Issue Nº 4
:: October 2012
Investments
• Portugal on a precipice? • Where are the investors? • Alpha Ladies Espace and Explorer • Lapa 111 • SIL 2012
A golden opportunity... Whether buying or holidaying, Dunas Douradas is one of the most alluring Algarve Resorts
Con tACt no u
Wr lIm e ou s I t r e d oFF er o speCIA BeA n eXClu l C ApA H CluB sIve rtm ent s.
INDEX
04 • Message from the director 06 • Real Estate Market – Will Portuguese assets recover? 14 • SIL 2012 – Finding credible solutions in difficult times 16 • Standing on a precipice – Are we facing the end of the 3th Republic? 20 • L’AND Vineyards - Luxury in the Alentejo landscape 22 • Lapa 111 – Residential urban chic 26 • Mary Kay – Quality in every detail 28 • Intrum Justitia – A debt recovery service you can rely on 31 • Special Feature: Alpha Ladies - Successful women in Portugal 38 • Photo report – António Borges at the American Club 40 • Broadway Malyan – Master planners with a global track record 42 • Urban regeneration – The dynamo for the real estate market 44 • Photo report – Rui Rio at the ICPT 46 • Property investment - Opportunities galore for those with cash 48 • Portuguese assets – When opportunity knocks 50 • Prime Yield - Lusophony business 52 • Photo report – How to get foreign investment back? 56 • Photo report – Pedro Mota Soares at the ICPT 58 • Espace and Explorer – Providing unique office opportunities in Lisbon 60 • Networking – Creating Social Capital value through affiliations
Close your eyes. Listen. Hear the gentle breaking of the waves on the sandy shoreline. Feel the warmth of the sun flooding into your bedroom. Smell the ocean. Welcome to your holiday home at Dunas Douradas Beach Club, a privileged beach-front location within the Golden Triangle of the Algarve, set amongst 32 hectares of pine forest and flanked by the lush green golf courses of the Vale do Lobo and Quinta do Lago resorts.
Director | Luis Figueiredo Trindade • lft@partnersinbusiness.info Commercial | Catarina Meneses • catarina.meneses@partnersinbusiness.info Editor | Chris Graeme • chris@partnersinbusiness.info design CONCEPTION | André Freire • David Martins DESIGN DEVELOPMENT | Alice L.C ProofReading | Isabel Coelho Special Contributors | Chris Graeme • David Sampson • davidsampson@partnersinbusiness.info Opinions | Miguel Marques dos Santos • Valter Alcoforado Barreira Photography | Chris Graeme • Credits: Paulo Muge
Enjoy yourself in and around the clubhouse with its gym, indoor and outdoor pools, Restaurants, Bar and TV Lounge. Whatever you do, do it all in complete comfort.
A few properties are still available for sale, should you not be able to resist after a holiday with us!
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 copes at the national and international trade fairs, events of the Chambers of Commerce. Investments | Issue Nº. 4 – October 2012 Published bi-monthly and owned by Bravespiral – Comunicação, Unip. Lda. Av. Fontes Pereira de Melo, n.º 6 - 4 Andar | 1069-106 Lisboa | 21 79 700 29
RESIDENTIAL
Registo na ERC nº 126184 | Annual subscription fee: 25 euros / Bi-monthly BEST DEVELOPMENT EUROPE
www.vivainportugal.com
Dunas Douradas Beach Club by Dunas Douradas Beach Club
www.ddbc.pt/gb
Best development europe
22407_ATELIER DO SUL
Holiday or Property enquiries: Dunas Douradas Beach Club, Algarve, Portugal · Tel: +351 289 351 300
Reproduction of material in this magazine in any form is prohibited without prior written permission from Partners in Business team. The view expressed in this magazine is not necessarily those of the publisher.
|5
[ EDITOR IAL ]
INVESTMENTS
The lack of Confidence has PARALYSED our market Luis Figueiredo trindade | Director, Partners in Business
We have outstanding investment products in a wide variety of areas, the logistics of being a doorway onto Europe due to our geographic situation, high-quality residential products and offices in the main cities that will generate medium to long-term gains.
T
he lack of trust and the absence of liquidity to finance real estate promotion have created a situation of unattractive apathy in the Portuguese market and a slow recovery. In the current economic ambiguities, tenants are reconsidering the expansion of their companies resulting, therefore, in a stagnation in demand, and in the residential segment the rents are necessarily low so, offering yields that are far from attractive. We have outstanding investment products in a wide variety of areas, the logistics of being a doorway onto Europe due to our geographic situation, high-quality residential products and offices in the main cities that will generate medium to long-term gains. Not to mention the residential tourism area, where we have a high-quality products, which have not yet receive the right political vision to support this sleeping industry and to recognize our country as a destination of excellence. Institutional investors are looking for safe havens showing with highsecurity returns, transparency and fiscal and legal stability. When Portugal is mentioned, the answer is, not now. We are far from meeting the required conditions. We have to effectively reverse this situation and to avoid keep making the same mistakes. Unfortunately, the displacement of many international companies, now centralising their operations in Madrid, having only small supporting offices in Lisbon and Porto, was also overlooked and we have to create tax benefits to be able to recapture those companies that generate employment and support the growth of our economy.
The latest, highly innovative city guide that captures
I do hope that the strong activity of private equity management companies can rebalance, deleverage and adjust our market, strongly focusing on sustainable projects that are currently at a standstill in the hands of the banks because of a lack of liquidity !
Vict贸ria World Travel (VWT) Guides may be acquired online at amazon.co.uk, fnac.pt, bookhouse.pt, bertrand.pt or at Portugal`s leading bookshops. www.victoriaworldtravel.com
Travel Better & Wisely 6 | Investments
[ SPECIAL REP ORT ]
THE PORTUGUESE
Real Estate market
“
What has caused the complete absence of buyers is the risk of Portugal leaving the euro and of buyers finding that their rental income is arriving in escudos rather than euros.
DAVID sampon | Special Contributor, Partners in Business
The level of activity in the market hit a new low in the first half of 2012 but there are prospects for recovery in the second half of the year. Gone are the days when Portuguese real estate assets were seen as an attractive alternative to investment in more established locations. German funds such as those managed by CGI (Commerzbank) and UK Funds managed by Rockspring and British Land did well at the beginning of the century by buying modern Portuguese shopping centres on good yields, and they also entered the market for prime office properties. The funds showed very positive returns as yields fell and asset values rose, but in the last five years total foreign investment in Portuguese property has fallen from a high of more than €500 million in 2007 to almost nil in the first half of 2012. Even the Portuguese economy going into recession would not have caused such a flight from local assets as some foreign funds would still be tempted to pick up good quality high yielding properties. What has caused the complete absence of buyers is the risk of Portugal leaving the euro and of buyers finding that their 8 | Investments
rental income is arriving in escudos rather than euros. No one could easily factor the exchange risk into their investment calculations and those that could, such as the vulture funds in search of cheap purchases, could not find owners willing to sell at low enough prices. Meanwhile the local banks have been committed to maintaining property values near to previous levels and have not been willing to let assets go cheaply. They fear that a general fall in property values would expose the fragility of their mortgage books. The result has been an impasse which is similar to the stagnation in the Japanese market since its property boom ran out. Whereas in the USA the banks have accepted their real estate losses and been recapitalised, the banks in Portugal and Spain have been unwilling to recognise the extent of their losses and have recapitalised too little and too late. Despite recent increases in bank capital few international investors are confident
that the banks have made adequate allowances for their property losses and are now sufficiently capitalised.
Interest from private Spanish investors
What little foreign interest there is in Portuguese property currently comes from private family offices based in Spain or Brazil. Private investors from Spain are more able to put a value on Portuguese property let to international companies and they can compare yields on similar properties in Lisbon and Madrid. Their purchases over the last two years have included the BBVA head office building on the Avenida da Liberdade in Lisbon and the new Microsoft offices in the Parque das Nações. The largest local investment deal in Portugal in the first half of the year was the sale by the VIP real estate fund of the Rua Castilho 5 office building to the Montepio bank for €32.7 million. The building was originally the headquarters
of the Banco Fonsecas e Burnay and had been owned by the fund since 1988. When Fonsecas moved out the fund refurbished the building and converted it into small office suites. It was one of its prime assets and one of the few which could be sold at or near to its recent valuations. The fund needed the liquidity and used €20 million to repay debt. The sale is also an indication of the financial pressure generally on local open funds which have suffered from unit redemptions and tenant bankruptcies. Fundimo, the open fund managed by the Caixa Group, suffered 70 million euros of redemptions over recent years and is in no position to make new investments.
average of valuations by two different valuers. One valued the retail park at €12.5 million and the other at €25.4 million. In 2006 the Portugal Retail Europark Fund bought retail parks in Aveiro and Portimao for €31.5 million and €35.7 million. They are now valued at €18.7 million and €25 million and again these values are the result of averaging two different valuations which vary by 100%. One valuer produced valuations of €12.5 million and €19.9 million whereas the other valued the retail parks at €24.8 million and €30.1 million. The message is clear. Local valuers are still making valuations as if the world owed Portugal a living and there was a The Emperor has no clothes functioning local real estate investment Valuers who are attuned to the The chronic state of the investment market market. international market and to the prices can best be seen through the published at which investment properties might valuations of the local real estate funds reasonably be bought and sold have through which international funds allowed in their valuations for a 50% drop invested in Portuguese property. The units in values from the top of the market. in the parent funds are traded in the UK and the managers need up to date, realistic house of cards valuations of the underlying properties in A quick look at the site of the CMVM, the Portugal in order to arrive at a fair price Portuguese financial regulatory authority between buyers and sellers of the units. which oversees all investment funds, In 2008 the Viriatus fund managed by shows that there are currently nearly Rockspring bought the Santarem retail 250 local real estate funds many of which park for €38 million. In 2010 the property own thousands of properties. The CMVM was valued at €28 million and this year requires that each property be valued regularly by two different valuers and that it is valued at €19 million, which was the
”
the funds adjust the value of each property accordingly. Every month the managers of each fund have to submit a statement to the CMVM detailing each property the fund owns, the details of the two valuations and other financial figures. A whole army of qualified valuers works for the fund managers and these valuers depend for their livelihood on the banks which own the management companies. Even more people work on completing the monthly paperwork for the CMVM and on analysing it. Yet the whole process is a charade. Despite a fall in property values of enormous proportions over the last five years, no valuer dare reduce the value of a fund’s property. The valuations they produce are not even of academic interest. Such valuations bear no relationship whatever to any market price anyone might be willing to pay for a property. Two or three years ago the CMVM floated the idea of increasing the frequency of valuations and of introducing rules to make valuers less dependent on the banks but it has quietly dropped these proposals in the current crisis. In only one respect has the CMVM seen the light of reality. It has given up its prestigious and quite unnecessarily expensive offices on the Avenida da Liberdade and moved to a state owned building in Rua Laura Alves. The money it wasted on its old building is gone but at least it is now cutting its suit according to its cloth. |9
[ SPECIAL REP ORT ] YIELDS ON PORTUGUESE PROPERTY 2005 TO 2012
Yields (%)
9,5
9,00
9,0 8,5 8,0 7,5 7,0 6,5 6,0 5,5 5,0
8,50 7,50
Period
SOURCE: JONES LANG LASALLE
EUROPA
Future prospects
Local agents think that the worst of the market is now over. Yields have risen and private buyers are reported to be in negotiations to buy prime assets. Over the spring and summer, with the Spanish banking crisis growing by the day, the Banco Espirito Santo succeeded in raising the €1,010 million of extra capital which it needed without recourse to government money. It got its money from its existing shareholders and from new investors following a roadshow which took in 10 European cities from London to Milan and involved presentations to more than 150 investors. Perhaps BES will now be willing to let assets go at more realistic prices and perhaps the BES investors know something we don’t. It may even be the right time to buy Portuguese bank shares and Portuguese properties. 10 | Investments
Shopping Centres (net yield) Retail Parks (net yield) Hight stret retail (gross Yield) Industrial (Gross)
2005 2007 2009 2011 T2 2012
ARTS
Offices (gross yield)
[ PA RT NE R S NEWS ]
Conrad Hotels & Resorts
“Morabeza Land”
ANOTHER PRIMARK STORE OPENS IN PORTUGAL
Conrad Hotels & Resorts invites to experience The Luxury of being yourself in an inspiring scenery
Launches the exclusive Conrad Algarve
The Irish clothes retail chain has opened another store in Portugal. The new shop was opened on August in Fórum Coimbra. This is the brand’s 6th store of the brand, which boasts over 2,200m2.
Situated in the prestigious Quinta do Lago region, in the Algarve. Aimed at the current experienced and sophisticated traveller, this contemporary hotel of 154 rooms and suites was decorated by Miguel Câncio Martins, and is the most recent asset in the Conrad portofolio, offering the opportunity for the guests of enjoying a totally deluxe service. Now the lavishly decorated Conrad Spa boast a total of 6 restaurants and bars and has a kid`s club, the “Little C Palace”. For events and meetings there is a wide range of flexible spaces available.
BOLLINGER exclusive edition Celebrating the 50th anniversary of 007
The global real estate consulting Cushman & Wakefield (C&W)once again has acted as marketing and letting agent. The consulting company has joined forces with the Irish brand looking and negotiating for units since the beginning of its activities in Portugal, in 2009.
