Issue Nº 6 Partner in Business Magazine

Sustainable Investment

:: Summer 2013

Sustainable Investment 29

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Issue Nº 6 :: Summer 2013

Issue Nº 6

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• Thatcher’s haunting Europe!

• Surviving e-commerce • Water skiing in Portugal • Bureau Veritas • Prime Yield • Aguirre Newman • Palpitestrategico

cempalavras.pt

Demonstrate your commitment to sustainable Development Bureau Veritas offers various services related to the sustainability of organizations: n Social responsibility management: SA 8000; NP 4469; ISO 26000 n Sustainability reports n Environmental management: ISO 14001; EMAS; GHG emissions; Emissions verification; Carbon Footprint; CDMs n Health and safety management: OHSAS 18001; Np 4397; SCC n Other referentials

Bureau Veritas www.bureauveritas.pt info@pt.bureauveritas.com 217 100 900

INDEX

03 • Message from the director 06 • The On-line-Off-line sales war 08 • Real Estate recovery –­­ all a flash in the pan?

10 • Why the ghost of the Iron Lady is still haunting Europe?

14 • Prime Yield: on the huge potential in Mozambique 20 • Bureau Veritas: Why Sustainable Development is here to stay

22 • After the crisis: the Portuguese banker who says it’s all about restoring trust 26 • Aguirre Newman: opportunity knocks in the Portuguese Real Estate market 28 • Jones Lang LaSalle: The return of the High Street 30 • CBRE: the new breed of investors in town 32 • Cushman & Wakefield: time to go shopping?

34 • Palpitestratégico: can shopping centres weather the crisis?

36 • Neinver: it’s all about a sense of style 40 • Sonae Sierra: developing shopping centres all around the world 44 • APCC: Can traditional retail survive on-line shopping?

49 • Knowing Counts: on telling a good yarn!

50 • Valor do Momento: a bespoke business service 52 • A quick Quiz: what have nature and money got in common?

56 • Expo Real 2013: Discussing the Euro crisis and its effects on tourism 58 • Invest Lisboa: why Lisbon is the perfect platform into Africa and Latin America 62 • Spot and Talent: Why Ski Club Quinta Grande is training champions?

DIRECTOR | Luis Figueiredo Trindade • lft@partnersinbusiness.info COMMERCIAL DEPARTMENT | geral@partnersinbusiness.info EDITOR | Chris Graeme • chris@partnersinbusiness.info DESIGN CONCEPTION | André Freire • David Martins DESIGN DEVELOPER | Alice L.C TRANSLATION | Chris Graeme SPECIAL CONTRIBUTORS | João Carvalho • Valter Alcoforado Barreira PHOTOGRAPHY | Chris Graeme • Media Consulting 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.

Sustainable Investment| Issue Nº 6 – Summer 2013 Published quaterly and owned by Bravespiral – Comunicação, Unip. Lda. Rua Sarmento de Beires n.º 35 C | 1900-411 Lisboa | 21 84 716 16 Registo na ERC nº 126184 | Annual subscription fee: 25 euros / Bi-monthly www.partnersinbusiness.info Reproduction of material in this magazine in any form is prohibited without prior written permission from the Partners in Business team.

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

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[ EDITOR IAL ]

RETAIL BAROMETER FOR THE ECONOMY OF NATIONS

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LUIS FIGUEIREDO TRINDADE | Director, PARTNERS IN BUSINESS

What’s happening to retailers (whether on-line or off-line) is, without a doubt, a daily barometer for the nation’s economy and, contrary to what is thought, more than 80% of the Top 250 retailers (240 companies) in the last few years of the crisis posted an increase in retail revenue...

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oday, the retail industry operates in an environment with levels of competitiveness never seen before. Some challenges are new, however, it is the intensity and speed of change that has become the true driving force behind the growing complexity of the market. The retail industry was the target of a long cycle of economic prosperity, sustained by many factors, but, in most Western European countries this boom has come to an end.

At the rate that new global retailers entered the market, competitiveness arose on various fronts, including on the part of already established retailers, that decided expand their product range to boost levels of consumption and, also, on the part of new players that didn’t even have a shop. The truth is that internet retailing has grown by double digits for much of the last 10 years, taking market share from traditional stores and shopping districts. These changes have been reflected in the behaviour of the shopper and their purchasing habits: loyalty, location and convenience have become less important factors. Today, the consumer is educated, acquiring knowledge (about products/prices) and, apart from access to information, is exposed to mechanising options that they never thought existed. A new consumer profile has arisen as well, which demands the same development from retail and it too has been targeted.

Trying the brand at points of sale continues to be part of our culture but we cannot forget that the growth of on-line shopping and social networks are the new means of “trying out” products. In this sense, shopping centre developers and operators have to be well aware so that in the long-term traditional centres of commerce do not turn into service and leisure shopping centres. Already in the luxury segment, various brands have opted for prime areas in city centres (in various European capitals) engaging in traditional high street shopping to the detriment of shopping centres. If on the one hand it is harmful for developers, than on the other hand they create an energy and attach value by seeking out real estate assets in these areas, regenerating cities and creating exclusive areas of great demand.

What’s happening to retailers (whether on-line or off-line) is, without a doubt, a daily barometer for the nation’s economy and, contrary to what is thought, more than 80% of the Top 250 retailers (240 companies) in the last few years of the crisis posted an increase in retail revenue with most of the companies experiencing declining total sales being caused by business sales or restructuring rather than a deterioration in their core business.

For these reasons we cannot allow the IMF and its mission to preserve financial and monetary stability (by cutting fiscal deficit through tax increases and reduced spending) to strangle the economy. Such suffocation would see purchasing power and quality of life deteriorate to the point of bringing consumer spending, and that part of the economy that depends on it, to a standstill. A strong sense of pragmatism is needed when developing policies so that consumer confidence indices grow in a natural and sustained way, creating that pattern of healthy consumerism that is vital for our economy.

[ PA RT NE R S FE AT U R E ]

ON-LINE SALES VS SALES

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IN SHOPPING CENTRES & TRADITIONAL COMMERCE JOÃO CARVALHO | CEO, PALPITESTRATÉGICO

raditional commerce in many Portuguese cities is already available on the Internet. Some trade associations have already made this facility available to traders as part of, for example, the “Rede Gestus” (Gestus Network) project.

This support programme for traders began to be implemented around 3 years ago and by the end of 2012 had a positive balance. However the number of traders that have signed up to the new technology is few and it is necessary to continue to join this network which already embraces various districts in Portugal and whose on-line platform will permit traders to buy and sell in bulk.

B2C defines an image of an up-to-date company, showing an organisation of a developed character, modern and able to offer a quality product or service.

added promotion of brands and, at the same time, getting more receipts from consumers that use the Internet.

The consumer is not necessarily the customer, indeed the consumer could still be just getting to know the products and services via the Internet, whereas in a shopping centre, the impulse to buy turns this consumer into a customer.

•option The virtual shop also offers the of electronic commerce aimed

From the consumer’s point of view, the 8 | Sustainable Investment

at businesses of any size, whether small, medium or large.

THE DISADVANTAGES

•intended The logistics associated to the business model. This type

of company can only survive if it has the exact notion of its expectations, necessities and, not least, the service that the clients demand change constantly.

•having The fact of a supply company not in stock one of the products

Thousands of Rede Gestus cards have already been distributed which offer special discounts to customers in shops that have signed up, which makes traditional retail more competitive.But it is also imperative that our traders believe in this “Rede Gestus” and it is, on the other hand, an obligation for associations to, apart from training traders, create facilities for the traditional trader to become more competitive in times of crisis.

HOW ARE ON-LINE SALES AFFECTING OR NOT, AS THE CASE MAY BE, SALES IN SHOPPING CENTRES AND TRADITIONAL COMMERCE?

With the development of Internet tools, new ways of selling products have arisen.

ordered and considered essential by the customer, also can put at risk the performance of the supplier and the gap between information on existing stock and actual availability to be able to supply a particular order.

•moreThedemanding customer of the on-line world is that the customer in the THE TWO GREAT ADVANTAGES OF THE B2C CAN BE RESUMED AS FOLLOWS

•shopRetailers can construct a virtual on-line, benefiting from the

physical world. On the Internet, words have more impact, if the company fails to satisfy their desires, they can transmit a message a lot quicker than a possible customer in traditional retail, verbalising their discontent not to five friends but rather 5,000.

ON-LINE STORES

There’s not point creating something

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At a time when technology is part and parcel of our lives and helps everyone, we’re looking for mobility. We want to know that our needs will be met at any given time, but we don’t want to be bothered at all.

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static, without identity and interactivity. It is necessary to call attention to small details, and that includes content and the wealth of information about the products and e-commerce operations.

Another point that can bring prosperity to a shop is the investments and efforts made in advertising. One needs to know the search mechanisms and plan campaigns on the social networks.

Interactivity is of extreme importance, indeed talking to your consumers means knowing them.

Once these steps have been taken, the ideal thing would to not only invest in amounts, but, mainly, in time, with the aim that the shop should stand out for its perfection or how sought after it is on the net. And as to mistakes, without a doubt, all perfecting processes have some problems, but they shouldn’t be repeated, that’s why care and attention are key here. Being on the Internet isn’t cheap.

But the real issue here isn’t just the consumer’s personal satisfaction in relation to on-line shopping, but mainly the probability of he or she returning to buy in the same shop in the near future.

SHOPPING CENTRES IN THE DIGITAL WORLD

To be effective, a campaign should make the most of on-line and off-line strategies,

and ensures that its brand is in the customer’s mind.

Today it is possible to check film times while still in your car on the way to the shopping centre and even buy your ticket. These are service options that mobile applications offer the user.

They are ways of bringing convenience and practicality to daily life and thereby establishing firm relationships.

By analysing the reports of the on-line version of a campaign, it is also possible to pinpoint its strong and weak points off-line too, redirecting it in such as way as to get the desired results.

Making it easier for the consumer to reach the brand in ways that go beyond campaigns is also important.When the shopping centre is on the social networks, for example, the consumer realises that it has a wider platform, a place where he or she feels more secure in expressing opinions.

Perhaps he or she isn’t in the habit of chatting to a telemarketing assistant, but they are likely to use Facebook on a daily basis.

And “social shopping” is born. A shopping centre, in the end, should be a place of leisure and not just shopping.

Let’s just suppose that, on accessing the cinema page of a shopping centre site, the user is invited to join a loyalty scheme which brings countless advantages.

At a time when technology is part and parcel of our lives and helps everyone, we’re looking for mobility. We want to know that our needs will be met at any given time, but we don’t want to be bothered at all.

On the street the customer sees this same content on a moving advertising board and, on a poster stuck up in the box office. By using on-line and off-line facilities, the shopping centre becomes more effective in its communication.

Without seeming invasive, it is present

To achieve this, the brand must always be visible, but discreetly so. It must be there without being intrusive. On-line tools mean that the brand can adapt itself to the habits of the consumer and enable them to be in control of the contact that they want to have with the same. 

so as to make them complimentary. Each aspect of planning should be turned into a unique detail, able to be monitored and have its return measured.

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[ BUSINE SS OPINION ]

REAL ESTATE INVESTMENT

THE BEGINNING OF A NEW CYCLE? MIGUEL MARQUES DOS SANTOS | Lawyer & partner of GARRIGUES PORTUGAL

The Portuguese real estate sector has suffered its worst crisis in a generation. Miguel Marques dos Santos, Head of Real Estate and Urban Planning Department of Garrigues Portugal, asks if the signs of recovery are here to last or are just a flash in the pan?

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he real estate sector has, since 2008, gone through an enormous crisis throughout the whole of Europe. This is a fact, felt by all movers and shakers in the market.

Portugal (which will cease to be a market of new construction, on the outskirts of cities, and instead will become a market of rehabilitation, in urban centres), but the fact is that these changes can only be fully effective when a sustained increase in demand enables In Portugal the situation has its own issues, an offloading, also in sustained way, of the compounded, on the one hand, to accumulated excess of existing supply, and this is, structural imbalances and, on the other hand, necessarily, dependent on the macroeconomic by the fact that we are under international development of the country, and in particular, financial assistance, which has brought with it the return to normality with regards to the an austerity programme with extremely tough financing of the economy. measures and in conditions of very restricted financing for both the State and companies.

BARGAINS FOR BRAZILIAN, CHINESE, RUSSIAN AND FAMILY The difficult moments we’re going through OFFICE INVESTORS are affecting all activity areas of the real estate Initiatives such as the “Living in Portugal” sector, from development to construction, project, launched recently by the Government from investment to financing, going on to (destined essentially at clearing out the stock effect all types of service suppliers linked to of real estate tourism product), together with the real estate activity, namely architects and other special regimes, such as the ‘Golden engineers who have felt the reduction in Visa’ programme and the non-habitual activity particularly acutely. resident tax regime can provide an important boost in offloading available surplus real In the development market (and, as a estate stock, and, thereby, serve as a life buoy consequence, construction), the news for many developers and owners to speed up continues to not be particularly rosy, with no the selling off of surplus available properties. ray of light at the end of the tunnel for the moment at least. In Portugal, the excess of All of those who are linked to the real estate supply isn’t as evident as in other European sector have recently had contacts with countries (as is the case with Spain), but it is investors, namely Brazilians, Chinese and sufficiently bad to imply a slow recovery Russians, showing interest in these initiatives which will take at least four or five years (and and programmes, and this is a reason for that’s being optimistic). optimism and confidence. But the truth is that, despite the importance of these It is true that some very important changes initiatives and programmes, as refered above, have been introduced within the legal the development sector will only really come framework of development (namely at the out of the crisis when the macroeconomic urban regeneration and rental sector levels), situation develops and financing once again and that these changes will certainly have a flows back into the economy. decisive effect in changing the paradigm of the real estate development market in The good news is that unlike what has

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happened in the real estate development market, in the investment market things are clearly changing. After a very serious negative cycle, from 2007 to 2012 (with maximums in 2007 of around 1.4 billion euros and minimums in 2012 of around 100 million), since September/October 2012 the investment market has shown a clear pattern of recovery.

This pattern is clearly associated with the positive development of country risk (with regards to Portugal), which it has experienced since the summer of 2012 (as the trend for a reduction in the interest rates for sovereign bonds has shown, basically from this time.) In the first phase, in the second half of last year, the interest shown by non-institutional investors was evident, essentially Brazilian investors and European family offices, who have understood that the country’s level of risk is already at an acceptable level and don’t want to miss the boat of opportunities that have begun to arise (various deals having been closed), and in the second phase, this year, institutional investors returned to look at the opportunities in the Portuguese market (with various transactions under way), admitting that they don’t want to be left behind in a market that will inevitably bounce back.

LIGHT AT THE END OF THE TUNNEL? The question now on the table is knowing if the pattern of market recovery is the beginning of a new cycle of growth or just a flash in the pan. The answer to this question lies in the Portuguese state’s ability to maintain or not the direction of its public spending cuts.Everything hangs on the development of the risk perception investors have of this country at any given moment.

And there’s no room to skid off course. 

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

F

WAS THE IRON LADY FINALLY RIGHT ABOUT EUROPE?

CHRIS GRAEME | Editor

rançois Mitterrand famously once said that Margaret Thatcher had the “lips of Marilyn Monroe and the eyes of Caligula. It was meant as a joke but to a great extent summed up both the irritation and admiration that many European Union country leaders had of the Iron Lady.

Margaret Thatcher’s relationship was never an easy one with Europe. She saw Europe as the source of western conflict in her own life and that of her father.

