Nº 10 Partners In Business Magazine

Issue Nº 10 :: Winter 2014-15

Prop e r ty invest ments

• Architects of the Future • BREEAM • New project for Exponor • Setubal`s new shopping mall • Bureau Veritas • FundBox • Quinta da Fonte

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INDEX

06 • BES – The end of an empire 10 • Golden Visa scandal 20 • Portugal`s new accommodation law 22 • Exponor expansion project 26 • BREEAM: evaluating buildings 28 • Alegro`s new shopping centre 30 • The growth of on-line shopping 32 • New HQ for Holmes Place 34 • The importance of Urban Rehabilitation 36 • 1st National Residential Tourism Conference 38 • Expo Real 40 • Fanfare opening for Alegro Setúbal 42 • MAPPIC 20th anniversary 44 • Portuguese Finance Minister at American Club of Lisbon 45 • Portuguese French Trophies 2014 46 • Interview with the British Ambassador to Portugal 48 • Miguel Macedo at the International Club of Lisbon 50 • Mercedes-Benz 25th anniversary 52 • Cars DIRECTOR | Luis Figueiredo Trindade • lft@partnersinbusiness.info COMMERCIAL DEPARTMENT | geral@partnersinbusiness.info EDITOR | Chris Graeme • chris@partnersinbusiness.info DESIGN CONCEPTION | André Freire • David Martins DESIGN DEVELOPER | Alice L.C TRANSLATION | Chris Graeme PHOTOGRAPHY | Chris Graeme ILLUSTRATION | Cover page by FAT (Future Architecture Thinking) PRINTER | Finepaper, Lda (Lisboa) – nº DL: 341143/12 DISTRIBUTION | 3,000 are distributed by hand to leading business people in the Greater Lisbon area, 1.500 copies are distributed by post internationally and 500 copies at the national and international trade fairs, events of the Chambers of Commerce.

Property Investments | Issue Nº 10 – Winter 2014-15 Published quaterly and owned by Bravespiral – Comunicação, Unip. Lda. Rua Professor Sousa da Camara, 190 rc dto | 1070-219 Lisboa | 213 870 030 Registo na ERC nº 126184 | Annual subscription fee: 25 euros / Bi-monthly www.partnersinbusiness.info Reproduction of material in this magazine in any form is prohibited without prior written permission from the Partners in Business team.

The view expressed in this magazine is not necessarily those of the publisher.

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[ EDITOR IAL ]

REASONS TO BE CHEERFUL

A positive phase for the real estate market

P

LUIS FIGUEIREDO TRINDADE | Director, PARTNERS IN BUSINESS

Despite the construction industry being the sector most badly hit by the economic downturn, suffering considerable stagnation, we expect this new positive cycle to remain sustainable although new construction has yet show signs of recovery.

ortugal’s real estate market is once again attracting interest from investors. Not just those who want a Golden Visa to travel freely in the Schengen area, but also from international funds. And after several years of falling demand, for the first time in seven years the Greater Lisbon office market has started 2015 with an increase in transactional turnover. Other indicators too show a feeling of greater confidence, which is already evident in other sectors of the real estate market.

This new lease of life for the market is also being reflected in improved rental values. For the first time in four years prime rental values in Greater Lisbon have been revised upwards while the number of empty offices has fallen across-the-board in all zones, with a clear recovery in the Expo and Western Corridor zones of Lisbon. During the first half of 2014 this trend to recovery in the commercial investment market was undeniable, more than 10 big ticket commercial rental property deals were clinched in Portugal involving over €110 million.

Greater activity on the part of international investors has contributed in no small measure to this recovery, responsible for over 70% of total investment, an amount over the average recorded during the past 10 years. Boosted by a greater presence from private investors and family offices, some of who have been encouraged by the Portuguese Government’s Authorisation for Residency through Investment (Golden Visa), the average deal, however, has hovered around €10 million, below the average achieved in previous years. This fall is down to smaller sized, lower risk investments, which are easy to get out of if necessary. The largest property investment deal to date was the sale of EDP’s – the electricity supplier – property portfolio in Lisbon’s city-centre Marquês de Pombal area by the part Chinese owned EDP group to US investors GA Capital, for around €56 million.

We have also witnessed the creation of funds for the recovery and modernisation of fixed-income assets, a case in point being Exponor, a large congress and trade fairs complex in Porto, the fund being created by Fundbox, a fund manager, which injected €65 million into a redevelopment and modernisation project on the site.

In retail, 2014 saw the opening of the Alegro shopping centre in Setúbal, the last of the large shopping malls to open in Portugal, with a €110 million euro investment, which already has a 98% take-up and which has focused on getting retail brands which are expanding. The residential market, too, is feeling a new dynamic, with positive developments in the purchasing of residential property assets which have been boosted not only by Portuguese families – the main clients in this market to date – but also foreign investors, non-EU Golden Visa holders, French and Scandinavian pensioners looking to buy second homes, and small private investors in general.

Despite the construction industry being the sector most badly hit by the economic downturn, suffering considerable stagnation, we expect this new positive cycle to remain active and sustainable although new construction yet show signs of recovery.

However urban rehabilitation has been a dominant theme for some building firms and one can only hope that the political support from local government councils for the urban regeneration of cities continues.

6 | Property Investments

[ SPEC IAL R E P ORT ]

BANCO ESPÍRITO SANTO How Portugal’s oldest and most trusted family banking empire crashed

F

or 145 years Portugal’s largest family-owned private bank, Banco Espírito Santo, was synonymous with solidity, security, reliability and good old-fashioned honest business dealings. That was until May 2014, when it was discovered that BES had been hiding a trail of bad debts totalling nearly €5Bn from the banking authorities.

The Portuguese public had already grown accustomed over the past 15 years to see one banking corruption scandal after another.

First came Banco Português de Negócios (BPN), a private bank, but nationalised by the Portuguese Government in 2008 after a bad management and malpractice-related debt of €1.8Bn and several irregularities were uncovered at the institution. In 2011, BPN, stripped of many of its debts and bad loans, was sold to Angola’s Banco BIC for €40 million. Then another scandal erupted with Millennium bpc, in 2008, when an 8 | Property Investments

CHRIS GRAEME | Editor

embarrassingly public power struggle between Jorge Jardim Gonçalves, the bank’s founder and departed chairman, and its Chief Executive Paulo Teixeira Pinto blew up over a failed €6Bn buyout of rival bank BPI. But no one outside the institution, and certainly not the general public, knew that BES had been secretly lending money to its shareholder and holding company Espírito Santo International (ESI) for two years, raising fresh questions over the Bank of Portugal’s supervision of a bank that suffered one of Europe’s largest financial crises.

BES, then Portugal’s largest listed bank, had been channelling undeclared loans to ESI – then indirectly its 25% shareholder – through Panama. BES did not declare these loans to ESI in its accounts at the time.

This exposure to ESI’s bad debt resulted in BES, an otherwise profitable high street bank, having to be rescued in August 2014.

A FINANCIAL EMPIRE

Banco Espírito Santo was at the heart of a

family owned business empire on four continents that included property, tourism, health care and even a travel agency.

Founded in the second half of the 19th century, legend has it that an unidentified baby abandoned in a Lisbon church was placed in the care of nuns and named in honour of the Holy Spirit (Espírito Santo).

Over the next century and a half the Espírito Santo family built a global financial empire that survived revolution and exile to exert an enormous economic and political influence in Portugal.

BES AND THE BANK OF PORTUGAL (BdP)

The question on many people’s lips at the time was where was the Bank of Portugal (BdP), the supervisory authority, in all this and why didn’t it pick up the irregularities that had been going on for years, sooner?

At the time the scandal broke in May 2014, the BdP stated that although it had detected

“fraudulent funding” involving nonEspírito Santo companies, it did not know that a scheme involving the re-routing of loans through South America had been in place for years.

The fallout from the BES scandal prompted changes at the BdP which replaced the official in charge of the prudential supervision of Portugal’s banks, supervision that it admitted had been “too soft” and that rules that existed on paper had “not been followed”. The BdP also acknowledged that it had been wrong to “trust the numbers provided in recent years by BES” while the central bank’s governor said that BES had “violated financial rules” and was guilty of “mismanagement”.

HOW THE PROBLEMS CAME TO LIGHT

It was ironically not the BdP but the international auditing company KPMG, the external auditor of BES, which first picked up inconsistencies in the bank’s accounts and alerted the Portuguese central bank.

Later unreported debts at the bank emerged and three of its main holding companies requested bankruptcy protection.

POLICE INVESTIGATION

Portugal’s Judicial Police (PJ) had long suspected that the bank’s former boss, Ricardo Espírito Santo Salgado, who was forced to resign in July, was involved in fraud, forgery, money laundering and tax evasion. Salgado was questioned and released on a €3 million bail payment after a three-year official probe, Operation Monte Santo, the findings of which have so far been elusively inconclusive.

THE PORTUGUESE GOVERNMENT’S EMERGENCY RESCUE PLAN

By August shares in BES lost 75% of their

value as stocks crashed after the bank reported a record half-year loss of €3.58Bn. The Portuguese bank’s hidden difficulties spooked the international markets which feared that the financial crisis that had recently hit countries sharing the euro currency might not be over and more nasty financial discoveries could emerge.

that the adoption of this measure was “suitable to restore confidence in financial stability, ensure continuity and avoid potential adverse systemic effects. The European Union Commission too waded in by admitting that a “disorderly resolution of BES could have created serious disturbances in the Portuguese economy.

WHAT TO DO WITH THE BANK?

Despite its exposure to bankrupt subsidiary companies, not all of the BES group was, by any means, beyond salvage. It was therefore decided that the best solution was to create a temporary credit institution, holding deposits, senior debt, and most of the assets.

The group’s healthy business, including its retail arm, was separated and put in a new bank, Banco Novo which so far has retained all of the former bank staff. The Governor of the BdP, Carlos Costa reassured depositors That same month the Portuguese Government by stating publicly that account holders’ announced that it would provide €4.9Bn money was safe. The cash made available ($5.6Bn) in an emergency rescue package to from the Government was to be in the form prevent the collapse of the bank. The Bank of of a loan which would be paid with interest Portugal’s governor, Carlos Costa, stated that at no cost to Portugal’s tax payers. the money would come from a special fund Meanwhile, the bank’s toxic assets would set up during the Eurozone financial crisis. remain in BES – a once familiar brand now The fund had been created to help financial no longer visible on the high street – which institutions in difficulty and Costa argued has now become a so-called “bad bank”. |9

[ SPEC IAL R E P ORT ]

In many ways the BES scandal was not so much a banking crisis, but rather a corporate crisis involving a financial institution that had switched from its core activities and branched, disastrously, out into other business areas in which it had no history or expertise.

BES, RIOFORTE AND PORTUGAL TELECOM

Just how vulnerable and incestuous Portugal’s ultimately fragile and tightly-knit family of large corporations were revealed when the fallout from the BES scandal wiped millions of euros off the share price of Portugal’s largest telecoms operator – Portugal Telecom (PT).

A recently released 31 page report showed that BES had hidden information from PT’s Chief Financial Officer about the financial health of Rioforte, an Espírito Santo Group company that had invested heavily in tourism, real estate and agricultural and fisheries.

daily before the Portuguese public for 120 days in a televised drama which gripped both the It emerged that BES with held vital information press and the public imagination. about the financial health of the Rioforte company from PT, persuading it to make During the enquiry, the former CEO said considerable investments in that holding. In he was not to blame for BES’s collapse. fact the integration of the Espírito Santo Ricardo Salgado instead blamed Portugal’s Financial Group in Rioforte had a negative central bank for not allowing time for the impact of between €1.6Bn and €1.9Bn group to handle its debts. according to the document sent to the Portuguese financial regulator, the Portuguese He also blamed the financial crisis and the Securities Market Commission (CMVM) by BdP for “unleashing a chain of events that PT SGPS which admitted in November 2014 led to the bank’s collapse”. that it had lost at least €500 million.

In December, Salgado told the enquiry that The fallout from that mistake meant that a the group’s holding ESI SA first encountered planned $17Bn merger between Portugal problems in the 2008 financial crisis.

Telecom and Brazil’s largest telecoms company Oi was revised to PT’s disadvantage after the He added that the BdP imposed an impossible Espírito Santo sub-holding Rioforte defaulted plan on companies, forcing the bank to on a loan from PT worth over $1Bn. deleverage too fast and sell its assets too quickly. Without help at the time from the A PUBLIC ENQUIRY Portuguese Government, the result was the A public parliamentary enquiry was set up in break-up of the bank in August.

November after Portuguese MPs demanded to know why regulators and the bank’s senior The former BES CEO also said that he and his management failed to spot BES’s problems. family were the victims of a smear campaign.

