MIPIM 2023 PREVIEW MAGAZINE

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THIS year’s MIPIM Preview brings together a rich tapestry of voices and views from across the industry that reflect the times in which we live, as well as an optimism about what lies ahead. Like you, we believe in the power of collaboration and that real estate is driven by people.

MIPIM 2023 is built on three pillars: creating better places, with greater impact, to forge stronger business. We are confident that real estate can build on the past to reach new heights, based on the rapid advancements of recent years in technology, ESG, and urban planning.

MIPIM should inspire, and so this year’s event includes a slate of incredible speakers from all around the globe. Professor Jeremy Rifkin, the American economic and social theorist, will open MIPIM 2023 with a keynote speech exploring innovation in the built environment. Other prominent business leaders, politicians and experts will also speak in Cannes, from the CEO of the World Green Building Council, Cristina Gamboa, to Valerie Vaughan-Dick, Chief Executive, RIBA.

We are also introducing six stages dedicated to building your knowledge. These include sharing insights on the road to zero, plus stages showcasing leaders’ perspectives, asset class and infrastructure trends, geographical opportunities and winning case studies.

Beyond that, hosts of stands and pavilions – from London to the Paris Region — will also be organising a rich calendar of talks of their own.

Despite all the innovations, you will still find the MIPIM you

know and love. From our diverse four-day programme to our shared spaces, MIPIM remains a consistently reliable platform and experience enabling you to meet, network and build the future of your business.

And as we finalise the line-up, the protagonist that we’re most excited about is you. You bring the enthusiasm and the knowhow, and you generate the atmosphere. You make it MIPIM. See you in Cannes!

‘It’s time to look beyond the challenges of the present and explore the opportunities’

Nicolas Kozubek, Head of MIPIM Markets

CoNTeNTs

MIPIM Awards jury chairman Francois Trausch explains how this year’s prizes will focus more than ever on developments with ESG in their DNA

MIPIM 2023 will explore the latest challenges posed by global events, the required leadership needed to drive change, the innovation necessary to reshape the built environment, and how to bring everyone together to embrace what now needs to be done. Pursuing an ethos of better places, greater impact and stronger business, MIPIM will combine everything you need to [re]imagine the urban world.

INVESTING IN GERMANY

INVESTING IN CEE

INVESTING IN THE NORDICS

INVESTING IN NORTH AMERICA

INVESTING IN ASIA

MIpIM 2023 PrACTIcAL gUIDE

Prizes for the planet

This year’s MIPIM Awards will place centre stage properties that help push the ESG agenda, says jury chairman Francois Trausch

The MIPIM Awards have always held a mirror up to the real estate industry’s greatest convictions. But in 2023, property’s most prestigious prizes will focus more than ever on developments with ESG in their DNA.

Says jury chairman, Francois Trausch, global CEO and CIO Allianz Real Estate: “The jury uses many different criteria to assess and compare projects. This year, sustainability and decarbonisation goals are going to be very important criteria as we assess each project’s benefits. “We are very aware of how these projects serve as models to inspire the industry due to the visibility of the awards which is why, in addition to how the projects contribute to the urban fabric, we want to ensure there is

a strong contribution to overall sustainability.”

From a large selection of entries, the MIPIM Awards jury led by Trausch has already drawn up a shortlist of four projects in each of 11 categories. The winners will be selected chosen on a 60:40 basis: 60% based on the jury vote, and 40% on the public vote, which opens three weeks prior to the event and continues on-site during MIPIM. In addition, the Special Jury Award will be given for an exceptional entry.

In this spirit of this year’s fresh approach to the awards, there are also several new faces on the jury. These include Nexity CEO, Veronique Bedague; Aaron Block, co-founder and managing partner of Metaprop; Mikkel Bulow Lehnsby, chairman and founder of NREP and 2150; RICS president Ann

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Gray; and Regine Leibinger, partner of Barkow Leibinger. Trausch stressed that the focus on ESG won’t make this year’s gongs any less rich and diverse: “First, these awards are global, and we believe that the projects reflect this international nature. Secondly, the size of the country or its real estate heritage doesn’t necessarily mean that projects coming out of these countries have the highest quality and we are often pleasantly surprised by the quality of projects coming out of smaller or less established — in real estate market terms — parts of the world.

“We want to ensure that these projects get the recognition they deserve, as they are often community-focused and even working with their local communities to achieve really good outcomes.”

The MIPIM Awards jury chairman Francois Trausch

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A way of living!

M&G European living fund wins €578m commitments

GLOBAL asset manager M&G

Real Estate has launched the M&G European living property fund with €578m of commitments, as it expands on its residential and European strategies.

The fund will target student housing, single and multifamily housing and retirement living.

It has already won €400m of investment from long standing Dutch client MN and €178m from an M&G internal client fund which is upweighting to alternatives in Europe.

Head of European residential, Marcus Eilers, will lead expansion into the European living sector from M&G’s Frankfurt office as part of M&G’s wider residential

platform led by Alex Greaves, head of UK and European living. “This is a natural progression of our successful UK Living strategy,” Greaves said. “We look forward to combining our capability with Marcus’s broad living sector expertise and background in large scale residential operating platforms. We are very happy to have partnered with MN and to have secured their trust and commitment as a long-term investor.”

The fund has already made a €75m maiden investment in Finland, a landmark Art Nouveau building home to 124 serviced apartments in central Helsinki. Retail units at ground level include restaurants, grocery stores,

and health and beauty outlets. Recently refurbished to a high standard, it has achieved the highest LEED Platinum score in its class in Europe and the second highest in the world in the same category.

Increasing the availability of low carbon and energy efficient housing across Europe forms a key tenet of M&G Real Estate’s net zero pathways and as one of the founding signatories of the Better Buildings Partnership Climate Change Commitment, the firm has committed to achieving net zero carbon across its global portfolio by 2050.

Patrizia and Mitsui team up on APAC infrastructure initiative

GLOBAL real assets specialist

Patrizia has launched its largest-ever infrastructure strategy focusing on the Asia-Pacific (APAC) market, in partnership with Mitsui & Co.

The strategy is managed by Patrizia MBK Fund Management (PMBK), a joint venture between Patrizia and Mitsui, and will aim for overall assets under management of up to $1bn (€920m).

The new initiative will invest in sustainable infrastructure assets in the key developed APAC markets of Australia, Japan, Singapore, South Korea, New Zealand and Taiwan, as well as in

select developing Asian markets. The investments will help address the global megatrends of decarbonisation, digitalisation, urbanisation and demographic changes, focusing primarily on mid-market brownfield opportunities in the four core sectors of energy, digital, social and mobility. This will include assets such as solar and wind farms, battery storage, data centres, social infrastructure and EV charging stations. Each investment will aim to deliver strong financial returns alongside positive sustainable outcomes in line with the United Nations’ Sustainable Development Goals.

Saji Anantakrishnan, head of infrastructure for Australia and Asia at Patrizia, said: “As the world’s top growth region, Asia-Pacific is an extremely compelling proposition for investors thanks to its favourable macroeconomic conditions, as well as the growing supply-demand imbalance for strategic infrastructure investments. “Governments alone cannot finance this transition, opening up enormous opportunities for private capital to shape the future development and prosperity of the region.”

The APAC region is forecast to contribute c.60% of global growth by 2030, while it has an estimated $900bn annual shortfall in infrastructure funding, according to the Asian Development Bank.

Patrizia’s Saji Anantakrishnan

The fund’s debut deal demonstrates its appetite for green assets

Times are changing. Your buildings

For us, sustainability means more than reducing the carbon footprint and energy consumption of our products. The key to sustainability lies in repurposing – and that’s particularly true for building owners. Retrofitting buildings and making sure new ones are future-proof is what will help us reach our collective climate goals.

Our General Purpose Elevator System (GPES) is a cost-efficient solution that brings maximum flexibility to your building. With GPES, your elevators can be reconfigured in real-time to cater to distinct and unrelated passenger groups within the same building. Office workers, hotel guests, or residents – each group enjoys what feels like an exclusive travelling experience.

Where previously several elevator groups were required to achieve that feature, now only one dynamic GPES group is needed. Our innovation provides the technological backbone to take mixed-use buildings and repurposing possibilities to a whole new level.

For building owners, GPES means buildings with a longer lifespan and a reduced ecological footprint. And for the rest of us, efficient, comfortable and seamless journeys all around. With GPES, your elevators evolve alongside your building.

Explore PORT 4D General Purpose Elevator System at our booth (P-1.C in Palais-1). Our experts will be happy to run you through our range of smart and sustainable innovations.

Don’t miss the panel discussion on this exciting topic! «Revolutionary Infrastructure to help realize tomorrow’s cities»

Dr. Florian Troesch

Head Transit Management & Digital Ecosystems

When? 14.03.2023, 14:00-14:45

Where? Infrastructure Stage

It’s time to build the future

should, too.

Italy’s bright prospects set to shine at MIPIM pavilion

THIS year’s Italian Pavilion at MIPIM, organised by ITA - Italian Trade Agency, in co-operation with Invitalia, will include an inviting slate of investment projects for the international community, according to Paola Paolocci, director, foreign investment attraction department, ITA.

“The projects to be presented at MIPIM 2023 will include two categories of investment opportunities; the first refers to property such as heritage buildings, with a pre-defined designated use, which may be converted into premium office space or luxury hotels. The second category comprises real estate development properties ranging from buildings to be converted to building lots to be developed. The intended use of these

properties may be re-defined on the basis of valid, sustainable proposals and special requests submitted by potential investors and end-users,” Paolocci said.

“The Italian offer will be designed

with particular attention to sustainability and enriched also with a specific focus on abandoned industrial areas, with the aim of enhancing this type of offer, spread throughout the national territory.”

Following robust demand for Italian real estate in 2022, when logistics, offices and hotel projects traded particularly well, Paolocci anticipates further significant interest in the country’s assets. “If logistics is riding a wave, real estate is following the same trend,” she said.

“The recovery in tourism is fast and solid: international tourists have returned to visit our country, and we estimate that the flow will return to pre-COVID levels this year.”

In the months following MIPIM, ITA’s network of FDI desks, present in over 20 countries, will sort proposals and arrange meetings between potential investors and project representatives, Paolocci added, noting: “ITA will also promote the Italian offer through its dedicated real estate website, where investment opportunities can be sorted in terms of location, type and size.”

Milan brings investors in from the cold

THE CITY of Milan has invited the international investment community to join it on a path of “exponential growth”, according to Giancarlo Tancredi, councillor for urban regeneration at the Municipality of Milan. “The vision and energy of the city and its leaders have helped make Milan cool — an unmissable place to be where you can participate in the Italian lifestyle, and enjoy food, events, fashion and design,” he said. “Coupled with that is a vision of urban regeneration to grow the city by rebalancing the socio-economic distances between the centre and its hinterlands.”

It is estimated that significant public and private projects are

set to make Milan one of Europe’s most revitalised cities, with around €13bn of investment planned within 2030, some €2bn of which is public urbanisation works. In the residential sector alone, over 33,000 homes are in the pipeline, of which 30% will be affordable and social housing. Meanwhile, Milan’s successful bid to host the 2026 Winter Olympics, in partnership with Cortina d’Ampezzo, is set to spark a further renaissance. “We aspire to repeat the successes of Expo 2015, and further reinforce the city’s international image on the world stage,” Tancredi said.

Both Italian and international

investors seeking a piece of the action should study the city’s range of opportunities, including the Ex-Caserma Mameli, Scalo Farini, Piazza d’Armi and many more, he added. A

recently approved air-climate plan, and further investments to strengthen the city’s public transport, underline that Milan is also on a highly sustainable track, Tancredi said.

The new Arena for Milan will take centre stage at the 2026 Winter Olympics

Italy’s unique heritage and coastline charms investors

The Kraków Metropolitan Area as a business heart of the Małopolska Region

 1,100,000 people of which 62% speaks English language

 Over 22% of the population are R&D and technical engineering workers

 23 higher education institutions with over 130,000 students

 11 Economic Activity Zones in 7 communes

 Modern A-class office buildings: 1,550,000 sq. m of office space

 High quality roads, rail and air transport infrastructure

 Great cultural and entertainment life

 Wonderful tourist destination

Riviera Hall R8. B1

UK ahead of rest of Europe in terms of pricing realism

THE UK market may be more than half-way through the downturn, with capital values likely to bottom out in the first half of 2023, according to Mark Callender, head of real estate research at Schroders Capital. “That’s In contrast to the continent, where market participants seem less willing to transact. The recovery in sterling since the new government took over in October has also improved sentiment towards the UK market,” he said. Another factor affecting pricing is ESG metrics, with London offices already “commanding a premium of around 20% in terms of capital value”. He added: “Around Europe, governments are starting to consider a carbon tax on polluting buildings. Investors will have to factor in higher levels of capital expenditure to tackle energy efficiency.”

Dry powder heaps up for London investors

BNP PARIBAS Real Estate analysis has revealed that the second half of 2022 was so far one of the weakest investment periods registered since the 2008 global financial crash, as investors eye up acquisitions at corrected values this year.

According to preliminary data, Central London office investment to date totalled £11.5bn (€13bn) in 2022. Of this, H1 2022 totalled £8.1bn with H2 much lower at £3.4bn. H2 2022 was the weakest period recorded since H2 2008 at £2.2bn.

Fergus Keane, head of central London investment markets at BNP Paribas Real Estate, said:

“There is an incredible amount of dry powder that is waiting on

the side lines targeting a London recovery given the speed of the correction in H2 2022.

“The majority of those investors, particularly those from overseas, have the firepower that grants them the ability to pick the optimum time to deploy capital to deals.

“Values were at a relatively high point but began to fall from mid-late summer. Some owners will be facing the prospect of either significant capex requirements driven by ESG factors, refinancing events, or a slide in LTV margins that could prompt some selling of buildings.

“We envisage some potential vendors will look through closed process to step ahead of

Interest soars for stacked industrial

THE POPULARITY of multi-storey industrial assets is climbing, thanks to an urban infill revolution, according to Youssef Kadiri, managing director of Neat Developments.

“Over the last 20 years, London has lost 6 million sq m of industrial floorspace, mostly to housing developments, with inner-London losing around 40% of industrial space. This has led planners, investors and developers to conclude that stacked industrial, or building upwards to make better use of existing space, is the obvious solution,” Kadiri said.

“Through Neat Developments’ work with BlackRock’s UK industrial team over the last three

years, we’ve proven that the concept of stacked industrial works, with the Uplands Business Park

a pick-up in stock volumes later in the year, and conversely we see the more entrepreneurial purchasers looking to deploy for the best opportunities ahead of attempting to call the bottom of the market in the middle of the year.”

in Walthamstow now one of the largest stacked industrial schemes, co-located with housing, in the UK. we’ve managed to create 30,000 sq m of modern stacked industrial — all BREEAM excellent — as well as find space for 1,800 homes.”

Schroders Capital’s Mark Callender

The Goldsmith Yard multistorey industrial buildings

BNP Paribas Real Estate’s Fergus Keane

GREATER PARIS METROPOLIS

GREATER LIFE, BETTER LIFE

Pavillion (C12)

The Greater Paris Metropolis aims to improve the living environment for residents, reduce inequalities between territories, and develop a sustainable social and economic urban model that ensures attractiveness and greater competitiveness.

Liget Budapest proves a jewel in the city’s crown

ONGOING work on the ambitious Liget Budapest project has already impressed and attracted international capital, but the best may be yet to come, according to Benedek Gyorgyevics, CEO of Varosliget, the firm behind the entire Liget Budapest scheme.

“The Liget Budapest Project has now become Europe’s largest-scale and most complex, multiple award-winning cultural urban development project,” Gyorgyevics said. “It comprises the comprehensive development of the 100-hectare City Park in Budapest and includes the renewal and enlargement of the park’s green areas and recreational functions as well as those of its hundreds-of-years-old institutions.”

Gyorgyevics described the scheme as the new “jewel in the

crown” of the Hungarian capital, which is set to become Budapest’s “most visited site, a magnet development both for local and international visitors”. The planned increase of the park’s green areas,

its comprehensive transformation and the “implementation of the renewal and development of its rich cultural institutional network will turn Liget Budapest into a world-standard cultural

and recreational experience for visitors”, he said.

“At MIPIM 2017, the Liget Budapest project was selected as being among the four best projects — and within that the only and therefore best project in the EU — in the Best Futura Mega Project category,” he said. “The House of Music Hungary, realised within the Liget Budapest Project, won the main jury prize in 2022, making it the greatest success in the history of Hungarian property development.”

Gyorgyevics added: “The need to spend leisure time in a cultured environment and the revival in tourism has provided an opportunity for the development of cultural attractions, with a special focus on museums and theme parks. The Liget Budapest Project is expected to bring at least one million guest nights to Budapest annually, according to calculations, while also increasing property investments in its surrounding districts.”

Malaga’s buoyant economy attracts capital

REAL estate investors can look forward to jetting off to Malaga to do serious business in the wake of MIPIM, according to Raul Lopez Maldonado, Malaga city planning councillor.

“All projects related to housing, both public and private initiatives, will be promoted by the Malaga City Council at the next MIPIM. Access to housing in all its modalities and types will be explored, including single family, multifamily, low income, rent free and premium residential,” Maldonado said.

“The requirements of the most demanding demographics will be addressed, including young

people, the elderly who live alone and nomadic technological workers, whose needs have called into question the validity of traditional residential models. Therefore, new solutions for city planning, architecture designs, home devices, smart mobility, waste collection and treatment all offer new opportunities for investors in our city,” he added.

The city of Malaga has been chosen as the regional headquarters for several multinational companies in recent times, including many giants of the tech world, such as Google, Oracle and Vodafone. Maldonado said: “This development, alongside

the city’s extraordinary growth in tourism, has created significant demand for residential and hospitality. All these factors make Malaga an ideal place for real estate investment.”

He added: “International investors today have a wide range of different options, all of them linked to the municipal objective of promoting housing in all its forms. They can participate in the traditional market, developing social or affordable housing for sale; or they can maintain their portfolios and manage different leasing or rental scenarios, not forgetting co-living and co-working too.”

Liget Budapest has won glowing praise

Malaga City Council’s Raul Lopez Maldonado

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ESG becomes defining factor driving investments

ESG has moved from being an important but supplementary part of investment rationale to “becoming the issue that defines whether an offer to buy proceeds or not”, according to John Harcourt, managing director, Kajima Properties. He added: “Anybody not putting reuse first is going to be losing out at the investment stage.” For Harcourt, global factors have accelerated this push, with real estate finally shaking off “any last illusions around the climate crisis”. “This has only been heightened further by 2022’s economic and political crisis,” he notes. “There are also significant opportunities to not just reduce carbon in real estate, but to support Europe’s energy transformation, which will also see a rapid acceleration towards renewable energy generation in the coming years.”

Qatar builds on World Cup success with legacy plans

QATAR-based developer Qatari Diar is building on the success of its World Cup destinations to construct a bright future for the country. Qatari Diar’s Abdulla Al Sayed, chief of sales and marketing, Qatar, said: “Qatari Diar is currently developing over 50 projects in 20 countries around the world. Whilst some projects have received global recognition through prestigious global awards, others are known for their quality and value preposition. Its flagship project Lusail City, Qatar, a smart city, known as Qatar’s City of the Future was a destination to visit during the World Cup, thanks to schemes such as Lusail Boulevard, Lusail Stadium, Al Sa’ad Plaza Towers and Lusail Wonderland on Al Maha Island.”

Al Sayed added: “Lusail City will continue its plans to strengthen its position in Qatar as city of the future and the chief destina -

tion to live, work, and enjoy for its ample services and amenities for everyday life, in addition to being an attractive investment proposition and a major touristic attraction.

“Downtown Lusail includes Lusail Boulevard, the pulsating heart of modern and city lifestyle as well as the main commercial avenue in the city. Its

Greece enjoys tech and data revolution

A TECH and data revolution is driving Greece’s economic transformation, according to Marinos Giannopoulos, CEO, Enterprise Greece. “Thanks to our a digitally literate and outward-looking workforce, global technology firms are transforming Greece into a worldwide cloud computing hub,” he said. “Google has announced it will invest in developing a ‘cloud region’, which is a cluster of data centres, in Greece, with Microsoft and Amazon having made similar announcements. Greece is now

set to be one of the few countries aside from North America to house all three of largest cloud service multinationals.”

The country is also rapidly shifting from conventional to renewable energy sources. A new law, ratified by the Greek Parliament last May, will aim to achieve a carbon-neutral economy by 2050. “Several projects aimed at reducing fossil fuel consumption are planned or underway, particularly those based on Greece’s abundant solar and wind resources.”

natural extension district (Al Sa’ad Plaza) has established itself as primary hub of financial services in the country. Also, The Seef District has solidified its position as the premier waterfront living district. Finally, Qetaifan Island North is becoming a major touristic destination for its key resorts, shopping malls and Meryal Water Park.”

