Charles:

“Definitely the comfortable yield shift play is over — time for hard work” According to both Emerging Trends Europe and BrickVest, core offices across Europe — especially in German cities such

Thomas Schneider, BrickVest

as Berlin and Munich — have seen the highest values and lowest yields. Yet they remain popular among certain institutional investors. “The economic numbers are not that great but, if you look at the German real estate market, you never had crazy rental increases, so it’s still very conservative,” says BrickVest’s managing director and founder, Thomas Schneider. “It’s getting more difficult to buy something in Germany because the pressure is higher now. But overall, for most of our international investors, Germany has been second best after the UK. And the UK right now is in limbo because investors don’t know what’s happening with currency, property prices or Brexit. The mood is shifting even stronger now towards Germany.” According to Marcus Cieleback, chief economist at Patrizia Immobilien, the pan-European investment manager, many institutional investors, especially German players, are after “boring, stable real estate” and willing to accept lower yields because, as he points out, they are still favourable to 10-year government bonds. “Core property is very aggressively priced,” Cieleback adds. “I wouldn’t say over-priced in a classical sense that it’s a bubble but, if you’re a core investor looking for stable income, it’s very aggressive,

Marcus Cieleback, Patrizia Immobilien

especially if you expect interest rates to rise in a three- to fiveyear horizon. But I’m not seeing core real estate repricing or prices falling. People who own really good core assets are not selling them, and the core assets that do come to the market will be sought-after because there is a lack of quality product. So, there will be demand that will push pricing.” Cieleback adds: “There’s still a lot of money out there that is looking for a store of wealth, not so much a return. That type of money will buy. There’s also some money from Asia that can have some currency gain over a three-to-five-year horizon. They can factor that in and therefore they are willing to pay a price that possibly a European buyer may not accept. That’s why I wouldn’t rule out a slight yield compression happening over 2019 — maybe only 10 to 15 basis points, but that’s a lot given that we have yields of around 3%.” Jeff O’Dwyer, fund manager at Schroder Real Estate Investment Management, believes the issue of high values has to be judged

Marcus Cieleback:

Jeff O’Dwyer, Schroder Real Estate Investment Managemen

against the foundation of strong occupier demand, not just in German cities but across western Europe. “We think most of our total return will come increasingly from income, and we’re seeing good rental growth,” says O’Dwyer, who manages funds with a focus on Germany, France and the Netherlands. A relatively strong eurozone economy has fuelled employment growth and, in turn, resulted in falling vacancy levels in office markets. However, the near-term outlook is slightly less rosy than before. The downside risks associated with a no-deal Brexit and the fallout from US-led trade disputes have forced the German government to revise down its economic growth estimate for 2019 from 2.1% to 1.8%. The Bank of France has similarly cut its 2019 forecast from 1.6% to 1.5%. According to O’Dwyer, there is another factor supporting rents: restricted commercial development in the decade following the GFC. “We haven’t seen the same levels of supply in these cities than in previous cycles and that’s been led by the fact that banks have been more

“I wouldn’t rule out a slight yield compression happening over 2019 — maybe only 10 to 15 basis points, but that’s a lot given that we have yields of around 3%”

MIPIM PREVIEW • 86 • February 2019

regions: WESTERN EUROPE risk-averse in lending,” he says. “Also, we’ve had competing demand for these buildings. We’ve seen it in Frankfurt and Amsterdam, where office buildings have been converted to residential or hotels, so you’ve actually seen the stock being taken out for alternative use. A really good example of that is Amsterdam, where we’ve seen vacancy rates fall dramatically. Go back five or six years and it was a market where you held your breath and thought, where is vacancy going to go? But it’s come out the other end in an incredible manner that has probably caught out a number of investors in how strongly it has performed.” Even so, Emerging Trends Europe testifies to a growing number of investors seeking to diversify away from mainstream assets and into alternative real estate or housing — in other 017V2_RM APPLI_PV_PIM words, non-cyclical investments.

Although supported by urbanisation, demographics and technology, the shift into alternatives — from data centres to student accommodation and healthcare — has undeniably gathered pace the longer the industry has gone through this current property cycle. Returns here are seen as favourable to commercial assets, although there is often an operational risk. As AXA IM – Real Assets’ Charles says, the attraction is clear, but it is not easy to deliver: “It’s not a defensive play, it’s an offensive one in the sense that entering into the alternatives is about trying to capture the resilience of sectors of a different nature. But it means that you need absolutely to have a strong understanding of the underlying business of the asset you invest in.” However, the biggest diversifier for the industry right now is residential, underpinned by the

ongoing supply/demand imbalance across Europe. In the Netherlands alone, domestic and global investors bought an unprecedented 46,000 rental homes in 2018 — up 63% on 2017 — worth a total of €8.5bn, says Dutch adviser Capital Value. The firm estimates that international pension funds want to invest as much as €12bn in Dutch rental homes by 2021. This surge in residential investment is far from restricted to the Netherlands. Patrizia’s Cieleback argues that institutional fund managers and their investor clients are looking beyond their national borders and assessing the sector in “a truly Pan-European context”. Patrizia calculates that every fifth euro of European real estate investment is deployed in housing — an increase of more than 50% over the last 10 years. “That would have been unthinkable four, five years ago,” Cieleback adds. “There

was a lot of talk about investing in residential, but very little actual market activity. Real estate for more investors today than in the past is a security play; a stability play. A lot of what is traded today in the commercial segment has a different risk profile than many investors who are core-seeking buyers want to buy. That’s why the residential universe is strengthening and very interesting to them.” It is clear that previously diehard commercial property investors have been converted to residential but, as Cieleback suggests, this shift is not necessarily wholly because housing demand is less cyclical. “It is maybe even more a case of the maturing of the industry,” he says.

CONFERENCES & EVENTS AT MIPIM

EMERGING TRENDS IN REAL ESTATE - ULI 12 March 2019 – 17.30 – 18.15 Indigo Room - Palais 3

Connect everywhere ‘

Download the Participants’ list

Conferences and events programme

Floorplan

Companies’ list

MIPIM PREVIEW • 87 • February 2019

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regions: CENTRAL & EASTERN EUROPE

In the

flow of things

Madison International Realty bought a 50% stake in Ghelamco’s Warsaw Spire

Much of the activity in Central and Eastern Europe is focused on logistics, reflecting the seismic changes in the way consumers shop and retailers sell. But investment in all asset classes has been rising steadily across the region, writes David Sands, driven by high growth and low unemployment

HE CENTRAL and Eastern European (CEE) economies are transitioning from wage competitiveness to secure, knowledge-based economies. Unemployment across the region has never been lower — 3.7% in the second quarter of 2018

— causing consumer optimism to rise. CEE continues to be the European Union’s fastest growing region, with a growth rate of 4.2% in the first half of this year, which is double the EU average. According to Martin Erbe, head of international real estate finance for Northern and Central

Europe at German bank Helaba, Poland is still the biggest and the most active country by investment volume. Czech Republic and Hungary follow at some distance. Volumes in Czech Republic are much lower than last year, not from lack of investor interest but lack of available product.