The world biggest parade of smarts
SMART times attracted 1.594 fans to Belgium from 27 countries From August 23rd to 26th, 2012, attracted 1.594 fans to Belgian from 27 countries went to Antwerp to participate in the largest world concentration of the Smart community, having established a new world record with the longest smart parade ever made. All CO2 emissions
that were produced during the four days event will be offset through compensate through reforestation. Together with the international non-profit organisation WeForest, smart will plant 5.200 trees in Kenya. Next year, smart times gettogether will tale place in Luzern.
Chamartín IMOBILIARIA A leader in the Lisbon office rental market Chamartín Real State, through its business area Corporate Solutions, has just completed a rental agreement with the Portuguese branch office of Telefónica
“MORABEZA LAND” The favourite champagne of secret agent 007 Secret Agent releases a limited edition of its La Grand Année 2002, which also commemorates its 40-years relationship between Bollinger and James Bond, the longest standing partnership in the film industry. Bollinger, one of the most famous French champagne companies, has just released an exclusive edition of Bollinger La Grand Année 2002, specially designed to celebrate the 50th anniversary of the Secret Agent James Bond. 12 | Investments
Starting from materials gathered from her Cape Verde friend, Luis António Faria, Suzana Abreu wrote the book to publicise the history and culture of a wonderful country: Cape Verde. Through its pages we briefly travel through its history from the Discoveries to the present days: Population, Slavery, Miscegenation, Slavery Society Disaggregation, Language and Literature, Drought, Hunger and Emigration, Identity and Culture, Independence and the New Ways of present times. One of the last parts addresses some men and women who have built or build the “Nôs Terra, Nôs Gente”, while another part is a compilation of landmarks for those wishing to get briefly acquainted with its history. Cape Verde is much more than its fabulous beaches and stunning seabed: it has fascinating mountains, a very rich culture and a struggling people who, with a great deal of effort, has written five centuries of History and who cannot be forgotten.
The Spot Services, that will be based in the building Tejo Offices. This business had the partnership of the mediation company Montrigues.
Sonae Sierra
Signs three new service provision contracts in Algeria Sierra Cevital, a partnership between Sonae Sierra and Cevital to provide management services to the Argelian shopping centres sector, has just signed three new contracts to provide sales marketing and asset management services together with Immobis (Cevital subsidiary for the real estate business). The Shopping Centres to which Sierra Cevital will provide sales marketing services are Uno Shopping
Centre Mostaganem, Uno Shopping Centre Ain Defla and Uno Shopping Centre Bouira. Together, they represent a total Gross Leasable Area (GLA) of 40.390 m2, 92 shops, including 22 restaurants and 2.700 parking spaces. Therefore Sierra Cevital will contribute with its experience to serve those new centres whose opening is slated for the end of 2012 and beginning of 2013. | 13
[ PA RT NE R S NEWS ]
Jones Lang laSalle sets up LxClinic dental clinic at Amoreiras Plaza
Lisbon, September 11th, 2012 – The Office Agency Department of Jones Lang LaSalle has completed a rental operation involving an area of 734m² and the outcome of which will be the development of a new dental clinic, the LxClinic Oral Care Center, in Amoreiras Plaza building.
CUSHMAN & WAKEFIELD the best real estate consulting company in Portugal in 2012 – Euromoney Real
Apart from this important distinction, C&W came first place in the ranking of all real estate categories – valuations, brokerage and research.
The consulting company acted on behalf of the building owner, the Ponte Gaea Amoreira, to close to business.
The annual awards are voted on real estate and finance professionals from the entire world through the website of the economic-financial international magazine Euromoney.
B. PRIME &TAGUSPARK sign a partnership
Taguspark which is currently undergoing a modernisation and refurbishment process of its central area within a project that represents an investment of 14 million Euros has selected the real state consulting company B. Prime to be its exclusive partner to commercialize the Quality Buildings. This scientific and technology park, that has a unique synergy between the academic world and the corporate market, 14 | Investments
hosting important companies from both sectors, such as the information, research and development of PT, MilleniumBCP, BES, Technoedif, Sellbytel, Tecmic, Convex, Miniclip, a department of Nokia-Siemens, Social Security Institute of Systems, Institute of Welding and Quality, a department of “Instituto Superior Técnico”, Unniversity “Aberta” and a department of Taguslip.
[ BUSINE SS INT E RV IEW ]
“ Another first is that the SIL 2012 Awards has
enjoyed the largest number of applicants ever registered, more than 80 projects... paulo sousa | President of the Organizing Committee of sil 2012
”
SIL 2012 — Portuguese Real Estate Fair
Creative search for solutions in challenging business times LUÍS FIGUEIREDO | Interview
In the current economic climate, especially regarding real estate, SIL 2012 is creating many expectations, as being the most relevant Portuguese event for this sector of the economy. Chairman Paulo Sousa’s statements, specifically targeted internationalisation is one of the main trends that will be present at SIL 2012.
Which are the expected innovations in SIL 2012? Is there any guest country?
Presently, the real state business has a new vision as consequence of its opening to the external market. Accordingly, SIL 2012 came up with a set of initiatives focusing on the international investors and strongly targeting the Angolan, Brazilian and French markets, creating a Foreigner Investors Club. On a first business round in partnership with SILOP, where we bring several investors from the Portuguese speaking countries, a protocol with APEMIP (Portuguese Association of Real State Brokerage Professionals and Companies) and ISSNPI (French Real State Union) to associate both markets. Several initiatives of selling and renting opportunities, introducing alternatives to the current models will be presented to the visitors, benefiting from Intercasa (International Fair of Global Solutions and Concepts on Decoration) supplementary effect to attract large affluence. Another first is that the SIL 2012 Awards has enjoyed the largest number of applicants ever registered, more than 80 projects.
12th, the Annual APEMIP Seminar on “Portuguese Real Estate in the solution of the Crisis”.
Are we having this year the largest Real Estate Auction of Portugal? Is it expected the same success of past years? And concerning the Renting Stock Market which are the expectations?
Of course, every year we are successful. There will be an hourly auction initiative that it will be enough to subscribe and follow the auction through the Internet, being able to make a bid for any product. The Renting Stock Market is very positive due to current market evolution and generally there is a great demand. We will have a richer offer from the promoters in terms of prices, typologies and product quality.
SIL is becoming international through its presence in Mozambique, Angola, Brazil and, recently, in France (Paris).Which is the return that Portuguese promoters and companies have been receiving?
A strong appeal for real state investment was identified in Mozambique and France, since it is considered as a refuge and safe industry. There is a strong demand of specific products from Portuguese descendants to buy, to It arises from the internationalization actions of AIP (Portuguese Industrial Association), with the planned presence subsequently rent, especially in what concerns the main in Mozambique, France, Angola and Morocco. To bring closer cities. CGD bank has done a great job in France by its dynamism and communication with the community of the national companies searching for new markets, as well as Portuguese descendants. getting investors to come to Portugal and, to introduce the exhibitors who are holding actual specific projects, in SIL 2012.
Can you tell us about the SIL Investors Club and which is the mission of the reserved space on their behalf?
Which are the main topics, which are dedicated to the present economic and social environment, to be addressed in SIL 2012 conference cycle?
The main subjects will be Rehabilitation, Renting and Internationalization. In partnership with Space Architecture we will have Urban Challenges 12 on the 9th, Conference on Energy Rehabilitation together with ADENE (Agency for Energy) and the SIL 2012 Award dinner on the 10th, To Invest in Brazil, on the 11th, with IV support, and on the 16 | Investments
Is Portugal an investment destination for those countries? Definetely yes. The investment indicator is the number of visits to our country, the characteristics of the stay and the local expenditure. In terms of the French the number of visits has increased considerably as well as their local consumption, therefore a bigger interest exists. Later they become investors. For reasons of the international situation, it is harder to capture institutional investment, but I am certain that we will be again a country of interest due to our legislation and security, together with the path that we are following.
| 17
[ PARTNERS SPECIAL FEATURE ]
Is Portugal on the
Brink? Although abroad Portugal has been given five stars by the IMF and Brussels for being a good pupil, at home the praise could prove a pyrrhic victory for the PSD/CDS coalition government. Chris Graeme reports.
Because at the same time the country, which is currently the poorest in Western Europe, looks like being dangerously close to the edge. The question is on the edge of what? And how the next few months play out could be a crucial test for survival for the current Pedro Passos Coelho/Paulo Portas centre-right wing coalition which, along with its leaders and the Portuguese president, Aníbal Cavaco Silva, has become a target for universal hate across all classes of Portuguese society. The first warning shot across the bows came on Saturday, September 15th , when literally hundreds of thousands took to the streets up and down the country in what was largely a peaceful demonstration to send a clear message to the Portuguese government and establishment that enough was enough. What was interesting about the march was that it was not orchestrated by trouble-making unions and lefties, but was a spontaneous outpouring of national grievance from all levels of society that the people’s patience had run out. That was followed up on Saturday 29th September by a gathering of admittedly union-organised students, public sector workers, pensioners, left-wing supporters and the unemployed who filled the capital’s Terreiro do Paço square on the Lisbon waterfront to demand the dismissal of the government and a General Strike slated for October. This magazine has always argued that the Government’s austerity measures are, overall, 18 | Investments
If one talks to movers and shakers in the business and investment world things in Portugal are seen as going extraordinarily well, better than most of the population think.
to rise to a challenge and overcome seemingly insurmountable problems against all the odds.
Chris Graeme | Editor
It is one of life’s ironies that Portugal is being praised internationally for sticking to her austerity plan by cutting public spending, reforming the state and making serious attempts to balance its imbalance of payments.
“
right, but has warned that pushing them forward to hard and too quickly would be disastrous, not just for this government but for the future of democracy in Portugal. The spontaneous peaceful uprising on September 15th was over the controversial TSU - a Government-led single unitary tax which aimed to cut the financial costs of the nation’s hard-hit small and medium companies by sharply slashing workers’ take-home pay. The only problem, apart from the fact that employees don’t like it, is that many bosses don’t agree with it either. At the American Club in September, the economist and hedge fund expert, Professor António Borges, who is also a Government economic adviser, argued convincingly why the TSU was a good idea and why the Government’s policies were working despite the screams of protests in the streets. He pointed out correctly that both public and private wage salaries and expenditure had risen beyond productivity, earnings and receipts, with public sector salary increases in particular outstripping increases in the private sector.
Take the last serious political and economic crisis facing the country in 1883-5, when the IMF had to step in to prevent the nation going bankrupt. Then, as now, Portugal turned out to be a model student, a successful case study widely admired around the world on how a nation can pull itself up from disaster by its shoe laces. Now, again, there is a rapid readjustment in terms of rebalancing the nation’s books, with the trade gap between imports and exports closing to its lowest level since the 1940s and increased savings in the public’s bank accounts after years of reckless spending fuelled by cheap credit. Not only is Portugal sorting out its balance of payment deficit and bringing down its public debt and spending; it is, for the first time in decades, reforming and overhauling entrenched interests and cutting the fat off sacred cows which until now no government, either PSD or PS, had successfully dared to do. The screams and shouts in the street mean, to some extent, that the Government is touching a nerve on what really counts, but the question now is if the treatment is killing the patient? And this is where some esteemed economists like António Borges may not be entirely right. Just like Nigel Lawson’s Community Charge or Poll Tax in Britain the late 1980s, which seemed fairer and a good idea at the time, the TSU, which also looks good on a university blackboard, may be grossly unfair and unworkable, and had it been pushed forward, would have spelled the end of the Government.
”
The TSU proposed to cut employers’ national insurance contributions for its employees by 5.75 points, shifting the onus on employees from 11 % to 18 % of their wage bill. In effect a drastic wage cut. The idea, according to the academics, is that by slashing labour costs, employment would be boosted, prices would fall and Portugal’s export competitiveness would increase. But I’m sorry. That’s like putting a patient with a Stage 1 treatable if malignant tumour on a morphine end-of-life care syringe driver! It finishes the patient off in four days. Indeed the public’s reaction was explosive. The measure succeeded in uniting all the opposition parties along with trade unionists, big business bosses and academics from the left and the right. Although the Government did a U-turn on the proposed policy, Dr. António Borges threw fuel on the fire last week in the Algarve by insisting the TSU was still a good measure and criticised businessmen for being “ignorant”. Filipe de Botton, president of Logoplaste, one of the business leaders who has most severely criticised the TSU, blasted the economist by saying he had an attitude which revealed a “total ignorance of Portugal’s business network”. “He’s never had to pay salaries and doesn’t know what he’s talking about” he blasted at the Algarve Enterprise Forum at the end of September. This is not to say that the advice given by the Government’s economists is overall wrong or misguided. There have been too many fat cat salaries in badly-run public sector companies for
In fact, if one talks to movers and shakers in the business and investment world things in Portugal are seen as going extraordinarily well, better than most of the population think. That the general man and woman in the street don’t agree is largely because the benefits of painful reform and change take two or three years to filter down to the population which is still suffering at the bottom of a dark and seemingly endless well of cuts and taxes. Perhaps the positive attitude of investors and analysts outside Portugal should come as no surprise. In their darkest hour the Portuguese have always known how | 19
[ PARTNERS SPECIAL FEATURE ] too long. And that’s where the cuts have to be made. The justice system too is, as the Mayor of Porto, Rui Rio, pointed out at the International Club of Portugal in September, too slow and ineffective. The tax system for foreign companies wanting to invest in Portugal, as economist Manuela Ferreira Leite has pointed out many times, has proved too complicated and has been changed to frequently. The public and local administration and civil service is still too bloated for a country with just 10 million inhabitants, while the nation’s public education system still leaves a lot to be desired. But the news at a recent conference of international investors in Italy that Europe and Portugal are on the right track, with investor confidence starting to change significantly, may prove hollow if a full-blown political crisis ensues because the Government is focused on full-speed austerity and more austerity at any cost. Any serious public unrest causing the Government to
lend it with extraordinarily cheap repayment conditions to those in the south that wanted to borrow it. This, coupled with low interest rates, was behind the huge jump in spending power in Portugal in the 1990s until 2007 which also encouraged bosses to quickly increase salaries but not, unfortunately, in line with national production and output. As a result, according to the American economist J. Bradford DeLong, this meant that the population in Portugal was “spending €13 euros for every €12 earned while the north of Europe was financing the missing euro”. Countries like Germany, on the other hand, were spending a euro or more less than each euro earned. Now the party has ended and the policy has changed. The north now blames the south for living beyond its means, even though it made ‘loadsamoney’ in Portugal, Spain, Greece and Italy with a ready market for its products in the boom years.