Al Sa’ad Plaza

Kajima’s John Harcourt

Marinos Giannopoulos of Enterprise Greece

Japan will continue to be ‘smart’ investment choice

LOW INTEREST rates and the fall in value of the yen to historic lows has made Japan a magnet for real estate investors in recent times. Although there is some concern as to whether that will change soon, Leonard Meyer zu Brickwedde, president and CEO of Tokyo-based Kensho Investment Corporation, is confident the country will remain a smart investment choice for Europeans. Originally from Germany, Meyer has lived in Japan for almost three decades and for the past two has worked for real estate concerns as a lender and investment advisor, including Kenzo Capital Corporation, which in 2017 launched the first

German special fund for Japanese residential real estate.

“My vision for the last 20 years was to create a centre of competence for institutional investors for cross-border real estate transactions between Japan and Germany-Europe,” Meyer said. “Kensho invests German institutional capital in residential real estate in Japan and at the same time accompanies Japanese investors to Germany and Europe.” Recently, Kensho acquired a rental housing broker called apts.jp, as well as a database for the rental market in Tokyo, both of which allow it to “further refine assessments of the value development of Japanese

residential properties for investors.” As a signatory to the UN’s Principle of Responsible Investment initiative, Kensho’s

Obsolete office stock fights for its future

SECOND-tier offices which do not satisfy occupiers’ demands for high-quality and ESG-compliant spaces “will not survive” the shift underway in the sector, a senior researcher at a leading real estate investment firm has said.

David Hedalen, head of real assets research at Aviva Investors, has warned that owners and developers must adapt to the changes occurring in the office sector or face either the failure of those assets, or a future repurposing of them to other asset types.

Speaking to MIPIM News ahead of this year’s show, Hedalen said that while overall “the office is showing signs of reasserting itself” post-pandemic, the shift in working patterns has placed an underperforming tranche of the sector in danger of falling behind.

He said: “The hybrid working model has compelled employers to offer employees an ‘experience’, and thus compelling property owners to shift their focus to how their tenants or end-users create value.

“Many offices will not survive

this shift, thus over time we expect secondary offices to be repurposed into a whole range of other uses.

“This will not be transforming before our eyes nor will the market move as one, but rather slow removal of suboptimal space from the market as and when the economics stack up to do so.

“Secondary offices were already under pressure owing to the ESG/net-zero push and the challenges in making a retrofit stack up financially.

“The acceleration to hybrid and remote working owing to the pandemic has moved what was already in train for secondary offices forward much quicker.”

investment product, Kensho Wohnen Japan, can be positioned as an Art 9 ESG fund with institutional investors in Germany. Kensho also supports Japanese institutional investors in Europe in co-operation with Germany’s KGAL, and in partnership with German research firm Bulwiengesa.

Meyer hopes to create further connections at MIPIM. “I want to enlighten investors that Japan is decoupled from Europe and the US due to its low-interest policy,” he said. “Under new central bank leadership from April, we will likely see a cautious normalisation of monetary policy in Japan, but it will be a gradual process over several years: Interest cost will go up only after rents can increase in line with healthy and sustainable inflation.”

Kensho Investment Corporation’s Leonard Meyer zu Brickwedde

Aviva’s sustainable FOZ office building in Amsterdam

Gecina explores the social dimension of ESG goals

BUSINESSES are rethinking real estate and using it to win influence, according to Romain Veber, executive director investment and development at Gecina. “For CEOs, real estate has changed from being a cost to a tool to attract talent and demonstrate its CSR strategy,” he said. Gecina began decarbonising its assets in 2008 and has continued to follow an energy sobriety route, Veber said. “Gecina’s strategy is to gradually transform its assets to meet market expectations in terms of quality, services but also CSR footprint,” he said. “Our Dareau project in Paris is a good example of our expertise in repositioning an obsolete office asset into a high-quality residential building composed of 92 units.”

And the environmental focus will continue to be key for all operators, he said. “Office property must continue to accelerate its environmental transformation, which is an important condi-

tion for its social acceptability. Successful investments will be sustainable and energy efficient. Employees are also supporting this transition to resource-friendly and climate-friendly building.”

At the end of 2022, the company launched the restructuring of 32 Marbeuf, a new project in the Paris Golden Triangle which should be delivered early 2025. It will offer 13,000 sq m of prime office space with the best environmental certifications and numerous outdoor spaces, claimed Veber.

“On the operating side, Gecina implemented energy-saving measures last autumn to reduce consumption: 15 concrete actions have been deployed throughout our office and residential portfolios. For the offices, for example, we have adapted heating to the occupancy of the premises; limited hot water in the sanitary facilities and reduced lighting in the car parks, etc.

“These initial actions were successful, particularly at Gecina’s head office where we have already been able to achieve 35% energy savings in S2 2022 compared to S2 2021.”

CapMan plans green revamp of Oslo office

THE CAPMAN Nordic real estate III fund (CMNRE III) has acquired Sorkedalsveien 6, an office property located in Majorstuen, Oslo city centre, from Entra.

The building is fully let to KPMG and Power Norge. The building has served as KPMG’s Norwegian headquarters since its construction in 2001.

KPMG is expected to vacate the property at the latest in June 2026.

The property is in the second largest public transport hub in the area and has 19,300 sq m of space spread over 18 floors. CapMan Real Estate aims to

modernise the building focusing among other things on improving its energy efficiency and targeting a BREEAM inuse Excellent or Outstanding rating. The property is currently certified BREEAM In-Use Very Good.

‘We look forward to developing this asset, creating a modern and attractive office space answering future tenants needs.

The area is expected to become even more connected going forward and I see excellent potential for this iconic asset,’ said Magnus Berglund, partner, head of CapMan Real Estate Sweden and Norway.

Majorstuen is the second largest public transport hub in the area, with around 12 million annual commuters. The nearest subway station and several bus and tramlines are only a two-minute walk away from Sorkedalsveien 6 and a new subway line connecting Majorstuen all the way to Fornebu, a growing residential area, will start running in 2029, further increasing the asset’s connectivity.

The €564m CapMan Nordic Real Estate III fund was established in 2020 and invests primarily in office, retail, and residential real estate in the Nordic regions.

Gecina’s Romain Veber

The Oslo asset is ripe for refurbishment

OpportunityEgypt

Building a sustainable future together

Egypt is delighted to be returning to MIPIM 2023 as conference global sponsor.

2022 was a busy year for Egypt, culminating in the hugely successful United Nations COP27 Climate Change Conference in Sharm El Sheik. It was here that the breakthrough “loss and damage” fund was agreed, which pledges to provide funding to vulnerable countries affected by climate disasters.

Following COP27, British International Investment (BII) announced it would invest more than $100 million in nine solar parks in Egypt, while the European Bank for Reconstruction and Development (EBRD) confirmed it will extend its support to Egypt’s renewables sector, including a $5.5 million loan to TAQA PV for solar energy.

To find out more about the outcomes from COP27, see our programme of events at the OpportunityEgypt Pavilion, C16.

Egypt’s Economy

Global economies have faced significant headwinds over the past year. Like many nations, Egypt has experienced a spike in inflation and a currency depreciation, and is taking positive steps to address these issues. Recent highlights include:

• Egypt is attracting good investor appetite for stakes in its state-owned enterprises amid a government push for partial privatisations following the drop in value of the Egyptian currency, Minister of Planning Hala al-Said told Reuters at the World Economic Forum in Davos earlier this month.

• The World Bank Group’s recent Egypt Economic Monitor report predicts the country’s strengthening resilience through fiscal and education sector reforms.

• Under a deal with the International Monetary Fund (IMF), the Egyptian Government has outlined a reform program that was approved in December. The three main pillars of the program are:

1. A move to a flexible exchange rate regime to help absorb external shocks and rebuild reserves, while gradually reducing inflation.

2. Continued fiscal discipline and policies to maintain market confidence, increase transparency and expand on social spending.

3. A structural reform agenda to promote private-sector investment and secure strong and inclusive economic growth, by reducing the role of the state in generating economic activity.

Delivering on our promise

Last year, Egypt made significant progress on the New Administrative Capital, New Alamein City and the 15 new cities that form part of President Abdel Fattah Al- Sisi’s Vision 2030 development plan. Delegates at the OpportunityEgypt pavilion would welcome conversations on inward investment, partnerships, consultancy advice and supply chains.

Opportunities

Education – Each year, 1 million educated and trained young people enter the job market in Egypt, ensuring sustainable and progressive growth in its economy. Some 1.4 million additional student courses are required in Cairo alone.

Energy – Egypt has confirmed nine green hydrogen projects since May 2022, which will make it the world’s second-largest producer of hydrogen. Of the $100 billion investment, more than 53% is from Middle Eastern and European investors.

Infrastructure - Some $100 billion of infrastructure contracts have been awarded to Egyptian contractors. They are now actively looking for partners with expertise to deliver these projects.

European private healthcare providers are well-respected brands. The UK’s National Institution for Health and Care Excellence is already active in Egypt and there are opportunities for further partnership.

The Egyptian Government has committed to expanding its influence in construction across Africa and the Middle East and state champions such as ORASCOM are looking for expansion partners across Africa.

4.5% GDP Growth 2021-22 $16.5b Net direct foreign investment 2024-25

No2 Arab economy

Source: International Monetary Fund IMF

What’s on offer during MIPIM 2023 OpportunityEgypt will run informative and varied panel sessions at the OpportunityEgypt Pavilion and in the Palais de Festival during MIPIM. These sessions will give an overview of the market and the opportunities it presents to investors, developers, operators and suppliers. The Egyptian Government and developers will showcase many ground-breaking projects at the Pavilion and we invite you to explore all the exhibition has to offer.

Egypt is very much open for business and we invite you to partner with us in Egypt’s next chapter. Please visit OpportunityEgypt at stand C16 and www.opportunityegypt. com for further information about the OpportunityEgypt Pavilion, the exhibitors and breaking news stories about Egypt and Egyptian real estate.

“Egypt remains a top investment destination given the recent pace at which the economy has grown, supported by structural reform programmes,” according to RMD.

Professor Jeremy Rifkin will address the importance of innovation in the transformation of the built environment towards a more sustainable model. Best known for his influential work on the third industrial revolution, for which he is an advisor to the European Union, he will discuss the effects of scientific and technological advancements on the economy, society and the environment.

Tuesday 14 March at 3:00 pm

14-17 MARCH 2023

CANNES, FRANCE

MIPIM 2023 Better Places. Greater Impact. Stronger Business.

Grand Auditorium

Professor Jeremy Rifkin to give opening keynote speech at MIPIM 2023

Cities of character

As young professionals choose social and geographical mobility, while remaining ever-more discerning, they are placing increased emphasis on the personality of place, Mark Faithfull reports

hile a place may be its people, not all real estate development has been sympathetic to the needs of its citizens. Cities designed around car transport are just one example of previous urban planning ideologies that have ultimately left residents feeling isolated within their own communities. Those citizen-excluding standards are neither socially desirable nor investment-friendly in the current age and increasingly major investors are rating the attractiveness of urban investment on far more than financial metrics, evaluating locations on a range of

Whard and soft parameters to determine value.

And no wonder, given the largescale trend of urbanisation. Currently, around 55% of the global population resides in cities, however by 2050 this number is set to increase to 68% or 2.5 billion additional city dwellers. This trend is especially prominent in emerging markets, notably China, India and Nigeria.

As a result, the way cities are designed and engineered will have to be reassessed, with those who are already part of the community playing a far greater role in decision-making.

“Citizen participation must not

be a label, an attribute or just a moral or legal obligation. There needs to be a true willingness and ability to engage in dialogue on the part of both the initiators and the citizens. It needs resources and a clear goal and framework to be set, a dialogue of equals, as well as transparency, commitment and reliability,” says Jean-Xavier Foidart, who is responsible for development at Luxembourg-based developer Agora.

Agora is helping the Luxembourg State, ArcelorMittal and the municipalities of Esch-surAlzette and Schifflange convert the former industrial site of Esch-Schifflange into a new urban district called Belval and,

Agora’s François Dorland

Citizens increasingly want to see their dreams and goals reflected in the cites they inhabit

[image credit]

© Luke Hayes

Foidart says, all partners were keen to involve locals from the outset in October 2020.

Foidart believes there are numerous best practices for citizen participation, from online discussions to participatory workshops at various planning phases and longer-term committees that accompany an urban development process.

“It is certainly a mix of well-chosen and co-ordinated formats that accommodate the differing needs of citizens and ensure that as many interests, opinions and ideas as possible are well represented in the process; diversity instead of multiplicity is the motto here,” says Foidart. “The challenge will always be to also hear the quiet voices or the voices of the groups not inclined to become involved and, above all, to adopt today the perspective of the users of tomorrow.”

ment to prioritise city centres and back projects with substantial public funding.

All in all, there are proposals to redevelop 20 UK areas in the mould of the regeneration of Kings Cross and Stratford in London and the Centre for Cities and Aviva argue that to achieve this, the UK government needs to facilitate substantial public investment to kick-start projects. Centre for Cities estimates that for every £1 (€1.14) the public sector contributed, £5 of private sector investment can be unlocked.

“As a major UK institutional investor, companies like Aviva can play a big role in helping such regeneration succeed. We can accelerate the transition to a low-carbon, sustainable economy,” says Aviva chief executive Amanda Blanc. “And the investment can lead to long-term, reliable returns.”

In addition, funds are increasingly focusing their future plans on so-called ‘impact investment’.

Among these, in May last year Nuveen Real Estate announced the launch of a global impact investing sector strategy, with growth goals of up to $15bn (€13.9bn) in real estate assets under management (AUM) by 2026, including the German living impact platform.

CONFERENCES & EVENTS AT MIPIM 2023

PARTNERSHIPS ENABLING EARLY REGENERATION THROUGH IMPACT PROJECTS

WEDNESDAY, MARCH 15, 10.00 - 10.45

– Make It Happen Stage

sation,” says Nadir Settles, global head of impact investing, Nuveen Real Estate. “We see an opportunity to scale our strategy and leverage our leading position to support tenant well-being and create a more sustainable future.”

Indeed, awareness is growing that the built environment can have a significant social impact through efforts that rehabilitate public spaces, add required infrastructure, or help attain environmental goals with green buildings, according to Julia Georgules, JLL head of Americas research and strategy.

“The impact that development can have on a community is immense, and with a spotlight on ESG, these investors and builders must think about a broad range of social impact, from affordable housing to providing jobs to a diverse population,” Georgules says.

“It’s a must now.”

Mark Callender, head of real estate research at Schroders, adds that consolidating retail in city high streets also provides an opportunity to create more housing in town centres and increasing the variety of jobs and other amenities, which should also encourage people to walk, or cycle, rather than travel by car.

At the heart of any successful regeneration, an effective public and private partnership is vital, according to the UK-based research body Centre for Cities and investor Aviva.

Citing the UK government’s pledge to pursue a ‘levelling up’ agenda that brings an economic boost to the country’s Midlands and North, with plans to deliver King’s Cross-style regeneration projects across the country, the bodies have called on the govern-

Specifically, Nuveen says the mandate is designed to improve communities by providing supportive services, enhancing residents’ quality of life and financial outcomes, and ensuring affordable, sustainable and climate safe housing.

It will invest in early-stage projects and take an impact-led approach to increase the supply of social and affordable housing by targeting low-income and disadvantaged populations, while also focusing on regeneration projects within healthcare, education, and transportation services.

“We are going beyond just affordable housing to focus our attention on community revitali-

REENERGISING CITIES FOR THE FUTURE

WEDNESDAY, MARCH 15, 10.15 - 10.45

– The Leaders’ Perspective Stage

WHAT CITIES OF THE FUTURE WILL LOOK LIKE

WEDNESDAY, MARCH 15, 16.00 - 16.30

– The

Perspective Stage

“The aim of increasing people’s opportunities without requiring them to travel more makes a lot of sense,” he says.

However, he warns: “Redevelopment plans must also clearly benefit local communities, seeking buy-in as well as input. Another key and often overlooked factor is leadership and trust among local councillors, business people, academics, non-profit organisations and other stakeholders.”

Indeed, for the next generation of urban retail it is the ability to create bridgeheads that connect different groups and interests that will be key to making a positive impact and creating real estate projects that are attractive investments in the longer-term.

Leaders’

In Luxembourg, this former industrial site is being transformed into a new urban district called Belval

“The challenge will always be to also hear the quiet voices or the voices of the groups not inclined to become involved, and to adopt today the perspective of the users of tomorrow”

Jean-Xavier Foidart

Net Zero’s winding route

While the road to net zero looks long and winding at times, the real estate industry can stand tall as it ramps up its ESG commitments, reports Adam

Branson

hen it comes to climate change targets, people tend to talk about the ‘road’ or ‘pathway’ to net zero. This, however, is problematic. Both words indicate something that is solid and that can be easily navigated. Unfortunately, that isn’t actually the case at all.

Nobody doubts that great progress has been made on at least facing up to the challenges involved in hitting net zero operational carbon by 2030 and net zero embodied carbon by 2050 targets. But to date, no major real estate market in the world has ei-

Wther a self-imposed roadmap or a clear regulatory trajectory. Despite this, there is broad agreement that the upper echelons of the property industry are currently ahead of government when it comes to their environmental responsibilities.

In January the World Economic Forum (WEF) announced that leading CEOs from across the industry had come together to pledge to reduce real estate carbon emissions by 50% by 2030 and hit net zero no later than 2050. The companies involved included Avison Young, JLL, Edge and Ivanhoe Cambridge.

“While real estate represents nearly 40% of all energy-related

GHG emissions, the sector is frequently an afterthought when it comes to an organisation’s decarbonisation and sustainability strategies,” says Matthew Blake, head of financial and monetary systems at the WEF.

By making the pledge, the companies promised to implement the WEF’s Green Buildings Principles, which were released last year and involve a range of steps, from calculating a robust carbon footprint to minimising direct emissions to influencing supply chains’ and other stakeholders’ behaviour.

“More sustainable real estate is essential,” says Coen van Oostrom, founder and chief

Ghelamco’s Jaroslaw Zagorski

Ghelamco’s Warsaw Unit office building has achieved a BREEAM Outstanding rating

executive officer at Edge. “The principles offer a clear roadmap to help all building stakeholders tackle their emissions and deliver better buildings. The world deserves better buildings and it is entirely possible to significantly reduce the impact of both existing and new buildings.”

Another standout initiative is the Net Zero Carbon Buildings Standard (NZCBS), the purpose of which is to set out a single agreed set of performance targets for different asset types. In addition, the project, which is being chaired by Argent Related’s David Partridge, will enable landlords that claim their buildings are net zero carbon to prove that to be the case. The latter would be of great assistance to investors, among others. Elsewhere, individual companies are taking great pride in their carbon reduction initiatives. One such company is Polish developer Ghelamco, which at the start of the year became the first real estate company in Poland to join the international Science Based Targets initiative.

to achieve energy neutrality. The initial idea is to provide clean energy to its Warsaw Unit skyscraper, thereby reducing emissions by more than 50% over the building’s lifecycle.

“Proprietary photovoltaic farms are one of the key elements of our ESG strategy, along with a range of solutions such as smart energy management systems and the use of low-carbon building materials,” says Jaroslaw Zagorski, commercial and business development director at Ghelamco. “Becoming independent of conventional energy and turning to clean energy from renewable sources is not only ecological, but also essential for the uninterrupted operation of the business.” For many the missing link is consistent support from the public sector.

“There is actually a desire for more regulation, not less of it,” says Lisette van Doorn, chief executive, Europe, at the Urban Land Institute. “And that is really interesting because this is the first time, the first topic, where the industry is asking for regulation because it provides a level playing field. You’d know what you’re expected to do, you’d know when you need to do it and we’d all be following the same rules.”

So far as Darren Berman, head of sustainability services, EMEA, at Cushman and Wakefield, is concerned, it is only a matter of time. “Emissions have been growing year on year and so the policy shifts that we’re going to see are going to be extreme,” he says.

CONFERENCES & EVENTS AT MIPIM 2023

ACCELERATING PROGRESS TO A NET ZERO CARBON FUTURE

TUESDAY, MARCH 14, 14.00 - 15.00

– Road to Zero Stage Sponsors: Prologis, The Instant Group Co-organised by ULI C Change

BUILDING THE BUSINESS CASE FOR DECARBONISATION

WEDNESDAY, MARCH 15, 9.45 - 10.45

– Road to Zero Stage

PROPERTY’S RESPONSIBILITY ON SUSTAINABILITY

WEDNESDAY, MARCH 15, 11.30 - 12.00

– The Leaders’ Perspective Stage

BUILDING INVESTMENT LEADERSHIP FOR CHANGE

THURSDAY, MARCH 16, 11.30 - 12.30

– Road to Zero Stage

with some parts of the problem but not others. The lack of coordination is deeply unhelpful, especially for companies that operate across jurisdictions. In the UK, for example, there are regulations in place requiring progressive improvements to energy efficiency in commercial buildings, but the government has not yet come out with a carbon tax. In Germany, the opposite is true.

So, truly co-ordinated action looks unlikely, but there are some hopeful signs. “Across the globe, building policy is showing signs of ratcheting up in line with industry potential, embracing the energy transition and introducing codes to improve building performance,” says Cristina Gamboa, CEO of the World Green Building Council. “For example, at the beginning of 2022, a coalition of 33 US states and local governments was announced by president Joseph Biden, with aims to reduce building emissions within their respective jurisdictions through roadmaps, policy creation and forming a community of best practice. This represents a hugely significant milestone.”