“For weeks and months my family and I were In what was termed by one analyst and tried in public, with accusations of illegalities, commentator as “worthy of a soap opera or including having personal fortunes hidden in television drama” the banks woes were paraded Asia, mansions in Miami and even castles in 10 | Property Investments

Scotland, all of these tales are totally false,” he said. And he denied ordering the accounts of ESI to be cooked to hide €1.3Bn of debts and blamed the bank’s accountant, Francisco Machado da Cruz, for hiding the extent of the problem from him.

But the former accountant of ESI revealed in January 2015 that Ricardo Salgado had “known all along” about attempts to hide the holding’s debts since 2008. And in a separate hearing a former board member said Salgado was “not being upfront” concerning what he knew.

LESSONS TO BE LEARNED

In many ways the BES scandal was not so much a banking crisis, but rather a corporate crisis involving a financial institution that had switched from its core activities and branched, disastrously, out into other business areas in which it had no history or expertise.

“The implosion of the BES group represents the end of an era”, commentator Luís Marques wrote in the weekly Expresso newspaper, while another commentator, Jorge Coelho aptly said that the scandal was rather like “the tide going out and revealing the boss exposed without his bathing suit.”

“The complex web of companies surrounding the family had been used to hide billions of euros in debts that could no longer be paid,” he said.

The President of Euronext Lisbon, a stock market, Luís Laginha de Sousa, commented that the BES group was the last corporate conglomerate that was also a financial institution, and believes that it is impossible that a collapse of the magnitude of BES will happen again.

Time will tell. 

[ PA RT NE R S SPE C IAL FE AT U R E ]

Portugal’s Golden Visa Programme

THE GLITTER AND THE GREED OF RESIDENCE-BY-INVESTMENT

CHRIS GRAEME | Editor

When Portugal launched its residence-by-investment programme in 2012 to attract non-EU investors, even the Portuguese Government could not have anticipated its success, with over 1Bn euros achieved in a little over two years. But a corruption scandal in 2014 revealed that all that glitters is not always gold. Chris Graeme reports.

T

here is no doubt that the benefits of Portugal’s innovative residence-byinvestment program has been beneficial to the Portuguese economy.

Since the launch of the Authorisation for Residence-by-Investment programme, dubbed the “Golden Visa”, in October 2012, the Portuguese economy raked in a healthy 1Bn euros in Direct Foreign Investment from mostly Chinese, Russian and Brazilian investors seeking a second residence permit in Europe.

While most of the applicants have little, or no intention, of being based in Portugal, what they are after is a residence permit that will allow them free and unrestricted travel access within the Schengen zone of 26 member states in Europe.

In little under 18 months, to May 2014, 905 “Golden Visas” were issued by the Portuguese border and immigration authorities (SEF) netting the Portuguese state €550 million from successful applications from 1,200 non-EU citizens and their dependents. In the first full year, 2013, €306 million was raised from around 700 applicants, the majority, (80%) from China,

12 | Property Investments

followed by Russia (10%) and the most of the rest from Brazil, Africa and Lebanon.

The initial and growing success of the Portugal programme, which provides full residency and the option of citizenship after six years, had encouraged the Government to predict a further €500 million euros by the end of 2014, a target that it easily exceeded. By November 2014 the programme was heralded by the Government as one of the most “successful Direct Foreign Investment programmes of its kind in Europe”, having attracted €126 million in one month alone (October), of which €108.3 million euros or 86% of total receipts was spent on property investment. The former President of Portugal’s foreign export and trade bureau AICEP, Pedro Reis, confirmed to business leaders in the property and development sector in Lisbon that the Government has no plans to change its course regarding the programme which he said would continue for the foreseeable future.

SUCCESS IN SIMPLICITY

The success of Portugal’s scheme, marketed as the Golden Residence Permit Programme, rests on its simplicity and accessibility in terms of financial investment. It is largely property based and requires three clear and unambiguous investment options:

Deputy Prime Minister, Paulo Portas, is the architect of Portugal’s Golden Visa programme.

Portugal’s Prime Minister, Pedro Passos Coelho, is a staunch defender of Portugal’s residence-by-investment programme.

• The transfer of capital with a minimum value of 1 million euros; • The purchase of property worth 500,000 euros or more; • The creation of at least 10 new jobs registered with the social security department.

By November 2014 the programme was heralded by the Government as one of the most successful Direct Foreign Investment programmes of its kind in Europe...

Leader of Portugal’s PS Socialist party, António Costa, has pledged that the ‘Golden Visa’ programme will continue but may be changed.

Portugal’s Finance Minister, Maria Luís Albuquerque, has categorically denied in Brussels that Portugal’s investment program will be scrapped following the scandal.

Portugal has one of Europe’s most advantageous tax regimes for foreign investors says Anabela Silva, Portuguese tax and ‘Golden Visa’ expert from Ernst &Young.

A BOOST TO PORTUGAL’S PROPERTY MARKET

The success of the Portugal programme has, without a doubt, been a key factor in the recovery of Portugal’s residential property market which had, until mid-2013, been stagnant. According to data from the Portuguese Association of Estate Agents and

Real Estate Professionals (APEMIP), in the first half of 2014 there were 10,040 property transactions by foreigners in the Portuguese property market. This represented an increase of 21% in the amount of foreign citizens involved in house buys in Portugal. In the second quarter foreigners bought 6,540 properties in Portugal, which meant a 90% growth on the number of purchases made in relation to the first quarter of the year.

According to APEMIP, British, French, Belgians and Germans were the most active nationalities when it came to buying houses in Portugal, but there have been a growing number of Chinese and Russian citizens too.

The Lisbon district was responsible for around 26% of sales made between April and June 2014, with investments led by the Chinese, French, Brazilians and Angolans. In a districtby-district analysis, Lisbon, Loulé, Albufeira, Lagos and Cascais lead the preference stakes for investors in that quarter.

PORTUGAL’S ATTRACTIVE TAX REGIME

The President of APEMIP, Luís Lima, says that these numbers “confirm the importance of the Tax Regime for Non-Habitual Residents (NHR) which with the “Golden Visa” attracted this growing number of investors who believe that Portuguese property is as a secure investment. Under the regime, retired pensioners choosing to be based in Portugal for tax purposes get a tax break for 10 years.

Proof of this is that we have almost doubled the number of purchases made by foreigners in the second quarter alone.” But in his view, the potential of these programmes has a lot more to offer, with Luís Lima predicting that this type of investment could be well in excess of 1.5Bn euros in 2015.

The leader of the association also draws attention to the knock-on effect that this reality has on the internal market, where an increase in demand has already been noted.

“The internal market senses the confidence and

CITIZENSHIP AND RESIDENCE-BYINVESTMENT PROGRAMMES IN 2014 Last year saw one particularly successful programme, the Malta Individual Investor Programme (IPP) take off. A citizenship programme, the Malta scheme has now received over 400 applications since its launch in early 2014, which will result in over 450 million euros (US$ 530 million) in Foreign Direct Investment.

Interest in Spain’s residence-by-investment programme, also dubbed the “Golden Visa” scheme has been slow to take off. The programme, which grants Spanish residency to non-EU citizens who spend at least 500,000 euros (US 620,000 dollars) on property in the country is still below expectations according to real estate analysts and estate agents in Spain.

A total of 324 people had signed up to the scheme by September since its October 2013 launch, according to the latest available figures from Spain’s foreign ministry, worth 256.1 million euros. By May, the number of property buyers who has made use of Spain’s “Golden Visa” scheme was just 72, with Spain’s national newspaper El País describing the Golden Visa scheme as a “flop”. However, the new figures show there has been increased take-up since that time, even if this has been limited.

“The numbers are comparable with Portugal in the first full year of their Golden Visa programme (2013) but given the current interest in Spanish property we believe that these numbers should increase significantly for the scheme to be classed as a success,” Alex Vaughan, co-founder of property firm Lucas Fox told a news source.

Eager to capitalise on Portugal and Malta’s success, Cyprus too launched a citizenship programme. Crucial changes were introduced to that programme in March 2014 with no less than eight potential routes to citizenship based on extraordinary economic contributions to the Cyprus economy. Changes to Cyprus’s immigration policy and legal framework enable non-EU applicants to obtain Cypriot citizenship on an expedited basis. The Cyprus citizenship scheme is now the most attractive in Europe, since unlike the Malta scheme, it does not require any donation made to the government (in the case of Malta, this is 650,000 euros).

Furthermore, unlike many other EU countries, including Malta, Cyprus does not require applicants to live on the island prior to or during the application, or even after the citizenship has been granted. However, citizenship is expensive and generally requires an investment of at least 5 million euros.

There are now many countries offering residence-byinvestment and citizenship programmes around the world: Australia, Canada, the US, and UK to name a few, and the aim of this overview is not to explain them here, but review some of the European programmes that have occurred in the world of citizenship and residency in 2014.

| 13

[ PA RT NE R S SPE C IAL FE AT U R E ] security that foreigners have in Portuguese real estate and this has proved contagious, especially at a time when people are beginning to look to property as a secure investment alternative, which can bring some return,” he says.

in Portugal which broke in the news in November 2014. The scandal proved a serious, if temporary setback, to Portugal’s image abroad as a transparent place to invest after 11 officials were arrested over illicitly trafficking “Golden Visa” permits.

WHEN GOLD TARNISHES

Parliamentary parties called on the architect of the programme, Deputy Prime Minister Paulo Portas, to provide explanations to MPs in the Portuguese

Sadly the success of the programme and the sheer volumes of money changing hands led to a major corruption scandal

Andrew Coutts, Managing Partner at Henley & Partners Portugal, part of the global firm of Citizenship and Residence planning specialists, says that if a programme is successful, the last thing anyone should do is “change it for changes sake”.

investment bureau AICEP and other Government agencies that could “receive investors and provided a shopping list of available investments”.

“I don’t think today, if we went into AICEP with one of our clients, we would be given a list of new or existing businesses to invest in. I don’t think the government is prepared for that,” he says, adding that there is a great opportunity from the programme’s 1 million euro investment option with a lot of flexibility.

The idea of investing one million euros in a bank institution and getting x amount of return is very dull, unless those returns are very, very high.

“Generally the Henley & Partners (H&P) client is a very senior corporate officer from very successful businesses, or he or she is an entrepreneur of some success, and therefore will want something that is exciting and innovative; something that is going to provide them with an investment return”.

“They won’t be particularly motivated by a 2% or 3% return at a financial institution,” he explains. Coutts goes on to say that although the law is clear, it is also ambiguous because that investment can be made in whatever form of public or private investment sector institution or company, big or small.

“Real estate property is an international commodity and asset which people will always want to invest in and have done for time immemorial. It would be very dangerous and silly to make changes to this specific part of the real estate investment option of the Portugal programme,” says Andrew Coutts.

Coutts was talking in the light of possible Government “improvements” to the Portugal “Golden Visa” programme to address the fact that few non-EU citizens have so far invested in Portuguese companies or employment creation.

Coutts believes, however, that the Portuguese Government could give some thought to introducing innovation and creativity for the investment option to create employment, which should include the government’s export and

14 | Property Investments

BETTER REGULATION REQUIRED Coutts explains that one of the challenges that H&P always finds in any market, especially with a relatively new programme such as the Portugal programme, is that often these are not regulated and anybody, whether qualified or non-qualified, can enter the market. “It’s too easy and that’s not a healthy thing”, he says.

“There are all kinds of regulatory bodies that do regulate these programmes and there is an opportunity for Portugal to consider that.

That would certainly have helped in the likely mitigation or even avoiding Portugal’s “Golden Visa” corruption scandal in November.

The senior partner points out that H&P has a code of conduct and ethics, due diligence and compliance procedures and corporate governance standards that are “second to none”.

However he admits that another challenge on the supply side is to ascertain if potential clients

Parliament – the Assembleia da Republica.

The scandal called into question the due diligence procedures carried out both by the Government and many of the companies selling the programme to Chinese, Russian, Brazilian, South African and scores of other non-European Union citizens around the world.

The arrests included the actual Director of Portugal’s border and immigration office

Fundamentally changing the €500,000 property investment option of Portugal’s Golden Resident Permit Programme would be a mistake. understand this.“Often they don’t. There isn’t any reason why they should unless they have done an awful lot of research,” he explains, which is why H&P’ relationship with the professional and regulated wealth management and asset advisory community is very important since wealth advisors understand how important this is, and will only refer their clients to similar like-minded professionals.

“This is why H&P receives a considerable volume of clients through recommendation and referral by this community,” he adds. One of the keys to H&P success is that they provide a whole A-Z of services, or “one-stop shop” to client investors, who are investing in real estate in the majority of cases.

“They need to receive a number of different and related investment advisory services,” he says.

Once they have made that investment, clients usually need to be advised about their investment and have that investment managed for them, in the way they would normally manage any of the assets in their portfolio.