MIPIM PREVIEW • 89 • February 2019

The office sector still dominates, but logistics property, especially in Poland, is attracting great interest. Retail remains popular, but investors are focusing on the dominant asset in its market as fear of online sales grows. “Logistics is the new retail — it’s hot,” says Xavier Mouette, head of the key client group at BNP Paribas. The firm advised South Korean institution Vestas Investment Management on its purchase last summer of an Amazon logistics centre in Poland, close to the German border. The deal is thought to reflect a yield of between 5% and 5.6%.

regions: CENTRAL & EASTERN EUROPE Xavier Mouette:

some 800,000 sq m of offices will be delivered. To the east of the CBD, Tristan is financing a re-development of a former power station close to the river to provide 55,000 sq m of offices, food, retail, a boutique hotel and residential.”

“Logistics is the new retail — it’s hot” “Korean institutional investors are very eager to invest more in logistics centres of around 100,000 sq m,” Mouette adds. “The demand and the money is there, but we lack good opportunities. However, we hope to close around three more logistics deals for our pool of clients in the next 12 months.” He adds that the Vestas fund, with leverage, amounts to around €600m. European Logistic Investment, co-managed by Griffin Real Estate and South African investor Redefine Properties, last year acquired a €200m portfolio of nine logistics parks developed by Panattoni Europe. The properties will form the basis of a new logistics platform in Poland, which will be managed by Panattoni Europe and Griffin and is expected to grow to €800m. Total investment volumes for 2017 marked the first year that the Polish provinces outpaced those of Warsaw, according to Greenberg Traurig’s Real Estate Operations Group. But the Polish capital remains the big draw, with US investor Madison International Realty last year taking a 50% stake in the iconic Warsaw Spire office tower, becoming an equal owner alongside the Ghelamco GP12 fund. The €350m asset is CEE’s tallest building. Office environments, meanwhile, are becoming more sophisticated across the region. According to Adrian Karczewicz, head of divestments CEE at Skanska Commercial Development Europe: “The particular demands of tenants’ younger workforce are driving the evolution of the office market in the way they

Xavier Mouette, BNP Paribas

work and act. In their offices they need clean air and water, adjustable lighting, healthy food and fitness/entertainment zones. They want to be in the best places with good transport infrastructure, cafes, shopping and entertainment facilities” Last summer, Atrium European Real Estate, which owns, operates and redevelops shopping centres in Central Europe, bought Wars Sawa Junior mall in central Warsaw from a fund managed by CBRE Global Investors. “We continue to target the region’s capitals and tier-one cities in Poland and Czech Republic because their economies are so strong,” says Liad Barzilai, CEO of Atrium Group.

Liad Barzilai:

“We continue to target the region’s capitals and tierone cities in Poland and Czech Republic because their economies are so strong” According to Tom Leahy, senior director at Real Capital Analytics, the mall was sold in 2011

Liad Barzilai, Atrium Group

for €150m, which demonstrates 100% growth over seven years. Infrastructure development, supported by the EU funds, is having a significant impact on CEE real estate, particularly the logistics market. Piotr Gozdziewicz, director of capital markets, CEE, at BNP Paribas, says: “The construction of the S3 expressway parallel to the Polish-German border has resulted in the development of a number of build-to-suit industrial facilities, while the completion of an S7 expressway section in north-eastern Poland led to the construction of one of the largest Zalando warehouses in this region.” According to Gozdziewicz, the completion in 2016 of the final part of the D8 motorway linking Prague to Dresden has resulted in a notable increase in the popularity of locations along this route. “In Romania, the total length of expressways has tripled within 10 years,” he adds. Matt Lunt, executive director, portfolio and asset management, at Tristan Capital Partners, also stresses the importance of good infrastructure: “Investment in this has had a significant impact on all sectors. Warsaw is a particularly good example. It’s benefitting from a new metro line, resulting in a new office and residential district springing up to the west of the CBD, where

MIPIM PREVIEW • 90 • February 2019

Colliers International’s CEE research specialist Mark Robinson singles out Bucharest as undergoing significant regeneration. Examples include the 100,000 sq m Timpuri Noi Plaza, which is being developed by Vastint, and the expansion of the Promenada Mall to include a hotel and residential. Other fast expanding areas of the Romanian capital include Dimitrie Pompeiu, Center-West and the Expozitiei district. “Romania is a well-priced market, since Bucharest prime office yields are in the low sevens compared to sub 5% in Warsaw, for example,” says Tim Wilkinson, capital markets partner at Cushman & Wakefield Echinox. “There’s a perception that Bucharest is higher risk, but the country was the second-best performer in the EU after Ireland last year, with 6.9% growth.” For future investment growth, Przemyslaw Krych, the founder of Griffin Real Estate, emphasises that residential, like apartments, student housing and assisted living, are emerging sectors that will drive the region’s markets in coming years. Helaba’s Erbe also tips the multi-family residential segment. Meanwhile, financing will continue to support CEE’s market strength. “Margins for core product today are in the range of 130-160 bps for office and retail, but that applies only for a very limited number of office and retail schemes,” Erbe adds. “The majority are between 170200 bps. Construction margins are higher, at 240-260 bps.”

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12-15 MARCH 2019 Palais des Festivals, Cannes, France OPENING TIMES 12-14 March 9.00-19.00 15 March 9.00-15.00 Access from 8.00 for exhibitors

12 March: Welcome Reception 19.30, Carlton Hotel

REGISTRATION HOURS 10 March 14.00-19.00 11 March 9.00-19.00 12 March 8.30-20.00 13 March 8.30-19.00 14 March 9.00-19.00 15 March 9.00-13.00

We look forward to welcoming you in Cannes, but first here are some tips to prepare your journey to MIPIM

Prepare for MIPIM in advance Visit the MIPIM website to organise your travel • Book your transportation & accommodation with our partners to get the best deals.

Prepare your agenda and meetings ahead of time • Check out the programme of conferences and networking events. • Log in to the Online Database and: – Fill out your profile and personalise your agenda. – Browse participants and attending companies. – Send one-to-one messages to other delegates and organise business meetings. • Download the Mobile App – Synchronised with the database and your email box. – Interact live during conference sessions.