According to Gamboa, the coalition represents around 20% of the US’ building stock, which of course leaves 80% uncovered. Elsewhere, comprehensive rules around carbon reporting are in the works in the EU, but still need to be translated onto individual members’ statute books. History tells us that a lot can be lost in translation.

The announcement followed years of work on reducing carbon emissions in Ghelamco’s buildings. For instance, last year the developer announced that it had completed the construction of the first of three photovoltaic farms as a part of a programme

“There will be a proper tightening of legislation to actually drive reductions in emissions. Governments have not done that yet across Europe. The second thing will be a real tightening of climate related risk legislation coming through and we’re starting to see that for financial participants — for listed organisations.”

As things currently stand, some governments are getting to grips

For now, then, it is up to the private sector to take the initiative, while at the same time continuing to lobby for better, more co-ordinated regulation. Fortunately, many of the biggest developers, landlords and investors, among others, are finding ever more innovative ways to cut carbon and coming closer to making net zero by 2050 a reality for real estate.

“Turning to clean energy from renewable sources is not only ecological, but also essential for the uninterrupted operation of the business”

Jaroslaw Zagorski

The ULI’s Lisette van Doorn

#FromLebanon2MIPIM

Job market: wide reach in the real estate industry & HR

haufe job market

You will nd the tting jobs in the sectors of real estate, housing industry, nancing, HR and much more. www.stellenmarkt.haufe.de

Connect with the Leaders of real estate

Prepare your MIPIM and start networking!

• Identify the people you wish to meet, among more than 20,000 participants.

• Organise your schedule prior to an event with very busy exhibitors.

• Set up your meetings in advance with demanding visitors who don’t have any stand.

• Showcase, detect and identify real estate projects and funds.

Investor strategies evolve

Macroeconomic headwinds may have complicated the outlook for real estate investors, but smart asset management and an eye for deals should carry them through, writes

Isobel Lee

As the real estate industry wistfully looks in the rearview mirror at a receding decade of cheap debt and yield compression, the investor consensus is that the age of active asset management has arrived. But in an environment of macroeconomic headwinds, encroaching recession, and the spectre of stagflation, what will that mean?

Andy Poppink, markets CEO, EMEA at JLL, says: “We think there will be both opportunities and challenges ahead. For

well-capitalised investors that have witnessed such cycles in the past, there will be tremendous opportunities. For those that have placed themselves under greater pressure in the near term, it may be a bit more challenging.”

“In the short-term, investors need to manage the balance of higher inflation and the probability of a mild recession,” Stefan Machler, group chief investment officer of pensions and financial services provider Swiss Life, says.

“The latter must be incorporated in business case scenarios, especially in office, retail and logistic

investments. All this requires active asset management.”

Machler adds: “Long-term investors consider market movements as part of the business plan, and so do we. A highly diversified portfolio across sectors and countries bolsters the ability to outperform regardless of the macroeconomic environment.”

For Machler, active asset management involves both bringing the existing portfolio up to scratch and scrutinising the overall balance of a firm’s holdings — encompassing both an attention to matters of ESG alignment

Operational asset classes such as student housing are attracting funds seeking improved margins

and “diversifying portfolios further where possible with critical stock selection”.

Swiss Life has committed to reduce the carbon impact of its direct real estate portfolio by an ambitious 20% by 2030, but achler believes this target is feasible. “With 26 kg of CO2 equivalent per square metre or carbon intensity, our starting point is already well below the global net-zero path of the real estate sector. To reach our target, we plan cumulative investments of €2bn capex by 2030.”

Another key aspect to managing property portfolios is refining

and how revenues as well as operating costs are being generated to meet target returns. In residential, we are also seeing an increase in expectations around amenities which can help differentiate the offer, although potential rent rises in Continental Europe are often limited by rent controls.”

One way of achieving greater client satisfaction is via digitising processes, says Charlie Wade, managing director EMEA at proptech firm VTS. The VTS platform comprises leasing, asset management and marketing tools for landlords built on crunching data across their property portfolios. “Happy customers tend to be loyal to a brand or building and are less averse to an increase in rent over time,” Wade says. “Technology isn’t the silver bullet, but it will be a part of assisting asset managers with the insights and workflows that will enable them to do more for their tenants.”

tenant relations, to make sure that vacancy is minimised as recessionary risk rises, notes Laurent Lavergne, global head of asset management & development at AXA IM – Real Assets: “Actually, there has been an increased focus on asset management since the beginning of 2022, but we probably didn’t anticipate that yield decompression would happen so fast,” he says. “Today, tenants have greater service expectations and a desire for flexibility right across the board. We saw changes in the retail real estate industry in the past in line with this trend — now it affects nearly all asset classes.”

Lavergne adds: “Take hospitality, which has moved from a focus on fixed rents to management contracts. If you are entering a management contract, you must understand how the hotel works

Adds Poppink: “The industry is based around tenant demand, which ultimately fills the space and creates returns. We had a surprisingly resilient year in the leasing markets in 2022. That story has become a little bit lost of late as we saw such a swift ramping up of inflationary impacts on the capital markets and investment volumes towards the end of 2022. But we are seeing the occupier market holding up quite well — interest rates do have an impact, but they are not immediate.

“Looking at the investor side, the cost of finance and the outlook for yields has created pricing disparity, and we are starting to see price discovery with some solid footing emerging in key markets. This is going to happen at different speeds in different territories and asset classes, but we believe that by the second half of 2023, investors will feel that they have enough terra firma to make investment decisions, even if uncertainty remains.”

CONFERENCES & EVENTS AT MIPIM 2023

Finally, the smartest investors should combine objective pragmatism with a “ready-for-anything” attitude, according to a new “tail-risk” report from PGIM. The survey of 400 senior investment decision-makers at institutional investment firms in Australia, China, Germany, Japan, the UK and the US, found that while tail-risks varied by region, the predominant concerns centre around the relationship between the US and China, market function in times of stress, and the dependence on technology within financial markets. While over half of large institutions actively monitor tail-risks, overall for institutions of any size, less than four in 10 do so (38%). A tiny proportion (3%) of institutions have a dedicated tail-risk manager, and less than a third (32%) prepare specific risk response plans.

“Too often investors are surprised by things that in retrospect were staring them in the face,” says Shehriyar Antia, head of thematic research for PGIM. “The pandemic, the global financial crisis, the dot-com bubble — these events were all foreseeable to different degrees. Financial institutions must either gameplan for the unexpected or expect to be blindsided.”

Machler says: “At the end of the day, the fundamentals of real estate basically remain unchanged. We are still observing ongoing rental potential, low supply in logistics, demographic changes in healthcare, high employment to support office demand, and urbanisation facing low residential supply. Technology, demographic change and sustainability are secular shifts that are altering the real estate markets.

“Variance in real estate performance is likely to become even more pronounced in the years to come. This offers the opportunity to be on the right side of these trends and implement a more nuanced strategy.”

ULI: EMERGING TRENDS IN GLOBAL REAL ESTATE 2023 TUESDAY, MARCH 14, 14.00 - 15.00 – Leaders’ Perspective Stage Organised by Urban Land Institute

JLL’s Andy Poppink

Swiss Life’s Stefan Machler

“For well-capitalised investors that have witnessed such cycles in the past, there will be tremendous opportunities”

Andy Poppink

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Safe as houses

As real estate investors and developers seek to extend their provision of residential accommodation in 2023’s challenging environment, the path to rental growth is likely to be more complex. Despite this, several firms are convinced that the asset class is still a rewarding and worthwhile opportunity.

Annette Kroeger, CEO Europe, Allianz Real Estate, says: “The sector’s inherent resilience is very attractive to a long-term-oriented investment manager. This stems from the diversified tenant base, the reliable income stream, and the favour-

able demand-supply dynamics.”

“We see value in all the subsets of residential and living,” says Laurent Lavergne, global head of AXA IM Alts. “Clearly, rents are highly regulated in Continental Europe, where most of our multifamily properties are, as it is a politically sensitive asset class addressing a basic human need. That means it is less easy to pass on inflation growth. But we do see a way forward in making our residential portfolio as efficient as possible in terms of energy performance.

That helps address the affordability issue and means that even if we can’t raise cold rents, we have a little more leeway with

hot rents. It also contributes to our overall goal to decarbonise our portfolio.”

While residential investment proved a star performer at the height of the pandemic, as its ‘safe haven’ dimension became even more psychologically important, the worsening of macroeconomic headwinds in 2022 has dented the housing market and brought affordability issues to the fore. If, on the one hand, interest rate rises have boosted the prospects for landlords offering rental homes, as wouldbe house buyers stall mortgage plans, energy bills and the proportion of salaries spent on rent have clouded the outlook

Investors are homing in on the rewards of residential property and its subsectors, including student housing and co-living, reports Isobel Lee

AXA IM Alts moved on a modern Madrid residential portfolio last year, which includes six multifamily assets

AXA IM Alts’ Laurent Lavergne

for tenants. Kroeger adds: “The sector is not without challenges. Residential assets are very intensive to manage and, to overcome this, we apply a mix of solutions across our portfolio. In addition, as a long-term-focused manager, we need to balance capex requirements with rent affordability.” Meanwhile, in an industry striving for greater environmental, social and governance (ESG) alignment across its portfolios, the social dimension presents a potential conflict of interest in terms of targeting both profitability and tenant wellbeing. In the recent Emerging Trends Europe 2023 report penned by ULI and PwC, one real estate lender flags the hypocrisy risk in residential ownership: “If you have a business plan where you set rent increases of 10-20%, that makes total sense from an economic point of view, but can that still be called ‘social’?”

One solution for real estate funds has been to simply buy into the social side by upping the provision of affordable hous-

cally, but social housing, particularly in Germany, is heavily regulated meaning there is little room for interpretation of the rules, which makes it a much safer investment reputationally.

“It is also a way through which institutional investors can contribute to the demand-supply imbalance that many cities are facing. It is for these reasons we made our first acquisition in the sector in 2021, the forward investment into the social housing portfolio in Nuremberg, and we would be keen to do more portfolio investments.”

ing, accepting that rent rises will be low but that the overall covenants are strong — and that ownership boosts a firm’s ESG credentials. Kroeger affirms that social housing is extremely interesting for Allianz Real Estate. ”There are some markets where institutional ownership of residential stock is viewed scepti-

Another approach to the issue of sluggish rent rises in residential is to concentrate on the living asset class’s subsectors, where rents are less heavily controlled. Purpose-built student accommodation (PBSA) is top of the list for many as a clear counter-cyclical play with attractive supply-demand dynamics. Last year, a tie-up between two European leaders in the sector, Antwerp-headquartered Xior and its peer Basecamp Group, created the region’s largest student housing platform vaunting a portfolio worth €3.7bn with a total of 26,526 units across eight countries. Basecamp co-founder Armon Bar-Tur said at the time of the merger: “We want to conquer Europe, but we want to get there methodically. All our markets are growing and have also benefitted from Brexit and the further expansion of the Erasmus programme, allowing European universities to shine even further.”

Lavergne adds: “With PBSA, we can leverage the fact that it has been historically undersupplied. By adding a significant operational component, and working closely with universities, it is quite interesting. You usually offer students an all-in price, but there is an opportunity to pass

CONFERENCES & EVENTS AT MIPIM 2023

MIPIM CO-LIV SUMMIT

MONDAY, MARCH 13, 13.00 - 22.00

– Grand Auditorium & VGA

In partnership with Co-Liv

THE RESIDENTIAL WORKSHOP

WEDNESDAY, MARCH 15, 10.00 - 13.00

– Asset Class Stage

Sponsored by Blueground

REALISING AFFORDABLE & SUSTAINABLE HOUSING

WEDNESDAY, MARCH 15, 15.15 - 16.00

– Make It Happen Stage

through inflation and adjust rents to protect your cash flows.” Another subsector of residential which AXA IM Alts is exploring is co-living. For Lavergne, there is clearly an “overlap” between student housing and the needs of young professionals in urban areas, many of whom would like to continue with an amenity-rich, hassle-free rent formula after they graduate. “While it is likely to remain a niche for us, we think that co-living will also continue to benefit from the increased mobility we have seen in the wake of the pandemic. Workers are not living as close to the office as they used to but may need a hybrid solution in cities for part-time use. This kind of product is closer to hospitality but has more in common with PBSA due to the demographic profile of the recently graduated, young professional residents that are primarily attracted to it.”

At the end of 2019, AXA IM Alts acquired France’s Groupe Kley, an integrated student housing and co-living operator, and 2023 will be a year of growth for this business line. “We’ll be launching the first Kley co-living asset in 2023,” Lavergne confirms. “It’s an interesting segment which also has synergies with Kadans, our life-sciences platform, where we see both the campus universities requiring accommodation for their students and a lot of growth industries seeking to offer accommodation to their graduate workers to boost their employment package.”

Another major mover in co-living is Ivanhoe Cambridge, which became the largest institutional investor in Brussels-based Cohabs during a funding round in December. Cohabs has now lined up around €450m of capital to continue its global expansion beyond the 1,550 rooms it currently manages in Europe and the US.

Allianz Real Estate’s Annette Kroeger

High-end residential, like this scheme in the Hague, is capturing investor interest

“Residential’s inherent resilience is very attractive to a long-term-oriented investment manager”

Annette Kroeger

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workplace levels up The

hen location data analyst firms Placemake.Io and Visitor Insights released the findings of a major study into UK high street and city centre footfall in January this year, the results were striking.

City centres, and the offices in them — footfall data clearly showed — are mainly being used on Tuesdays, Wednesdays and Thursdays, with significant drop-offs on Mondays and Fridays — roughly 50% in the City of London. The conclusion: more people than ever are travelling into the office midweek,

Wand working from home either side of the weekend.

Commenting on the findings, LandSec chief executive Mark Allan was clear about what it all meant. “We’re not going back to how things were pre-COVID,” Allan told the BBC. “We certainly believe there are going to be fewer people in offices for the longer term and we are planning accordingly.”

But how? What plans can be made, and what changes need to take place, to adapt to the world of work as it has emerged from lockdown?

It’s the million-dollar question for real estate investors, owners, and occupiers with an interest

in the office sector. And it’s one which comes with a host of other considerations — chiefly concurrent shifts towards more sustainable and, with energy costs so high, energy-efficient office buildings, and changing expectations among the people who work in them.

Despina Katsikakis, executive partner and global head at Cushman & Wakefield’s Total Workplace division, says that while the pandemic was a significant catalyst, pre-2020 there were already shifts towards the “flexibility and choice” that office workers now expect as standard. She adds: “Pre-pandemic actually office utilisation was 50% of

As the dynamics of office use continue to evolve, landlords and occupiers are exploring new ways to make the most of the space, Benedict Cooper reports

Cushman & Wakefield’s Despina Katsikakis

NREP’s Woods Augusthus scheme in Copenhagen seeks to respond to the needs of its users

the working week. There was an under-utilisation. What’s happened post-pandemic is demand for flexibility from employees. That’s been the significant shift that we need to be aware of.

“94% of employees from our surveys expect flexible hours and scheduled flexibility, including flexibility of location. Hybrid’s here to stay.”

This is one of the major trends in the way occupiers, and employees, view offices. Another, knock-on effect, says Toke Clausen, partner and head of office investments at Copenhagen-based NREP, is that when people are in the office, they are expecting to find a better envi-

meaning flexible leases, where necessary — and spaces which those occupiers can use to entice increasingly-demanding talent.

Added to this is that standards haven’t just gone up in terms of the aesthetics, or amenities, of a building. In line with wider society, occupiers have woken up to the importance — and the need — for the buildings they lease to be sustainable, and not part of the climate crisis problem.

One of the highlights of this year’s MIPIM will be the release by non-profit research and education group ULI, the Urban Land Institute, of a major global report into the real estate industry’s role in decarbonisation.

ULI Europe chief executive Lisette van Doorn says that the trend to more ESG-conscious building design isn’t just driven by moral responsibility — there are financial incentives as well, which in an era marked by economic uncertainty, are in the balance. “The [energy crisis] triggers the business case to transition those inefficient buildings much, much quicker,” van Doorn says.

ronment waiting for them. He says: “Occupiers are to a larger extent looking for quality office space that can help draw their employees into the office.

“One of the key fundamentals in office development is simply to create a space where people actually want to work and that’s worthy of their commute — this means a strong emphasis on interior design, ambiance, services and amenities alongside the latest technological solutions.”

This leaves office owners with a two-fold challenge. They must provide spaces that occupiers can use both in a flexible way to suit hybrid working patterns —

One of London’s largest new office developments, the Paddington Square project, led by Sellar, has been in the planning and construction since long before the pandemic and the most recent advances in workplaces trends.

As such, says Jonathan Ring, senior development executive at Sellar, the developer has had to adopt a flexible approach amid the “sea change”, and involve their prospective tenants at every stage of the process, not least over their expectations around ESG.

“There’s been a sea change in occupiers’ demands,” he says. “All office occupiers have appointed ESG teams to assess the [building’s] criteria before accepting heads of terms.

CONFERENCES & EVENTS AT MIPIM 2023

“It’s becoming more of a requirement rather than a want. If we weren’t able to answer those questions I don’t think we would have secured those tenants.” This point alone illustrates just how crucial it is for developers and investors to get it right — leases are now at stake. And this is even more of a concern for owners of older properties which require huge levels of investment just to be brought up to standard.

With cost-pressured occupiers looking seriously at the viability of their leases on a number of criteria, what does that mean for the under-performing assets?

Serge Fautre, chief executive of Brussels-based AG Real Estate, says that this complex challenge is leading to a bifurcation in the Brussels office market between assets that meet the high bar and those that don’t.

He says: “The supply currently available in Greater Brussels is less than the demand and has created a two-speed market: a market for offices that require heavy renovation and a rapidly growing market for offices that tick all the boxes, including hyper-location.

“Creative thinking and solutions will have to be found by carrying out feasibility calculations depending on the asset class of the project and might generate a capital loss.”

Above all this will concern office sector owners wherever they are. After all, most buildings are ‘old’ — meaning not brand new developments — and by definition all will need refurbishment, perhaps repurposing altogether, in time. The office is being reinvented, and in the process the bar is being raised, continuously it seems, as socioeconomic trends unfold. It is no longer merely desirable to aim higher to meet it, but a question of survival that the whole sector needs to address.

INVESTMENT IN THE NEW WORKPLACE WEDNESDAY, MARCH 15, 10.00 - 10.45

– London Stand Stage

THE OFFICES WORKSHOP THURSDAY, MARCH 16, 10.30 - 13.00

– Asset Class Stage

AG Real Estate’s Serge Fautre

NREP’s Toke Clausen

“94% of employees from our surveys expect flexible hours and scheduled flexibility, including flexibility of

location.

Hybrid’s here to stay”

Despina Katsikakis

Italian Pavilion | Stand R8.A20

www.investinemiliaromagna.eu

Boxing clever

As values start to shrink across the logistics landscape, has the pandemic’s star performer finally had its day? Not quite, according to leading investors and developers in the sector, buoyed by its occupational and supply-side metrics. Panattoni, the largest industrial developer in Europe, expanded into Sweden in 2022, its 13th European country. Says founder and CEO, Robert Dobrzycki: “Today we are highly diversified, demand wise and capital wise.” Furthermore, some pandemic-era fundamentals, such as industry decoupling from China in the light of a broader deglobalisation shift, have remained in play due to conflict in Europe. “The reshoring and nearshoring trends are still very strong as compa-

nies continue to shy away from geopolitical risks to their supply chains. The manufacturing shift back to Central and Eastern Europe is really taking hold, so even if e-commerce is relatively lower compared to pandemic-era peaks, the demand side remains incredibly strong,” he says. Dobrzycki recognises that lowering capital values caused by macroeconomic headwinds are also affecting developers, but suggests that firms as strong as Panattoni will be more capable of riding out the storm. “Uncertainty around where prices will land has slowed transactions, so there is potentially less liquidity for the product we are building. But once valuations and the interest rate environment stabilise, all the money which is allocated to the asset class — which is still very

significant — will come back even more strongly than before.” He adds: “We are starting to see some signs of stability already — some deals are closing at lower prices — and these are the first signs of the market returning to life.”

For Rory Buck, managing director of Clarion Partners Europe, part of US group Clarion Partners, developing logistics assets isn’t the main focus right now, but the firm remains sold on the sector’s fundamentals. “We feel we are currently at a point where we don’t need to take as much development risk before the correction and see a real opportunity to buy standing assets at a compelling cost basis,” Buck says. “Given where yields have moved to on existing stock, we see op -

Although logistics has now entered the price discovery phase, much like the rest of the real estate industry, investors still see sizeable opportunities in the sector, according to Isobel Lee

Ingo Steves, Beos Logistics

A recent, sustainable Panattoni scheme situated in the logistically strategic city of Borehamwood, UK

portunities to buy buildings at below their replacement cost. We are also seeing some developers trying to sell schemes at prices below their all-in costs.” He notes that this dynamic is emerging as liquidity issues arise, or due to a greater realism about value shifts. However, Buck sees ongoing stubbornness in the transactions market. “There’s an emotional aspect to accepting that values have fallen, and not all sellers are there yet,” he says. “Landlords on the whole have low leverage versus 2008 and there’s not much distress around. However, as the months tick on, some funds will be facing refinancings, or redemptions, so may well have to choose between equity injections to stabilise portfolios, more expensive debt or selling assets.” In this climate, Buck sees perhaps the most potential in the

sumer spending is impacting the expansion plans of logistics tenants, the development pipeline is also reducing due to the current economic climate, and this will offset sluggishness in take-up to a certain extent. We also anticipate more sale and leaseback transactions in 2023 as corporates monetise assets on balance sheet to offset reduced access to affordable debt.”