Therefore H&P in Portugal must provide a raft of services, and that obviously ranges from managing legal advisory services, tax, education, property management, fiscal representation and statutory accounting reporting, because, as Coutts says, “our clients themselves only want to invest absolutely minimal time in the management and sustaining of their investment in the programme.

“Often they haven’t got the time and are very happy to entrust us with looking after their investment on an ongoing basis for the full five years of the programme,” he explains. 

(...) despite the black ink stain on the programme’s reputation, the opposition PS socialist party is unlikely to scrap the “Golden Visa”...

SEF (Serviço de Estrangeiros e Fronteiros), Jarmela Palos, and the Director of Portugal’s Notary and Registry Office Institute (Instituto de Registos e Notariado), António Figueiredo, and also the Secretary-General of the Ministry of Justice, Maria Antónia Anes. The detentions followed searches at three ministries – Environment, Justice and Internal Administration in a mega-operation involving 200 agents from the judicial police (Polícia Judiciária). The police began its operations on November 13th, 2014 and arrested 11 on charges of corruption and money laundering. Among others arrested included three Chinese citizens linked to companies who facilitate the processes and procedures for the “Golden Visa” application process in Portugal.

Other charges involved traffic of influence, embezzlement and the illegal carrying of a firearm. Under suspicion too was the daughter of António Figueiredo and her company, the Cascaisbased Golden Vista Europe which has various business activities including buying and selling cars, document processing services, selling marble and running education establishments.

The legal suspects remain under house arrest pending formal charges and a court case. Even so, despite the scandal, there has been no let-up in interest in the programme with at least 90 applications approved in December 2014.

LESSONS TO BE LEARNED

Since its launch in October 2012, 1649 “Golden Visas” have been awarded to non-EU citizens, over 80% Chinese, but the programme, despite having benefitted Portugal’s property market, has been criticised by opposition MPs in Parliament having created few direct jobs for the Portuguese.

A ministerial enquiry in December and an expected parliamentary working group this year envisages certain improvements to the programme, addressing the issue that although successful, so far it has generated little wealth, business development or jobs outside of the narrow confines of Portugal’s property market.

Either way, despite the black ink stain on the programme’s reputation, the opposition PS socialist party is unlikely to scrap the “Golden Visa” if it wins the general election, as seems likely, later this year; the programme has been too successful for that.

What may ultimately happen, is that the Portuguese government’s emphasis may shift towards investment in selected small and medium size companies which need cash to grow and this may ultimately be the way to go.  | 15

[ PA RT NE R S NEWS ]

C&W place brand Juliana Herc on Lisbon’s Avenida da Liberdade Cushman & Wakefield (C&W) has recently announced placing a new Brazilian luxury fashion clothing brand on Lisbon’s Avenida da Liberdade – Juliana Herc. The new shop, which has 260m2, was launched in September 2014 in Avenida 252 and

is the first shop in Portugal from the Brazilian designer of the same name.

The Juliana Herc brand offers ladies sophisticated articles of clothing with exquisitely made materials and quality The consultants C&W were responsible finishing touches by using elaborate and for placing the brand, having intricate handicraft work. Its identity acted on behalf of the owner, Revilla boasts a strong silhouette which is International. immediately identifiable as Brazilian.

Light, space and appeal in the new Amoreiras food court

New appointments at Cushman & Wakefield

The global real estate consultant Cushman & Wakefield (C&W) has announced the appointment of Fátima Machado and Nuno Tadeu as European associates for the firm.

Amoreiras Shopping Centre presents the first phase of a new food court concept in shopping centres, with a renewed space that will leave no one indifferent.

Fátima Machado is responsible for the management of various buildings in the Parque das Nações zone in Lisbon including the This new space is the result of a careful analysis of the needs of Arts Business & Hotel Centre (Credit Suisse), Mar Vermelho shoppers who daily pass through the food court area at Amoreiras.

(Internal), Espace & Explorer (AFIAA), among others, and is The design and interiors architecture project is by Miguel Saraiva and also responsible for the concept Sustainable Community by Nini Andrade Silva, who have given the space a new lease of life and Cushman & Wakefield. soul, incorporating all the latest trends. The total area modernised covers 3,060m2, of which 1,940m2 were given a complete makeover in Nuno Tadeu has been a member of the Royal Institution of terms of interior design, finishings, furnishings and layouts. The Chartered Surveyors (RICS) since June 2012. With a completion of the project and anticipated opening of the rest of the professional experience spanning around 20 years, he joined food court area is slated for the first quarter of 2015.

Cushman & Wakefield in November 2009 in the valuations department, where he is today involved in evaluations and The result is a totally revamped area which is at the same time advisory consultancy for renown companies and investors in functional, exclusive and inviting for passing footfall. national and international real estate markets.

16 | Property Investments

Blue Boutique Hostel & Suites is the latest tourism project on the Cascais line

LONDON OFFICES MARKET AT FULL FORCE SAYS WORX Real Estate Consultants has just released office rental market data for the London market.

The Blue Boutique Hostel in Estoril has opened in a typical 100-year-old Cascais property. With a seaward view, this comfortable and classy hostel is spread out over five floors with terraces, verandas, indoor and outdoor bars, a garden, living room, service room and 24 hour reception.

A place where, despite the quality and exclusivity of Cascais, accommodation can be rented at very affordable prices, with the

cheapest at €14 for bed and breakfast and the most expensive being the Master Suite at €150 also with breakfast.

However, the charm of the hostel lies not only in its well designed décor or the unique services that this hostel offers which sets it apart from competitors. It has unique features which makes it ideal for families and sports lovers, particularly those who practise water sports.

The London real estate market in London continues to grow without signs of slowing down. The third quarter of 2014 showed growth of 36% for the quarter compared with the previous quarter, well above the 284,425m2, the average over the past 10 years.

Telecoms, Media and Technology continue to dominate the take-up with

31% of total volume, with particular attention on two rental operations involving Amazon, representing 46,451m2. The vacancy rate fell 6.11%, the lowest level since 2008, now at 1,253,262m2.

This fall is associated to limited new supply expected for 2015 and the continuation of strong demand which should drive up rental values even further.

HAVAIANAS OPENS FIRST OUTLET SHOP IN PORTUGAL IN FREEPORT The first Havaianas shop to open in an outlet format has opened at Freeport near Lisbon.With two shops in Lisbon and in the Algarve, two concessions - this is the Brazilian brand’s first outlet shop in Portugal - has opened in a 62m2 space in Praça do Coreto, Freeport.

The company’s products, which are centred round a surprising international icon, Hawaiian flip-flops or ‘Havaianas’, the casual beach footwear comes in a wide range of sizes, designs and colours to suit all ages and types, and are synonymous with sun, sea and sand.

With the opening of the new Havaianas shop, Freeport is consolidating its mission to have a greater range of internationally known brands, which means shoppers can find all their favourite brands at Freeport, with the best discounts, all year round. | 17

[ PA RT NE R S NEWS ]

JLL announces promotions in EMEA region

WORX INCREASES VALUATIONS DEPARTMENT TEAM Worx’s Department of valuations has contracted Fátima Pinto Correia for the Technical Department.

JLL has announced promotions for the EMEA region (Europe, Middle East and Africa) in two key levels of leadership as part of its career progression system.

Seven professionals have achieved the post of International Director and a a further 24 have been promoted to the post of regional director.

Lourenço, Senior Consultant in the Department of Valuations, who joined in April 2010, and has now been appointed Associate Director.

The cycle of promotions and career progression at JLL recognises the professional and interpersonal skills of the staff, who in carrying out their One of the professionals functions, have contributed to promoted to Regional Director is added value creation for the Pedro Lancastre, Managing company and its clients.

Director of JLL Portugal. In addition to him, a further 2 JLL This system, implemented at an professionals have been international level, has four promoted, Fernando Ferreira, career progression levels, namely Director of JLL since January Associate Director, National 2014, when he joined the Director, Regional Director and consultants, has been appointed International Director, the latter National Director and Marta being the top of the career ladder.

With 18 years experience in valuations, having worked both in Portugal and internationally, throughout her career she has worked with recognised names such as CPU, Cushman & Wakefield, JLL and CBRE and has a detailed knowledge of the real estate market.

John O’Driscoll joins JLL Corporate Finance

to head the Mergers and Acquisitions department for Europe, Middle East and Africa

Lacoste duplicates offer in Freeport JLL has appointed John O’Driscoll as Head of M&A (Mergers and Acquisitions) for Europe, the Middle East and Africa (EMEA). John will support the growth of services and assessment in this M&A area, being particularly focused on mergers and acquisitions to do with large-scale real estate transactions, on a par with JLL’s Corporate Finance client services areas and Capital Markets.

Lacoste has just reopened its store at Freeport after expansion and renovation works which have doubled the shop’s area to 420m2, as part of the brand’s strategy to increase its offer at the outlet. The new shop now boasts 420m2 total area and presents a Premium Outlet concept, with the introduction of modern and original pieces of furniture and a space enough to display around 25,000 articles, in the Men, Ladies, Children, Accessories, Footwear and Leather Goods segments. Lacoste is one of the most sought after brands by non-EU citizens visiting Freeport and is frequently in the Top 3 on Freeport’s top sales index according to data from Tax-Free.

18 | Property Investments

John O’Driscoll has joined JLL as International Director (the top of the consultants’ career ladder), after having been eight years with Deutsche Bank, where he held the post of Head of Real Estate M&A for the EMEA region.

Prior to that he was part of investment bank JP Morgan’s real estate department. He will be based in London.

In 2013, JLL’s Capital Markets area turned over around €130 million in real estate deals per say worldwide and has been behind some of the biggest real estate investment deals in the offices, retail, industrial and hotels sectors in Europe, according toReal Capital Analytics. It was also considered Top Broker in Europe in 2013, according to the magazinePropertyEU.

B.PRIME MARKS ITS 5TH ANNIVERSARY

Bridgestone’s “ologic” technology wins BMW’s Innovation Supplier Award in the Efficient Dynamics category

by Gerhard Kurz, Vice-President of BMW’s Senior Driving Dynamics at an official ceremony on October 1st, in Amsterdam.

B. Prime, which has a property portfolio of around 40,000m2 for commercialisation in Greater Lisbon, has celebrated its 5th anniversary, placed around 12,000m2 on the market in 2014.

B.Prime, which since its founding has specialised in commercial real estate, is planning to expand to other business areas, currently preparing to launch a new department which will be announced shortly.

in the world) and has consolidated its position in the market, being currently responsible for the coexclusive commercialisation of 26,000m2 of office space, not to mention 13,500m2 exclusively, the most notable examples being Office Oriente Throughout these five years in and Torre Zen, in Parque das business, with its mission to Nações; Serpa Pinto, Terraços be the market leader, B. Prime de Bragança and Rafael has retained a close Bordalo Pinheiro in Chiado cooperation with DTZ (3rd and lastly Taguspark in the largest real estate consultants A5 zone, among others.

Bridgestone has been awarded with the BMW Innovation Supplier Award in the “Efficient Dynamics” category, in recognition of its “ologic” technology developed for the revolutionary BMW i3, an electric vehicle designed for a more sustainable mobile future.

The award was delivered to Franco Annunziato, the President of Bridgestone Europe,

Bridgestone was chosen by BMW to be the exclusive supplier for tyre development that will complement the the dynamic handling and sustainable performance of its revolutionary i3 all electric vehicle.

The “ologic” tyres have especially large diameters and narrow treads, which reduce tyre deformation and loss of energy during driving. Thanks to its design and the use of innovative materials, Bridgestone tyres made with “ologic” technology fulfil all BMW’s driving dynamic performance requirements.

B.PRIME APPOINTS

new director for investment area

Cushman & Wakefield strengthens its valuations and advisory team Carlos Domingos is the new director for B.Prime’s Investment Department, joining the Lisbon based real estate consultancy’s team. Among his tasks will be helping find solutions to the various clients that this consultancy has in its portfolio, namely institutional investors.

CBRE increases its Asset Services Department in Portugal The international real estate consultants Cushman & Wakefield (C&W) has appointed Guilherme Antunes Ferreira to its Valuations and Advisory Department. A member of RICS (Royal Institute of Chartered Surveyors) since 2013, he has worked in the valuations area in companies such as Worx, Red Advisers and CPU Consultants, having worked in the latter as Real Estate Valuations Coordinator.

CBRE has strengthened its Department of Real Estate Asset Management by hiring Bernardo Freitas from Vivapower – Thinking Energy and Tiago Pinto Carneiro, from Norfin SGFII The new appointments arise following strong growth in this business area. | 19

[ PA RT NE R S NEWS ] Architizer A+Awards

GUEDES CRUZ ARCHITECTS WINS BENCHMARK INTERNATIONAL AWARD

The Guedes Cruz Architects atelier, owned by architects José Guedes Cruz, César Marques and Marco Martinez Marinho, received gongs at the A+Awards for the best project worldwide, at a ceremony in New York.