“
The north now blames the south for living beyond its
means, even though it made
”
‘loadsamoney’ in Portugal...
deflation by cutting prices and/or manpower costs to
improve competitiveness. This would prove extremely contentious. This could ultimately mean leaving the euro and devaluing the currency; in this case the reinstated escudo, which would undo years of hard-fought gains.
Of course the option of increasing the competitiveness and productivity of Portuguese companies to a level closer to northern Europe seems like the best idea. The only problem is how to do so, and if it is such a good idea then why hasn’t it been tried successfully already? Perhaps a combination of ideas aimed at kick-starting growth in Europe might be the best set of options on the table. The trouble here is that the Devil is in the details. That requires a pan-European response at an EU level which would be tantamount to a US-style Marshall Plan for Europe and the Fins, Germans and Dutch, to name a few, certainly aren’t too keen on footing the bill. The trouble now is that if Europe, and to a lesser extent Portugal, doesn’t decide on a carefully planned and directed strategic economic development and recovery plan soon, the future of the very Euro in its current form is put at risk. At the very worst some countries will be forced to leave the club – Portugal, Spain, Italy and Greece.
fall now, leading to a complete U-turn in policies would simply frighten off investors and the international community just as confidence was starting to raise its head above the parapet, undoing all the good work that Portugal has succeeded in doing over the past year though difficult sacrifices, reforms and by sticking to its three-year readjustment programme. But without a doubt reforming and cutting for the sake of it without having a medium and long-term growth plan is foolhardy. The Euro’s long-term survival in its present form depends in some measure on Southern Europe’s ability to regain competitiveness. And it is this fundamental imbalance between the North and South of Europe that could prove so dangerous to Europe’s chances of recovery and finding its ways out of recession. For this one needs to look at why Southern Europe and countries like Portugal became uncompetitive in the first place. Countries in Northern Europe, like Germany, which was awash with cheap money to invest, was willing to 20 | Investments
Of course any prudent economist will argue that no one pointed a gun at Portuguese consumers and forced them to buy up retail commodities like there was no tomorrow. So where to now? If the European Union, Germany and France are really serious about saving the euro and avoiding a Depression, then certain political measures may need to be taken. The relatively rich countries in the north may have to tolerate an increase in inflation – something Britain has long feared and Germany even more so. By raising inflation two percentage points for five years could readjust the north-south divide by a third. Countries like Spain, Italy and Portugal could slash their taxes and streamline their social service systems. These countries could, too, overhaul their companies to make them more productive and competitive – this is happening to a certain extent in Portugal – but they clearly can’t do this, as we saw last month, by raising employee’s national insurance contributions. Countries like Portugal could impose a policy of
And at the very best, if nothing is done, and even with a world economic recovery - which may not be on the horizon sometime soon because of the ailing United States economy – the economic gulf between the north and south will continue with the north largely picking up the tab. And that, in itself, could be enough to destroy the European project that has been in the making for sixty years. At a local level, in Portugal, September’s demonstrations clearly showed that the Government is going to have a tough time imposing further austerity measures on the long-suffering middle class which forms the PSD’s and CDU’s bedrock supporters. Socialist and one-time adviser to President Jorge Sampaio, João Ferreira do Amaral, believes that the Government needs to change part of its strategy or face a deepening recession and more social unrest. “I am convinced that the Government will not be able to meet its deficit target in 2013. This and the speed and scope of reforms need to be renegotiated”, he says with ones that don’t “scuttle the economy”. Without that the Government faces not only not being able to pay off its creditors, it faces, as Rui Rio suggested at the ICPT in September, being the last government of the Third Portuguese Republic. And whatever succeeds it may not be a pretty prospect. | 21
PA RT NE R S PROMO ] [ PARTNERS
L’AND Vineyards, Wine Resort Set in the stunning landscapes of Portugal’s Alentejo landscape, L’AND VINEYARDS is a charming luxury wine resort paying full homage both to the surrounding environment and the eternal magic of winemaking.
P
roviding a unique countryside experience in an exclusive and inspiring atmosphere, the L’AND Vineyards are developed around a central valley of vineyard, an olive grove and lake, communicating with the different accommodation units, that emerge, organized in small sets, from the landscape, recovering traditional Alentejo architecture. Electing the wine as source of inspiration, the L’AND Vineyards resort is a 5 stars tourist village that harmoniously blends into the natural landscape, combining it with contemporary architecture from top architects.
L`AND Hotel & Resort
The L’AND Vineyards Resort is billed as a member of the Small Luxury Hotels of the World (SLH), and only has 22 suites, 10 Sky View Suites and 12 L’AND View Suites, in a refined, luxurious atmosphere All the 120m² suites have private terraces and fireplaces, lake view, direct access to the swimming pool and the latest IT features such as Ipad and Ipod, among other details.
Sky View Suite Concept
The 10 Sky View suites offer the unique experience of sleeping “under the stars”, through the opening up of the room ceiling allowing guests to gaze at the star-lit night sky, in addition they also have a heated plunge pool on the patio. with stunning views over
22 | Investments
the Alentejo landscape which is considered a natural reserve of outstanding beauty because of its low levels of pollution. Worth mentioning are the exclusive cultural experiences of L’AND Vineyards exceptional services, relying on four fundamental values: a thoroughly personalised customer service; discrete kindness; proactive attitude and anticipating customer’s wishes even when not expressed; and focusing on exceeding their expectations so that they will return time and time again. The price range for accommodation varies from between 199 Euros on weekdays to 250 Euros on weekends and holidays eve. For L’AND View Suites the prices range from 170 Euros, on weekdays to 450 Euros on weekends and holydays eve, according to availability and the number of guests that may climb to 6 persons in this type of suite.
L`AND Restaurant
The concept of L’AND Restaurant seeks to establish a new Portuguese gastronomic culture, reflecting our history and our culture, also blending the experiences and the ingredients that have resulted from the Discoveries in the Far East. Taking guests on a culinary tour, Laffan`s cuisine is inspired by the natural environment of L’AND Vineyards to create a restaurant menu that offers Alentejoinfluenced dishes with a contemporary twist. On a monthly basis a menu is presented based on the idea of travelling – the mingling of
cultures and flavours, combining mediterranean and Alentejo and oriental cuisine suffused with contemporary influences.
L’ AND Vinotherapy Spa by Caudalie
Inserted within the L’AND Vineyards landscape around the vineyard`s central valley, the Wine Therapy Spa by Caudalie offers a unique experience of serenity and pleasure, through exclusive rituals, massages and beauty treatments,all based on grapes and natural products. Caudalie is a trailblazer for wine therapy spas, which offer sensual and delectable care, such as Crushed Cabernet exfoliation, Honey and Wine wrapping, Vinoperfect treatment, among others.
L’ AND Wine Cellar
The L’AND Wine Cellar is the perfect place to produce wine, being equipped with all the modern requirements of oenological practice so that a high-quality standard of wines may be guaranteed. The Wine Cellar is set up to receive different grades of grape, with different selection levels, storage, in deposits or barrels, temperature controlled rooms, different packaging options and maturation in wine cellars. The individual micro-vats, whose wood is selected by the owners, will enable a fully customised wine design. Each owner will have the possibility to produce his own wine, to select his own package as well as a personalised labels, among other things. This production may be stored in individual safes in the resort
restaurant cellar to be offered or even commercialized. Both owners and hotel guests will be exclusive members of the WineClub, a privileged space of wine culture promotion, through experience sharing, access to the Wine Cellar for wine production and to the harvest of the common vineyards, oenology courses, wine contests and thematic events, orders of L’AND wine with personalized label, and other.
L’ AND Vineyards Wines
The vineyards 7 hectares area, was planted with red National Touriga, Franca Touriga and Alicante Bouschet and white Verdelho and Arinto grape varieties. The total annual L’AND wine production will certainly not exceed 6,000 bottles, giving preference to the annual production of small quantities of reserve wine. The first L’AND Vineyards wine Reserve 2009 - with Touriga Nacional, Alicante Bouschet and Touriga Franca grape varieties, which create the colours, flavours and fragrances for 5,000 bottles. A strict grape selection, a deeply cared vinification and maturation in French oak barrels have produced a garnet-coloured wine, with fragrances of dark fruit, mints, spices and toast. In L’AND wines, only national grape varieties are used, with a highly reduced quantity of grapes to control the production process. Under Paulo Laureano’s watchful eye and the director of enology, Patrícia Batista, the natural production of the grape is ensured, only applying organic fertilizers and avoiding to use of chemical and synthetic products.
| 23
[ PARTNERS PROMO ]
Apt 7
lapa 111 RESIDENTIAL CHARM We spoke to Enescoord engineer Rui Enes, who is in charge of building work supervision, who explains this fantastic and bold residential project in Lapa, Lisbon. www.lapa111.com 24 | Investments
Apt 2
T
Apt 4
Apt 7
Apt 5
he LAPA 111 project development has been developed by IMOMAR, a closed property investment fund that is managed by Fundger, formerly Fundimo. The project consists of three buildings with a total of 2.300m² which have been constructed above ground area, and it is located in one of the best locations at Rua da Lapa, the corner between Lapa and S. Domingos streets. It was an investment in Lisbon`s high-end residential segment. It comprises 7 units, ranging from 2-bed to 4-bed plus 2 and areas from 150m² to 380m², with very good quality finishing. The upper floors boast stunning views over the river and city, while the lower floors have private gardens. There was considerable investment in the basement parking area with two (Apt 2 and Apt 6) or three parking spaces for each apartment. The architectural project is by MIXARQ, Clara Couceiro Architects, while Tecniarte supervised the building work, under ENESCOORD supervision, carefully taking current family requirements into consideration. The work will be completed by April 2013 and marketing the development for sale has already begun.
Apt 3
N.º 111 RUA DA LAPA
N.º 111 Rua da Lapa is a major rehabilitation where all the insides have been gutted and completely rebuild using modern technological innovations, typologies and finishing together with contemporary architecture, resulting in the following three apartments. APT 1 – a 3bed duplex+1, with 323m² and balconies, one measuring 37m², and where all the rooms with suites and a maid’s room included. APT 2 - a 3-bed with a 194 m² area and 6m² of balcony. APT 3 - 3-bed +1 duplex penthouse, with a 289m² and 43m² of balconies with an excellent view of the Tagus river.
N.º 115 The 115 building is on the corner, and is listed by the Portuguese
listed building heritage entity IGESPAR. Here, the pre-existing outside walls, some of the decorated ceilings and the paving have
been preserved. Wherever possible, thermal and acoustic building techniques have been used and of infrastructures has been placed. There are 3 excelent apartments. APT 4 - a 3bed duplex+1 with 206m² and 50m² of balconies. APT 5 - a 3bed duplex+1 with 263m² and 24m² of balconies that have retained the building’s fully restored old staircase. APT 6 – a 2bed with 142m² and attic rooms
THE THIRD INNOVATIVE BUILDING
In the third building, this one on Rua São Domingos, there is an independent apartment, a completely new residence, fitted out with the latest technology. APT 7 – a 4bed+2 with a 372m² area and 24m² of balconies and outdoor private patio measuring 36,5m². | 25
[ BUSINE SS PROMO ]
Espace and Explorer Two amazing office buildings in the heart of Parque das Nações
Fátima Perdigão | Managing Director, PRAMERICA REAL ESTATE INVESTORS (PORTUGAL)
The modern and harmonious architectural design of these two office buildings in the heart of Parque das Nacões was a key factor in the decision to purchase this asset for one of the German Funds managed by Pramerica Real Estate Investors. Since its completion in 2010 the project by Sua Kay Architects has attracted a number of prestigious companies. A strong marketing campaign supported by our two appointed real estate professionals, Cushman & Wakefield and B. Prime, underlining the advantages of adjusted market prices and offering attractive packages to potential tenants as well as highlighting the exquisite finishes of this Class A property aims to attract further companies to this excellent space. The outlook for the Euro zone economies remains uncertain and Portugal is experiencing one of the worst economic downturns which had led to deterioration in the real estate market.Only the capacity to offer innovative opportunities and strategies will lead to success in this challenging market. Working together with highly-qualified professionals, we aim to identify and accommodate the needs and requirements of potential tenants, offering them optimal, tailored solutions for their office space. Cushman & Wakefield, who also manage the asset, are responsible for the efficient day to day running 26 | Investments
of the property. In addition they are very persistent and steadfast in their implementation of the Sustainability Guidelines set out by both Cushman & Wakefield and Pramerica Real Estate Investors. The energy consumption is continually monitored and wherever possible energy-saving and low carbon emission options are implemented, waste is sorted and recycled. As part of an innovative program, Cushman & Wakefield have introduced a project called “Sustainable Community” based on the principles that Property Management must be ecologically correct, economically viable, socially fair and culturally diverse. With these principles in mind the objectives are to inform, inspire and engage both tenants and suppliers on issues of sustainability. Pramerica Real Estate Investors (Portugal) are excited to be part of a highly professional team, working together with Cushman & Wakefield and B. Prime to enhance and improve tenant/landlord relationships. We believe the extra effort will make us more competitive in this unstable market. The buildings have been built to a high standard, offering a range of very flexible floor plates, ranging from 200 m2 per unit to more than 2,000 m2 per floor with a high ratio of indoor parking spaces. Pramerica Real Estate Investors, a subsidiary of Prudential Financial Inc. USA (PFI) is one of the leading real estate managers in the world.