Your badge: your key to getting into MIPIM • You received your badge by post Don’t forget to bring it with you. • You have your e-ticket Print it out or have it ready on your smartphone to collect your badge at a self-service delivery point at the airport, in the Grand Hyatt Martinez Hotel, The Carlton Hotel, the Majestic Hotel or at the Palais des Festivals. To retrieve your e-ticket, log in to your account at mipim.com or in the MIPIM mobile app. • You have your registration confirmation email Pick up your badge in the registration area. Your badge must be carried all times, and ready to be shown at entry points around the area. Your badge is strictly personal and non-transferable.

Onsite: meet decision makers and get an overview of the market trends Connect, learn, share

MIPIM Awards Ceremony

Welcome Reception

Thursday, 14 March, 18.30 Grand Auditorium

Sponsored by:

Tuesday, 12 March, 19.30 Carlton Hotel Open to all

Networking events* • Matchmaking sessions • Thematic networking events * more information online and in the Mobile app

MIPIM Awards 2019 Official Media Partner

4 DAYS OF CONFERENCES & NETWORKING EVENTS

See the programme p.94 and plan your journey MIPIM PREVIEW • 92 • February 2019

Sponsor of Best Healthcare Development

Conference programme Choose among 100+ conferences to stay on top of property and investment trends.

your mipim experience

General map of MIPIM

Croisette zone C9 -Catella France

Official Partners:

C10 - Bouygues Immobilier C11 - Moscow City Government

The 1,000m² Innovation Forum explores the most innovative solutions and practices to increase the value of property assets, and features a dedicated programme of conferences, case studies and pitching sessions.

C12 - Paris Region

C10

C14 - Istanbul Chamber of Commerce

C11

C15 - London Stand C16.A - Nuca C16.B - Scottish Government C12

C16.D - Midlands C16.E - Department of International Trade, UK C17.A - Manchester

C14

C17.B - Groupe Idec C19 - MIPIM Croisette Village

C19

Official Partner: 4

C19

C16.E C16.D

First Timers HQ

C16.A

ilion Pav ites u bai Du ality S spit Ho

Connect with hospitality and property industry professionals in MIPIM’s dedicated Hotel & Tourism area, identify new projects and hotel development opportunities, and promote tourist locations and infrastructure.

C20 - Nakheel

C15

C16.B

C17.B C17.A

Decorators registration & Harbour registration

C20

1 Main Entrance

HUB MEDIA GARE E IM MARIT Suite ality Hospit

Registration Protocol Press Registration Bag & Guide collection

Official Partner:

Industry influencers lead a healthcare real estate seminar exploring the opportunities available in this promising sector.

Meet and do business with Industrial and Corporate End-Users, and key players involved at the different stages of logistics Real Estate projects, including planners, investors developers, operators and occupiers.

Network What rooms can you use for your meetings? Visitors’ Lounge (Palais -1) Sponsored and designed by:

• Intended for participants without a stand • Include a meeting area, hostesses to help organise your meetings and free coffee

Press Club (Media Hub, Gare Maritime) • Dedicated to journalists • Includes computers, Internet connection, printers and the assistance of a permanent staff member

See you in Cannes!

VIP Club (Palais 3) Sponsored by:

• Exclusive club, by invitation only • Includes refreshments and a dedicated staff

1st Timers HQ • A dedicated cosy space to make the most out of your 1st MIPIM with trained staff to answer all your questions. See you soon!

For further information: www.mipim.com

MIPIM PREVIEW • 93 • February 2019

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CONFERENCES & EVENTS 2019

Sponsored by:

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Carlton hotel

SPECIAL EVENTS

14.00 | 15.00

15.00 | 16.30

MAIN THEME

DRIVING CHANGE Grand Auditorium - Palais 1

Grand Auditorium - Palais 1

Join with fellow delegates to celebrate the start of MIPIM 2019 at the legendary MIPIM Welcome Reception

19.30 |

Carlton Hotel

OPEN TO ALL

CLOSED-DOOR EVENTS

TUESDAY 12 MARCH

BY INVITATION ONLY

07.45 | 12.00

MAIN THEME

Sponsored by:

Carlton hotel

12.30 | 13.45

CMS_LawTax_CMYK_from101.eps

MAIN THEME

Sponsored by:

Carlton hotel

CMS_LawTax_CMYK_from101.eps

PARTNERS’ SESSIONS

BY INVITATION ONLY

10.00 | 13.00 PARTNERS MAPPING OUT THE UK INVESTMENT Sponsored by: LANDSCAPE IN 2019 10.00 | 11.00 UK CITIES - INVESTOR SENTIMENT 11.00 | 11.45 UK CITIES - PARTNERSHIP POWER 11.45 | 12.30 LONDON - INVESTMENT TRENDS BEYOND THE CENTRE 12.30 | 13.00 GLOBAL - THE POWER OF BIG BRANDS IN BIG CITIES

14.00 | 16.00 PARTNERS TECH AS A DRIVER FOR GROWTH Sponsored by: 14.00 | 15.00 THE RISE OF DATA-LED CITIES 15.00 | 16.00 INVESTMENT IN TECH Salon Croisette - Palais 5

16.00 | 18.00 PARTNERS BARCELONA CATALONIA: TALENT FUELS THE ECONOMY Sponsored by:

Espace Debussy - Palais 3

Verrière Grand Auditorium - Palais 1

Programme as of January 25th, 2019. May be subject to change.

Preview MIPIM 2019 - 285x230mm_v14.indd 6

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15.00 | 18.00

MAIN THEME

Palais 3

ROOM

MAGENTA

CONFERENCES & EVENTS 2019

VISIONS FOR THE FUTURE

Palais 3 Palais 3

15.00 | 15.45 INNOVATION TRENDS SMART CITIES: EMPOWERING SMART CITIZEN

16.15 | 17.00 INNOVATION TRENDS CITIES & TECH: DELIVERING A SUSTAINABLE LIVING MODEL

15.00 | 15.45 ASSET CLASS HOUSING: BUILDING HOUSING JUSTICE

16.15 | 17.00 ASSET CLASS HOUSING: MULTIFAMILY MARKET TRENDS

Palais 3 Palais -1

Palais 3

AUDI A

ROOM

CORAL

ROOM

INDIGO

ROOM

BEIGE PURPLE

Co-organiser:

15.00 | 15.30 INNOVATION TRENDS SMART GLASS & INTERNET OF THINGS: A WORLD FIRST WITH MICROSOFT AND SAINT-GOBAIN

16.00 | 16.30 INNOVATION TRENDS CUTTING-EDGE SOLUTION

Case study by:

15.00 | 15.45 WORLD TRENDS UK: POST BREXIT INVESTMENTS STRATEGIES

16.15 | 17.00 WORLD TRENDS UK: REGENERATION & WATERFRONT DEVELOPMENTS Sponsored by:

16.30 | 17.15 PARTNERS REGIONAL LEADER: THE VIBRANT POLISH REAL ESTATE MARKET Followed by a cocktail Sponsored by:

VerriÃ¨re Grand Auditorium - Palais 1

Preview MIPIM 2019 - 285x230mm_v14.indd 7

17.00 | 17.45 PARTNERS GREATER SEATTLE: FROM CRANE CAPITAL TO CLOUD CITY Organised by:

Coral Room - Palais -1

17.30 | 18.30 PARTNERS THROUGH BUILDING THE PARIS OLYMPIC VILLAGE, INVENTING TOGETHER THE EUROPEAN CITY OF 2050 Followed by a cocktail Ruby Room - Palais 5

Sponsored by:

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SPECIAL EVENTS

09.45 | 11.00 MAIN THEME YOUNG LEADERS: CONVERGENCE OR DIVERGENCE

11.00 | 12.00 MAIN THEME YOUNG LEADERS: PROMOTING TALENT & SKILLS Grand Auditorirum - Palais 1

In partership with:

11.00 | 12.00 ASSET CLASS MATCHMAKING HOSPITALITY Hospitality lounge - Palais -1

16.00 | 17.30

INNOVATION TRENDS

COMPETITION

Grand Auditorirum Palais 1

Global partner:

Sponsored by:

Healthcare lounge - Palais -1

Grand Auditorirum - Palais 1

STARTUP

15.00 | 16.00 NETWORKING MATCHMAKING HEALTHCARE

16.30 | 18.00 NETWORKING YOUNG LEADERS COCKTAIL Gare maritime

Global RE & Tech partner:

Palais 3 Palais 3

ROOM

BEIGE

ROOM

MAGENTA

OPEN TO ALL 10.00 | 10.45 MAIN THEME SUSTAINABILITY FORUM: RESPONSIBLE BUSINESS PRACTICES

11.15 | 12.00 MAIN THEME SUSTAINABILITY FORUM: PERFORMANCE FOR VALUE

Co-organised by:

10.00 | 10.45 WORLD TRENDS IMPACT OF THE US-CHINA TRADE WAR ON REAL ESTATE

11.15 | 12.00 WORLD TRENDS TOKYO: POST OLYMPIC MARKET

11.30 | 12.00 Palais 3 Palais 3

PARTNERS’ SESSIONS

Palais -1

ROOM

CORAL

ROOM

INDIGO

ROOM

PURPLE

WEDNESDAY 13 MARCH

PROGRAMME AT-A-GLANCE

RELAX

CORPORATE YOGA BREAK by Yogist

10.00 | 10.45 ASSET CLASS EMERGING TRENDS IN REAL ESTATE

12.15 | 13.15

BRAINSTORM

SUSTAINABILITY DESIGN THINKING In partnership with:

13.30 | 14.00

RELAX

CORPORATE YOGA BREAK by Yogist

11.15 | 12.00 ASSET CLASS HEALTHCARE: CARE GIVER FOR PREVENTION

Co-organised by:

Sponsored by:

10.00 | 10.45 INNOVATION TRENDS CONSTRUCTION: THINKING DIFFERENTLY

PARTNERS 08.30 | 09.30 NORDICS: THE PERFECT INGREDIENTS IN A DIVERSIFIED PORTFOLIO

11.15 | 12.00 INNOVATION TRENDS BUILDINGS & CONSTRUCTION: ENGAGING FOR RESOURCES EFFICIENCY

Sponsored by:

Preceded by a breakfast

Verrière Californie - Palais 5

PARTNERS 09.30 | 10.30 INVESTING IN THE NORDIC MARKET – AN INTERNATIONAL PERSPECTIVE

Co-organized by:

Verrière Californie - Palais 5

PARTNERS 10.30 | 12.00 INVESTING & DEVELOPING IN THE UNITED STATES: WHERE, WHAT & HOW?

Sponsored by:

PARTNERS 14.00 | 15.30 POLISH CITIES – POLAND’S GREAT STRENGTH

Sponsored by:

Espace Debussy - Palais 3

09.00 | 18.00 BELGIAN CONFERENCES Auditorium A - Palais 3

Ruby Room - Palais 5 PARTNERS

----------------------------------------------------------------------------------------------

Programme as of January 25th, 2019. May be subject to change.

Preview MIPIM 2019 - 285x230mm_v14.indd 8

28/01/2019 14:03

GREAT

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CLOSED-DOOR EVENTS

CONFERENCES & EVENTS 2019 08.00 | 09.30

MAIN THEME

LEADERS’

08.00 | 10.00

JAPAN

BREAKFAST

Sponsored by:

Majestic Hotel

08.15 | 10.15

WORLD TRENDS

Sponsored by:

AGEING IN THE CITY Gare maritime

Verrière Grand Auditorirum - Palais 1 08.30 | 10.00

NETWORKING

12.30 | 13.45

15.00 | 16.30

WORLD TRENDS

ASIA

NETWORKING

08.30 | 11.00

MAIN THEME

Sponsored by:

LUNCH

Foyer Debussy - Palais 3

Majestic Hotel

Sponsored by:

ASSET CLASS

Sponsored by:

Indigo Room - Palais 3

Carlton Hotel - Salon la Côte

BY INVITATION ONLY 14.00 | 14.45 MAIN THEME GOVERNANCE: URBANISM FOR GOOD GOVERNANCE

15.15 | 16.00 MAIN THEME GOVERNANCE: KEY QUALITY-OF-LIFE INDICATORS

16.30 | 17.15 MAIN THEME THE HOUSING CRISIS AND URBAN SOLIDARITY In partnership with:

14.00 | 14.45 WORLD TRENDS INVESTMENT TRENDS IN ASIA Sponsored by:

15.15 | 16.00 WORLD TRENDS MENA: TRANSIT ORIENTATED DEVELOPMENTS

15.00 | 16.00

16.30 | 17.15 WORLD TRENDS EUROPE: MEDITERRANEAN REGION & INVESTMENT

16.15 | 17.15

BRAINSTORM

YOUNG LEADERS DESIGN THINKING

BRAINSTORM

GOVERNANCE DESIGN THINKING In partnership with:

