MIPIM 2022 Preview Magazine by RX REAL ESTATE SHOWS

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The official magazine

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PREVIEW

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20 MIPIM Driving

Urban Change: Transformation time

41 Focus on tech

& innovation: Propel by MIPIM

76 Your complete

guide to MIPIM 2022

LOOKING FOR A NEST? Building a sustainable future together STAND: C16 www.opportunityegypt.com @Egypt_MIPIM

The OpportunityEgypt stand is represented by:

Arab Republic of Egypt Ministry of Housing, Utilities & Urban Communities

February 2022

Prime Development

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Experts in Healthcare Real Estate Threestones Capital is a fast growing independent investment management group headquartered in Luxembourg. The company manages private equity real estate regulated investment vehicles with focus on healthcare and residential apartments since 2009 and it is widely recognized as a leading investor in European nursing home properties. Threestones Capital Management SA is an AIFM (Alternative Investment Fund Manager) in accordance with the AIFM Directive.

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editorial

ELCOME to the MIPIM Preview 2022, our chance to herald the long-awaited return of MIPIM to Cannes this coming March, with a full four-day programme of speeches, panels, awards and in-person networking events. To say that we are delighted, excited and raring to go would be an understatement. We hear that simply everyone has missed attending MIPIM over the last two, challenging years. While we were thrilled to see so many of you in Cannes for our September edition, there’s nothing quite like getting together at the Palais des Festivals in the spring sunshine with a fully-loaded programme of events. We are putting together a dynamic and diverse conference that will fire up those of you who are nostalgic for the MIPIMs of yesteryear. Indeed, we can already confirm that exhibitor numbers from Europe and the Middle East are at a similar level to 2019. And yet, we have also taken on board the lessons brought by the last two, irrevocable years.

Ronan Vaspart Head of MIPIM Markets

recent times. That means not only opening debate on the centrality of environmental, social and governance (ESG) matters, but also addressing the importance of housing, of cities that are equipped to serve their citizens, and exploring the future of the workplace. Counterpointing all this, the proptech industry will also shine this March as Propel by MIPIM runs in parallel with MIPIM 2022 at its dedicated Propel Station within the Palais des Festivals. Technology proved so vital throughout the last two years in facilitating “business as usual” for the property industry, that we thought it was time to place these two themes back on the same stage.

MIPIM 2022 is set to be one of our safest events ever held, characterised by full health and wellbeing protocols. And while some of our friends and partners from furthest afield won’t be able to join us, we are fortunate to be able to welcome new faces from the four corners of the globe. Former French President François Hollande heads a powerful line-up of speakers at MIPIM 2022, addressing the major challenges and opportunities facing the real estate industry and wider society. After keynotes from ex-UN Secretary General Ban Ki-moon and former French President Nicolas Sarkozy at previous events, we have the chance to hear from one of the world’s finest political minds once again.

That also means a double serving of awards, as we take the chance to recognise both the real estate industry’s most exciting people and projects with the return of the MIPIM Awards 2022, and also highlight Europe’s best tech solutions with our Propel by MIPIM startup competition. Thanks as ever to our loyal partners, friends and associates who never stopped believing that this time would come. Now it’s over to you to help us create a bit of that old, MIPIM magic.

This year’s theme, Driving Urban Change, reflects many of the issues that have been brought into stark relief in

PREVIEW

February Edition www.mipim.com 15 - 18 March 2022

DIRECTOR OF PUBLICATIONS Michel Filzi EDITORIAL DEPARTMENT: Editor in Chief Isobel Lee Associate Editor Julian Newby Proof reader Debbie Lincoln Contributors Clive Bull, Ben Cooper, Mark Faithfull, Doug Morrison Editorial Management Boutique Editions Graphic Studio studioA Design Graphic Designers Harriet Palmer, Sunnie Newby PRODUCTION DEPARTMENT: Publishing Director Martin Screpel Publishing Manager Amrane Lamiri Printer Riccobono Imprimeurs, Le Muy (France). RX France, a French joint stock company with a capital of 90,000,000 euros, having its registered offices at 52 Quai de Dion Bouton 92800 Puteaux, France, registered with the Nanterre Trade and Companies Register under n°410 219 364 - VAT number: FR92 410 219 364. Contents © 2022, ISSN 1962-9974, RX France Market Publications.Printed on PEFC certified paper

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• February 2022

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World Connect with the Leaders of real estate MIPIM World 365 is the platform to extend, augment and improve your business. Start networking !

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CONTENTS 6 | NEWS

51 | MARKETS

Keynote speaker and former French President François Hollande addresses the major challenges and opportunities facing society today.

Although the last two years challenged the business of real estate, many geographies and asset classes proved not only resilient, but rallying, offering essential use cases and transforming under market pressures. 51 | INVESTING IN FRANCE 54 | INVESTING IN GERMANY

57 | INVESTING IN THE UK 60 | INVESTING IN CEE 62 | INVESTING IN THE NORDICS

DRIVING URBAN CHANGE MIPIM 2022 focuses on transforming the spaces in which we live, work and play, to realise a more sustainable and prosperous future for all. The COVID-19 pandemic forced us to re-think the way we live, driving change in both industry and how we do business. By both intensifying and highlighting social and environmental crises in our midst, it continues to challenge fundamental assumptions and global trends, such as urbanisation, as we strive to build the smart cities of tomorrow.

64 | FOCUS ON ASIA 67 | LOGISTICS 70 | HOSPITALITY OUTLOOK 73 | HEALTH & THE CITY

PROPEL BY MIPIM 41 | PROPTECH FOR THE PLANET

45 | A CAPITAL IDEA 48 | THE SMARTER, THE BETTER

20 | CITIES FOR CITIZENS 25 | HOUSING FIRST – BACK TO BASICS

27 | THE OFFICE UPRISING

MIPIM 2022 PRACTICAL GUIDE

31 | GREEN IS THE NEW BLACK 35 | REAL ESTATE: MORE THAN AN ASSET

75 | THE 2022 MIPIM AWARDS Presentation of the Jury – Categories in the 2022 MIPIM Awards

76 | YOUR MIPIM EXPERIENCE How to get here – Your badge and registration – Must-attend events – Must-visit areas – Meetings and Map

78 | CONFERENCES & EVENTS PROGRAMME

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news

Diversity is a priority for majority of CRE firms A MAJOR new survey of diversity, equity and inclusion (DEI) metrics for commercial real estate shows that there is a clear mandate and momentum for DEI to be a priority, with 92% of firms adopting a DEI programme or initiatives to improve DEI in the workplace. Produced via a partnership between ANREV, INREV, NAREIM, NCREIF, PREA, REALPAC and ULI and conducted by Ferguson Partners, the Global Real Estate DEI Survey also reveals that CRE firms are increasingly employing professionals dedicated to DEI or utilising DEI committees. “The results from the Global Real Estate DEI Survey are welcome ev-

idence of progress across the whole of the industry,” Lonneke Löwik, CEO of INREV, said. “However, they also paint a patchy picture of attainment and Europe has some catching up to do — specifically in terms of gender balance.” According to the survey, in Europe, 43% of CRE firms have professionals solely dedicated to DEI, while in Asia-Pacific that figure is 33%. In North America, 21% of firms have dedicated DEI professionals while 67% of firms have formal DEI committees responsible for developing, implementing and reviewing DEI strategies and initiatives. In both Asia-Pacific and Europe, around 44% of CRE firms

utilise DEI committees. Added Löwik: “The good news is that, in keeping with the overall sentiment from the survey, the vast majority of INREV’s members see DEI as a strategic priority. They will also no doubt be very willing to adopt examples of best practice from their peers in other regions, so we should absolutely expect to see continued improvements.”

JLL recently appointed Blessing Buraimoh as head of diversity and inclusion, workforce advisory

PAREF calls for “collective industry effort” to tackle ESG challenges THE GREATEST environmental and social challenges will require a “collective” response from the real estate industry, according to Antoine Castro, CEO of pan-European investment manager PAREF. “As sustainable business becomes mainstream, ESG will be one of the biggest catalysts for years to come,” Castro said, adding: “The pandemic served as a stress test for businesses, demonstrating that those had integrated ESG issues are more resilient.” The Paris-headquartered firm has approached 2022 with a focus on “value creation and sustainability”, prioritising ESG improvements in particular. Castro said: “Regulations and standards such as SFDR and EU taxonomy make up our agenda today, and we are working towards diversifying our portfolio through sustainable funds and investments.” Looking ahead at investment pros-

PAREF seeks to focus on trading green assets and bringing obsolete properties up to scratch

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pects for this year, Castro said the group would pursue opportunities where it had “a strong expertise and track record”, listing “new generation offices, hospitality and leisure, residential projects and retail assets” as potential targets. In offices, the firm is planning a value-add fund with a “build to ESG” strategy, focusing on obsolete properties, while its residential strategy also encompasses brownfield regeneration to create “much needed new dwellings”. Castro added that PAREF was convinced that leisure and hospitality was a key theme to watch. “More than ever, people will need to gather and chill out during their breaks and will therefore be looking for high quality premises and great experiences. For these reasons, we are developing a hospitality-leisure strategy targeting the best and most sought-after locations throughout Europe.”

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You have the vision. We have the tools. It’s time to challenge the status quo: we need to create better cities. Accommodating urban population growth, while mitigating climate change – this is the ultimate challenge city builders face today. Cities are still built the way they were built centuries ago. We can’t continue like this. The question is: how can we build better cities? Ones that are more livable, healthier, and ultimately sustainable? One answer is through decarbonization and digitization – to help make transport infrastructure, building usage, and office layouts more simple, smooth, and inclusive. Introducing Schindler PORT 4D, a radically new approach to building transportation. Want to find out more? Come visit our Gateway to the Future at booth P-1.C 1 in Palais -1. Schindler PORT 4D, unlocking the true potential of your building.

We Elevate

news

Iceland’s red-hot upcoming projects are set to fire up investor interest BUSINESS Iceland’s scintillating slate of projects at MIPIM 2022 will range from a science park in the heart of Reykjavik to a hotel in an old fish factory, according to Arnar Gudmundsson, head of FDI

at Business Iceland, welcoming potential investors, operators and partners. “Reykjavík Science City is a private public partnership with the aim of attracting investment, R&D, and innovation and tech-

nology as drivers in value creation,” Gudmundsson says. “The area will be a dense mix of higher-education, university hospitals, knowledge companies, science parks and entrepreneurship hubs.” Several exciting hospitality projects are also in the works. “The Karsnes peninsula, close to Reykjavík city centre, is one of the most exciting areas under development in Iceland’s capital area, with luxury housing, a small harbour and the brand-new Sky Lagoon, Iceland’s latest geothermal lagoon, with an infinity edge overlooking the sea,” he adds. Next door, Karsnes Old Town is being developed on 10 ha of ocean-front land, featuring hotels, restaurants, bars, galleries and several tourist attractions. Meanwhile, the striking Reykjanes

The Sky Lagoon, Iceland’s latest geothermal lagoon, will feature an infinity edge overlooking the sea

peninsula, with its old lighthouse and black and white beaches, will host the new Mermaid Geothermal Seaweed Spa. Gudmundsson notes that the recently opened Greenhouse in Hveragerdi has quickly established itself as a leading travel destination, while the nearby Reykjadalur Farm will be a sustainable resort geared for wellness, work and activities, featuring a mega 1km zipline. Two new schemes by the Arctic Coast Way also catch the eye, including the conversion of a former herring factory into a luxury hotel. Gudmundsson adds: “In the same town an outdoor geothermal bathing lagoon is being planned, offering spectacular views over the ocean and the mountains of the Western fjords.”

Radisson expands as recovery accelerates RADISSON Hotel Group is continuing its growth strategy across Europe in response to “positive signs of the recovery of travel”, according to Valerie Schuermans, vice-president development for western Europe. “We kept expanding our brands during this past challenging year, signing 37 hotels (4,696 guest rooms) and opening 24 properties (2,715 guest rooms) in Europe,” Schuermans said. Describing Europe as a “key market”, she said that the group had recently encountered “strong demand from guests in the premium lifestyle brand Radisson Collection” leading to the launch of the brand’s

first hotel in Spain, Radisson Collection Hotel, Magdalena Plaza Sevilla. She added: “In early January 2022, we also opened Germany’s first Radisson Collection hotel in the heart of Berlin following an extensive 12-month renovation and upgrade of the existing Radisson Blu property.” Schuermans concluded by saying that travellers this year would encounter many interesting innovations and services across the portfolio, including “booking flexibility, a comprehensive health and safety programme in partnership with SGS, and strong corporate responsible business initiatives

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to protect the planet, people, and local communities”. She added: “Our clients will also benefit from our new hybrid solutions to personalise stays and meetings, such as guest rooms combining a state-of-the-art office with a superior hotel room, or small- to medium-sized meeting rooms equipped with the best-in-class video-conferencing technology.”

Valerie Schuermans, vicepresident development western Europe, Radisson

• February 2022 02/02/2022 11:50

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news Urban regeneration is key for AixMarseille-Provence THE REGENERATION and renewal of the existing built environment will play a crucial role in the future of the urban area of Aix-Marseille-Provence, according to the tripartite metropolitan authorities. A 15-year plan to ensure the supply of buildable terrain has already been designed, with some 380 ha of land already secured out of a potential 400 ha. Leaders of the southern French region are also betting on the recovery of its office markets, with a strategy to increase the local offer to some 200,000 sq m, from 130,000 sq m today. “This approach is part of a broader strategy aimed at developing a tertiary and co-working offer across the territory, networked to help employees access better working conditions,” authorities said.

The metropolitan area is finding strength in diversity

Wallonia welcomes injection of scientific innovators THE WALLONIA Foreign Trade and Investment Agency is seeing a spike in interest from life science firms seeking to relocate to the area, following a series of successful incentives, according to Alphi Cartuyvels, senior executive in public and corporate affairs. “By investing equally in the growth of scientific excellence on the one hand, and entrepreneurial leadership on the other, Wallonia has created innovative industrial and academic ecosystems,” Cartuyvels said. “Thanks to those, Wallonia attracts many biotechnology companies from all over the world,

which have set up their research laboratories and/or production units here. The presence of global leaders such as GSK Vaccines, Baxter, Johnson & Johnson, UCB, IBA, Zoetis, Abbvie, Eurogentec-Kaneka, Takeda and many more, also acts as a driving force for SMEs and startups, in addition to creating sustained relationships with clusters and other international partners.” According to Cartuyvels, the Walloon and federal government position extends to R&D as a whole, with a series of packages designed to facilitate R&D activities and

the management of intellectual property. The incentives aim to help companies reinforce their innovation potential, acquire external knowledge for a project’s implementation, and create the right environment to conduct research projects. Examples include a “patent income deduction scheme, investment deduction and the equivalent R&D tax credit for qualifying investments”, Cartuyvels said, as well as the “partial exemption of 80% of withholding tax for employing researchers and, last but not least, direct cash grants and subsidies to R&D projects”.

Nantes champions designs for an innovative future AFTER being named European Capital of Innovation in 2019, the French city of Nantes has not rested on its laurels. Instead, invigorated by a climate of fresh thinking and fresh capital, the entire urban area has been engaging in a process of energy transition, controlled urban development, agricultural opportunity and a new kind of

tourism, according to city leaders. “In the city of Nantes, we have taken the choice to promote responsible economic development, responding to the ecological and democratic imperative,” Johanna Rolland, mayor of Nantes and President of Nantes Métropole, said. In particular, the Nantes City

Lab, a resource to promote and support sustainable urban development, has already enabled 28 innovative projects to see the light of day, thanks to its collaborative spaces. Successful innovations on offer include air-quality-sensitive street furniture, and bioclimatic greenhouses that cultivate energy from roofs.

Nantes has become synonymous with new ways of thinking

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Do good. Measure your impact. Prove green.

The ESG platform with a plus Data. Insights. Impact. This is what you get from BuildingMinds: meaningful data and analysis for delivering real impact. Our SaaS platform unlocks real insights for property owners, asset managers and corporate real estate managers. BuildingMinds‘ team of some 100 digitalisation and domain experts from over 30 countries bring the technological power to handle real estate‘s most pressing ESG demands. From gathering, reporting and packaging data to generating modern and impactful analytic visuals, the BuildingMinds solution has got you covered. Our state-of-the-art platform combines sustainability benchmarking with scoring, carbon risk assessment and retrofit scenario analysis. And the platform comes with a plus — due to its unique approach, BuildingMinds can manage many other central use cases like strategic location management, building cost and contract monitoring or workspace utilisation and well-being. We on the BuildingMinds team look forward to meeting you at our booth P-1.C15, Propel Station. Do come by and challenge us! buildingminds.com

news

Maraey brings Brazil’s beaches to MIPIM THE UNSPOILT beaches of the Brazilian coastline will be a step closer at this year’s MIPIM, thanks to the launch of Maraey, an ambitious tourism and residential

development near Rio de Janeiro, representing private investments of $3bn (€2.6bn) into a botanically diverse coastal area covering 844 ha. Backed by an international con-

Hospitality meets ecology on the beaches of Maraey

sortium, led by two families from northern Spain, the scheme aims to become a stand-out example of sustainable tourism, according to CEO Emilio Izquierdo Merlo. Including four different five-star hotels, plus a low-density residential estate offering primary and secondary residences, the project’s unique selling point remains the surrounding nature, with a 12.5 km stretch of lagoons and 8.5 km of coastline. “We are creating a permanent, private natural reserve — the second largest in Rio and the fifth in Brazil — following consultation with several universities and NGOs. It will also include an environmental research centre,” Merlo said. Beyond the homes and hotels, planned infrastructure comprises a mall, offices, a school and a hos-

The destination matters for Echo Investment MAJOR Polish developer Echo Investment will be building on its experience in the residential, retail and office markets this year with a plan to ramp up the delivery of mixed-use projects. Nicklas Lindberg, CEO of Echo Investment, said: “In line with our strategy and current market and urban trends, in 2022 we intend to focus on the development of our multi-functional projects, which we call ‘destinations’, and continue to strengthen our presence in the residential sector.” He added: “While remaining active in the commercial sector and maintaining our position as one of the top three office developers, our group plans to become the largest developer selling apartments, as well as offering housing for rent in Poland.”

pitality management university, a private hospital, golf course, an international equestrian centre and a tennis and sports club, plus an aquarium. “The adjacent fishing community, a village of some 200 families, will also benefit with the awarding of property titles and infrastructure, plus training opportunities and the possibility to work in tourism,” he added. At MIPIM, Merlo is looking forward to offering international investors the chance to get involved in the project’s next phase, as construction commences. “Our project won the 2021 Leadership Award for Latin America from the US Green Building Council, plus Biosphere certification. MIPIM is the next step to open dialogue with the rest of the world,” Merlo said.