They won in the Institutional/Health and Well-being categories, with a senior

citizens’ residence project, Alcabideche Social Complex which was distinguished by a jury composed of architects, designers, opinion leaders, curators and figures related to the world of architecture, and via the on-line voting public, with the best project worldwide in its category Recognised as the “Oscars”

for architecture, they are awarded annually by Architizer, a US site which is an international reference in the field of architecture.

The project also netted two honorary mentions in the “Architecture+Ageing” and “Architecture+Light” categories.

SAPA DEVELOPS CUSTOMISED SOLUTIONS FOR CRYSTAL BUILDING Built and managed by Siemens, this is the only building in the world to have the highest classification in two certification systems.

Crystal, one of the most remarkable and award-winning buildings in London, has joined forces with Sapa Building System to design products and solutions for a high level of energy efficiency.

The Crystal is one of the world’s greenest buildings, achieving Outstanding BREEAM accreditation and Platinum LEED accreditation - the most stringent standards for sustainable design and construction. It demonstrates first hand the remarkable systems and technologies that are employed to reduce its carbon footprint and ensure its environmental credentials over the long term.

The Crystal is an all-electric building that uses solar power and a ground source heat pump to generate its own energy. That means no fossil fuels are burnt within the building. The Crystal showcases state-of-the-art technologies to make buildings more efficient and also profiles Siemens’ Environmental Portfolio. The building incorporates rainwater harvesting, black water treatment, solar 20 | Property Investments

heating and automated building management systems. The design of the building’s structure provides additional insulation and takes energy efficiency to a new level.

With its extraordinary design, with various angles and inclines, its shape captures shade and natural light while the triple glazing exterior skin features 150 controllable window panels for natural ventilation. Rainwater is

collected and purified in the building and the 1,5802 metres of solar panels on the roof meet electrical requirements.

Heating is provided by heating pumps that operate using a system of underground tubes that are 17 kilometres long. All of these measures earned the Crystal Building a LEED Platinum certificate and BREEAM certificate with an “outstanding” classification.

EUROPEAN INDUSTRIAL MARKET SHOWS SIGNS OF RECOVERY

German offices market slows

Worx Real Estate Consultants, first provider of BNP Paribas Real Estate in Portugal, has released its European industrial and logistics figures.

zone such as the UK and Sweden.

Custom-made construction corresponded to almost one-third of transactional turnover in France and the The industrial and logistics United Kingdom, presenting segment was the most affected an alternative to the lack of by the economic crisis, with a supply of quality assets in the fall in exports and market. Unlike the situation consumption in most in prime markets such as countries in Europe, especially Germany and the United in large volumes.

Kingdom, where strong demand and a lack of supply Even so, 2014 saw an overall has led to an increase in economic growth (+1.6%) speculative development, in which should remain stable in Portugal this speculative Western Europe, strongly development has fallen, being influenced by the growth of replaced by customised countries outside the Euro construction.

Worx Real Estate Consultants has just released office rental market data for the German market.

Figures for the office rental market in the eight main German cities (Berlin, Cologne, Düsseldorf, Essen, Frankfurt, Hamburg, Leipzig and Munich) exceeded 2 million m2, 6% below the same period in 2013, showing a more cautious approach on the part of companies looking to rent.

In almost all cities, the vacancy rate has contracted, now falling below 7 million m2 for the first time in some years.

The biggest falls in vacancy occurred in Leipzig (-9%), Berlin (-6%) and Munich (-5%). Of all the cities analysed, the only one to show an increased vacancy rate is Essen (+10%).

NEW FITNESS HUT CLUB OPENS IN SPACIO SHOPPING IN OLIVAIS. funding. Fitness Hut has signed an agreement with OxyCapital Mezzanine Fund for €8 million, with the possibility of a further €4 million so that the club can open 25 clubs in Portugal by the end of 2016.

Fitness Hut, which now has eight gyms open in Portugal (Amoreiras, Arco do Cego, Picoas, Odivelas, Cascais, Trindade and Braga) has its 8th club - in the Spacio Shopping Centre in Olivais, Lisbon where it has 1700m2 for Lisbon residents who

According to Nick Coutts, company founder and manager, “our plan was to have eight clubs in 2014 and with this opening our goal has been achieved.

can have a complete gymnasium at low-cost prices. The team continues to be committed to an ambitious expansion plan, enjoying the support of its investor We will continue our policy for openings and shareholder The Edge Group. in 2015 and we aim to be the largest gym Fitness Hut has obtained €1.5 million in chain in Portugal.” | 21

[ PA RT NE R S OPINION ]

PORTUGAL’S NEW

Local Accommodation Law

LIVIA ZIEGELMEYER | Laywer, CAMEIRA LEGAL

A new accommodation law in Portugal could provide investment opportunities in short-term real estate lets by attracting investors interested in expanding their portfolio of investments to the country says Lívia Ziegelmeyer, laywer at Cameira Legal.

A

new Local Accommodation Law, passed by the Portuguese Parliament in November last year, should better regulate the short-term holiday letting business and open the door to real estate investors.

are applied differs greatly from country to country across the Union. Cities like Amsterdam and Paris have passed new legislation that welcomes short-term rentals while Barcelona and Berlin impose heavy restrictions on them.

would fall into the tourist establishments category; • Basic health and safety rules were created (the need to be connected to the public water system, supply hot and cold running water and a clean, hygienic environment);

Where Portugal is concerned, the Portuguese Hotels Association has recently estimated that • There is no licensing or authorisation regime Decree-Law 128/2014, which updates there are four million illegal overnight stays per per se, but the City Council needs to be Portugal’s Local Accommodation Legal year, which is equivalent to 10% of total stays. notified by the lessor of the accommodation Framework, is designed to tackle the everservices, which can be an individual or legal increasing parallel beds phenomenon that has Nevertheless, this phenomenon is nothing new person. There is also no fee for starting to rent shaken up the international accommodation in Portugal and rentals that escape the tax the services; community. authorities are common, the difference now being that the internet is making it more • Foresees the strictu sensu liability of the lessor From New York to Paris, the informal renting popular than ever. for damages caused to users of the lodging out of apartments and rooms has proved big service, as well as third parties; business, but it has created a legal and tax In order to tackle the ´parallel beds` headache for governments and lawmakers. phenomena in Portugal, Portuguese lawmakers • In terms of enforcement, ASAE is now in decided to update the rules that had been charge of health and safety while the tax It has provoked a row between internet sites governing local accommodation since 2008. authorities enforce tax obligations.

(Airbnb and Home way) and the hotel industry The most significant changes introduced by the which feels it is losing out to unfair new legal diploma are as follows: In times of widespread uncertainties regarding competition, since private individuals using the legal implications of the parallel beds these sites to rent out their homes or single • Local accommodation that cannot be phenomenon, these changes represent a very bedrooms often pocket the extra cash without categorised as a tourist establishment (motels, positive innovation for the real estate business paying taxes. bed and breakfast, boarding houses and inns) in Portugal. now have an independent and specific legal While New York adopted a less friendly framework separated from the rules governing Consequently, the legal certainty introduced by approach and declared most of Airbnb´s tourist establishments; what can be considered one of the friendliest business illegal, on the other side of the US a legal frameworks for short-term rentals in the San Francisco congressman proposed a law • Specific requirements for the use of the EU could foster enough confidence to attract that allows people to rent their homes and denomination “hostel” were introduced (such investors interested in expanding their portfolio rooms to travellers on a short-term basis. as a minimum number of beds per room and of investments to countries like Portugal. that the establishment is composed only or The conflict has reached the European mainly by dormitories); Furthermore, an expansion of the short-term Union, which in turn has decided that the property rental industry opens the door for solution should be found within the EU’S • Each person can only rent out nine the development of a whole new market legal system. In that light, EU lawmakers appartments per building, with a maximum dedicated to the administration of shorthave already passed laws to tackle the number of nine rooms per appartment with 30 term lettings and could follow the model situation and, unsurprisingly, the way they lodgers. Any number above that threshold that exists in Florida.  22 | Property Investments

AssegurAmos o vAlor

do seu investimento imobiliário O Bureau Veritas trabalha em parceria consigo para garantir a criação de valor atestando a gestão da eficiência energética, qualidade, inovação e sustentabilidade do seu activo imobiliário, como é o caso da Certificação LEED e BREEAM.

Bureau Veritas Portugal www.bureauveritas.pt info@pt.bureauveritas.pt N.º Nacional 707 200 542

[ BUSINE SS INT E RV IEW ]

Fundbox In multi-million euro

Porto Exponor redevelopment CHRIS GRAEME | Interview

An ambitious new urban redevelopment plan for Porto’s Exponor envisages a state-ofthe-art congress and fairs centre, a 5-star hotel, retail outlet, offices and commercial area and residential and student accommodation. The project is being part-financed by an innovative new fund managed by Fundbox. Manuel Monteiro de Andrade, Managing Director of FundBox and Joaquim Meirelles, Fundbox Board Member explain more.

MANUEL MONTEIRO DE ANDRADE

24 | Property Investments

JOAQUIM MEIRELLES

The setting up of the fund Nexponor, which comprises all of the revenue assets for Exponor Matosinhos, and its subsequent floatation on the Alternext Lisbon stock market proved a major success on the capital markets. Why?

The Fundo Nexponor fund, managed by Fundbox, is valued at €65.8 million and currently boats over 200 shareholders. It’s been successful and that success has been recognised by Euronext which gave it the Financial Innovation Award in 2013, competing with all the other financial products launched on the market.

The fund proved the biggest floatation on the Alternext market, one of the four stock markets held by Euronext* (*Euronext is the first pan-European exchange, spanning Belgium, France, the Netherlands, Portugal and the UK. Created in 2000, it unites markets which date back to the start of the 17th century. It is the primary exchange in the Euro zone with over 1 300 issuers worth €2.6 trillion in market capitalization, an unmatched blue chip franchise consisting of 20+ issuers in the EURO STOXX 50® benchmark and a strong diverse domestic and international client base.).

Its principal characteristic is that it is the first Portuguese SICAFI real estate fund and the first to be quoted on the stock market.

Its principal characteristic is that it is the first Portuguese SICAFI* (*Fixed Public Capital Real Estate Investment Trust) real estate fund and the first to be quoted on the stock market.

The experience was excellent given that Fundbox does not have a network of agencies and with this closed fund we’ve created an alternative to open funds with equivalent tax advantages.

Is Nexponor considered a model for Portuguese SMEs as a potential source of financing?

These models floated on the stock market are excellent financing.

They work extremely well for SMEs with high borrowing. This SICAFI created by the AEP (Associação Empresarial de Portugal) (Portuguese Enterprise Association) was launched and then distributed by the banks. The idea is to use the fund, collecting

| 25

[ BUSINE SS INT E RV IEW ]

taxation on the floatation of the fund and on the investor. It will prove a very interesting vehicle for investors if this measure is implemented in 2016 as planned.

Exponor is made up of seven multi-use pavilions meant for fairs, exhibitions and congresses, etc. What does the new Exponor development project consist of in terms of use and concept?

The project is based on urban regeneration aiming to revitalise an industrial and services area. The project will create unique buildings and environments, creating new experiences which will be both formal and conceptual. It involves preserving part of the current Exponor Congress and Fairs Centre which will remain open. The project involving the Exponor Congress and Fairs Centre and the car park will revamp its architectural image by integrating façade elevations. These will be visually very dramatic on the approach and will include pedestrian areas. The overall aim is to create an outstanding set of buildings, incorporating the original structures into the overall project design.

The new Exponor will also boast a 4-star, 150 room hotel which will also be a business centre, featuring meeting rooms of various sizes and types to cater for the various business needs in the market. A covered walkway links the Congress and Fairs Centre forming a direct and functional link between the two building structures.

There will also a be a student residential accommodation block for higher education students including 177 studios and common social areas which are characteristic to this type of development. These two premises, located along Avenida Dr. António Macedo, will provide a striking visual image on the street.

There will also be an area for start-up companies with 24 units, 14 of which have been earmarked for the service sector and 10 units destined for small-scale manufacturing companies, as well as green industries housed in small but tall nave-shaped spaces.

This aspect has been designed to fit in with the type of companies in the area and will complement the future residents in the residential block with new companies and new concepts.

What phase is the project currently at, who is the architect, what is the total investment and when is the expected completion date?

The Schedule Information Plan will be finalised by the end of this year and we anticipate to have planning permission by A new retail outlet will be built with 150 shops. The proposed outlet the middle of the 2015. The project is being run by FAT will architecturally be characterised by organic and fluid forms in a – Future Architecture Thinking from architect Miguel Correia. building covered by a skin. It will be an iconic building that will not The expected calculated investment runs to €62 million and only stand out in the surroundings but aims to provide a new the construction phase period will be 5 years with a landmark for users. Its colours will highlight the structures through conclusion date in 2020. their vibrant and warm nature.Above the façade, on the first level, there will be a car park to cater for retail complex. The commercial Who will manage the various facilities?