ABOUT TMW PRAMERICA AND PRAMERICA REAL ESTATE INVESTORS
The investment company TMW Pramerica Property Investment GmbH is a subsidiary of Pramerica Real Estate International AG (http://www.pramericarei.de). Pramerica Real Estate Investors, which operates as Pramerica Real Estate International in Germany, is a leader in the global real estate investment management business, offering a broad range of investment vehicles that invest in private and public market opportunities in the United States, Europe, Asia, and Latin America. Headquartered in Madison, N.J., Pramerica has offices in Atlanta, Chicago, New York, San Francisco, Miami, London, Lisbon Luxembourg, Madrid, Munich, Paris, Istanbul, Abu Dhabi, Mexico City, Rio de Janeiro, Sao Paulo, Beijing, Hong Kong, Seoul, Singapore and Tokyo. In addition, Pramerica Real Estate Investors has a representative in Milan and is establishing a presence in Sydney (pending regulatory approval). As of March 31, 2012, the company managed about €38.5 billion in gross real estate assets [€25 billion net] on behalf of more than 490 clients worldwide and ranks among the largest real estate investment managers. For more information, please visit http://www.pramericarei.com
ABOUT PRAMERICA
Pramerica is a trade name used by Prudential Financial, Inc., a company incorporated and with its principal place of business in the United States, and its affiliates in select countries outside the United States. PFI (NYSE: PRU), a financial services leader with approximately €707 billion of assets under management as of March 31, 2012, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, PFI is focused on helping individual and institutional customers grow and protect their wealth. In the U.S., the company´s Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. PFI´s businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com. PFI of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.
| 27
[ BUSINE SS INT E RV IEW ]
Mary Kay
A success story When quality is concerned, every detail matters LUIS FIGUEIREDO | Interview
The market positioning of this special company calls for consistency throughout operations, from conception to branding, from daily activities to collaborators’ welfare. It proves the relevance of caring about working physical conditions, showing that environment may be inspirational becoming an asset to business achievement. A story to learn about. On the current economic situation how gets Mary Kay the Portuguese woman to become more valued and greater? How have been your success and your growth?
Currently we are watching an employment destruction that affects mainly women. Thus a company, offering them the opportunity to create their own business, with the possibility to become successful entrepreneurs, is more relevant, not only, for the women who need to feel fulfilled, but also for their families. This business opportunity, together with an exclusive and relevant market positioning, has enabling Mary Kay to be in counter-cycle and having a significant growth. The opportunity to have their own successful business, which evolution is determined by the level of ambition, determination and work capacity of each consulter, is undoubtedly a unique one that allows the personal, professional and economic growth.
“ The Portuguese women may say:
“I CAN”! Definitely it is a sign of feeling valued and great. |
”
SANDRA SILVA General Manager, MARY KAY PORTUGAL
28 | Investments
How important to the company is the space where it is installed? Which are the gains from being at the Espace building?
The move to the new office means a step into the future. It highlights the company commitment to modernity, professionalism, comfort and efficient support to all consulters through the Beauty Centre. We are a company that enables women to have an excellent career opportunity and the new office reflects it.
Is the quality of the facilities important to the employee productivity?
Yes. One of our concerns when we have initiated the project was that our facilities could foster the quick and open communication with the entire team. At the same time we wished that it would be a pleasant place where all the staff Each consulter is independent, meaning she is her own boss, but enjoys being and working. For this purpose, the fantastic she is not alone. Therefore, the company develops and releases all pantry areas, as well as the lounge, have been important contributions. I can say that with this office move we became the supporting required tools to their business evolution, from a product launching, each three months, always at the top of the faster and more agile. Today we are a more united, efficient and productive team. worldwide trends, within each area that detains an expertise – skin care, body and make-up, fragrance and man – till all the necessary information on products, management and leadership. Which is the feeling of working at one of the most With this support helping the consulters to become successful and to achieve a career growth, the Portuguese women may say: “I CAN”! Definitely it is a sign of feeling valued and great.
What differentiates Mary Kay in the market?
modern and most advanced technologically office buildings of Lisbon?
Excellent. We feel that there really is a perfect match between what Mary Kay stands for and what the Espace offices transmit.
The integration in a new zone of the city such as “Parque das Nações” was a determining factor when choosing the location of the company headquarters?
What differentiates Mary Kay from other brands of direct or retail selling is certainly its unique relevant market positioning. Together with its competitive products, meaning affordable high Yes, it was very important. Mary Kay is working on the same quality ones, there is a professional personalized service from the direction of the path of the top Corporations of Portugal, which are mainly located in “Parque das Nações”. Mary Kay Independent Beauty Consultant. | 29
[ BUSINE SS INT E RV IEW ]
Intrum Justitia
Challenging times require expertise Chris Graeme | Interview
In what is a test case of long-lasting endurance based on consistent positioning and on providing management quality services Albina Nunes, Intrum Justitia `s Commercial Director, explains the recipe for Intrum Justitia’s success. In the present economic situation how can Intrum Justitia facts are connected to our motivation and also to our satisfaction at our workplace, and both depend on several elements such contribute to help people and companies? We see ourselves as being a catalyst for a healthy economy. We on a daily basis seek to facilitate the development of companies, contributing to get simple, safe and fair commercial transactions. Through various solutions adapted to the different industries and that assure an effective credit management, we help the companies to improve their profitability and their cash flow guaranteeing levels of liquidity that contribute to their balance and their survival. To understand people and to innovate are two of our core values: behind each transaction, each company and each debt there is a person. The strong commitment on training our collaborators enables them to achieve flexible solutions, which respond to our clients’ goal – to recover their credits, as soon as possible, according with the actual capacity of whom is in debt and who often needs help to manage the own finances.
“ We see ourselves as being a catalyst for a healthy economy...
”
ALBINA NUNES | Commercial Director, INTRUM JUSTITIA
What differentiates Intrum Justitia in the market?
Established in Sweden in 1923, the Intrum Justitia is the leading company in Europe, on management services of credit and collection, with more than 90.000 clients and a team of about 3.300 collaborators. Having started its operations in 1997, the Intrum Justitia Portugal is a company specialized in credit management services, that provides add value solutions to the needs of his clients in terms of credit recovery, being the leader in the Portuguese market for a few years. To our clients we offer a wide range of services that go throughout the credit cycle, from the invoicing management, monitoring and management of payments, to the management of overdue invoices and portfolio buy out. Among our main clients there are large, small and medium companies from different sectors – banks and financial institutions, telecommunications, utilities, insurance companies, media, direct selling and others. Our guiding core values: Understand People, Committed to Challenges, Being Innovative and Make a Difference, are one of the pillars of our success and recognition by our clients of the quality of the provided services, which are perceived in our leadership in the different markets where we are operating, and in particularly in Portugal where we hold 20% of market share.
Is the quality of the facilities essential to the employee productivity?
The productivity of all of us, collaborators of Intrum, relies on our professionalism and on our passion for our activity. Those 30 | Investments
as the place and the work conditions. When choosing a new workplace we had to analyse the impact to our collaborators and, we had to make a choice that could fulfil the needs that we have been told about. Today our collaborators have better work conditions and many of their needs were satisfied, having an improved quality day-by-day, which translates into a bigger satisfaction on what they do reason why we believe that it affects their productivity.
Which is the feeling of working at one of the most modern and technologically advanced office building in Lisbon?
It is a feeling that reinforces what we are: a recognized prestige Company that wishes to host its Clients, Partners and Collaborators with as much comfort as possible. On times of innovation and technology it makes perfect sense to be working at a place that meets our continuous goals: innovate and develop our services by using the adequate tools.
Which are the add values of Espace building?
Espace building is at a privileged location, near shopping, restaurants and transports. The access is easy and it is situated at a regular passage place. It is a recent building and when we moved in it was possible to structure our organization accordingly and to fit in the selected space. There is plenty of daylight due to the many and large glass windows. It allows the internal garbage collection and separation, being an environment friendly building what goes together with our beliefs and social attitude. It provided access to disabled and it offers smart elevators. The building has 24 hours surveillance what is in accordance with our internal security rules concerning people, equipments and data.
Was the location, at a new zone of the city such as Parque das Nações, a major decision factor to choose the company headquarters?
To Intrum Justitia it is of extreme importance to be near our Clients, near the Customers of our Clients and near our Partners. Parque das Nações satisfies all those requirements. We are at a new zone of Lisbon where are concentrated several companies that are our Clients and Partners. It is a growing business place, with visible future, and accesses were also a main factor. So after analysing all possibilities in Lisbon area, we could only choose the best: Parque das Nações. | 31
WOMEN FIRING ON
All Cylinders
in Chris Graeme | Intro
this edition of Partners in Business we take a look at three successful women in their respective fields: banking, diplomacy and communication to see what it takes to be successful in what still is, in Portugal, largely a man’s world. All are very different, yet they share some unique attributes in: they are all highly motivated, results oriented and professional and prove that, as in the song by the Eurythmics with Aretha Franklin: Sisters are Doing it for Themselves! | 33
[ SPEC IAL PART NE R ` S I N T E RV I EW ]
A question of
natural selection LUIS FIGUEIREDO | Interview
The current economic situation in Portugal has created a Darwinian landscape in office and retail real estate where only the fittest will thrive. Credit risk aversion, deleveraging and Basel III banking reforms will all affect the way business is done in future. Carla André, Hypothekenbank Frankfurt AG’s managing director in Portugal explains why. Has the change in name from Eurohypo to Hypothekenbank Frankfurt AG altered your relationship with existing clients and your market position?
The bank’s relationship with its current clients has remained unchanged. We have kept our commitment to provide our clients with the highest level of service in meeting their requirements. The team, which has a deep knowledge of the Portuguese market and the players that operate within it, has remained the same.
“ There will clearly be a process of
natural selection implying a reduction in the number of players in the national market”
”
carla André | General Manager, Hypothekenbank FRANKFURT AG
34 | Investments
What is your forecast for the real estate market in Portugal for the office and retail sectors for the next 10 years? Are we facing a market of opportunities?
The development of the real estate market in Portugal over the next few years depends on a number of factors, both internal and external, the impact of which is difficult to measure. There are, however, some trends that can be traced out, that will result in a greater aversion to risk on the part of all market players. The impact of the austerity measures will be felt in both the office Are you continuing to concentrate on the real estate and retail areas. In retail it is already evident that there is a difference market, namely in the office and retail areas? between prime assets, which are well located, with a stable and varied Currently HF boasts an active operations management, the balance tenant mix which is attractive to consumers, that is professionally of which is favourable, working towards a progressive deleveraging managed and with the capacity to support shop tenants through this and the management of a portfolio based on forecasting risk factors. difficult phase; and secondary assets, which are not so well located New financing operations are excluded from our activity scope. and have a lesser management capacity. There will clearly be a process of natural selection, implying a reduction in the players operating With the present set of economic circumstances, many in the national market. It’s a similar picture with offices, with assets developers are handing back projects with a high level of in prime zones riding the crisis with less difficulty. leverage to the banks that financed them. How do you think located These proprietors will benefit from maintained cash-flow. It provides that Hypothekenbank Frankfurt AG should deal with them? the opportunity, given requests for reductions in rents from leasers, Thankfully this is a situation which HF hasn’t had to face. The to negotiate longer leasing contracts with renewal clauses that are handing over of a project to the financing bank should always be a automatically adjusted. Another factor which will have an impact in the last resort solution. Before arriving to this point, it is my opinion that coming years will be the way in which real estate financing will be carried out all other available avenues should be explored first (providing more in the future. The banks are more averse to risk, while the Basel III accord guarantees and restructuring the debt) with the developer. The best will come into force which will impose the need for greater capital allocation solution for the banks to adopt would depend on the underlying when financing real estate assets, affecting the profitability of the same. reasons for the high leverage. Has there been deterioration in the those investors with available capital, who do not need to take out asset´s performance? Has there been an increase in market yields? Or For bank loans, the time is ripe, with excellent market opportunities to has there been a maladjusted leverage over the granting of finance? acquire consolidated property which has a great potential to increase In the case where the problem was not associated with the ability in value in the medium term. to meet the debt servicing requirements, but rather had to do with high market yields, it is easier to carry out a deleveraging without Do you feel an interest in Portugal on the part of International having to hand the property back to the bank. In situations where investors? What needs to be done to win them over? the operation of the asset has deteriorated, the best strategy for the Given the current economic context, the uncertainty that Portugal bank may be to take back the asset and make sure that the same is managed in a professional way, so that when the cycle turns around, will be able to meet the provisions laid down by the Troika, and a the bank’s losses can be cut to a minimum on selling the asset. Many scarcity of financing in the national market, the interest shown by international investors is fairly thin on the ground, and is restricted Portuguese entities are going down this road, taking possession to some opportunistic investors, without great success up until now, of assets, partially or totally, turning the debt into capital and later and family offices. In order for investment to return to our country handing over the management of these assets to specialised funds. it is vital to re-establish confidence in Portugal, so that we can regain The financing of real estate assets has a project financing basis, as access to the markets, and in this sense the banks can fulfil their role as such any solution to be adopted in these situations should be found financiers for economic activity in an appropriate way. Once the above within the specific aspects inherent to each operation. It is a route requirements are met, it is also essential to have stable tax and efficient that demands a combination of know-how in structuring the credit judicial systems. solution, with knowledge of the real estate market. | 35
[ SPEC IAL PART NE R ` S I N T E RV I EW ]
Passionate
about Portugal Chris Graeme | Interview
British Ambassador to Portugal Jill Gallard represents a new breed of British diplomat. Business focused, down-to-earth, approachable, hands-on and with a great sense of humour. Chris Graeme finds out more. one in the Westfield Shopping Centre. Living Planet has got a brig How did you get into diplomacy and was it something operation in Greenwich and the magazine publishers Open Media you always wanted to do? I never thought about it until I was at Edinburgh university, possibly because I was from Northern Ireland and wasn’t at Oxford or Cambridge. I think it was partly because I did a French and Spanish degree it was a logical move to think about the diplomatic service. I did however know that I wanted to live abroad and get to know the country, the culture and the people rather than do a job where I would fly into, say, Paris for a meeting.
our ‘Portugal as a Platform’ concept whereby we promote UK and Portuguese companies together ... JILL GALLARD | BRITISH AMBASSADOR to portugal
36 | Investments
”
Has Portugal proved useful as a springboard into other markets in the world?