Echo Investment’s flagship scheme transformed an old brewery into one of Warsaw’s hippest quarters

Echo Investment’s experience in mixed-used schemes is considerable, following projects such as its flagship Browary Warszawskie, marking the transformation of one of the largest breweries in Europe into a diverse and modern space hosting buzzing squares and market places, surrounded by residential and office developments, and a rich offer of retail, services and food & beverage units. Malthouse Offices, the biggest office building in the scheme, as well as its historic Malthouse, were snapped up by Deka Immobilien last year. Lindberg said: “At MIPIM 2022 we plan on exchanging views on the growing potential of city-forming investments that combine apartments, offices, services and restaurants, like our Warsaw Breweries and Fuzja in Łódź.”

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news Smart buildings signal industry revolution ADVANCES in building technology are now tantamount to an industry “revolution”, according to Andy Pyle, UK head of real estate, KPMG. Citing the accelerated use of “smart technology and sensors which generate orders of magnitude more data from individual buildings than in the past”,. Pyle said that a number of factors were driving the digital switch. “The most important of these are ESG, as the most sustainable buildings will have lower amounts of embodied carbon and be more efficient to run” before also highlighting the pandemic’s role in increasing awareness of “the importance of ventilation and air quality”. He concluded: “The best buildings in major cities have shown themselves to have a better environment than the polluted air outside.”

Data confirms 2021 was a record year for European real estate investment INVESTMENT into European real estate reached an all-time high in 2021, according to the latest data from global real estate advisor, CBRE. Some €359bn was invested into commercial real estate in 2021, up 25% on 2020 and up 8% on 2019, the previous record year. Q4 2021 was also a record quarter for European real estate investment, with volumes totaling €136bn, up 37% on Q4 2020 and 10% from Q4 2019. Germany and the Nordics both posted record investment volumes with increases in 2021 of 39% and 44% respectively. Germany saw total investment volumes reach €110bn, the highest amount ever recorded by a European country. Most other major European markets saw higher volumes compared to the previous year, including the UK (49%), Ireland (54%), Spain (33%) and Italy (13%). However, the rebound was not universal,

with 2021 volumes down on 2020 in several markets including France (-9%), Portugal (-21%) and the Netherlands (-10%). Chris Brett, managing director, EMEA Capital Markets, CBRE, said: “Following record performances in the multifamily and industrial sectors, we are anticipating further strong appetite from investors for these asset classes in 2022

and the office recovery is now well under way. Investors are once again starting to see value in retail and we expect more capital to target the sector in 2022, particularly retail parks and grocery-anchored retail.” According to CBRE, the office market remains the largest sector in Europe, with investment volumes reaching €111bn in 2021, up 16% on 2020. Europe’s diverse cities, such as Reykjavík in Iceland, are a top target for international investors

Cardiff development in a different league

Andy Pyle, partner & UK head of real estate, KPMG

INVESTOR interest in Cardiff ’s commercial, residential and hospitality sectors has never been higher, with the creative industries and fintech receiving particular attention, according to Councillor Huw Thomas, leader, Cardiff Council. “2022 will be an exciting year for Cardiff. With £10bn (€12bn) worth of investment in the pipeline we continue the completion of key regeneration projects including Central Square and Central Quay,” Thomas said. “These pro-

jects will be connected to the new South Wales Metro, where work has already begun on electrifying 170 km of track to connect some 100 stations across the city region.” In 2022 the city will also start constructing its new Indoor Arena, a 15,000-capacity venue. “The Arena will be just one part of the wider development plan for the area that will include hotel, residential and commercial development to cement the Bay area as a leading UK visitor destination,” Thomas said.

Councillor Huw Thomas, leader, Cardiff Council

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We invest in sustainable growth. And sustainable choices. At Swiss Life Asset Managers, we invest in sustainable, risk-managed growth across all real estate asset classes. In doing so, our investment strategies take into account all key environmental, social and corporate governance criteria. Whatever enables you to achieve sustainable, risk-managed growth, we are fully invested. A commitment to greater self-determination on every client level. www.swisslife-am.com

SPEAKER PROFILE OVER the years, MIPIM has summoned speakers of the highest calibre to open the world’s largest international real estate event. As MIPIM returns to its usual slot in 2022 with a full four-day programme of speeches, panels, awards and in-person networking events, former French President François Hollande will be headlining in every sense of the word. After leading France from the Élysée Palace from May 2012 to May 2017, President Hollande will take the stage in the Grand Auditorium on Tuesday, March 15, to share his forthright views with MIPIM delegates. From matters of sustainability to the role of business in driving urban change, Hollande is expected to call on the real estate industry to both step up to its environmental, social and governance (ESG) responsibilities and create a pioneering blueprint for the future of cities.

François Hollande, former President of the French Republic

The

lessons of power:

driving urban change Former French President François Hollande heads a powerful line-up of speakers at MIPIM 2022, addressing the major challenges and opportunities facing the real estate industry and wider society

In line with the key themes of this year’s MIPIM, he also plans to cover a series of major societal issues, from implementing health and wellbeing measures in the wake of the pandemic to tackling diversity, inequality and employment challenges. As president of COP 21 in 2015 when the Paris Climate Agreement was signed, President Hollande emerged as a major proponent of this global benchmark, becoming the first leader of an industrialised nation to ratify the pledge for his own country in 2016. During his leadership of the French Republic, he carried out important reforms which restored the competitiveness of the French economy and set it on a fundamental growth trajectory. He is regarded as having faced with authority the terrorist attacks that afflicted the country in 2015 and 2016. Today, President Hollande chairs the Foundation ‘France is committed’, whose mission is to support a large range of initiatives that contribute to reinforcing solidarity and creating bonds between citizens. Since his departure from the Elysée Palace, President Hollande has written several books including The Lessons Of Power, in which he describes the high and low points of his presidency, and The Democratic Crisis, where he suggests major modifications to the constitution of the fifth Republic. CONFERENCES & EVENTS AT MIPIM 2022 MIPIM KEYNOTE 2022 TUESDAY, MARCH 15, 15.00 - 16.00 – Grand Auditorium François Hollande, former President of the French Republic

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barcelonacatalonia.cat Twitter: @BcnCatalonia #barcelonacatalonia #openforbusiness

Open for business!

LinkedIn: barcelona catalonia Youtube: bcneconomictriangle

Come to our conference

New regeneration for business!

March 16th from 16.00 to 18.00 Room Foyer Debussy · Level 3 Palais des Festivals Forma_BarcelonaCatalonia_Anunci_Preview_230x285mm.indd 9

Visit our stand at Level -1 Stand K50

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www.opportunityegypt.com STAND C16

The Ministry of Housing, Utilities & Urban Communities

Delivering on our promise

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OpportunityEgypt Building a sustainable future together

Egypt is delighted to be exhibiting at MIPIM 2022, building on the success of previous conferences and in a significant year in which Egypt will host COP27 in Sharm El Sheik. This year’s expanded Egypt Pavilion is hosted by the Egyptian Ministry of Housing, Utilities and Urban Communities. We welcome The Sovereign Fund of Egypt for the first time, as well as regular attendees the New Urban Communities Authority and the country’s leading real estate developers.

Delivering on our promise

This financial year will see continued reform in Egypt and the implementation of new government policies and statute to support inward investment. The Sovereign Fund of Egypt has already announced significant partnerships with international investors and operators, as part of its mandate to support the sustainable economic development of Egypt and maximise its value for future generations. 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 AlSisi’s ambitious Vision 2030 development plan. In December, government ministries and administrative offices begun moving into new, purpose-built accommodation in the New Administrative Capital, while on December 23rd, Prime Minister Mostafa Madbouly held his first official cabinet meeting in the city.

Resilient and thriving

Egypt’s economy is flourishing and has been widely praised by leading financial authorities for its resilience and strength following the Covid-19 pandemic. The International Monetary Fund (IMF) expects 5.8% growth in the country’s gross domestic product (GDP) by 2025, while Standard Chartered Bank predicts Egypt to be a top 10 economy by 2030. It is for this reason that the European Bank for Reconstruction & Development has invested €7.1 billion ($8 billion) to date. Additionally, Egypt has been identified by the Rand Merchant Bank (RMB) as the top investment destination in Africa in its recently released report, ‘Where to invest in Africa’.

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

5.6%

What’s on offer during MIPIM 2022

OpportunityEgypt will run informative and varied panel sessions at the Egypt Pavilion and in the Palais de Festival during MIPIM week, giving an overview of the market and the opportunities it presents to investors, developers, operators and suppliers. The Egyptian Government and developers will showcase many groundbreaking 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 welcome you to join with us in Egypt’s next chapter. Please visit OpportunityEgypt at stand C16 and visit our website www.opportunityegypt.com for further information about the Egypt Pavilion, the exhibitors and breaking news stories about Egypt and Egyptian Real estate.

Arab Republic of Egypt Ministry of Housing, Utilities & Urban Communities

GDP Growth 2021-22

$16.5b

Net direct foreign investment 2024-25

No2

Arab economy

Prime Development

Source: International Monetary Fund IMF

City Edge Developments

SODIC

Tatweer Misr

Palm Hills Developments

Mountain View

Landmark Development

Castle Development

GV Development

Tarboul

Prime Development

OKOPLAN

Pavillion Architects

Feature: CITIES FOR CITIZENS

[Photo credit: Iris van den Broek]

Power to the

people Citizens play a critical role in contributing to the life of a city, and as such cities need to integrate peoples’ ambitions in their decision-making process. But how far can they really get involved? Mark Faithfull reports

ities were hit hardest by COVID-19, which raised unprecedented questions about their longterm direction and saw an exodus — at least temporarily — of residents who could choose to work remotely in second homes, or relocate away from the main office. Now, their priority is to become more liveable, with inclusive areas, mixed-use developments, cultural amenities, museums, public services and accessible open spaces to attract people to remain or return to urban living. “Citizen engagement is crucial and can help local authorities tremendously in understand-

ing what is valuable for a given community,” says Kim Herforth Nielsen, founder and creative director of Denmark-based 3XN/ GXN Architects. “It provides the developer with foresight as well as a strong outset for building-in long-term resilience, both of which are necessary to achieve major projects. Citizen engagement is not just about inviting the local community to choose a cladding colour but about drawing on their knowledge of place — and recognising that as a unique expertise — to understand what a certain site and place means to people.” There is certainly political will behind such an approach. The

European Union’s Cohesion Policy, updated last year, includes an ambition to bring Europe closer to its citizens by “fostering the sustainable and integrated development of all types of territories”, which include a more competitive and smarter Europe, a greener, low-carbon transition towards a net-zero-carbon economy, and a more connected Europe by enhancing mobility and a more social and inclusive Europe. Perhaps the highest profile project is in Paris, where the Champs-Elysees is blossoming into a green and predominantly pedestrian boulevard. In Spain, Barcelona has closed off many streets to cars around its historic centre and the

Utrecht’s buzzing canal side is being placed at the service of its residents

concept of the ‘15-minute city’ has gained traction, again notably in Paris and Milan, which are both pushing ahead with plans for self-sufficient neighbourhoods. Recognising the need for industry guidance, last year the Urban Land Institute (ULI) launched Zooming In On The “S” In ESG: A Road Map For Social Value In Real Estate, highlighting the importance of social value, noting that most attention so far has been focused on environmental issues. ULI says that social value creation for real estate is by definition place-based, with the starting point for government to provide a vision and establish

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sustainable development objectives and priorities. Local, placebased expectations and needs are best articulated at local government level and co-created with citizens, community groups and businesses says ULI. “The real estate industry clearly has a role to play in creating social value. Where property is solely looked at through the lens of being a financial asset which can generate revenue and profit, has led to a disconnect between financial value creation and social value creation,” says Lisette van Doorn, CEO of ULI Europe. “COVID-19 is a wake-up call… and opens up opportunities to rethink how to repurpose and connect real estate development and investment to local, place-based needs. We need to prioritise and consider the role of the real estate industry in helping tackle social and spatial inequalities.” That said, while the rationale behind such a cohesive approach is clear, 3XN/GXN’s Herforth Nielsen points out that there are challenges involved in integrating citizen participation as this approach takes time, skill, planning and influences the budget. “It is important to be attentive to the challenge of managing citizens’ expectations as well as turning input into value for a project,” he says. “This demands clear communication of the project’s parameters as well as skill to testdrive activities on-site. Another aspect is the risk that only vocal people end up as representatives for a community.” This is a point taken up by Pascal Smet, secretary of state at the Brussels-Capital Region, who adds: “More than direct interaction, I think that citizen involvement and ownership are important elements in developing an urban policy with broad support. Progressive urban policy focuses on improving quality of life. By

focusing more on the objectives and less on the means, we can create a broad base of support among a large part of the population.” To achieve this requires the participation process to involve and inform the widest possible group of Brussels dwellers in the decision-making process, preferably at the earliest possible stage, he says, with the added complexity that Brussels is a diverse city with 183 nationalities, second only to Dubai. “This is a major challenge,” Smet says. “Traditional forms of participation often focus on a homogenous target group — typically highly educated, well-informed middle-aged people — and my starting point is to listen also to those who say nothing.” For some cities, this means taking a more radical approach to the

“Traditional forms of participation often focus on a homogenous target group — typically highly educated, well-informed middleaged people — and my starting point is to listen also to those who say nothing” Pascal Smet

rules concerning town planning and real estate. In the city of Utrecht, Netherlands for example, a striking urban development plan to transform a canal-side industrial estate has been drawn up by the municipality together with 10 landowners. Subject to agreement by locals, the 60-acre (24 ha) site could be up and running as a dense, eco-friendly car-free suburb by 2024. The plan envisages a 17-block mixed-use district for

Pedestrian plans are afoot for Paris’ most famous boulevard

12,000 residents, none of whom would need privately-owned cars for their daily needs. While the centre of Utrecht is already largely pedestrianised and cycle-friendly — and has been since the mid-1960s — many of the city’s suburbs were designed with cars in mind and Merwede will become the city’s first largely car-free suburb. Furthermore, from January 1 this year municipalities in the Netherlands have been able to ban property developers in certain areas from investing in buy-torent residential. This is a move to safeguard the availability of affordable housing in Dutch cities, after figures from four of the

largest cities revealed that 34% of properties sold in 2020 were bought by property developers. “We should not forget that politicians are elected to make clear and courageous decisions and experts are trained to develop quality projects,” Smet says. “The right balance is crucial. I have made many streets and squares car-free [in Brussels] and constructed new tram lines. Each time, there is resistance from a very large group of local residents, based on a ‘not in my backyard’ attitude. As the project progresses, this resistance disappears. Maintaining the focus on long-term objectives throughout the project is therefore necessary.”

CONFERENCES & EVENTS AT MIPIM 2022 CITIES FOR CITIZENS TUESDAY, MARCH 15, 15.00 - 15.45 – Agora Room WEDNESDAY, MARCH 16, 10.15 - 11.00 – Agora Room CITIES FOR CITIZENS: NEW FRONTIERS OF ENGAGEMENT Citizens play an increasing critical role in contributing to city life, but how can cities integrate people’s ambitions in their decision-making process to engage everyone, while achieving major projects? What are the key challenges in integrating citizens’ views and how far should they be involved, as civic leaders strive to create human-centric cities?

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Feature: CITIES FOR CITIZENS

Greener cities will be home to better assets

Abigail Dean

Nuveen Real Estate’s head of strategic insights Abigail Dean warns that landlords who underestimate the importance of ESG and impact investment trends will soon be left behind WHILE the world’s urban areas have been tipped as key centres of future economic growth, the most important cities will be the ones that can not only capitalise on current trends, but lead with pioneering examples of innovation, according to experts at global investment giant Nuveen. “Environmental, social and governance (ESG) matters have become a key focus for the industry. This isn’t just an asset-by-asset issue, it’s a city-level problem,” says Abigail Dean, Nuveen’s head of strategic insights. “The cities that are taking a lead are already pursuing decarbonisation, starting with publicly-owned buildings and

looking with fresh scrutiny at infrastructure and planning regulations. Some of these locations may look more expensive to investors today, but will be future proofed in the longer term.” According to Dean, these actions are making key cities more pleasant places to live and work, and more attractive to occupiers. They also represent a wake-up call to property owners. “From London to New York, we are seeing the introduction of much further reaching and demanding legislation, which will have a direct impact on landlords in the near future.” The implications for the capital markets are also

significant, Dean says. “There’s a clear expectation that ESG is incorporated into institutional investment markets, and the risk for landlords who don’t step up is that they will be left with stranded assets.” She adds: “Real estate is usually a long-term investment, and equally, can’t pivot overnight in terms of sustainability improvements. It can take time to implement energy transition and even put in place the minimum standards for refurbishments. So, the time to act is now.” Leading on from making buildings more environmentally efficient, Dean says that the “S” in ESG is another growing area of

scrutiny — representing a chance to place the built environment at the service of its citizens. “Social equity has really risen up the agenda,” she says. “The pandemic shone a light on issues which are becoming more entrenched due to the cost-of-living crisis. “Real estate does have a role to play in this, most obviously through affordable housing and rents, SMEs and social enterprises. We are trying to proactively tackle the problem with our own affordable housing impact strategies.” She adds: “Combining social investment with environmental goals is even better — delivering net zero carbon buildings with

a socially useful purpose is the ultimate goal.” In all this, property owners now have a helping hand when it comes to portfolio improvement thanks to advancements in technology. “The pandemic accelerated the ways that businesses and individual consumers engage with tech in their everyday lives. We think that tech will be at the centre of real estate investing, now and in the future,” Dean says. “There’s never been a better time for the industry to adopt more innovative tools, and we’ve made great strides ourselves with everything from tech-enabled hub management systems, to tech that facilitates deals.”

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Visit us at P-1.G80 / P-1.H79

County Council

Ilfov

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MIPIM 2022

François Hollande to give keynote speech at MIPIM 2022 We are pleased to welcome François Hollande former President of the French Republic for an inspiring keynote session.

Tuesday 15 March at 3:00 pm Grand Auditorium

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©Granier

He will share with the real estate industry his beliefs and positions regarding the big issues our society is facing with: the climate change, but also the economic and social issues every nations are experiencing in a sanitary crisis context since 2 years now regarding diversity, equality or employment and fiscality among others.