Britain’s first ever woman prime minister often saw Europe as the problem and the United States as the solution, which is why she preferred to promote the special relationship with America on the one hand while displaying a thinly disguised distrust of the European Union on the other.

The death of Baroness Thatcher on April the 18th has elicited strong reactions in Portugal, Europe, the United States and the United Kingdom about her legacy. It sparked a wave of media coverage which

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sought to reflect on Margaret Thatcher’s attitude and inheritance with regards to the European Union and has even prompted some anti-federalists on the right to suggest that she was right over the European project after all.

There is no doubt that at home Margaret Thatcher faced considerable problems. I remember as a child under the Conservative government of Edward Heath in the early 1970s coming home from school in the winter to a freezing house, no electricity and cold suppers eaten by candlelight because the power stations were without coal because of a round of paralysing strikes.

Later, in 1978-9 during the so-called Winter of Discontent the entire nation was held to ransom by crippling public sector strikes, rubbish piled up in London’s Leicester Square, rats ran amok in the streets and even the dead were not buried because the grave diggers were out for higher wages.

Certainly Margaret Thatcher did, in the words of David Cameron, “Save Britain” but she did so at a terrible price, the results

of which are still painfully visible today.

But there were challenges abroad too.

Margaret Thatcher’s views on democracy and communism earned her the nickname of the Iron Lady from the Soviet military while her detente with Mikhail Gorbachev in the later 1980s no doubt paved the way for the collapse of communism and the end of the Cold War. In some ways Margaret Thatcher preferred the idea of the European Economic Community or EEC rather than a European Union. She saw an open common market system within Europe as the best tool to preserving peace in a continent that had been ravaged by two world wars and a terrible Depression in the 1930s.

She certainly didn’t believe in the kind of tariffs that only contributed towards creating a fortress Europe and paved the way for World War II in 1939.

But what she never wanted was a Federal Europe; a kind of United States of Europe which she believed would be cumbersome, unworkable, bureaucratic and corrupt.

The other problem was that Margaret

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Britain’s first ever woman prime minister often saw Europe as the problem and the United States as the solution, which is why she preferred to promote the special relationship with America...

Thatcher saw the European Project as essentially socialist. She once complained that she hadn’t worked towards seeing socialism destroyed in the Soviet Union only to see it rebuilt closer to home in Western Europe.

Always one to look for an enemy within or without – her Conservative Party predecessor Ted Heath, General Galtieri of Argentina, the National Union of Mineworkers President, Arthur Scargill, the head of the General London Council, Ken “Red” Livingstone - her bête noir in Europe by the late 1980s was the then President of the European Commission, Jacques Delors.

And it was Margaret Thatcher’s decision to do battle with him that ultimately

brought her down in 1991. Margaret Thatcher believed that the European Community changed in the later 1980s from an economic free trade area to an embryonic federal super state with a president, a single currency, and harmonisation of social policy and labour laws.

Above all she feared that Jacques Delors was going far beyond his remit in intending to create a new empire with him, as an unelected president, at its head.

She argued that Delors was taking the European Community into uncharted territory that Britain had never signed up to. But the painful truth was that Britain had.

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The European Union’s Treaty of Rome itself had always had a federal union as its ultimate objective back in the 1950s while economic and monetary union had been seen as desirable as far back as 1972, before Britain actually joined the EEC a year later.

Former Prime Minister John Major wrote in his memoirs that Margaret Thatcher had somehow naively failed to see that economic and monetary union was the end game all along, one that she herself had originally agreed to, but later regretted and wanted to stall at all costs.

The Iron Lady saw monetary and economic union as a threat to the sovereignty of nation states, historic and cultural identity | 13

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

and a parliamentary democracy that had been a millennium in the making.

Officially her government argued that Britain was well ahead of the rest of Europe in moving towards the EU’s stated aims: a single market and currency.

Britain had ended exchange controls in 1979, paved the way for free capital movements, and dismantled protectionist barriers.

But what she wanted was a Europe of interdependent but independent nations, but not one dependent on unelected bureaucrats in Brussels.

As it dawned on her where the European project was going she fought to hold it back; first dragging her heels over the European Exchange Rate Mechanism (ERM) in 19889, then trying to block the creation of a European Central Bank in 1988.

Yet by signing the European Single Act she had given the green light to all that was to follow despite protesting bitterly against the creation of a European super state at every stage.

as an equally dangerous undemocratic union to replace the one that that she, with the Americans, had argued so strongly against.

The other problem Margaret Thatcher had, and in this she had an ally in her chancellor of the exchequer Nigel Lawson, was the single currency.

She couldn’t see how countries with differing economic backgrounds, wealth, economies and GDPs could make it work in practice.

When Europe was celebrating the creation of the Euro at the start of the millennium, Margaret Thatcher wrote in her book ‘Statecraft – Strategies for a Changing World’ that Europe was a “classic utopian project”, “a monument to the vanity of intellectuals”, and a “programme condemned inevitably to failure.” She went on to state that only time would tell the scale of damage that would be inflicted.

Now, in 2013, and looking back at the Sovereign Debt Crisis her words seem strangely prophetic.

The prudent Germans and northern states in the Euro don’t see why they should By constantly saying “No, No No!” bail out the profligate southern European Margaret Thatcher not only antagonised her countries while the situation in Greece, European partners, but sowed the seeds for Cyprus, Spain, Portugal and Italy seem to her own downfall and split the Conservative have a strangely ‘I told you so’ ring about it.

Party for years to come, an inheritance that still troubles David Cameron’s Conservative The truth is that Margaret Thatcher party today. During the early part of her never liked Europe, having grown up in mandate the European Union was viewed the Second World War and hid under a by her as a bulwark against the “Evil table in her family home in Grantham as Empire” of the Soviet Union. the German bombs fell all around, she remained sceptical of Europe and German During the end of her mandate it was seen intentions.

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Despite saying “Britain’s destiny lies in Europe” She never really believed it and saw Britain as non-European, more an ally of America than Europe from which two of Britain’s historical enemies – France and later Germany, had played such a strong part in its history.

Proof of this is echoed in her opposition to German reunification, a fear which she shared with the Russians.

Thatcher supporters today within America and the United Kingdom argue that the current economic crisis, despite stemming in part from the kind of neo-liberalist policies and laissez- faire deregulation she helped, with Reagan and Bush, to set in train, provides credible evidence of the fragilities of the European system and governance as its members have seemingly been incapable of coming up with a concerted and unified set of solutions to the European financial and sovereign debt crisis.

Her most successful chancellor Nigel Lawson still argues that the Euro crisis is a ‘golden opportunity’ to force a renegotiation of the founding treaties of the European Union to take the whole EU in the opposite direction.

“The notion that more Europe must always be promoted, that there is no acceptable end to the process of integration short of a full-blown United States of Europe has to be abandoned,” he told the Times in 2011.

He called for a full-blown constitution that would set out in stone the competencies and responsibilities of the member states of the Union – the reverse of what he said was contained in an anti-democratic and

unconstitutional Lisbon Treaty.. And Margaret Thatcher, for all her dictatorial style and cult of the personality in office, fervently believed in democracy and freedom of choice. Yet many voters in the European Union today indeed feel that such choices, which Europe fought so hard in the Second World War to regain from the yoke of Stalinist and Hitlerian tyranny, are now being eroded in peacetime behind the back door and corridors of Brussels.

She may be right in this, but that doesn’t mean that that the utopian dream of a united and prosperous Europe is wrong either.

No nation in an increasingly globalised and technological world can be an island, not even Britain.

We need our European neighbours otherwise we are isolated. But we also need to preserve the best of our traditions and democratic freedoms that were a millennium in the making.

Perhaps the answer lies in Europe needing to be more accountable, democratic and electable by the peoples of its member states.

Certainly today, if most people were asked on the streets of our towns and cities in Europe if the European Union stands up for the rights and common good of its ordinary citizens, I doubt, outside of a few university intellectuals, the answer would be ‘yes.’ | 15

[ PA RT NE R S NEWS ]

PRIME YIELD MZ BOOSTS SERVICES IN MOZAMBIQUE The Portuguese property consultancy Prime Yield has increased its activities in Mozambique because of the enormous potential for growth in the Portuguese-speaking country.

PRIME YIELD MZ HAS LAUNCHED THE 2ND EDITION OF ITS “MOZAMBIQUE REAL ESTATE MARKET STUDY” AND WILL PROVIDE PROPERTY AND TANGIBLE ASSET VALUATION SERVICES FOR ACCOUNTING PURPOSES TO MEET THE LEGAL FRAME WORK THAT IS BEING PREPARED IN THIS AREA. Mozambique’s real estate market currently presents huge potential for growth, with opportunities in all segments, with particular emphasis on new geographical areas as an investment and real estate development destination. This is one of the main conclusions of the Mozambique Real Estate Market Study 2013”, which Prime Yield launched during Tektónica Mozambique, a report which analyses housing, office, retail and tourism sectors in Maputo. The real estate valuation and consultancy company presented this study for the second year running during this construction, real estate and public works fair, which took place recently in Maputo.

According to Prime Yield MZ, the housing sector in Maputo continues to be strongly marked by an imbalance between supply and demand, there being the need to reduce the lack of housing.

The rental market is a fairly active option given the limitations to home mortgage loans, a practice which has yet to become common nationwide. Supply is currently being developed for the medium/high segment and for the foreign workers niche, specifically located in the main avenues in Polana 16 | Sustainable Investment

Cimenta A and B where the average value of a T3 three-bedroom property stands at around 3,014$/m and 2,449$/m, respectively. The average value of housing in Mozambique currently stands at 2,600$/m.

The offices market in the capital is, according to the study, very active due to the growing economic interest shown in the country by national and international companies, which has caused a boost in demand for property.

The existing stock, which Prime Yield MZ estimates to stand at around 337.000 m, is still insufficient to meet this demand, which has created a low availability rate. The new supply is overall marked by made-to-measure buildings for clients, so that speculative project development has not yet become a reality. The down town area, mainly Avenida Setembro 25, is the Central Business District, where the main offices are located and with a prime rent of around 30$/m/month.

In the retail sector, there is an equal imbalance between supply and demand, with a market dominated by disjointed and not very professional street trading spread here and there all around the city of Maputo. The supply of commercial retail premises in Maputo is very limited, with only 4 shopping centres, 4 retail parks and 3 shopping galleries, which have influenced the high prices

which have on average been charged in these spaces. The average rents are 40$/m/month in shopping centres, 20$/m/month in retail parks and 30$/m/ month for street trading. According to Prime Yield MZ there is an enormous take-up capacity for new shopping areas in Maputo, considering the characteristics of the current supply and the basic increase in local and international consumers, as well as disposable income, which isn’t finding its consumer needs met and is currently seeking out alternatives in South Africa.

With the consistently growing number of tourists, tourism in Maputo is particularly vigorous in the corporate sector, but the Mozambique Tourist Board is committed to upping the number of tourists attracted to the leisure segment. The supply of hotels in Maputo is currently made up of 5 5 star hotels and 6 4 star hotels, complemented by various 3 star hotels, guest houses and aparthotels, with average prices ranging from 144$/room in 3 stars and 312$/room in 5 stars.

According to this study, this is a segment with great potential for growth, considering the development of the country, its natural, cultural and historic resources, the occupation rates, which in some cases reach 100%, and the positive predictions from the main tourism indicators. 

FOUNDATION STONE LAID AT

ALEGRO SETÚBAL

LARGEST URBAN REHABILITATION EVENT RECEIVES 10,000 PEOPLE IN 24 EVENT MARATHON OVER 7 DAYS Urban Rehabilitation Week brought together a collection of events and initiatives in Porto with the intention of showing the vitality of urban rehabilitation in Portugal.

Immochan, the commercial real estate arm of the Auchan Group, has just held the foundation stone laying ceremony for its new shopping centre Alegro Setúbal.

The event was attended by Immochan Chief Executive, Mário Costa, the Portuguese trade organisation AICEP’s director of Projects of National Interest , Madalena Oliveira e Silva and the President of Setúbal Municipal Council, Maria das Dores Meira.

With a total investment of 110 million euros, of which 70 million euros was as a result of the works on the new shopping centre, Alegro Setúbal will create 1,000 new jobs and 500 indirect jobs with its opening slated for the last quarter of 2014.

The future Shopping Centre has 3 floors, 115 shops and 20 restaurants, some of which have specific themes.

The project will eventually also have 10 state-of-the-art cinemas and a health club

attended at the event in the city’s Praça D. João. Urban Rehabilitation Week was a joint initiative between Vida Imobiliária and Promevi, in partnership with Porto City Council and Porto Vivo - SRU.

António Gil Machado, Director of Vida Imobiliária, the magazine that spearheaded Urban Rehabilitation Week, stated: “We exceeded all of our expectation with the attendance, interest and The week included a total of 24 support of all kinds of public to events focusing on urban the events organised” he said, rehabilitation, 23 partners in the adding: “On balance it was so organisation of events and 135 positive that we’ve been inspired guest speakers all attracting 3,000 to start organising the second people to the conferences that Urban Rehabilitation Week next formed part of the 1st Urban year”, admitting that the event Rehabilitation Week at which could become a regular annual more than 10,000 visitors fixture in the real estate calender”.

MERCEDES-BENZ

Chooses Oeiras Parque Shopping Centre for its first Concept Store in Europe Under the motto “refined sportiness” Mercedes Benz opened its very first Concept Store in Europe at the Oeiras Parque Shopping Centre near Lisbon.

Proprime is the first company registered at the CMC to evaluate Real Estate Investment Fund properties in Angola Proprime, a company that is the fruit of an association between Prime Yield and Progest in Angola, is the first company registered at the Capital Market Commission (Comissão do Mercado de Capitais-CMC), the regulatory body for the Angolan financial market, as an evaluator for housing real estate, to undertake valuations of integrated assets

One-hundred and twenty-seven years after inventing the car, Mercedes-Benz is still innovating and finding new ways of capturing attention in the market. Flying in the face of the current economic downturn that has blighted the car manufacturing and sales industry, Mercedes-Benz has proved that innovation makes the difference and is part of its DNA by not only opening its first concept store in Europe but also continuing to invest in the Portuguese market.

or those to be integrated into the Real Estate Investment Funds, an instrument which is now making its first forays into the country.

The company is, in this sense, subject to CMC supervision, under the terms of the Law for Asset Values - Law nº 12/05, dated September 23, which set up the Real Estate Investment Funds in Angola. | 17

[ PA RT NE R S NEWS ]

B. PRIME AND AGUIRRE NEWMAN locate Boticário in Edifício Espace

Register strong growth in results and EBIDTA in 2012

B. Prime and Aguirre Newman have located the famous Brazilian company Boticário, in Edifício Espace on the buildings’s third floor.

and available areas per floor of between 200m² and 700m²

With this deal, B.Prime acted on behalf of Pramerica Real Estate Investors which Edifício Espace which is in manages the buildings for an Lisbon’s Parque das Nações investment fund; Aguirre and is in strong demand, Newman represented currently enjoys an occupation Boticário which has been in rate of 80 per cent with Portugal for 26 years and has companies like Mary Kay, 50 shops and an online shop Intrum Justitia among others, for Europe.

Banco Best enjoys record share in sales of foreign funds Banco Best closed 2012 with the highest ever number of foreign investment fund business sales in Portugal having achieved a market share of 37.6% according to a statistical report published by the CMVM. This result means an increase of 4.6 percent on the previous year, a performance that is even more impressive given the economic context dominated as it is by 18 | Sustainable Investment

uncertainty and volatility in the financial markets.

The amount under foreign investment fund management grew 42%, with significant interest in a wide variety of assets and good results for both bond and share funds.