UK market, due to its liquidity and the fact that values have adjusted more quickly compared to Continental Europe. “The continent will get there eventually, but the UK is a very transparent market, and that availability of information means that vendors have become much more realistic about prices more quickly,” he says. However, Buck says that the firm’s Continental European portfolio is also quite well protected due to the presence of index-linked leases — he reports that in the Netherlands, some rents will be undergoing double-digit rises. “Although con-

Another logistics-focused investor, Valor Real Estate Partners, continues to find opportunity in its chosen niche of last-mile and urban infill assets. “Logistics is in the price discovery phase, along with the rest of the real estate sector, and is not immune to the broader cap rate and capital market movements. But on a relative basis, it remains compelling,” says Christian Jamison, managing partner of the firm. “Occupational metrics are good in our principal markets of London, Paris and Berlin, particularly due to the relative lack of new supply on the horizon.” Valor is still doing deals due to its granular and often off-market approach, using lower-than-replacement-cost as a guideline for “pulling the trigger in favoured locations”. “We are in the fortunate position to be able to take our time and be selective. As well as focusing on capital cities, we continue to see potential in secondary cities such as Manchester and Birmingham, Lyon, and Germany’s big five. We are also now looking at the Randstad region in the Netherlands which is interesting now that prices are adjusting,” Jamison adds.

A big part of the challenge as a last-mile landlord involves tackling the environmental profile of urban assets to improve their efficiency and emissions. “Knocking down old buildings is a fast route to creating greener stock but has such a carbon impact. We are trying to repurpose and increase the longevity of existing buildings to make them as ESG-compliant as

possible,” Jamison says. Whereas a few years ago, there was less scrutiny of the industrial sector’s green credentials, Dobrzycki thinks that the asset class has virtually caught up with the rest of the industry today and is setting an example in some areas. “It’s more and more important for us to be ahead of the curve,” he says, “as new regulatory requirements are always around the corner. As a developer, you can have a significantly negative or positive impact on the environment; as we build so much space, that becomes a major responsibility. Equally, corporate occupiers now have this issue front of mind so there is a shared desire to do better.”

Ingo Steves, managing partner Beos Logistics, agrees that further legislation surrounding ESG-alignment in the logistics sector will contribute to its resilience. “An overarching trend is that ESG-compliant logistics properties in general will become the focus of investors. Properties that can contribute to energy self-sufficiency by generating non-fossil energy and even feed surplus energy into the power grid are likely to become even more attractive. For 3PLs, e-commerce companies, manufacturers and trading companies it is crucial to partner with investor/developers at the same level of sustainability and to get more resilience into their business approach.”

CONFERENCES & EVENTS AT

MIPIM

2023

THE LOGISTICS PRE-OPENING DRINK EVENT MONDAY, MARCH 13, 18.00 - 22.00

Closed-door event by invite only

THE LOGISTICS WORKSHOP WEDNESDAY, MARCH 15, 14.00 - 16.30

– Asset Class Stage Sponsored by BMI & Prologis

Panattoni’s Robert Dobrzycki

Clarion Partners Europe’s Rory Buck,

Valor Real Estate Partners’ Christian Jamison

There’s an emotional aspect to accepting that values have fallen, and not all sellers are there yet”

Rory Buck

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Connected for success

Innovation in real estate’s adjacent industries — from energy to transport, water to waste — is driving improvements in the built environment and enticing investors, reports

Isobel Lee

If governments have often turned to infrastructure investments for a quick boost to employment and GDP metrics, real estate funds have been recently following suit with an eye on dynamics that extend beyond economic profit. Although many property funds have consistently moved in the broader, real assets space as part of their business model, the current appetite for infrastructure investment is as much a reflection of geopolitical events and environmental concerns, as representing a broader play for diversification, according to Josephine Tucker, managing director, clean energy and

infrastructure advisory, JLL.

“There has been a broadening of the definition of infrastructure, in line with government spending and regulatory changes worldwide,” Tucker says.

“There’s also been a recognition of the fact that real estate and infrastructure have converged — they’re not siloed.

“From an infrastructure perspective, it doesn’t serve you well to be solely focused on transportation, or energy, or water, or broadband. They really are interdependent, and they come together to create residential, commercial, and logistics assets.”

While some regulatory moves

are easing the shift to infrastructure investment, for some real estate funds, changes can’t come soon enough. Commerz Real, the real estate arm of German lender Commerzbank, has been ramping up its investments in renewable energy infrastructure in recent years, and launched its first impact fund focusing on the climate change challenge in October 2020. Dubbed KlimaVest, the fund is aiming to build a portfolio of renewable energy generation assets as well as sustainable infrastructure, mobility, and forestry assets worth a total of at least €25bn. Henning Koch, CEO of Commerz Real:

Investors such as Azora Capital are leading the charge into renewable energy infrastructure

JLL’s Josephine Tucker

“I believe that real estate and renewables are moving towards a state of symbiosis.”

as well as investments in Infrareal, the operator of two pharma parks in Germany, and Helrom, an innovative freight train operating company.

Christoph Gisler, the firm’s head of infrastructure equity says: “The goal is to achieve a diversified infrastructure portfolio across various sectors with a focus on defensive assets, i.e., assets that benefit from regulation, long-term contracts and/ or concessions, strong market position, high barriers to entry and that show a positive correlation to inflation.”

Koch would eventually like to add renewables to his firm’s open-ended real estate funds, but regulations don’t yet allow that. “You can obviously put solar panels on a building, but we’d like to hold wind farms and solar parks in those vehicles too at some point,” he says. “We’re fighting for a change in the rules.” Azora Capital is another investor which is committed to renewable energy. Javier Camacho, investment director energy, infra and sustainability, says: “In 2022 our team finalised the construction of a wind farm of 105MW and is currently developing a portfolio of several photovoltaic (PV) plants in Spain and the US of more than 2GW. Looking ahead, we will continue to explore opportunities that utilise a wider range of renewable technologies, such as PV, wind and biogas, as well technologies that are in a more nascent stage, such as hydrogen or batteries.”

Swiss Life Asset Managers, meanwhile, has a very broad approach to infrastructure. The firm has deployed well over €3bn in 2022 alone across all major infrastructure sectors, such as renewable energy, energy, transportation, digital and social infrastructure. Its pioneering steps have included the creation of the largest Germany battery storage portfolio,

Clean energy is also an important area of focus as part of a broader, ESG-compliant strategy. Gisler adds: “Over the last 12 years we created five related funds with an aggregated volume of over €2.1bn. We launched three clean energy infrastructure funds that invest in Switzerland and two clean energy funds that invest globally.”

It is perhaps unsurprising that renewable energy is a natural focus for investors and asset managers as the real estate and corporate world takes its environmental, social and governance (ESG) responsibilities ever-more seriously. But the outbreak of war in Ukraine last year also brought the issues of energy supply and energy centre stage. Tucker adds: “We can’t talk about energy security without addressing the matter of energy resilience — guaranteeing a stable and sustainable supply is not always easy. Renewables have a major role to play in diversifying energy portfolios, but microgrids and demand management solutions are just as vital role in balancing supply/demand and contribute to the complex debate around regulation and pricing.” Several other real estate and real asset firms are now restructuring and expanding their infrastructure capabilities to emphasise their credentials in the space.

CONFERENCES & EVENTS AT MIPIM 2023

REVOLUTIONARY INFRASTRUCTURE

TUESDAY, MARCH 14, 14.00 - 14.45

– Infrastructure Stage

Sponsored by Schindler

THE ENERGY CRISIS DISRUPTING REAL ESTATE

WEDNESDAY, MARCH 15, 10.00 - 10.45

– Infrastructure Stage

Sponsored by Prologis

DATA CENTRES: SUSTAINABLE CONSTRUCTION

THURSDAY, MARCH 16, 14.00 - 14.45

Laurent Lavergne, global head of asset management & development at AXA IM Alts, says:

“For some time, the focus has been on renewable energy and transportation, in line with our decarbonisation goals. A couple of months ago we completed a large investment into Hornsea 2 in the UK, one of the world’s largest offshore wind farms. It is an area where we want to be part of the solution.”

Meanwhile, global real assets investor Patrizia acquired Danish multi-manager Advantage Investment Partners at the end of last year, adding further expertise to its team in real assets and alternatives. Advantage’s multi-manager product shelf includes a club deal invested in global infrastructure equity and a commingled discretionary fund series invested in North American private equity. The deal builds on Patrizia’s 2021 acquisition of Whitehelm, an Australian infrastructure investment firm.

A further area of interest for many investors is the transport sector, ranging from the evolution of the electric vehicle (EV) industry to a broader revolution in commercial transport. Consumer adoption in the EV space has been piecemeal to date, but data shows an overall positive trend. “10 years ago, less than 5% of total motor vehicles in circulation were EVs and there were only 10 models on the market. Today we have over 100 models and uptake is growing exponentially,” Tucker says. In the commercial sector, she sees significant appetite to make the switch to EVs, while building on the technology’s potential to contribute to the clean fuel debate. “Businesses which have large vehicle fleets are seeing that as part of charging EVs, they can supply surplus energy back into the grid, which becomes an additional income stream.”

– Infrastructure Stage Sponsored by BMI

Commerz Real’s Henning Koch

Swiss Life Asset Management’s Christopher Gisler

“I believe that real estate and renewables are moving towards a state of symbiosis”

Henning Koch

Heading in the right direction

Packed airports, fully booked hotels and soaring vacation figures meant that summer 2022 was a hit for many of the world’s leading hotel landlords and operators. But as economies contract globally, are hospitality metrics still heading in the right direction?

Jurrian Dompeling, senior vice president of EMEA hotels & hospitality capital markets, JLL, certainly thinks so.

“In the wake of COVID, many investors expressed an appetite for the sector as fundamentals continued to recover. 2022 saw daily rates trading up 19% in Europe,” Dompeling says. “It

is true that many owners are facing continued pressures on profitability, due to payroll and utilities, but the unique operating model and income streams mean that they are actually better hedged against inflation than other real estate asset classes.” While hotel transaction activity slowed down at the end of 2022 due to volatility in the debt markets, deals will likely pick up in H1 2023 as interest rates stabilise, assets come up for refinancing or due to further redemptions in open-ended funds, Dompeling adds. “There is a significant amount of capital that has been raised globally to target the sector, and we expect that

that capital will continue to be creative across equity and debt opportunities, including recapitalisations and structured deals.”

JLL’s latest global hotel investor sentiment survey reveals that 20% of investors are now looking to deploy between $501m (€461m) and $1bn+ worth of capital into the hospitality sector, up from 7% of investors in 2021 and 16% in 2020 — the highest proportion of investors wishing to deploy this level of capital since the pandemic started.

For Marinos Giannopoulos, CEO, Enterprise Greece, this is only the start of a very sunny outlook. “Greece is already a top international tourism destina-

Fresh momentum in the hotels and hospitality market is inspiring investors to check in to the sector, and brands to update their offer, writes Isobel Lee

Accor’s Agnes Roquefort

FEATURE: HOSPITALITY

Fashion-forward schemes such as the ibis Styles Copenhagen Orestad in Denmark successfully combine cheap and cheerful

tion, but the hospitality sector still has an extraordinary amount of further potential and there is a plethora of new sub-sectors ripe for investment,” he notes.

“With more than 16,000 kilometres of coastline, over 6,000 islands and islets, Greece is famous for sun, beach, and cultural heritage holidays. Our extremely well-established tourism industry has 800,000 hotel beds, over 500 conference facilities and more than 8,000 yachting births. “But the hospitality sector is undergoing a major strategic improvement initiative, to expand the tourist period, attract higher-value tourist segments and increase of average daily spend, as well as the opening of new tourist markets.”

private swimming pool connected to each suite. “We look forward to progressing our plans to realise the full potential of this resort on the truly majestic island of Milos, which was voted the best island in the world in 2021,” says Alexis Pipilis, Invel’s head of acquisitions in the Hellenic region.

Key areas in Greece for further development include thematic sun & beach tourism, with a particular willingness to refine niches. “In addition, we are growing nautical tourism, city breaks, cultural and religious holidays, medical tourism, meetings and incentives (MICE) tourism and sports holidays. A final area is integrated resorts — holiday home developments funded by nonEU citizens who gain residence permits by investing in real estate,” Giannopoulos adds.

In January, Invel Real Estate and Prodea Investments acquired White Coast Pool Suites, a fivestar luxury hotel on the Greek island of Milos, distinguished by a

Reflecting the trend to cater ever-better for individual needs, global hotel group Accor has entered 2023 with a new structure — separating its business into two distinct divisions, with premium, mid-scale and economy on one side, and luxury & lifestyle on the other. Agnes Roquefort, global chief development officer, luxury & lifestyle, says that lifestyle is a booming market and still one of the fastest-growing segments within hospitality. She adds: “The luxury market is very strong, with guests asking for more exclusive experiences, wellness, and F&B.” Camil Yazbeck, global chief development officer, premium, midscale, economy, notes that Accor’s offer in the more affordable area — where it vaunts a portfolio of over 4,800 hotels — also continues to show resilience and growth. “In the current post-COVID economic context, with rising costs and inflation, partners are seeking our economy brands more than ever,” he says. Accor’s “franchise-friendly brands” allow partners to open hotels at a quick rate, he says, while keeping pace with innovation in terms of design, services, and sustainability.

Finally, Yazbeck sees a bright future for augmented hospitality and hybrid projects, such as equipping hotels with co-working areas and F&B that also attract the local community. A number of properties are even exploring renting ground-floor units to retailers or medical service providers. “These kinds of initiatives ensure that the hotel

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is differentiated in the market, and drives revenues per sq m across the development, improving ROI for investors,” he says. Finally, while 2023 may bring further economic headwinds, the full opening of borders particularly in Asia seems likely to fully take the brakes off international travel — and tourists can’t wait. “Travel is a sector that has historically been hit hard during recessions, but people remain keen to be on the move even amid economic uncertainty,” Dompeling says. “International visitors to Europe, for example, boosted spending in the past year, sparking a much faster recovery than was anticipated. Paris has been one of the leading markets for this, not just in Europe, but globally.”

Javier Arus, partner, hotels, at private equity investor, Azora Capital, believes that a bumpy economy will bring “good buying opportunities”. He says: “Aspects such as reduced bank financing, increasing financing costs and the disappearance of some highly leveraged players such as private equity buyers will enable traditional real estate investors and specialised buyers to take advantage of certain opportunities at reasonable prices.” To identify the most appetising prospects, Arus is also monitoring tourism metrics. “We believe that leisure holidays will continue to outperform business travel, with the sun-and-beach leisure market tending to recover much faster after a downturn — as seen during the financial crisis and especially following the global pandemic and the pent-up demand it created for holidays,” he says. “This market is also made more resilient due to the presence of the super luxury segment which has proven almost immune to economic cycles, and serves as a relatively important component of the leisure travelling segment.”

THE HOSPITALITY WORKSHOP THURSDAY, MARCH 16, 14.00 - 16.30

– Asset Class Stage

Accor’s Camil Yazbeck

“There is a significant amount of capital that has been raised globally to target the hospitality sector”

Jurrian Dompeling

Each suite has a separate pool at the White Coast Pool Suites in Greece, acquired by Invel Real Estate and Prodea Investments

PROPEL BY MIPIM

Unlocking the ESG puzzle

In real estate’s battle to cut carbon emissions, technology is proving an essential tool in improving the environmental, social and governance (ESG) profile of buildings.

And despite tech funding typically slowing in an economic downturn, there are plenty of firms that are ramping up their investments to achieve the industry’s net zero goal. “The adoption of technology can help us to achieve our sustainability objectives faster,” says Cristina Garcia-Peri, senior partner and head of strategy and corporate development at Spain’s Azora Capital. “We believe proptech will play a crucial role in the decarbonisation of real assets.”

While the number of technological applications tackling ESG matters has grown exponentially in the last few years, a few firms stand out at the inter-

section between green buildings and technology.

Edge Technologies, a real estate technology firm founded by Coen van Oostrom, is a real estate developer with a difference. Edge’s buildings not only incorporate cutting-edge tech while leaving space for its further evolution — they are designed and built in the most sustainable way possible through digitally-backed innovation. Edge itself has pledged to reduce the carbon emissions associated with its corporate operations by at least 50% by 2030 compared to its pre-COVID baseline, and has an ambitious goal of reaching operational carbon net zero by 2050 — without relying on offsetting. “Offsetting is not a long-term solution to the climate crisis,” van Oostrom says. “A newly planted tree can take decades to offset the amount of carbon some carbon credit schemes promise.

There is no replacement for cutting emissions.”

That solution includes “retrofitting whenever possible, using recycled material and innovating the way we design our buildings”, van Oostrom says, “while pushing much-needed innovation in creating lower-carbon versions of traditional building materials such as concrete and steel”.

Edge’s approach underlines the growing industry focus on contech — digitally-backed solutions to decarbonise the construction process. “Modular construction will be instrumental in achieving this by providing greener buildings, delivered faster and safer,” adds Christy Hayes, chief executive of innovative development company Tide Construction.

“Precision-manufactured homes will also provide high-quality homes for residents and robust investments for developers and

As technology becomes real estate’s chief ally on the road to net zero, multiple innovative practices are driving the green revolution

Valley by Edge Technologies embodies the transformation of Amsterdam’s multifunctional Zuidas district

Symmetrys’ Chris Atkins

Tide Construction’s Christy Hayes

institutional investors.”

Tide currently has 3,500 homes under construction in the UK and has been responsible to date for three out of the five world’s tallest modular buildings, with the 101 George Street build-torent scheme in Croydon currently holding the record for height. Hayes says: “By taking a high proportion of the construction process off-site and having concurrent workstreams with site works, construction time is cut by up to 50%, and safety is enhanced both on-site and off-site. “An independent study by academics from the University of Cambridge and Edinburgh Napier University has shown that two of our modular projects delivered in 2020, comprising a total of 879 homes, have already surpassed embodied carbon industry targets for 2025 and 2030 set by the Royal Institute of British Architects (RIBA) and the London Energy Transformation Initiative (LETI).”

are primed for demolition by carefully controlling the take down process, to actively identify reusable materials and effectively remove them with an appropriate methodology. “Reusing structural steel is a prime example as it is great opportunity to reduce a project’s embodied carbon. By identifying the section sizes within an existing building and removing them through unbolting or by carefully cutting and dropping, we can easily repurpose the steel sections for other projects,” Atkins says.

“While the industry is still learning the most successful methods for this, we have found opportunities to reuse steel without significant added costs through collaboration with like-minded design teams, contractors, and steelwork fabricators. At 55 Great Suffolk Street, we are working with developer Fabrix to reclaim 9.5 tonnes of steel from a City of London building that was being demolished; this is estimated to save 25 tonnes of carbon.”

Finally, while new buildings represent sustainability’s most exciting aspect, a more pressing issue arguably remains standing stock. Fortunately, there is no shortage of experts tackling both retrofitting and the important task of controlling daily usage metrics.

Furthermore, in the world of flexible working, user metrics can vary so much that an automised level of responsiveness is essential to run buildings efficiently and tailored for changing needs.

Faisal Butt, managing partner and founder of built environment tech VC Pi Labs, adds: “Every real estate company needs to meet their carbon neutral targets by 2030, downturn or not, and they can’t do that without technology. Trends such as how the future of work is evolving are not going away, so the tech that supports modern, flexible workspaces, for example, remains essential. Meanwhile operational inefficiencies are ripe for appraisal during keener economic conditions.”

Symmetrys, meanwhile, is a firm which is pioneering the practice of “urban mining” in the name of circularity, the built environment’s virtuous circle. “Existing buildings are a treasure trove of materials and can reduce the embodied carbon of future developments. We can and should reuse materials from existing buildings by altering our approach to construction,” says Chris Atkins, managing director and founder. Symmetrys “mines” sites which

Edge Next is Edge Technologies proprietary platform for optimising the operations of any building, using multiple sensors and sources to not only gather data but also to deliver actionable insights. Van Oostrom says: “These intelligent building solutions need to be available for the vast majority of commercial buildings, not just new builds and retrofits. We can reduce our clients’ energy costs by 10-30% without expensive upgrades to building management systems or changes to facilities teams.” He adds: “The key goal is not to reduce costs to zero but create spaces where building users thrive.”

Pi Labs has evolved its investment thesis to back innovators that are shifting how we live, work, own, build and experience the built environment. “Everywhere you look is the built world, so it doesn’t make sense to think in terms of greening individual assets. If you want to have a lasting, positive impact on communities, business and the environment, you have to think holistically about the social dimension as well, which means also addressing affordability, accessibility, and diversity, as well as health and wellbeing. Only that way can our investments really shape the cities of the future.”