27/01/2022 17:24

Feature: HOUSING FIRST - bACK TO BASICS

High-rise hopes T

As Europe’s biggest residential landlords race to expand, their greatest challenges include finding institutional grade assets — and figuring out the social aspect. Isobel Lee reports

he residential investment scene witnessed major moves in 2021. In Europe, the two largest deals ever recorded in the sector created significant consolidation and underlined the huge appetite for the asset class. German listed giants Vonovia and Deutsche Wohnen finally concluded their long dance to create the largest housing group in Europe, with 500,000 apartments worth almost €90bn in three countries, and a market capitalisation of around €45bn. Meanwhile, in the private space, Nordic specialist Heimstaden Bostad acquired the entire Scandinavian and German portfolio of Akelius Residential Property for €9.1bn, to underline its pre-eminence in the sector. These megadeals — and plenty of other activity — ensured that total volumes in Europe reached a record peak in Q3 2021, overtaking offices as the biggest investment market. “In the past, investors never wanted to get involved with residential deals,” says Marc Bertrand, CEO of Amundi Immobilier. “It was seen as a complicated B2C business, expensive to manage. But investors have rediscovered that this asset class provides steady income, and is highly resilient. In a very depressed yield environment, it is no longer a significant sacrifice to have a 2-3% net cash yield.” Amundi Immobilier, traditionally an office-focused investor, has expanded its horizons to include

Experienced residential investor Patrizia recently acquired a state-of-the-art apartment tower in Helsinki, Finland

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Feature: HOUSING FIRST - bACK TO BASICS

residential properties in recent times. Bertrand explains that in a climate of slowing fundraising for the group, the firm is now seeking to diversify into properties ranging from logistics assets to “beds”, including apartments, health care, student housing and more. “The main problem we have ahead is the acute scarcity of institutional-grade residential. Investors are looking for new and prime blocks which represent a tiny segment of the market, just 5-10%,” Bertrand says. “The bulk of the market is made up of individual properties with wide geographical. In fact, we believe there is a market opportunity to offer institutional investors a service to address this.” Investment manager Redevco is another recent entrant with an interest in solving some of the sector’s challenges. “It is our mission to help cities become more sustainable and liveable,” says chief strategy & innovation officer Marrit Laning, citing the fact that some 70 million people are projected to move to major European cities over the next 30 years. “Our current focus lies in the Netherlands, the UK, Germany and Spain. We recently acquired an outdated shopping centre in Oxford called Templars Square and are planning to redevelop and create a mixed-

Marc Betrand, CEO of Amundi Immobilier

use location including affordable rental units.” Another project, in Amstelveen, will feature sharing services including garden, bikes, e-scooters and co-living. “In many countries there is an acute shortage of housing, especially in the mid and lower rental level. We would like to step into that void and create housing that is both affordable, sustainable and addresses the needs of the target audience.” Allianz Real Estate is currently making tracks with a successful residential strategy encompassing everything from market rent properties to social housing. At the end of last year the firm announced it had inked a joint venture with Heimstaden Bostad to access part of its Akelius deal, investing SEK 7.9bn (€770m) of equity to buy a 56.25% capital

“In many countries there is an acute shortage of housing… we would like to step into that void and create housing that is both affordable, sustainable and addresses the needs of the target audience” Marrit Laning

share and a 49.85% voting share in a 99-asset Swedish portfolio with a gross asset value of €3bn. Annette Kröger, CEO North & Central Europe for Allianz Real Estate, says: “Multifamily is one of the most prominent, institutional, stable asset classes and benefits from long-term trends — including a growing young population, a lack of affordable housing, and urbanisation — bolstering demand. With €9bn under management, Allianz has man-

be Institutional Capital. In December, the firm launched a €800m pan-European residential real estate fund focusing on the UK, Netherlands, France and key CEE capitals. Managing director Thomas Kallenbrunnen says: “Garbe started out in the 1960s as a residential investor, but has Annette Kröger, redoubled interest CEO North & in recent years. We Central Europe for want to shift our Allianz Real Estate non-logistics comaged residential assets for decades, ponent away from being a trading particularly in the US and Eu- developer to being an investor derope, and more recently in APAC veloper.” where we have closed significant Garbe is also interested in affordadeals in Japan.” ble residential, although KallenShe adds: “The residential sector brunnen warns: “Regulation is heavily influenced by local nu- often means that you can’t put ances, but global trends around up rents to pay for the necessary urbanisation and lifestyle changes refurbishments.” affect all regions and are creating Kröger adds: “Regarding social new opportunities. We see an ac- housing, the under-supply coutive role for institutional investors pled with stronger regulation who are positioned to finance the within the segment provides for large developments that are need- even higher cash flow stability and ed and manage at scale.” resilience, aligning well with our Mahdi Mokrane, head of invest- approach as long-term investors. ment strategy & research at Patri- Investing in affordable housing has zia says: “The pandemic has not a social responsibility element, we changed the general demand-sup- can help cities meet demand.” ply imbalance in Europe. Urbanisation will continue to drive the market in the major cities.” CONFERENCES & EVENTS A major player in the sector, PatriAT MIPIM 2022 zia’s interest in residential “conHOUSING FIRST: BACK TO BASICS tinues unabated” according to WEDNESDAY, MARCH 16, Mokrane. “We’ve been active de15.45 - 16.30 – Agora Room spite COVID with almost €4.0bn of transaction activity. Active in HOUSING FIRST: Germany, Nordics, Ireland and THE AFFORDABLE CHALLENGE the Netherlands and more recentInvestor appetite for residential assets ly in the UK and Spain.” is on the rise. Is housing a safe-haven Another investor which has deasset? Experts explore the future of the cided to boost its residential creasset class, and the challenge of supplying affordable units. dentials in recent times is real estate investment manager Gar-

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Feature: THE OFFICE UPRISING

From workplace to safe space

Hines’ latest timber office in Barcelona aims to respond to occupier needs

The pandemic has drastically changed work patterns around the world and has, in turn, sparked a revolution around how owners and occupiers think about office use, Ben Cooper reports

ompare the designs of the office developments coming out of the ground in 2022 with those at the turn of the 21st century and, with only a few exceptions either side, the difference is remarkable. It doesn’t matter which developed market you look at, from Singapore to Stockholm, the days of putting up a box with only the minimum of features beyond the functional are long gone. No wonder, considering the times. New work paradigms, whole new business models based around flexibility, even fun in the workplace, new attitudes towards the role of the office

landlord — all have shaped the way that investors, and occupiers, look at offices today. And all of that is before you get into the formative turmoil of the past two years, and a seismic upheaval that has changed everything in business, most of all the modes by which people work. Despina Katsikakis is the global lead of Cushman & Wakefield’s Total Workplace services, as well as being an internationally renowned lecturer on the future of work and wellness in the workplace, and an advisory member of the WELL initiative to advance health and wellbeing in buildings. She says that the past two years

amount to nothing less than a “trauma event” that will have untold consequences for our understanding of wellness at work. “People’s access to social connections, knowledge, mentoring and wellbeing have all suffered,” she says. “We are seeing a huge amount of focus now on treating this as a trauma event. We’ve been looking at this whole idea of workplace re-integration where you can create spaces where people feel safe. She adds: “From a building perspective we’ve totally acknowledged that ubiquitous tech can be used to manage a more dynamic interface between user and space to transform those

spaces and energy consumption. We’ve experienced a work-life integration that has transformed our expectations for the future.” With transformed expectations comes new demands and pressures on office developers — and owners — to adapt. But Raphel Brault, head of France at international real estate asset management firm AEW, says that for professionals specialising in office space, the pandemic has been more of an accelerant of these new patterns than a sudden transformer. “The general market consensus is that the pandemic has been a catalyst to existing market trends. Working from home was already

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Feature: the office uprising

Despina Katsikakis, global lead within Cushman & Wakefield’s Total Workplace service

Ronen Journo, head of European operations, Hines

getting more popular across Europe. The pandemic has just accelerated this,” he says. Indeed, the trend towards a more ‘humancentric’ approach to offices, says Ronen Journo, head of European operations at Hines and former vice-president at WeWork, is an evolution long in the making — one that not everyone accepted at first. “The real estate industry was slow to evolve,” he says. “They looked at Google and Facebook and they were laughing. They said they’re creating a Disneyland. “But those companies were focusing on culture and human experience. That’s what they didn’t understand. They were focused on business outcomes, they knew that if we can give [staff ] the best human experience possible they will be productive and they will be happy.” What does that mean in practical terms? It means greater flexibility, as staff turn away from the Monday to Friday grind; better amenities within office spaces to attract top talent; a greater awareness of the link between salubrious, well-designed spaces and the happiness and wellness of the people working in them; and an ever-higher sensitivity to the environmental and social

consequences of occupying large office spaces. The pandemic may only have been a catalyst for all this, but it has had a definite consequence of its own, one of making the need for owners to adapt one of surviving, rather than simply being en vogue. For this to happen, says Niall Gaffney, chief executive of Dublin-based real estate investor IPUT, office owners need to start rethinking the way they view themselves. “Now more than ever property owners have to regard themselves as service providers,” he says. “The market to attract office occupiers is increasingly competitive as they become more discerning about the space and locations they are choosing, and ultimately what value they can offer to their business strategies. “Occupiers hold the cards right now, so office owners need to make sure that their space is a head above the rest, meets the highest possible sustainability standards and provides a responsible investment proposition for the long term.” However well they do adapt their offers though, one fact is inescapable — with working from home now fully established as an option, on a total basis, office occupiers simply won’t need as

Inside Hines’ fully wooden T3 Diagonal Mar building

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much space in future as they did prior to the pandemic. Demand is falling, and will continue to do so for some time. Brault estimates that one of the world’s most important cities for office investment, Paris, is going to lose a significant chunk of its current occupier demand as time goes on. He says: “There will be less office requirement overall, probably 10-15% over the next 5-10 years. It won’t be dramatic, it won’t all come at once, but it’s a significant amount of space.” It won’t come all at once, nor will it be uniform — the strongest developments in the hottest locations will be rewarded, a trend that Brault says is already very apparent. “Overall the Paris Region market is at a 5.7% vacancy rate. Inside Paris it’s less than 3.5% vacancy. In the outer suburbs vacancy is much higher.ER_PV_PIM This is where we see 002_ART

the polarisation,” he says. Consider that this is just in one city — albeit a major one — and for investors in the office sector thinking on a global scale, there are some tough decisions to be made. Demand is shrinking; priorities, and appetites are changing. For the offices that meet the increasingly high bars of design, location and amenity demanded by the next generation, post-pandemic prospects look exceptionally good. But for those that don’t, investors will reach a point where holding on to them, even trying to revitalise them, is no longer viable. If times and past turmoils have proven anything at all it is the importance of being flexible, and adapting. With the world not yet out of the COVID pandemic, and change still happening at pace, those who can move with the times, not against them, will reap the rewards the future offers.

Niall Gaffney, chief executive, IPUT

CONFERENCES & EVENTS AT MIPIM 2022 THE OFFICE UPRISING TUESDAY, MARCH 15, 16.30 - 17.15 – Workshop Room WEDNESDAY, MARCH 16, 14.30 - 15.15 – Agora Room THE OFFICE UPRISING: INNOVATING TO BOUNCE BACK How is hybrid working going to affect the future of the office? What must the sector do to bounce back? From redefining space to the improved sustainability of offices, quality design and human-centric spaces, this event discusses key themes — plus what must be done with secondary office stock and their environmental challenges. How are office requirements different for women, men and various ethnic groups?

Invest in Emilia-Romagna

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24/01/20 11:44

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31.01.22 09:25

Feature: GREEN IS THE NEW BLACK

The only way

is ESG

As broad industry pledges to do better are replaced by data-driven targets, the property world is getting to grips with its sustainable responsibilities.Isobel Lee reports Allianz Real Estate’s Coeur Cologne provides sustainable office space in the heart of the German city

he COVID-19 crisis delivered a critical opportunity for organisations to engage with environmental, social and governance (ESG) issues, driving them to pay closer attention to external risks. For the real estate industry, it has proved transformational. “For most real asset investors, over 95% of their carbon footprint is within their buildings,” says Guy Grainger, global head of sustainability services & ESG at JLL. “If you combine that statistic with the fact that the built environment contributes 38% of the world’s greenhouse gas emissions, then it is all the evidence you need to see that we in the real estate industry are part of the problem — or, if we are prepared to change — part of the solution.” Yet solving this thorniest of issues — real estate’s carbon foot-

print — requires a clear and defined strategy, Grainger says. “That’s where things get complicated. There are no set benchmarks or targets, so many investors are comparing to their peers and waiting for market forces to justify the investment and CapEx needed. The longer you wait, the more there is to do.” Despite these complexities, a number of real estate firms are emerging as ESG pioneers. Explains Christy Hill, PGIM Real Estate’s Americas head of asset management & global head of ESG: “PGIM Real Estate continues to focus on established and well-respected ESG reporting standards to disclose our ESG performance. We benchmark our ESG performance on a fund-level through the annual Global ESG Benchmark for Real Assets (GRESB) and communicate results to investors.

“PGIM is a public supporter of the Task Force on Climate-Related Financial Disclosures and uses this framework to assess physical and transition risks to the portfolio as well as individual assets,” Hill adds. “We also committed to a net-zero target that aligns with the Paris Accord and recommendation to limit global temperature increase to 1.5 degrees Celsius. Finally, we have assessed our funds from the perspective of the Sustainable Finance Disclosure Regulation (SFDR) and are complying to it with few of the funds being Article 8.” As a premier partner of the recent UN Climate Change Conference, COP26, PGIM had the chance to see how in-step the firm is with current thinking. “Retrofitting existing building stock is an essential ingredient,” Hill says. Marrit Laning, newly appoint-

ed chief strategy & innovation officer at real estate investment manager Redevco, says that the firm has devised “a clear ambition for the portfolios we manage to be net-zero carbon by 2040”. She adds: “As we are traditionally invested in the high streets of inner cities, our focus is on making existing buildings better and contributing to making the cities more liveable and sustainable. Whenever we redevelop an existing building, we see an opportunity to improve the building’s sustainability performance, but also through our design and concept, the functionality of the location. We want to add value to the location and fulfil key functions that will support its neighbours’ and visitors’ (social) wellbeing.” Allianz Real Estate describes the issue as a “highest priority”. Dr Raphael Mertens, the firm’s chief

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Feature: GREEN IS THE NEW BLACK

Christy Hill, PGIM Real Estate’s global head of ESG

risk officer, says: “As one of the largest players in the real estate market, we have the responsibility to lead by example and reduce the carbon footprint of our portfolio. In practical terms, we strive to incorporate sustainability factors into our investment cycle and work towards reducing the greenhouse gas emissions of our portfolio to net-zero by 2050. The first milestone in this journey is to reduce the carbon footprint of Allianz Real Estate’s global portfolio by 25% in the next five years and we have developed a structured framework to reach this milestone.” Mertens notes that these ambitions are

[Photo credit: Eric Figge Photos]

PGIM Real Estate’s sustainable Neptune Marina seeks to harmoniously complement the Marina Del Rey waterfront in California

Guy Grainger, global head of sustainability services & ESG at JLL

in line with high-profile initiatives such as The Science Based Targets initiative (SBTi) and the UN-convened Net-Zero Asset Owner Alliance. From growing its allocation to certified green buildings, to increasing the use of renewable energy, Mertens recommends that companies take a holistic approach. “We also look at social factors, for example through compliance processes or reputational risk assessments. Ultimately, all our investments must meet sustainability standards and there is an absence of any form of offsetting but inclusion of all tenant areas. The most im-

Marrit Laning, chief strategy & innovation officer, Redevco

pactful part will be the evolution of our directly held assets which currently equate to half of our portfolio,” he says. Principal Real Estate Investors has created a dedicated platform to tackle the issue. Indraneel Karlekar, Principal’s global head of research and strategy, says: “Through our research, we have identified five primary areas of ESG focus, which guide our decision making: environmental performance, occupant experience, community impact, climate resilience, and managerial excellence. As trends and best practices evolve, we continually refine the platform.” The year 2021 saw many firms make tracks in the area of sustainable debt. “Green financing and green bonds have increasingly attracted the attention of investors engaged in the decarbonisation of their assets,” says Justin Travlos, global head of responsible investment at AXA IM Alts. “They allow us to actively contribute to the energy transition under way in the real assets industry, while providing opportunities for investors increasingly looking to make a positive impact through their allocations. “Last year, AXA IM Alts raised its first three green bonds — raising €1bn for its flagship CoRE

Europe fund across two issuances — as well as raising €800m for its flagship European logistics fund. All three issuances were more than four times over-subscribed, indicative of the significant and sustained demand for green finance products on behalf of institutional investors.” He adds: “Linking the cost of debt to sustainability metrics is an obvious next step for the sector.” “Sustainability-indexed finance is both a good measure of what is now considered to be mainstream ESG, which can be interpreted as the minimum ESG requirements for any serious client, as well as a strong incentive for active asset managers to further innovate and refine their ESG approach to differentiate themselves,” adds Mathieu Maronet, head ESG securities, Swiss Life Asset Managers. The industry’s carbon footprint means that the ‘E’ issue continues to capture the headlines. But that’s not the whole story, Mertens underlines. “The fact that our primary focus is on the ‘E’ doesn’t mean ‘S’ and ‘G’ aren’t very important to us,” he says. “Having embedded our environmental framework throughout our global business we are now placing a more formal focus on the social impact of our

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buildings. We have developed a framework for social impact, which has included an audit of our investment portfolio, and will now roll this framework out across our portfolio.” However, he notes that it’s not always easy: “The social and governance areas are more qualitative than quantitative and therefore it is much harder to measure success. So, we will keep pushing to find ways to measure progress in this area. And we will keep evolving to enhance our approach.” The social part is also increasingly in the spotlight at PGIM Real Estate, says Hill. “We have invested $5.6bn (€4.9bn) in impact-oriented assets, including our UK Affordable Housing Fund which deployed £250m (€300m) at launch,” she says. The company also targets increasing Fitwel Health & Wellness certification coverage across its global portfolio, with “direct positive impacts for our tenants, employees, guests, and surrounding communities”. While responsible investors are seeing the “carrot” effect as they

benefit from amassing attractive and liquid ESG-compliant assets, landlords that fall further behind will soon experience the “stick”, experts warn. “The capital, the lenders and the insurers are all migrating towards the investors who have an action plan — a clear pathway to net-zero carbon, with near term goals,” Grainger says. Following the enactment of the EU’s SFDR last year, directly impacting the investment world, the EU’s Corporate Sustainability Reporting Directive (CSRD) will go live in 2023, replacing the Non-Financial Reporting Directive (NFRD). It is expected to provide both greater clarity for landlords and new challenges in reporting against ESG metrics. And Grainger foresees “more regulation” ahead. “Regulation can come from central government or at city level, with New York currently being the most aggressive, introducing a carbon tax for buildings at $268 per metric tonne,” he says. Cheryl Gurnham, partner, real estate & construction, CMS UK, calls ESG something “the

real estate sector can no longer ignore”. She adds: “In accordance with current proposals, by 2030, the Minimum Energy Efficiency Standards for non-domestic private rented sector will be ‘B’ (with an interim level of ‘C’ for 2027). “This means that much of our existing commercial real estate stock will be un-lettable in the near future. Buildings will need to be retrofitted and the question of who pays for that is something our clients are considering. Clients need to review their portfolios and identify which buildings will be sub-standard and create an action plan for them.” Concludes Travlos: “Ultimately, we are seeing a tsunami of regulation confronting the industry, not just for real estate but across the financing space, and the EU taxonomy introduced last year is helping to shape thinking around the environmental elements of ESG alignment. As new science comes to light, I expect these guidelines will continue to be updated, while decarbonisation pathways will become steeper and more challenging over time.”