Banco Best analysts confirmed that 2013 had been a year in which investors had sought strategies that were a little riskier but with higher potential return.

Results announced by the international real estate consultants Cushman & Wakefield (C&W) for its international activities in 2012 saw a 2.7% growth in gross turnover to $2.05 billion. This, its second best result, was only bettered in 2007, when it achieved $2.1 billion.

In relation to EBITDA (based on IFRS accounting principles) the consultants, held mostly by EXOR (the investment arm of the Agnelli family), saw an increase of 14.9% to $128 million. The growth registered was due to an excellent and continual performance in its real estate management evaluation areas, specially in the United States and Asian Pacific areas, and because of the modest growth of its agency departments.

CASAS DE SÃO FRANCISCO

Beach & countryside an hour from Lisbon

Exceptional condominium on the Alentejo coast In the small and typical village of S. Francisco da Serra, close to Santiago do Cacém, an just an hour from Lisbon, are the “Casas de São Francisco”, a project developed by Grupo Espírito Santo’s ESPART, providing the ideal place for a second or holiday home.

Right on the Alentejo coast, this development is made up of 33 town houses, inspired by

traditional Alentejo architecture, ranging from two to four bedrooms, with areas from 130 to 190m². Each house has its own private garden area (100 to 400m²) with access to a shared swimming pool integrated within a garden area of 11,000m².

João Rei and João Gonçalves da Cunha are the project architects for this development which stands out for its comfort and utility with two-storey terraced houses with attic that can be turned into an extra room. This condominium already has 40 per cent of its houses sold with prices from 200,000 euros.

CBRE launches multidisciplinary group dedicated to shopping centres

Locates new Continente Bom Dia shop in Lisbon The consultants completed one of the largest Lisbon street commerce operations of 2012 Jones Lang LaSalle’s Department of Retail Leasing has completed the arrangements to rent a new Continente Bom Dia shop, a brand owned by distributors Sonae MC, part of the Sonae group. The space has around 5,000m2 spread out over two floors, located at numbers 7-9 Avenida Defensores de Chaves, parallel to Avenida da República, one of the main arteries in Lisbon.

The new Continente Bom Dia shop has a sales area of 1400 m², a covered parking area, a Bom Bocado cafeteria and road access onto Avenida Praia da Vitória and Defensores de Chaves.

Croft unveils Special Edition Vintage Classic

Croft, one of the most famous Port wine houses, has just launched a special edition of its four Vintage Classics, all of which were produced in the first decade of the millennium.

Only issued in particularlyexceptional years in terms of quality, Croft has decided to celebrate its Four Vintages in One Decade with a special limited edition of 100 numbered boxes.

Each box has an example of each harvest: Croft Vintage 2009, recently awarded with 95 points by the Wine Spectator, Croft Vintage 2007, Croft Vintage 2003 and Croft Vintage 2000. Each one of these great vintage Porto wines has the distinctive character of the year of its production as well as the distinctive and timeless profile that is Croft.

retailers, owners, investors, urban planners and all levels of public administration. The multidisciplinary group involves CBRE has launched Shopping CBRE specialists in the Rental Centre Practice (SCP) - a Market, Real Estate Asset multidisciplinary pan-European Management, Valuation, group of senior professionals that Investment, Real Estate specialise in all aspects of the Financing, Retail Consultancy, retail business to maximise value Building Consultancy and for clients in the sector.

Research to provide an innovative and judicious Retail real estate continues to be approach to the operation of an attractive class of assets with modern shopping centres. high demand and attracting significant investment. However, In the immediate future the SCP given the current economic will focus on six key areas context, some shopping centres essential for the prosperity of have been blighted with an shopping centres: consumer increase in empty available space trends; differentiation through to rent and decreases in profits. innovation; digital/technology support; maximisation of The SCP works with with all profitability; brand identity; and retail sector players: consumers, intelligent investment.

WORLD WEALTH WILL INCREASE 50% IN THE NEXT DECADE

According to the seventh annual report from Knight Frank - international associate of WORX Real Estate Consultants - the Wealth Report 2013, London and New York continue to be the main destinations of in the world for those with high purchasing power (ultra-high net worth individual: Ultra – HNWI) to invest and live in, although the Asian cities are rapidly catching up.

The Wealth Report 2013, the global number of HNWI increased by almost 8.700 (5%) in 2012.

The total wealth of HNWI, which means those with US$30 million or more, has increased from US$566 billion TO US$26 trillion, an increase of 2% year-on-year.

It is estimated that throughout the next ten years more than 95,000 individuals will break the US$30 million barrier in terms of personal wealth, and while Asia and Latin America will see the greatest growth in the number of ultra-rich individuals, the United States will continue to lead the list of HNWI in 2022. | 19

[ PA RT NE R S NEWS ]

Le Terrazze wins the CBRE and Garrigues ICSC Awards 2013 launch Portugal real estate guide

CBRE and Garrigues have launched the Guide to Real Estate Investment in Portugal. The practical manual has all the necessary information essential to help foreign investors in the Portuguese market while at the same time explaining the legal and tax implications associated with investments in Portugal.

The Le Terrazze shopping centre (Italy) owned and developed by Sonae Sierra and ING Real Estate has just been awarded the award for the Best Shopping Centre by the International Council of Shopping Centres - ICSC in the “New Medium Size Projects” category.

The award (announced at the ICSC European Shopping Centre Awards 2013) attributed to Le Terrazze, recognises the high quality of this shopping centre which has a LBA of 38,445m2 and 102 shops. The entire Le Terrazze concept was developed in harmony with the surrounding landscape and blends in with the geography of the region.

Inaugurated in March 2012, it is located in La Spezia, Genoa, with a population catchment area of 210,000 inhabitants and welcomed over six million visitors in its first year of operation.

At a time when Portugal is starting to turn the page in terms of the economy, with the financial markets sending out positive signals, the the Guide to Real Estate Investment in Portugal will give new investors the information and understanding they need to analyse real estate projects on Portuguese territory.

Jones Lang LaSalle

Consultant strengthens its portfolio of managed assets

Boosts its position in urban rehabilitation Cushman & Wakefield has unveiled its new services in the urban rehabilitation area. This activity area forms part of the consultant’s Investment Department and has a multidisciplinary team made up of project and agency managers and specialists. This team’s main objective is to develop viable plans for building rehabilitation, following all the phases in the process and offering solutions using its experience and know-how of the various services involved.

Of the services offered by the C&W urban rehabilitation team include: actively looking for and identifying opportunities; market and feasibility studies; real estate consultancy, development and urban rehabilitation; consultancy for the sale and acquisition of buildings and land, consultancy for real estate valuation and valorisation; projects, works supervision and management; technical and commercial due diligence.

20 | Sustainable Investment

Jones Lang LaSalle’s Department of Property Management has been awarded the management of Lisbon office block Edificio Liberdade 225 by its owners, an international real estate investment group.

The consultants is continuing to widen its portfolio of properties that it manages, this being the first time it has been awarded the management of an asset located in Avenida da Liberdade.

GOOD BED GOOD TABLE AWARDS 2012 CHANGES TO PASSPORT SERVICES FOR BRITISH NATIONALS. Transfer of Overseas Applications to the UK

The British Government is making important changes to the passport service for British nationals living overseas.

From 15 April 2013, the application process will be centralised and British nationals in Portugal should submit their passport application to Identity and Passport Service (IPS) in the UK. This important change follows reviews by the National Audit Office and is designed to achieve economies of scale, greater security and consistency in decision making.

All British passports have enhanced sophisticated security features designed to reduce the likelihood of identity theft and passport fraud.

AF_21x19,3.pdf

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Tivoli Victoria & Restaurant Emo Presented with golden key and golden fork Tivoli Hotels & Resorts has once again been distinguished by the Boa Cama Boa Mesa Awards at a ceremony which took place on March 18th, in restaurant Montes Claros in Lisbon.

In the annual event the Tivoli Victoria was awarded with a golden key and the hotel’s restaurant Emo received the golden fork.

18:28

KNOWLEDGE . INNOVATE . SOLUTIONS

DESENVOLVIMENTO E GESTÃO DE SHOPPING CENTRES SHOPPING CENTRES DEVELOPMENT & MANAGEMENT CONSULTORIA EM MODA, TENANT MIX & RETALHO COMERCIAL FASHION, TENANT MIX. RETAIL & LEASING ADVISORY

DESENVOLVIMENTO E PROMOÇÃO EM INVESTIMENTOS IMOBILIÁRIOS REAL STATE INVESTMENTS, DEVELOPMENT & PROMOTION PLANEAMENTO ESTRATÉGICO, FORMAÇÃO & CONSULTORIA IMOBILIÁRIA REAL ESTATE ADVISORY, TRAINING & STRATEGIC PLANNING

Shopping Centres & Real Estate Assets

[ BUSINE SS OPINION ]

“ It can be said that

there was an alignment of interests between company owners, employees, suppliers and customers RICARDO FERRO | Director Business Development, BUREAU VERITAS

22 | Sustainable Investment

”

Bureau Veritas

Certification & Sustainable Development Sustainable Development (SD) is an imperative, indeed it has become necessary to know how organisations can trust the strategies they are adopting for Sustainable Development and prove them to interested parties. Ricardo Lopes Ferro, Director of Bureau Veritas Portugal explains more.

S

RICARDO FERRO | Director Business Development, BUREAU VERITAS

ustainable Development strategies have to be aligned with the development of consumer behaviour and greater responsibility with regards to consumption.

Indeed companies survive thanks to the consumption of their products and services but there has to be an alignment between the company’s SD strategy and the behaviour of its customers and consumers in order for that strategy to be effective and create the desired SD.

companies with a significant focus on efficiency and the management of all resources and their impacts.

The new behaviour of companies was equally accompanied by greater consumer awareness on environmental issues, culture preservation and the safeguarding of ecosystems, reinforced in the last few years by the importance of employment, as well as the importance of having a strong stakeholder structure to better resist downturns.

In 1972 a book was written called “The Limits to Growth” which considered natural resources as limited, modelling the consequences of the rapid growth of world population, it was commissioned by The Rome Club (1968).

To sum up, it can be said that there was an alignment of interests between company owners, employees, suppliers and customers. Everyone intended to develop their relationship with the company and maintain this relationship as long as possible, in other words make it sustainable in the long-term while also coming to the It was only in 1987 that another important step was taken conclusion that the best way of doing so was not to with the Brundtland report called “Our Common Future”. ignore any of the other interested parties and their In this document the definition of sustainable legitimate expectations. This new form of management development appears for the first time: “Development was called “Socially Responsible Management”. that meets current needs, without compromising the capacity of future generations to satisfy their own needs.” The best form of guaranteeing that “Socially Responsible This definition today is even more salient today than Management” is developed is through the implementation when it was first made. and certification of a Social Responsibility management system, as was done in the past for the areas of Quality, After these two key milestones, various initiatives were Environment, Hygiene and Safety. organised and a number of official documents produced by the UN and the European Commission, from which With implementation and certification, companies prove the Conference of the United Nations on the they are implementing practices that are valued by the Environment and Development (UNCED) stand out, market and their customers. Today demands are greater which took place in Rio de Janeiro in 1992 where the and this leap is vital for anyone who wants to be the the Kyoto protocol was published while the World Summit on more demanding markets, normally associated to greater Sustainable Development (WSSD) took place in added value of the products and services offered.

Johannesburg in 2002.

The standards SA 8000, NP 4469-1:2008 and ISO 26000 These events, together with an increase in the costs of are excellent instruments to make practices formal and raw materials, climbing energy costs and the need to consistent withbusiness strategy and obtain due manage waste products, led to a new way of managing recognition in the market(s).  | 23

[ PA RT NE R R E P ORT ]

RESTORING TRUST

Strong banks are a prerequisite for laying the foundations for a strong economy.

Restoring trust and finding the middle ground in banking is a key to strong economies. This was the opinion of the Portuguese-born Chief Executive of Lloyds Bank, António Horta-Osório, who addressed members of the British-Portuguese Chamber of Commerce and British embassy officials at the British Ambassador’s Residence in Lisbon.

CHRIS GRAEME | Report & Photos

This meant looking after the deposits of households and businesses, and using this funding prudently to support investment and growth, especially to SMEs, the “life blood” of any country’s industry, and to first time house buyers given the key role of the construction sector in creating employment and growth. “The biggest challenge that households and businesses face is that they no longer trust banks to carry out these responsibilities,” he admitted.

“Without the trust of our customers banks are effectively unable to carry out their role in supporting the recovery and building a stronger economy,” he said. Therefore, just as the external environment had changed, banks also needed to change. The key to restoring this trust came in three parts: changing culture, improving stability, and supporting growth through prudent lending.

T

rust, in turn, was also a prerequisite for a strong banking sector with a clear alignment of incentives. Customers, banks and regulators all need a strong economy. “It is up to the industry to change and establish the conditions in which trust can be rebuilt,” Horta-Osório told business leaders at the BPCC Board of Directors/Embassy organised event.Despite economic differences in the past, Portugal and the UK faced similar challenges today, he said, “how can we put ourselves back on the path to a strong recovery?

How can we create the conditions for a more stable, more balanced path to growth?” asked the banker.

In the short term, the key to restoring growth was by reducing uncertainty and restoring confidence so that the private sector could expand and offset deleveraging in the public sector. “The banking sector cannot change this by itself. Banks cannot force households or businesses to borrow in order to prop up demand in the short run.

Nor should they” he warned in a veiled reply to criticism that banks weren’t doing enough to support cash-strapped SMEs. But just as banks played a key role in the causes of the crisis, they could and had to play a key role in supporting the recovery Horta-Osório admitted.

24 | Sustainable Investment

A culture based on longer-term returns and sustainable growth was key to ensuring banks improved in their medium-term growth prospects. Pay had to be linked to the long-term performance of a bank not short-term gain. It needed to be aligned with the long-term interests of shareholders and managers and transparently linked to success. Rewards also needed be tied in with customer service, effective controls on risk, and better outcomes for customers, with less emphasis on sales targets.

The same principles had to apply to the senior management of the banks. While pay should be linked to the long-term performance of the bank, it must be capable of being clawed back where bad decisions adversely affected the banks performance and costs. This was in stark contrast to the culture that existed in the banking sector in the lead up to the crisis where the interest of shareholders and customers were seen as conflicting. “The business model that puts the customer at its core and delivers sustainable returns over time is the one that completely aligns the bank with the interests of investors. Cultural change will take time, but in the short term we must seek to build customer trust in banks by ensuring that no bank is in a position to threaten the safety of their deposits,” said Horta-Osório.

Recent events in Cyprus had made this task more difficult. But the considerable efforts made in enhancing the stability of the industry over the past few years also needed to be recognised. Since the crisis capital ratios at European banks had steadily risen despite the weak economic backdrop and difficulty of raising capital in the markets.

Between 2008 and the first half of 2012, Core Tier 1 capital ratios of UK banks rose from 8.6% to over 13%, Portuguese banks have increased Core Tier 1 ratios from 7.5% to over 11%...more than the Spanish banks had done. “At Lloyds we set out our strategy to reduce the risk on our balance sheets in June 2011 by reducing wholesale funding, lowering operational leverage, and increasing capital ratios.

“

The key to restoring this trust came in three parts: changing the culture, improving stability, and supporting growth through prudent lending.