14.00 | 14.45 ASSET CLASS LOGISTICS & LABOUR MARKET

14.00 | 14.45 ASSET CLASS DOMITYS : FRENCH LEADER OF SENIOR HOUSING

15.15 | 16.00 ASSET CLASS WORKSPACE: NEW WAYS OF OCCUPYING

15.00 | 15.30

INNOVATION TRENDS

Case study by:

16.00 | 16.30 INNOVATION TRENDS INCREASING THE VALUE OF YOUR PROPERTY ASSETS AND REDUCING TOTAL COST OF OWNERSHIP Case study by:

SNCF LOGO_SNCF_IMMOBILIER.ai DATE : 15/01/2015

CYAN

MAGENTA

JAUNE

14, rue Palouzié . 93400 Saint-Ouen Tél : 01 41 66 64 00 . Fax : 01 41 66 64 01

PARTNERS 14.30 | 16.00 BRAZILIAN MARKET: PERSPECTIVES AND OPPORTUNITIES

Sponsored by:

Salon Croisette - Palais 5

PARTNERS 16.00 | 17.00 EUROPEAN LOGISTIC HUBS ON THE BELT & ROAD TRACK

PARTNERS 17.00 | 19.00 ANNOUCEMENT OF THE WINNERS OF THE CALL FOR INNOVATIVE URBAN PROJECTS « DRAW ME TOULOUSE »

Sponsored by:

Organised by:

Verrière Californie - Palais 5

Salon Croisette - Palais 5

Sponsored by:

PARTNERS 17.00 | 18.00 DUBAI CITY SESSION

Sponsored by:

11.30 | 12.00 Palais 3 Palais 3

RELAX

CORPORATE YOGA BREAK by Yogist

10.00 | 10.45 ASSET CLASS HOSPITALITY: REDEFINING PARTNERS RELATIONSHIPS

11.15 | 12.00 ASSET CLASS HOSPITALITY: DIVERSIFYING TO MIXED-USE

10.00 | 10.45 INNOVATION TRENDS WORKPLACE TECHNOLOGY: IMPROVING THE EXPERIENCE

11.15 | 12.00 INNOVATION TRENDS MILLENIALS: SATISFYING THEIR EXPECTATIONS

Sponsored by:

10.00 | 10.45 WORLD TRENDS LISBON & PORTO: NEW EUROPEAN AND ATLANTIC HUBS FOR INVESTMENT

11.15 | 12.00 WORLD TRENDS CLIENT CENTRICITY: ADAPTING SOLUTIONS FOR HIGHER RETURNS IN SPAIN

Sponsored by:

PARTNERS’ SESSIONS

Palais 3

AUDI A

Palais -1

ROOM

CORAL

ROOM

INDIGO

ROOM

PURPLE

THURSDAY 14 MARCH

PROGRAMME AT-A-GLANCE

PARTNERS 11.00 | 12.00 SNCF IMMOBILIER AND PLATEAU URBAIN: TRANSITIONAL URBAN DEVELOPMENT IN EUROPE

12.15 | 13.15

BRAINSTORM

ECONOMY DESIGN THINKING In partnership with:

PARTNERS 11.30 | 13.30 TURKEY INVESTMENT LUNCH: CAPTURING THE VALUE OPPORTUNITY By invitation only

Sponsored by:

Verrière Californie - Palais 5

Gare Maritime

SNCF

LOGO_SNCF_IMMOBILIER.ai DATE : 15/01/2015

CYAN

MAGENTA

JAUNE

14, rue Palouzié . 93400 Saint-Ouen Tél : 01 41 66 64 00 . Fax : 01 41 66 64 01

09.00 | 14.00 BELGIAN CONFERENCES Ruby Room - Palais 5

PARTNERS

For further details: www.surrealestate.be/events/

Programme as of January 25th, 2019. May be subject to change.

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044V3_RM CONFS_PV_PIM_page 10

CLOSED-DOOR EVENTS

CONFERENCES & EVENTS 2019 08.00 | 11.00

MAIN THEME

12.30 | 14.00

08.30 | 10.00 NETWORKING US BREAKFAST Sponsored by:

Sponsored by:

Majestic Hotel

In partnership with:

16.30 | 20.00

ASSET CLASS

INNOVATION TRENDS

Sponsored by:

In partnership with:

Majestic Hotel

Gare Maritime

Salon Croisette - Palais 5

BY INVITATION ONLY 14.00 | 14.45 MAIN THEME INCLUSION FORUM: INCLUSIVE CITIES

15.15 | 16.00 MAIN THEME INCLUSION FORUM: GENDER BALANCE

16.30 | 17.15 ASSET CLASS MIXED-USED: THE NEW NORMAL?

14.00 | 14.45 ASSET CLASS INFRASTRUCTURE: LIGHT INDUSTRIAL & OTHER SUSTAINABLE APPROACH Sponsored by:

15.15 | 16.00 ASSET CLASS INFRASTRUCTURE: TRANSFORMING THE CITY

16.30 | 17.15 ASSET CLASS MOBILITY IN THE CITY

15.30 | 16.00

16.15 | 17.15

RELAX

CORPORATE YOGA BREAK by Yogist

14.00 | 14.45 ASSET CLASS LEISURE: REENCHANT THE CITY

15.15 | 16.00 LOGISTICS

BRAINSTORM

INCLUSION DESIGN THINKING In partnership with:

16.30 | 17.15 ASSET CLASS LOGISTICS: INDUSTRIAL PLATFORM TRENDS

ASSET CLASS

Sponsored by:

14.00 | 14.30 INNOVATION TRENDS CUTTING-EDGE SOLUTION

15.00 | 15.30 INNOVATION TRENDS CUTTING-EDGE SOLUTION

Palais -1

ROOM

SPECIAL EVENTS

FRIDAY 15 MARCH

CORAL

15.15 | 16.00 WORLD TRENDS THE US & CANADA PROPERTY MARKET TRENDS

14.00 | 14.45 ASSET CLASS KEYNOTE SESSION BY SEBASTIEN BAZIN, CHAIRMAN & CEO, ACCORHOTELS

Preview MIPIM 2019 - 285x230mm_v14.indd 11

16.00 | 16.30 INNOVATION TRENDS CUTTING-EDGE SOLUTION

16.30 | 17.15 WORLD TRENDS LATAM REAL ESTATE OUTLOOK

10.00 | 10.45 MAIN THEME CLOSING REMARKS

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CONFERENCES & EVENTS 2019

REGIONAL CONFERENCES NORDICS CONFERENCES

OPEN TO ALL

WEDNESDAY 13 MARCH 08.00 | 09.30 VERRIÈRE CALIFORNIE NORDICS: THE PERFECT INGREDIENTS IN A DIVERSIFIED PORTFOLIO Sponsored by:

09.30 | 10.30 VERRIÈRE CALIFORNIE INVESTING IN THE NORDIC MARKET – AN INTERNATIONAL PERSPECTIVE

Co-organized by:

Sponsored by:

Each sub-market within the Nordic region has its own idiosyncrasy and the most successful investors know their markets and benefit from their unique characteristics. Where are the best investment opportunities in Nordic real estate to be found? Join us for quick, efficient introductions of four different sub-markets in the Nordics.