We’re very interested in our ‘Portugal as a Platform’ concept whereby we promote UK and Portuguese companies together to I like different challenges every few years, so in that way being a diplomat is perfect because you become an expert on one country invest in Brazil, Angola and Mozambique because there wasn’t a lot of awareness in the UK about the Portuguese-speaking and then four years later you move on to a different country. community worldwide and the fact that Portugal is very well placed in these countries which are enjoying 9% growth, so we Where were you posted in the past? all need to get into these developing countries. A good example I spent three years in Prague in the Czech Republic and actually would be the Olympics where we have got a huge amount of learnt some Czech. I went there just as they joined the EU and at the time there were really only three embassies that could operate Olympic infrastructure know-how and since Brazil is hosting the next Olympics we’re trying to partner Portuguese and British in Czech – us, the Americans and the Germans. It proved a huge advantage to us because it showed our commitment to the country, companies to jointly take advantage of the Brazil Olympics. In fact we ran a big seminar on investing in Brazil specifically in but it took me nine months to learn it! which about 200 company representatives attended. It was a Was it easy learning Portuguese? great success, so we’re going to run it again next year and expand It was easier for me since I already had French and Spanish. I have it to include Angola and Mozambique. to say that I really love Portugal and loved learning Portuguese. What challenges have you faced? Since my second month here all the meetings I have had with The obvious one would be the economic backdrop which ministers I conducted in Portuguese and I think our Portuguese has proved challenging both for the British and Portuguese contacts really appreciate it. governments. We’re both facing austerity programmes, trying to cut our deficits back, reduce our debts, and so we’re trying to be What have been the highlights of your first year in Portugal? a forward-thinking embassy by doing a lot of work on the front Obviously the Queen’s Diamond Jubilee and Olympics because that foot by plugging trade and investment which is a great challenge put Britain on the front pages of newspapers for good reasons and when you’ve got reduced resources in terms of staff and finance. it’s been great to see the interest that Portugal has had in all of that. That’s a challenge we’re all facing and Europe and have to live with. On the political side a personal highlight for me was when Pedro Passos Coelho went to London to meet David Cameron since every Another challenge would be the December European Council when the British prime minister used his veto causing quite a lot ambassador wants to get the two prime ministers together and of front page coverage around Europe. That was a big challenge for because it crystallised the cooperation we have across the board me personally to explain what was behind that and making it clear with Portugal in bi-lateral political, economic, foreign policy and to people that we’re not walking away from Europe. EU matters. The other highlight was the fact that our embassy’s UK Trade and Investment Team achieved its targets in terms of getting PERSONAL FILE First car – An ‘Oporto Red’ Mini Metro investment into Britain despite challenging economic times, and is The book I´m reading now – ‘Londoners’ by Craig Taylor one of the highest performing UK embassy teams worldwide. Last CD or MP3 download – ‘Wheels on the Bus’ (I’ve got young What investment successes can you pinpoint? children!) but I am an Abba fan! Best holiday in my life – My honeymoon in Argentina. We actually helped 12 Portuguese companies set up in the UK and Who do you admire most? Margaret Thatcher or Tony Blair – I London last year and that has created 43 jobs in the UK. One is genuinely admire them both for different reasons but as a good called Critical Software which has opened an office Britain while diplomat I can’t say more than that! Sacoor Brothers opened their first two shops in London including
What do you like about being an ambassador?
“ We’re very interested in
which have now set up Essential London. These are small starts but for us it is very important to get Portuguese companies into the UK. It would be easy to think because Portugal has the IMF bailout and both countries are suffering from sluggish growth that there aren’t any success stories. In fact the opposite has proved true.
| 37
[ SPEC IAL PART NE R ` S I N T E RV I EW ]
A pragmatic business woman
with drive and vision Chris Graeme | Interview
Businesswoman Silke Buss has been running the successful media communications agency Buss Comunicação since 2001. Together with her team, she has represented some of the most important German multinational companies nationally. Motivated, pragmatic and results orientated she likes to be competitive and successful.
Could you tell us a little about your background and education? to distinguish when you have a good base and networking and you are I grew up in the north-western part of Germany, close to the Dutch border near Munster. My father ran a factory producing textile yarn. I actually went to a German-Portuguese school which was the best and only bi-cultural school in the region and it was there that I learnt Portuguese. I then attended university in the south in Erlangen close to Nuremburg where I studied theatre and political science and media studies since I wanted to be a journalist.
Where did you first start work?
Parallel to my studies I won a three year journalist scholarship at an academy where I was picked with just 15 people from all over Germany. I leant all the skills and that included work internships with different newspapers and radio stations.
When did you come to Portugal?
“ Success means good, sincere
and long-lasting partnerships which is one of the core pillars at Buss Comunicação...” SILKE BUSS | CEO, BUSS COMUNICAÇÃO
”
In 1997, although I had been visiting the country since 1984, first on holiday in Barcelos. Then, in 1990, I had a small scholarship from the Portuguese state to do a 6-week summer course at the Universidade Clássica in Lisbon. In the nineties I spent a couple of months doing research for both master and PhD thesis on Fernando Pessoa, including many interviews with experts and theatre people.
And did you work here as a correspondent?
I worked as a correspondent for ‘Die Welt’, ‘Der Spiegel Online’ and for a radio station called ‘100,6 Berlin’ for which it was fun doing live interviews.
How did you get into media and press communications?
That story is very interesting. I had been working as a journalist for 6 months and I discovered that the supermarket chain Tengelmann wanted to come to Portugal in 1999, so I tried to get into contact with them and it proved so difficult. Finally almost giving up, I sent an e-mail through their general channel and got a phone call from the Portugal, Italy and Spain general manager. I was invited to dinner and the next thing I was representing them to the media here.
Is it difficult, having been a journalist, to wear a different hat in representing a private company?
always investing in that. I think good inter-cultural skills have proved important. Our international experience means that we can proactively come up with solutions which are original and have vision. I think you have to adapt to the market circumstances and I think we’ve been successful in that since we grew last year by 15%.
What other aspects have proved important to your business?
Team spirit. We’ve adopted a constructive and flexible attitude and we focus on building partnerships with our clients – ones that are based on respect and trust. I think it is also very important to be dynamic and have a real passion for what you do. When the clients see that passion and motivation they are more likely to put their faith in you.
Do you have any specialist areas?
Our portfolio of clients has been and is very broad. However, we have made a specialisation in Architecture, Design and Construction, Defence, Logistics and Transports, Tourism, Industry in general, as well as in Renewable Energies.
What clients have you been representing recently?
We communicated the inauguration of the North Delegation of Schnellecke Portugal in Trofa. We presented the new rail service between Portugal and Germany of Schenker. We inaugurated two Bikeports Solares in Cascais, offered by Donauer Solar Systems. We also organised the launch of the FINS Club by Quinta Magnólia with the renowned Australian chef Steven Snow as well as an international training seminar in Cabo Verde for the International Institute of Mediation and Arbitration.
What has been the overall secret to your success in Portugal?
Success means good, sincere and long-lasting partnerships which are one of the core pillars at Buss Comunicação. We’re constantly focused on taking care of our contacts and providing an excellent service to both our clients and to journalists.
What would you say your main strengths are?
I’m very pragmatic, positive and results and success orientated. Success is very important for me personally.
I always try and see things from the journalist’s point-of-view, so I treat What do you like to do to unwind? I love playing piano and tennis and usually do so at least three times them in the same way that I want to be treated. a week. I often play in tournaments. I like listening to classical music, When did you form Buss Comunicação Lda? jazz, rock and some Brazilian music. I also like reading and often have I started the company in 2001. My first clients were several books on the go at once to feed different necessities. ‘Tengelmann’, ‘Schenker’, ‘Wella’, ‘Jungheinrich’ forklift trucks Do you have any future ambitions? and ‘Filkemp’ industries. I’ve always thought I’d quite like to run a factory although I don’t How have you coped with the economic downturn? know what I’d like to manufacture. I suppose I get that from my Providing a good service or course. In times of crisis I think it’s easier father who had a factory. 38 | Investments
| 39
[ BUSINE SS R E P ORT ]
4
5
6
2
1
Reasons to be confident and optimistc António Borges at the American Club CHRIS GRAEME | Photos
Economist and government adviser António Borges tells the American Club that for the first time in decades a government is finally daring to make necessary changes that no executive has ever seriously dared – reforms in justice, education, governance, welfare and taxation 40 | Investments
7
8
9
10
3
1. Anne Taylor | President, AMERICAN CLUB OF LISBON • ANTónio Borges | Government Adviser 2. Susana Luz | Sales Manager Portugal, AIR PLUS INTERNATIONAL • José Gonçalves Roberto | Partner, MRG 3. Curtis Stewart | Head of Economics and Environment, ILZG • Catarina Stewart 4. Salvador da Cunha | Managing Director, LIFT CONSULTING • João Godinho | Board Member, LIFT CONSULTING 5. Maria de Jesus Pitta Rebolo | Director, WOMAN IN LOVE • Alexandra Figueiredo | Hostess, AMERICAN CLUB OF LISBON 6. Anne Taylor | President, AMERICAN CLUB OF LISBON • João rendeiro 7. Jorge Fonseca • EMA Partners • Ricardo Rodrigues, Director Executive, PRESS MEDIA • José Soares, Procurement Specialist • Maria João Castel-Branco, INSTITUTO DE CERTIFICAÇÃO E FORMAÇÃO DE MEDIADORES LUSÓFONOS • José Gonçalves Roberto, Partner, MRG 8. Isabel Afonso • Geoffrey Fletcher | Chartered Accountant, J.CAMILO & ASSOCIADOS 9. Filipa Vera Jardim | Consultant • Orlando Mota | General Manager, MANITOWOC IBERIA • Maria Menezes • Ilídio Seródio, Group President, PROFABRIL CONSULPLANO GESTÃO 10. Leonor Vasconcelos | Marketing Manager, Cobert Telhas • Rui Vieira | Managing Director, COBERT TELHAS | 41
[ BUSINE SS INT E RV IEW ]
Broadway Malyan
The truly global master planners Chris Graeme | Interview
Broadway Malyan as a global architecture, urbanism and design practice enjoys a global reach in markets such as the Far East, South America, the Middle East and Brazil. Chris Graeme speaks to Stuart Rough, its international chairman. Broadway Malyan is renowned for its Master Planning schemes. How has the Lisbon office been able to take advantage of exporting expertise to third part countries?
“ You build up a momentum,
presence and track record and that will attract business from other countries within that region...