However building stability was also about structural change. Retail and commercial banks should be “simple and boring”. That is why Lloyds was supporting the initiative in the UK to ‘ring fence’ the commercial and retail activities of banks. “I believe this will help engender trust among our customers as they know exactly what activities the banks undertakes and what it does not,” he said. “We also need to build and maintain better relationships with regulators; both should want a financial system which enables a strong and healthy economy,” he added. “Ultimately we need to create the conditions for banks to allocate funds to the most productive areas of the economy which requires a regulatory framework that allows banks to do this but also safeguard the stability of the system at all times.”

On the FCS Deposit Guarantee Scheme in off-shores, this could vary from the off-shore in question. In the Isle of Man, for example it was not the UK government’s guarantee that was in place but that of the bank and the authorities in the Isle of Man. If someone places their deposits in Gibraltar, for example, with a bank, they will have the guarantee of the Gibraltar authorities and the parent bank company in the UK. In what was overall a talk about the similarities between Britain and Portugal he showed how the banking sector could help the economies of both countries.

It was an “understatement” to say that the environment under which banks and businesses were operating remained “challenging”. Across the advanced economies the processes of deleveraging in both the private and public sectors was taking longer and having a more depressing impact on growth than many had thought when the worst of the 2008 financial crisis and associated recessions happened.

The Euro zone, as a whole, and the so-called periphery economies remained in a deep recession today.

”

economies over the past decade provided a “useful case study”.

On a GDP per capita basis, Portugal had experienced flat growth for a decade. The UK economy had outperformed most advanced economies, even the United States. Although there were a number of reasons for this contrasting performance, a key difference has been the allocation of capital via the banking sector.

On joining the Euro Portugal enjoyed an influx of capital. But while this should have found its way into the most productive areas of the economy to drive growth, it didn’t. Instead productivity growth fell - despite the abundance of capital, low interest rates and the closer trading ties that membership of a unitary trading union brought. At the same time the UK also saw significant capital inflows. While it was a popular perception that UK growth prior to the crisis was driven by increases in financial sector output, this was not borne out by the data.

The key drivers of UK growth came from business services, distribution, manufacturing and telecommunications – not necessarily the financial services and banking sectors. This was not to say that there wasn’t a misallocation of capital to certain sectors. The UK experienced an unsustainable boom in both residential and commercial property markets, and an emphasis on domestic demand growth despite globalisation.

There was a culture in the banking sector of complaisance towards risk management, a loss of customer focus, and an emphasis on creating ever higher revenues to outpace rapidly rising costs. In effect core banking practices were progressively being relaxed in favour of shortterm financial gains. “To me this demonstrates the importance of an efficient banking sector, to build a strong economy which delivers a significant improvement in living standards over time and sustainable returns for banks,” he said.

The UK economy with its close trade and financial links to the Euro zone had not been immune, with flat growth over the past 18 months but despite the weakness in the main economic outlook, the actions of To ensure that this time the lessons of the past will not be repeated, he the ECB and other central banks had brought relative calm to financial said there were substantial structural changes underway in the way that markets over the past six months. the sector would operate in the future. Given the trend of ‘laisser faire laisser passer’ that started in London in the 1980s, in which there was a Horta-Osório pointed out that while this was a difficult environment belief that the markets correct themselves and the animal spirits work for businesses to operate in; it also provided a unique opportunity for the common good, all those trends had been called into question, for change. An opportunity to assess business models and practices, and as a consequence people were now concerned about balancing the for their appropriateness for the new environment. One thing that interests of society with a properly functioning bank sector. was clear from the past five years was that the external environment in which business operated had changed “dramatically and for the “There has to be a middle ground, because it’s very difficult to have long-term”. Nowhere had that proved truer than in the banking sector. a thriving economy without a strong banking sector. And it’s very The health of the banking sector and the health of the economy were difficult to have a thriving economy in countries with weak banking inextricably linked. The differing experience of the UK and Portuguese sectors like in Portugal and Spain,” he concluded.

| 25

[ PA RT NE R S OPINION ]

“

The dominant trend for the next few years will be urban rehabilitation, boosted by recent changes to the legal frame work...

”

PAULO SILVA | Manager Director AGUIRRE NEWMAN PORTUGAL

28 | Sustainable Investment

The Real Estate Market in Portugal Oportunities and Trends

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PAULO SILVA | Manager Director, Aguirre Newman Portugal

he current state of the real estate market can be described simply: it’s in a bad way but there are bargains to be picked up.

The current context presents the perfect opportunity for companies to downsize in terms of structure and reduce costs thanks to cheaper rents which ideally should provide long contracts from which the most can be made of significant cost reductions Historically speaking we’ve seen with the benefit of, in a significant consecutive record falls in the number number of cases, achieving significant of registered transactions both in offsets towards moving and setting up terms of the number or turnover of costs which in extreme situations may deals and associated business, which as be at cost zero. a consequence has led to sales and rental values plummeting to their Portugal, and Lisbon in particular, are lowest levels in 20 years in a situation today displaying price tags that are that is without parallel. significantly lower than other countries and European capitals and To get a broad picture of how extreme this reality is starting to be grasped by the situation has become, one only international investors that have needs to look at the office market in already overcome the phase of “don’t Greater Lisbon’s West Corridor (Zone even talk to me about Portugal” 6) in the middle of the 90s: Carnaxide, because “the Board” doesn’t want to Miraflores, Oeiras which at that time invest in our country; to another phase enjoyed values of 19€/m2/month, the where they’re leaping from their same amount as was then charged for chairs, getting on a plane and coming the Torres de Lisboa and slightly below to see the opportunities we have on that of Av. da Liberdade, which then offer for themselves. There’s a feeling stood at 20€/m2/month. that we haven’t yet hit rock bottom but we’re about to and that real estate is Currently the rental amounts on the very cheap.

West Corridor are less than 10€/m2/ month, showing a contraction of over An investor that’s active in Portugal 50% against those practised over 15 these days has the opportunity of years ago. buying very good assets at unbeatable prices, with reduced or practically This extreme example of the office non-existent competition from other market can be repeated, to a greater or investors, a situation we’re convinced lesser extent, across the real estate will change very soon (within two market board and the locations under years). There are a lot of restrictions in consideration, both in terms of rental the way such as difficulty getting and buying/selling. credit (the interest on finance and associated costs), which points to In this sense there clearly are specific investor profiles: those that opportunities in the real estate market, have equity or those looking for assets in any segment, as a result of low with debt and then taking it on. prices and shrinking demand, equally in terms of occupation and However, we’ve reason to believe that investment, and that from these we’re seeing an increase in real estate perspectives the real estate market has activity, to which national players a lot of bargains to be had and offers with cash (particularly Family excellent opportunities in the Offices) will contribute and which medium- to long term. have been waiting for the right

moment to invest, and foreigners that feel that the right conditions are starting to fall into place for them to invest in Portugal.

From the real estate development perspective, the dominant trend for the next few years will be urban rehabilitation, boosted by recent changes to the legal framework of the rental law, which will encourage the restoration of historic city centres, the impact of which will be strongly felt from 2015/6 as a consequence of rental contracts coming to an end and the incapacity of tenants to pay updated rents, still below market value, which will become more apparent from 2017/8 as property owners terminate subsidised contracts.

As to real estate associated with tourism, in a country in which this activity represents 15% of GDP, this sector will have an extremely important role but not before seeing a recovery and stabilisation in the core markets using these products, which it is difficult to see happening in the next 3-5 years.

I wouldn’t like to end this article without mentioning the existing opportunity created by the boom in demand arising from the Residence Authorization Law for Non-Europeans which is real and effective, which we hope will not suffer the tendency to be wasted by the use of harmful distribution channels (with high commissioning) and by the greed of certain property owners which are already starting to use double standards depending on the buyer’s country or origin.

It would be a shame that such an opportunity, so full of merit, should be wasted because of unbridled ambition within the context of the recession and the market indicators mentioned above.  | 29

[ PA RT NE R S OPINION ]

LISBON’S HIGH STREET RETAIL

A GOOD EXAMPLE THAT OTHER CITIES SHOULD FOLLOW PATRÍCIA ARAÚJO | Head of Retail, Jones Lang LaSalle

Tourism, urban refurbishment and a strong investment in quality and innovation are the key ingredients that are relaunching‎the interest in Lisbon’s high street retail.

The emergence of areas that are positioned to reach their target markets shows that Portuguese retail is on the right track says Patrícia Araújo, Head of Retail at Jones Lang LaSalle’s Portugal office.

30 | Sustainable Investment

“

Lisbon offers innovative quality products and services to suit all pockets, and is bandied about abroad as a fashion capital as well as having consecutively won international awards that have put it on the map as never before.

The emergence of Lisbon as a world tourist destination of note, the crisis and the natural evolution of product and of consumer patterns has propelled Lisbon`s high street retail in a decisive way, it having undergone more changes in the past 2 to 3 years than in the previous decade.

Until relatively recently, the Shopping Centre concept was ‘king’ in Portugal, because it was modern, convenient and had a large range of products, a situation that traditional street retail did not keep pace with, it suffering a growing decline that accompanied the deterioration of city centres which were abandoned by people who went to live on the outskirts.

The present crisis made the situation worse, despite changes in the rental law; in fact internal demand plummeted which meant even more difficulties.

But as always, the crisis does not affect everyone in the same way and Lisbon’s historic centre is thriving today.

Actually, tourists with a high degree of purchasing power have attracted big brands of international stature; there has even been segmentation per retail concept (similar to what happened 250 years ago when the down town was redeveloped after the 1755 earthquake).

The result is that today Lisbon has a range of retail supply that leave most other European cities in the pale. In fact, Lisbon offers innovative quality products and services to suit all pockets, and is bandied about abroad as a fashion capital as well as having consecutively won international awards that have put it on the map as never before.

As well as the international brands that have chosen Lisbon to open shops, it is also worth mentioning the various examples of Portuguese entrepreneurship which, all over the city, but mainly in the more established commercial areas, has developed new and varied concepts which are well segmented and positioned, with attractive design and original marketing.

”

Apart from Portuguese investment, many of these concepts are selling on the “Made in Portugal” ticket, disseminating and exporting the best this country has to offer, whether in fashion or in food.

Despite internal consumer contraction, it is, however, evident that Lisboners are beginning to experience their city in a more intense way and are looking at it differently and more enthusiastically, which has given a considerable boost and dynamism to the city’s streets, bringing street retail back to life.

Chiado is bursting with people, the Baixa, which now extends out along the esplanades of Terreiro do Paço, is a place avidly sought out by tourists and locals alike; Avenida da Liberdade and Rua Castilho have gained new leases of life, Príncipe Real is increasingly sought out by a trendy and alternative public that likes cutting edge fashion and design and Cais do Sodré, essentially a place for night-life, is also more popular among the alternative public.

Of course the renaissance of areas like Avenida da Liberdade, Rua Castilho, the Baixa, Chiado, Cais do Sodré and Príncipe Real implies difficulties for what is on offer in other areas of the city that do no benefit so much from the wealth of tourists or have been unable to renew their range of products, concepts or reposition themselves.

However, it is possible to expand these good examples to other areas of the city. Each area has its own characteristics, but providing they are well positioned for a specific target market, they can perfectly find their niche and way in the retail streets of Lisbon.

With an airport in the centre, a metro, a policy focusing on rehabilitation, investing on the best we have to offer (cuisine, cruise ship stopovers, history, a melting pot of cultures, etc.), all of these ingredients given the right support can only boost what fortunately today can clearly be seen: a city which in retail terms is on the right track and is a benchmark for the rest of the country to follow. | 31

[ PA RT NE R S OPINION ]

CBRE

Oportunities

in the Portuguese Market TIM SECONDE | Associate Director of the Capital Markets, CBRE Portugal

A new breed of investors is in town. They are Brazilian, Portuguese small investors and Family Offices. They have cash to spend but want a bargain and expect to pick up some excellently priced deals this year, particularly in the office sector.

Their main competitive advantage is that in their ₏10-30 million price bracket there’s little competition. That space used to be occupied by foreign institutional investors and national funds. Tim Seconde reports.

32 | Sustainable Investment

“

Opportunities abound in all sectors, from multi-let office buildings to shopping centres and from logistics platforms to retail parks.

A

t the moment, the investor that is in the fortunate position of having available capital and that can buy without needing senior debt has a very open field in front of them in Portugal.

Any investor that has made it clear to the market that they have equity to invest will tell you that they have been bombarded with mountains of investment opportunities and they simply won’t even look at half of them.

Opportunities abound in all sectors, from multi-let office buildings to shopping centres and from logistics platforms to retail parks.

Serious buyers are a rare commodity in the current climate and therefore can afford to be very selective. However, there is a serious lack of product in the market that fits all the criteria of the few active investors around.

In a market that is still suffering from the uncertainty of the times, buyers are looking for long leases, financially solid tenants, good quality real estate and in prime locations. It is not easy to find assets that match all four requirements but there are multiple opportunities that fit two or three.

The real difficulty comes with pricing.

Generally speaking there is still a considerable gap between buyers pricing levels and vendor expectations and it is this impasse that is leading to low levels of transactional activity.

Market sentiment is that this difference in position may gradually close over the coming twelve months as confidence slowly rises in the market and some owners run into default situations on more troubled assets.

From a vendor’s perspective, life is very tricky at the moment and some owners are finding that many assets are practically illiquid at present as there are so few buyers.

”

priced deals this year, particularly in the office sector. Their main competitive advantage is that in their volume band of around € 10-30 million they have practically no competition.

Formerly, that space was occupied by foreign institutional investors and national funds.

Another category of buyer that is appearing to a certain degree is the private Portuguese investor. The smaller Portuguese investor is a buyer type that has been very rare traditionally but it is now more possible for these buyers to access interesting investment product.

Opportunities for vendors are slowly appearing in the form of “new capital”.

Several foreign buyers are beginning to investigate the market for the first time as other markets become over-heated.

In the first two months of this year, CBRE has helped a number of Brazilian Generally this buyer is looking for investors with their initial research. smaller investments of a few hundred thousand Euro up to a maximum of These investors are beginning to find around € 5 million. Many of them are their own market overpriced and targeting the Urban redevelopment difficult to compete in. Our recently sector. On the whole investors have published Property Handbook, managed to find more interesting co-produced with law firm Garrigues, pricing in this sector which often was designed precisely for that involves projects that have failed to purpose. find financing or are frozen.

We are currently supporting these buyers with the initial process of analyzing a market in which they have never invested. This includes looking at the macro-economics, the commercial situation of the various commercial real estate sectors, taxation matters and how to create the most efficient tax structures and of course pricing.

Larger international institutions remain very cautious about the market and this is allowing others to find investments that previously would have been hard to compete for.

Over the course of this year, there will be many opportunities for active investors. We will be aiming to help these buyers to filter out the interesting It is almost certain that these new propositions and price them investors will complete some excellently correctly.  | 33

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THE PORTUGUESE REAL ESTATE MARKET

TIME TO GO SHOPPING? LUÍS ROCHA ANTUNES | Head of Capitals Markets, CUSHMAN & WAKEFIELD

2012 was one of the worst performing years in terms of real estate investment transactions: a set of factors put Portugal off the radar for the largest European investment houses:

• austerity packages hit consumer and investor confidence very hard • the deleveraging that Portuguese banks are going through severely affected credit availability • lack of liquidity created strong competition from various products (deposits, bond issues, etc.) leading to redemptions in the local fund industry

This led to an abnormally low level of transactions, which totalled little more than €100 million on the commercial real estate market.

What this figure does not evidence is the number of transactions that were nearly closed, but that fell through in the last moment. Cushman & Wakefield alone was involved in more than €500 million transactions which at the last moment, for reasons of risk, change in price or lack of financing, did not happen.