The Nordic property market is one of the most liquid in the world. What is it really like to do business in the Nordics? Get the inside view on opportunities, risks and insight into global mega trends across the region.

Preceded by a breakfast

Moderator: International Client Relations

Moderator: Speakers:

Richard ANGLISS

Sponsored by:

Newsec, United Kingdom

Sebastian SHEHADI Global Markets Reporter fDI, United Kingdom

Morten JENSEN Tom RASMUSSEN Deputy Head of Head of Asset Management Newsec Advisory, Heimstaden AB, Sweden Denmark

Speakers: Ilkka TOMPERI Investment Director Head of Real Estate Varma Mutual Pension Insurance Company, Finland

Max BARCLAY Head of Advisory Newsec, Sweden

Rikke LYKKE Head of European Asset Management & Regional Head of DACH &CEE PATRIZIA, Denmark

POLAND CONFERENCES

OPEN TO ALL

Richard STEPHENS

Moderated by: Founder & Editor, Poland Today, Poland

TUESDAY 12 MARCH

WEDNESDAY 13 MARCH

16.30 | 18.00 VERRIÈRE GRAND AUDITORIUM REGIONAL LEADER: THE VIBRANT POLISH REAL ESTATE MARKET

14.00 | 15.30 RUBY ROOM POLISH CITIES – POLAND’S GREAT STRENGTH

16.00 | 17.00 VERRIÈRE CALIFORNIE EUROPEAN LOGISTIC HUBS ON THE BELT & ROAD TRACK

Sponsored by:

What makes Poland the most dynamic real estate market in Central and Eastern Europe? Gain an insight into finance, investment, real estate and economic policy from both private and public sector experts. Meet them to discuss Poland’s market outlook, success stories and growth perspectives. Join PAIH Influencers Panel Discussion & Cocktail Party. Followed by a cocktail

Poland is blessed with many natural advantages but one asset stands above the others – its many large, dynamic and independent-minded cities in which business is booming and investment is pouring in. What are the challenges they face in a competitive world?

The New Silk Road is a topic which has generated tonnes publicity, but what actual effect will it have on business and on Europe’s real estate market, in particular the CEE region’s vibrant logistics sector?

Speakers: Marcin JUSZCZYK Member of the Management Board Capital Park S.A., Poland

Tadeusz KOSCINSKI Undersecretary of State Ministry of Entrepreneurship and Technology, Poland

Krzysztof SENGER Acting President Polish Investment and Trade Agency, Poland

Monika Rajska-Wolinska Managing Partner Colliers International Poland, Poland

Speaker: Frank SCHUHHOLZ CEO FMS ADVISERS B.V. Netherlands

Programme under construction - More information on https://www.mipim.com/en/online-database/conferences/#

The Nordics - 285x230mm_v7.indd 1

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UPGRADE YOUR MIPIM EXPERIENCE WITH OUR CHAUFFEURED-CAR SERVICE

Airport transfer Nice Airport – Cannes: €125* (Sedan) or €145* (Van–7 Pax)

Evening offer: €340* 4-hour bespoke service

Personalized pick-up at Nice airport

Ask our bilingual and experienced chauffeurs for any transportation need you might have during your stay

Sedan: Mercedes E-Class or equivalent, Van: Mercedes V-Class

*10% VAT included – Subject to conditions

RESERVATION call +33 4 93 43 90 91 | cannes@chabe.fr Chabé Cannes Office: 11-13 rue Latour-Maubourg - 06400 CANNES - Open 24/7

www.chabe.fr Biarritz • Bordeaux • Cannes • Courchevel • Geneva • Lyon • Marseille • Megève • Paris • Toulouse MIPIM-Preview-2018.indd 1

23/01/2018 15:59:14

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THE GERMAN REAL ESTATE NETWORK Get your free copy

IMMOBILIENWIRTSCHAFT – SPECIAL EDITION GERMANY „immobilienwirtschaft“ is connecting real estate professionals in German speaking countries

www.haufe.de/immobilien

AWARDS

The JURY Chairman of the jury Méka BRUNEL Gecina CEO France

Chris BROOKE RICS President Hong Kong

Serge FAUTRE AG Real Estate CEO Belgium

Paolo GENCARELLI

Poste Italiane Head of Group Real Estate and Procurement Italy

Marco HEKMAN CBRE Managing Director Continental Europe The Netherlands

Frank KHOO

City Developments Limited Group Chief Investment Officer Singapore

Tinka KLEINE

PGGM Senior Director Private Real Estate The Netherlands

MIPIM Awards 2019 Shortlists unveiled for 2019 MIPIM Awards

HE entries are in, the jury’s deliberations are complete, and now it’s over to MIPIM delegates to choose the top projects from the real estate world of 2019. From a huge bag of entries, the MIPIM Awards jury, chaired by Gecina CEO Méka Brunel, have drawn up a shortlist of 45 ﬁnalists in the following categories: • Best Healthcare Development • Best Hotel & Tourism Resort • Best Industrial & Logistics Development • Best Mixed-use development • Best Ofﬁce & Business Development • Best Refurbished Building • Best Residential Development • Best Shopping Centre • Best Urban Regeneration Project • Best Futura Project • Best Futura Mega Project

Barbara KNOFLACH

BNP PARIBAS Real Estate Deputy Chief Executive & Global Head of Real Estate Investment Management

Sergey KUZNETSOV City of Moscow Chief Architect Russia

Lee MORRIS

Atkins Design Director and Head of Architecture United Arab Emirates

Guy PERRY

McKinsey & Company Vice President, Urban Planning and Design United Arab Emirates