We’ve currently got a team of advisers for both the retail and part is located at street level with respective entrance points which hotel facilities. Dynamic Hotels will act as the consultant for are open and clearly visible. The entire retail and office area is the hotel and help us develop the business model and brand situated on the same floor. Over the commercial area, shielded by the façade which covers the building, is a section designed to house for the hotel. As for the retail, we’re still looking for a team to manage and market this area.  the necessary technical areas serving the complex.

26 | Property Investments

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[ BUSINE SS OPINION ]

BREEAM

The Global Evaluation of Buildings ARNALDO ABRANTES | Coordinator for the Department of Construction, BUREAU VERITAS

The BREEAM benchmark is currently the tool most used at a European level to evaluate the sustainability of a building. Having initially been developed in the United Kingdom by BRE (Building Research Establishment), this benchmark is now widely used in Portugal.

28 | Property Investments

The BREEAM benchmark goes that much further to include topics such a transport and accessibility, waste management and water consumption, as well as the materials used.

T

he BREEAM building benchmark has been adapted to the reality of the Portuguese market and various other European countries where due to the norms, regulations and climate specificities applicable, they were not easy to apply or ended up by producing effects that were contradictory to the ones intended.

Today BREEAM is successfully being used in projects all over Portugal.

Since there are already European Union directives aimed at the requirement for increasingly greater energy efficiency in buildings, of which the concept of NZEB (“Near Zero Energy Building”) is the most illustrative example, one might question the need for yet another system to evaluate a building from its environmental point of view.

However, BREEAM has great advantages compared to traditional references.

Since buildings are responsible for a not insignificant percentage amount of energy produced, the philosophy of certification has been essentially centred round this area.

However, the concept of sustainability is, by a far chalk, more holistic than

just a simple analysis of the building’s energy efficiency as an isolated entity which is unconnected from its surroundings and the community.

with the same level of efficiency if the former is located in an area away from a built up area and poorly served by public transport.

As already referred, BREEAM is centred on sustainability. As a concept the way it is used is simple

The careful choice of materials, preferentially local ones, taking into account its life cycle and also relevant within the overall context in which it operates, is also of paramount importance where secondary effects and external factors such as long distance transport have also to be taken into account in a thorough analysis of the project’s sustainability.

The reference marker is based on a number of credits, grouped by theme, it being necessary to compile and justify the proofs that demonstrate respective compliance so as to score points and get a final classification.

The way in which the evaluation of the building’s sustainability is done holistically is reflected in the themes that make up each group of credits.

If an evaluation from an energy point of view is essentially centred on this factor, the BREEAM benchmark goes that much further to include topics such a transport and accessibility, waste management and water consumption, as well as the materials used.

And it is here that an extra special attention is shown in the building’s analysis from the point of view of overall efficiency and the way it interacts with the surroundings and community.

An energy efficient building from a purely energy point of view can not be considered equivalent to another

Apart from the whole energy and environmental component, it’s also important to mention the advantages brought by the use of an internationally recognised benchmark evaluation system.

For investors, it represents an added value, indeed it shows in a simple and direct way the overall quality of a building and apart from the construction phase also includes operational costs, a major evaluation factor to be taken into account in the long term.

For companies that decide to press head with certification, there is also the need to make a commitment to the community in which the building is located in a practical and concrete application of the concept of social responsibility. | 29

[ PA RT NE R R E P ORT ]

ALEGRO SETÚBAL

OPENS TO THE PUBLIC

The new Alegro shopping mall developed by Immochan, creating 1,500 jobs, has opened. Work began on turning the former Jumbo hypermarket shopping gallery into a state-of-the-art shopping mall.

Designed by architect Mario Sua Kay, work started in January 2013 taking 20 months and finally opening on November 2014.

30 | Property Investments

Alegro Setúbal is the first modern shopping mall in the city. The €100 million mall was developed by Immochan, the real estate arm of the French group Auchan. It is the group’s third Alegro shopping mall in Portugal and the only shopping centre to have been built in the country in the last two years.

Alegro Setúbal has a 44,000 m² GLA (Gross Land Area), added to the 15,000 m² of pre-existing hypermarket space and 27,000 m² GLA of new space (not including the Jumbo hypermarket), with 114 shops spread out over 3 floors, of which the all-new and improved hypermarket is the anchor. It boasts a FNAC store, the first-ever Mango megastore in Portugal, the second largest H&M in the country (including the concept Home & Kids), Sport Zone, Lefties, Bershka, Zara, Stradivarius, Pull & Bear, among others. It also boasts nine state-of-the-art CinemaCity cinemas and a Fitness Hut health club. The shopping mall also features free parking space for 2,600 vehicles. The new shopping mall was developed to meet the needs of the region’s

consumers, avoiding having them go outside the borough to shop by creating a modern, attractive and spacious shopping facility for consumers.

Through a diversified range of commercial offer which has been designed to suit all types of consumer and pockets, Alegro Setúbal will certainly meet the needs of around 125,000 inhabitants in the Setúbal borough and a further 300,000 living in the region as a whole.

SPACIOUS FOOD COURT TO SUIT ALL TASTES In terms of restaurant and café amenities, Alegro has created a food court, with 10 innovative theme eateries in one food area with different atmospheres which have been adapted to the different lifestyles of the customers. The furnishings and signage were designed by Pedro Gomes in a partnership that gave rise to the development of 14 products exclusive to Alegro, and which enabled the use of exclusively Portuguese materials while also

investing in around 10 national industries, thereby contributing to an example of 100% Made in Portugal innovation.

INNOVATIVE DIGITAL EXPERIENCE Considered a state-of-the-art shopping mall, Alegro Setúbal provides its customers with a digital experience. A pioneering and avant-guard example of this are the digital walls that interact with customers, the tables which act as giant Tablets and the panoramic lifts with moving LED screens. The entire technological aspect was developed in partnership with the Portuguese company EDIGMA, leader in the development of interactive projects and solutions based on multi-touch features and hand gesture recognition. Another of Alegro’s investments in national companies, thereby contributing towards boosting the Portuguese economy.

FOCUSING ON LEISURE AND ENTERTAINMENT Complementary to this commercial offer, it also boasts a unique range leisure, culture and entertainment facilities that include various play areas, a sport’s ground, a climbing wall, a vast garden with gym equipment and an ample terrace overlooking the Bay of Setúbal with views of the Serra da Arrábida, as well as different areas that all feature different environments.

URBAN REGENERATION AND CARING FOR THE ENVIRONMENT The Alegro’s location, at the city’s main gateway approaching the A2, has meant that the entire area has been regenerated and landscaped.

Alegro Setúbal was designed to be the first complete building in the country to have a BREEAM environmental certificate, the most demanding category at an international level. It will also serve as a driver for increasing the Setúbal region’s economic attractiveness. | 31

[ PA RT NE R S OPINION ]

THE FUTURE OF RETAIL Shopping Centres and On-line Shopping

ANTÓNIO SAMPAIO DE MATTOS | President, PORTUGUESE COUNCIL OF SHOPPING CENTERS (APCC)

ust days before Partners in In Portugal the digital platform market is extremely Business invited me to write important, worth €2.4Bn in Business to Consumer this reflective article, I happened across a very (B2C) shopping on digital channels with an interesting piece of news in estimated total of 6.7 million internauts. But despite the on-line issue of the Wall Street Journal about the the rise in online shopping, traditional shopping is on-line retail giant Amazon here to stay says António Sampaio de Mattos, opening its first physical shop in President of the Portuguese Council of Shopping New York.

Centers (APCC). I therefore began to trawl my memory for a few recent and salient points and almost immediately two apparently separate questions sprung to mind.

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Can it be fathomed why some on-line retailers had begun opening physical shops? On the other hand, was it possible to grasp what was motivating retail companies, many of which have decades of experience, to go in for on-line shopping?

I then understood that these two perspectives were part of the same equation, the presupposition of which represents the greatest revolution that the retail trade has ever seen, or putting it another way, the integration of the most absolutely extraordinary technological development of the last two decades.

But I also understand the other side of the coin, the absolute need for physical premises. Something that are called “Bricks and Mortar” in English speaking countries.

One should never neglect to give importance to a physical premises.

Which is why I do not believe that the Internet in its almost endless applications and platforms, available on the widest range of devises, both mobile and fixed, and through high-speed broad-band communications networks, should be the be all and end all of everything.

However, this does not downplay the great importance that it has.

A recent study by the Association of Electronic Commerce and Interactive Publicity (Associação de Comércio Electrónico e Publicidade Interactiva – ACEPI) in tandem with the IDC, states that in 2012 there were 2.5 billion internauts worldwide who were responsible for a total transactional turnover of €850Bn.

Currently, the multichannel concept has already been surpassed by something ever more present in our day-to-day lives, omnichanels, in other words multiple contact channels that are present at any time and in any place. transactions. In other words an amount close to 2.5% of the national GDP. This data, while impressive, should be examined with much caution, since it only represents a part of the story.

If we equate these factors to our economic and sociological reality, we then go on to debate which factors are most highly prized by the Portuguese, who are boosting the penetration of new technology in society.

Which is why in this context I would like to add another reflection regarding the results of a study also carried out in 2012, in Germany, by the consultants Roland Berger, and commissioned by a large shopping centres operator, ECE Projektmanagement.

The results of the study also refer to the fact that Portugal has made notable progress since it is estimated that there will be 8 million internauts by 2017, who will make €4Bn worth of online

Basically this study called “Opportunities for Retailers and Manufacturers in a Multi-Channel World”, is the fruit of a survey on 40,000 people and demystifies a

collection of pre-conceived dogmas in a simple way to do with the relationship of consumers with online and offline shopping.

The results are enlightening and reveal that despite the growth in online shopping, the majority of consumers are not likely to replace more traditional forms of shopping, citing the experience of the shop, the increase in emotional involvement in the act of making a purchase, and specialised and personalised service as examples being exploited by retailers.

On the other hand, the study refuted the idea that price is the main argument in online shopping; that young people prefer online shopping to the detriment of the shopping experience; and that the showrooming concept is a threat to physical retail. It therefore is very clear about the future of shopping.

Online and offline shopping are complimentary, and the key to success for retailers lies in a structured and balanced multi-channel offer, never forgetting the permanent focus on the client.

I fully agree with these results and see with greater clarity the movement that has led companies to add online channels as to their primary offline business model.

Currently, the multichannel concept has already been surpassed by something ever more present in our day-to-day lives, omnichanels, in other words multiple contact channels that are present at any time and in any place.

This is a question of paradigm, any anyone who does not adapt to this reality, I believe simply doesn’t have the capacity to face the future.

I have come to the convinced conclusion that the shop experience will never die, and that the technological tools and those of online channels, whatever they may be, will only serve to complement and enhance retail business. Therefore each one will have to find his own path.  | 33

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“ The Quinta da Fonte club’s success was a driver for Holmes Place’ expansion all over the country.

HANS KOSTER | CHAIRMAN, HOLMES PLACE

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Holmes Place

Holmes Place occupies new headquarters at Quinta da Fonte CHRIS GRAEME | Interview

Holmes Place was the first multi-national health club to open in Portugal and since its arrival in 1998 has become a household name and a reference nationwide. Hans Koster, chairman of the board of directors explains the secrets of its success and how it has weathered the crisis How does Holmes Place contribute towards helping people, the staff and its members stay fit and healthy? What is its essential core philosophy?

Holmes Place has a holistic approach to how people can improve their lives and life style by presenting solutions how to MOVE WELL, EAT WELL and FEEL WELL. We believe that healthy, motivated people with a purpose in life will not only be happier and stronger but they will also be more creative and productive as well as living longer.

What innovative new services do you have for your members?

We have 60 nutritionists on hand helping our members to achieve their goals towards living a better and healthier lifestyle. In 2014 we introduced our new group exercise classes, we exclusively run Art of Swimming and Antigravity Yoga classes which are both revolutionary ways to be active which are not only holistic but also fun.

Why did you move to Quinta da Fonte?

Do you think the quality and range of facilities are essential when it comes to employee productivity?

We are moving to Quinta Da Fonte because we will be in a quality building set in a quality environment with great facilities where the surroundings and atmosphere will better enhance and compliment the kind of services we offer. My former company built Quinta Da Fonte, and the approach, philosophy and decisions made back then to improve quality of work are still very valid today.

one roof, whereas before we were separated over different buildings. This will enhance our sense of being together and is the perfect reward for all our hard efforts over the past years.

Given the terrible recession which Portugal has faced, hitting the middle class particularly hard, how have you What are the assets and added values at weathered the crisis financially and what business strategies have you pursued Quinta da Fonte? against so much fierce competition from The location is very good whole the environment is cozy and inviting. We will also low-cost competitors? add value to QDF as our Innovation Centre and Antigravity Yoga studio will be there.