CONFERENCES & EVENTS AT MIPIM 2023

“Offsetting is not a long-term solution to the climate crisis. There is no replacement for cutting emissions”

Coen van Oostrom

Valley was designed by award-winning architect Winy Maas from MVRDV

Edge Technologies’ Coen van Oostrom

Proptech investors take note

While plenty of interest remains in backing the right property technology solutions, selective funding strategies have become a smart way of separating the hits from the flops

If the digitalisation of the real estate industry continues to be a positive trend, marked by significant investment volumes in proptech over the last decade, short-term factors have become the sector’s latest challenge. “In 2022, like the previous year, considerable amounts of dry powder targeted proptech,” says Faisal Butt, managing partner and founder of Pi Labs. “But with war in Ukraine, inflation and rising interest rates, there was definitely an aura of pessimism that started in the US and took hold in Europe by the third quarter.”

The effect of this cautious mood was a slowing of the capital market for venture and proptech, as investors became more selective.

Adds Charlie Wade, managing director EMEA, VTS: “It’s no secret that the overall venture capital and proptech invest ment landscape has become more conservative in the last 12 months and this is a trend that is likely to continue throughout 2023. Capital has largely hit pause and is taking a wait-andsee approach. When funding returns, which it will, the smart money will seek out those com

panies with the right metrics and fundamentals.”

Wade says: “Investors’ appetite for certain performance metrics when it comes to proptech firms have changed — before they rewarded growth at all costs. It didn’t really matter how much capital you were burning through so long as revenue and market share continued to grow.

“Growth and market share are still very important but front of mind today is doing this in a sensible way while keeping burn under control. Companies which require continued

MIPIM’s Nicolas Kozubek and Metaprop’s Aaron Block sing proptech’s praises at Propel by MIPIM NYC 2022

VTS’ Charlie Wade

investment to operate and grow will struggle to raise capital and eventually run out of runway.”

Butt notes that investors are extending the runway required for new and follow-on investments — the length of time that companies need to demonstrate that they have sufficient funds to operate — from the typical 12 months to a longer 24 months. Yet he suggests that these types of improvements to the underwriting process should be maintained. “Proptech venture capital is now scrutinising whether startups have balanced management teams, have a clear path to profitability, and have enough capital to last until their next planned fundraise. I hope these are habits that last, as this kind of discipline makes for a much healthier proptech ecosystem.” Metaprop’s mid-year 2022 global proptech confidence index, released in September, confirms these overall trends.

According to the report, some 62% of investors expect to make the same number of proptech investments over the next 12 months — a departure from the last Index in which 71% of

respondents expected to make more investments.

The survey also found that 71% of startup founders believe that it will be harder to raise capital in the coming 12 months, up from 27% six months ago; meanwhile, 52% of startups have stated that without raising additional capital, they have less than 12 months of runway. But there is capital out there for the right business models. The survey finds that 35% of investors are interested in investing in startups that impact the multifamily industry, a record high for the category. Conversely, only 10% of investors are interested in investing in startups that impact the office industry, a record low for the category. VTS had another successful funding round in 2022, proving that for the few, well-positioned companies there is still dry powder out there looking to invest in the proptech sector. Wade says: “This was our Series E funding round and as a more mature operator we were able to raise a sizeable round largely built on the back of existing relationships and delivering consistent results year over year.” Meanwhile, a report from US body The Center for Real Estate Technology & Innovation (CRETI) backs the thesis that the industry is maturing in a beneficial way. The US proptech scene added 9,492 jobs in 2022, continuing the positive trend of recent years. The labour market is often viewed as a proxy for the health of the proptech ecosystem, as jobs are closely tied to financial and venture capital activities. “Despite economic headwinds, the proptech industry’s job market remained strong in the US,” says Ashkan Zandieh, co-chair and founder of CRETI.

Conventional in-person jobs outpaced hybrid/remote jobs throughout the first half of 2022. The market began to

CONFERENCES & EVENTS AT MIPIM

shift in Q3 and fully titled in Q4 when hybrid/remote jobs represented 60.1% of all new jobs and closed out the year 71.9% higher in December when in-person jobs came to a near standstill.

Looking to the rest of 2023, Butt is confident that the right venture capital will find the right firms to back, and that the industry will continue on the path to digitalisation. “Research points to the fact that companies that invest in tech during a downturn tend to outperform their peers who didn’t invest in tech when the market swings back up. Furthermore, tech remains essential for companies achieving key targets such as their net zero goals,” he says.

Cristina Garcia-Peri, senior partner and head of strategy and corporate development at Spanish private equity firm Azora Capital, agrees. “We look at proptech not as a sector on its own but as an integral part of the real estate industry,” she says. “In that sense, proptech investors are increasingly investors of platforms and real estate businesses rather than investors in individual single assets. And, even if investment volumes are down since the 2020-2021 highs, backing those businesses with the correct and most advanced technology will help us reach our investment goals as well as helping us to generate maximum value for our clients.”

Garcia-Peri concludes that proptech investments will not only be essential for decarbonising but will help attain efficiency right across the board.

“We believe that artificial intelligence, machine learning and data analytics will bring opportunities to the real estate world, especially to the fields of property management, marketing, tenant communications, payment history, security and construction optimisation.”

“Proptech venture capital is now scrutinising whether startups have balanced management teams, have a clear path to profitability, and have enough capital to last until their next planned fundraise”

Faisal Butt

Pi Labs’ Faisal Butt

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An Olympic endeavour

With France set to host the 2024 Olympic and Paralympic Games, the country has a significant opportunity to highlight investment opportunities to developers in an already strong market. Nearly €25bn was invested in corporate real estate in France in 2022, with investor strategy principally driven by the resilience of the office market, although shares are starting to fall, according to Virginie Houze, head of research France, JLL. “Offices accounted for just above 50% of the total investment volumes in France and in Paris 68% in 2022,” she says. “Until quite recently, offices were largely dom-

inating the investment market in France: on average more than 80% of the investment volumes in the Paris region and 68% on average in France.”

Paris has the third largest office stock in the world and the first in Europe, according to JLL.

“All these elements together offer investors a very deep leasing market and a deep office market supported by a wide range of properties,” Houze says.

The logistics market is also performing strongly as an asset class, up in volume from around €1bn per annum 10 years ago, to €4-5bn since 2019.

Meanwhile, the residential mar-

ket has also taken off as the focus has switched back from commercial real estate. “During the last five years we see a return of interest for the living/residential sector,” Houze says. In part this is driven by demographics — an ageing population and an increase in student population.

“At the end of Q3 2022, senior housing investment volumes were three times higher than in 2021 and student housing five times higher,” she says.

“We have seen growth in investment across most of the main asset classes, although the decreasing interest for retail assets remains a feature of the market,”

As France limbers up for next year’s summer Olympic Games, its dynamic real estate markets continue to look best in class, reports Liz Morrell

Ardian’s Stephanie Bensimon

Lionel Grotto of Choose Paris Region is ready to welcome investors

says Stephanie Bensimon, head of real estate at Ardian. But demand is evolving too. “Investors are increasingly looking for mixed-use and alternative assets as a way to drive returns, in light of new working and living habits following the pandemic,” she says. “We can expect to see more transactions involving mixed-use developments, residential assets, hotels, data centres and last-mile logistics.”

Nicolas Verdillon, managing director, head of investment properties, France at CBRE, agrees: “Diversification has accelerated in the last two years. Today, the range of asset classes are driving investor strategy in France.” Also emerging are more niche asset classes. According to Li-

ble that Paris gets the lion’s share of investor attention. “Paris Region continues to be an essential global location, a port of call for investors,” Grotto says. “It is one of the most dynamic markets in Europe and home to the largest international real estate investments. The Paris property and commercial real estate market generates the third most important revenue source from foreign direct investments,” he adds.

Another factor is the construction of the GrandParisExpress project, the biggest public transport project in Europe which will create four new automatic metric lines, extend two existing lines and the construction of 68 new stations. It is set to generate 186 urban development projects in the 35 surrounding districts. It will only be partially completed by the time of the Games with the completion date now 2030, but, it’s expected that within 10 years it will result in the construction of 84,000 housing units, 2.5 million sq m of office space, and more than 2.1 million sq m of other business space, according to Grotto, helping to boost demand outside the capital. “Businesses are prepared to cross the ring road to set up in the middle and outer suburbs,” he says.

CONFERENCES & EVENTS AT MIPIM 2023

onel Grotto, CEO of Choose Paris Region, incubators and labs dedicated to life sciences have boomed in the last 18 months. “The strong public-private partnerships built over the years have supported the growth of this ecosystem creating favourable conditions for the emergence of a PropSci market, confirmed by big international investors that now see Paris as a hub for biotech in Europe,” he says. Its prime position, as well as being the setting for the forthcoming Olympics, means it’s inevita -

The green agenda, as well as the hunt for quality, is another important factor, particularly in secondary stock, according to Ardian’s Bensimon. “Flight-to-quality continues across all assets, which will continue to negatively impact demand for secondary stock,” she says. “In light of the new lifestyle changes, core investors are increasingly focusing on high-quality and well-located space in the main cities like Paris and Lyon to take advantage of strong tenant demand and low supply of such space.” But this also means a shift in use. “Office demand is concentrating

FRANCE:

THURSDAY,

–

more and more on central urban locations,” says CBRE’s Verdillon. “Therefore, there is a growing movement to seek redevelopment opportunities for suburban office buildings into residential, hotel or housing (particularly senior and student housing) and with these cases, the issues are mainly the restructuring costs and the capability of the local city council to accept and adapt such urban shifts.”

ESG regulations are accelerating the obsolescence of secondary stock, and widening the gap with Grade A, she says. “While heavily refurbishing assets has proven to achieve premiums on rents and valuations, inertia on integrating ESG in any redevelopment or new project, could impair an asset’s liquidity, on both leasing and at exit, and cause ‘brown discount’,” she says.

Developers are working hard to integrate environmental considerations to attract new investment opportunities. In Paris Region around 50 urban projects are under way, exploring new living space concepts combining working, leisure and living and the Region has also been supporting the creation of 100 innovative and ecological neighbourhoods, developed to promote sustainable and carbon-free planning relying on green energy. “To create a more breathable, greener, cleaner, and circular Region,” Grotto says. This is also a key feature of the preparation for the Games. Bensimon points out that environment has been at the heart of construction decisions, helping to push France’s ESG credentials further. “Construction has aimed at using 100% bio-sourced materials and green energy. This aligns with Paris’ strategy to reduce the carbon footprint of the Olympics by 55% compared to other Games.”

CHALLENGES, OPPORTUNITIES, INVESTMENT TRENDS & PRIORITIES

MARCH 16, 10.00 - 10.45

Geo Focus Stage

FULL PROGRAMME OF EVENTS FROM UNITED GRAND PARIS

JLL‘s Virginie Houze

“Investors are increasingly looking for mixed-use and alternative assets as a way to drive returns, in light of new working and living habits”

Stephanie Bensimon

CBRE’s Nicolas Verdillon

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Opportunities abound

UK municipalities and investors are increasingly convinced that the country’s long-term fundamentals will make light work of any economic downturn, writes Clive Bull

After a turbulent year economically and politically in the UK, including the departure of two prime ministers, 2023 seems to be summoning a mood of cautious optimism, with expectations that the market will experience a reversal of the pattern seen last year. 2022 began strongly with record investment in quarter one, followed by incrementally decreasing volumes over the course of the year.

“We expect the inverse to be true in 2023,” says Cameron Ramsey, EMEA and UK capital markets research director, JLL. While the year started with challeng -

ing macroeconomic conditions and uncertainty around pricing resulting in weak sentiment and subdued investment activity, Ramsey expects these conditions to markedly improve over the year. “Inflation and interest rates are expected to stabilise, meaning more visibility on underwriting and more confidence on pricing.” David Hutchings, international partner, head of investment strategy EMEA capital markets at Cushman & Wakefield, also thinks 2023 “could well look like a reversal of 2022”, with a weak start but a stronger end. “What’s more, we may also see a reversal of the relative health of occupiers and investors, with investors

gradually strengthening as the year goes by but occupiers in a more cautious frame of mind.” JLL is forecasting investment volumes this year are likely to reach £60bn (€68bn), close to 2021 figures, and expects 2023 to be a year of continued polarisation. This will be due in part to changing work patterns, according to Will Matthews, head of UK commercial research at Knight Frank. “I do believe the pendulum is swinging back. Businesses that are looking to attract their people back to the office naturally want to have the best real estate they can afford to make sure they’ve got the most enticing offices,” he says. The other key fac-

Cushman & Wakefield’s David Hutchings

The prospect of a new, indoor arena in Cardiff as part of the Bay area’s further renaissance has investors in a jubilant mood

tor is ESG commitments, being “driven partly by investor desire, partly by occupier need and to a large part by regulatory push. Our own research shows that green-rated buildings in London command a premium both for rents and pricing.”

Unsurprisingly, Nick Walkley, UK president at Avison Young, believes lower quality office space will have a quieter 2023. “We see smaller occupiers waiting for better market conditions or turning to more flexible options. The bifurcation of the market has already begun. Despite the challenging market conditions, we expect the demand for best-inclass space to keep prime headline office rents in the UK resilient.” Hutchings expects the living sec-

years, according to Walkley.

In London, Jules Pipe, London’s deputy mayor, planning, regeneration & skills, believes the capital offers key opportunities in the reshaped office market as well as significant residential development opportunities in sites across London. “Anyone pondering whether to invest in London vs elsewhere and concerned with proximity to the centre should come and ride the Elizabeth line.

It has transformed east-west travel in the capital,” he says.

Pipe also points to 70 acres (28 ha) of developable land in touching distance of the new Old Oak Common HS2 and Elizabeth Line station where London’s largest new urban district is set to rise.

As for the City of London, there is strong evidence footfall is returning. City of London corporation policy chairman, Chris Hayward, says the Square Mile’s recovery is being driven by the new Destination City programme which is focused on creating a seven-day-a-week leisure destination aimed at UK and international visitors, workers, and residents.

tor to continue to attract new investors in most markets. “It has shown great resilience in 2022 but while it was late to the repricing merry-go-round,” he says. “Yields are now adjusting to the changed interest-rate environment and the market is in price discovery mode. Nonetheless, the rental story has remained positive, and this is encouraging more investor demand. However, affordability issues will remain close to the surface and the forsale market will see more distress.” The government estimates the cost of responding to the shortage of social and affordable housing in the UK at close to £17bn a year over the next 10

“We have received more planning applications so far this year than in each of the previous two years and we have eight tall buildings at pre-application stage and two now submitted as applications,” Hayward says.

It is a similar story in the Welsh capital Cardiff where Ken Poole, head of economic development, says a strong stream of investment enquiries is particularly pleasing and footfall is returning.

“The city centre is looking positive at the moment with a lot of repurposing taking place with a growth in leisure activities chipping away at the retail space.”

Cardiff Bay continues to be a major regeneration area with construction starting this year on a 17,000 capacity multi-purpose arena. Meanwhile, in the West Midlands, there is a par-

CONFERENCES & EVENTS AT MIPIM 2023

FINANCING LONDON’S DECARBONISATION

TUESDAY, MARCH 14, 11.00 - 11.45

– London Stand Stage

LONDON’S AFFORDABLE HOUSING MARKET

WEDNESDAY, MARCH 15, 15.00 -15.45

– London Stand Stage

THURSDAY, MARCH 16, 11.00 -11.45

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ticular focus on the intersection of innovation and infrastructure. Neil Rami, chief executive, West Midlands Growth Company (WMGC), says the region has multiple distinct centres of knowledge production.

“In fact, a study we undertook with London Economics showed the West Midlands to have the largest spread of companies developing emerging technologies outside of London, in areas including industry 4.0, sustainable housing, electric vehicles, battery storage devices and gaming,” Rami says.

In the North East, there is something of a renaissance in investment terms, with the region topping the national list for job creation from foreign direct investment and forging ahead with key capital investment projects such as the £350m conference centre on Gateshead Quayside, the £155m state-of-the-art HMRC hub on Pilgrim Street in Newcastle City Centre and the £350m innovation district on Newcastle Helix.

“Following the announcement from government about a new devolution deal for the north east of England, we are incredibly excited about the new powers and funding that are coming our way,” says Jen Hartley, director of Invest Newcastle. “A £1.4bn investment fund will unlock huge opportunities for the city and give businesses another list of reasons to locate and invest here.” Looking south, Tim Hancock, chair of Regenerate South Action Group, says while 2023 will be a difficult year for consumers and businesses across the UK, there remains an optimism across many industries. “Key sectors with great potential include transport — especially with the approval of the Solent Freeport and Southampton Airport’s runway extension — logistics, life sciences and major mixeduse town-centre regeneration schemes in Bournemouth, Poole, Portsmouth and Southampton.”

THE FUTURE OF UK CITY CENTRES

London Stand Stage

Greater London Authority’s Jules Pipe

The redeveloped Salisbury Square will transform the City of London

“Our own research shows that greenrated buildings in London command a premium both for rents and pricing”

Will Matthews

When the price is right

Germany still holds interest for investors, despite recent challenges, but many are waiting to pounce when valuations have settled down, reports Benedict

Cooper

The news from BNP Paribas in January that the German market had closed 2022 with a dismal three months — transactions were 50% below the five-year average for the final quarter — may not have come as much of a surprise to investors. But still, it certainly wasn’t the start to the new year that anyone wanted.

Ushering in 2023 with a sobering confirmation that Germany is in the midst of a tumultuous economic period won’t have given much confidence to those that were betting on a stabilisation, if not a fully-fledged recovery, by the spring.

But with interest rates at that

stage still rising, compounded by high inflation, high historical dependency on cheap Russian gas, and tepid-to-negative economic growth nationally, was it more a question of hope than real expectations?

What is certain, says Alexander Kropf, head of capital markets Germany at Cushman & Wakefield, is that Germany’s reputation for stability has taken a hit. “Last year, when the war started, the problems the German economy was facing came to light. The dependency on Russian gas moved to the top of the agenda.

“The once safe haven of Germany has become questionable. In the light of these problems, and

rising interest rates, it’s become pretty difficult.”

There’s no denying that Germany is in a tough position — losing its long-held reputation as a safe haven will be a bitter reality to face. But there are those who are more bullish about Europe’s largest economy and are willing to put their money there to prove it.

Philippe Grasser, managing director for Germany at AXA IM Alts, says that the market remains fundamentally sound, despite the destabilising effects of the past 12 months.

He says: “Germany has proven its resilience and adaptability qualities in the past. The em-

Credit Suisse Asset Management’s Holger Herb

Henderson Park’s Mosse-Zentrum office asset in Berlin

ployment level remains high. It benefits from a relatively well-diversified economy in terms of industry sectors.

“What remains to be seen is how Germany might need to partially reinvent its longstanding model of being a predominantly industrial and exporting nation.”

But how does this impact real estate investment? What news for investors and developers who are actively seeking real estate assets in Germany today, at MIPIM, and are assessing their options?

In the short term at least, the viability, or not, of those options seems to come down to pricing.

As Kropf explains: “Everybody’s

“The country has managed to become independent from Russia’s gas and is supporting consumer demand through multi-billion governmental programmes,” he says. “A severe downturn of Europe’s economic powerhouse is not foreseeable and is further mitigated by the mild winter and falling gas prices.”

Investment volumes may be down overall, but, says Hellerschmied, there is still strong demand for those who know what type of assets, and where, are proving the most resilient.

He says: “We believe real estate investors will be rewarded for high-quality assets in key urban cities which meet the latest energy efficiency and ESG standards.

“The German markets remain severely undersupplied of both living and working properties which continue to experience domestic and international demand, fuelling steady rental growth. In addition, most German property owners benefit from inflation adjusted rents.

“The supply-demand imbalance is expected to be further exacerbated by the lack of new development activity.”

looking very closely at how Germany is developing. It’s one of the most important economies in Europe.

“MIPIM will be the time when people will really start looking at opportunities. Then they’ll have found a new price level, and we’re hoping that the market will be more active then.We’re in the middle of a correction.”

This will be a reassuring note for investors actively seeking opportunities in Germany, such as London-based Henderson Park. Indeed, Robert Hellerschmied, principal at Henderson Park,says there is plenty to be positive about looking forward.

It is what Savills described, in its December 2022 outlook, as the “size down and grade up” phenomenon. Demand is there, but it is more selective. And, as Savills concludes, “this creates both abundance and scarcity: abundance of space that no longer meets the increased demands and scarcity of those spaces that do.”

This is by no means confined to Germany. Everywhere you look, key social shifts, exacerbated in many cases by the pandemic, are driving occupiers, especially those in the crucial office sector, to rethink their demands.

Rumours of the end of the traditional office tenant-landlord relationship and permanently revoked occupier habits may have been exaggerated. But what

CONFERENCES & EVENTS AT MIPIM 2023

is clear everywhere is that modern offices must be of the highest quality to attract increasingly demanding tenants — whether those demands are about the quality of the space, its location, or its sustainable credentials.