”
STUART ROUGHT | International Chairman and Lisbon Director, BROADWAY MALYAN
42 | Investments
here that will be working in Chile, Columbia, Argentina and Peru. We’re covering Latin America whether its in Portuguese speaking or Spanish countries. Every time we enter a new country we find a similar pattern of Broadway Malyan recently marked its 15th anniversary in potential work. This can mean Master Planning - and we have really Lisbon, which was its first step outside the UK. Among your world class teams to help us with such large projects – but it can also most emblematic projects in Portugal were: Rossio Station involve retail and hospitality (hotels). Master Planning often involves restoration, the revamping of the shopping areas at Lisbon city extensions, particularly in emerging markets where there is a Airport, Torre Zen in Parque das Nações, Hotel Olissipio desperate need for urban growth. We look at the full life cycle of the Oriente, Fórum Algarve, Fórum Barreiro, Espaço Guimarães, development from the economic, social, lifestyle and environmental and more recently, Barreiro Retail Planet. Which was your sides. Our Master Planning teams work all around the world: Angola, favourite project? Middle East, China and South-East Asia as well. Master Planning The refurbishment of Rossio Station was a very nice project for us can also mean urban regeneration and this month we actually won and today there are always tourists taking photos of the façade and an award for a Master Plan extension and an Urban Regeneration it’s become one of the most photographed buildings in Lisbon. The project for Calgary in Canada. We’re also doing a huge Master square outside was really awful and now look at the difference with Planning project in India in Bangalore. Of course the competition the cafés and eateries. The inside too had been in a dreadful state, just is tough, but we retain a professional standard. We will not buy shocking and that awful shopping centre inside that just didn’t work. work as some practices are doing. We compete and sometimes we What architectural projects do you have in Portugal? lose and sometimes we win. We have lost somewhat in terms of fee levels and straightforward bids, but when we get into the competition We’re still working at Lisbon airport following the Phase I and design stages and get the chance to explain the narrative and refurbishment of the food court and retail areas. We’re working on the methodology, we quite often win the contract. We tend to go into a Phase III extension which has been delayed twice already, but will now country on the back of project wins; Abu Dhabi was an example of open during the course of next year with significant retail and waiting that where we won a very significant Master Plan for the Docklands areas. It now looks like an international airport and has suddenly there which are just about to open. Dubai has also been interesting become a gateway for Portugal which Lisbon never had before. The for us and we are now stretching out to Qatar with four projects, so design life span for the modernisation is for 10 years but it is likely we might open up an office in Doha. We’re also looking at Bahrain. to be longer than that. Évora Shopping is also under construction, Saudi Arabia is suddenly on the scene for us too with a number of a relatively small and local centre which will open next year as well. enquiries. You build up a momentum, presence and track record and We’re also continuing to work for Primark in terms of refitting out that will attract business from other countries within that region. all their shop units in both Portugal (4 units) and Spain (18 units). In the Middle East we’re doing a lot of schools and educational In terms of urban regeneration projects in Portugal we haven’t really buildings, particularly international schools. tried to get that kind of work here, although we recognise there is big potential and it is happening but on a much smaller scale. It’s also a Can you tell us about your success in the Far East? very political area so we haven’t really pushed it. In Portugal we are Both Singapore and Shanghai opened in the same month 4 years doing a number of refurbishments of shopping centres - what we call ago and have both become very established and busy offices. They repositioning - with four projects on the drawing board. The same are very different markets, with Singapore covering the whole of South-East Asia. We’ve moved to larger premises in Shanghai which trend is happening in Spain. The problem in Portugal is that there is very little investment, whereas there is in Spain. shows it’s a very successful office and we’ve taken more space in Singapore with 60 staff there and 45 in Shanghai. Are environmental concerns as strong in the Far East as
The Lisbon team was instrumental in opening a new office in São Paulo, can you tell us a little about your role in that? Brazil has proved a natural stepping stone for us. We’re fully legalised with the Brazilian company now. Similar to what we have done in other countries we have started out with a small office which is backed up by the office in Lisbon. We have kept this office in Lisbon very stable in terms of staff members. We’ve also got three people working directly from the Madrid office
they are in Europe?
Green and sustainable buildings are still very significant; in fact they are absolutely fundamental, especially in Singapore where it is a legalised requirement. We wrote the Green Roof Policy for Singapore. China too is getting stronger now in this respect. Trends depend on the location. Here in Lisbon we still have a very retail orientated team and that expertise and experience is helping in other countries now. | 43
[ BUSINE SS INT E RV IEW ]
“ We can now say that urban regeneration
of our cities will be the engine driving the real estate market...
”
Lisbon on the street luis Figueiredo | Interview
Partners in Business interviews Marta Esteves Costa, Head of Research & Consultancy, and Luis Rocha Antunes, Head of Capitals Markets, both from Cushman & Wakefield (C&W) which has presented its study as a result of setting up an across-the-board department within the real estate consultancy company, specially dedicated to to urban regeneration. Is urban regeneration contributing to the rediscovery of Lisbon? Which area are attracting most regeneration and are proving the most dynamic?
In this type of trading it is required to present products that are different but at the same time are priced correctly to avoid retraction. The Alcantara area is still on the way up, and there Currently there is enormous vibrancy from the Chiado to Cais do has been the success of the LX factory project, an old factory that has been done up as office centre for creative ideas, Sodré areas. Regarding the residential market a residential zone has been rediscovered of various types and prices and typologies. without suffering profound alterations. There have been a set In terms of office segment, Chiado provides more than the office of private and state initiatives that have created new leisure spaces, such as the one at Cais do Sodré while new life has itself, but also offers a special environment and positive energy. The best address undoubtedly is still Avenida da Liberdade, where been breathed into Terreiro do Terreiro do Paço. On the other hand there have been State-funded initiatives with private premium brand retail trading shows increased demand. There support such as the total revamp of the Mouraria district. is a huge pressure on retail trading due to its massive growth Príncipe Real represents a hefty investment in restoration and which is being reinvented both in low- cost and deluxe brands. 44 | Investments
refurbishment of great architectural value together with the management of public areas.
C&W is getting into the urban regeneration market niche, by creating an across-the-board department throughout the company. What is its purpose and what does it intend to do?
We are carrying out a market analysis, repositioning our way of interpretation and our attitude. We are coming across several inappropriate situations in the market, we are struggling to understand what the market is looking for due to the fact it is constantly changing. Presently our real estate market equation is opposite to our current practice. Meaning that if in the past some players defined the price of final product after buying the land and proceed with the construction, today its mandatory to previously study end consumer, understand how much he can pay, and then we do a reverse calculation, from construction to the land. Urban regeneration is a transversal business because it goes through several C&W departments, in according with its specifications and the fields of know-how we have to offer. Rehabilitation is not only buying and selling. In this case, the owner wants to rehabilitate within a strategy of generating added value to the building. So, our research & consultancy department will establish the best path to follow, then our project management team defines a balanced licensing and construction project and our agency department places the building in Hotel, office and retail markets. In conclusion, what we propose before spending any money is to define a program which the developer which aims to eliminate risk and create value.
There are several barriers, from regional authorities and other entities, involved in urban regeneration, affecting the project licensing phase. Is this becoming simpler?
It is clearer and more adjusted, there has been a strong awareness from the regional authorities in order to speed up the real estate projects since it is known know what Lisbon needs. With regards to IGESPAR, it is distinctly searching to balance the city’s soul with consumer needs, sometimes facing stressful points in some details with listed or historical heritage buildings. There must be a greater will to take decisions for the common good according to the interpretation of the wider existing regulations from both state and private sectors.
Is there a considerable demand for investors to do up for rehabilitate for further renting? Who are those investors?
Unfortunately demand is not great. The market is de-capitalised, the banks are not financing and the prices still need some review. Today the challenge is to achieve a balance between asking for less money possible, through partnership to generate value. Many investors and innovating businessmen look for the right price and potential exists on real estate, but some adjustments still need to be done. The demand for large projects is even slower due to the lack of capital. But we can now say that the urban regeneration of our cities will be the engine driving the real estate market, where there still is a lot do to, our cities have to be recreated as there are considerable dilapidated areas with high urban potential which need to be integrated into the area in which they stand. | 45
[ BUSINE SS R E P ORT ]
7
8
9
10
1
2
4
3
5
Rui Rio calls for Consensus CHRIS GRAEME | Photos
At an International Club of Portugal lunch at Lisbon’s Hotel Fontana Park, Porto’s Mayor Rui Rio called on all political parties to lay petty squabbles aide to avoid ruptures and save Portugal’s Third Republic 46 | Investments
6
11
13
12
1. Leonel Neves • Mahomed Iqbal • Manuel Pombo Cruchinho • RUI RIO | Mayor, COUNCIL OF PORTO • Manuel RamalhO | President, ICPT • António Ruivo 2. RUI RIO | Mayor, COUNCIL OF PORTO • Manuel RamalhO | President, ICPT 3. Jorge Sousa Marrão | Partner, Deloitte • RUI RIO | Mayor, COUNCIL OF PORTO • Manuel Alves Monteiro • Carlos Loureiro | Partner, Deloitte 4. João Garcia Pulido • Sandra Neves • Henrique Medina Carreira 5. MarGARIDA MARTINS| aBRAÇO 6. LUÍS Melo | Boyden • José Côrte-Real | Board Member, SONAE 7. Margarida RuaS Gil Costa | Director, MUSEU DA ÁGUA 8. João Gonçalves de Sousa | Executive Director, BANIF • Diogo Silveira | CEO, Açoreana Seguros 9. Sérgio Martins Alves | Executive Director, Portuguese Chinese Chamber of Commerce & Industry • aNNE TAYLOR | President, American Club of Lisbon • Manuel RamalhO | President, ICPT 10. Manuel Alves Monteiro • RUI RIO | Mayor, COUNCIL OF PORTO • Rui Gomes Silva 11. Ana Carolina Pinho • Luís Santo | Mercedes-Benz 12. Fernando Rocha | General Director, Sabseg Seguros • Fernando Amorim | Açoreana Seguros • João Romão | Açoreana Seguros 13. Carmen Baptista da Silva • Baptista da Silva | Coordinator Advisor, United Nations Development Programme | 47
[ BUSINE SS INT E RV IEW ]
“ Who has capital available to invest will catch some opportunities as never seen before.
”
JORGE BOTA | Managing Partner, B. Prime
B.Prime
The different sides of
a common situation LUIS FIGUEIREDO | Interview
A synthetic but realistic analysis, going beyond evidence, needs to be taken in consideration to look for consistent and realistic solutions. From offices to residences, from investment to fruition, from yield to liquidity, all are to be considered together with the international general positioning of Portugal. Jorge Bota, Managing Partner of B.Prime, shares his knowledgeable thoughts on current Real Estate situation in Portugal. How is performing the office market segment in terms of commercialization? Its vacancy rate? Is there a zone that may be considered as an exception?
We are facing a market in a very difficult situation. It is very fragile with some activity as we are going through a less positive phase, and we may say that it shows a decrease of 50% considering the average of the last 10 years. Numbers will be similar to last year’s, meaning that we are considering 70.000m² versus an average of 200.000m² in previous years. The vacancy rate has been decreasing due to the total slow down in construction and many buildings were converted to residential and hospitality business.
We have been following the trend of the funds such as ECS that is already recovering many buildings in the area of Tourism.
Do we have currently in Portugal good securities and options to offer to investors in the different areas of real estate? Who are the investors?
Of course we have. Excellent products with excellent tenants remain in the traditional market segments. Actually, investors are looking for 8 to 8,5% yield in what small investments are concerned as Banks are not allowed to finance any type of real estate project. Actually it is required 100% equity capitals and consequently demand values are much lower. Regarding residential market segment, “buy Is price heavy adjustment necessary to normalize to let” investment is not performing well since profitability market conditions? Are there any zones where this has rates are around 4 to 4,5%, for which rent values must be been a practise? very low. In what building acquisitions are concerned, there Hardly, since prices of the office market segment are already will be a considerable value increase that may generate medium and long term capital gains, however under no very competitive, Lisbon is the third European city with guarantee. lower office market segment pricing. Present negotiation goes through a grace process and set up supports which bring down effective rental income within the rental period. What is necessary to happen in our country in order to attract institutional investors? Is our fiscal and legal In West corridor and “Parque das Nações” the rents have regulation stable? been decreasing, but Liberdade Avenue, as well as the market niche of all Prime locations in European capitals, is It is necessary to regain the trust of institutional investors. still holding prices and keeping occupancy levels. Us, B.Prime or other consulting companies, we are presenting In 2013, the upcoming of 3 additional new buildings, excellent investment solutions but the answer is “Portugal with their available areas, is an event that will further no, not now”, considering that we are talking about entities unbalancing the market. that manage other people’s money and therefore security and trust play the main role. Fiscal and legal regulation needs to Are we facing an opportunity market? Which is the trend? be stabilized, not to mention the actual lack of liquidity in our market, what means that there will be nobody to buy the Yes we are, with no doubt. Who has capital available to assets in case the funds decide to leave. Another fact, which invest will catch some opportunities as never seen before. has not been duly announced, is the trend of the last 7 years But we have the opportunist funds looking for discounts around 40 to 50%, as our market is too leveraged showing of international companies to centralize their operations in Madrid, having only a small branch office in Lisbon, with high value guarantees. nothing being done by any Government to counter the Therefore, we have many buildings in the hands of the tendency what is equally affecting our economy, real estate banks that necessarily have to be sensitive on the market business and employment. approach in order to minimize losses. 48 | Investments
| 49
Cempalavras
[ BUSINE SS OPINION ]
DIFFICULT MOMENTS
OPPORTUNITY TIMES
P
miguel marques dos santos | Lawyer & partner of GARRIGUES PORTUGAL
ortugal is going through difficult times. A decade without growth associated with a cycle of mainly unproductive public investment, together with an increase of private consumption based on indebtedness, pushed Portugal into more than predictable scenery: unsustainable increase of debt and public deficits, unsustainable increase of corporate and private debt, an unmanageable trade/ external balance and a distrust of the international markets regarding Portugal. The outcome is what we all are aware of: pre bankruptcy situation on April 2011, loss of national sovereignty (at least in financial terms), outside intervention (financial rescue contract with Troyka – IMF, ECB, and European Commission) and the implementation of a high demanding adjustment program with unavoidable recessive consequences. The consequences of the implementation of the adjustment program, which presupposes high levels of austerity as in all same kind of programs, have been severely experienced by the Portuguese, who, for the last year with great courage and sense of responsibility, have been through a significant increase of tax burden and of cost of living, a dramatic increase of unemployment (actually raising up to 16% with special emphasis on young unemployment) and an exponential increase of emigration (being the last alternative for survival of many families). Truth is, that although we are in the beginning of the journey (only from 2015 or 2016, the final outcome of the program will be effectively recognised), the performance of the country is being remarkable, at least in two essential aspects, I dare even say nuclear ones to the future of any economy: on one hand, it has been possible to restore
50 | Investments
our trade/external balance within about one year (current estimated 2012 result of 0,4%) and, on the other hand, it has been possible to regain the confidence of the markets (that currently transact Portuguese debt in the secondary market at an interest rate considerably lower than the practised one during 2011 summer). It is obvious that those two aspects alone are not sufficient (besides not being perceived by the majority of the people, who are much more worried with the cost of living and with the near future), but determinants to promote the adjustment of the economy, since they are directly connected either, with the economic model feasibility or, with the external confidence, and are essential to the return to the financing external market which is the primary condition for the survival of any open economy as the Portuguese one is.
still is in the very beginning and calling to be necessarily accelerated, sure is that both privatization program and legislative reforms have been implemented at a strong pace, and will produce immediate effects (although slowly progressive) in the evolution of Portuguese economy. In short, Portugal was in a desperate situation on April 2011, but is making its way, which is very hard one and not free of risks, but that shows already results and is allowing improving the perception of Portugal by its external partners and international markets. But does it mean that the already obtained results have replaced Portugal among the international investment destinations (in particular in real estate business, which is the one I know better)?