Several investors are questioning us if this is the time to go back to market and if it is on which segments. More than ever, there is no unanimous answer. Today the market offers a vast number of extraordinary opportunities in various sectors. But each asset has to be individually analysed in its own merits.

IN WHICH SECTORS ARE THESE OPPORTUNITIES?

City centre development is one of the most interesting opportunities, but it has to be backed up by a cold analysis of the numbers: too many projects aren’t viable or maladjusted in terms of demand; too many projects have land prices that are unrealistic and not in tune with reality. Even in the best locations, land prices have to reflect the negative outlook and need to be adjusted accordingly.

OFFICES

In In the office sector, prudence is required. In a context of extreme competition, the main question is what is the sustainable rental level. Still, this is the most sought investment sector, where there is greatest stronger liquidity and market transparency and where opportunities are particularly attractive.

34 | Sustainable Investment

LOGISTICS

In the logistics sector, there are grade A properties with long contracts available for sale, with interesting return rates. This applies mainly to distribution centres, which can offer 10 to 20-year leases. Investor demand is on the low side, but there are a few active requirements.

RETAIL

There are various opportunities in the retail real estate sector:

• high street units in prime locations – very sought off by family offices and private investors • shops with long contracts with distribution chains – targeted at long term investors, which are yield driven and ripe for picking • shopping centres – several schemes have been on the market, but very few of the good schemes are up for sale.

PORTFOLIOS

There are also various funds in liquidation with exposure to offices or alternative assets, with an appealing risk/return profile.

To sum up, demand is down, supply is saturated and prices are under pressure. So the questions are:

HOW TO SELL?

Rent levels are not expected to grow, and in several locations, they are expected to fall. In order to get things moving, realism combined with pragmatism and creativity is required. We are all aware that in a time of market restraints, valuations with more than 6 months have to be questioned. The massive change in the market variables requires sometimes the courage to redefine our strategy and target prices, contradicting years of work and recognizing the downturn. Liquidity can only be achieved with pragmatism.

HOW TO BUY?

More than ever, any investment strategy has to be defensive.

There is no margin for errors. But it is undeniable that it is in a downturn trend such as the one we are in is where the best acquisitions can be made.

Buyers can benefit from less competition from other investors and get appealing yields for high quality opportunities. We are meeting a reduced number of investors that are already targeting these opportunities. The wheat is being separated from the chaff. And investors are using fairly selective criteria: one out of 10, the opportunity they are looking for is out there!

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[ BUSINE SS OPINION ]

ALTERNATIVES

TO SOLVE THE CURRENT SHOPPING CENTRES CRISIS IN PORTUGAL JOÃO CARVALHO | CEO, PALPITESTRATÉGICO

WITH SO MUCH PESSIMISTIC NEWS FLOATING AROUND, HOW SHOULD ALL THAT IS HAPPENING BE VIEWED? WHAT LESSONS SHOULD BE DRAWN FROM THE CRISIS? Despite the fact that we’re still going through moments of intense volatility in the markets, I believe finally that the worse is over. The balance of this crisis has been made and whoever had to go under has gone under. We’ve gone through a reality impossible to imagine and now everything is beginning to take its proper place. The market is not just shrinking, it’s adapting. Fear is the only stone in our way. More to the point, fear was, up until now, the main thing responsible for all that has been negative in Portugal.

The burning issue now is what to do with the unsustainable shopping centres that were built and now are turning into a kind large warehouse for shops that are boarded up all day. For each case there is an adequate answer, but some developers still don’t want to take radical measures to transform this asset, which was once a shopping centre, into a viable proposition.

SHOPPING CENTRES IN THE CONSUMER’S VIEW

We go to shopping centres for their diversity of shops and leisure amenities, security and convenience. For a third of us, leisure is the main reason why we cross the threshold of a shopping centre.

We no longer get lost in their corridors, but feel pampered, are greeted eye-toeye and with sincere smiles. The winners are those who understand what consumers want.

Developers are learning the lesson that it’s not enough to follow ready recipes and aimlessly build malls. One needs to know that the consumer wants more comfort, a warmer welcome and, above 36 | Sustainable Investment

“

Fear is the only stone in our way.

More to the point, fear was, up until now, the main thing responsible for all that has been negative in Portugal.

all, their wants and needs understood and met. In this time of strong recession in the sector, it’s worthwhile taking stock to reflect on this.

SUSTAINABLE TRADE: A CHALLENGE FOR THE SECTOR

Faced with dilemmas and problems littering the way, the sector has found in sustainability a constant lesson. Because of the fact they are so diversified and have many branches of activity, companies are in distinct stages in relation to sustainable practices.

A shop today, more than ever, needs to be redesigned to make shopping an experience. In an increasingly interlinked world, in which people can research the best prices and opportunities on-line, the shop concept should be innovative. The consumer should be surprised, able to search, try out and try on products in shops.

Buying a luxury product should become a unique experience. All care should be taken to provide a better purchasing experience for the customer, from their initial contact with the brand to the purchase of the product, also involving additional post-purchase services with exclusive guarantees and benefits.

”

position in the market. The relationship of dependency and convenience of earlier models has been definitively broken. It’s down to companies to change. The challenge remains.

THE RIGHT ENVIRONMENT FOR CONSUMERS

In marketing a lot is spoken about creating customer loyalty, levels of satisfaction, and behavioural studies.

Factors that influence consumer purchasing processes also concern us.

The priority of taking into account the variety of shops, the visual presentation, Small companies, despite always being swiftness of service, prices practised, engaged in some initiative, are still facility of circulation through corridors, involved in more projects linked to the quality of the products that are philanthropy, having the community THE CUSTOMER HAS CHANGED offered, brands, the look of the shops and around about as their target public.

BUT WHAT ABOUT THEIR parking are also important. There are Medium and large companies are already SHOPPING CENTRE? many variables and alternatives. But the forging ahead to a higher stage, Consumtion is a habit that changes question is if the combination of all these introducing sustainability little by little in according to how society changes, and factors is enough for a shopping centre to their daily operations while ensuring that nothing has changed our society more be a success? Do we take into account sustainable criteria are adopted and like information technology and human warmth? The unifying factors practised by all their public stakeholders - telecommunications. Of course we’re amongst people that frequent this mainly staff, consumers and suppliers. talking about the Internet and its shopping centre which, in times like immeasurable impacts on our way of life. today, we can consider a change of Retailers also have the ability of directly We’re not the same any more and we don’t environment that is created by social influencing their suppliers, for them to communicate in the same way. We’re networks. Would shopping not become be partners in their sustainable closer to news and information. the physical version of the virtual social initiatives. They can encourage partners networks? And if not, shouldn’t we think to follow supply criteria that takes into We’re close to hundreds of real and virtual about that? consideration respect for tax and labour points of sale. We know the characteristics legislation, favouring the eradication of of products, competitors and prices. We’re Now is the time to get better acquainted child labour and slavery in the chain of more prepared and increasingly more with this consumer that frequents our production. aware of our rights and of what we can environment on a more intimate basis. demand from our suppliers, whether at the Sit down with them, order a coffee and LUXURY IS IN FASHION time of buying or after sales. have a chat. Thorough research would We have numbers, data on these not only make sure that we really know behavioural changes and various pointers This scenario would have us believe that our customers and consumers, but also that go to show this affirmation. However, it the market has moved in the same ensure that we are the existential tool of also cannot be denied, at the same time, that direction and speed, right? Wrong! their homes, anxieties and lives. We have the market has turned its attention to a class to be pretentious and penetrate their that has already been established and is Fast companies and slow ones. Companies history and recollections. Deep down, the evident in consumer society: Class A. The that know their customers and others that human being changes their habits, but luxury market is already a reality, especially don’t. Companies that respect their doesn’t change their feelings of wanting in the main streets of Lisbon and, moreover, customers and those that don’t. Not to be close to those they love, whether has been the focus of the expansion because the laws or rules decide that, but this love is physical or virtual. We just strategies of large international companies. as a condition for the survival of their need to be aware. | 37

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LURDES MARTINS | Country Manager, NEINVER PORTUGAL

38 | Sustainable Investment

Neinver Portugal

Leading the Way

Specialist in Integrated Assets Management LUIS FIGUEIREDO | Interview

Neinver is the second European operator of outlet centres, and is the first company in the sector to obtain the double international certificate ISO Quality and Environment in all of its outlet centres. Lurdes Martins, Country Manager/Neinver Portugal explains why it is a pioneer in Environment and Quality Management Systems.

Neinver is the second European operator of outlet centres, and is the first company in the sector to obtain the double international certificate ISO Quality and Environment in all of its outlet centres. What assets does this methodology bring to your position as a specialist in retail assets management and as a specialist in Integrated Management and the Strategic Consultancy of Real Estate Assets?

In actual fact we got the ISO 9001 and ISO 14001 certificates in Environment and Quality Management Systems for the 13 centres, with more than one year of activity, that we manage in Germany, Spain, Italy, Poland and Portugal, as well as for procedures at our head offices. In addition Roppenheim The Style Outlets in France is also currently going through the certification process even though it’s not even been a year since it opened in April 2012.

On the other hand, NEINVER is also a pioneer in Spain, where all five centres up and running have achieved triple certification - the first time in Spain that a company in this sector achieved this triple certification in all the projects developed.

Getting these international certificates shows the professionalism and excellence that NEINVER applies to all of its procedures.

Throughout more than 40 years experience, we’ve developed our own method of assets management that we’ve applied to each one of the phases of a retail project.

This methodology, based on procedures tested and evaluated by international certification agencies, has enabled us to position ourselves as specialists in retail asset management and as specialists in Integrated Management and Real Estate Assets Strategic Consultancy.

We currently run 15 outlet centres with a total of 311,000m2 of GLA, under the brands Factory and The Style Outlets. We are today the second most important operator of outlets in Europe (ranking ICSC 2012) and leaders in Spain and Poland where we were pioneers in introducing the concept.

In fact, NEINVER, from the outset, was always concerned with developing its activities taking into consideration the respect for people, energy efficiency and the environment. In this sense, sustainable development and social responsibility are areas which we pay very special attention to.

From the architectural conception of the projects, respecting the environment, the management systems and policies that ensure energy efficiency in the projects, we seek to be in the forefront of technological innovations. Proof of these efforts was obtaining Breeam certificates in various outlet centres.

Coruña The Style Outlets, FACTORY Varsovia Annopol and Futura Park Krakow all stand out for being benchmarks in issues related to sustainable architecture, the implementation of devices that enable

greater use of natural light, a reduction in energy and water consumption, the installation of cycle paths, electric vehicle recharging points, spaces set aside for recycling, etc.

There has been a contraction in demand for fashion goods in the sector and a growing demand by consumers for prudent choices. Is the Outlet concept following this trend for careful consumption?

We are in fact seeing a reduction in consumer spending, with people that are increasingly better informed, more on-line research, comparing brands and prices in real time. These days, with Internet access, consumers increasingly have more information about products and brands, using this information at the time they go shopping: we’re seeing more careful purchases and less impulse buying, where the price factor takes on enormous relevance, being above all else. What has to make the difference lies in the quality of service, in the personal touch and in small details. Buying cheaply has become a question of status because it implies intelligence in the budget management of everyone. In this sense we can say that the smart shopping option has gained ground. Families increasingly place more in store on premium purchasing at very competitive prices.

On the other hand, the development of the outlet concept itself, which today offers an enormous variety of quality brands which are increasingly available in the best collections, displayed in pleasant and well kept up shops, providing visitors all the comfort and a variety of services, ‎makes outlets one of the main choices when it comes to shopping by consumers. The fact that we offer discounts of between 30% and 70% all year round that can even reach 80% in stock off seasons, sets us apart from the other shopping facilities available in the north of the country. Our quality/price relationship is hard to beat.

Therefore, at a time of strong restraints and contraction in consumption, we’ve come up with an effective response to the current needs of consumers, who see the outlet centre t as a “destination centre”, where they go with the intention of buying.

Proof of this lies in the public’s support for our centres: At Vila do Conde The Style Outlets, in recent years we’ve received over 20 million visitors which adds up to an annual average growth of 10%.

I believe that the concept of smart shopping will have an increasingly important role, so that I consider that the outlet concept will increasingly be seen as one of the best shopping options available in the market. In a study on Shopping Habits and Style that we carried out last year we saw that more than a third of those asked included in their replies that outlet centres were places of preference to do their fashion shopping, which goes to show the growing acceptance of this concept among national consumers. | 39

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“

For 2013 we’ve already signed up new brands and others are in negotiation. I believe that we will continue to offer clients that visit us a mix of brands that are increasingly appealing and at competitive prices.

Have brands been increasingly looking to Outlet formats to sell their products? Are there many brands in the pipeline expected to come on board? At the rent negotiation level, have you noticed more requests by brands for support in setting up and requests for more flexible payment terms and the renegotiation of fixed rents?

We are the second largest outlets operator at a European level. We currently run 15 outlets in six countries in Europe: apart from Portugal and Spain, we operate in Italy, France, Germany and Poland, where we’re continuing to grow and we’ve launched new projects, which are in various phases of development.

In this way, we keep up a daily contact with over 900 brands, that have been operating in our centres for various years and with which we’ve established a strong bond of confidence, which represents a real competitive factor when it comes to attracting new brands to our centres.

The average take up rate at Neinver centres is very close to 100%, which well demonstrates the preference of the brands. On the other hand, the growing number of people who visit our centres has meant that we’ve always had a vast range of operators interested in opening points of sale.

In 2012, we opened at Vila do Conde The Style Outlets shops for important brands such as Guess, Rockport, La Perla and Crocs.

Lefties from the Inditex Group and Lacoste which have been at the centre for several years, decided to enlarge their shops, showing a strong investment in the outlet concept.

For 2013 we’ve already signed up new brands and others are in negotiation. I believe that we will continue to offer clients that visit us a mix of brands that are increasingly appealing and at competitive prices.

As to the amount of rents charged in the sector, I can say that we are very reasonable when it comes to analysing the various situations that arise, which is why we don’t have big issues in this area.

How have visitor numbers developed; what was the amount of average spending in 2012 compared to 2011?

What are your expectations for 2013? How far has The Style Outlet GIFT Card helped to increase your sales turnover?

Last year was very good for our centre: we registered a total growth of 9% in takings compared with the same period in 2011, which was also reflected by an increase in sales turnover. We achieved daily record takings on Super Style Day, a monthly event in which discounts reach 80% when a large number of the shops make absolutely exceptional discounts. At the start of the winter sales, after Christmas, we saw a very significant increase in sales. I would also point out the increase in affluence of the upper middle class, as well as the number of tourists that are increasingly seeking us out. The 40 | Sustainable Investment

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energy that we put into our campaigns also enables us to attract client loyalty and conquer different public target groups.

For 2013 our goal was to pursue the strategy of sustained growth that the Vila do Conde The Style Outlets has enjoyed. We want, on the one hand, to continue offering the customers that visit us a mix of increasingly more attractive brands at competitive prices and, on the other hand, reinforce our services and the management that we provide to operators that have invested in this centre.

The Gift Card Vila do Conde The Style Outlets is a pre-paid card created to be used in the centre and by all the retail operators that accept MasterCard. On getting the Gift Card, the desired amount is put on it, which can then be spent on various occasions throughout the year. It is a card that has been widely accepted by our customers.

And now the Style is also on mobile phones via the Style Card The Style Outlets. This is an smartphones application which after being downloaded enables customers to get information about the latest products, news, special offers, discounts and campaigns.

Furthermore, with this app, customers can get “Style Outlet” free points cards on which they get points with the purchases they make in every shop. All they have to do is activate it when making a payment by asking for the code in the shops and photographing the app code with their mobile phones.