This conversation is going on throughout the developed world. In Germany, which is exposed to the volatility of Eastern Europe and is on an ambitious journey towards carbon neutrality, circumstances have been significant catalysts for change. This dramatic shift, and potential stabilising factors, are well summed up by Holger Herb, head of transactions & asset management international at Credit Suisse Asset Management. He says: “Credit Suisse expects the economy to shrink by 0.8% in 2023. Shifting the economy towards more diverse and greener sources of energy would improve this resilience, especially over the longer run, while the investments needed to do so would soften the current economic shock itself.

“In our view, the combination of the short-term and the longterm cycles means that there are multiple opportunities for real estate investors.”

Investors will have come to MIPIM with a good idea of how well the markets have been performing since the start of the year — and soon we will have updated transaction volumes data to confirm those feelings. Germany remains a highly attractive market, for its fundamental structure if not its current economic status.

The markets will be watching the first quarter figures very carefully, and more widely at key indicators — the progress of real estate price adjustment that Kropf discussed for one. By the time MIPIM comes round again, we will know whether this was a blip, or a systemic change for the worst, for the once safe haven of Europe.

GERMANY: CHALLENGES, OPPORTUNITIES, STRATEGIES TUESDAY, MARCH 14, 14.00 - 14.45 – Geo Focus Stage

AXA IM Alts’ Philippe Grasser

Henderson Park’s Robert Hellerschmied

“What remains to be seen is how Germany might need to partially reinvent its longstanding model of being a predominantly industrial and exporting nation”

Philippe Grasser

Opportunities arise in the east

The resilient CEE region is still attracting businesses and investors despite headwinds, while development dynamics remain compelling, reports Andy Fry

There’s no denying that 2022 was a challenging year for the real estate sector in Central & Eastern Europe (CEE). The Ukraine war unsettled investors while factors including rising inflation and interest rates have meant onerous construction, transportation and energy costs.

Kevin Turpin, regional director of capital markets CEE at professional services firm Colliers, says there has been “a slowdown in investment transactions” — and he doesn’t expect that to change soon. At the same time, “companies have to contend with the fact that ESG is now a market standard, which comes with additional costs.”

Having said this, Turpin is optimistic about the medium-term: “Longer term forecasts show the

CEE-6 (Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia) growing twice as fast as the Eurozone.”

This fact hasn’t been lost on some companies, which have not allowed immediate challenges to affect long-term ambitions. Among 2022 highlights, Debrecen, Hungary unveiled plans for Europe’s largest battery factory while Romania achieved a record year in residential. Czechia is seeing growth in retail park and big box construction, and Slovakia notes investor interest in student and senior-living housing.

Drilling down, Turpin says investment in retail parks is seeing a post COVID-19 bounce while demand for office and industrial space have also proved resilient.

“Alternative assets classes such as private rented and mixed-use are also attracting investors,” he

adds. Looking ahead, Turpin sees headroom for industrial and anticipates a significant shake-up in the residential sector — especially in Poland.

Still on Poland, Griffin Capital Partners managing partners Maciej Dyjas and Nebil Senman agree that the Ukraine war has resulted in “supply limitations and worker shortages, compounding the challenges of rising inflation and energy costs”. Nevertheless, Dyjas says: “Poland remains attractive to investors. It has CEE’s largest and most developed market, and its location makes it the region’s logistics hub. In addition, the shortage of housing as a result of increased immigration is an opportunity for residential.”

Krakow alone has seen 177,000 people arrive in the city since the start of the war.

Senman adds: “We have been de-

Dynamic mixed-use developments like Fabryka PZO in Warsaw are a big part of the region’s renaissance

Krakow deputy mayor Jerzy Muzy

veloping projects with US partners like Oaktree, Pimco, Ares, and Madison for years. We are also acquiring or setting up businesses with South Africa’s Redefine, Kajima and Wing, a developer from Hungary.”

Poland’s Minister of Economic Development and Technology

Waldemar Buda cites “a rebound in the Polish economy. Wealth in Poland has been growing continuously for 28 years and Poland’s GDP is growing quickly.”

Buda says Poland has developed a programme “to support strategic industries and their supply chains. Mercedes-Benz is investing over €1bn, which is proof of the favourable conditions in Poland.”

been finalised involving partners from the US, Germany, China and South Korea.

Warsaw remains a key focal point for investors, with mixed-use developments such as Fabryka PZO in vogue. However, the supply of modern office space in the eight major regional markets exceeded levels in Warsaw by 200,000 sq m during 2022. The Tricity metropolitan area in Pomerania offers one million sq m of modern office space, while Katowice increased supply by 20% in 2022. Monika Wójcik, senior project manager at Invest in Pomerania, says the region is benefiting from its strategic location, talent pool, innovative transport infrastructure, and deep-water ports, Gdansk and Gdynia. “Container handling is the key driver of growth, with the main contributor the Baltic Hub.”

The minister’s assessment is echoed by Piotr Dytko, member of the board and acting chairman, Polish Investment and Trade Agency (PAIH), who says: “Poland’s advantage is its location at the intersection of transport routes. Investors appreciate the fact we have qualified workers and are a high-tech country. We have seen growing popularity in nearshoring, which the war has increased.”

PAIH deals mainly with large investments (over €100m), which require land with an area of at least 20 ha and which already have infrastructure. Pointing to Poland’s resilience, Dytko says several investment projects have

Wójcik says Tricity has almost doubled its size during the last three years — and is continuing to thrive despite increases in rents. “As of Q2 2022, total logistics and industrial stock was 1.175 million sq m, and the office market also remains strong. Most investments come from the US and Europe, but markets being targeted for key industries such as mobility or semiconductors include East Asian countries.”

Poland’s second biggest city Krakow is also weathering the storm well, says Jerzy Muzyk, deputy mayor of Krakow for sustainable development: “In just a few years, the stock of office space has quadrupled — currently it is 1.6 million sq m, and 190,000 sq m is under construction. A key advantage is our thriving academic community, which consists of 130,000 students and extensive research facilities.”

Elsewhere, the Baltic States continue to drum up investment despite economic concerns. Fredis Bikovs, Riga Investments and Tourism Agency director, says

CONFERENCES & EVENTS AT MIPIM 2023

POLAND: OPPORTUNITIES FOR INTERNATIONAL INVESTORS

TUESDAY, MARCH 14, 17.45 - 19.45

the Latvian capital is attracting FDI due to “convenient location, multilingual talent pool and cost competitiveness. Manufacturing is a priority especially in fields such as life sciences, biotech, metal working and electronics.”

Petersone says the Industrial segment “recorded more than 170,000 sq m GLA of new space in last two years and approximately 130,000 sq m GLA is currently under construction. At the beginning of 2023, there is approximately GLA 145,000 sq m of office area under construction.” Among recent additions to the Riga cityscape is Verde, a two-building 45,000 sq m scheme which is dubbed Riga’s greenest office complex. KPMG signed up as an anchor tenant in 2022.

Meanwhile, Greta Mieliauskaite, business project manager of the Vilnius Development Agency, Go Vilnius, says the Lithuanian capital enjoyed a robust year with 57 new or expanded projects generating €135m investment. “In Vilnius we have four priority sectors: Fintech, Biotech, Lasers and ICT.”

CEE: CHALLENGES, OPPORTUNITIES, STRATEGIES

WEDNESDAY, MARCH 15, 11.00 - 13.30

With these sectors offering resilience in uncertain times, Mieliauskaite says “there is a huge demand for office spaces, and this shows little sign of slowing”. Recent projects include façade construction for Libeskind’s Artery Business Centre and the Hero business centre construction. Also due in 2023/24 is Tesonet’s Cyber City. In Estonia, Kart Kanne, marketing manager, City Enterprise Centre, in Tallinn’s Strategic Management Office, says: “economic freedom, ease of doing business, eurozone membership, and low corruption scores all foster a good climate for business facilitation in Tallinn”. She adds: “One of the largest office complexes in Estonia with 28,000 sq m of A class office space should be completed in 2024.” All of which points to continued confidence in the face of the region’s challenges.

– Verriere Californie Organised by Poland Today

– Geo Focus Stage

Polish minister Waldemar Buda

“A key advantage of Krakow is our thriving academic community, which consists of 130,000 students and extensive research facilities”

Jerzy Muzyk

Verde, a 45,000 sq m scheme in Riga, has been dubbed the city’s greenest office complex

In at the deep end

Northern Europe has attracted increasing levels of cross-border real estate investment, but the outlook in early 2023 contains a mix of challenges and opportunities, reports Mark Faithfull

The Nordic real estate market has been attracting increasing volumes of international capital over recent years, but even robust growth across its major cities and the emergence of Stockholm as one of Europe’s most important tech hubs has not left it immune to global uncertainties.

The Nordic market is, in fact, the third largest real estate market for transactions in the European region, after Germany and the UK, according to Colin Waddell, managing director of The CBRE Nordic Capital Markets, CBRE.

After a very strong start to 2022, last year became increasingly challenging as global uncertainty impacted investment across the continent and in early 2023 the dynamics in each market are

somewhat different.

In Denmark, after the strongest ever first-half year investment volume recorded in H1 2022, market sentiment in H2 was downbeat, according to Waddell. In turn, this is expected to result in 2022 full-year volumes being 10-20% below the level recorded in 2021. High borrowing costs are likely to continue to impact prices and investment volumes and a further correction in prime yields is expected. However, Copenhagen is home to Nordhavn, one of Scandinavia’s largest and most ambitious urban developments, where vacant industrial buildings and land are being transformed into a new sustainable urban district with a pedestrian- and bike-friendly infrastructure.

By contrast, despite this in-

creased uncertainty, 2022 was a strong year for Finnish real estate investment, with 51% of total investment from cross-border investors, and 53% of the total volume targeting the capital city region. Residential and office prime yields have moved out by 70 to 85 basis points during 2022 and are currently standing at 3.60% and 3.85%, respectively.

“Foreign investors mainly focus on the largest cities — metropolitan areas and two to three regional centres, with the most positive growth prospects. There are good opportunities in all sectors according to investors’ strategies. In the past couple of years residential and public use properties in particular have attracted investors. Prime offices also retain their popularity and retail property transaction volumes increased,” says Hanna Ka -

Nordic markets largely enjoy a bright outlook

[photo credit] Rasmus HjortshojCOAST

Investors are bracing for fresh ups and downs as they take the plunge into the diverse markets of northern Europe

leva, managing director of Helsinki-based research company KTI Property Information.

However, Kaleva concedes that rising interest rates, inflation, and economic uncertainty are “fundamentally” changing the operating environment.

She adds: “In the office rental markets, activity has been relatively high in the past year, as companies adjust their space strategies. In the residential rental markets, the increasing supply in the Helsinki metropolitan area mitigates the opportunities for an increase in rents, whereas in the Tampere and Turku regions, rents continue to rise.”

The Norwegian CRE investment

staden, Castellum’s acquisition of Kungsleden and Corem’s acquisition of Klovern. Retail and industrial & logistics have had a strong year, while residential investment volumes have declined sharply amid house price falls. However, office leasing volumes on a rolling 12-month basis have exceeded 700,000 sq m in Stockholm, which is the highest level in the last five years.

“The number of FDIs are now back to similar levels as before the pandemic,” says Staffan Ingvarsson, CEO at Stockholm Business Region. “In terms of our own FDI activities, we have not closed the books yet for 2022, but we see a strong interest in knowledge intensive industries such as impact, tech, life sciences and advanced manufacturing.”

However, Ingvarsson concedes that access to affordable electricity and the availability of the right talent are challenges for 2023.

“It is crucial for investors interested in the Stockholm region to have access to green electricity with a stable cost structure.

market had a very strong start to 2022, with the first quarter the strongest on record, but activity gradually slowed as rising inflation and interest rates introduced added uncertainty and total volumes for 2022 are expected to settle around 30% lower than the record-breaking 2021.

The Nordics’ largest market, Sweden, saw a substantial decrease in investment volumes during 2022, from €28.5bn in 2021 to €14.2bn (as of December 15, 2022). This is partly due to very strong comparative figures in 2021 when several large M&A deals took place such as Akelius’ sale to Heim-

Historically, we have been able to attract investors such as Microsoft, Amazon Web Services and Northvolt, which have been able to access green energy,” Ingvarsson says. “Furthermore, there are still opportunities for energy intensive industries to establish in the Stockholm region, but it is important to have a close dialogue with us at the Stockholm Business Region group about where to establish.” Stockholm has established a strong brand for talent within knowledge-based industries, and these sectors have been a recent focus for the Swedish government, adds Ingvarsson. Another market which has attracted more investment interest is Iceland and the development of 55 sq km of prime land around the country’s main international airport, KEF, should provide opportunities for in-

CONFERENCES & EVENTS AT MIPIM 2023

PARTNER SESSION – PROPERTY & INVESTMENT DENMARK

TUESDAY, MARCH 14, 14.00 - 15.00

– Partner Stage

Organised by Property and Investment Denmark

PARTNER SESSION – BUSINESS ICELAND

WEDNESDAY, MARCH 15, 08.45 - 10.00

– Partner Stage

Organised by Business Iceland

NORDICS: CHALLENGES, OPPORTUNITIES, STRATEGIES

THURSDAY, MARCH 16, 14.30 - 17.00

– Geo Focus Stage

vestors and developers. The new strategic masterplan was created by a multidisciplinary team led by KCAP following an international tender. Kadeco is the development company responsible and will be joining Business Iceland at MIPIM.

Arnar Gudmundsson, head of foreign investments, Business Iceland adds that residential real estate is a special investor focus.

“The capital city Reykjavik and the Minister of Infrastructure have recently signed an agreement on speeding up housing development considerably over the next 10 years, providing at least 16,000 new homes including at Thorpid Vistfelag, developing a fully sustainable neighbourhood,” Gudmundsson says.

Mixed-use development has been increasing and next to Sky Lagoon a seaside neighbourhood is being developed, which will connect directly to the city centre by a planned rapid transit system. “With tourism returning to its former levels in Iceland we are experiencing keen interest from some of the largest international hotel brands,” Gudmundsson says. “We have also seen the development of new domestic concepts such as The Greenhouse, with its unique focus on sustainability, hospitality, adventures and experiences, which is looking to expand into new locations in Iceland. And outdoor geothermal lagoons are among the most sought after experiences, with new projects in the pipeline.”

The ongoing challenge for attracting FDI remains that the Nordic countries are not very large internationally and have traditionally relied on domestic institutional investors, such as the established pension funds and sovereign wealth funds. Recent years have seen more foreign investors and cross-border regional deals and Europe’s most northerly markets will hope for global stability to encourage more international players.

Iceland’s Sky Lagoon is part of its natural charms

“It is crucial for investors interested in the Stockholm region to have access to green electricity with a stable cost structure”

Staffan Ingvarsson

Rising to the challenge

Although few markets are immune to the global trends of interrupted growth, monetary tightening and ongoing inflation, North America’s robust fundamentals are keeping its territories on the map for the foreseeable future. While the US economy could eventually face a technical recession by the fourth quarter, according to JP Morgan forecasts, relatively healthy consumer and business balance sheets are likely to help maintain momentum in its real estate markets. Meanwhile, the country’s vast and diverse opportunities are increasingly drawing investors from even further afield as global funds shy away from Europe’s economic and political problems and seek security in the US’ resil-

ient metrics and strong legal and regulatory frameworks.

“We predict there is going to be more European capital coming to the US, since the economy is almost too strong,” says Riaz Cassum, global head of international capital coverage at JLL “By comparison, Europe has a unique set of challenges given its energy dependence, the war in Ukraine and macroeconomic headwinds.”

The picture in Canada is similar, where resilient cities have maintained impressive fundamentals, despite the last few challenging years. Marie-Eve Jean, vice-president, exports at Investissement Quebec, says: “Canada and Quebec’s real estate markets have soared for the last 20 years, increasing over 300% and outperforming most countries throughout the pandemic.”

Positive dynamics across the Atlantic are drawing the gaze of global investors, keen to get in on the growth story in the US and Canada, writes Isobel Lee

Haleco, an innovative mixed-use scheme from Ivanhoe Cambridge, the City of Montreal, Cogir Real Estate and Pomerleau, is changing the Montreal skyline

Sylvain Giguere, chief economist and head of metropolitan economic development, Montreal Metropolitan Community, says: “Rising interest rates are affecting the real estate market all around the world. Still, the economic outlook for Montreal and Quebec is strong. As of November 2022, 55 construction projects were ongoing on Montreal Island, for a total investment of CAN$28bn (€20bn). Overall, economic growth should continue in 2023, although slower than previous years, with a 0.7 % GDP growth for Canada and Quebec.” Another hallmark of Montreal is its raft of major public transportation infrastructure projects, including highways, bridges and public transit, and several new

Dieudonne Ella Oyono, acting director of economic development service, City of Montreal, says: ”Enterprises in Montreal can tap into green energy, including hydropower — the main source of electricity in the province of Quebec. It is also a business ecosystem fuelled by innovation: Montreal is home to the largest concentration of high-tech jobs in Canada. That is why the city is so well positioned to take advantage of the digital revolution.”

He adds: “Due to its strategic location, Greater Montreal is an intermodal transportation hub. Companies in the region can easily access major markets.”

While real estate investors across the US and Canada have often traditionally favoured long-income office investments, post-pandemic trends have broadened tastes. “Amid ongoing questions around the future of the office and opportunities to work from home, investors are also finding that there is less of an inflationary hedge in offices today,” Cassum says. “Multifamily and logistics are less capital intensive, and multifamily leases reset every year, creating an opportunity to raise rents.”

health-sector projects, all of which are providing a significant boost to growth. Giguere also underlines an increasing focus on ESG improvements. “Montreal is determined to up the pace to make ecological transition a success with its objective to reach zero-emission buildings by 2040.” He adds: “The Montreal Metropolitan Community has just launched a major offensive to upgrade its industrial parks and buildings in Greater Montreal. A revitalisation plan will be drawn up in each of the 14 territoriesl, identifying opportunities to make industrial real estate greener, sustainable, modern and accessible.”

Cassum underlines that operationally intensive multifamily typically requires a management partner on the ground, but interesting geographical dynamics across the US are fuelling international interest in the sector.

“The focus for residential has increasingly shifted away from gateway markets like New York, Boston, San Francisco and LA, and towards the sunbelt where the cost of living is lower and income taxes tend to be more attractive,” he says. Demographic growth in cities such as Austin, Denver, Miami and Nashville are in turn inspiring a slate of buildto-rent developers and investors from further afield.

European developer Trei Real

CONFERENCES & EVENTS AT

TRENDS IN US REAL ESTATE & CAPITAL MARKETS

WEDNESDAY, MARCH 15, 09.15 - 10.15

Estate is one such firm that has moved into US residential. After making an experimental start in Charlotte, North Carolina, six years ago, success in the build-torent (BtR) space has inspired further expansion. Today, the firm is also active in Georgia, Tennessee and Florida, and is looking at Virginia, Washington DC and the suburbs of Maryland. Pepijn Morshuis, Trei CEO, says: “We are focusing on cities where there is a growing base of employers, and continuous pressure on the leasing market with people flocking to those cities.”

Meanwhile, the logistics sector in the US continues to go from strength to strength despite evidence of a slowdown in consumer spending. CBRE has forecast that while US industrial leasing activity is expected to moderate in 2023 as occupiers delay expansion plans and the post-pandemic need to hold additional inventory dissipates, demand should keep up with supply in 2023, leading to a 13th consecutive year of positive net absorption, a near record-low vacancy rate, and solid rent growth.

Cassum says: “We continue to see the return of manufacturing to the US, in line with the deglobalisation trend. For example, a new bill to shift the manufacturing of chips back to the US is set to incentivise the semiconductor industry to occupy factories across North America, including Mexico. While the likes of Amazon are hitting pause on their expansion plans, industrial remains a resilient market.”

US: CHALLENGES, OPPORTUNITIES, STRATEGIES

WEDNESDAY, MARCH 15, 14.00 -16.30

“Most areas of the US economy are not as overextended as in past downturns,” says Richard Barkham, CBRE’s global chief economist and global head of research. “2023 won’t be pleasant, but neither will it be a disaster. The economy will stabilise and start to improve in 2024. The recovery from there might surprise on the upside.”

MIPIM 2023

– Organised by Dechert

– Geo Focus Stage

Investissement Quebec’s Marie-Eve Jean

City of Montreal’s Dieudonne Ella Oyono

“Canada and Quebec’s real estate markets have soared for the last 20 years, increasing over 300%”

Marie-Eve Jean

Montreal Metropolitan Community’s Sylvain Giguere

Strength in diversity

The Asia Pacific region is home to a diverse and increasingly accessible real estate market, with a wide range of property types and a strong demand for space from businesses and investors. Yet against a global picture of soaring interest rates and expensive debt, it perhaps most stands out for its pockets of low inflation and counter-cyclical opportunities shaped by demographic trends.

Although Japan’s markets have been under pressure in recent weeks, inflation has remained below 4%, making it virtually unique in the developed world.

While that remains higher than the Bank of Japan’s target figure of 2%, it has enabled the central bank to maintain interest rates at -0.10% since 2015.

Jon Tanaka, head of Japan for Hines, says: “The Japanese banking sector is healthy and continues to offer attractive financing to real estate investments. The investment market is deep and liquid, with the largest public and private REIT sector in APAC, and transaction volumes have remained steady throughout the pandemic.”