CONFERENCES & EVENTS AT MIPIM 2022 GREEN IS THE NEW BLACK WEDNESDAY, MARCH 16, 11.30 - 12.15 – Agora Room THURSDAY, MARCH 17, 11.00 - 11.45 – Esterel ESG PRINCIPALS DRIVING REAL ESTATE INVESTMENTS Sponsored by Allianz and Prologis LOCAL INITIATIVES TO TACKLE GLOBAL CHALLENGES Sponsored by Prologis Creating a smaller carbon footprint is the chief challenge for the built environment. How can an ESG approach enhance investment value and when should it be introduced in the decision-making process? When it comes to local initiatives, can they make a big difference in tackling global challenges? What role do citizens play in all this?When it comes to local initiatives, can they make a big difference in tackling global challenges? What role do citizens play in all this?

A green roof open to the public tops off Allianz’s careful refurbishment of 23-29 rue de Châteaudun in Paris

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Feature: REAL ESTATE: MORE THAN AN ASSET

Property’s prime directive While a flight to quality continues to define the real estate investment climate, investors are aware that even their bestperforming assets will need to align with a low-carbon future. Doug Morrison reports

he resilience of real estate income has proven its worth to investors in the face of the economic fall-out from COVID-19 and, according to leading consultants, it’s the key reason behind the resurgent transaction activity across Europe over the past year. This shows no sign of tailing off, albeit such strong demand comes

with important caveats around short-term macro headwinds, the long-term structural challenges facing real estate and an increasingly important environmental, social and governance (ESG) agenda. Knight Frank predicts that 2022 will be a record year for global cross-border real estate investment, with EMEA as a whole potentially capturing more than

60% of all cross-border activity. The firm identifies US investors as a major provider of capital, accounting for almost half of inbound demand. All sectors are likely to benefit from this influx of capital, Knight Frank suggests, while Europe’s largest and most liquid markets — the UK, Germany, France and the Netherlands — will remain the most popular destinations. According to Savills, European commercial and residential investment volumes recovered by as much as 9% to around €288bn in 2021, and the firm is forecasting a 2% increase to €295bn this year. In other words, overall volumes are back to pre-pandemic

levels although the industry is far from complacent. Richard Holberton, CBRE’s senior EMEA research director, believes that the European Central Bank will keep base rates on hold until 2023 and accordingly the current outlook remains broadly favourable to prime property. Even if there were to be a modest rise in interest rates across the eurozone, prime property yields should sharpen in the near term as economic recovery drives rental growth, offsetting any small increase in the cost of capital. But Holberton concedes: “There are risks to this view.” The main concern is that the current, above-average inflation continues for much longer.

Nuveen’s jointly-held portfolio with Neinver — including Amsterdam The Style Outlets — won five stars from GRESB in 2021

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Feature: REAL ESTATE: MORE THAN AN ASSET

Lydia Brissy, Savills’ European research director

Though some in the industry see it as “transitory” others are struggling to interpret the lasting impact of surging energy prices, supply chain disruptions and labour shortages on real estate. The other big economic risk comes from the recent Omicron surge — and the prospect of still more COVID variants — with further restrictions to business and travel. But there are also longer-term implications, warns Lydia Brissy, Savills’ European research director. As she says, the longer the health crisis continues, the more likely the structural changes imposed by the pandemic will become permanent. Given such uncertainty, Brissy suggests that “flight to quality will remain the investors’ leitmotif ” although it is evident that quality in European real estate today is defined as much by adherence to ever-higher ESG standards as traditional criteria around location and strength of covenant. The ESG agenda is already opening up a yield-gap between environmentally good and bad properties — the green premium versus the brown discount —

which Brissy says will incentivise investors to repurpose stock to achieve greener standards and embrace social values. Even then, the ongoing narrative for the office sector is hard to assess. It remains the biggest draw for many institutional players and yet it’s a sector where the ESG imperatives — and the risk of obsolescence — are tangled up with the ongoing uncertainty around hybrid working and the general health of central business districts (CBDs). According to JLL research director Jeremy Kelly, CBDs have been showing signs of life lately after going ominously quiet at the start of the pandemic. Premium offices rents are generally holding up better than in decentralised areas. “There’s a new energy to be found, most notably in the CBDs of major gateway cities, and where there are solid amenities and accessibility,” he says. “Urban living is back in vogue, while tech companies, law firms, e-commerce firms are taking space in CBD locations.” With low vacancy rates in the ma-

jor European CBDs, most agents are forecasting rental growth for prime offices in 2022. Investors, in turn, are expected to become increasingly selective and therefore further widening the gap in rents and values between prime and secondary assets. JLL predicts that as economies continue to recover in 2022, investors will begin to reconsider retail and hotels — as well as offices — after a difficult couple of years. Like most of its peers, the firm also believes that surging demand will continue unabated for those sectors that have been seen by investors to “offer resilience” consistently throughout the pandemic: residential, life sciences, data centres and logistics. Logistics, notes JLL, accounted for

“Increasingly, investment strategies will start to focus on diversification across various sources of risk rather than across different asset classes” Dragana Marina

23% of global real estate investment in 2021. Though sectors such as logistics appear to be safe bets for the foreseeable future, most investors and their advisers are advocating greater portfolio diversification — but not just in terms of assets and locations. The pandemic has

prompted a re-appraisal of what constitutes successful, high-quality real estate investment, both financially and in an ESG context. “Increasingly, investment strategies will start to focus on diversification across various sources of risk rather than across different asset classes,” says Dragana Marina, CBRE’s sustainability research lead for Continental Europe. As Marina puts it, this shift in approach to investment is inevitable given the “real threat of value erosion on carbon-intensive assets”, due to increasingly stringent regulations but also pressure from financial institutions, stakeholders and occupiers. And the stakes are high, says Nuveen Real Estate. In its latest discussion paper, the global investment manager argues that “markets risk over-playing the property-type performance divide and underestimate the tremendous trend shift in the wake of the net-zero carbon drive”. Given European governments’ regulatory and investment drive towards a low-carbon economy, Nuveen suggests the winners will be those assets that rise to the low-carbon challenge and those real estate managers who regard it as an investment opportunity rather than a risk. “On the other hand,” the report by Nuveen concludes, “carbon-inefficient buildings running on outdated technology and asset owners missing this sea change will have to grapple with underperformance and stranded assets.”

CONFERENCES & EVENTS AT MIPIM 2022 REAL ESTATE: MORE THAN AN ASSET WEDNESDAY, MARCH 16, 10.00 - 10.45 – Esterel PRIME REAL ESTATE, LOCATION OR FEATURES? Content partner: Investment Monitor. Sponsored by Allianz and Prologis Real estate is now considered a financial asset and above all, an incomegenerating asset. Global appetite for the segment continues unabated. What are the characteristics of real estate which make it appealing in terms of volatility, liquidity and regulation? Why does prime real estate continue to stand out, and what valuegenerating assets are thriving in a post-COVID world?

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Feature: PROPEL BY MIPIM

Proptech for the planet Faisal Butt of VC Pi Labs says ESG is of upmost importance to the future of real estate

As technology applications evolve beyond the digital urgency created by the pandemic, Isobel Lee finds that industry startups are being asked to help real estate become great and green

ow can property developers track the construction process, with a view to making it more efficient? What tools are available for residential landlords to manage vacant units? And, perhaps most importantly, how can existing buildings cut their carbon footprint? Increasingly, the real estate industry will look to technology to solve some of its most pressing problems in 2022, after two seminal years in which proptech made itself indispensable. While the burgeoning property technology scene witnessed many important breakthroughs prior to the pandemic, the global health crisis introduced a unique set of parameters which accelerated its adoption. From

travel bans to social distancing mandates, remote working (and remote viewing) requirements forced many firms to go digital — and fast. Although applications including portfolio management software and air quality sensors tackled immediate issues at the pandemic’s height, most tools were designed for much broader application, and their use is likely to stick. “One of the challenges pre-COVID was demonstrating the viability of scaling tech applications,” says Mike Gedye, head of the technology sector vertical at CBRE. “Previously, we were running lots of small pilots on a single floor. What happened during global lockdowns was the global piloting of new applications, triggering an accelerated

adoption which has propelled the industry forward by some five to 10 years.” A 2021 study by JLL identified some 8,000 proptech firms now in existence around the world involved in upgrading the real estate industry’s efficiency and even accountability. The pain points these startups are being asked to solve today involve every aspect of the real estate lifecycle, and the tools themselves are being applied across all kinds of asset classes and for all kinds of problems. “There are incredible opportunities for technology to revolutionize the commercial real estate (CRE) industry,” says Raj Singh, managing partner of JLL Spark. “Specifically, we’ve noted a significant surge in new startups at the intersection of proptech and AI, robotics or 5G seeking to solve challenges in CRE. These trends will only continue to accelerate

this year as organisations seek innovative solutions supporting flex or hybrid working and sustainability protocols.” Yet it is the real estate industry’s greatest challenge — decarbonisation — that is likely to become proptech’s biggest battle as well. Etienne Prongué, UK CEO, BNP Paribas Real Estate, says: “Corporates are adopting tech at scale and ESG is driving the market. The focus for 2022 and beyond will be on the proptechs which can demonstrate they have the potential to be forces for good in areas such as workplace wellbeing, and, in particular, climate risk. There is significant untapped tech potential for the built environment in reaching net-zero targets, and in turn, future proofing assets. Any technology that supports the decarbonisation of real estate will continue to attract a great deal of attention.”

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At the recent Propel by MIPIM summit in New York, Brendan Wallace, co-founder & managing partner of proptech venture capital firm Fifth Wall, said that his firm launched its climate tech fund two years ago “because fund LPs started coming to us with sustainability problems to solve, and I realised we needed a different vehicle to articulate that, which invests in hardware and services to close the gap”. The centrality of environmental matters is a view shared by other VCs. Faisal Butt, CEO, chairman and founder of European VC Pi Lab, says: “ESG is of upmost importance to us, and to the future of real estate. This is an area we are actively researching and actively investing into. “We conduct ESG due diligence on startups prior to investing, and then help them build on their ESG offering after we invest. We’re proud that over 50% of our portfolio companies already work directly to address ESG issues, but this is just the start for us.” BuildingMinds, a real estate technology firm based in Berlin, is a good example of how proptech can drive ESG solutions. “Our mission is to empower our customers to build a resil-

Raj Singh, managing partner, JLL Spark

Etienne Prongué, UK CEO, BNP Paribas Real Estate

ient, sustainable and data-driven future for their real estate businesses with our real estate data platform,” says Jens Hirsch, do-

“Any technology that supports the decarbonisation of real estate will continue to attract a great deal of attention” Etienne Prongué

main expert sustainability. “Being a first mover or anticipating carbon legislation isn’t just about avoiding future penalties,” Hirsch says. “You can also create a competitive advantage, both in terms of attracting future tenants and even improving the productivity of the individuals that work in the building.” He adds: “Future-proofing real estate requires a radical move — managing buildings no longer as static objects but as information ecosystems that build their value on data.” Hirsch notes that building owners can’t always anticipate future legislation or taxonomy aspects; but if they have the most up-to-date infor-

Jens Hirsch, domain expert sustainability, BuildingMinds

mation about their building’s performance and energy consumption, for example, they are best placed to make swift and accurate improvements. “We have included a carbon pricing simulator in our data tool, so landlords can be prepared for whatever comes,” he says. “At the end of the day, you can only manage what you can measure. By combining insights and analytics, your current and your past energy consumption data, landlords can compare and benchmark against a potential target, and ultimately, plan a decarbonisation road map for the future.” Johannes Fütterer is CEO of could-based platform Aedifion, which helps transform properties into sustainable smart buildings by addressing matters of digitiation, sustainability and efficiency, thus supporting the networking of assets. “A smart building not only saves energy resources and CO2 emissions, but also reduces the human resources required for operation,” he says. Yet for Fütterer, the issue goes far beyond single properties. “ESG is much more than sustainability, it is a harmony of future-oriented resource utilisa-

tion and social responsibility,” he says. “In our opinion, buildings are the most important lever for achieving this harmony, and there are numerous best practices that show which measures can be taken to adequately address the issue of ESG. These include, in addition to the carbon footprint of real estate, the wellbeing of the people, affordable housing, and the impact on cities and communities.” Prongué concludes: “Looking forward, there will likely be more investment in real estate software surrounding the construction and development of spaces, and we expect to see fintech and proptech starting to collide. “It’s fair to say, we have entered the golden age of proptech and this year will only underscore its importance in the real estate industry.” CONFERENCES & EVENTS AT MIPIM 2022 PROPEL BY MIPIM WEDNESDAY, MARCH 16, 10.15 – 11.00 – Propel Station PROPTECH, THE FUTURE OF REAL ESTATE! Sponsored by Prologis

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A capital idea While VC funds increase their exposure to proptech and drive industry consolidation, traditional property firms are also allocating bigger budgets to digitalise processes

n anecdote from Nick Romito, co-founder of proptech firm VTS, succinctly illustrates how much attitudes to proptech have evolved in the past decade. “When we first started, there was no proptech,” he says, describing the lead-up to launching his leasing, marketing and asset management platform in 2012. “Our first investor meeting was with a venture capitalist, and my co-founder Ryan Masiello and I were really excited. Well, we told the guy our idea… and he said it was the dumbest thing he had ever heard. That was very motivating!” Romito says. “Fast forward to today, and it would be hard to find a venture capital firm which doesn’t have some sort of exposure to technology.”

The latest numbers tell the same story: investment capital can’t get enough of real estate’s digital dimension. Over $32bn (€28bn) was poured into technology for the built environment in 2021, according to a report from industry think tank, The Center for Real Estate Technology & Innovation (CRETI). The data, while representing a 28% increase on 2020 and a 3.23% increase over 2019, also reveals changing investor tastes, as residential real estate applications received around half of all investment. Reflecting the industry’s evolution and greater maturity, most financing went to Series D companies, at 36%, while Series C companies attracted some 31% of the share. Raj Singh, managing partner of JLL Spark, says: “Over the past year, the growth of the overall

Aaron Block, MetaProp co-founder, says that proptech has proved it can adapt to real estate’s dynamic needs

startup landscape combined with a difficult fundraising environment led to greater consolidation in the sector. In 2020, M&A activity was at a record high of $21.9bn, and in just H1 2021 it was already above $18bn. We expect to see a focus on mergers, acquisitions and IPOs in the year ahead, especially M&A, as established players seek the scale and scope required to serve the largest of commercial customers.” Zach Aarons, co-founder and general partner at MetaProp VC, adds: “Proptech is now a household name in both the public and private equity markets. The industry is truly global, and adoption is accelerating very quickly.” However, he warns would-be investors that expert insight is still required: “We have definitely experienced some choppiness in the public equity markets as the sector reaches a maturation point and analysts realise that not all businesses within the proptech sector should

be valued the same way.” Singh similarly suggests that the 2021 SPAC craze may well be due a reset. “Although this trend will likely continue into 2022, the SEC has become more deliberate in its examination of candidates, which will slow things down significantly. The trend may also gain (or lose) strength based on how last year’s SPAC mergers perform as they deSPAC and start trading as public entities.” Conversely, for Brendan Wallace, founder of venture capital firm Fifth Wall, the real estate industry should be contemplating taking bigger risks. 2021 was quite a year for the firm, with $1.1bn in new commitments across Fifth Wall’s funds, over 25 new portfolio companies, and the addition of 27 new team members. Speaking recently at Propel by MIPIM in New York, Wallace noted that car innovator Tesla “was a R&D company for more than a decade, before it became a car manufacturer” and

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Feature: PROPEL BY MIPIM

that the real estate industry should think harder about investing in innovation. He added: “Tesla massively invested in R&D for a long time while losing money. Real estate isn’t used to going cash-flow negative, which is what it required to run big R&D budgets.” However, he suggested that tech-forward real estate firms would eventually have better access to capital if they take a pioneering path. Despite this, investor confidence in proptech has never been higher. In MetaProp’s Mid-Year 2021 Global PropTech Confidence Index sponsored by PricewaterhouseCoopers (PwC), the report’s startup index stands at 8.3 out of 10, its highest ever level, and double the sentiment recorded at Mid-Year 2020. Furthermore, the investor index is at 8.9 out of 10, its second highest figure to date. Aaron Block, MetaProp co-founder, says: “The flywheel of innovation activity within the proprech industry now appears to be firmly established. It is remarkable to witness how quickly this space adapts to the dynamic needs of all those who interact with the real estate market in some capacity, from the first-time buyer of a single-family home to an asset manager with thousands of units in their portfolio.” Backing this view, Deloitte’s 2022

Commercial Real Estate Outlook, a survey produced by canvassing the opinions of over 400 real estate professionals, expects real estate company tech budgets to increase on average by as much as 10.3% in 2022. Respondents from North America and APAC predict the biggest increases (+11% and +12.3% respectively), suggesting companies in those regions are more bullish on technology spending than their counterparts in Europe (+7.7%). In reality, there is growing evidence that proptech is a global game, and in a highly cross-border industry like real estate, firms are looking to deploy tech solutions Lydia Brissy, Savills’ across their entire portfolio. European research director Regarding specific technology investments, from 15% to 33% of respondents says investing in capabilities such as building connectivity, market intelligence, geospatial analysis or risk analysis would benefit their company. And more than 70% of respondents believe the real estate finance function should generate business insights and provide services such as advanced forecasting or scenario planning. Meanwhile, blockchain, tokenisation and cryptocurrencies are also increasingly on the agenda. The Deloitte report shows that real estate professionals are interested in

Brendan Wallace, founder of venture capital firm Fifth Wall

all forms of asset digitalisation and the digital ledger, with developers favouring blockchain to manage construction projects, and brokers more focused on the potential of cryptocurrency payments. Mike Gedye, head of the technology sector vertical at CBRE, thinks that investment capital will also be directed towards the world of mixed reality in the near future. Referring to recent efforts by large technology companies to

The recent Propel by MIPIM summit in New York crystalised views on financing opportunities

drive the blending of physical and digital experiences, Gedye says: “Mixed reality has a lot of other applications when it comes to building management and the use of VR goggles. You can use them to integrate with BIM models, you can see where cabling is going. In short, this is a world which can really accelerate progress in asset management, and the sheer amount of funding going into it is likely to be a game-changer.” CONFERENCES & EVENTS AT MIPIM 2022 PROPEL BY MIPIM WEDNESDAY, MARCH 16, 17.00 - 17.45 – Propel Station INVEST IN TECH REPORT Presented by MetaProp

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As workplaces strive to win the war on talent and overcome an existential crisis, proptech applications are transforming the safety and utility of offices

fter a winter besieged by yet another COVID-19 variant, many firms have seen their return-to-theworkplace plans set back yet again. But in the midst of an existential crisis about the future of offices, dedicated proptech applications offer a beacon of hope. The number of real estate technology startups focusing on the workplace increased exponentially during the global health crisis, and with good reason. Lockdowns forced firms to not only issue employees with the necessary equipment to be able to function remotely — they drove a wholesale audit of which processes were already digital, and which could be brought online. Secondly, the slow but certain return or workers to offices — even if only part time — has required a

new attention to the use of spaces, from both a logistical and wellness perspective. “Technology plays a pivotal role in workplace optimisation. For example, booking apps with occupancy analytics platforms are increasingly important,” says Andrew Hallissey, executive managing director, occupier services, EMEA at Colliers. “Beyond providing basic workstation and/or area booking, these tools are also beginning to incorporate additional features, including insight into the live availability of spaces; visualisations and mapping of individuals/teams in the office and occupancy levels; and recording of occupancy trends and analytics to adjust for future needs.” He adds: “Looking ahead, predictive and dynamic analytics will likely be added that suggest workstations or spaces based on previous work patterns.”