What projects do you have in the pipeline for the near future in Portugal? Do you still have the same plan for new openings In Europe?

In the six European countries where we operate, the goal is to continue growing, in Portugal specifically with our project in the Algarve; but then new markets could arise in the near future. We’ve launched new projects which are currently in various phases of development. Actually, NEINVER’S strategy involves consolidating its position in the markets where it is already present and in seeking out opportunities in new markets.

For 2013 we’re planning to launch new projects that will soon take shape. At the end of the first quarter a new outlet centre was launched in Poland, while in the second quarter the third phase of Castelguelfo The Style Outlets, in Italy. At the end of the year we’ll be opening a retail area in Katowicka, Poland. All of this shows our commitment to international expansion while consolidating our leadership position in Europe.

NEINVER’s specialisation in the retail sector and specifically in outlets, as well as our vast experience in the development, promotion and management of centres is a huge asset, much appreciated by international developers and investors, who see in us a strategic partner to develop or acquire new projects. This enables us to quickly and effectively penetrate new markets, thereby reinforcing our internationalisation strategy, as happened, for example, in France, through our strategic alliance with MAB.

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Sonae Sierra

A SPECIALIST AT THE CUTTING EDGE OF SHOPPING CENTRE INDUSTRY JOSÉ FALCÃO MENA | Director, Sonae Sierra’s EMEA Services Department

42 | Sustainable Investment

Sonae Sierra is a specialist at the cutting edge of shopping centre development, ownership, management and the delivery of services to third parties in markets as diverse as Europe, South America and North Africa. José Falcão Mena explains more.

With 22 year experience in this industry, the company owns 47 shopping centres, manages 70 and has seven projects under development, four of which for third parties.

Our proactive approach to the business ensures that we have the necessary capital required to maintain and market our shopping centres, attract new and innovative tenants and increases our centres’ asset values. This strategy has allowed us to develop a unique know-how and has earned us international recognition for the development of innovative products and delivery of highquality property management and development services. This in turn has enabled us to develop our activity as a knowledge provider to third parties.

In this role, Sonae Sierra is a valuable partner focused on the creation of value throughout the entire lifecycle of an asset, whether it can be, the concept and architectural design, the development, expansion, refurbishment or management of a shopping centre.

The EMEA Services Department brings together the know-how of a highly specialized team, used to face ambitious challenges. As a result it can provide high quality shopping centre services covering all aspects of market analysis, concept and architectural design, development, marketing, letting, property management - and asset management.

SONAE SIERRA`S STRATEGY FOR NEW MARKET PENETRATION Entry in a new market can be make smoother by delivering third party services prior to direct investment. It is a way to learn first-hand about the market characteristics as well as about key risks and opportunities. Another approach is to build partnerships with

local investors or shopping centre operators, to share skills, capabilities and spread investment risks. Brazil is one of the world’s most promising retail markets. Sonae Sierra established an early strong presence and a successful business for about fifteen years, resulting in stable and fast growing developments. Besides Brazil, other countries in the South American region now show a dynamic and promising retail sector, such as Colombia, for example.

Another example of expanding economy regions is North Africa.

The emerging markets of Morocco and Algeria, for instance, promise solid growth and a positive economic development.

There Sonae Sierra provides third party services in the areas of development, property management and leasing, assuring modern and competitive shopping centres for its clients. Such services bring together the know-how and experience of a specialised team covering all aspects: market analysis, architecture, development, leasing, marketing, property management and asset management.

It is essential to have integrated shopping centre know-how, but also market expertise and a good local business network are key factors.

One of the biggest barriers when expanding in emerging markets is the shortage of local partners. Local partnerships are essential to guarantee the right understanding of regional barriers, bureaucracy, business codes and particularities of the market and culture.

A solid engagement with local partnerships in emerging markets like South America, the Middle East, North Africa or Southeast Asia will certainly continue to offer promising growth opportunities for companies like ours.

When we enter a country, we see it as long-term investment. As such, we want to create strong relationships as well as establishing credibility. | 43

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PLANS FOR DEVELOPMENT IN EMERGING MARKETS We’re focused on continuing our international growth and looking for new opportunities, especially within emerging markets.

The shopping centre investment outlook for emerging markets is encouraging: retail investment in fast developing countries is far more dynamic rather in mature regions and in need of growth and management expertise. Brazil is a prime example, but other regions in Latin America or North Africa offer good prospects for international shopping centre developers, managers and investors.

Sonae Sierra’s expansion in such dynamic markets has proved to be a successful strategy towards achieving sustainable growth in these fast growing economies.

It is very important that we establish ourselves and in doing so, we satisfy several key objectives, such as gaining market knowledge in terms of competition and retail presence. As we do this, we are generating revenue for the company by providing services. Then, in the near future, we will consider investment in those markets.

While mature markets have a stable or even slightly declining economy, emerging markets show impressive economic growth, increasing population and medium-sized businesses development and a fast-growing middle class. In these markets shopping centres will become an increasingly popular destination not only for shopping, but also services and leisure activities.

In terms of possible new entries, Sonae Sierra is looking closely at the entire Mediterranean coast at the moment, as well as a number of markets within Asia. There is a high probability that Sonae Sierra will start providing services in this region in the near future, especially given the increased development activity that has been seen there. Clearly, this could prove to be a very important market.

For us emerging markets are extremely important. Given our history and the fact that we started out in markets such as Portugal and Brazil, we have become very skilled and experienced in working in countries in which the retail activity is emerging.

44 | Sustainable Investment

With our established presence and credibility in both established and emerging markets, we have huge potential, not only in terms of cross-selling between countries but also in bringing tenants and other retail providers to new, emerging markets, and vice-versa.

Our main objective is to consolidate our operations in newer markets such as Morocco whilst developing our leasing activity there. We have several clients with whom we are working and have been undertaking much market research to identify potential sites for new shopping centre development. We also anticipate entry into at least two new markets this year. 

SONAE SIERRA’S PRESENCE IN EMERGING MARKETS NORTHERN AFRICA

MOROCCO: development services for 3 Shopping Centres in Casablanca: Marina Shopping, Ibn Tachfine and Californie projects.

ALGERIA: Sierra Cevital (local company) is providing leasing and property management services for 3 shopping centres: Uno Shopping Centre Mostaganem, Uno Shopping Centre Ain Defla and Uno Shopping Centre Bouira.

SOUTH AMERICA

BRAZIL: 8 operating Shopping Centres and 2 Shopping Centres under development (Boulevard Londrina Shopping and Passeio das Águas Shopping) COLOMBIA: Sierra Central is the service provider company for the shopping centre sector, result of a partnership between Sonae Sierra and Central Control, a Colombian company.

EMERGING EUROPE MARKET

CROATIA: Sonae Sierra is providing development services for Point Shopping Centre in Zagreb. Also providing Property Management and leasing services.

[ PHOTO RE P ORT ]

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2nd Planet Sierra Tenant Award Sonae Sierra distinguishes FNAC, Nespresso and Continente for green practices

Photo Report

Sonae Sierra’s 2nd Planet Sierra Tenant Award which recognises retailers that pursue best environmental and sustainable practices, presented gongs to FNAC (CascaiShopping), Nespresso (NorteShopping) and Continente (Centro Colombo).

1. MARIANA ALVES | National Boutique Manager, Nespresso Portugal • SANDRO RIBEIRO | Boutique Manager Nespresso, NorteShopping • TIAGO MARTINS | Ambassador SHE Boutique, NorteShopping • FERNANDO GUEDES DE OLIVEIRA | CEO, Sonae Sierra • FRANCISCO NOGUEIRA | General Manager, Nespresso Portugal • JOÃO FONSECA | Director, NorteShopping • ELSA MONTEIRO | Director, Chief Sustainability Officer 2. LUÍS TOMÁS | Director, Continente/Shopping Center Colombo 3. LUÍS VILHENA DE MENDONÇA | Director, Cascais Shopping • ELSA MONTEIRO | Director, Chief Sustainability Officer • PAULO SEIA | Director, FNAC CascaisShopping • JOSÉ DE SOUSA | Security & Maintenance, FNAC CascaisShopping • CRISTINA SANTOS | Board Member, Gestão de Centros Comerciais em Portugal | 45

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E-COMMERCE

A THREAT OR OPPORTUNITY? ANTÓNIO SAMPAIO DE MATTOS | President, PORTUGUESE COUNCIL OF SHOPPING CENTERS (APCC)

They say ‘necessity is the mother of invention’ and that has never been truer than today. But can retail adapt to the challenges of on-line shopping? António Sampaio de Mattos, President of the Portuguese Council of Shopping Centers (APCC) sees new technology as an opportunity for modernisation rather than a threat.

A

t a time of many questions and few answers, we risk falling into a hole if we predict that the key to the future for most human activities lies in the word ‘Innovation’. I have been loudly insisting that this concept can be applied to all areas, and more specifically to retail real estate activity. However, it is not in times of plenty that the best and most creative solutions arise, but rather in times of difficulty and scarcity, proving the old adage, “necessity is the mother of invention”.

There are many examples today, especially with regards to retailers, of really fascinating ways of boosting business, ways increasingly based on technology that is within the reach of everyone at any time.

Diversifying distribution and sales channels via on-line IT platforms and Internet sites are just the ones used more commonly and which, according to specialists, will drive the greatest growth over the next few years.

This concept that makes use of various tools, known as multichannel, is today an undeniable reality, although often condemned to failure by not attaining the initially hoped for results.

ELECTRONIC COMMERCE THREAT OR OPPORTUNITY?

With the incredible growth of electronic commerce at a global level due to technological advances in terms of securely transferring bank and personal data, the first studies focusing on Internet consumer habits began to appear. Specific products were created to carry out commercial on-line payments and transactions, achieving an acceptable level of confidence 46 | Sustainable Investment

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Shopping centers that are well located, with a better and more varied and innovative range of products and facilities will continue to be successful for a good many years.

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on the part of consumers and retailers that glimpsed a huge river of opportunities in this new form of commercial relationship.

According to the conclusions of a recent inquiry into Portuguese families from the National Institute of Statistics on Using IT and Communication Technology (Instituto Nacional de Estatística à Utilização de Tecnologias da Informação e da Comunicação) 66% of homes have a computer, 61% have Internet connection and 60% have broadband access.

However, from those who surf the Internet, just 13% purchase on-line. But the growth potential of this type of commerce has been borne out by another conclusion from this same study which shows the strong use of Information and Communication Technology amongst young people from the 10 to 15 year old bracket, with 98% of those asked in this age group saying that they regularly used a computer, 95%, surfing the net and 93% using a mobile phone.

most competitive and dangerous, since only the customer, with the power that is currently conferred on it, can, in a short space of time, through the social networks, destroy a brand.

DIFFERENTIATING SERVICES

Shopping centre operators are very aware of this reality and admit, now, to including a high number of different services from those that are offered on-line, which once would be difficult to imagine being integrated into shopping centers. The formulas of these products being offered at this level are now debated in the main international forums, but I would say are already widely known by the Portuguese.

Moreover, the vanguard that our country has in this sector has proved a source of inspiration for many operators that recognise our capacity to adapt shopping centers to correspond, at the right times, to the characteristics of demand at all levels.

Public and private health service represents one activity that currently is enjoying the The issue of using new technology to greatest growth all over Europe. Other complement retail business as an attitude to public services of a cultural nature, such as follow, or not, has been one of the most exhibition centers, theatres, municipal burning questions that the entire retail libraries and cultural centers as well as sector is currently facing. This apparent public services integrated into one space, threat could very well turn out to be an such as the well known case in Portugal of excellent opportunity for all those involved, the “Citizen Shop” (Loja do Cidadão), if practical requirements are safeguarded added together to a mixed use of facilities such as the ability to quickly meet requests, with a strong component of leisure and the reliability of transactional and logistical food courts, can make the difference assumptions, processes that taken together against the products available on the contribute towards building the degree of Internet. confidence that the customer has in the brand. It is very important and wise to Another phenomenon seen a lot recently consider the Internet as the largest market has to do with the adoption of in the world, but at the same time, also the multichannel sales models integrated with

physical shops, whether located in shopping centers or not, as areas that showcase goods and provide an experience.

This integrated “show-room” type of experience, has raised many issues with regards to how a shopping centre is run, since variable income from these units cannot be measured around the shop’s turnover. For this reason, some operators in countries where this trend is more developed, as is the case in France, have adopted a variable income based on shop footfall and not on turnover, since in these cases the transactions made between these retailers and their customers are mainly made on-line.

These differentiating models, integrated and adapted to the shopping centers sector, in the light of this new omnipresent reality, are contributing to the continuation of the shopping centre as a destination for all types of purchases, leisure, health care, a wide range of cultural experiences, but also as places to experience and use new communication and information technology in all the relationships between the customer and centers and retailers.

I see the integration of this technology as an excellent opportunity for our industry to modernise and take many steps forwards, using the tools available to all for the benefit of all. The inevitability of change is real, and this change is happening a lot faster than all the others in the past. I admit, however, that shopping centers that are well located, with a better and more varied and innovative range of products and facilities will continue to be successful for a good many years. | 47

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Jones Lang LaSalle

Open Day Photo Report

Jones Lang LaSalle team invites all the clients and staff to visit the new office, enjoying a networking business drink and the excellent view from the building.

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1. NORBERTO SOARES COELHO | BPI • PATRICIA ARAÚJO | Head of Retail, Jones Lang LaSalle 2. JOSÉ ANTÓNIO DE MELLO | Board Member, Selecta • MARIANA SEABRA | Offiice Agency & Corporate Solutions Director, Jones Lang LaSalle 3. LUÍS VIEIRA | Commercial Director, Immochan Portugal • MÁRIO COSTA | General Manager, Immochan Portugal • MARGARET IVENS FERRAZ | Retail Leasing Consultant, Jones Lang LaSalle 4. ANDREAS PERZL | Board Member, Deustshe Bank • PEDRO LANCASTRE | Managing Director, Jones Lang LaSalle 5. PATRICIA ARAÚJO | Head of Retail, Jones Lang LaSalle • PEDRO COELHO | Square AM • PEDRO LANCASTRE | Managing Director, Jones Lang LaSalle • LUÍS SALINAS | Square AM 6. PEDRO LANCASTRE | Managing Director, Jones Lang LaSalle • MIGUEL RIBEIRO AGUIAR | ESAF 7. MARIANA SEABRA | Offiice Agency & Corporate Solutions Director, Jones Lang LaSalle • ALFREDO CASIMIRO | Urbanos 8. PEDRO QUINTANILHA | Temple • WALTER FÁBREGA | Capital Markets Director; Jones Lang LaSall 9. BERNARDO SAMPAIO NUNES | Summit Nutritionals • PEDRO LANCASTRE | Managing Director, Jones Lang LaSalle • ANDREA VALENTI | Draft FCB 10. PEDRO LANCASTRE | Managing Director, Jones Lang LaSalle • PEDRO SÁRAGA LEAL | PLMJ | 49

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12. SÉRGIO MEIRELES | Fundger • RUI MOURA | Fundger • MARIANA SEABRA | Offiice Agency & Corporate Solutions Director, Jones Lang LaSalle • JORGE MADEIRA | Fundger • PEDRO TOSCANO • PEDRO LANCASTRE | Managing Director, Jones Lang LaSalle • ODETE PERA | Marketing Director, Jones Lang LaSalle • MARGARET IVENS FERRAZ | Retail Leasing Consultant, Jones Lang LaSalle • FERNANDO VASCO COSTA | Head of Strategic Consultancy & Research, Jones Lang LaSalle 13. ANTÓNIO VIEIRA DE ALMEIDA | Caravela • PEDRO LANCASTRE Managing Director, Jones Lang LaSalle • BERNARDO THEOTÓNIO PEREIRA | Domínio Capital 14. GONÇALO CHAMPALLIMAUD | PARTAC 15. JOÃO MADEIRA DE ANDRADE | Commerz Real • PEDRO LANCASTRE | Managing Director, Jones Lang LaSalle • JOÃO TORROAES VALENTE | Lawyer, Uría Menéndez 16. PATRICIA ARAÚJO | Head of Retail, Jones Lang LaSalle • OSCAR COLAS |COO, Jones Lang LaSalle 50 | Sustainable Investment

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I WANT TO TELL YOU A STORY Storytelling as a tool for attracting and getting investment VALTER ALCOFORADO BARREIRA | Executive Director, KNOWING COUNTS

Valter Alcoforado Barreira explains how telling a story with a moral or emotion can be a useful tool for attracting business interest and investor confidence.