“Japan is an anomaly right now,” confirms JD Lai, CEO and CIO, M&G Real Estate Asia.

“One recent office deal in Yoko -

hama was financed at around 1% on a big $700m (€650m) acquisition. You can’t really do that in any other Asian markets at the moment, so we do see a lot of investors piling into Japan.”

The deal cited by Lai backs another surprising fact — the continuing robustness of Japan’s office market. According to M&G research, 70-80% of local employees have return to the workplace in the country in a reflection of its strong corporate culture. Relatively small apartment units also make working from home less appealing. Finally, despite the modest growth metrics, some living sector assets maintain their resil-

While investors in APAC must be prepared for currency risk and vast national differences, the rewards are great for those that pursue evidence-backed strategies, reports Isobel Lee

Forest Logistics Properties’ Hank Hsu

Cutting edge design from the Hangzhou Alibaba Damo Academy in the Nanhu Science Centre District in Yuhang, China

ience. “Looking ahead, as Japan re-opens the borders to visitors, we expect to see a surge in consumer spending, dramatic improvement in hospitality sector fundamentals and a new wave of Asian high net worth investment in residential property,” Tanaka adds.

Australia, traditionally a market in which European and US investors have felt comfortable due to its familiarity and transparency, has had a tougher ride in terms of its macroeconomic markers. Driven by soaring housing values, petrol prices and even grocery hikes — due to floods spoiling crops — inflation hit 7.3% towards the end of

which have seen a wave of enrolments from Asian students who might have headed to Europe or the US in the past. Many more young people are migrating to its cities in search of work.

Lai adds: “While we do see a declining population trend in Japan, Australia’s gateway cities are experiencing different dynamics. From Sydney to Melbourne, Canberra to Brisbane, young people are moving into urban areas and they need housing.”

Another fund which sees potential in Australia’s demographics is pan-Asian player SC Capital Partners. The firm’s founder, Suchad Chiaranussati, says: “We have an interesting senior-living strategy in Brisbane and Gold Coast, Australia, and a PanAsian data centre platform. We continue to look at new opportunities emerging from the digital industries.”

2022, although a slowing economy in the winter months has flattened the curve.

Lai says: “In both Japan and Australia, young professionals are struggling to get on the housing ladder. So, over the last few years we have been accumulating a portfolio of multifamily housing which is currently worth around AUD$1bn (€640m). In Australia, we’ve created a AUD$450m buy-to-rent venture with Novus to capitalise on this trend.”

While the global slowdown in migration post-COVID lingers particularly in Asia, where there have been some of the toughest border re-opening policies, the trend has played into the hands of Australia’s universities,

However, Chiaranussati warns that investors should remain aware of Asia’s vulnerabilities. “Rising interest rates, especially in Hong Kong, South Korea and Australia, are affecting the real estate markets, while extended lockdowns in China have slowed down its economy, impacting offices and retail in particular,” he says. “Only data centres and logistics are really weathering the storm there. Meanwhile, Japan and Singapore may be a little more sheltered, but the currencies are vulnerable.”

As ever, the smartest investment strategies are about negotiating the downsides while finding pockets of growth. Hank Hsu, co-founder and CEO of Forest Logistics Properties, says that his firm has continued to make tracks in China by keeping faith in its warehouse market. “Overall, logistics real estate is still one of the best performing asset classes in China, driven by the largest ecommerce sales from the world’s second largest economy,” Hsu says. “We do believe

that as pandemic controls are gradually eased, China, as the world’s largest consumption and manufacturing country, will experience even greater growth in rental growth and capital value.” Due the Chinese government’s restrictive land-supply policy, it has become more difficult to purchase suitable sites for logistics developments in the country. Yet Hsu says that Forest has been able to acquire some of the best located sites at lower-than market entry costs, due to its track record. Meanwhile, the occupier landscape in China remains diverse and in growth mode. “3PLs, ecommerce, retailers and manufacturers are the main logistics occupiers, with 3PLs and ecommerce together accounting for more than twothirds of logistics warehouses, with growing manufacturing and cold storage sectors.”

Other investors see value in pursuing strategies in the region’s emerging markets, although expertise is essential. Hines Asia’s CEO, Ray Lawler, links the recent of opening of its Vietnam office to “significant opportunity” in the country. “We see strong manufacturing and supply chain fundamentals coupled with a desire of many occupiers to further diversify themselves throughout the APAC region. Favourable Vietnamese demographics and strong economic growth prospects also point to reasons for our entry. Finally, there is a desire by some of our capital partners to invest in HCMC and Hanoi and we are keen to form strategic partnerships with them.”

Lawler adds: “By balancing markets and geographies, we can provide our investors with options depending on where they want to be on the risk curve. And in any investment we pursue, we must have multiple ‘dials to turn’ at the asset level. It’s no good just praying for rental growth.”

CONFERENCES & EVENTS AT MIPIM 2023

FOCUS ON JAPAN WEDNESDAY, MARCH 15, 09.45 - 10.30 – Geo Focus Stage

“The Japanese banking sector is healthy and continues to offer attractive financing to real estate investments”

Jon Tanaka

Hines ‘Jon Tanaka

Forest Logistics builds on its ambitions in Shanghai

WE LOOK FORWARD TO WELCOMING YOU IN CANNES, BUT FIRST HERE ARE SOME TIPS TO PREPARE YOUR JOURNEY TO MIPIM

MIPIM

14-17 MARCH 2023 - Palais des Festivals, Cannes, France

14 March: Welcome Reception

7:30pm

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 MIPIM Online Platform 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.

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 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.

SAFETY AND WELLBEING OF OUR GUESTS :

• Information regarding MIPIM’s safety measures and access conditions are regularly updated in the Practical info section of the MIPIM website.

ONSITE: MEET DECISION MAKERS AND GET AN OVERVIEW OF THE MARKET TRENDS

WELCOME RECEPTION

Sponsored by:

Tuesday, 14 March, 7:30pm

Open to all

NETWORKING EVENTS

• Matchmaking sessions

• Thematic networking events

CONFERENCE PROGRAMME

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

MIPIM AWARDS CEREMONY

Thursday, 16 March, 6:30pm - 7:30pm Grand Auditorium

ONSITE SERVICES

VISITORS’ LOUNGE (Palais -1)

• Intended for participants without a stand

• Include a meeting area, hostesses to help organise your meetings and free coffee

PRESS CLUB (Palais 5)

• Dedicated to journalists

• Includes computers, Internet connection, printers and the assistance of a permanent staff member

VIP CLUB (Palais 3)

Sponsored by :

• Exclusive club, by invitation only

• Includes refreshments and a dedicated staff

EXCLUSIVELY IN CANNES (Palais -1)

For the first time at MIPIM, a dedicated zone with more than 400 sqm to help the industry accelerate on the road to net zero, where corporates, cities, investors & innovation will showcase pragmatic cases and solutions.

(Palais -1)

The 1,000 sqm Propel Station 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.

OPENING TIMES

Croisette zone

C10 Bouygues Immobilier

C12 Paris Region

C14 London Stand

C14 bis Invest Saudi

C15.A1 West Midlands

C15.A2 Manchester

C16.A Egypt Pavilion

C16.D GV Investments

C16.E Otis

C16.F Investment Promotion Agency Qatar

C17.A CBRE

C17.B Patrizia

C19 MIPIM Croisette Village

C20.A APEX

C20.B Estate Gazette

14 to 16 March: 9:00am - 7:00pm

17 March: 9:00am – 3:00pm access from 8:30 for Exhibitors

MIPIM INFLUENCES AND ACCELERATES THE TRANSFORMATION OF THE BUILT ENVIRONMENT

GREATER IMPACT

BETTER PLACES

STRONGER BUSINESS

In crafting a unique urban festival during 4 days in Cannes, MIPIM influences and accelerates the transformation of the built environment.

MIPIM is a catalyst for concrete solutions combining face to face discussions, thought leadership, development opportunities and global capital to drive change.

We connect and inspire the international real estate community to create more sustainable, liveable and prosperous places for all.

Our conferences programme has been developed with the support of Real Estate Balance to improve diversity and representation across the programme.

This is where inspirational leaders come and share their story and their perspectives, in an intimate setting

From office to residential, from healthcare to logistics and hospitality… Be sharp!

Let’s dig into the state of adjacent industries (energy, transport, water, waste, culture, data centres…) and their impact on real estate

A deep dive into local markets, various formats to gain insights as well as new connections.

Be pragmatic! No buzz, no dreams, just the most pragmatic approach to industry challenges.

Stage co-organised with C-Change.

Content partners are WBGCSD and WGBC.

How did you do this?

Use cases, return on experience and collaboration stories take the stage here.

THE LEADERS’ PERSPECTIVE STAGE ASSET CLASS STAGE

GEO FOCUS STAGE

MAKE IT HAPPEN STAGE

INFRASTRUCTURE STAGE

ROAD TO ZERO STAGE

Gold sponsor

Silver sponsor

CONFERENCE’S SPONSORS AND PARTNERS

GLOBAL CONFERENCE PROGRAMME SPONSOR

RE-INVEST

PLATINUM SPONSOR

ROAD TO ZERO

EQUALITY OF OPPORTUNITIES IN REAL ESTATE SPONSOR

CO-ORGANISER

OPENING CEREMONY SPONSOR

HEALTHCARE GLOBAL SPONSOR

VIP LOUNGE SPONSOR

LOGISTICS WORKSHOP SPONSORS

SPONSORS

HOSPITALITY LUNCH SPONSOR

THE LOGISTICS PRE-OPENING DRINKS EVENT SPONSOR

realasset MEDIA

CONFERENCE’S SPONSORS AND PARTNERS

AWARDS’ SPONSOR

SPEAKERS

OPENING KEYNOTE - 14 MARCH 15.00-16.00

JEREMY RIFKIN

Economic and Environmental Thought Leader

VÉRONIQUE BÉDAGUE CEO NEXITY

What cities of the future will look like

ISABELLE SCEMAMA Global Head, Alts AXA IM ALTS

Realising the ‘E’ in ESG

SANMI ADEGOKE CEO REHOBOTH PROPERTY INTERNATIONAL

BEN BANNATYNE President of Prologis Europe PROLOGIS

LUCA BOVONE Founder & CEO HABYT

STEWART BRITTON

Client Account Director BMI GROUP

MANFREDI CATELLA Founder & CEO COIMA

WUN HING DONALD CHOI Executive Director and Chief Executive Officer CHINACHEM GROUP

ANNA COHEN Fund Manager EXTENDAM

RICHARD CRADDOCK

Managing Director, Debt Investments LASALLE INVESTMENT MANAGEMENT

RUTH DUSTON Managing Director PRIMERA CORPORATION

CRISTINA GAMBOA CEO

WORLD GREEN BUILDING COUNCIL

Realising the ‘S’ in ESG

HENNING KOCH CEO

COMMERZ REAL AG

Reenergising cities for the future

VALERIE VAUGHAN-DICK Chief Executive Officer

THE ROYAL INSTITUTE OF BRITISH ARCHITECTS

Property’s responsibility on sustainability

SIMON ALLFORD RIBA President ROYAL INSTITUTE OF BRITISH ARCHITECTS

JOERI BENEENS CEO BENEENS BOUW EN INTERIEUR

UMBERTO BORZI Partner CHIOMENTI

MIKKEL BÜLOW-LEHNSBY Chairman NREP & 2150

MICHELE CECCHINI Head of Public Health OECD

LAURA CITRON CEO LONDON & PARTNERS

PETER COSMETATOS CEO CREFC EUROPE

ADINA DAVID Executive Director MGT INVESTMENT MANAGEMENT

COURTNEY FINGAR

Editor-in-chief INVESTMENT MONITOR

SERRA ATAMAN Director of Public Art MTART AGENCY

KWASI BENNEH

Managing Director, Head of North America Commerical Real Estate Lending MORGAN STANLEY

SUE BROWN Managing Director REAL ESTATE BALANCE

SUSAN THAMS CARRUTH Partner GXN INNOVATION

SÉBASTIEN CHEMOUNY

Head of France, Co-Head of Asset Management Europe ALLIANZ REAL ESTATE

GREG CLARK

Urbanist & Author GREG CLARK

RICHARD COUTTS Director BACA ARCHITECTS

GRÉGOIRE DE LASTEYRIE

Président de l’Agglomération Paris-Saclay, Maire de Palaiseau AGGLOMÉRATION PARIS SACLAY

DAVID FORTI

Co-Chairman Elect, Co-Chair, Global Finance and Real Estate DECHERT LLP

CHRISTINE FRITZ Executive Director, Portfolio Manager PGIM REAL ESTATE GERMANY AG

JOHN GLADSTONE

Head of Healthcare Investment, International Capital Markets EMEA JLL

GHISLAINE HALPENNY Director of ESG & Corporate Affairs REGAL LONDON

KAT HANNA Director, Strategic Advisory and Place Strategy AVISON YOUNG

JESÚS HUERTA Group Key Account Manager BMI

ANNALISE JOHNS Healthy Places MERTON COUNCIL

ROLAND KARTHAUS Progamme Lead, infrastructure DESIGN COUNCIL

ALEXANDRE LAIDET European Hotel Segment Leader SCHNEIDER ELECTRIC

SCOTT LEIBOLD EVP and Global Head of Purchasing & Property RELX

DRAGANA MARINA Head of Research & Data Intelligence, Denmark Sustainability Research Lead, Continental Europe CBRE

DR. LEONARD MEYER ZU BRICKWEDDE President & CEO KENSHO INVESTMENT CORPORATION

MAHDI MOKRANE

Head of Global Investment Strategy, Research & Investment Solutions PATRIZIA

PEDRO MOREIRA President ASSOCIAÇÃO BRASILEIRA DE LOGÍSTICA

BELIT ONAY Mayor of the City of Hannover CITY OF HANNOVER

NADINE GELKE Director Real Estate BARINGS GMBH

ALEX GRIFFITHS Managing Director, European Head of Ratings FITCH RATINGS

LIZ HAMSON Editor-in-chief of BE News BE CONTENT SOLUTIONS

JOHN HATTON

Managing Director, Head of EMEA Real Estate FITCH RATINGS

STEPHANIE HYDE Chief Executive UK, JLL JLL

ANDREEA KAISER Group CEO ALFA DEVELOPMENT

SEITA KISANUKI Group Manager, Global Housing Construction and Real Estate Division SUMITOMO FORESTRY CO.,LTD.

LARISSA LAPSCHIES CEO IMMOBILIENJUNIOREN GMBH

AMBER LUSCOMBE Senior Development Manager OXYGEN ASSET MANAGEMENT

STEFAAN MARTEL Managing Director BOPRO SAS

CHRISTOS MISAILIDIS Chief Strategic Partnerships Officer BLUEGROUND

TIM MOONEN Managing Director THE BUSINESS OF CITIES

JEAN-JACQUES MORIN Deputy CEO ACCOR

JUAN MANUEL ORTEGA CIO INMOBILIARIA COLONIAL SOCIMI, S.A.

PHILIPPA GILL Executive Director EVORA GLOBAL

ARNAR GUDMUNDSSON

Head of Foreign Direct Investments BUSINESS ICELAND - INVEST IN ICELAND

JEAN-PIERRE HANIN CEO COFINIMMO

TARA HEUZÉ-SARMINI Cofounder & CEO COMMUNE COLIVING

DAVID IRONSIDE Fund Manager LASALLE INVESTMENT MANAGEMENT

STYRMIR BJARTUR KARLSSON Managing Director CROISETTE REAL ESTATE PARTNER - ICELAND

ANNA KLAFT Sales Director EMEA CBRE / Chairwoman GDA CBRE

MICHAEL LASCHER Senior Managing Director BLACKSTONE

JULIE MANNING Global Head of Climate & Carbon Strategy LASALLE INVESTMENT MANAGEMENT

KANJI MATSUSHITA General Manager TAKENAKA CORPORATION

FOKKE MOEREL Partner | Architect | Studio Director MVRDV

SADIE MORGAN Founding director DRMM

JOHN O’DRISCOLL Global Co-Head Real Estate AXA IM ALTS

DAVID PARTRIDGE Chairman RELATED ARGENT

SPEAKERS

ROB PERRINS Chief Executive BERKELEY GROUP

ANDY PYLE Head of Quality & Risk Management - Deal Advisory KPMG

TIMOTHÉE RAULY Global Co-Head Real Estate AXA IM ALTS

ROBIN RIVATON CEO STONAL

MARC SAMPIETRO

Head of European Student Living Operations HINES

ANDREW SISSONS Managing Director AND LONDON

DAMIEN SOLER Group Key Account Director BMI GROUP

Dr. THOMAS STEINMÜLLER Representant AFILOG INTERNATIONAL c/o CAPTEN AG

FLORIAN TROESCH VP Transit Management & Digital Ecosystem SCHINDLER ELEVATOR LTD.

JUHANA VARTIAINEN Mayor of Helsinki CITY OF HELSINKI

BRADLEY WEISMILLER Managing Partner, Real Estate Capital Markets BROOKFIELD ASSET MANAGEMENT

LUKAS WILLHOEFT Development Director THE EMBASSIES OF GOOD LIVING AG

GUY PERRY President of DevCo DIRIYAH GATE DEVELOPMENT AUTHORITY

PALMI FREYR RANDVERSSON

Managing Director

KADECO - KEFLAVIK AIRPORT DEVELOPMENT COMPANY

JACK RENTERIA

Director of Living Concepts ALFA DEVELOPMENT

STEVE ROTHERAM

Metro Mayor of the Liverpool City Region LIVERPOOL CITY REGION COMBINED AUTHORITY

KARIN SHEPPARD

SVP, Managing Director Europe IHG

NEIL SLATER Global Head of Real Assets ABRDN

ALESSANDRO SPARACO Founding Partner THREESTONES CAPITAL S.A.

CLARE THOMAS Partner CMS

PIOTR UŚCIŃSKI

Secretary of State MINISTRY OF ECONOMIC DEVELOPMENT AND TECHNOLOGY

STEVEN WARE Architect partner ARTBUILD

DAMIAN WILD Managing Director ING MEDIA

CAMIL YAZBECK

Global Chief Development Officer – Premium, Midscale & Economy division ACCOR

AMY POOSER President and Chief Operating Officer CONVENE

CARLO RATTI

Co-Founder CRA CRA - CARLO RATTI ASSOCIATI

CATHY REYNOLDS

Director of City Regeneration & Development, Belfast City Council BELFAST CITY COUNCIL

SILVIA ROVERE President ASSOIMMOBILIARE

REMIGIJUS ŠIMAŠIUS Mayor of Vilnius VILNIUS CITY MUNICIPALITY

PASCAL SMET State Secretary

GOVERNMENT OF THE BRUSSELS - CAPITAL REGION

CHRIS STAVELEY

Head of EMEA Office International Capital Markets, EMEA JLL

SVERRIR THOR Partner FRAGA LOU AB

JEROEN VANDER BEKEN Managing Director NEY & PARTNERS

ED WARNER Founder & CEO MOTIONSPOT

TED WILLCOCKS President & CEO TRIOVEST

ROBBERT ZOET Managing Director REDEVCO

13.00 - 22.00

Grand Auditorium Stage and Verrière Grand Audi MIPIM Co-Liv Summit

In partnership with

14.00 - 14.30

Where we are today

14.30 - 15.00

The future of coliving

15.00 - 15.20

Strength in its flexibility and multiplicity

15.20 - 16.00

Investing in coliving and how to innovate to succeed

16.30 - 17.30

Coliving tour showcase

17.30 - 18.30

Networking village

18.30 - 19.00

Exploring the growing coliving appetite

16.00 - 22.00

Carlton Stage

The RE-Invest Opening & Evening Dinner

CLOSED-DOOR EVENT by invitation only1

Platinum sponsor

Gold sponsors

Dinner sponsor

Carlton Stage

The RE-Invest Summit

Platinum sponsor

Gold sponsors Breakfast sponsor

Carlton Stage RE-Invest Thought Leaders’ Lunch

Platinum sponsor

Gold sponsors

London Stage (C14) Investment opportunities in London’s life sciences sector

London Stage (C14) Financing London’s decarbonisation

18.00 - 22.00

Audi A and Foyer Balcon Debussy

The Logistics Pre-Opening Drinks Event

Sponsored by

London Stage (C14)

Keynote – What is the money doing?

EG Pavilion (C20)

Invest City Focus: How are UK Cities equipping the enormous potential of People, Culture, Places and Spaces

EG Pavilion (C20)

City and growth: Opportunities for investment and partnerships

EG Pavilion (C20)

EG spotlight: Environment

Create a better future for business, society and the natural world.

1. Only MIPIM team can issue invitations to this event

14.00 - 14.30

Setting the agenda - Macroeconomics: What’s next?