Holmes Place opened its first gym in Portugal at Quinta da Fonte. What are the results and satisfaction obtained?

In 1998 the club was a roaring success and was a reference point attracting people from central Lisbon and Cascais to the first true “health club” in Portugal.

We have enjoyed a lot of success with companies in the business park, 50% of staff became our members and since most multinational companies know the benefits of a healthier lifestyle on productivity and The Quinta da Fonte Q 34 building ‘FORUM’ satisfaction, they signed up to Holmes Place is a perfect size building for us in which and paid for their staff. The Quinta da Fonte we can all fit and grow together. It’s very club’s success was a driver for Holmes Place’ important to have each department under expansion all over the country. Today Holmes

How important are the premises where the company has moved to for Holmes Place? Which advantages are there from being at Quinta da Fonte?

Place has 19 clubs, 56,000 members, 1,500 staff and is still going strong.

When the new shareholders took over we had to rethink the whole strategy of pricing and entered into a very tough cost-cutting program. Thankfully we had the support and understanding of our suppliers and landlords regarding the market reset. Both we and they knew that things would never be the same again.

The old strategy of “one price fits all” did not fit the times, so we changed prices and product offer to be more tailor-made to meet location and market demand.

To stay competitive and attractive the Move, Eat Feel Well concept has been retained but coupled with heavy investment in refurbishments and gym equipment as well as our own innovation centre and new group classes.  | 35

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Santa Rita – Architect

Time to modernise and restore PORTUGAL’S BUILDING STOCK

CHRIS GRAEME | Interview

SANTA RITA | Beadle of the Portuguese Order of Architects

Urban rehabilitation is vital for the social, cultural and economic welfare of urban areas and their communities. But recent changes to Portuguese law and lack of central government support is threatening this movement says João Santa-Rita, the President of the Portuguese Architects Association which represents architects and promotes architecture.

How do you see new architects faring in the Portuguese market and what professional opportunities exist given the crisis that the sector is currently going through?

Around 80 new architects are registered a month with the association and, as is the case for the majority of architects, this coincides at a difficult time for the construction sector.

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According to data from the Portuguese Employment and Training Institute (Instituto do Emprego e Formação Profissional – IEFP), the number of new members has almost quadrupled since 2008, despite a recorded decrease in 2014. Around 50 architects a month are leaving the country. It’s a situation that worries us a lot at the Architects Association, a trend we need to reverse. Paradoxically, there’s a lot to do in the country when one considers the vast patrimony held by various State institutions.

Urban and building rehabilitation should be supported by state strategies, and in some cases private ones, including priority investment areas.

Was the professional freedom of Portuguese architects recognised when the government repealed Decree 73/73?

It’s bewildering and surprising that five years after its repeal the role of architects is once again under threat because of the Draft Laws 226 and 227/XII under discussion in Parliament. We can’t find a justification for the changes to Law nº 31/2009, taking into account the wide consensus that its approval in parliament, considering that this Law was supported by civil society and a historic commitment between professional associations that agreed on a package of conditions based on quality, safety and competitiveness when designing, supervising and carrying out private and public building projects. We can only consider these changes in the draft law unjustified which contravene the original acts of the profession set out in the original law and in the Statutes of Association, such as the drawing up and subscription of Architectural projects (exclusively), Project Coordination and the Management and Supervision of the Work.

and comfort while modernising and improving city living conditions and development. Only by supporting quality environments will we protect the future of our citizens, which means supporting architects and their profession.

Has the simplification of legal regulations regarding planning encouraged good rehabilitation development?

Decree-Law No 53/2014 was published this year and establishes an exceptional regime for seven years which applies to the rehabilitation of buildings or fractional properties, whose construction had been completed at least 30 years ago, or properties in areas set aside for urban rehabilitation whenever they are meant to be used totally or mainly for residential use.

The Architects Association has been arguing for a reworking and regulation of legislation for some time, namely through the creation of a Building and Construction Code which harmonises and updates legislation in the sector, taking into consideration existing buildings and their morphology and the specifics of the way they have been built.

A regime with specific rules and guidelines is expected, encompassing the entire rehabilitation process the implementation of which will later become a reality.

The law should consider minimal conditions, a role that is down to the state to define when it comes to ensuring the defence of the public interest.

The Architects Association believes that the current regime has not provided an opportunity for creating a vision and strategy for rehabilitation, instead placing the emphasis on economic aspects to the detriment of the design and revitalisation of urban spaces.

Today we can see that various sustainable buildings were built that were commercially unviable. Is there a contradiction between sustainable architecture being technically and economically viable?

On principle architecture considers the integration

It seems that new building projects are at a standstill. and adaptation of buildings to their contexts, uses and Do you think that urban renewal and rehabilitation resources. In other words, by definition, a building cannot will be the new road to take for architects in contradict its technical and economic viability.

Portugal?

Urban and building rehabilitation should be supported by state strategies, and in some cases private ones, including priority investment areas. This is an important activity area, requiring preparation on the part of architects. It is vital for the country’s social, economic and cultural development and should be considered as strategies both nationally and regionally, for city centres and their outskirts.

Architects can ensure the quality of the built environment, which will ensure quality of life for their citizens. And it is this that is in question in the various positions that we’re taking up against the proposals in draft Law 226 and 227/XII. Rehabilitation represents technical, political and cultural responsibility, which should add value to the existing environment, improving its conditions, guaranteeing safety

The manner of design should provide the architect with an opportunity to reintegrate knowledge that have been discarded with disastrous consequences. The diversity and quality of examples to be found in “Popular Architecture in Portugal” are there to be seen.

The review of regulations which have an impact on the quality and comfort of built environments fits into a number of actions which the Architects Association has taken an active part in, regarding the dispersion and contradiction which affects the entire body of regulations covering building.

As far as the Association is concerned, legislation should more thoughtfully reflect the physical and economic aspects of the country, meeting the needs of strategic programmes as is the case with rehabilitation.  | 37

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Portugal’s oil 1st National Residential Tourism Conference Photos by kind permition

Residential tourism is one of the sectors with the greatest potential for growth in Portugal and could be likened to oil for Portugal according to Diogo Gaspar Ferreira, President of the Portuguese Association of Resorts. However, more needs to be done to market Portugal’s top-quality offer more aggressively internationally.

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1. DIOGO GASPAR FERREIRA | President, Associação Portuguesa de Resort 2. ADOLFO MESQUITA NUNES | Secretario de Estado do Turismo 3. JOÃO COTRIM FIGUEIREDO | President, Turismo de Portugal 4. PEDRO FONTAINHAS | Managing Director, Associação Portuguesa de Resort 5. FRANCISCO CALHEIROS | President, Confederação do Turismo Português 6. CARLA SIMÕES | Manager of Living in Portugal, Turismo de Portugal 7. EDUARDO ABREU | Partner, Neoturis 8. TIAGO CAIADO GUERREIRO | Senior Partner, Caiado Guerreiro & Associados | 39

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EXPO REAL 2014 Portuguese participation limited but returning

Exhibitors, developers and investors were in an upbeat mood at Europe’s largest property fair Expo Real. Although Portugal had a modest participation, Lisbon was well represented, showing its renewed confidence as a major and popular destination for tourism and business startups in Europe.

The strength of Portugal’s presence at Expo Real, Europe’s largest and most important property fair, is often seen as a barometer to the state of the real estate market in that country. And although Portugal’s participation was limited in terms of both exhibitors and attendees, the fact that Invest Lisboa, Lisbon Municipal Council, Sonae Sierra, Baía do Tejo, Pura Imagen, Carvalho & Ramilo, Living Stone, PLMJ, Troiaresort Wondering 3D and Worx all shared stands or had a presence showed that the real estate market in Portugal is on the mend.

All of the Portuguese delegates that Partners in Business (PinB) spoke to at the fair agreed that the overall atmosphere was “more positive” while Portuguese colleagues and companies said they felt that the worst of the crisis was behind finally behind them.

The Executive Director of Invest Lisboa, Rui Coelho, for example, told PinB that the event had “proved useful for making some interesting contacts with some actual business meetings being organized in Lisbon”. He said there was interest in a possible development on a parcel of land at Lisbon former Expo site, Parque das Nações, for a mixed-use development that will include a small manufacturing unit and offices. The CEO of Worx, Pedro Rutkowski, was also impressed by the change in mood at the fair, noting that it was “good to see quite a number of Portuguese companies at Expo Real” and believed that there were reasons to be “cautiously optimistic” about the future.

Most Portuguese attendees that PinB spoke to agreed that there were sustainable signs of recovery in the second half of 2014 after several years of contraction following the financial and sovereign debt crisis of 2010-12.

Expo Real, the 17th International Trade Fair for Property and Investment took place in Munich in October 2014. There was a slight increase in exhibitors this year, 1,655 compared with 1,653 in 2013, from 34 countries, including Portugal.There was also a marginal 2.5% increase in professional attendees overall, with 36,900 compared to 36,000 last year, from 74 countries worldwide.

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The strength of Portugal’s presence at Expo Real is often seen as a barometer to the state of the real estate market in that country.

attendance. We make 30 to 40 contacts per day which normally takes us months back in London. EXPO REAL allows us to innovate.”

It was also the first time at EXPO REAL for Mikhail Men, Minister of Construction, Housing and Utilities of the Russian Federation; he, too, was impressed: “Taking part in EXPO REAL as an exhibitor is the first international appearance of the still fledgling Ministry for Construction and Housing of the Russian Federation. This debut is going very successfully for us. Here, it is not about pathos but real business.

In Germany in particular, alongside the classical residential and office segments, the trend is towards alternative property investments. That was seen at the fair in the stronger showing from companies involved in property for the hotel, retail, logistics and health sectors.

This is seen as a positive development, also by Nima Davoodzadeh, Vice President of Piotr Bienkowski, Chairman of the Board of Development Europe, Wyndham Hotel Group, BNP Paribas Real Estate, Germany, said: “Once UK: “Over the last few years EXPO REAL has again in 2014 EXPO REAL has lived up to its become one of the most significant platforms reputation as a working fair. The appointment for hospitality and hotel development in density was extreme, including many meetings Europe. with ‘newcomers’ from abroad.”

Summing up this year´s show, Axel The international scope at the fair was also Vespermann, Managing Director of UBS Real underlined by Ulf Buhlemann, Senior Estate KAG, from Germany, said: “We are Executive Investment Germany at Colliers much taken with both the quantity and quality International, Germany who said: “Especially of the trade. EXPO REAL affords the because of the presence of numerous foreign opportunity to make valuable contacts and investors, EXPO REAL has become more showcase our product range to an international attractive compared with last year. It has again target audience. confirmed itself as the most important meeting point for established and ‘new’ investors alike.” Of the total of 36,900 participants (2013: 36,000), 18,600 were trade visitors (2013: One of these ‘newcomers’ from abroad was 18,600) and 18,300 were representatives from Raquel Fortes, CEO of Wondering 3D who the exhibiting companies (2013: 17,400). The said that they had visited various fairs in top ten countries of origin for the visitors were, Europe in 2013 and 2014 but opted to have a after Germany (and in this order): UK, presence at Expo Real because of its Netherlands, Austria, Switzerland, France, importance internationally.

Poland, Czech Republic, US, Russian TIAA Henderson Real Estate, UK. He was Federation and Luxembourg. delighted: “EXPO REAL is the major European real estate networking opportunity where The next EXPO REAL takes place from investors, service providers and tenants are in October 5 to 7, 2015 in Munich. 

ICSC European Conference 20–21 April 2015

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Park Plaza Westminster Bridge Hotel, London, United Kingdom In association with:

LEADING RETAIL PROPERTY

Destination: Retail • • • •

Discover the secrets behind Europe’s leading retail destinations Connect with prominent CEOs shaping the retail market in Europe and beyond Visit new and innovative retail property in London The Celebrate 40 years of the ICSC European Conference!

Conference

ICSC Global Partner

returns to London for the first time since 1980

ICSC European Partners

Gold Sponsors

WiFi Sponsor

FOR MORE INFORMATION, PLEASE VISIT WWW.ICSC.ORG/2015EU OR CALL +44 20 7976 3100 #EUROCONF | 41

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Alegro Setúbal New €110 million shopping centre creates 1500 jobs

Photos by kind permition

The first shopping centre for Portugal’s city of Setúbal opened at the end of last year. Developed by Immochan, the real estate arm of the Auchan Group, it represents a 110 million euro investment and will create up to 1,500 direct and indirect jobs from what was the only shopping centre to open in Portugal in 2014.