The answer to this question is not an easy one. Paradoxical as it may appear, the best It happens that together with the more answer is perhaps yes and no. On one macro-economic measures, where the side, we are living a time of opportunities, two above mentioned positive aspects are with some good value assets at an already inserted, the adjustment program further significant discount rate, from which the establishes a set of structural reforms, investors from emerging markets are which includes an ambitious program aggressively taking advantage (essentially of privatizations (aiming to achieve the Brazil, Russia, China and other Asian reduction of the State’s weight in the countries), but, on other side we continue economy), an also ambitious reforming to face some difficulties to recapture program of the State (aiming to turn it lighter, more efficient and more adjusted institutional of the northern European countries, to whom the available good to the actual situation) and a number market opportunities do not yet balance of legislative reforms related to crucial the macro-economic risk that they believe subjects of the economy, such as the reform of the labour law, the competition is still existing. True is that the real estate market is cyclical, and the time of good law, the insolvency law, the renting law, opportunities is limited by its nature: among many others. in some moment, that may come soon, True is, that significant steps have been the European institutional investors, the done on what concerns structural reforms ones that always invested in Portugal, will during this first year of implementation of realize that they cannot afford to miss the the adjustment program. In fact, although good opportunities that the Portuguese the State reform (clearly the most important) market is presenting.
bureau veritas, your partner
for the various stages of your business n Inspections n Audits n Tests n Certification n Classification of Ships n Monitoring and Technical Assistance n Training
Providing a range of services and innovative solutions in the areas of Quality Management, Environment, Health and Safety, regardless of their product sector, assets or business.
Bureau Veritas Portugal www.bureauveritas.pt info@pt.bureauveritas.com 707 200 542
[ PA RT NE R R E P ORT ]
REAL ESTATE FROM PORTUGUESE SPEAKING COUNTRIES daniela costa | Real Estate Funds, Portfolios & Resarch, PRIME YIELD
Real estate market is going through a growing period, and therefore is attracting international capital. Despite last year slowdown, the growth will pursue and the relation between real estate financing credit and GDP is an important indicator (in Brazil, this indicator may achieve 5% in 2012). Office market shows an appreciation of the properties, although smaller than in prior years, since there still is demand for offices and scarcity of usable land. The higher registered values are in São Paulo, presenting a rent of R$175 per m² and in Rio de Janeiro with R$190 for A class offices. In Cape Verde, the tourism growth has stimulated and pushed other economic sectors, and the different tourism indicators are showing positive performances. The residential tourism is one of the most important components of the strategy for asserting it as touristic destination. However, with the financial international crisis, this market has registered a contraction of investment over the past years. As such, new business formats are important to the market sustained development, as well as strategies on international promotion, looking at tourism as an exporting sector. Generally speaking, Portuguese businessmen currently discover in Mozambique several benefits. Standing as number one, is the economic growth. Between 1996 and 2007, the Mozambican economy has increased at an annual average rate of 8%. In 2011, it is estimated that GDP has grown 7,2%, and for 2012, the projected growth shows 7,5%. Enjoying a privileged location and a coastline of 2.500km, the country has a positive business and investment environment, which is fostered by the political ANGOLA
stability. And it must be considered and enhanced the good economic relations with Portugal as well as the similarity of both legal systems. Regarding real estate, the benefits are mainly focused on the increase of middle class purchasing power; on the arrival of expatriates and search of real estate products to set companies; on the continuous surplus of demand towards supply; on the guaranteed significant profit margins, as well as the upcoming of real estate products addressing the different segments. And, not to forget the focus on urban recovery and reconstruction duly perceived on structuring projects under development, which, in our opinion, will have a positive impact in the real estate market. The development of those countries require an enormous involvement from international corporations, an opportunity to be explored by the Portuguese companies, according to the increasing need of internationalization as per the actual economic and financial context. The Portuguese speaking countries must then be faced as a platform, where different players may act under standardized processes and norms, adding value to the economy. To get the right local partner is essential, as well as becoming aware of the economic, social, legal, legislative, politic and cultural specifications of each of the markets. In each market segment where is active, Prime Yield assures a set of services with the support of most demanding and international skills (common denominator to all countries where it is present – compliance of RICS norms), playing a determinant role in the decision process on potential investments. Average rate and Yield
NEW OFFICES Unit average value (USD/m2)
CBD
Average rate (USD/m2/month) Yield (%) Unit average value (USD/m2)
Cidade e Praia do Bispo
Average rate (USD/m2/month) Yield (%) Unit average value (USD/m2)
The investment focus on Portuguese speaking markets (Lusofonia) appears as an alternative to bypass the difficult times that Portugal is going through. The Portuguese speaking countries are presenting themselves as a global power, capable of generating countless opportunities and mutual benefits.
The Prime Yield as experienced consulting and real estate assessment company, and considering its know-how of each market, presents the inputs that lead real estate investment, considering the existing opportunities and based on data from the Research Department.
Considering internationalization as one of the company strategies, Prime Yield has completed the process of setting up under local Law companies, in the 5 countries in which is represented: Angola, Brazil, Cape Verde, Mozambique and Portugal.
Namely in Angola, Luanda is considered one of the world cities going through the larger conversion process in real estate promotion and construction, and there are clear opportunities in the different segments: residential (first residential housing and low rent segment projects, according with two situations: i) due to oversupply on high and medium segments, and ii) supply deficit on medium and low segments); offices (despite the economic slowdown, demand continues to absorb the existing production, being expected that in the next 4 to 5 years, supply will meet demand with the consequent standardization of market values); tourism sector due to the potential of natural and cultural resources, and the increasing incoming travel, essentially on account of business trips.
These 5 markets have as common denominator to all of them, the language. There are also similar characteristics in some procedures and in legal terms within licensing. We consider that it is decisive for Portuguese real estate promoters and institutional investors to take a look into those emerging markets. The Portuguese speaking countries markets must be consider as a priority to the economy and to the Portuguese companies. Economic growth (Angola GDP growth rate over 7%; Brazil and Cape Verde, around 5%; Mozambique, near 7,5%), political and social stability, income and middle class icrease and house deficit are some of the factors that are investment drivers and enhance the several opportunities, particularly for real estate business, but not neglecting the also existing opportunities for other economic activities, taking into consideration each market own specifications. 52 | Investments
Brazil is a continental country and the opportunities are scattered throughout the whole territory, having each region its own characteristic. The country has been showing an economic, political and social increasing performance that has enabling the decrease of unemployment and the increase of middle class and consumption.
Luanda Sul
Average rate (USD/m2/month) Yield (%)
9.882 140 17 7.667 115 18 6.811 105 19 02
BRAZIL
CLASS A - OFFICES São Paulo Rio de Janeiro
Prime rate (USD/m2/month)
2-5
Prime rate (USD/m2/month)
190
Vacancy rate (%)
1-3
Average rate (€) Unit average value (€/m2) Average area (m2)
Ilha de Maio
Average rate (€) Unit average value (€/m2) Average area (m2)
Polana Cimento A
125
08
0
120
160
200
1.500
2.000
2.500
30
40
50
175.000 2.188 80 130.000 1.585 82
NEW OFFICES Bairro Central C
100
Unit average values
0
MOZAMBIQUE
5
175
Vacancy rate (%)
RESIDENTIAL TOURISM - NEW APARTMENTS (T2)
Ilha do Sal
07
Rent value and Vacancy rate
04
CAPE VERDE
55
500
1.000
Rendas médias Unit average value (USD/m2) Average rate (USD/m2/month) Unit average value (USD/m2) Average rate (USD/m2/month)
2.400 28 2.200 25 0
10
20
| 53
[ BUSINE SS R E P ORT ]
8 1
9
10
2
11
3
4
13
5
6
Can Portugal compete successfully for
Foreign investment? CHRIS GRAEME | Photos
Vida Imobiliária magazine organises a conference lunch on ‘Portugal’s Attractiveness in Real Estate Investment’ at Lisbon’s Hotel da Estrela Cantina da Estrela restaurant with keynote speaker Laurent Ternisien, managing director of IPD Global. 54 | Investments
12
7
14
15
1. Laurent Ternisien | Group Managing Director, IPD • Paulo Soeiro de Carvalho | Director for Economy and Innovation, Lisbon City Council • António Gil Machado | Managing Director, Vida Imobiliária 2. Laurent Ternisien | Group Managing Director, IPD 3. Luis Francisco | Country Manager, IPD Portugal • Norberto Soares Coelho | Director, BPI • José Freitas Araujo | Director, Millennium BCP 4. Paulo Silva | Managing Partner, Aguirre Newman • João Leal Barreto | Board Member, Chamartin Imobiliária 5. Fernando Costa | Comercial Director, Banif Imobiliária • Fernando Vasco Costa | Strategic Consultancy, Jones Lang Lasalle 6. Diogo Pinto Gonçalves | Board Member, SELECTA • Filipe Amado | Vice President, SAGESTAMO • Pedro Botelho | Square AM 7. Lydia las Casas | Associate, Broadway Malyan • Maria Rosa Abeijón | General Manager, 3G Office Portugal 8. Pedro Seabra | President, CBRE • Hermínio Carreira Querido | Board member, Estamo 9. Robert C. Gericke | Partner, Proventus Property • Vasco Manaças | Agency Director, Max Finance 10. Nelson Gaspar | ISEL • Filipe Vasques | Professor Adjunto, ISEL • João Franco da Rosa | Director, UON Consulting 11. Pedro Vieira | Schmitt+SohN • Carlos Vasconcelos | Schmitt+Sohn • Miguel Leichsenring Franco | Board Member. Schmitt+Sohn • José Pérola | Schmitt+Sohn 12. Maria Empis | Senior Consultant, CBRE • Francisco Horta e Costa | Managing Director, CBRE • Tim Seconde | Associate Director - Capital Markets, CBRE • João Flores Ribeiro | Asset Manager, CBRE 13. Bruno Mata | Director, Best Place Retail & Offices • Osvaldo Nogueira | Marketing & Commercial Director, Vida Imobiliária 14. Pedro Valente | Development, CBRE • Bernardo Simões | Property Division, F&C Investments • Luis Francisco, Country Manager, IPD Portugal 15. Pedro Ribeiro Reis | Finivalor • Miguel Correia | Pura Imagem | 55
[ BUSINE SS PROMO ]
SIL 2012 REAL STATE AWARDS CATEGORY: SUSTAINABLE CONSTRUCTION
*CATEGORY: RENTING
Project: Arrendamento Seguro 1 Company: Predimed
Project: Espaço Amoreiras Centro Empresarial 2 Company: The Edge Group
Project: myOffice 3 Company: Hybrid business center
Project: Belas Golf 4 Residences Sintra Company: ACFimo
Project: Casas em Movimento 5 Company: Idem
Project: Centro Losgístico da Maia 6 Company: Garland Logística
Project: Solução Arrendamento 7 Company: Norfin SGFII SA
Project: Empreendimento Av. Almiranre Reis Company: Santa Casa
Project: Oferta Troca de Casa Company: CGD
Project: Douro à Vista Vila Nova de Gaia 8 Company: ACFimo
Project: Pestana Troia Eco Resort 9 Company: Sociedade Imobiliária Eco B3
Project: Pátio das Camélias 10 Company: Habitâmega Construções
CATEGORY:URBAN DEVELOPMENT
Project: Finipredial 11 Company: Edifício MPA
Project: Edifício do Roca, Lisboa Gallery 12 Company: Roca, SA 10
Project: Ed. Zon Metropolis 13 Company: Multi development Portugal
SUBCATEGORY: TOURISM
Project: Hotel Park Hotel Porto Aeroporto Company: Idem
Project: Hotel Rural da Quinta do Vallado Company: Menos é Mais Arq. Associados
SUBCATEGORY: OFFICES
SUBCATEGORY: RESIDENCIAL
Project: Casa no Juso Company: ARX Portugal
Project: Restelo Plaza 20
Company: Grupo Bernardino Gomes
Project: Casa no Possanco Company: ARX Portugal, Arquitectos Lda
Project: Casa em Leiria Company: ARX Portugal
Project: Alta de Lisboa Company: Casas do Parque
Project: Ed. Mythos Company: ARX Portugal
Project: Garrett 29 Company: Coporgest
Project: Casa do Arco 21 Company: Coporgest
Project: Stadium Benfica, Condomíno Privado Company: Grupo Libertas
Project: República 25 22 Company: Cerquia
SUBCATEGORY: serviCEs & COMMERCE
SUBCATEGORY: PUBLIC BUILDINGS
Project: Estação Fluvial do Terreiro do Paço Company: E.P.E