Jean-Michel WILMOTTE Wilmotte & Associés President and Architect France

MIPIM PREVIEW • 107 • February 2019

The winners will be selected on a 50:50 basis, with delegates’ votes cast on-site during MIPIM 2019 carrying equal weight with the jury’s own votes. In addition, the jury of real estate experts from around the world have the right to award one additional prize – the Special Jury Award – which goes to their favourite project from among all the entries they considered. Don’t forget to head to the Awards Gallery in the Palais des Festivals between 9am on 12 March and 12 noon on 14 March to view the shortlisted entries in more detail and to cast your ballot. And put a date in your diary for the awards ceremony at 6.30 on 14 March in the Grand Auditorium. Official media partner

AWARDS

Best Healthcare Development Sponsored by

Gasthuisberg outpatient care centre

agenda

MIPIM AWARDS ONSITE VOTE Tuesday 12 March (9.00) to Thursday 14 March (noon) Awards Gallery, Palais -1

MIPIM AWARDS CEREMONY

Leuven, Belgium Developer: University Hospitals Leuven Architect: AAPROG architecten, DETOO Architects, POLO Architects & Studieburo De Klerck

Thursday 14 March, 18.30 Grand Auditorium, Palais 1 Followed by a celebration cocktail

Polyclinique ReimsBezannes Bezannes, France Developer: Icade Architect: Jean-Michel Jacquet Other: Courlancy Santé, Artelia, Eiffage Construction, Cari

Sant Pau Hospital’s Research Center Barcelona, Spain Developer: Fundació Privada Hospital de la Santa Creu I Sant Pau Architect: Picharchitects_PichAguilera, 2BMFG ARQUITECTES

Swindon Health Centre Swindon, United Kingdom Developer: MUSE Developments Architect: Roberts Limbrick Other: NHS Property Services, NHS England, NHS Swindon CCG, Public Health Swindon, Swindon Borough Council

MIPIM PREVIEW • 108 • February 2019

AWARDS

Best Hotel & Tourism Resort

Best Industrial & Logistics Development

Bürgenstock Hotels & Resort Lake Lucerne, Switzerland

Ca n’Alemany Industrial and Logistics Development

Developer: Katara Hospitality Architect: Matteo Thun, Lüscher Bucher Theiler Architects Lucerne, Rüssli Architekten AG Other: MKV Interior Design London

Viladecans, Spain

Club Med Cefalù

Greenwich Peninsula Low Carbon Energy Centre

Cefalu, Italy Developer: Club Med SAS Architect: King Rosseli Other: Sophie Jacqmin

Le Barthelemy Hotel and Spa Saint-Barthelemy, France

Developer: Deltabcn Consortium, NEINVER, Desigual Architect: INCASÒL-Catalan Land Institute + Viladecans City Council, Batlle i Roig (NEINVER), TurullSörensen (Desigual)

London, United Kingdom Developer: Pinnacle Power and Knight Dragon Developments Architect: C.F. Møller Architects Other: Artist Conrad Shawcross, Futurecity and Structure Workshop

New Trade Fair Hall No. 12 at Messe Frankfurt

Developer: Saint Barth Drep Hotel Invest Architect: Philippe Stouvenot Other: ALIAS Construction Management

Frankfurt am Main, Germany

Muhshoou Xixi

Prologis Park Tilburg – WELL Facility

Hangzhou, China Developer: Hangzhou Mushou Shiye Hotel Co., Ltd Architect: GOA

MIPIM PREVIEW • 109 • February 2019

Developer: Messe Frankfurt Venue GmbH Architect: kadawittfeldarchitektur GmbH Other: ARGE consortium partners Max Bögl, Ed. Züblin AG and Engie Deutschland GmbH

Tilburg, The Netherlands Developer: Prologis Architect: Johan de Vries Other: Doepelstrijkers

AWARDS

Best Mixed-use Development

Best Office & Business Development

Al Seef (The Contemporary Area)

Amazon Spheres

Dubai, United Arab Emirates

Developer: Seneca Group Architect: NBBJ Other: Magnusson Klemencic Associates, WSP Electrical, Stantec, Sellen Construction, WSP, Coughlin Porter Lundeen, Supreme Group, Cochran

Developer: Meraas Architect: 10 DESIGN Other: W.S. Atkins & Partners Overseas, CH2M, Cracknell, Genius Loci, Mace, MCTS, Meinhardt, MLC, NeoLight, Studio HBA, Vortex, Dutco Balfour Beatty (L.L.C.)

Seattle, United States

Hong Kong West Kowloon Station

CITIC Tower

Hong Kong, China

Developer: CITIC Heye Investment Architect: Kohn Pedersen Fox Associates Other: Beijing Institute of Architectural Design, TFP Farrells

Developer: MTR Corporation Limited Architect: Andrew Bromberg at Aedas

Beijing, China

The biggest bicycle parking in the world

Laborde

Utrecht, The Netherlands

Developer: ACM Architect: PCA-STREAM | Philippe Chiambaretta Architecte Other: ARC, Artelia, Khephren, VS-A, Green Affair, Barbanel, A&C, Qualiconsult, Delporte, LM3C, CSD Faces, Topager, La Superstructure, LUMIERE STUDIO, ARCHIMAGE, Eiffage, GOYER, AGM, LEFORT, FIBOR.

Developer: City of Utrecht Architect: Ector Hoogstad Architecten Other: BAM Bouw en Techniek, Buro Sant en Co

Paris, France

The Student Hotel Florence Lavagnini

Merck Innovation Center

Florence, Italy

Darmstadt, Germany

Developer: Inso S.P.A Architect: Archea Associati Other: Arcadis, Habitech, Rizoma Archi, Modus

Developer: Merck KGaA Architect: HENN

MIPIM PREVIEW • 110 • February 2019

AWARDS

Best Refurbished Building

Best Residential Development

CEDET

Amstel Tower

Warsaw, Poland

Amsterdam, The Netherlands

Developer: IMMOBEL Group Poland Architect: AMC Andrzej M. Chołdzynski / RKW Architectur +

Developer: Provast Architect: Powerhouse Company

KOSMO

Gasholders London

Neuilly-sur-Seine, France

London, United Kingdom

Developer: Altarea Cogedim Architect: Ateliers 2/3/4

Developer: King’s Cross Central Limited Partnership (KCCLP) Architect: WilkinsonEyre

SHIFT 54 LONDRES

Upcycle Studios

Paris, France

Copenhagen, Denmark

Developer: MEAG Munich Ergo Architect: Axel Schoenert architectes Other: Spaces (User), Legendre (General contractor), Zsofia Varnagy (Interior architect)

Developer: NREP A/S and Arkitektgruppen A/S Architect: Lendager Group Other: MOE A/S