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ersuasion as an integral part of the communication strategy for attracting investment is vital for creating the necessary confidence to achieve these types of transactions.

The most common in the business world is the attempt at persuasion using uniquely logical and rational means, rhetoric, statistics, current and potential market shares backed up by slide presentations in XXL and Long-Play.

Stories are a useful management tool to get investments, among other organisational goals such as the transfer of corporate stock, company culture or the development of leaders. But is it only those who have the talent and imagination of a scriptwriter or author that have the abilities to use this precious resource?

It will be noted that I spoke in techniques and not in the "art" of Storytelling because the skills of storytelling are identified, they may be learnt and trained by any professional (without harming some characteristics of natural communication). After these Less usual is the complementary use of more emotional and skills have been acquired and practised, the stories may be used symbolic methods like Storytelling. If well put together and used, in various professional situations. will prove decisive in the voluntary choices of investors for these investments, given the countless possible alternatives.

Permit me to share two examples of the previous arguments: i) I recently worked with the foreign CEO of a multinational And it is in this field that the techniques of Storytelling when operating in Portugal, who understandably still has some correctly used are an important complement of the purely difficulties in speaking fluently in Portuguese in public rational and technical model for promoting investment Meanwhile, through our work together he managed to distil to opportunities and destinations and therefore constituting his vast senior management experience, two educational and valuable tools of persuasion. And should the audience like this inspiring stories and related them with his corporate objectives "journey" they will want more, they will want to have a part for 2013. He told them brilliantly in Portuguese and they went in this script, be part of the story, and feel endogenous and down like a treat with all the staff. emotionally motivated into taking a positive decision. ii) When I defended by Masters Dissertation, I opted to use GOOD STORIES: the Storytelling techniques to communicate with the illustrious • They allow the underlying idea of the rational exercise to be academic members of the jury. I knew this option was risky. joined to one or more emotions.

• They teach something (the moral of the story in traditional However I was surprised and very grateful when the President tales), which may be the profitability of investment, a way of of the Jury, kindly and generously informed me that he had supplying a market need, the values of a company, or another awarded me with an additional mark to the classification that decisive point for potential investors. they had expected to give, mainly because of the way I presented • They make conversations flow, act as catalysts for good it. It was yet another confirmation of how even professionals in discussions, and obviously chatty and curious investors are much the most conservative circles such as academia are also sensitive better then a line of silent investors, at the end of a meeting table and want to see an idea associated to an emotion. or auditorium, in the twilight, fighting against the sound when the pitch is made from the person trying to convince them.

Anybody can identify with, create and tell memorable, interesting, • They enable a vivid image of action in movement, which could strategic, true, unique, short and too-the-point success stories to those be something that has already happened of future scenario actions they want to teach, that can be shared naturally and without bragging where the potential investor may, if he wants, be part of them. to a vast number of stakeholders, be they investors, clients or staff. • They stick in the memory. By creating a strong image in the memory of the listening person, the key aspects are not forgotten. would like to know more about the methods of storytelling • They create agreeability and rapport with the interlocutors and Ifforyoubusiness ends, then please don't hesitate to contact me: Valter it is known that being pleasant is equally or more important than Alcoforado Barreira: VAB@KNOWINGCOUNTS.NET competence in professional choices. | 51

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VALOR DO MOMENTO SPECIALIST CONSULTANTS A MADE-TO-MEASURE BUSINESS SERVICE SERGIO SANTOS AND JOﾃグ BERNANDES | Partners, VALOR DO MOMENTO

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With the challenges companies have been facing since 2008 created by political and economic circumstances, Valor do Momento, founded in 2011, has succeeded in facing them head on while meeting the needs and challenges of the market, conquering its position in an extremely competitive and demanding environment.

We’re a consultancy company specialising in financial, management, real estate and environmental areas, made up by a team of professionals with the necessary know-how, experience and support skills to solve a vast range of issues. Our professionalism and accuracy in delivery mean our projects achieve high levels of success. We support private and public entities by improving their performance and create sustained value for our economy.”

The Partners admit to aiming to become a benchmark company when it comes to real estate and environmental management consultancy service provision, essentially focusing on Small and Medium-sized companies to provide solutions that add value, using best practices and technology in line with the strategy and organisation of its clients, stressing that ethics, transparency, close links and accuracy are ever present.

The services that Valor do Momento presents are focused on the following areas: Financial Services and Accountancy, Management and Real Estate Consultancy and in the Environmental area.

Our team is made up of professionals with a vast experience in financial and environmental areas, having actively participated throughout its career in the development of various real estate, tourism and hotel projects, in civil construction, financial auditing and internal control as well as in service provision in the environmental area, namely in environmental consultancy, training and water treatment projects.

We offer our services within a financial framework based on financial, accounts and management consultancy, with relevance to financial management support with mechanisms that enable the critical points of a business to be monitored, leading to success, from accounting and tax matters to budgeting and treasury plans in the short and long term and with respective periodic reporting. In turn, according to Jõao Bernardes, Valor do Momento supports the client in analysing investment projects in terms of viability which serves as a basis for financial

structuring, while at the same time producing a business plan which is custom made for the client. To back up investment projects analysis we put forward and introduce new strategies or reposition the business using operational management methods and instruments.

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Our team is made up of professionals with a vast experience in financial and environmental areas...

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With regards to the real estate and environment areas, Valor do Momento’s strategy according to João Bernardes is developed for the following areas: for real estate we provide all kinds of real estate consultancy from sales support plans supported by our real estate valuations department with expert valuation agents who are CMVM accredited, to the management of the project itself.

In the Environmental Consultancy area we provide services at a water treatment level, Environmental Impact Studies and even Environmental Licensing. In the same fashion, we support the entire implementation of the Quality Management Systems (NP EN ISSO 9001)/Environment (NP EN ISO 14001). In this area, we’ve strongly invested in training so as to professionally value assets in the sector and/or train staff who are not specialised in this domain. Therefore we offer recognised and custom made training action plans that meet the needs and characteristics of organisations, built around the requirements of the final client. Valor do Momento has a supply of fully qualified trainers to deal with a variety of environmental topics.

www.valordomomento.com | 53

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Where Nature means money!

QUIZ & THE ENVIRONMENT RICARDO BARROS COSTA | Partner, QUIZ AMBIENTE

The growing economic impact of what is recognised as the Environment has accelerated the transformation of the conceptualisation of the term into a numerically expressive factor for the economy and the survival of mankind. This is, simply put, the use of environmentally friendly equipment which has come to not just mean taking into consideration economic factors, but equally its benefits in the long run for the surrounding environment.

population or the governmental authorities the importance and the seriousness that it has attained today.

Back in the 1960s, the then new concept of the Environment was understood as being linked to enthusiastic youth movements which arose out of the new libertarian attitudes that were made possible by the end of the world wars, with changes that were more or less political and more or less anti-establishment; a concept which, not being relevant to the status quo at the time, did not merit from either the

Being attentive to the interests of the Environment is, therefore, more than just a simple philosophical attitude, it is an act of intelligence from the Nations and Peoples in the generation of sustainable fundamental ideas for the harmonious development of economies at all levels, local, regional, national and international, in the globalisation that affects everyone in its positive and negative effects.

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More than a just a simple word tossed about at some event, the Environment went on to gain its own importance and political relevance, principally after the RIO 92 Conference, if only for the growing politically correct recognition that the Nations have given it in the modern reconstruction of their economies.

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At Quiz we produce to meet market needs, using all the latest productive technology, without being tied to one single market concept‌

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It is known that very often the changes humanity makes in its onward march are born out of the recognition that methods used in any one moment are worn out. It is only then that Mankind makes an effort, already in extremis, to find new solutions, forced by the pressure of events. It is also understood in this new century that the industrial practices of the past two centuries have led the world to growing costs for declining profitability, demanding new investments in the demand for solutions that are more environmentally friendly and can in time much lower costs than the ones we currently face.

In this change of paradigm, in this window on the World seen through frightened eyes because of the current reality, proEnvironment attitudes do not just restore Mankind to his natural familiar place among other living creatures that inhabit this Planet, as they enable a new hopeful outlook that maintaining and respecting a sustainable Environment brings us.

Quiz questions and maintains a mature attitude in relation to these realities which are also structured it to its activity in the greater interest of its customers and the Environment that surrounds us.

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At Quiz we challenge ourselves and we want our customers to ask us: what is the best solution that we have for them and for the Environment?

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We understand that there are not single universal solutions, neither at national or local level, and that each activity is a case in point, that is customer is a case too, and that each solution to be found leaves a fingerprint on the world of understanding and that each one meets their goals on the aggregate of their stakeholders, and of which the surrounding Environment will certainly not be the lesser consideration.

At Quiz, we intend that products are produced to meet market needs, using all the latest productive technology, without being tied, like before, to one single market concept, whilst going far beyond this in the introduction of new market concepts and solutions.

The market has seen a modest growth in grey, brown and clean water storage and treatment, due to the implementation of European standards whose regulation has only recently forced greater demand from the private and industrial target markets (ETAR - Hydrocarbon Separators, Fats and Septic Tank Slurry Separators), activity areas in which Quiz aims to become a market leader in integrated solutions at all phases, and where its projects have produced excellent results, from inception, construction, start-up and maintenance, while focusing on the new realities and responsibilities that we have before the world that surrounds us.

We should be aware that we’re not the only ones, but we make the difference, the difference from a rational change in methods. It is for this reason that our mission at Quiz is to innovate in grass roots areas that have been relatively stagnant for the past decade, introducing new technical elements and new commercial expressions in the recovery and use of rain, dirty and polluted waters, thereby leaving a greener and longer lasting footprint.

By making use of group synergies, Quiz can cut operation costs for its customers and provide a more effective and firm presence in the market, investing in its technical availability to meet the needs of these customers, being thus in a position to better satisfy the same more quickly.

At Quiz we challenge ourselves and we want our customers to ask us: what is the best solution that we have for them and for the Environment? 

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Aman Resorts at Herdade da Comporta Herdade da Comporta, a subsidiary of Rioforte (Espírito Santo Group), has announced the development of Comporta Dunes, a unique project on the Iberian Peninsula. Representing a total investment of 92 million euros, between 2013 and 2015, the project will be financed by national and foreign private funds, as well as QREN (National Strategic Reference Framework) funds.

Photo Report

1. ADRIAN ZECHA | Founder Member, AmanResorts • PAULO PORTAS | Ministry of Foreign Affairs, Portugal • MANUEL FERNANDO ESPÍRITO SANTO | President, Herdade da Comporta and Rioforte • ÁLVARO SANTOS PEREIRA | Ministry of Economy, Portugal • PEDRO REIS | President, AICEP 2. MANUEL FERNANDO ESPÍRITO SANTO | President, Herdade da Comporta and Rioforte 3. PAULO PORTAS | Ministry of Foreign Affairs, Portugal 4. PAULO PORTAS | Ministry of Foreign Affairs, Portugal • MANUEL FERNANDO ESPÍRITO SANTO | President, Herdade da Comporta and Rioforte 5. ÁLVARO SANTOS PEREIRA | Ministry of Economy, Portugal 6. PEDRO REIS | President, AICEP Portugal 7. ADRIAN ZECHA | Founder Member, AmanResorts 8. PAULO PORTAS | Ministry of Foreign Affairs, Portugal • ÁLVARO SANTOS PEREIRA | Ministry of Economy, Portugal • ESPÍRITO SANTO | Family Patriarch • ADRIAN ZECHA | Founder Member, AmanResorts | 57

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EXPO REAL 2013

The perfect real estate platform to network and do business

TÂNIA MUTERT DE BARROS | Portugal Representative, Munich International Fair

Running from October 7-9, this year’s EXPO REAL will focus on industrial and commercial real estate, the hotel industry and the Euro crisis. Portugal once again marks its presence with Sonae Sierra and Pura Imagem among others.

EXPO REAL CONCEPT Networking is the key word for EXPO REAL which runs yearly in October in Munich.After a modest beginning in 1998 as a national German fair, EXPO REAL rapidly became one of the leading international fairs. Once again around 38,000 participants from 70 countries are expected at the 16th edition which runs from October 7-9 and clearly demonstrates how international this event has become.

The themes at EXPO REAL are industrial and commercial real estate, its investment opportunities and financing, as well as the indispensable networking around international projects. Access to the fair is limited to professionals, which allows contacts to be established at the highest level and ensures a true “working environment” at the fair.

EXHIBITION AREA IN 2013 Six pavilions are planned with a total exhibition area of 64,000m2 for the 2013 edition at Munich’s modern trade fair site. EXPO REAL once again brings together the entire real estate sector, from the developers, agents, architects and projects ateliers and even banks, insurance companies and real estate funds. One area in plain expansion at the fair is LogRealCampus, a specific real estate area for logistics. Another area in the spotlight is the hotel industry: represented at a stand under the banner World of Hospitality with 58 | Sustainable Investment

various international hotel chains and development companies.

THE FAIR’S TARGET PUBLIC EXPO REAL is strictly open to visiting professionals. The mandatory registration of visitors ensures that exhibitors receive a high level of clients. The EXPO REAL concept has been seen as a ‘working fair’ from its first edition, a fair where concrete projects are discussed and business deals are sealed.

In 2012 we were able to count on 38,000 professional participants from 70 countries, with the Top 10 visiting countries being Germany, the United Kingdom, Austria, Holland, Poland, France, Switzerland, the Czech Republic, Russia and the USA. COLLECTIVE STANDS The collective participations from countries and regions has been the model of success in terms of participations at EXPO REAL. The number of collective stands from regions or countries is constantly increasing: in 2012 we had stands from France, Holland, Luxembourg, Poland and Slovenia. But cities too are also making the most of this opportunity to showcase themselves to potential investors, as the Barcelona, Moscow and Vienna stands showed.

PORTUGUESE PARTICIPATION A long-standing exhibitor, Sonae Sierra finds EXPO REAL the ideal platform from which to carry out its international business. It already has a strong presence in Germany, as the co-owners of various shopping centres, including Alexa in Berlin. Pura Imagem is also expected to take part at this year’s fair.

The company made its début in Munich for

the first time in 2011 and was very satisfied with the contacts and even the deals it sealed at the fair. Aware that the lion’s share of capital in the market comes from Germany and the other Central European countries, EXPO REAL is proving the ideal platform to attract new investors to Portugal. We hope to be able to count on the participation of Lisbon or other economic regions in Portugal.

In terms of the type of visitors, the fair annually counts on scores of various Portuguese professionals, such as real estate agents, developers, architects, banks and real investment management funds.