Project: Estação Aeroporto Company: E.P.E
Project: Centro Regional de Sangue de Coimbra Company: ARX Portugal
Project: Forúm Sintra 23 Company: ARX Portugal
Project: Évora Retail Park Company: Evret, Investimentos e Promotores. SA
CATEGORY: URBAN REhABILitATION
Project: Palácio Estoril Residências 14 Company: Palácio/ FIIF
Project: Ed. Fernando Pessoa 15 Company: Café, Sociedade de Construções, Lda
Project: Village Marina de Olhão, Real Marina Hotel & Spa Company: Grupo Bernardino Gomes
Project: Hotel Bela Vista Praia da Rocha 18 Company: Hotéis de Charme, SA
Project: Belmar Spa Beach Resort Company: Oceano Group
Project: Rua Ivens n.º 52-64 Company: RRJ Arquitectos
Project: Rua de São Bento, n.º 223-227 | 229-233 | 235-241 Company: EPUL
Project: Rua de São Bento, n.º 302-310 Company: EPUL
Project: Av. D. Carlos I, nº 94-96 Company: EPUL
CATEGORY: eNERGY EFFICIENCY * Several projects are distinguished at multiple categories:
Urban Rehabilitation; 2 Urban Rehabilitation, Offices; Offices; 4 Energy Efficiency, Residencial; 5 Energy Efficiency; 6 Energy Efficiency, Industries & Logistics;7 7 Real Estate Funds; 8 Energy Efficiency; 9 Energy Efficiency, Tourism; 10 Habitação, Energy Efficiency; 11 Service & Commerce, Urban Rehabilitation, Real Estate Funds; 12 Urban Rehabilitation; 13 Offices; 14 Real Estate Funds; 15 Residencial; 16 Tourism; 17 Residencial; 18 Urban Rehabilitation; 19 Service & Commerce, Energy Efficiency; 20 Urban Rehabilitation; 21 Urban Rehabilitation; 22 Urban Rehabilitation; 23 Residencial 1 3
Project: Aldeia do Juso Company: FIIF, Santa Casa 2004
56 | Investments
Project: Hotel 3k Europa 16 Company: Alutel, Exploração de Hotéis e restauração, Lda
Project: Condomínio Casa de Folgares 17 Company: Frames, SA
Project: Galeria Comercial Jumbo Famalicão 19 Company: Immochan, SA
Project: Empreendimento Alto do Olival Company: FIIF Lisbox
Project: Rua Benformoso, n.º 168-180 Company: EPUL
Project: Edíficio Ritz Club Company: Maribel Sobreira Arqta
Project: Palácio Valada e Azambuja Company: FIIF Santa Casa 2004
| 57
[ BUSINE SS R E P ORT ]
7
2
1
4
1
5
Social measures in partnership
Pedro Mota Soares at the International Club of Portugal CHRIS GRAEME | Photos
Addressing the International Club of Portugal at Lisbon’s hotel Fontana Park, Social Security Minister Pedro Mota Soares explains the ‘Importance of the Social Economy in Times of Crisis’ 58 | Investments
8
3
9
10
6
11
12
1. Manuel RamalhO | President, ICPT • pedro mota soares | Minister, MINISTRY OF SOLIDARITY AND SOCIAL SECURITY 2. Eduardo Catroga | Chairman, EDP • Luis Alves Monteiro | Managing Partner, BOYDEN 3. Choi Man Hin | Board Member, CASINO ESTORIL • Ana bela césar • João garcia pulido 4. João Patrício | Board Member, JAPL • António Correia 5. André Moz Caldas | General Assembly, ORDEM DOS MÉDICOS DENTISTAS • Gonçalo Carrilho | ICPT 6. José Ferreira de Almeida | President, CAIXA DE PREVIDÊNCIA DOS ADVOGADOS E SOLICITADORES (CPAS) • Rogério Alves | Laywer, ABBC 7. SUSANA BRITO | Manager, Restaurant Tagide • Manuel Jorge Pombo Cruchinho 8. Jorge Monteiro | General Director, COMFORT KEEPERS • Rui Trigo Guedes | Managing Director, LÓGICA IBÉRIA 9. António Cabral Barbosa • Clementina Paiva • Helio Ramos 10. Miguel Cardoso e Cunha | Advisor to the board, COMPTA • José Ferreira de Almeida | President, CPAS 11. Carlos Rato | Director, INATEL FUNDAÇÃO • Isabel Silva • Moreira Marques 12. João Rodrigues | President, IBEROL • Eugénio Viassa Monteiro | ESCOLA DE DIRECÇÃO E NEGÓCIOS (AESE)
| 59
[ PA RT NE R S OPINION ]
CREATING
relationships AND DEVELOPING SKILLS VALTER ALCOFORADO BARREIRA | Executive Director, KNOWING COUNTS
The Portuguese-German Chamber of Commerce and Industry Young Entrepreneurs and Professionals Case Study (WJP - Wirtschafts Junioren Portugal).
T
Building Social Capital is of the greatest importance for professionals because it is so highly prized these days as a vital raft of skills and a path to competitive advantage. But what actually is Social Capital? In one of its definitions that I most like, it is a combination of a number of people from which the support and resources that they have within their grasp and at their disposal can be expected. In another , equally powerful, it is described as the Capital Value of improvements in economic performance that can be attributed to highly-trusted social networks.
commitments to be taken on, such has recommendations and references, or the sharing of scarce and highly valuable social information, creating reciprocal relationships described as being mutually beneficial for the personal and professional success of those involved in the same.
Professional groups like the Portuguese-German Chamber of Commerce Young Entrepreneurs and Professionals (WJP Wirtschafts Junioren Portugal), enable both these types of bonds to be developed. On the one hand they offer regular contact, an exchange of resources, the creations of friendships and the This description, when considering networks, stresses the sharing of emotions, the development of activities, overcoming ‘Social’ aspect and includes improvements, gives prominence problems and achieving common goals that create feelings of to the ‘Capital’ aspect, brilliantly distilling the benefits and way ‘camaraderie’ leading to Strong Bonds. On the other hand, they of creating them. provide access to different realities and social circuits that enable information and opportunities, that don’t exist in one’s natural This given, one of the challenges that can be made is ‘how then circles, to be accessed, because its members are individuals do I increase my Capital Stock?’ with experiences, ages, professions, nationalities and different There are various routes, philosophies, strategies and techniques. backgrounds of training, united by at least one common goal We’re going to discuss one of them here: professional affiliations. in the case of the Portuguese-German Chamber of Commerce Young Entrepreneurs and Professionals (WJP - Wirtschafts Junioren Portugal) - the development of Portuguese-German Belonging to a professional group, like for example the economic, social and cultural relationships. Portuguese-German Chamber of Commerce Young Entrepreneurs and Professionals (WJP - Wirtschafts Junioren Portugal) is an extremely useful route for creating Social Capital. I’d like to wind up by heartily encouraging you to think about getting involved in a professional group, or eventually getting more active in the one that you are a member of, and reflecting It’s about knowing that today people prefer doing business, working and sharing information with people they know, like on the benefits that you’ve had on taking part in them, and and trust. Therefore, professional affiliations can provide an increasing your involvement in these activities. Whatever the important stage to get visibility, cultivate likeability and win case, here are some practical recommendations: over the confidence of others, creating a high-value network • Don’t join by impulse. Select the organisation that potentially of contacts. deserves your efforts and dedication, according to your goals; The bonds that unite professionals can be divided into two • Take part an an invited guest in one or two group activities that large groups: Weak Bonds and Strong Bonds. In a strategy you’ve identified as having a potential interest. In this occasion of creating Social Capital the development of both bonds talk to recent and older members. Ask questions that will later should be considered for different objectives. For example, we enable you to draw your own conclusions (should I join this socialise with lots of people in relationships that are merely group of not?). ‘acquaintances’ to gain access to and collect new information that normally isn’t available to us in our social circuit and, on the other hand, we socialise with less people but ones that are strategic to our objectives in high-trust relationships that enable vab@knowingcounts.net
60 | Investments
Tolomeo XXL by M. De Lucchi
www.foton.pt
•
geral@foton.pt
• T:+351 214 169 070
[ BUSINE SS R E P ORT ] Um serviço de qualidade a verdadeiros preços baixos no 1º grupo de fitness clubs “premium low-cost” em Portugal.
2
1
3
4
ARREFEÇA LÁ FORA AQUEÇA NO “HUT”
5
GINÁSIOS PREMIUM
A PREÇOS LOW-COST!
C
M
Y
CM
MY
CY
6
7
INSCREVA-SE ON-LINE A PARTIR DE
CMY
K
Portuguese real estate projects
Finding new ways of financing
WWW.FITNESSHUT.PT
CHRIS GRAEME | Photos
The future of the Portuguese real estate industry within the context of the investment crisis in Europe was a key topic at the Confidencial Imobiliário organised seminar ‘Forum Imobiliário e Europa - que futuro?’ at Lisbon’s Order of Architects. Sérgio Monteiro, Secretary of State for Public Works, Transport and Communications, João Salgueiro, economist and António Vitorino, lawyer were key-note speakers. 1. ANTÓNIO GIL MACHADO | General Manager, IMOMETRICA • Francisco Ferreira Lima | Business Director, CAIXATEC 2. Fernando Bugulho, Architect and the event moderator • JOÃO SALGUEIRO | Ex-Minister of Finance 3. José Freitas Araújo | Director, MILLENNIUM BCP 4. João Belo Rodeia, Beadle of the Portuguese Order of Architects 5. José António R.F Carvalho | PALPITESTRATÉGICO 6. JOÃO SALGUEIRO | Ex-Minister of Finance 7. Miguel JÚDICE | President, Associação de Hotelaria de Portugal (AHP) • Rui Alpalhão | CEO, FUNDBOX • Cristina Vieira | Architect 62 | Investments
FITNESS HUT AMOREIRAS // LISBOA
FITNESS HUT CASCAIS
FITNESS HUT TRINDADE // PORTO
FITNESS HUT ARCO DO CEGO // LISBOA
O primeiro “HUT” nasceu bem no coração das Amoreiras!
O clube mais recente está pronto para os seus treinos “HUT”!
Vive no Porto? Então treine no “HUT” do C. Comercial Trindade.
O novo “HUT” no centro de Lisboa abre já este mês!
amoreiras@fitnesshut.pt
cascais@fitnesshut.pt
trindade@fitnesshut.pt
arcodocego@fitnesshut.pt
PA RT NE R S CCAR AR ] [ PARTNERS
250 CDI
The powerfull SLK 250 CDI
The reliable and appealing 250 CDI engine from Mercedes provides an impressive performance to any of those exclusive models of Mercedes range. The quiet and smooth 204 hp engine is coupled to the automatic 7G-Tronic gearbox, it ensures considerable speed together with low fuel consumption and it offers a supreme driving pleasure. Once getting in, the high finishing quality, which the brand preserves in all models, is easily perceived. When turning the ignition key, what is noticed is the power of a diesel engine, but once we start rolling we feel such suppleness from the engine that we wonder if it is really a diesel one. CLS 250 CDI – Exclusive design for this saloon coupé which associates the sporting spirit with a high level of comfort for 4 passengers Price – since 71.500€ C250 CDI Station – A C Class which space and quality comply with the prestige of this referral segment Price – since 48.750 € E 250 CDI Coupe – An elegant and sporting style has created these dashing and unique lines Price – Since 57.500 € SLK 250 CDI – The most economic and compact roadster offers a striking agility performance, and provides an enticing rare driving Price – since 49.950 €
C250 CDI Station
E 250 CDI Coupe
CLS 250 CDI
64 | Investments
| 65
Looking for a house in Portugal?
Discover the view and the home of your dreams...
“VIVA IN PORTUGAL� is a multiplatform concept with the mission of promoting Residential Tourism in Portugal. It includes a web site, communication through national and international press as well as presence in trade events.
Find out more on our site vivainportugal.com
[ PARTNERS CAR]
Where all threads come together. 8 –10 October 2012 Messe München, Germany 15th International Trade Fair for Commercial Property and Investment www.exporeal.net
Perfect
Restyle T
his 2012 Honda model, with its new front design, presents external lines of unquestionable elegance. Style, uniqueness and quality are prevailing characteristics. In functional terms, according to what we are used to get from this Japanese brand, the completely noiseless finishing stands out as well as the comfortable leather seats and the multiple regulations of the front ones that easily find the ideal position. This is to say that it is the ideal station for a 4 adults’ drive. Regarding the engine, it has the most advanced technology I-DTEC. The 150 horsepower engine of this version performs quietly and smoothly. An excellent 6 speed manual gearbox, a suspension system that offers on board comfort,
Honda Accord Tourer Executive 2.2 I-DTEC
even at higher speed, the below average fuel consumption and pollution rates are additional highlights. The Accord Tourer is equipped with bi-xenon headlights and with ADAS system (Advanced Driving Assistance Program), a security technology that protects from eventual driving errors as lane changes and distance from the car ahead. Besides status and image, the Accord model becomes the ideal alternative as a corporate car, due to the excellent conditions to the corporate segment, among which are the most attractive price and the 5 years warranty. Corporate price: from 33.193€
Common theme: Your success Take advantage of the unique networking potential that EXPO REAL has to offer to make valuable contacts and cultivate existing business ties. Some 37,000 real-estate professionals representing the entire value chain meet at the industry’s indispensible business platform. Be there! Order your ticket now:
www.exporeal.net/tickets 68 | Investments
For property advice covering every possible angle, look no further. We’ll help you find value every time. To find out how, talk to us at stand A1.210 at EXPO REAL 2012 or visit: www.cbre.pt