Torre Europa

WOODIE Hamburg

Madrid, Spain

Hamburg, Germany

Developer: Infinorsa Architect: CallisonRTKL, LKS Other: LKS, Cesar Herrera (CHC), Aguileria Ingenieros, Bovis, BSH, INASUS, Bellapart, JMM, Laguna Belvis, Engie, Arup, ENAR, Acerinox

Developer: Dritte PRIMUS Projekt UDQ GmbH, PRIMUS developments GmbH, Senectus GmbH Architect: Sauerbruch Hutton Architects Other: Kaufmann Bausysteme

MIPIM PREVIEW • 111 • February 2019

AWARDS

Best Shopping Centre

Best Urban Regeneration Project

BIKINI BERLIN with Foodmarket Kantini

Changchun Culture of Water Ecology Park

Berlin, Germany

Changchun, China

Developer: Bayerische Hausbau GmbH & Co. KG / BHG Berlin Immobilien GmbH & Co. KG Architect: SAQ Arne Quinze, Hild und K, Studio Aisslinger

Developer: Changchun Urban and Rural Construction Committee & Changchun Construction Investment Co., Ltd. Architect: W&R Group, Shanghai W-R Architecture and Planning Design Lo. Ltd, Zonbong Landscape Co., Ltd.

CityLife Shopping District

National Kaohsiung Centre for the Arts

Milan, Italy

Kaohsiung, Taiwan

Investor: Generali Real Estate Developer: CityLife S.p.A. Architect: Zaha Hadid Architects, One Works Studio, Studio Mauro Galantino

Developer: Ministry of Culture (MoC) Architect: Mecanoo, Francine Houben Other: Archasia Design Group

HIRAKATA T-SITE

Rebuilding Frankfurt’s old centre

Hirakata, Japan Developer: So-Two. Inc Architect: Takenaka Corporation

Mall of Egypt Cairo, Egypt Developer: Majid Al Futtaim Properties Architect: CallisonRTKL Other: RMC (Architect of Record), WSP & Shaker Consultancy Group, BDP Lighting, Thinkwell, Tarek Beshir Architects

MIPIM PREVIEW • 112 • February 2019

Frankfurt am Main, Germany Developer: DomRömer GmbH Architect: Bernd Albers, Dreibund Architekten, Jourdan, Müller und Steinhauser, Denkmalkonzept, dreysse architekten, Landes & Partner, Jordi & Keller Architekten, Morger Partner Architekten AG, Knerer und Lang, Eingartner Khorrami Architekten, Francesco Collotti, Hans Kollhoff, Schneider und Schumacher, von Ey Architekten, Johannes Götz, Riemann Architekten, Claus Giel, Meurer Architekten, Macholz Kummer Architekten, ENS Architekten

« Zaryadye » park with a multifunctional concert complex Moscow, Russia Developer: Moscow Government Architect: S.Kuznetsov, Diller Scofidio + Renfro, Hargreaves Associates, Citymakers, CPU Reserve, MAHPI, Architectural Bureau by T. Bashkaev Other: Mosinzhproekt

AWARDS

Best Futura Project Changing cities into forests W350 project for sustainable future

Best Futura Mega Project

Tokyo, Japan Developer: Sumitomo Forestry Co., Ltd. Architect: Sumitomo Forestry Co., Ltd. & Nikken Sekkei Ltd.

Future Park Yorkshire, United Kingdom Developer: Fallons Architect: Bond Bryan

Cidade Matarazzo São Paulo, Brazil Developer: BM Empreendimentos e Participações SPE SA Architect: Jean Nouvel (tower); Philippe Starck (tower and maternity interior design); Ruddy Ricciotti (House of Creativity); Malherbe Paris and Chafik Studio (Retail interior design); Louis Beneche (Landscaping)

Humaniti Montreal, Canada Developer: Cogir Immobilier Architect: Lemay Other: Fonds immobilier de solidarité FTQ

Hangzhou Sports Tower Hangzhou, China Developer: Hangzhou Olympic and International Expo Center Construction Investment Co. LTD Architect: AREP, HZDI (Hangzhou Design Institute) Other: MaP3, Terao, AREP Flux, AREP Développement Durable, Tsinghua Environment

One Vanderbilt New York, United States

L’Avenue Libertador Buenos Aires, Argentina

Developer: SL Green Realty Corporation Architect: Kohn Pedersen Fox Associates

Developer: Grupo Portland Architect: Zaha Hadid Architects Other: BMA Arquitectos y Asociados + Lopatin Arquitectos

Mille Arbres Paris, France Developer: Compagnie de Phalsbourg and OGIC Investor: Compagnie de Phalsbourg and OGIC Architect: Sou Fujimoto, Oxo Architects, Paul Arene Other: Cushman & Wakefield MIPIM PREVIEW • 113 • February 2019

Tersane Istanbul – Halic Shipyards Istanbul, Turkey Developer: Halic Altinboynuz Architect: Tabanlioglu Architects, Melkan Gursel – Murat Tabanlioglu

PREVIEW February 2019 www.mipim.com

// DIRECTOR OF PUBLICATIONS // Paul Zilk

// MARKETING DIRECTOR // Mathieu Regnault

/ EDITORIAL DEPARTMENT / Editor in Chief Graham Parker Sub Editor Joanna Stephens Proof reader Debbie Lincoln Contributors Chris Bown, Adam Branson, Ben Cooper, Mark Faithfull, Steve Killick, Isobel Lee, Anika Michalovska, Mark Moore, Liz Morrell, Doug Morrison, Helen Roxborough, David Sands Editorial Management Boutique Editions Head of Graphic Studio Herve Traisnel Graphic Studio Manager Frederic Beauseigneur Graphic Designer Carole Peres

/ GRAPHIC DESIGN AND LAYOUT / / PRODUCTION DEPARTMENT / Publishing Director Martin Screpel Publishing Manager Amrane Lamiri Printed Communication Manager Emilie Lambert 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. Contents © 2019, Reed MIDEM Market Publications. Publication registered 1st quarter 2019. ISSN 1962-9974. Printed on PEFC certified paper.

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Wimotte & Associés

Laisné-Roussel

Woodeum & WO2 design, develop and market new-generation buildings to make healthier, more natural and pleasant places to live in. Specialized in low-carbon construction and renovation technologies, Woodeum and WO2 pursue projects with high environmental quality and architectural value. Thanks to the use of innovative, greener material buildings such as massive wood (Cross-Laminated Timber, Laminated Veneer Lumber), sustainable construction is reaching new heights.

2 200

300

145 000 sq.m

housing units

hotel rooms

office space

www.woodeum.com

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