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1. MÁRIO COSTA | General-director, Immochan Portugal 2. MARIA DAS DORES MEIRAS | Mayor, Setúbal Council 3. ANTÓNIO PIRES DE LIMA | Minister of the Economy 4. AMÉRICO RIBEIRO | General-director, Auchan Portugal Hipermercados 5. VALENTIM SERRANO | General-director, Immochan Internacional | 43

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MAPIC’s 20th Anniversary

INTERNATIONALISATION and innovation

MAPIC, the International Retail Property Market, celebrated its 20th anniversary last year. Held in Cannes, from November 19th to 21st, Europe’s largest retail property fair had a retrospective and prospective theme, looking back at the past two decades and forward to the future.

Organised by Reed MIDEM, this year’s fair enjoyed a more optimistic atmosphere from the delegates drawn from the ranks of retailers, developers and shopping centre management companies. Against a backdrop of increasing confidence in the changes that are taking place in the industry, particular attention was paid to two major retail property countries – the United States and China.

“Over 20 years, MAPIC has made its mark as a unique observatory of key trends in retail property on an international scale. To celebrate this anniversary, we decided to analyse these developments in more detail and develop a new vision of the future,” said Nathalie Depetro, the event’s Director.

During the event MAPIC organised a conference cycle entitled “20 years back – 20 years forward” that presented the views and perspectives of the shopping centres and retail brands that attended the first event in 1994.

Director of International Development, Mothercare PLC (UK).

decades. Experts anticipate that there will be even greater opportunities in the country in the coming years. China, which began At MAPIC 2014 there were two Portuguese attending MAPIC more recently, is growing stands, Sonae, which is a world leader in at an exponential rate. It was the focus this shopping centre development, design and year due to the rise of digital commerce and management, which has increased its business the shopping centre fever that has taken hold turnover in the management area in many of Chinese developers.” China, itself a retail centres in addition to promoting and property market giant, was represented at marketing shopping centre retail units.

MAPIC 2014 by two influential players in the industry – Wanda Group, an industry leader The other Portuguese company was in China, which plans to open 110 Wanda Wondering, a 3D design and animation Plazas in its national market by the end of company which was very well received, 2014 – and Jihua, which presented its broad attracted a lot of international interest and has portfolio of preferred sites for shopping and many projects in its portfolio. leisure to European retailers.

Immochan Portugal also had a presence on the company’s main international stand where it presented its latest shopping centre, Alegro Setúbal which was successfully opened only days before MAPIC.

Reflecting global trends, the market for Chinese retailer brands is becoming increasingly digitalised, and it is because of this massive growth in digital commerce that China could become one of the leaders in this sector. The United States plans to Various Portuguese architects were also at the create 758 new shopping centres by 2016, fair, looking for projects in the four corners of according to the “Global Shopping Centre

YEARS

the world, including teams from consultants such as JLL, C&W and CBRE presenting the excellent shopping centre brands in Portugal.

Development Report” by Cushman & Wakefield published in the spring.

During MAPIC, the developer American Management unveiled its American Dream project. Billed as the world’s largest shopping One of the conferences concentrating on centre, with a surface area of over 720,000 m², shopping centres, featured three international Marking the transition between past and this site is expected to attract 40 million directors in a roundtable debate: Laurent future, MAPIC focused on two leading visitors a year. Located 40 kilometres from Morel, CEO, Klépierre (France), Sandeep territories in the retail property sector: the Manhattan, this magnet of ‘retailtainment,’ Mathrani, Chief Executive Officer, General United States and China. “For its 20 which combines both business and leisure, Growth Properties Inc. (USA) and Klaus anniversary, MAPIC examined the changes in will include a ski slope, an ice rink, a cinema Striebich, Managing Director Leasing, ECE recent years in key national markets by complex, a Lego amusement park and no Projektmanagement GmbH & Co. KG highlighting two giants of commercial real fewer than 400 shops and restaurants.

(Germany). estate – the United States and China,” said Nathalie Depetro. “The United States has MAPIC also welcomed other major Another conference focusing on retail been represented at MAPIC since it first American developers, including General brands, featured Alain Afflelou, CEO, began, and has been both a pace-setter and a Growth Properties Inc., Thor Equities, ESRI Alain Afflelou (France) and Sohail Shaikh, leader in retail property and distribution for and Vornado Realty Trust.  44 | Property Investments

FOCUS ON THE UNITED STATES AND CHINA

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Maria Luís Albuquerque at the Portuguese Finance Minister at American Club of Lisbon CHRIS GRAEME | Photo Report

Portugal’s finance minister blames its Constitutional Court for failing to meet the Budget Deficit agreed with Brussels for 2014-15. Addressing over 200 business leaders at the American Club of Lisbon in November, Maria Luís Albuquerque said that rulings by the Constitutional Court had a negative impact on balancing the country’s books.

1. ANTÓNIO PEREIRA | General Manager, Sheraton Lisboa Hotel & SPA • BERNARDO FRAZÃo | U. S. Embassy Lisbon • JOHN SCOTT JOHNSON | President, American Club of Lisbon • MARIA LUIS ALBUQUERQUE | Minister of Finance • ANTÓNIO NETO DA SILVA | President, Portugal-USA Friendship Association • CAMILO LOURENÇO | Journalist 2. MARIA LUÍS ALBUQUERQUE | Portuguese Finance Minister 3. JOHN SCOTT JOHNSON | President, American Club of Lisbon • LUIS MAGALHÃES VASCONCELOS | Novo Banco 4. CARLOS PORTO | Lawyer • JOÃO TELLO GARCIA PULIDO | Engineer 5. ANNE TAYLOR | Executive Director, American Club of Lisbon 6 MANUEL RAMALHO | President, ICPT 7. MARIA PESTANA DE VASCONCELOS | Escola Superior João de Deus • ANTÓNIO PONCES DE CARVALHO | Escola Superior João de Deus 8. MARIANA ABRANTES DE SOUSA 46 | Property Investments

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Portuguese companies shine at Portuguese French Trophies 2014 CHRIS GRAEME | Photo Report

To foster commercial links between Portugal and France the Portuguese-French Chamber of Commerce and Industry organise a gala dinner at the Pestana Palace Hotel in Lisbon to honour companies that excelled in both markets in 2014.

1. BERNARD CHANTRELLE | President, FRENCH-PORTUGUESE CHAMBER OF COMMERCE AND INDUSTRY (CCILF) 2. JEAN FRANÇOIS BLAREL | French Ambassador to Portugal 3. JEAN CLAUDE HECHT | Winner of SME trophy, Mecondielle 4. FERNANDO LEITE | Lipor • DAVID CLAUDINO | Schneider Electric Portugal • FRANCISCO LORITE | Nominee for Sustainable Development Trophy - Neya Hotels • JORGE FARINHA | Winner of Sustainable Development Trophy, Companhia de Pescarias do Algarve 5. VIOLETA CIUREL • PAULO BRACONS | Sponsor Innovation Trophy, Axa Seguros • BERNARD CHANTRELLE | President, CCILF 6. CÉLINE RÉGNIER | Sponsor of Sustainable Development Trophy, Elis 7. BERNARDO ALEGRIA | Sponsor of Investment Trophy, Abreu Advogados • NUNO RIBEIRO | Winner of Export Trophy, Renault Cacia • NUNO SANTOS | Winner of Investment Trophy, GFI Portugal • SUSANA CHAVES | Winner of Investment Trophy, Altran Portugal • LUIS CAMPOS FERREIRA | Secretary of State for Foreign Affairs • BERNARD CHANTRELLE | President, CCILF 8. JOSÉ ALMEIDA | Nominee Innovation Trophy, Tecnospie | CARLOS FREIRE DE OLIVEIRA | Winner Innovation Trophy,, VentilAqua | 47

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British Ambassador Kirsty Hayes

BRITISH FOREIGN OFFICE OPENS RESOURCES HUB IN LISBON

B

CHRIS GRAEME | Interview

ritain’s new ambassador to Portugal, Kirsty Hayes, loves horse riding and has her horse stabled in Cascais. The ambassador competes in the UK, is interested in all things equestrian and is “dying to ride” the famous Lusitano breed.

She has had postings in Washington, Hong Kong and Sri Lanka, is married to Peter Hayes, formerly British High Commissioner there, and has two children.

With a wide experience of Foreign and Commonwealth organisations with responsibilities for the UK’s UN and Commonwealth policy, Kirsty Hayes is interested in the Commonwealth of Portuguese-speaking countries (CPLP) because of the parallels between the two organisations, and has been in involved in issues to do with sanctions and war crimes.

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“It was quite a broad ranging portfolio and was fascinating in that it gave me the opportunity to engage with very large numbers of countries across the world,” she says.

She worked very closely with Portugal when she was on the Security Council and remarks that Portugal has “very skilled diplomats.” “We share a lot of values with them and they brought with them a deep knowledge of the Portuguese-speaking world,” she adds.

“We’re expecting to work with Portugal on the Human Rights Council soon and with its long commitment to human rights Portugal will be a very valued member,” she continues.

Another area of cooperation between Portugal and the UK is the illness dementia with an awareness event planned before Christmas, sharing experience with the Portuguese about the UK Dementia Plan and organising outreach events with consular

The Foreign Office has also taken the decision to set up a foreign resources hub in Lisbon which is a sign of the confidence the Government has in the future of Portugal and its economy and the strength of human capital in Lisbon. services. “With the aging populations of both countries this is an issue that is touching more and more of us personally,” she reflects.

but are daunted from doing so by the language barrier and differences in legal systems. Obviously Portugal has a very special position because of its history, so there’s a lot of potential for UK companies to partner with Portuguese companies.

We’ve also had some experience with larger companies too, such as Linklaters, which are working from a Portuguese base but have a lot of work in Angola and Mozambique”.

Kirsty Hays points out that Portugal has always been “one of our most popular postings” because of quality of life and the shared history between the two countries, as well as the predominance of the Portuguese-speaking world – Brazil, Angola, Mozambique - which are all “very exciting a vibrant economies”.

UKRAINE The FCO is increasingly developing its Portugal specialists for multiple postings.

The former deputy ambassador in Lisbon, Joanna Kuensberg, is now the British High Commissioner to Mozambique and Alex Ellis, former ambassador to Portugal, is now the British Ambassador to Brazil.

“It is clear that Portugal, like Britain, has stood very firm in the face of completely unacceptable behaviour by Russia in the Ukraine. We can see that sanctions are already having a very real impact on the Russian economy”.

recently the horrific murder of David Haines. I think at a political level Portugal and the UK have both shown a deep commitment to addressing and eradicating this threat, and we will continue to work with the Portuguese Government on that. On a practical day-to-day level our cooperation has always been excellent with the Portuguese authorities”.

MADELEINE MCCANN “We continue to be concerned about this case but it has been very much a police to police matter”.

SUSTAINABLE ENERGY

This will remain important between the two countries and Portugal has a considerable amount of expertise in EMERGING MARKETS this area. Portuguese investment in the “Ambassador Jill Gallard was here during UK will amount to nearly €4Bn and the toughest years of the financial crisis, I “Brazil, China and India will be important provide up to 4,000 jobs in the UK and am arriving at a time when both economies for the UK. We’ve increased the size of sustainable energy is a major focus. are beginning to see real recovery with our diplomatic network by opening more impressive growth in the UK (3.2%). offices in these countries and boosting Pharmaceuticals too has been interesting staff numbers”. including a project in the Alentejo. A The Foreign Office has also taken the British company Macfarlan Smith is decision to set up a foreign resources EU, UK, PORTUGAL & US growing poppies for opiate drugs through hub in Lisbon which is a sign of the local farmers which is a really good way confidence the Government has in the “The European markets will continue to of enhancing their livelihoods. future of Portugal and its economy and be very important. Its impressive how the strength of human capital in Lisbon. strong trade links between Portugal and BEST OF BRITISH the UK have continued to be despite the “We’ve always recruited really brilliant crisis. There’s potential for more openness We’re keen on our Best of British staff, we’ve just hired new people which between the EU and other economies campaign. In October and November the will increase our team to 15. The hub will and one of the UK and Portugal’s campaign comes to El Corte Ingles where cover our embassies in Europe, Russia priorities has been trying to conclude we’ll be showcasing the best of British and Central Asia,” she explains. the Transatlantic Trade and Investment food and drink, literature, fashion and Partnership (TTIP) between the EU and culture, and will involve some interesting Portugal as a platform for AngloUSA. Portugal and the UK, as western visitors from the UK. Portuguese business in Brazil, Angola and European open economies, have a lot to Mozambique benefit from this”.