[Photo credit] ©Valentin Napoli

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At the height of the pandemic, businesses tried a range of protocols to make their offices immediately habitable. Services firm Cushman & Wakefield unveiled its 6 Feet Office concept, with checklists recommending everything from cleaning plans to improving HVAC systems, controlling entry points and reconfiguring gathering and lobby areas for social distancing. Temperature screening devices, hand sanitiser dispensers and plexiglass shields all made their debut in many offices. Employees were also encouraged to schedule their presence around colleagues, to either avoid or coincide with the attendance of others. But as businesses plan for 2022 and beyond, while pandemic precautions remain relevant, it is clear that workplaces must shift back into indefinite operational mode rather than a state of emergency. This must also include creating attracting and appealing spaces, not

just to enhance existing employee productivity, but to win over new talent in a competitive environment. “Offices are going through a time of transformation,” says Damien Soler, group key account director, BMI Group. “They need to both attract tenants and reflect corporate brands more than ever. Aspects such as quality communal spaces have been linked to performance.” For BMI Group, a firm specialising in the manufacture of high-tech roofing materials, the sky really is the limit. Recent transformations for occupiers including L’Oreal in France and Vodafone in Italy have created sustainable, communal spaces on the roofs of their offices to solve a number of issues. “With space at a premium in city offices, being able to move some functions to the roof is very useful,” Soler says. “You can do lots of things apart from just a regular roof ter-

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01/02/2022 21:14

race. You can put a running track or a gym up there, create a farm or a garden. He adds: “You can also make big strides in terms of sustainability. At Vodafone, we installed patented tech on the roof called Noxite, a surfacing material which degrades nitrogen oxide from the atmosphere, and transforms the harmful gas into a nitrate. We also have solutions to manage water on roofs, which is an increasingly pressing issue considering flash floods and other freak weather conditions caused by climate change. By introducing a buffer, you can both comply with increasing regulations around stormwater discharge, and channel it to water green roofs.” SageGlass, innovative window tech from Saint-Gobain, seeks to minimise a building’s energy demand thanks to its dynamic properties. By adapting the amount of solar heat entering the building to the occupants’ needs, SageGlass enables the building to benefit from passive heating during cold times, and to limit the cooling loads during the hottest periods. In its most tinted state, SageGlass can block up to 95% of the sun heat, allowing smaller HVAC systems to be installed as a result.

SageGlass also optimises indoor daylight exposure all year long, reducing the need for artificial lighting. Recent use-cases include the Nestlé HQ in Switzerland, the Google HQ in India, and the Vinci HQ in France. Other tech applications are focused on improving offices through the front door. Steve Van Till, CEO of Brivo says that his firm is helping companies get employees back into the office through solutions built around building access. Van Till says: “Access control has become the fourth utility in commercial properties, alongside water, electricity and HVAC. It is one of the things that you need to operate any piece of real estate. We’ve also moved access into the cloud, which allows its remote management — a crucial requirement for all businesses during the pandemic.” He adds: “When the pandemic struck, the wellness-related features and occupancy management capabilities made available on our mobile and visitor management platform helped all kinds of companies adapt. Going forward, businesses still want to track how many people enter and move through an office, and we can create and manage the data through

our solutions to make spaces better in the future.” Siemens Real Estate is a major player in the successful implementation of workplace technology. According to the firm, Siemens Smart Infrastructure products are increasingly being used to make sure that face-to-face meetings, as well as opportunities for exchange and co-operation, can be viable in the future. Recent innovations include intelligent heating, ventilation and air-conditioning technology that automatically adjusts to the occupancy of the offices, complemented by state-of-the-art filter and air purification tech. Meanwhile Siemens’ smart-phone app Comfy connects building data in real time with additional sources for the user, creating a comprehensive information portal around the workplace. This starts with arrival and departure schedules for local public transport, and ranges from current weather information to the daily specials in canteens, cafes and restaurants. Meeting rooms or work desks can also be booked directly from the app. Hallissey concludes: “We believe the office market faces a renaissance over the coming years.

Steve Van Till, founder and CEO, Brivo

Progressive organisations are focusing on employee and customer experience that leverages the physical and digital experience to optimise productivity, build organisational culture, support employee wellness and enhance business results.” CONFERENCES & EVENTS AT MIPIM 2022 PROPEL BY MIPIM THURSDAY, MARCH 17, 10.00 - 11.00 – Propel Station STARTUP COMPETITION FINAL 2022 winners are revealed.

Photo credit: © James Newton

Tombola House in Sunderland benefits from SageGlass tech

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Feature: INVESTING IN FRANCE

Race to the finish Scores of developments and cities in evolution, underline that the French markets offer diverse opportunities, if investors can only keep up. Ben Cooper reports

nyone who has been to MIPIM over the past decade can’t fail to have noticed the domineering Paris pavilion, in prime position at the Palais des Festivals. Step inside and the sheer scale of the exhibitions on display tell a story in themselves: Paris and the Grand Paris region are undergoing a phenomenal rate of development and change, the largest for 50 years. Once the long-term masterplan is complete, in the 2030s, the Paris region will have gained so much new infrastructure, transport, logistics, retail and residential space, both within the centre itself but, chiefly, in its outer rings, that it is fair to say that it won’t be the same city as it is today. “It’s going to change the face of

Paris,” says Andy Watson, partner and fund manager at Europa Capital. “There is a gigantic amount of infrastructure that is coming out now. “Even within Paris there are some massive building sites like Port Maillot near the Arc de Triomphe, which will be a spectacular hub with lots of lines going in and out of it. Each rail project will be an opportunity for residential, offices and retail.” And that is without citing one of the crown jewels of France’s current development ambitions: the vast array of new space being built across the whole Ile-deFrance region, and beyond, for the 2024 Olympics. With most of the work due for completion in December next year, including an extension of the Paris Metro to serve the

Olympic Village, things are hotting up. Not least for the canny investors and developers who can turn this global event into a unique opportunity. The grand visions being realised in Paris tell one side of the French story. The other side is about the immediate opportunities, and challenges, within the more traditional aspects of real estate investment. The pandemic has affected the dynamics of French property investment across all sectors to varying degrees. Perhaps none more so than logistics; the “winner of the pandemic”, according to Raphael Brault, head of France at AEW. He says: “The pandemic has played a catalyst role in terms of increasing emerging trends and the winners of this pandemic period are clearly first and foremost the logistics asset class. The increase of ecommerce has required a big increase in logistics.”

Paris is undergoing a powerful transformation as it prepares to host the Olympic Games in 2024

Add to this the pressures on the office sector by the radical, almost overnight revolution to work patterns, and inevitably the balance between the four key property sectors in France is shifting. Virginie Houzé, head of research at JLL France, says that the firm’s research shows offices have fallen from around 70-75% of the total investment volumes to 60-65%, with a drop for retail from 20% to between 10-15%. This fall has been made up for by gains by the logistics and industrial sector from 10% of the overall investment pie four years ago to as much as 25% today. For logistics, in real terms, says Houzé, investment volumes have increased from an average of €1.4bn per annum between 2010-2017 to an average of €4.2bn per annum between 2018 and 2021. Such has been the effect of the

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Feature: INVESTING IN FRANCE

changing times, and in particular the catalyst of the past two years, that vacancy rates in the logistics sector are at an “all time low”, says Brault. Which means a major opportunity for logistics-specialist developers and investors operating in France. CBRE head of Investment Properties in France, Nicolas Verdillon, says: “In logistics development, the pressure of demand is bigger than supply. The consequence of this has been yield compression. There is a convergence between logistic and office yield.” Looking at the big picture, France is witnessing less of a radical shift, and rather a levelling up of the ratios between the asset classes. Verdillon says: “The French market is evolving in a way that there is a bigger balance between various asset classes. We can see also that, like everywhere in Europe, residential is increasing tremendously in France. “The demand is even higher [for residential] but there is a shortage of supply, as in logistics, while retail is oversupplied.” The office sector may be showing slightly decreased investment volumes than over the past five years, but it is still the dominant asset

Virginie Houzé, head of research at JLL France

Nicolas Verdillon, head of investment properties France, CBRE

class for investors in the French market. And with so much faith in the French office sector, particularly in the global magnet of knowledge-based talent that is Paris, Verdillon says that a temporary slowdown shouldn’t be mistaken for a long-term trend. “There is still great interest in the office element, but with some questions. In this risk-focused environment people are focusing on core markets. They are more risk averse. “We mustn’t say that because of the decrease in office volume there is a crash.” Looking beyond the capital, asset class diversity is also striking in

the French regions. One such example is the city of Strasbourg, on the French-German border, the capital of the European Parliament. City leaders says they will be proudly exhibiting a slate of real estate projects at this year’s MIPIM that will “go much further in terms of ecological transformation and social and democratic inclusion”. These include the Deux-Rives projects, in the cross-border zone between France and Germany, the Archipel 2 business district masterplan, and the Strasbourg Ortenau Eurodistrict, proving that Paris is by no means the only city pushing things forward in French real estate. Dijon meanwhile is preparing to

unveil its Cité Internationale de la Gastronomie et du Vin in May of this year, a vast regeneration project combining renovated historical buildings with a new eco-neighbourhood focused on food culture, situated on the Burgundy vineyard route. With the dust settling, hopefully for good, it’s clear that the pandemic has left France in an accelerated mode of change, but essentially, Brault says, a very healthy place overall. “We think interest rates will remain low for some time,” he says. “That makes the real returns of real estate very attractive. We see investor appetites remaining or increasing, and a significant appetite from investors looking to increase their exposure to real estate in France.” CONFERENCES & EVENTS AT MIPIM 2022 INVESTING IN FRANCE TUESDAY, MARCH 15, 16.15 - 17.00 – Agora Room FRANCE:TOWARDS A NEW GEOGRAPHICAL DISTRIBUTION? Experts explore how the dynamic French regions are evolving to offer still more to curious investors.

Paris is making lavish plans for its Olympics opening ceremony in 2024

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Feature: INVESTING IN GERMANY

Changing course

High-tech clusters make Mannheim a good choice for lifescience businesses

Germany has long been famed for being one of Europe’s most predictable investment markets. But as 2022 revs up, this core territory may yet reserve some surprises. Isobel Lee reports.

f 2021 will be remembered for the exit of Angela Merkel and a difficult winter marked by recession risks and pandemic problems in Germany, 2022 is likely to usher in more positive headlines. While, like its neighbours, German capital markets revealed the weaknesses of some retail and office segments in the last two years, other asset classes have proved in rude health. “We see opportunities for investors in forward deals, particularly in the areas of multi-family homes, nursing homes and senior living and in offices in prime locations,” Jan Linsin, head of research at CBRE Germany, says. “Opportunities are also offered by investments in the operational real estate sector and increasingly also in life-science real estate and infrastructure.”

Meanwhile, if the territory’s logistics successes reflect a secular trend sweeping the globe, Germany’s residential markets have arguably powered into a class of their own. The year 2021 closed with Vonovia and Deutsche Wohnen’s ‘will they, won’t they’ storyline concluding after Vonovia secured 88% of the share capital and voting rights in Deutsche Wohnen to create the largest housing group in Europe, with a total property value of almost €90bn. Vonovia’s CEO Rolf Buch says: “The merger with Deutsche Wohnen is opening up new opportunities for us. We will use our renewed strength to take on even greater responsibilities on the social front as well.” Yet even the asset classes which investors avoided last year are starting to represent interest-

ing pockets of value. The sale by Patrizia at the end of 2021 of a 50-property strong German grocery retail portfolio met with “unprecedented interest” before being purchased by Germany’s GPEP for a price understood to be around €325 mln, reflecting a record net initial yield of around 4%. “We remain fully convinced of the resilience of food anchored convenient retail in the country and will continue to be active in this property type,” says Mahdi Mokrane, head of investment strategy & research at Patrizia Germany’s potential has often resided in its regional powerhouses, and 2022 seems likely to shift up a gear. The city of Hamburg’s extensive port and river areas are set for further development, through the regeneration project HafenC-

ity, according to investor relations chief Christina Ruppert. “Together the three urban development areas by the rivers Elbe and Bille — HafenCity, Grasbrook and Billebogen — represent a transformation zone of over 300 hectares in size,” she says. “With homes for some 25,000 people and space for around 70,000 jobs it is a development opportunity whose character is second to none in Europe, if not beyond. The Science City urban development project simultaneously opens up further future perspectives for Hamburg as a city of knowledge and science.” While 2021 brought its challenges, on the whole, its crises also prompted positive action, Ruppert says. “HafenCity’s vision has changed as a result of the coronavirus pandemic to the extent that it now demands even higher

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standards of resource-efficient and climate-neutral urban development. A mixed-use, densified district like HafenCity must meet the qualities and standards of sustainability, environmental sustainability and social equity if it is to be both liveable and resilient.” She adds: “This can be achieved with well-designed green spaces and open spaces, inclusive and collaborative forms of housing, and innovative, sustainable office buildings that flexibly adapt to the need for hybrid and mobile working.” The outlook is also bright in Mannheim, where, according to Christiane Ram, director of the city’s office of economic development, “companies find a wide range of investment and settlement opportunities. The business location offers the best infrastructural framework conditions, as well as innovative networks”. Current development projects include the Mannheim Medical Technology (MMT) Campus, situated within walking distance of the University Hospital, which features office, workshop, laboratory and cleanroom space, as well as residential and commercial units resulting from the conversion of the Alte Brauerei. As a hotspot for digitisation and smart production, the city of Mann-

heim is also using the European Green Deal as an opportunity to reshape its sustainability policy. With the Green Tech Innovation Center, a supra-regional project of the Rhine-Neckar metropolitan

“We see opportunities for investors in forward deals, particularly in the areas of multifamily homes, nursing homes and senior living and in offices in prime locations.” Jan Linsin

region will emerge under the lead of the Mannheim Office of Economic Development, which is set to create a physical space for green technologies in the Glückstein Quarter by the end of 2025. Meanwhile Berlin, also no stranger to innovation, will be throwing down the gauntlet to other European capitals with a raft of dynamic regeneration programmes. According to the Berlin Senate Department for Urban Development, Building and Housing, the government plans to building 200,000 new homes over the next

10 years to alleviate pressure on current supply-demand dynamics. While the city state already comprises 40% parkland and water, significant green spaces will also feature in future plans, facilitated by new railway lines and road and cycle networks, as well as climate-friendly construction and innovative rainwater management in new and existing districts. The State of Berlin has moreover commissioned Tegel Projekt to transform the former Airport Berlin Tegel into a green and innovative mixed-use district characterised by two major developments. Berlin TXL — the Urban Tech Republic, a research and industrial park for urban technologies, and Schumacher Quartier, a new residential district slated for completion in 2027 will take shape on the 500 ha site. More homes will follow in the neighbourhoods Cité Pasteur and TXL Nord, while Grün Berlin is landscaping some 200 ha of parkland. “Berlin TXL will focus on what keeps the 21st century’s growing, major cities alive: the efficient use of energy, sustainable construction, eco-friendly mobility, recycling, networked control of systems, clean water, and the use of new materials,” Projekt Tegel

CEO Philipp Bouteiller says. The technological park will focus on urban use cases, to benefit not only the city, but the world, Bouteiller adds. Meanwhile, the whole project’s ground-breaking approach to sustainability will also make other cities sit up and look. “The scheme will include more than 5,000 homes, predominantly made from wood, making it the largest all-timber urban area in the world. From pioneering technology around water and energy use, to our biodiversity pledge, we consider this publicly-funded project to be ‘open-source’, so we’re happy to share our findings with the world,” he says. CONFERENCES & EVENTS AT MIPIM 2022 INVESTING IN GERMANY THURSDAY, MARCH 17, 15.45 - 16.30 – Agora Room GERMANY – A NEW REAL ESTATE ERA? Is Germany still the powerhouse of Europe’s economy? What market stresses may emerge after the departure of Merkel? Can investors still find good value in Germany, and if so, what asset classes and regions should they focus on?

A new neighbourhood is taking shape at Waterkant in Berlin Spandau

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Feature: INVESTING IN THE UK

Investors back Britain The protracted process of separating from the EU was expected to loom over UK real estate long after Brexit day — yet, as Clive Bull discovers, investors bound for Britain are in buoyant mood

hile UK real estate investment volumes were depressed in 2020, investor confidence is now driving the country towards a strong recovery, according to Will Matthews, head of UK commercial research at Knight Frank. “Last year we saw around £5560bn (€66-72bn) of transactions in the UK, which is a pretty good year actually, all things considered,” Matthews says, indicating a broadly even split between overseas and domestic capital. Brexit, he believes, is not the factor it once was. The pandemic has induced a period of reflection inspiring landlords and occupiers to ask deeper questions about the spaces they want and how they will use them. There remains some evidence, though, of a “Brexit dis-

count”. “There is still a difference between what you might pay for a prime Central London office compared to say Berlin or Paris, and you might attribute that to Brexit, but it’s not a very big difference these days, so I don’t think people are making decisions on that basis alone. That gap has narrowed over the past year or so,” Matthews says. The capital remains a safe choice for other reasons, adds Matthews. “Over the last couple of years, London has still been pretty liquid and I’d say many other markets don’t approach its liquidity even in their best years.” He says industry dynamism is also a factor — “the financial markets and everything that goes with that, but also the technology sectors and life sciences”.