CONFERENCE PROGRAMME The conferences are an important part of the EXPO REAL concept. In areas located inside the pavilions, which have free access, there will be a number of seminars, round tables and workshops in four distinct areas running in tandem over the three days.

The vast programme of conferences is presented by 400 specialists of note who will discuss the latest trends and innovations in the real estate market. One of the main themes is without a doubt the situation after the economic and financial crisis, as well as problems related to the instability of the Euro currency and the consequences of that for the real estate market. 

Portugal Representative at the Munich International Fair MundiFeiras, Lda Tel: 22 616 49 59 Email: mundifeiras@mail.telepac.pt www.exporeal.net

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Dutch Chamber Business Drinks

Dutch Portuguese Chamber of Commerce Lisbon Business Drink with the Finnish,Swedish and Swiss chambers and ANJE, and the Young Entrepreneurs of the German Chamber.

CHRIS GRAEME | Photos

1. ARIE REIJN | Economist, Deltion College • FRED ROELFSEMA | Assessor BTEC, Deltion College • F. F. VAN DER WATEREN | Elfra • MARJON VAN DINTHER DE UTRA MACHADO | Director, Dutch-Portuguese Chamber of Commerce 2. ALEXANDRA CESÁRIO | Partner, Know Consièrge Services • ERIC VAN LEUVEN | Chairman of the Dutch-Portuguese Chamber of Commerce and Managing Partner, Cushman & Wakefield 3. BRUNO SILVA | Commercial Department, Save Home Systems - SHS • RODRIGO BERNARDO | Chief Sales Officer, Sendys Management Software • VANDA ALEIXo | Sendys Management Software 4. ROBERTUS LOMBERT | Managing Partner, AquaSleep/Prauts International – Cost Reduction • CRISTINA MOURA | NBI Brain Profile • FRANCISCO TRAVASSOS | NBI Brain Profile 5. WERNER GRUNER | Real Estate Sales Director, Longevity Wellness Resort • RICARDO SIMÕES SANTOS | International Manager, Agap 2 • DANIEL QUARESMA COSTA | Manager, Agap 2 | 59

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DISCOVER LISBON YOUR BUSINESS ATLANTIC HUB RUI COELHO | Executive Director, INVEST LISBOA

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The fact that Lisbon is highly competitive, being certainly the European capital where one can find the best investment opportunities and the best price/quality relationship of products and services is not widely recognised.

In 2013 Lisbon returned with a stand and participating in four conferences to MIPIM, the largest real estate fair in the world that takes place every year in March at Cannes.

The concept we have used, Discover Lisbon your Business Atlantic Hub, aimed at positioning Lisbon as the ideal business platform between Europe and emerging Atlantic economies, particularly those of Portuguese language like Angola, Brazil and Mozambique.

European companies can take advantage of our deep cultural and economic relation with the seven Portuguese speaking economies and their 250 million consumers. We have established double taxation agreements and transport connections with those countries, and all the major Portuguese companies are already working there.

Therefore, Lisbon is the ideal location for businesses that target those markets.

But Lisbon is also uniquely positioned for companies from outside the European Union to take advantage of Europe’s 500 million consumers, because of it’s geostrategic location and the quality and competitiveness of its human resources, offices and infrastructures.

As responsible for Invest Lisboa and the coordination of Lisbon’s presence at MIPIM, in partnership with Lisbon City Council’s Department for the Economy and Innovation, I believe Lisbon’s participation was very positive for three main reasons: Firstly, it reflects the City Council’s ambition to compete for the attraction of international investments, after a period of reorganisation that culminated with the approval of the new PDM (Lisbon’s Master Plan).

The fact that Lisbon is highly competitive, being certainly the European capital where one can find the best investment opportunities and the best price/quality relationship of products and services is not widely recognised. Therefore, it is necessary to raise awareness of the advantages we have to offer investors and one of the best ways is to be present at these international events.

Secondly, the city’s participation resulted from the successful partnership and cooperation between several companies and business associations, and we believe that together (public and private partners), under the Lisbon

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brand, the chances of success increase and we can benefit from economies of scale.

Although each partner has its own strategy it is the role of Invest Lisboa and the City Council to provide the best possible conditions for the partners’ success, ensuring the political willingness to encourage companies to invest in the city and explain Lisbon’s vision, reflected in its policies and in the new Master Plan.

The cooperation with Lisbon’s companies will, desirably, be the model for upcoming international promotional projects. It is, therefore, of the outmost importance to give tribute to those who have accepted the challenge of participating in this first pilot project, in spite of the financial constrains we currently face.

Companies such as ESTAMO, OBRIVERCA, PLMJ – Sociedade de Advogados, LISPOLIS - Lisbon Technology Park, EDP Imobiliária, Selecta - Sociedade Gestora de Fundos de Investimento Imobiliário, architect Mário Santos, real estate consultant Camilo Costa, Rosa Vibrante, Lda, Vida Imobiliária magazine, Partners in Business magazine, AIP (the Portuguese Industrial Association), APEMIP (a Portuguese real estate agents association) and IPD (a development promotion institute), as well as the support of CBRE Portugal.

Thirdly, we have made several important contacts with prospective investors that, hopefully, will result in new and significant investments for Lisbon. The fact that we have already received in Lisbon a delegation from one of them it is a good indication that the advantages Lisbon has to offer investors are starting to be recognised.

To conclude, we consider that, do to the economic crises we are facing we must increase the international economic promotion efforts, namely to attract investments, companies and talents, once Lisbon should not promote herself in the international arena only as a city for tourism.

A concerted strategy should be followed by Invest Lisboa, and its funding partners: CML (Lisbon City Council), ACL (Portuguese Chamber of Commerce and Industry) and AICEP (Portugal’s Trade & Investment Agency), together with several other companies and institutions, once our primary objective should be to boost Lisbon’s economy, create jobs and wealth for the city.  | 61

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The Future of Public Media Service in a Digital World – The RTP Case CHRIS GRAEME | Photos

RTP will no longer depend on the State Budget for financing by 2014 says the President of the Board of Directors of RTP, Alberto da Ponte at a luncheon hosted by the International Club of Portugal at the Fontana Park hotel in April.

1. MANUEL RAMALHO | President, ICPT • ALBERTO DA PONTE | President, RTP 2. CARMONA RODRIGUES • MANUEL RAMALHO | President, ICPT 3. FRANCISCO ALMEIDA LEITE | Secretary of Estate of Foreigner Affairs • ANNE TAYLOR | President, American Club of Lisbon 4. ALBERTO DA PONTE | President, RTP 5. FRANCISCO ALMEIDA LEITE | Secretary of Estate of Foreigner Affairs • NUNO SARAIVA | Sub Director, Diário de Notícias • VALTER BARREIRA Executive Director, Knowing Counts 62 | Sustainable Investment

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Health – Social and Economic Cohesion ICPT Luncheon ­­– Maria de Belém Roseira CHRIS GRAEME | Photos

1. MARIA DE BELÉM ROSEIRA | Former Minister of Health • MANUEL RAMALHO | President, ICPT 2. ANALISA COSTA REIS • EVETE RAMOS | Adviser, Iran Ambassy in Lisbon 3. ANTÓNIO RUIVO | ICPT • JOAQUIM PINA MOURA | FORMER Ministry of Finances and President, Iberadrola 4. FÁTIMA ROQUE 5. ANA GOMES | Fundação Gil • MANUELA MIGUEL MARTINS | Fundação Gil 6. ANA MOURA 7. FERNANDO CARDOSO 8. CAROLINE FLEETWOOD | Ambassador, Swedish Embassy in Lisbon • BENRHARD WRABETZ | Ambassador, Austria Embassy in Lisbon 9. ANNA CAROLINA PINHO • BENRHARD WRABETZ | Ambassador, Spanish Embassy in Lisbon | 63

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SPOT & TALENT

Promotes Sports Tourism and the country’s image The Ski Clube Quinta Grande, just 50 minutes from Lisbon at Coruche, is Europe’s only all-year-round water skiing club. From its huge artificial lake – with slalom and jump courses – some of the must successful official competitions and water skiing lessons take place, where big sporting talent has been revealed, like Marta Simões, the famous water skiing world champion.

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VICTÒRIA FERNANDES | Report

he Ski Clube Quinta Grande, one of the most famous ski spots, is linked to the sport’s biggest supporters – the Simões family. If the pioneering vision of this family turned water skiing in Portugal into a highly professional and respected sport, the family singlehandedly contributing to its resurgence (from 1987), then it is equally undeniable that this sport’s success in Portugal is largely down to the countless triumphs in national championships and recognised successes in international competitions that the family has achieved. In recent years, the Ski Clube Quinta Grande has attracted national athletes and a growing number of European ones, continuing to make the sport more dynamic and professional nationally, as well as promoting sports tourism – as can be seen by the levels of loyalty shown

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to this destination which is greater than non-sports tourism here per se - as various studies have confirmed.

“The school is open all-year-round and operates through appointment bookings,” stresses Francisco Simões who runs the skiing school. “We’ve got a shop selling equipment but anyone who wants to learn skiing or wakeboarding just needs to bring swimming trunks since we’ll provide the rest”, he adds.

Since it’s a private club, the members get preferential conditions (price/lesson), although there is the option of a 10 lesson package, in addition to the hourly classes, for non-members.

Fantastic water skiing shows take place on the waters of the Clube de Ski Quinta Grande lake: not only official competitions such as skills and creativity displays but competitions involving

radical manoeuvres on boards or with the feet alone, as in the sport known as barefoot. It is a place that attracts beginners (children and adults) to professional athletes.

It was on the waters of the Ski Clube Quinta Grande lake that the current European slalom champion began her first water skiing classes when she was just two year old, guided by her father Francisco Simões, an experienced teacher of the sport (three times national slalom champion). Since then, Marta Simões’ career has been marked by extraordinary successes: from amongst 143 skiers from 23 countries, the sportswoman won the gold medal in the Europe and Africa Championships in Holland in the 2012 Water Skiing Championships (Juniors Category under 17s) when she was just 16. In 2013 Marta Simões came in fourth place in the World Water Skiing Championships in Australia.

In Portugal, Marta is one of the stars of the TMN Team Dream, bringing together athletes from various sports, and has supremely represented the Portuguese sport at an international level, indirectly contributing to encouraging sports tourism.

Sports tourism has huge potential, with a consequent impact on the local economy and at the loyalty level versus tourist destination level, as a recent study which covered the Estoril Coast showed (revealing that sports tourists are more loyal than non sports tourists). In this sense, the study is useful in helping local authorities and national tourist boards to identify and upgrade potential sports destinations like Ski Clube Quinta Grande, in order to attract these types of tourists. Indeed, over the past twenty years the interest in sport, especially elite sporting events and activities, has grown at a phenomenal rate. Sports

tourism at the international, national and regional levels has a double effect – the direct effect of competitors and/or spectators and accompanying persons attending, and the indirect effect of the publicity that the destination receives which leads in turn to more tourists. This indirect spinoff can be huge.

Today tourism is the world’s number one industry while sport is regarded as the number one industry in the leisure sector.

Sport is an integral part of all cultures, and while often viewed as a separate activity, it is inextricably linked to tourism. Sport can now be viewed as an attraction within the broader tourism industry.

Major tourism destinations are developing tourism product concepts revolving around pleasure sports. These concepts enable

destinations to stand out from their competitors and increase their competitive edge in the international arena, attracting consumers who are keen on getting in touch with nature, and mixing with the community to enjoy more healthy and interactive holidays.

In fact, Ski Clube Quinta Grande, with its unique conditions (natural, know-how, sporting activities and events/training big talent, hospitality and location) represents a valuable pathway to improving or upgrading the image of the Ribatejo and even Portugal as a destination. The economies of cities, regions and even countries around the world are increasingly reliant on the visiting golfer and skier. In some countries, sport can account for as much as 25 % of all tourism receipts. In fact, sports tourism might still represent a niche market, but it is a growing one.  www.skiclube-quintagrande.pt

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[ PA RT NE R S C AR ]

Impressively civilised E 300 Hybrid BlueTEC

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n getting into the well known Class E, everything is the same. The amazing quality interior is already familiar with one difference - on turning the key in the ignition the noise of the engine cannot be heard.

On putting the already known 7 G Tronic automatic gear box in drive, one feels this Mercedes moving out of its silent mode in low speeds, to enjoy a consumption of 4.5 Iitres per 100 km, driving around urban areas with extremely low CO2 emissions.

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Of course, when needed, there’s the famous 250 CDI bi-turbo diesel engine ready at any moment with its combined binary of 589 Nm. This E 300 Mercedes Hybrid enjoys very advanced technology and is ecologically sound with the brands extras patently evident.

Price – from €61.400

The Sporty Lightweight Mercedes SL 350

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ith a new aluminium frame the SL 350’s body is robust and safe in addition to being lighter. Its large air vents and headlights with LED technology, that give it an imposing front that stands out, together with the double escape and the panoramic roof detail, magic sky control, providing a perfect combination between elegance and sportiness.

The latter backed up by a fantastic and extremely economical petrol engine with 306 PS third generation direct injection and an automatic 7G Tronic Plus gear box. It feels like being in a day-today car, a little indiscreet but with a comfort and modest baggage space putting it in a class of its own, together with the original details and an list of optional extras including the sporty PACK AMG, available for 6.422 euros.

Just driving around in the SL with the convertible down makes it seem like a coupé, while the car is particularly quiet. Driving at high speeds with the retractable roof down doesn’t pose a problem in terms of wind sheer although it doesn’t have a lot of luggage space.

Price – from 121.000 €

Exclusive Luxury Mercedes S 250 CDI

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he 5th generation S-Class, now equipped with the already familiar Mercedes four cylinders diesel engine used in the E and C classes, with 204 PS, makes the S 250 CDI your gateway to the top-of-the-range Mercedes at a very appealing price for its class.

On getting in one feels that not a single detail has been forgotten and the quality inside is unparalleled. On starting up this two tonne car, the absence of noise from the engine or from outside is immediately noticeable. The S Class drives with a smoothness and performance which is rather pleasant and comes as quite a

surprise given the elasticity of its engine.

The comfort, space and exclusivity of this top-of-the-range car takes you on any journey with low fuel consumption thanks to the familiar 250 CDI bi-turbo engine,it being the first time that the Mercedes in its top-of-the-range has a four cylinder engine.

Price: from 121.000 €

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RT NER SR SC CARAR [ [PAPARTNE ]]

The new GL - It’s Grand!

GL 350 BlueTEC 4 MATIC

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his is the largest Mercedes sports utility vehicle (SUV) ever produced, kitted out with a powerful 3.0 V6 diesel engine which enjoys surprisingly high performance when accelerating, 7.9 sec 0-100kms easily reaching its 220 kms/h top speed. This car rips along the motorway with ease.

Driving with this mechanical marvel with its immense and roomy luxury interior where quality and comfort are the order of the day, is sheer bliss, so that a family of seven will not go unnoticed wherever they go.

Inside the driver enjoys the very best driving experience with a range of visibility which is excellent from any angle.

All fitted out in superb leather inside that you’d expect from a Class S with a motor that purrs at any velocity. This car

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provides wonderful handling on the motorway but is easy to drive around town in much the same way as its younger brother, the new GLK, with all the technology backup of sensors and rear parking assistance.

Off the road, this model’s supreme reactive pneumatic suspension provides a smooth ride on the bumpiest of terrain, dealing with the widest range of obstacles with ease, although it would be a shame to put such a classy Jeep on poor roads.

The only drawback is the final price for this model with its immense list of optional extras that are hallmark features for this brand.

Price – from 103.000 €