14.00 - 14.45

Financing ESG Impact projects: Investor perspectives

Sponsored by

14.00 - 14.45

Revolutionary infrastructure to help realize tomorrow’s cities

Sponsored by

14.00 - 15.00

Accelerating the progress to a net zero carbon future

Sponsored by

16.15 - 17.15

ULI: Emerging Trends in Global Real Estate in 2023 and Beyond

16.00 - 18.00

Organised by

The Healthcare Workshop Healthcare Global sponsor

16.15 - 17.15

Invest in Madrid: New Urban Developments

Organised by

14.00 - 14.45

Germany: Challenges - Opportunities - Strategies

14.00 - 14.45

Future of the capital’s industrial and logistics market

13.00 - 13.45

The UK’s life sciences eco system: Clusters and collaboration

JEREMY RIFKIN Economic and Environmental Thought Leader

16.00 - 17.30

Hôtel Barrière Le Majestic - Salon Diane The Political Leaders’ Summit

CLOSED-DOOR EVENT by invitation only1

15.00 - 15.45

infrastructure investment

14.00 - 14.45

Learning from global cities

14.00 - 15.00

Partner Session: Property and Investment Denmark

Organised by

16.15 - 17.00 EG Interview

16.00 - 17.00

Partner Session: Retal Poland: Opportunities for International Investors. Latest trends, prospects & challenges

17.45 - 19.45

13.30 - 14.15 European Living Investment realasset MEDIA

Organised by

14.30 - 15.15 European Logistics Investment realasset MEDIA

15.30 - 16.15

Organised by

Organised by 16.00 - 17.30

Table ronde des partenaires

European Debt Finance & Investment realasset MEDIA

16.30 - 17.00

Key Trends, Capital & European Investment Opportunities realasset MEDIA

Organised by

10.15 - 10.45

Reenergising cities for the future

Sponsored by

10.30 - 13.00

10.00 - 10.45

The Residential Workshop Partnerships enabling early regeneration through impact projects

Energy crisis disrupting the real estate: industry impact and stakeholders

Sponsored by

ROAD

11.30 - 12.00

Property’s responsibility on sustainability

12.30 - 13.30

Spanish ConferenceGreen Investment in Spain: sustainability and profits

Organised by

Sponsored by

11.15 - 12.45

Italian real estate: growth embraces quality and uncertainty

11.30 - 12.15

Transport: Bridging the E, the S, and the G with mobility

09.45 - 10.45

Building the business case for decarbonisation of real estate

09.15 - 10.15

US Trends in US real estate and capital markets

Organised by

Organised by

11.30 - 12.30

Connecting occupiers and landlord to decarbonise

11.00 - 12.00 Forum des élus

CLOSED-DOOR EVENTS by invitation only1

08.45 - 10.00

Hôtel Barrière Le Majestic Investors Breakfast

CLOSED-DOOR EVENT by invitation only1

10.00 - 11.00

Building Tomorrow Stage - Propel Area (P-1) Fishbowl - Time to scale: How can we encourage the scaling up of promising solutions?

12.15 - 14.00

TBD Outside Palais Forum des élus - Lunch

CLOSED-DOOR EVENT by invitation only1

08.45 - 10.00

Opportunities in the Nordics: Focus on Iceland

09.45 - 10.30

Focus on Japan – host country of G7 Summit 2023: Challenges – Opportunities – Strategies

10.00 - 10.45 Investment in the new workplace

10.00 - 10.50

Invest City Focus: How are UK Cities equipping the enormous potential of people, culture, places and spaces

10.50 - 11.15

Organised by

11.00 - 13.30

CEE: Challenges - Opportunities - Strategies

11.00 - 11.45

Reaching net zero in global cities

City and growth: Opportunities for investment and partnerships

11.30 - 12.00

EG spotlight: Economy Explore the key trends driving the UK’s commercial real estate economy and shaping the future

11.00 - 12.00

The road to net zero starts at material selection Organised by

11.15 - 12.15

Partner Session : Schneider Electric

Organised by

13.00 - 13.45

UK Cities Investor Guide launch.

Unlocking the power of public and private collaboration in UK Cities

14.00 - 14.30

Realising the ‘E’ in ESG

14.00 - 16.30

The Logistics Workshop Simple solutions to adapt cities to heat waves

Sponsored by

15.00 - 15.30

Realising the ‘S’ in ESG

-

Realising affordable and sustainable housing

16.00 - 16.30

What cities of the future will look like

Sponsored by

Water: Increasing cities and buildings’ resilience to scarcity and heatwaves

14.00 - 15.00

Harnessing innovation to accelerate to net zero

14.00 - 16.30 Forum des élus

Sponsored by

17.00 - 18.30

Partner Session: ITA ICE

17.15 - 19.15

Equality of opportunities in Real Estate

- 17.30

Fostering community and inclusion through urbanism

CLOSED-DOOR EVENTS by invitation only1

17.15 - 18.15 Barcelona Catalonia Conference

Organised by

Organised by ITA ICE

Sponsored by

14.00 - 16.30

US: Challenges - Opportunities - Strategies

14.00 - 14.45

How can social value be defined and measured?

14.00 - 14.45

Will governance save us from environmental and social challenges or does leadership have an even bigger role to play?

15.00 - 15.45

London’s affordable housing market

16.00 - 17.15

EG Interview: UK political environment

16.30 - 17.30

The race to innovate smarter, healthier and sustainable cities

14.45 - 15.45

Inventing Greater Paris Metropolis 3: leverage effect of dynamization and development for metropolitan cities.

Organised by

Organised by

10.30 - 13.00

10.00 - 10.45

Measuring Impact: how to measure, report and embed ESG into your operations

ROAD

From CSR to Creation of Shared Value: Businesses’ role in driving social and environmental agenda

10.00

Cultural Infrastructure: Why do we need it?

09.45 - 10.45

How to establish a fair and just net zero transition?

10.00 - 11.00

The Barcelona Green Deal: New investment opportunities

Sponsored by

Organised by

MIPIM PREVIEWFEBRUARY 2023 90

11.30 - 12.30

Building investment leadership for change

10.00 - 10.45

France: Challenges - Opportunities - Investment Trends and Priorities

10.00 - 10.45

How can Central London’s culture and dynamism attract investment?

09.30 - 10.30

How is ESG profoundly transforming real estate organizations?

10.00 - 11.00

Building Tomorrow Stage - Propel Area (P-1)

Fishbowl - Smart cities vs Low Tech cities : quel modèle pour l’avenir de nos villes?

11.00 - 11.45

The future of UK City centres and London’s role

10.00 - 10.50

Invest City Focus: How are UK Cities equipping the enormous potential of people, culture, places and spaces

10.50 - 11.15

City and growth: Opportunities for investment and partnerships

11.30 - 12.00

EG spotlight: Diversity & Inclusion. The quest for a diverse and inclusive sector: Picking up the pace

08.45 - 10.30

Lebanon: Redefining the business environment and mobilizing investments in safe mode

12.00 - 12.20

Europe’s emerging trends and London’s position

13.00 - 13.45

Using proptech to explore and improve the most interesting, impactful and profitable issues in our sector

11.15 - 13.15

Forum

Organised by

Organised by

Organised by

Suisse

14.00 - 14.30 14.00 - 16.30

Creating

15.45 - 16.45

A Net-Zero Blueprint for Buildings of the Future Organised by

14.00 - 14.45

Data centers: How can they be more sustainable in construction?

Sponsored by

14.00 - 14.45

Net zero and then?

15.30 - 16.30

Partner Session: Otis

Organised by

14.30 - 17.00

Nordics: Challenges - Opportunities - Strategies

14.00 - 14.45

How can retrofitting ensure the avoidance of stranded assets?

12.30 - 14.00

Majestic - Salon Croisette Hospitality Lunch

Sponsored by

CONFERENCES & EVENTS 2023

18.30

Grand Auditorium MIPIM Awards Ceremony

15.00 - 15.45

The next generation’s ambitions

14.00 - 14.45

Resilient London: Economic recovery and transformation

CLOSED-DOOR EVENT by invitation only1

16.15 - 17.00 EG Interview

14.00 - 16.00 The Credit Perspective 2023 and Beyond

Organised by

17.00 - 18.30 APEX cocktail

Organised by

THURSDAY 16 MARCH 2023 FROM 18.30

GRAND AUDITORIUM, PALAIS DES FESTIVALS

MIPIM AWARDS CEREMONY

FOLLOWED BY A COCKTAIL RECEPTION OPEN TO ALL PARTICIPANTS

DISCOVER THE MIPIM AWARDS

President of the jury

François TRAUSCH

Allianz Real Estate

Global CEO & CIO

Véronique BEDAGUE

Nexity CEO France

Stéphanie BENSIMON

Ardian France

Head of Real Estate France

Kai-Uwe BERGMANN

Bjarke Ingels Group Partner Denmark

Aaron BLOCK Metaprop

Co-founder & Managing Partner US

Mikkel BULOW LEHNSBY NREP & 2150

Chairman & Founder Denmark

Akim DAOUDA FGIS CEO Gabon

Hala EL AKL Oxford Properties

Senior Director of ESG & Operations UK

Guy GRAINGER JLL

Global Head of Sustainability Services & ESG UK

Ann GRAY RICS President UK

Karim HABRA

Ivanhoe Cambridge Head of Europe & Asia-Pacific France

Regine LEIBINGER

Barkow Leibinger Partner Germany

Katarzyna ZAWODNA-BIJOCH

Skanska Commercial Development Europe

President & CEO, CEE Region

Poland

MIPIM Awards 2023

Shortlists unveiled for 2023 MIPIM Awards

The entries are in, the jury deliberation is complete, and now it is over to the MIPIM delegates to choose the top projects of 2023 from the real estate world. From a large selection of entries, the MIPIM Awards jury, chaired by Allianz Real Estate Global CEO & CIO François Trausch, has drawn up a shortlist of three or four projects in each of 11 categories:

• Best Alternative Project

• Best Cultural, Sports and Education Project

• Best Hospitality, Tourism and Leisure Project

• Best Industrial & Logistics Project

• Best Mixed-use Project

• Best Office & Business Project

• Best Refurbished Building

• Best Residential Project

• Best Urban Regeneration Project

• Best New Development

• Best New Mega Development

The winners will be chosen on a 60:40 basis: 60% based on the jury vote, and 40% from the votes cast on-site by MIPIM delegates. In addition, the jury of real estate experts from around the world have the right to award one extra prize – the ‘Special Jury Award’, which goes to their favourite project amongst all the entries considered.

Be sure to visit the Awards Gallery, in the Palais des Festivals, between 9am on Tuesday 14 March and 12pm on Thursday 16 March to view the shortlisted entries in more detail and to cast your vote.

Don’t forget to put a note in your diary for the awards ceremony at 6.30pm on Thursday 16 March in the Grand Auditorium.

AGENDA

MIPIM AWARDS ONSITE VOTE

At the Awards Gallery

From Tuesday 14 March (9.00) to Thursday 16 March (Noon)

AWARDS GALLERY, PALAIS -1

MIPIM AWARDS CEREMONY

Thursday 16 March (from 18.30)

GRAND AUDITORIUM

Followed by a cocktail, open to all participants

Best Alternative Project

Sponsored by

Circularium

Brussels, Belgium

Architect: 51N4E

Developer: -

Other: D’Ieteren Immo (Investor)

Deloitte University

EMEA

Bailly-Romainvilliers, France

Architect: Dubuisson Architecture

Developer: Nexity

Roche Diagnostics

Strategic Master Planning

Multiple (Tucson, Suzhou, San Cugat), Multiple (U.S.A., China, Spain)

Architect: Skidmore, Owings & Merrill (Master Planner & Architect Suzhou, China Location), ZGF Architects (Tucson, Arizona location), battleiroig (Barcelona, Spain Location)

Developer: Roche Diagnostics

Other: TAISEI CORPORATION

Scholen Van Morgen

Flanders, Belgium

Architect: 70 different national (BE) and international (UK, IRL, NL, D,...) architects

Developer: Flemish Government (Ministry of Education)

Other: 40+ MEP and 40+ structural engineering companies ; 20+ general contractors

Best Cultural, Sport & Education Project

Al Wasl Plaza

Dubaï, United Arab Emirates

Architect: Adrian Smith + Gordon Gill Architecture

Developer: Expo 2020 Dubai LLC

Other: The client was Expo2020 Dubai, LLC; the Design Architect was Adrian Smith + Gordon Gill Architecture; the Architect of Record was e.construct LLC and The Fraser Nag Partnership; the General Contractor was Laing O’Rourke; the Structural Engineer was Thornton Tomasetti; MicroClimate was handled by Klimaat; the Civil Engineer was Langan International; the Landscape Architect was SWA Group; the Immersive Experience was created by Obscura; the Lighting consultant was OVI; Water Features were by Crystal Fountains; Cost Consulting was done by RLB; Wind Studies were conducted by RWDI; the MEP Engineer was Hoare Lea; Façade Access by Altitude; Fire Life Safety by Jensen Hughes Associates; Crowd Modeling was done by MIC; Wayfinding was done by Forcade; Security and ICT was handled through Mediatech; and Waste Management was by Tricon.

Royal College of Art

London, United Kingdom

Architect: Herzog & de Meuron

Developer: Royal College of Art

Hong Kong University of Science and Technology, Guangzhou (HKUST)

Guangzhou, China

Architect: Kohn Pedersen Fox Associates

Developer: Hong Kong University of Science and Technology

Other: SCAD (Architectural Design & Research Institute of South China University of Technology Co., Ltd.) – Local Architect Arup - Structural, MEP/FP, and Civil Engineering, Sustainable Design Ayers Saint Gross - Campus Master Planning Associate, Residential Planning James Corner Field Operations - Landscape Architecture Jacobs - Lab Planning MVA - Traffic & Site Transportation Consultant SCAD - Architect of Record

GZPI - Consultant (China Railway Guangzhou Engineering Group Co., Ltd.) – General Contractor 1 (China Railway First Group Co., Ltd.) - General Contractor 2 Fisher Marantz Stone - Lighting RWDI – Acoustics SMW - Low vibration SMW - Audio-Visual Field Management Services - Electromagnetic Field Cambridge Environmental Research Consultants - Assessment of lab exhaust and kitchen exhaust

The Museum of the Future

Dubaï, United Arab Emirates

Architect: Killa Design

Developer: North 25

Best Hospitality, Tourism & Leisure Project

Banyan Tree AlUla

AlUla, Kingdom of Saudi Arabia

Architect: AW² architecture & interiors

Developer: Royal Commission for AlUla (RCU), in partnership with the French Agency for AlUla Development (AFALULA)

Other: Godwin Austen Johnson (architect of record), EGIS (engineering firm)

Best Industrial & Logistics Project

Havlog - Connecting flows

Le Havre, France

Architect: Les Ateliers 4+

Developer: PRD

New manufacture de haute horlogerie

Hotel Niko

Agios Nikolaos, Crete

Architect: 3XN

Developer: HINES

Audemars Piguet

Le Locle, Switzerland

Architect: Pierre Liechti Architectes

Developer: -

Other: Kunik de Morsier Architectes (Architect & Planner)

Lanserhof Sylt

Sylt, Germany

Architect: ingenhoven associates

Developer: LHS Grund 5 GmbH

Shangri-La Shougang

Park

Beijing, China

Architect: ingenhoven associates

Developer: Lissoni Casal Ribeiro

Panattoni Danfoss

BTO

Warsaw, Poland

Architect: Local design offices from Poland and Denmark

Developer: Panattoni

Passaic Logistics Center

Passaic, New Jersey, United State of America

Architect: KSS Architects

Developer: IDI Logistics

Best Mixed-Use Project

Morland Mixité Capitale

Paris, France

Architect: CALQ Architecture and David Chipperfiel Architect

Developer: Emerige

Best Office & Business Project

425 Park Avenue

New York, USA

Architect: Lord Norman Foster of Foster +Partners

Developer: L&L Holding Company

Other: Tokyu Land Corporation

Msheireb Downtown

Doha

Doha, Qatar

Architect: Fatima Mohamed Fawzy

Developer: Msheireb Properties

Norblin Factory

Warsaw, Poland

Architect: PRC Architekci

Developer: Capital Park Group

Other: Warbud SA, Soletanche, TKT Engineering, Maat4, Monument Service

BIOME

Paris, France

Architect: Agence Jouin MankuYMA / Yrieix Martineau Architecture

Developer: Bouygues Batiment IDF Rénovation Privée

Other: Société Foncière Lyonnaise Agence Laverne Paysagiste (landscaper)

POST Luxembourg Headquarters

Luxembourg, Luxembourg

Architect: METAFORM architects

Developer: Post Luxembourg

Quay Quarter Tower

Sydney, Australia

Architect: 3XN

Developer: AMP Capital

Other: BVN, executive architect; Multiplex, contractor; BG&E, structural engineer; Arup, MEP, civil, & fire engineering, sustainable building design, and vertical transportation; Pier Property Corporation, external project managers

Best Refurbished Building Best Residential Project

Betonsilo

Düsseldorf, Germany

Architect: ingenhoven associates

Developer: harbour properties

Collegium

Zottegem, Belgium

Architect: Studio Farris Architects

Developer: Vanhout Projects

Hospitalment

Yotsuyadaikyocho

KB32

Copenhagen, Denmark

Architect: Vilhelm Lauritzen Architects

Developer: Genesta

Tokyo, Japan

Developer: Hulic Co., Ltd.

Architect: NIKKEN HOUSING SYSTEM LTD

Other: Sakurajyuji Co., Ltd. (Operator), TAISEI U-LEC Co., Ltd. (Architect+Contractor)

Metal 57

Boulogne-Billancourt, France

Architect: Dominique PERRAULT

Architecture

Developer: BNP Paribas Immobilier

Other: Investors: CDC Investissement

Immobilier & Assurances du CREDIT MUTUEL

One Park Drive

London, UK

Architect: Herzog & de Meuron

Developer: Canary Wharf Group

Procuratie Vecchie

Venice, Italy

Architect: David Chipperfield Architects

Milan

Developer: Generali Real Estate

Sluishuis

Amsterdam, The Netherlands

Architect: Bjarke Ingels Group (BIG) & BARCODE Architects

Developer: Vorm Ontwikkeling B.V.

Other: BESIX (BESIX Group), VORM Bouw

Best Urban Regeneration Project

Atelier Gardens

Berlin, Germany

Architect: MVRDV

Developer: Fabrix

Other: Hirschmuller Schindele

Architekten (Local Architect) / Harris Bugg Studio (Landscape Design) / Drees & Sommer (Project Manager) / Buro Happold (M&E) / Hati (Water Management) / KPM3 (Contractor)

Galataport Istanbul

Istanbul, Turkey

Architect: Masterplanning: Dror + Gensler, Cruise Planning Consultant: BEA, Facade Design and Creative Consultants, Tanju Ozelgin and Arif Ozden of TO Studio, Architect of Record: Norm Mimarlik • Interior Designer of the Terminal: Autoban • Interior Designer of the Peninsula Istanbul: Zeynep Fadillioglu Design

Developer: Dogus Group, BLG Capital

Norblin factory

Warsaw, Poland

Architect: PRC Architekci

Developer: Capital Park Group

Other: Warbud SA, Soletanche, TKT Engineering, Maat4, Monument Service

Best New Development

Confluence –B1 C1 Nord

Lyon, France

Architect: Baumschlager Eberle Architects, PetitDidierPrioux Architects, Atelier de ville en ville

Developer: Nexity

Other: AIA Environnement, AIA Ingéniérie, MOZ Paysage

Fuse Valley

Matosinhos, Portugal

Architect: BIG - Bjarke Ingels Group

Developer: Castro Group & Farfetch

Other: Farfetch; Ventura+Partners

Paper Factory Dalum

Odense, Dalum, Denmark

Architect: C.F. Møller Architects

Developer: MT Højgaard Project Development

Other: SLA (Landscape Designer), UDG (Local Design Institute), Arup (MEP Engineer), Inhabit (Facade Consultant), CSCEC (contractor)

Roots in the Sky

Shunde OCT Harbour PLUS | Shunde Joy

Marina

Foshan, China

Architect: Shenzhen Huahui Design Co.,Ltd. and Laguarda Low Architects

Developer: OCT Development Co., Ltd.

Other: Art Spring Design Group

Shenzhen

London, United Kingdom

Architect: Sheppard Robson

Developer: Fabrix

Others: Harris Bugg Studio (Landscape Design) / Gerald Eve (Planning Consultant) / AKT II (Structural Engineer) / Atelier Ten (MEP & Sustainability Consultant) / Gardiner & Theobald (Project Manager) / Quantem (Cost Consultant) / Knight Frank (Leasing Agent) / Mace (Main Contractor) / Erith (Enabling Works Contractor)

Best New Mega Development

Bosque Metropolitano

Madrid, Spain

Architect: Madrid City Council Urban Development Area

Developer: Madrid City Council Urban Development Area

La Baie des Rois

Libreville, Gabon

Architect: FMCT is the master planner of the project

Developer: FMCT and private partners

Four Frankfurt

Frankfurt am Main, Germany

Architect: UNStudio

Developer: Groß & Partner Grundstücksentwicklungsgesellschaft mbH

Parc De L’alba · Cerdanyola Del Vallès (Barcelona)

Barcelona, Spain

Architect: INCASÒL

Developer: INCASÒL

Meet local strategic players to develop your business in Grand Paris and explore unique real estate opportunities.

3-day conference program

30 conferences on our main topic: heritage & innovation.

50 VIP speakers Pavilion

C12

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