Myriad opportunities in the UK regions, including Newcastle, are inspiring fresh waves of capital

Jules Pipe, London’s deputy mayor planning, regeneration & skills, suggests this latter element is key. “Before COVID, we saw growing investment in medtech and laboratory space across the capital, which is of course accelerating now. The diversity of our population and the capacity of the NHS for medical trials and its unparalleled database puts London at the forefront of future global medical research, so we’re sure to see continued investment in facilities to support this.” Pipe says that while there has been some inevitable slowdown in construction resulting from the pandemic, planning activity has remained strong, particularly in offices and hotels, which reflects faith in London’s long-term resilience and intrinsic strengths. “London is a global leader for FDI and its attraction remains as

strong as ever. Opening later this year, the Elizabeth line will add 10% capacity to central London’s network bringing an additional 1.5 million people to within 45 minutes of the heart of the capital. It has created the capacity and conditions for major new headquarters for, among others, Facebook, Deutsche Bank and Société Generale, allowing for the accommodation of more than 300,000 new jobs in key employment hubs including Liverpool Street and Canary Wharf,” he says. The City of London in particular is proving a Mecca for development activity, says Alastair Moss, chair of the City of London Corporation’s planning and transportation committee. “We have seen strong developer confidence in the future of the City of London with unprecedented levels of planning applications. Important-

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ly, much of these new developments already have strong occupier interest or have indeed been pre-let.” The pandemic has embedded trends which were already developing within the market. Most noticeably, there has been a flight towards quality, Moss says. “Occupiers are more regularly demanding office space which includes flexible space for innovation and collaboration, as well as access to fresh air. Developments which include health and wellbeing aspects are more attractive and garner more interest from potential occupiers.” But there’s also plenty to be optimistic about in the rest of the UK. Jon Neale, head of UK research at JLL tips regional city centre offices as one to watch, adding that industrial has also seen the highest returns over the year, alongside the much sought-after retail warehousing. “Given their support from structural trends, the logistics and living markets will remain investors’ preferred options,” says Neale, “but a lack of supply suggests that it will be difficult for volumes to increase beyond this year’s total. In their

[Photo credit: Didier Madoc Jones of GMJ and City of London Corporation]

Feature: INVESTING IN THE UK

London’s development plans are set to transform the skyline

search for yield and resilient assets in a higher-inflation and perhaps more uncertain world, investors will move into areas such as green infrastructure.” In the North East, Jen Hartley, director, Invest Newcastle, says the city offers a number of opportunities for investors. Post Brexit and in the wake of the pandemic, Newcastle’s response to building back “better, bigger and greener” includes 90,000 government jobs into the city and Newcastle City Council plan to invest £50m in the city centre transform plan. In the industrial sector Hartley says rental and capital values are

well above expected levels which is having significant positive impact on yields: “This is simple supply and demand and will be similar story right across the UK, driven by e-commerce and the desire to manufacture goods as opposes to purchasing from overseas.” Hartley also points out that despite COVID being heralded as the death of the office, the city has in fact seen over half a million sq ft (50,000 sq m) taken up during 2021. Turning to the south, Tim Hancock, chair of the Business South action group Regen South and planning and design company Terence O’ Rourke, says there

are important reasons for investors to look at Central South. “Assets are relatively undervalued at the present time and represent a good investment opportunity. The economy of the Central South contains many world-class companies and key sectors which are well poised for growth such as life sciences, aerospace, marine and digital technologies.”

To the west, major regeneration projects are under way in Cardiff Bay and Cardiff city centre, and Vikki Beesley of Invest in Cardiff says yields have remained robust and investor confidence in the city is high, reflecting both the scale and ambition of the public and private sectors, and the levels of infrastructure being put in place. An analysis of future investment trends undertaken for the city by leading cities expert Dr Tim Williams outlines how some medium sized cities like Cardiff, which don’t suffer the same cost and congestion issues as the larger cities, are well placed to respond to the post-pandemic economy, and in tandem with this are likely to see more multi-use investments being brought forward. CONFERENCES & EVENTS AT MIPIM 2022 INVESTING IN THE UK WEDNESDAY, MARCH 16, 15.15 - 16.00 – Esterel

Alastair Moss, chair of the City of London Corporation’s planning and transportation committee

UK: DEVOLUTION, THE LEVELLING UP AGENDA AND HOUSING FIRST Experts address the challenges and opportunities to be found in the UK’s property markets.

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Feature: INVESTING IN CEE

Dynamic and diverse

Investors compete for rich pickings in markets such as lively Riga

Poland remains the star real estate market within the CEE, with a surging industrial sector. However, the lack of available product in logistics and residential may dampen the outlook for deal volumes, says Mark Faithfull

oland continues to dominate real estate investment volumes across Central and Eastern European (CEE), with offices and industrial the standout asset classes. However, lower COVID vaccination rates compared with the EU average and constrained supply in sectors such as residential add a note of caution to an otherwise positive picture. Poland maintained its dominant position, generating over 51% of total regional investment transactions for the first three quarters of 2021, according to advisor Colliers International. Shares within asset classes have shifted significantly, with most deals recorded in the logistics and office sectors. Recent among these, Generali Real Estate completed the acqui-

sition of 7R Park Krakow IX, a core logistics asset in Poland, on behalf of the Generali Real Estate Logistics Fund (GRELF). This was the second transaction in the logistics segment in Poland between the two last year, after the acquisition of a warehouse complex in Gdansk. Indeed, despite the ongoing disruption caused by the pandemic, investment volumes for the first three quarters of 2021, totalling €7.3bn, are only down 10% yearon-year and about 20% lower than the same period in 2019. According to Colliers, year-end volumes once confirmed are likely to be at similar levels to 2020 at between €10bn-€11bn. Kevin Turpin, regional director of research, CEE, says: “We have recorded limited movements in prime yields for many markets, primarily due to the ongoing lack

of transactional evidence to support further shifts. The main exception, however, is prime logistics yields that have come in by almost 100bp on average across the CEE since Q1 2020, with Poland reaching over 180bp.” The office sector just retained top spot with a 36% share of Q1-Q3 2021 volumes. Logistics and residential continue to post increasingly strong volumes, limited primarily by the shortage of available product. Retail volumes continue to be supported by retail park and supermarket assets, while hospitality volumes remain limited. The CEE’s logistics sector was further boosted late last year after Allianz Real Estate launched a joint venture with Belgium’s VGP to invest €2.8bn in European logistics real estate across five

co-living

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NREP’s 800-apartment Smartti Mokotów co-living facility is the jewel in its Polish operation

years. The fourth joint venture between Allianz and developer VGP since 2016, its focus will be on the Czech Republic, Hungary and Slovakia, plus Germany. The two companies last year jointly acquired 19 assets for €424m. Also in December, Savills Investment Management acquired the 90,000 sq m 7R Park Beskid II, a multi-let logistics asset in Poland, on behalf of Vestas Investment Management from 7R and VRE, for in excess of €101m. In recent months 7R has also divested the first phase of 7R Park Lodz West II, acquired by Macquarie Asset Management on behalf of one of its managed accounts. “When preparing new investments in 7R, we focus on the high quality of our facilities, enriched with technology and ecological solutions,” says Lukasz Jachna, chief capital markets officer, 7R. “I believe we have a common goal of creating long-term value for logistics facilities.” Colliers says that overall, Western and Northern European funds contributed 42% of all investment volumes in the first three quarters of 2021, most notably Germany, the UK and Sweden. CEE capital was also active, with a 30% share of total volumes. Czech domiciled capital was also active and one such example is Zeitgeist Asset Management, which last year bought a 157-room student residence in Krakow. Czech-based real estate operator Zeitraum — a subsidiary of Zeitgeist Asset Management — runs the property. “Through this transaction, we are implementing our strategy of building a portfolio of private student dormitories in order to soon become the market leader in Poland,” Peter Noack, CEO of Zeitgeist Asset Management, says. “In autumn 2022, the currently renovated, student house in Warsaw’s Solec district will also be added to

the portfolio under the Zeitgeist Student Housing brand.” In the summer, Copenhagen-based NREP made its first investment in Poland, acquiring BIK, a local logistics real estate investor and developer with a logistics portfolio of 130,000 sq m, and investing in over 1,000 new residential apartments in central Warsaw from Finnish housing developer YIT as part of an initial €500m investment. By 2025 NREP aims to deliver a total of 10,000 new homes in major Polish cities, matching its scale in Scandinavia, with the largest project the 800-apartment Smartti Mokotów co-living facility. Poland will be NREP’s most important market in 2022, says director Rune Kock: “We hope to announce the next transactions later this year, when the contracts are signed. As with our co-living properties in Scandinavia, our projects will typically have a gym, restaurant, and common areas for work and leisure. All this is included in the lease price, as well as utilities.” Chief investment officer Jani Nokkanen says: “The private rental offering in Poland is growing, but still in its infancy compared to Denmark, Sweden or Finland. Only 16% of Poles rent their homes, and we see demand for modern, customer-friendly rental options of high quality.” Other markets are also expanding, with a record investment year for Latvia, with total annual volumes reaching €655m, ahead of the previous record in 2015 of €395m, according to Colliers International Latvia. Martins Kokalis, head of investment promotion, Rīga Investment & Tourism Agency, says: “The vast majority [over 80%] of investment took place in Riga and, while the transaction num-

bers are similar to previous years, more large-scale transactions took place.” Kokalis says that over 80% of capital originated from the Baltics, notably Lithuania, Estonia, and domestic. Prime office yields compressed by 10 bps to 5.5% and prime industrial by 25 bps to 6.5%. Prime shopping centre yields held at 7.0%, with retail accounting for 51% of total volumes, followed by offices (24%), and industrial (13%). “However, looking ahead, office space dominates the development market,” Kokalis adds. “While almost no retail projects are currently under construction, over 150,000 sq m of office space is currently being built. Since the implementation of new rental regulations in 2021, investor interest in the residential rental market has also gained momentum.” Turpin believes that economies across the region have held up relatively well, although he cautions that there are several challenges ahead. “The ESG agenda has become and will continue to be a key factor for change and success when investing in real estate,” he says. “In addition, supply chain and labour issues are causing shortages and price hikes for construction materials and essential components and goods in other industries. Residential prices are spiking, causing concern over affordability, on top of the energy crisis and other inflationary pressures.” CONFERENCES & EVENTS AT MIPIM 2022 INVESTING IN CEE TUESDAY, MARCH 15, 16.30 - 17.15 – Workshop Room CENTRAL EASTERN EUROPEAN FOCUS Sponsored by Skanska

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Feature: INVESTING IN THE NORDICS

Europe’s north star Cities like Oulu in Finland are proving a beacon for overseas capital

Last year broke investment records in Northern Europe, with residential leading the way and a net positive flow of foreign investment for the sixth year running. Mark Faithfull reports

he Nordic property markets set a ground-breaking record in 2021, with transaction volumes of more than €71bn, 65% up on the previous year and by far the highest volume ever recorded, according to figures from property advisor Pangea Property Partners. “This is an extraordinary year, with high transaction activity all across the Nordics. After a strong first half of the year, activity has just accelerated during a second half that will be difficult to beat,” Mikael Söderlundh, head of research and partner at Pangea Property Partners, says. The volumes in Sweden, Norway and Denmark hit all-time highs in 2021. In Sweden, the transaction volume increased 93% to €35bn, representing half of the Nordic transaction market. In Norway (54%) and Denmark (61%),

volumes increased significantly, while budging up 6% in Finland. The total number of transactions in the Nordics exceeded 1,300 for the first time and the average deal size increased to €53m from €41m. Pangea’s bullish outlook is shared by Copenhagen-based Lior Koren, partner, capital markets, Cushman & Wakefield, who adds: “We had a record-breaking year in Denmark in 2021, with transactions totalling €14.2bn, ahead of the former highest of €12bn in 2017. With constrained supply, the capital flows have been going further and further out of Copenhagen to other cities, with the top 25 cities the main target. “For international investors, it’s quite a big story to head to smaller cities and one of the main appeals for investors is demographic development and for around 20 of

those cities, these figures are moving in a positive direction,” Koren says. Koren describes the situation as the most liquid Denmark has ever had, adding that residential investment included multi-family, apartment blocks, student housing, senior living and even row houses. Pangea says foreign buyers accounted for a third of Nordic transaction volumes in 2021 but only 15% of sales, which gave a positive capital inflow to the region for the sixth consecutive year. In Finland and Denmark, the share of foreign buyers was more than half and investor interest in Finland has headed north, boosting some of the country’s furthest flung cities and regions according to Janne Ylitalo, service manager, investments, BusinessOulu, Invest in Oulu. Ylitalo adds: “The north has attracted large industrial investments in mining, green energy,

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and heavy industry like steel and wood processing. Also, tourism has been booming in Finnish Lapland as a safe travel destination with clean nature and climate.” He says that industrial investments in Oulu such as the Stora Enso paper mill conversion for Kraftliner — two phases, both of €350m — and the €75m Junnikkala’s sawmill investment, have increased employment, requiring new construction for logistics, industrial facilities and retail. Growing tourism has boosted accommodation needs in the whole of northern Finland, especially Lapland. “Tourism is also growing in Oulu where the hotel capacity utilisation rate was the highest in Finland during the summer,” he says. “Oulu has been the ‘Riviera of the North’ for long time and now the seaside resort Nallikari is evolving and Nokia’s decision to build a new €220m R&D and production campus for 2,500 employees

is significant in the development of new technologies and businesses. The biggest investment in the city centre under planning is a €500m travel centre including hotels, offices, services, housing, and an event arena.” Retail is also more robust in the Nordics than most of Europe. Citycon recently agreed to sell convenience-based centre Columbus in Helsinki, Finland to NREP for €106.2m and Scott Ball, Citycon’s CEO, adds: “Columbus has been transformed to a grocery-anchored urban hub, which has also been reflected in its increase in value. The transaction highlights the attractiveness of high-quality, Nordic real estate assets to investors.” WP Carey recently bought a €41m grocery store portfolio in Denmark in a sale-and-leaseback deal, acquiring 11 stores totalling 13,100 sq m leased to grocery re-

Investors are impressed by the bright outlook of the Danish capital

tailer Coop Danmark for 15 years. Karolis Adlis, senior investments vice-president at WP Carey, says the Nordic countries continue to be a key market for WP Carey, having invested approximately €800m in the region since 2001. Another foreign investor is Aberdeen Standard Investments (ASI), which recently sold its Nordics asset management business to Denmark’s DEAS Group. DEAS Group is taking over the management of a €2.5bn AUM portfolio of 131 properties consisting of offices, warehouse/logistics, retail, and residential. Neil Slater, global head of real estate, ASI, says: “Our growth strategy is built around our clients’ needs and that very much includes exposure to Nordics real estate. Working with our own Nordics hub in Frankfurt, the relationship ensures we have excellent asset management on the ground and the capability to source and project manage developments for clients.” Pangea Property Partners adds that the largest property segment in 2021 was residential, accounting for 32% of total volumes, followed by offices with 23%, and logistics with 17% and Cushman & Wakefield’s Koren notes that in Denmark the office market remains mostly based around prime locations in city centres. “Outside of these sites, the location needs a specific appeal to attract capital. Retail is the area where investors are the most cautious, although we are seeing even that picking up a bit,” he says. “Because of constrained supply we are seeing investors taking more risk, getting in earlier, forward funding and looking at land deals. “We expect a strong 2022 but constrained supply means it will be challenging to top 2021. With the market opportunities-driven, we may see activity in terms of consolidation, with major investors acquiring smaller companies and this could create more activity.” This being the Nordics, sustain-

Mikael Soderlundh, head of research and partner at Pangea Property Partners

ability is also a key priority and NREP has committed to being carbon neutral by 2028 without offsets, encompassing both operational and embodied carbon. Claus Mathisen, CEO of NREP, says of the initiative: “From the largest Nordic rooftop solar plant to embodied carbon concrete, NREP has always pushed the boundaries when it comes to ESG innovation and investment, and we have no intention of slowing down. To achieve the ambitious targets, we have said many technologies need to be deployed in parallel and at scale, and we are determined to demonstrate how this can be done.” With approximately €12.5bn AUM, by 2025 NREP will have completed the development of three large-scale, net zero innovation projects — a residential and logistics project, as well as an office retrofit — which will act as a benchmark for portfolio-wide construction practices. CONFERENCES & EVENTS AT MIPIM 2022 NORDIC INVESTMENT FOCUS WEDNESDAY, MARCH 16, 17.30 - 19.00 – VGA NORDICS FOCUS Why have cross-border investment volumes increased so much in the Nordics in the past year? What asset classes and regions are exciting for investors? What are the challenges and opportunities in the region?

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Feature: FOCUS ON ASIA

All

play for

Hong Kong’s strong growth prospects deepen the allure of schemes like Lee Tung Avenue

Rebounding deal volumes in 2021 proved that despite pandemic restrictions and geopolitical worries, investors are betting on Asia. Isobel Lee reports

eal estate markets across the Asia-Pacific (APAC) region were remarkably resilient in 2021, with the year seeing an estimated 30% rise in volumes compared to 2020, according to data from Savills. Simon Smith, Savills’ head of research Asia-Pacific (APAC), says: “Transaction volumes had fallen to 2017 levels in 2020, but the bounce back is taking us into record territory for the year. Whether we will see similarly high levels of activity in 2022 is open to debate, and much will depend on how the pandemic develops and

how policy makers respond.” However, all signs suggest that there is plenty to be positive about. APAC economies recovered much lost GDP growth in 2021, and are set to expand further in 2022, with India (8.8%) and China (8.2%) leading the way, while the forecasts for Hong Kong and Singapore (6.5% and 6.4% respectively) are also strong. “The weight of capital allocated to the region by private equity real estate funds suggests an active year of deal making ahead. At the same time, a relatively benign inflationary environment leads us to believe that any interest rate rises

will be modest,” Smith says. Across the region, investors are finding opportunities that fit a range of strategies, thanks to APAC’s compelling mix of developed and developing markets. But its dominant territory remains China, the world’s biggest property market by asset value, with around 20% of the globe’s real estate. Its vast geographies are inhabited by 1.4 billion people, including a giant and aspirational middle class — although the latest demographic clues suggest that population growth might now have peaked. Many real estate funds, both do-

mestic and cross-border, are bullish on the country, says James Macdonald, head of Savills research for China. “We are seeing a lot of investors interested in new economy sectors including logistics — both dry and cold; life sciences and data centres — though the latter is challenging to deploy capital; as well as increasing interest in the multifamily sector, still at a nascent stage of development.” He notes that longer term traditional investors are seeking out opportunities for the discounted pricing of commercial assets, and increasingly looking at debt deals.