Kirsty Hays concludes that although Portugal is a posting with an enviable “This has been a really important facet IS lifestyle, she’s certainly got her work cut of our trade and investment work here. out for her, but will find time to explore We have a lot of UK SMEs who are “It’s been a really shocking sequence of Lisbon and Portugal with her family in interested in accessing these markets events recently in Iraq and Syria, most her free time. | 49

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Miguel Macedo at International Club of Portugal

Portugal’s Security Policy CHRIS GRAEME | Photo Report

Portugal’s Minister of Internal Administration, Miguel Macedo, announced that as part of the Government’s police shake-up, Lisbon would get 280 extra police patrolling the capital’s streets. The minister, who soon after resigned over the ‘Golden Visa’ scandal, addressed business leaders at an International Club of Portugal lunch at the Hotel Double Tree by Hilton Lisbon – Fontana Park Lisboa.

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1. MIGUEL MACEDO • MANUEL RAMALHO 2. CHOI MAN HIN • FONG MIU LENG • KAIME LOPES • ANTÓNIO GONÇALVES 3. RENATO VARRIALE | Ambassador 4. MARCEL DE BOTTON MÁRIO PATINHA ANTÃO 5. GONÇALO COELHO DE SOUSA • ANTERO LUÍS 6. HENRIQUE DE SÁ NOGUEIRA 7. ALDA COSTA • TANYA SEARS 8. FRANCISCO ALMEIDA LEITE 9. JOHN OLSON 10. CHEN YUXIN 11. VÍTOR POÇAS 12. JOSÉ LOPES DE ARAÚJO 13. PAULO FREITAS LOPES 14. RAMÓN FONT | 51

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Mercedes-Benz celebrates 25 years in

Portugal

Photos by kind permition

Mercedes-Benz celebrates its 25th anniversary in Portugal with its clients, business partners and staff. The President of Mercedes-Benz Portugal, Joerg Heinermann, Vice-President of Sales and Marketing Europe, Markus Breitschwerdt, President of Sintra Municipal Council, Bas铆lio da Horta, the German ambassador to Portugal, Ulrich Brandenburg and the Portuguese Minister of the Economy, Ant贸nio Pires de Lima were among the illustrious guests.

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1. JOERG HEINERMANN | President, Mercedes-Benz Portugal 2. MARKUS BREITSCHWERDT | Vice President of Sales & Marketing, Mercedes-Benz Europe 3. BASÍLIO HORTA | Mayor, Sintra Council • ANTÓNIO PIRES DE LIMA | Minister of Economy 4. ANTÓNIO PIRES DE LIMA | Minister of Economy 5. BASÍLIO HORTA | Mayor, Sintra Council • MARKUS BREITSCHWERDT | Vice President of Sales & Marketing, Mercedes-Benz Europe 6. OFFER MERCEDES-BENZ VITO FOR THE PORTUGUESE INSTITUTION CECD 7. MARKUS BREITSCHWERDT | Vice President of Sales & Marketing, Mercedes-Benz Europe • ANTÓNIO PIRES DE LIMA | Minister of Economy | 53

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Luxury & Style CLS 350 CDI Shooting Break

The second generation of this successful model from Mercedes, the CLS Shooting Brake had been totally restyled at the end of 2014. Its exterior look was made more aggressive, with its LED lights both at the front and the back.Inside, the passenger compartment has been improved significantly, there’s a new dashboard design for this mode which features an excellent 3.0l 6 cylinder engine with 265 HP and a 9G Tronic automatic gearbox, which can be managed according to the style of driving. Petrol consumption has been reduced, so that on

a journey involving mixed driving on urban roads and motorways, an average consumption of 8.5Lts/100Km is achieved. The silence and comfort when driving are remarkable even with all the technological innovations included in the restyling of the CLS, so that it can be driven on the road without needing to correct the direction on the carriageway but has enough power to thrust itself out of tight corners.

Price: from €88,100

The look of quality C220 CDi BlueTec Sedan/Station

The fifth generation of Class C Mercedes is so stunning it could stop traffic and leave one wondering if we’re looking at a small Class S sedan version.

It’s not only the new style of the Class C but an upgrade in sophistication, technology and aerodynamics which are all apparent in this new model. Larger than the previous generation but lighter, it also boasts greater interior space.

Everything has been thought out in detail with sound insulation, lightness of steering, reduced petrol consumption, pneumatic suspension option, agility function which means one can customise the C 220 CDI to your style of driving.

Inside passengers are offered enormous space, while the car is packed with equipment, in an environment that exudes quality and good taste. The well-known 2.1 litre engine, here in the 170 HP version, continues to be an excellent option for consumers and the smoothness of the ride on the motorway.

In the new Class C, the baggage space has been significantly improved, in the case of the Estate version the access to the baggage section is electric and much easier to use.

Price: from €49,890 (sedan) Price: from €49,800 (station) 5454| Property | Investments PropertyInvestments Investments

An intriguing concept GLA 220 CDI 4 Matic

The new format born from the Mercedes Class A family of cars, the GLA, has won over a new public with this fantastic cross-over.

With a design that leaves no one who sees this vehicle indifferent, the GLA can cope admirably on all kinds of roads and tracks off the motorway without putting either comfort, safety or fun at risk. This motor with the tried and tested 220 CDI and 170 HP, offers a mixed consumption in the case of the 6Lts/100 kms which is one of the strong arguments in favour of this model which features an excellent 7G automatic gear box.

The driver’s seat position is excellent, not only because of its height compared to other models, but also the interior space that this GLA boasts. Four adults can travel anywhere with a high degree of comfort with quality furnishings and an extremely roomy baggage compartment.

Price: from €50,000

Versatile and roomy B200 CDI Sports Tourer

The all-new class B from Mercedes, with its huge interior space where 4 adults and their respective baggage can travel comfortably, has substantially elevated the quality of the finishings and the list of optional extras. On the outside its restyling is discreet, with some small modifications, but inside the dashboard had been completely altered.

The Mercedes 200 CDI’s excellent 2143 CC 4 cylinder engine, which boasts 136 HP enables a very pleasant performance, with a 6 speed manual gear box or the recommended option of a 7G automatic gear box. This model easily reaches 100Km/h in just 9.3 seconds and a

maximum speed of 2010 Km/h, and while not being a sports car, its performance is fairly acceptable. As to petrol consumption, on a journey involving a mixture of motorways and city roads, it doesn’t go beyond 6Lts/100Kms. Price: from €36,700

Space and style V 250 BlueTEC Avantgarde

With the new Class V, the Mercedes-Benz redefines the monovolume segment, presenting a new dimension of space, comfort and style. It represents a benchmark in design and innovation technology.

With room for up to eight passengers combined with space, functionality and class, the high level of comfort in the interior and safety and support systems are pioneering in this segment. With these attributes, this new Mercedes-Benz model is the ideal vehicle for those who want a spacious car but don’t want to forgo comfort and style on a day-to-day basis. The new Class V presents the new 250 BlueTEC four cylinder engine (2.143CC), with an advanced two-phase turbo compression system, a power of 140 kW (190 HP) and maximum binary of 440 Nm. At the same time, the top model provides an extremely comfortable journey with a high degree of soundproofing in the passenger compartment.

Price: from €54,880 | 55

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Own distinct design 435i cabrio

The new BMW 4 Series Convertible heralds a new era in the premium mid-size range of open cars offered by BMW, while setting new standards in terms of dynamics, elegance and extraordinary driving pleasure – with the top up or down.

The interior of this model presents a stylish fusion of sporty allure, elegance and exclusivity.

All of the controls are arranged ergonomically

around the driver to provide optimum access to all functions. The doors are designed so that all the lines converge towards the rear, and bright colour combinations featuring a two-tone effect for the door and side panels contribute in combination with the hardtop cover to the “boat deck” look. This wraparound interior design provides for a seating ensemble that allows all passengers to share the open-sky driving experience.

The amazing BMW 435i Convertible with an in-line six-cylinder petrol engine, with 306 hp and the eight-speed Sports automatic transmission give you a lot of fun. These state-of-the-art engine imbue the 435i with outstanding acceleration and elasticity while intelligently reducing fuel consumption in compliance with the EU6 standard.

Price: from 71.394 €

The premium compact 225d coupé

The specific vehicle concept behind the BMW 2 Series Coupe – unique in its segment – is faithfully reflected in its body design. The two-door model is first and foremost a Coupe from the BMW brand, and the design features that identify a member of this special breed – a three-box body with clearly defined boot and low-slung silhouette, a long bonnet, doors with frameless windows and 56 | Investments Property Investments

a dynamically stretched roofline flowing smoothly into the rear end – are carried over into a compact model with greater enthusiasm and intent than ever.

The ultra-sporty driving characteristics of the BMW 2 Series Coupe – generated by a hand-picked selection of engines and chassis technology tuned to make the perfect pairing – are thus unambiguously expressed

in the design of the exterior. All engines can be optionally combined with the 8-speed Steptronic transmission, which is included as standard in the most powerful model, the BMW 225d Coupe, with 218 HP and just 6.3 sec from 0 to 100 km/h and a limit speed of 242 Km/h Price: from 45.900€

BMW I3

Sustainable mobility

The BMW i3 is ushering in a new era of electric mobility. And since the market launch of the world’s first premium car conceived from the outset to run purely on electric power, all products and services included in the 360° ELECTRIC programme have also been available to customers. The all-inclusive concept is unique worldwide and covers all requirements in every area of electric driving. It includes home charging, mid-journey charging, keeping drivers on the move through flexible mobility options, assistance services in the form of special ConnectedDrive services, maintenance and repair services, as well as breakdown assistance.

With an electric range of 130 to 160 kilometres (approx. 80 to 100 miles), the BMW i3 is able to fully meet most everyday driving requirements.

For longer stretches, or if greater carrying capacity is required, the BMW i3 driver can simply switch vehicles and, for example, use a BMW 3 Series Touring for a weekend trip with the family or a BMW X model for a winter break.

Price: since 38.250 €

420d Gran Coupe

Sleek look

The new BMW 4 Series Gran Coupé combines the sleek look of a twodoor coupé with the functionality provided by four-doors and expansive spaciousness, including a wide-access luggage compartment.

This extended roofline highlights the elegance and sophistication of the BMW 4 Series Gran Coupé, while setting new standards for aesthetics in the midsize class that also have decisive practical advantages. The interior represents elegance and sophistication combined with outstanding ergonomics. All controls are configured to give the driver optimal access to them.

4 Series Gran Coupé. The BMW 420d Gran Coupé (fuel consumption urban/extra-urban/combined: 5.8/4.1/4.7 l/100 km; combined CO2 They create a sense of unity encompassing the front and back seats, emission: 124 g/km) delivers 135 kW/184 hp and sprints from 0 to 100 as do the seamless transitions formed by the interior door panels. km/h in only 7.5 seconds .

Extraordinary material combinations and unrivalled quality of workmanship define the premium ambience on board the new BMW Price: from 47.965 €

X4 Xdrive 35i

Excellent mid-size

The new BMW X4 blends the hallmark features of the successful BMW X family with the sporting elegance of a classical coupe, and introduces the unique Sports Activity Coupe concept to the premium mid-size segment. Its dynamic pedigree is underlined by a wide range of cuttingedge high-performance engines, the xDrive all-wheel-drive system and an exclusive spread of standard equipment features such as variable sport steering, Performance Control and a sports leather steering wheel with gearshift paddles. the BMW X4 xDrive35i (fuel consumption urban/extra-urban/ combined: 10.7/6.9/8.3 l/100 km [26.4/40.9/34.0 mpg imp]; CO2 emissions combined: 193 g/km) develops an outstanding 225 kW/306 hp and peak torque of 400 Nm (295 lb-ft). The BMW X4 xDrive35i requires just 5.5 seconds to sprint from 0 to 100 km/h .

Price : since 77.100 € | 57 | 57

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The A45 AMG pure adrenaline

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n presenting the Class A in the AMG sports version, this car boasts the most powerful 2.0 L engine on the market.

With 360 HP, equipped with 4Matic integral traction and an extremely rapid 7G automatic gearbox, makes this compact Mercedes achieve 100 Km/h in just 4.6 seconds, with its maximum speed electronically limited to 250Km/h.

On taking a test drive I have to say that I hadn’t been so surprised at a car’s performance for some time.

Of course miracles don’t exist and petrol consumption soars on acceleration, but it provides a unique rush of adrenaline and one can easily achieve an average speed in the case of the 9lts with a much more conservative drive, which isn’t easy for those who love driving.

In its outside appearance, the differences per model, with the AMG silhouette slightly or hardly different - just the inscriptions Turbo AMG on the mud guards – makes you wonder what all the fuss is about, until the engine is turned on.

The AMG sports escape system ensures that characteristic hum that leaves no one indifferent. Inside, the steering wheel and mini gear stick on the automatic gearbox make all the difference, giving it a sporting touch.

Comfort may not be its strong point, but the sheer fun it offers makes you quickly forget all that. On feeling the powerful 2.0 growl, you don’t let go of the leather covered wheel, you can feel the power. In sports driving, the A45 hugs the road, always keeping to the defined direction and the speed in which it leaves a bend is impressive.

5858| Property Investments | Property Investments

Price: from €59,000

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