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Yet international players hoping to break into China for the first time this year may struggle to gain a foothold, Macdonald warns. “China has become incredibly competitive. Commercial asset yields are low compared to the cost of borrowing with investors switching to niche sectors which require a lot more specialist knowledge and due diligence,” he says. “Good asset management teams are essential and developing them is challenging. Just getting in and out of the country to carry out site inspections can also be difficult at the moment.” He adds: “The best way is really to go with a trusted partner who already has experience and a team on the ground.” The importance of cross-border partners is a recurrent theme across the region. In Japan, Diamond Realty Management, a fully-owned subsidiary of Mitsubishi Corporation, launches and manages funds for both domestic and international institutional investors interested in Japanese property. Meanwhile, its US arm helps Japanese capital participate in North American opportunities. A sustainable investment manager which targets key secular trends, recent achievements include a slate of positive GRESB outcomes for its funds and the execution of a series of green loans. In the US,

the firm launched a new logistics development fund at the end of 2021, as it continues to generate value for its investors. “It is important for overseas investors to identify investment managers that have the necessary people, processes and expertise in place to execute strategies which are in line with their investment criteria,” Suchad Chiaranussati, chairman of pan-Asian investment manager SC Capital Partners, says. “We are personally seeing tremendous interest in APAC from overseas and believe that Asian real estate offers very attractive risk-adjusted returns.” SC Capital Partners has expanded its core and core-plus offering in the region in recent years, which Chiaranussati says has caught the attention of European players. Its opportunistic fund series RECAP, meanwhile, focuses on logistics, senior living, data centres and credit, where Chiaranussati notes “the competition is getting stronger and stronger”. The firm’s experienced senior management team and access to local markets, however, stands it in good stead. “We see ourselves as more a ‘mid-cap’ player with a tailored and thematic investment approach, rather than a large capital allocator,” he says. The firm focuses most of its attention on the region’s developed markets, spanning Japan, South Korea, Hong Kong, Singapore,

Suchad Chiaranussati, chairman SC Capital Partners

Australia and New Zealand. For Smith, these are the territories where international investors are likely to pool capital in 2022, as China remains out of reach. In terms of asset type, “industrial & logistics will be the favoured real estate sector, despite widely-publicised supply chain disruption. The sector itself has come to encompass a broader and broader range of uses including everything from straightforward manufacturing and storage to R&D, datacentres, high-tech manufacturing, last-mile delivery/urban logistics and temperature-controlled facilities.” Another global trend in evidence in Asia is the interest in so-called “alternative” assets. Life-sciences real estate, flexible offices, senior housing and multifamily are all likely to attract the international dollar. However there remains less certainty around the asset types that once dominated the industry — ranging from traditional offices to

high-end or tourism-related retail and hospitality. Smith says: “Regional retail and hospitality have come to rely heavily on cross-border tourism, particularly from mainland China, and without a resumption of travel it is difficult to see a way forward.” But there is one property type that everyone agrees on — and that is ESG-friendly real estate. For Smith, this may yet be the defining trend of 2022 in APAC investment. “Sustainable buildings across all sectors are finally attracting the attention of investors, developers and occupiers, as a rising tide of regulation and a growing awareness of ESG across the region force a rethink,” he says. “Net-zero pathways and the need for low energy buildings will become a priority over the next five to eight years. Mounting evidence of a ‘green premium’ suggests a tangible shift is taking place and investors don’t want to be left behind.”

CONFERENCES & EVENTS AT MIPIM 2022 FOCUS ON ASIA TUESDAY, MARCH 15, 11.30 - 12.15 – Esterel THINKING OF ASIAN URBANISM THROUGH SMART CITIES As Asia’s great metropolises lead through innovation, investors explore the best routes for becoming a part of the APAC success story. Simon Smith, Savills’ head of research Asia-Pacific

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Feature: INVESTING IN LOGISTICS

The missing link A high-tech Cromwell-owned asset near Milan in Italy

The maturing industrial market is heading for greater polarisation, as factors ranging from trading routes to ESG metrics increasingly define the sector’s prime product. Isobel Lee reports

rom supply-chain jams to surges in e-commerce, the circumstances of the pandemic brought the utility of logistics assets into sharp focus. Yet the business case for investing in industrial properties predates the global health crisis, and is set to persist long after its effects, according to experts in the asset class. Robert Cotterell, head of investment, Europe & head of UK, Cromwell Property Group, says: “We calculate that due to rising online spending alone, over 6.5 million sq m of additional logistics space will be needed across Europe by 2026. Furthermore, reshoring activity and a shift from ‘just-in-time’ to ‘just-incase’ supply chain models will create additional occupier demand.” However, the fundamentals that

make the sector so attractive also complicate the picture for would-be investors. Cotterell adds: “Despite this strong demand, record low vacancy, a lack of developable land and high construction costs restrict the ability of the supply pipeline to respond. This means strong rental growth potential for well-specified and located stock and scope for yield compression on higher yielding product. The trick will be selecting assets that comply with future occupier and ESG requirements.” Investors who want to build a tradeable portfolio of high-quality assets need to be smart about finding value, according to Jack Cox, head of EMEA industrial and logistics capital markets, CBRE. “The successful investors are those which have a very holistic view of the sector,” he says. “Holistic in terms of the entry

points that they would consider — everything from greenfield and brownfield land through forward-funding, building up investment portfolios through portfolio and granular asset acquisition, and particularly, having an open mind towards recapitalisation.” For Cox, that approach also means taking a broad view of the way the asset class is evolving and requires a willingness to perform more complex underwriting. “In the past, logistics was about a spread over office yields, while total return was essentially an income play. Today, landlords can leverage the occupational market more strategically and differentiate their leasing strategies relative to the desirability of an end-user or 3PL for a particular building and whether single or multiple tenant occupancy is preferable.” Anne Kavanagh, chief invest-

ment officer of Patrizia, says the firm has been “strong believers in the sector for many years now”. She adds: “The shift towards ‘last hour’ logistics, as well as demand tailwinds from emerging subsectors such as dark kitchens, q-commerce that brings small quantities of goods to customers almost instantly, and cold storage have increasingly shifted the occupier demand balance towards urban/infill locations and has driven strong rental growth, in particular for the more urban micro locations.” Kavanagh suggests that this urban focus will keep Patrizia busy for the years to come. “Identifying well-connected urban locations with high purchasing power is one of the most topical focuses of modern real estate investment strategies in Europe today,” she says. “With limited land availability and competition for strategic loca-

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Feature: INVESTING IN LOGISTICS

Robert Cotterell, head of investment, Europe & head of UK, Cromwell Property Group

tions with alternative real estate property types… logisticians and retailers need to identify the most efficient locations for their urban distribution footprint.” Allianz Real Estate, an increasingly active logistics player with some €10.3bn of holdings in the sector, is pursuing a geographically diverse strategy combining investment and debt. While 2021 saw some of the firm’s most significant transactions, including the largest single logistics deal in the US to date, and additions to its Italian fund comprising over €400m across 16 facilities, 2022 is likely to bring further deals. In January, Allianz unveiled plans for a new joint venture with VGP to develop a portfolio of prime logistics assets in Germany, the Czech Republic, Hungary and Slovakia, prioritising the environmental profile of each facility. The new assets will aim to encompass Carbon Risk Real Estate Monitor and EU Taxonomy compliance, the use of sustainable certification including high BREEAM or DGNB ratings, and EPC criteria, among others. As such, the JV is expected to help Allianz Real Estate meet its target to reduce carbon emissions across its portfolio by 25% by 2025 and be carbon net-zero by 2050. The strategy reflects the fact that

an increasingly important factor in warehouse selection is the ESG dimension. Yet for Cox, the challenges faced by logistics assets differ at times from the rest of the real estate industry, due to the way they are used. Logistics is one of the few areas where older buildings are not necessarily energy dinosaurs, he says. “While some properties may have low ESG ratings due to their age, they are often not heated, so can have very green operational metrics. Also, if assets are positioned in locations which reduce product miles, that can again have a positive environmental impact on the supply chain.” However, the industrial sector seems likely to make big, green strides in 2022 as the market focuses on the greater differentiation of prime product. Towards the end of 2021, logistics firm LCP clinched what it described as the sale of Europe’s first carbon-neutral logistics asset for a record net initial yield below 4%. Located near Bergamo in northern Italy, the 163,000 sq m facility is pre-let to Amazon and was acquired by Korean investor Midas International Asset Management for almost €200m. James Markby, LCP’s managing partner, says: “We are quite excited to be the first to be able to complete

Jack Cox, CBRE head of EMEA industrial and logistics capital markets

and actually commercially market a carbon-neutral accredited logistics building in Europe, also at serious scale. I think this proves what has so far been a missing link in the ESG discussion, that is, the commercial connection between premium pricing on an institutional-grade building and its carbon-neutral status.” At this stage in the game, the debate has also shifted beyond just matters of carbon. “In reference to the ‘S’, employee welfare is fast becoming a major ESG issue for the logistics industry. Accusations of modern slavery and heavy

use of zero-hour contracts has ignited a debate on employment conditions, but it goes much deeper than that as warehouses can be hazardous working environments. This means logistics tenants are likely to face tighter legislation and much more media scrutiny in the future,” Cotterell says. He adds: “Increased investment in digitalisation and technology will be one area that helps the sector mitigate these challenges. For example, wearable technology can be used to highlight issues and propose remedial actions before issues arise.”

Supply chain complexities are inspiring firms to take more space, such as this Cromwell asset in San Mauro Torinese, Italy

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Feature: INVESTING IN HOSPITALITY

In it for the

long haul A

lthough cancelled travel and vacant hotels remain an enduring memory of the pandemic, the real estate investment community is actively checking into the hospitality sector with a palpable sense of excitement. According to Patrick Saade, senior managing director of hotels & hospitality JLL, a significant majority of recent global hotel transactions — some 85% by value in 2021 — have been struck by private equity funds. “Investors are competing on a limited number of deals, which are being won by capital with strategic business plans and an edge,” he says. Meanwhile, in the continued absence of distress, lenders have been refinancing and acquisition-financing deals, aided by low interest rates. “If you don’t want to sell, you have a lot of debt options right now,” he says. Yet there are a few investors who are willing to divest hotels, and they include both family offices that are particularly exposed to

the sector, and rather opportunistic sellers. “Family offices realise that they are going to have to increase their capital injection and pack more liabilities into those assets as time goes on, including employee payments, while a few opportunistic funds are selling because prices are holding up so well,” Saade says. On the buyer side, there is no shortage of fresh capital queuing up, in anticipation of the travel industry’s full recovery. “Leisure travel is pretty much back to normal,” he adds. “It’s only being impacted by government-imposed rules, including testing obligations. The moment that you allow people to travel freely, trains and planes and hotels are full.” Dieter Kornek, head of project scouting at TUI Hotels & Resorts, agrees. “The last months have shown that tourism is coming back powerfully and that tourism is still a growth market. Especially leisure hotels are benefiting from this trend and hence lot of investors, both institution-

al as private investors, are more and more interested in leisure hotels and the resort hospitality in general.” Kornek adds: “We noticed that clients are booking superior grades of hotels and rooms as well as booking already before departure optional extras and services for spending authentic holidays. We also observed that the average length of stay is slightly increasing. We are very optimistic for the future, and also look forward to the return of long-haul destinations, especially in South East Asia.” It’s not just far-flung resorts that have a sunny outlook. Marc Vieilledent, chief development officer of super budget brand easyHotel says that his firm’s Europe-focused urban and affordable formula proved resilient throughout the pandemic, and has significant room for growth. “In December, shareholders pledged to more than triple our estate by 2026 with a cash injection of €50m,” he says. The brand currently boasts 42 hotels with

Guests can’t wait to fly in to the TUI Blue Bahari in Zanzibar once more

3,977 rooms, and while leisure travel is the leading driver, the group has continued to welcome business travellers, largely domestic in nature, throughout the crisis, according to Vieilledent. “These customers are often entrepreneurs who need to move city to city to meet with clients. Its’ a resilient and evergreen sector which performed well during the pandemic and is set to grow further.” The findings reflect Saade’s view that investors are optimistic about a broad variety of opportunities in the hospitality sector, “from ambitious resorts to shuttered, city-centre hotels” and even the beleaguered conference segment. Adds Saade: “Although the meetings, incentives, conferences and exhibitions (MICE) sector was hard hit at the height of the pandemic, there are plenty of investors who are now taking a contrarian position. It’s a segment which boomed in the middle of the last decade, offering re-

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[Photo credit: Sandrine Roudeix]

With pent-up customer demand promising a wave of fresh reservations in the coming season, hotel owners and operators are optimistic they will soon be fully booked. Isobel Lee reports

[Photo credit: Sandrine Roudeix]

Agnès Roquefort, chief development officer, Accor

Marc Vieilledent, chief development officer, easyHotel

cord revenue per available room (revPAR), and several funds are already anticipating its strong return.” For French multinational Accor, business also remains an important, if evolving, segment. “The corporate world has experienced a massive transformation of how it approaches work,” says Agnès Roquefort, Accor’s chief development officer. “Accor anticipates that business travel will continue to evolve in an integrated way with remote workspaces, workfrom-home, and hybrid work arrangements.” In the meantime, the pandemic has also provided many owners and operators with a chance to transform their existing stock. Adds Roquefort: “The recent experience of lower-than-normal occupancies has given us opportunities to reposition, refurbish, and in some cases, reflag properties that needed a boost. At the same, the industry has presented an ideal time to invest in hotel assets at attractive prices.” Despite all of the positive signs

in the industry, it seems clear that the pandemic has also wrought permanent change in some areas — although that’s not necessarily a bad thing. “Increasing digitalisation is one of the most important instruments in all our business units, from tour operation to hotel management and customer experiences,” Kornek says. Roquefort agrees: “Coming out of a time when the whole world developed a greater reliance on technology for connectivity than ever before, hotel guests now have higher expectations for digital solutions and seamless technology. Accor’s approach is to leverage technology to complement, not replace, the human element of hospitality, in order to enhance the guest experience and support operational excellence.” However, Johanna Capoani, head of hospitality portfolio management at Swiss Life Asset Managers France, warns that the industry still has plenty to do in this area. “There is still a huge gap between the low-tech exposure of

the hotel industry and the global digital transformation wrought by the pandemic,” she says. “Digital transformation is particularly crucial in the light of the labour shortages the industry is experiencing, as well as social and environmental issues which are driving the entire value chain.” For Capoani, the challenge will be to “combine efficiency gains with improved customer experience, notably by focusing the staff on real added value tasks”. She concludes: “We believe that in future, people will choose a hotel based on experience as well as social and environmental responsibility.” All that means that the industry’s considerable carbon footprint and ongoing water and energy requirements are likely to place it in the firing line for environmental penalties in the not-sodistant future. Yet in the meantime, as the pandemic subsides and travel resumes fully, many hotel operators and investors are looking forward to a period of sustained demand.

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Feature: HEALTH & THE CITY

Healthy and wealthy As increasingly complex healthcare and life sciences assets multiply in modern cities, property owners are seeking to respond to the wellness challenge from every angle. Isobel Lee reports

ellbeing has evolved in recent times from being a niche personal care theme into one of the hottest topics in the built environment. The timing is no coincidence — a global pandemic has proved more than enough to focus minds on the ‘healthiness’ of the environments we occupy, in a bid to avoid contracting the COVID-19 virus. Yet while experts signal hopes that the health crisis is receding, it is clear that this a concern which is here to stay in the property world. “Employees now expect their employer to have a firm strategy to address the ESG crisis and to provide an environment that fulfils the workforce’s wellbeing needs,” Damian Harrington, head of EMEA research at Colliers, says. He adds: “This ranges from the quality and safety of the physical environment, through to promoting and fostering habits that are conducive to good health and mental condition, to all aspects of the managerial approach, which

determine the organisation’s character, significantly affecting employees’ engagement.” The consequences for real estate are far reaching. Addressing the need for environments that fulfil workforce wellbeing impacts the buildings that corporations choose to occupy, and how new buildings are designed, making older stock less appealing than ever. Harrington says: “To protect portfolios, investors are concentrating on grade-A buildings that prioritise sustainability and wellness credentials, while disposing of ageing, non-compliant assets that risk potential obsolescence if they are not regarded as retrofit opportunities to capitalise.” In parallel, changing demographics have focused attention on increasingly aging populations in the developed world, and their significant requirements for care infrastructure. The European markets of Denmark, France, Germany, Italy, Netherlands, Poland, Spain and the UK are projected to see their 65-years and over citizens account for 25% of the national popu-

From careful conversions like this SLAM asset in Cognac, France, to state-of-the-art new facilities, the healthcare theme is inspiring a raft of projects across urban areas

lation by 2035, an expansion of 21.7 million, according to Colliers data. “Investor appetite has grown 21% for assets such as care/nursing homes, assisted living premises and elderly housing,” Luke Dawson, managing director cross-border capital markets in EMEA at Colliers, says. The primacy of the aging issue is underlined, adds Dawson, by more capital currently focusing on the demographic, versus traditional primary healthcare assets, such as general practitioners’ premises, opticians, dentists and

community pharmacists. “It is also important to add that as baby boomers age, they will expect and desire state-of-the-art facilities that focus on technology and the rapidly evolving delivery of health care,” Dawson says. “Senior living facilities that have designated space for on-site telehealth visits with trained staff are more likely to attract potential residents than facilities that do not. “Overall, given the need to create greater levels of private sector involvement to support the growing demand for a variety of healthcare and senior living services and as-

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Feature: HEALTH & THE CITY

Samantha Rowland, head of healthcare, BNP Paribas Real Estate

Luke Dawson, managing director cross-border capital markets EMEA, Colliers

sets, investment volumes will expand across Europe.” Amundi is one of the firms which is expanding into healthcare, with a view to developing more real estate fund products for institutional partners. “This asset class is very sought after by investors,” Amundi CEO Marc Bertrand says. “There are many funds chasing few assets. It requires special skills, but we have teams with experienced people that have worked in this asset class.” Betrand adds: “We also want to launch a SCPI based on this theme, because there is demand from our distribution partner banks who would like to offer this asset class in their product range.” Swiss Life Asset Managers is another increasingly active investor in the sector. According to Valérie Maréchal, head Resi&Care, senior fund and portfolio manager, SLAM France, the firm’s ESG European Healthcare sub-fund focuses on healthcare-related assets across the main European markets, with a primary focus on France and Germany. Designed to benefit from demographic trends, Maréchal notes that “the COVID-19 health crisis has validated the senior housing model and demonstrated the need to invest in senior facilities across Europe, but

also in healthcare facilities, such as nursing homes with an adapted governance”. The benefits of the sector for Maréchal include its low cyclicality in terms of rental de-

“Employees now expect their employer to have a firm strategy to address the ESG crisis and to provide an environment that fulfils the workforce’s wellbeing needs” Damian Harrington

mand, and the presence of indexed long-term leases. However, Samantha Rowland, head of healthcare at BNP Paribas Real Estate, advises would-be investors to be aware of the sector’s challenges: “Depending on the various healthcare sub sectors, understanding these investment opportunities is merely the start of the process. “Exercising due diligence on an asset is one of the most important challenges that investors face, specifically, establishing whether an asset is fit for purpose but also the benefits and risks that come with them including geography.

“With government net-zero carbon targets drawing ever closer, a building’s overall sustainability must be addressed.” Meanwhile, while the global pandemic has severely disrupted research and development in the life sciences sector, COVID-19 also allowed pharmaceutical giants to move into the spotlight. In the fight against the virus, traditional competitors partnered to accelerate research and create the fastest novel vaccine in the history of science. Out of these examples of innovative collaboration and the industry’s increased digitisation, there is increasing demand for state-of-the-art science campuses in strategic locations. “Investment in the life science sector is complex and requires expertise to fill knowledge gaps and safely guide capital,” Dawson says. He adds: “Joint ventures, local partnerships and M&A activity are often the chosen route for savvy investors who want to be exposed to an asset type they do not have experience in. The unique characteristics of life science assets mean that teaming up with the right partner is essential.” Andrew Hallissey, executive managing director, EMEA occupier services at Colliers describes investor interest in the sector as a

key trend of our times across the European investment landscape. “At the mid-year point of 2021, we examined the surge of investment into life sciences and its implications for the property sector across the EMEA region,” he says. “The life sciences sector is clearly focused on key clusters of expertise and talent.” According to Colliers research, Ireland has seen the largest chunk of corporate investment, with a ratio of investment to jobs created which is over four times that of the next biggest cluster, the UK’s co-called “golden triangle” of London, Oxford, Cambridge and England’s greater south east. Yet Hallissey views this as just a starting point: “New locations are expanding, driven by the need of corporates to optimise their footprint and tap into growth markets as the sector expands significantly in relation to traditional industries.” CONFERENCES & EVENTS AT MIPIM 2022 HEALTH & THE CITY WEDNESDAY, MARCH 16, 11.00 - 12.30 – Workshop Room HEALTH THINK TANK Sponsored by MoZaïC Asset Management

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AWARDS

The JURY Chairman of the jury François TRAUSCH Allianz Real Estate Global CEO & CIO

Stéphanie BENSIMON Ardian France Head of Real Estate France

Kai-Uwe BERGMANN Bjarke Ingels Group Partner Denmark

Akim DAOUDA

FGIS (Gabonese Sovereign Wealth Fund) CEO Gabon

Hala EL AKL

Oxford Properties Senior Director of ESG & Operations UK

Serge FAUTRE AG Real Estate CEO Belgium

Paolo GENCARELLI Poste Italiane Head of Group Real Estate Italy

Guy GRAINGER

JLL Global Head of Sustainability Services & ESG UK

MIPIM Awards 2022 Let’s celebrate the projects that matter

he entries are in, the jury is deliberating, and very soon, the MIPIM delegates will be able to choose the top projects from the real estate world of 2022. From a large bag of entries, the MIPIM Awards jury, chaired by Allianz Real Estate Global CEO François Trausch, will draw up a shortlist of four projects in each of 12 categories:

• Best Cultural & Sports Infrastructure • Best Healthcare Development • Best Hotel & Tourism Resort • Best Industrial & Logistics Development • Best Mixed-use Development • Best Office & Business Development

• Best Refurbished Building • Best Residential Development • Best Shopping Centre • Best Urban Project • Best Futura Project • Best Futura Mega Project

The winners will be selected on a 50:50 basis, with delegates’ votes cast carrying equal weight with the jury’s own votes. In addition, the jury of real estate experts from around the world have the right to award one additional prize – the ‘Special Jury Award’, which goes to their favourite project amongst all the entries they considered. Be sure to vote online prior to the event or visit the Awards Gallery, in the Palais des Festivals (Entrance Palais-1), between 9am on Tuesday 15 March and 12pm on Thursday 17 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 17 March in the Grand Auditorium.

Official Media Partners

Karim HABRA

Ivanhoe Cambridge Head of Europe & Asia-Pacific France

Frank KHOO

City Developments Limited Group Chief Investment Officer Singapore

Sergey KUZNETSOV Moscow City Chief Architect Russia

Clément LAU RICS President UK

Katarzyna ZAWODNA-BIJOCH

Skanska Commercial Development Europe President & CEO, CEE Region Poland

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MIPIM PREVIEW • 75 • February 2022 01/02/2022 20:27

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

MIPIM

15-18 MARCH 2022 - Palais des Festivals, Cannes, France 15 March: Welcome Reception 7:30pm

PREPARE FOR MIPIM IN ADVANCE VISIT THE MIPIM WEBSITE TO ORGANISE YOUR TRAVEL

YOUR BADGE: YOUR KEY TO GETTING INTO MIPIM

• 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 World 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.

• You received your badge by post Don’t forget to bring it with you. • You have your voucher Print it out or have it ready on your smartphone to collect your badge at a self-service delivery point at the airport, in the Grand Hyatt Martinez Hotel, the Majestic Hotel or at the Palais des Festivals. • You have your registration confirmation email Pick up your badge in the registration area. our badge must be carried all times, and ready to be Y shown at entry points around the area. Your badge is strictly personal and non-transferable.

SAFETY AND WELLBEING OF OUR GUESTS :

• Please note that all MIPIM delegates will be required to provide a valid vaccination pass when attending the event venue. • 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, 15 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, 17 March, 6:30pm - 7:30pm Grand Auditorium MIPIM Awards 2022 Official Media Partner

MIPIM PREVIEW • 76 • February 2022 MIPIM_experience.indd 1

01/02/2022 20:30

YOUR MIPIM EXPERIENCE

ONSITE SERVICES

EXCLUSIVELY IN CANNES

VISITORS’ LOUNGE (Palais -1)

(Palais -1)

Sponsored by

PARIS LA DEFENSE_logotype COLOR_RGB 6/12/2017 R0 V0 B0

R22 G255 B38

by invitation only

CLOSED-DOOR EVENTS

TUESDAY 15 MARCH - MORNING

08.00 - 12.30

12.30 - 14.00

MAJESTIC

RE-INVEST SUMMIT

RE-INVEST LUNCH

Sponsored by

Breakfast partner

AGORA ROOM

ESTEREL

PROPEL STATION

LONDON STAND

FOYER BALCON DEBUSSY

VERRIERE GRAND AUDI

09.45

10.00 - 11.00

10.00

THE RUSSIAN SESSION FROM DISCRETE CITY THROUGH ECOSYSTEM TO METASPACE

10.15

10.30 - 11.30

10.30

CHANGES IN TOMORROW’S CITIES IN THE FACE OF 21ST-CENTURY CHALLENGES

10.45

11.00 - 12.00

11.00

PARTNER SESSION: AEDIFION

11.15

11.30

11.45

11.30 - 12.15

11.30 - 12.30 DATA-DRIVEN IMPACT INVESTMENT – WHAT IT TAKES TO PROVE GREEN

FOCUS ON ASIA: ASIAN SMART CITY INITIATIVES - JAPAN WITH SINGAPORE

12.00 - 12.45

12.00

INVESTING IN THE UK AND LONDON IN 2022

12.15

Breakfast Partner

12.30

12.45

13.00

13.15

13.30

Driving Urban Change

Geo focus

Propel

Special events / Closed door events

Partner session

London stand

WORKSHOP ROOM

CALIFORNIE

034_RM CONF_PV_PIM_PAGE8

POLITICAL LEADERS’ SUMMIT Sponsored by

AGORA ROOM

ESTEREL

15.00 - 16.00 open to all

16.00 - 17.45 MAJESTIC

SPECIAL EVENTS

by invitation only

CLOSED-DOORS EVENTS

TUESDAY 15 MARCH - AFTERNOON

PROPEL STATION

FROM 19.30

GRAND AUDITORIUM

OPENING KEYNOTE

WELCOME RECEPTION

FRANÇOIS HOLLANDE

FORMER PRESIDENT OF THE FRENCH REPUBLIC

LONDON STAND

FOYER BALCON DEBUSSY

VERRIERE GRAND AUDI

WORKSHOP ROOM

CALIFORNIE

12.30 SINGAPORE INVEST 12.45

13.00

13.15

13.30 - 15.00

13.30

CENTRAL EASTERN EUROPE FOCUS Sponsored by

13.45

14.00

14.15

14.00 - 14.45

14.00 - 15.00

14.00 - 14.45

CITIES FOR CITIZENS: THE BIG DEBATE

ULI: EMERGING TRENDS

LONDON BOROUGHS AND THEIR OPPORTUNITIES

12.30 - 14.15

14.30

14.45

15.00

15.15

15.00 - 15.45

CHANGE MANAGEMENT IN LARGE CORPORATES

THE NEW LONDON EXPERIENCE: HOW WE LIVE, WORK AND PLAY POST PANDEMIC

15.30

15.45

16.00

16.15

16.30

16.15 - 17.00 FRANCE: TOWARDS A NEW GEOGRAPHICAL DISTRIBUTION?

16.00 - 17.00

16.00 - 16.45

16.00 - 18.00

16.00 - 17.30

TOMORROW’S URBANISM: MORE HUMAN, MORE RESILIENT, AND MORE BUSINESS-FRIENDLY

MORE HOMES: BUILD TO RENT

CONFERENCE PARTNER MADRID

PARTNER SESSION: LÉMAN HORIZON

16.15 - 16.45 START UP COMPETITION JURY#1

16.30 - 17.15 THE OFFICE UPRISING: INNOVATING TO BOUNCE BACK – PART ONE

16.45

17.00 - 18.00

17.00

17.15

17.30

17.15 - 17.45 START UP COMPETITION JURY#2

OPENING RECEPTION: INVESTING IN LONDON

17.45

18.00

Information as of 31/01, for more information please refer to our website www.mipim.com

034_RM CONF_PV_PIM_PAGE9

CONFERENCES & EVENTS 2022 AGORA ROOM

ESTEREL

WEDNESDAY 16 MARCH - MORNING

PROPEL STATION

LONDON STAND

AUDI A

FOYER BALCON DEBUSSY

VERRIERE GRAND AUDI

WORKSHOP ROOM

08.45

09.00 - 10.30

09.00

OCCUPIERS SUMMIT By invitation only

09.15

09.30

09.45 - 10.45

09.45

10.00

10.15

10.00 - 10.45

REAL ESTATE MUCH MORE THAN AN ASSET: PRIME REAL ESTATE, LOCATION OR FEATURES?

CITIES FOR CITIZENS: THE BIG DEBATE

LEADERSHIP AND COLLABORATION

10.15 - 11.00 A TECH USE CASE FROM THE MIDDLE AGES : HOW INNOVATION IS RESHAPING THE HÔTEL-DIEU IN PARIS

Content partner

10.30

PARTNER SESSION: INVEST IN FRANCE

Sponsored by

10.45

11.00 - 12.30

11.00

11.00 - 11.45

ITALIAN CONFERENCE

EUROPE’S HUB OF TECHNOLOGY AND INNOVATION

11.15

11.30

11.45

11.00 - 12.00

11.00 - 12.30

ESG: CHALLENGES AND OPPORTUNITIES IN THE REAL ESTATE SECTOR

PARTNER SESSION : AEGIDE /DOMITYS

HEALTH THINK TANK

11.30 - 12.15 GREEN IS THE NEW BLACK: ESG PRINCIPLES DRIVING RE INVESTMENTS

12.00

12.00 - 12.45

12.00 - 13.00

KNOWLEDGE CLUSTERS: SPACES FOR INNOVATION

TOWARDS INCLUSIVE AND CIRCULAR URBAN DEVELOPMENT

12.15

12.30

12.45

13.00

13.15

13.30

Sponsored by

Driving Urban Change

Geo focus

Propel

Special events / Closed door events

Partner session

London stand

CALIFORNIE

034_RM CONF_PV_PIM_PAGE10

WEDNESDAY 16 MARCH - AFTERNOON

STAND R7.F5 - 16.00 - 17.00 MATCHMAKING HEALTHCARE

AGORA ROOM

ESTEREL

PROPEL STATION

LONDON STAND

AUDI A

FOYER BALCON DEBUSSY

VERRIERE GRAND AUDI

WORKSHOP ROOM

CALIFORNIE

13.30

13.45 - 15.45

13.45

PARTNER SESSION: POLAND TODAY

14.00

14.00 - 14.30

14.00 - 14.45

START UP COMPETITION JURY#3

INVESTING IN RETAIL POSTPANDEMIC

14.15

14.30

14.45

14.30 - 15.15

14.30 - 16.00

THE OFFICE UPRISING: INNOVATING TO BOUNCE BACK – PART TWO

GEND’HER NETWORKING EVENT DRIVING THE CHANGE

14.45 - 15.45

15.00

15.00 - 15.45

15.00 - 17.00

THE NEED FOR OFFICES

PARTNER SESSION: INVESTMENT BRIEFINGS

15.15 - 16.15

15.15

15.45 - 16.30 HOUSING FIRST: THE AFFORDABLE CHALLENGE

16.00

16.15

16.30

16.45

Sponsored by

UK: DEVOLUTION, THE LEVELLING UP AGENDA AND HOUSING FIRST

15.30

15.45

15.00 - 15.30 START UP COMPETITION JURY#4

GLOBAL DANISH SOLUTIONS – HOW TO BUILD A MORE SUSTAINABLE WORLD

16.00 - 16.45

16.00 - 18.00

UK CITIES

PARTNER SESSION: INCASOL, BARCELONA CATALONIA

16.15 - 17.00 GERMANY – A NEW REAL ESTATE ERA?

16.30 - 17.30 JEUX OLYMPIQUES ET ENJEUX IMMOBILIERS À L’HEURE DE LA COP 26

17.00

17.15

17.30

17.15 - 18.00 INVEST IN TECH REPORT presented by MetaProp

17.30 - 19.00 NORDIC INVESTMENT FOCUS

17.45

18.00

18.00 - 19.00 INVEST IN TECH NETWORKING DRINKS

18.15

18.30

18.45

19.00

Information as of 31/01, for more information please refer to our website www.mipim.com

034_RM CONF_PV_PIM_PAGE11

CONFERENCES & EVENTS 2022

THURSDAY 17 MARCH - MORNING

13.00 - 14.30 SALON CROISETTE AT THE MAJESTIC HOTEL

HOSPITALITY LUNCH (by invitation only)

AGORA ROOM

ESTEREL

PROPEL STATION

LONDON STAND

WORKSHOP ROOM

CALIFORNIE

08.45

09.00 - 10.30

09.00

THE HOSPITALITY MORNING: A RENAISSANCE IN THE MAKING?

09.15

Sponsored by

09.30

09.45

10.00

10.15

10.00 - 11.00

10.00 - 10.45

STARTUP COMPETITION FINAL

LEADING THE DECARBONISATION AGENDA

10.15 - 11.00 HOUSING FIRST: A SECOND WIND FOR HOUSING

10.30

10.45

11.00 - 11.45

11.00

11.15

11.30

11.00 - 11.45

GREEN IS THE NEW BLACK: LOCAL INITIATIVES TO TACKLE GLOBAL CHALLENGES

11.00 - 12.00

INVESTING IN THE FUTURE OF LIVING FOR LONDONERS

11.30 - 12.15 FINANCING CLIMATE ACTION

11.45

12.00 - 12.45

12.00

ESSENTIAL INFRASTRUCTURE: SPACE FOR INDUSTRY AND LOGISTICS

12.15

12.30

12.45

13.00

13.15

13.30

Driving Urban Change

Geo focus

Propel

Special events / Closed door events

Partner session

London stand

PARTNER SESSION: ALTUS

034_RM CONF_PV_PIM_PAGE12

18.30 - 19.30

open to all

SPECIAL EVENTS

THURSDAY 17 MARCH - AFTERNOON

GRAND AUDITORIUM

AWARDS CEREMONY AGORA ROOM

ESTEREL

PROPEL STATION

LONDON STAND

WORKSHOP ROOM

CALIFORNIE

13.00

13.15

13.30 - 16.00

13.30

THE LOGISTICS AFTERNOON Sponsored by

13.45

14.00

14.00 - 14.45

CITIES FOR CITIZENS: THE BIG DEBATE

INFRASTRUCTURE INVESTMENT: THE NEXT CROSSRAIL

14.15

14.30

14.45

14.30 - 15.15 REAL ESTATE MUCH MORE THAN AN ASSET: REAL ASSET AS AN INVESTEMENT ASSET CLASS Content partner

15.00 - 15.45

15.00

SKILLS, TRAINING AND DIVERSITY

15.15

15.30

15.45

16.00

16.15

16.30

FRIDAY 18 MARCH

10.45 - 11.30

Open to all

PROPEL

CLOSING REMARKS

Information as of 31/01, for more information please refer to our website www.mipim.com

28_RM NAVETTES_PV_PIM

MIPIM 2022

MIPIM HOTEL SHUTTLE MIPIM is delighted to offer to its participants free shuttle from hotels located outside Cannes to the Palais des Festivals. 13 routes & 55 hotels served from early Morning to late night. • Mandelieu La Napoule • Cannes la Bocca C10

• Le Cannet • Juan-les-Pins SEA

C12

• Mougins Mouans-Sartoux

RIV IER

C14 bis

• Nice

C17.B C19

C19

C16.A ty tali spi s Ho Suite

MAIN ENTRANCE Bd de la

IER

MIPIM Area

First Aid

Seaview Village

C16.E C16.D

RIV

Security Checkpoints

C15

C17.A

• Cannes • Théoule-sur-Mer

C14

RIVIERA 8

CROISE

TTE

PALAIS DES FESTIVALS PALAIS -1 to 6

Decorators registration & Harbor registration HARBOUR

C20 Carlton Hotel

The Grand Hyatt Cannes Hotel Martinez

Main Entrance

Majestic Hotel

Bd d

e la

Train Station

For all information + 33 (0)4 92 99 89 86 From 9.00am to 7.00pm

pub_hotel_shuttle_230x285.indd 1

CRO

ISET

Left Luggage & Covid 19 Test area Registration: Protocol, Press Bag & Guide Collection

MIPIM Free hotel shuttle

• Antibes Sophia Antipolis

01/02/2022 09:26

020_DIT_PV_PIM

007v2_LUXEMBOURG CAPITAL_PV_PIM

www.luxembourgcapital.lu

LOOKING FOR A NEST?

MIPIM 2022 Preview Magazine

Articles inside

LOGISTICS

HOSPITALITY OUTLOOK

FOCUS ON ASIA

INVESTING IN THE UK

INVESTING IN CEE

INVESTING IN THE NORDICS

INVESTING IN GERMANY

INVESTING IN FRANCE

A CAPITAL IDEA

HOUSING FIRST – BACK TO BASICS

THE OFFICE UPRISING

PROPTECH FOR THE PLANET

GREEN IS THE NEW BLACK

CITIES FOR CITIZENS

THE SMARTER, THE BETTER

REAL ESTATE: MORE THAN AN ASSET