Nº7partnersinbusiness

Issue Nº 7

:: October 2013

Commercial Markets

• Another Bailout?

• Tax Matters • SIL 2013 • Luanda Towers • Menu Portugal • Onyria Marinha

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INDEX

04 • Message from the director 06 • Can Portugal avoid a second bailout?

10 • Corporate tax matters and real estate 12 • Richard III: The king under the car park 16 • Partners news 23• Tivoli Hotels & Resorts celebrates its 80th birthday 24 • Vista Towers: A luxury landmark project for Luanda 26 • SIL 2013: A property springboard for Angola, Brazil and China 28 • B.Prime: Time to pick up a property bargain?

30 • CBRE: Why investors are back in town 32 • Cushman & Wakefield: Plenty of prospects for urban rehabilitation 34 • Worx: Why now is the right time to invest!

36 • C&W Marketbeat: Good perspectives on the horizon 40 • Onyria Marinha Edition Hotel & Thalasso: The third best hotel in the world 44 • Menu Portugal: Designing your holiday down to the smallest detail 46 • The new man at the Corinthia Hotel 48 • Photo report: The Corinthia Hotel welcomes its new managing director 50 • Intelligent Cities: the smart way of living for the 21st century 51 • ESPART unveils Oeiras Golf & Residence 56 • Photo report: Glamour and Diplomacy at the Marriott 59 • The changing face of retail: Why customers are calling the shots 60 • Photo report: Marques Mendes’ call for politicians devoted to public service 62 • Cars

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DIRECTOR | Luis Figueiredo Trindade • lft@partnersinbusiness.info COMMERCIAL DEPARTMENT | geral@partnersinbusiness.info EDITOR | Chris Graeme • chris@partnersinbusiness.info DESIGN CONCEPTION | André Freire • David Martins DESIGN DEVELOPER | Alice L.C TRANSLATION | Chris Graeme PHOTOGRAPHY | Chris Graeme IMAGE CREDITS | University of Leicester (photos page 13-15) 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.

Commercial Markets | Issue Nº 7 – October 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. |3

[ EDITOR IAL ]

PORTUGAL A TIME OF OPPORTUNITIES

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LUIS FIGUEIREDO TRINDADE | Director, PARTNERS IN BUSINESS

Now is a time of opportunity, explained by the good perspectives of making a profit in the medium to long-terms, proof of which can easily be seen from the way rental values and yields in the national market are behaving.

ortugal’s real estate market is getting a second wind, primarily motivated by the investment sector. The interest shown by investors in buying real estate assets in Portugal is largely a reaction to the prices of available properties in the market coming down. The origin of this investment, which is especially concentrated on national investors but also some foreign players, comes from institutional entities and investment funds which are interested in buying.

The weak activity of this sector recently, is not only down to the increase in unemployment, but also the uncertainty and lack of confidence that continues to plague the national and European economic outlook. Portugal’s reputation in the financial markets and the fact that the ‘Troika’ of international lenders had to step in, has changed the way these investors see Portugal and do business, but the conditions needed for us to think about recovery seem to now be being created, with the end of the Troika’s period of adjustment in June 2014 now in sight.

Quality assets there are, with secure rental contracts by good tenants and cheaper prices, but there continues to be a lack of available space for large tenants. If to that is joined the reality of an enormous lack of developer liquidity and loans from national banks and assets on the market which up until now rarely appeared on the market, it’s easy to see why now is surely the right time to come into or strengthen one’s position in the Portuguese real estate market. Now is a time of opportunity, explained by the good perspectives of making a profit in the medium to long-terms, proof of which can easily be seen from the way rental values and yields in the national market are behaving.

At a European level, the appetite of the commercial real estate markets has grown considerably since the beginning of 2013, both in Italy and Spain. Ireland as a peripheral market has recovered the confidence of investors substantially this year. In Brazil, sustainable economic growth and the greater willingness of the banks to lend credit for real estate, has created an excellent investment perspective in this market.

Since September Angola has been a market with a new impetus with the appearance of investment funds. So, apart from the real estate sector becoming more professional, the potential for investment growth in this market has increased the potential not only for private savers but also for the banking sector with the creation of these investment vehicles.

4 | Commercial Markets

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[ SPEC IAL R E P ORT ]

IS PORTUGAL HEADING FOR A SECOND

Bailout?

CHRIS GRAEME | Editor

To all intents and purposes Portugal is a model pupil to the outside world, passing all of its ‘troika’ evaluations with flying colours. So why then aren’t the ratings agencies listening and why does her sovereign debt interest keep rising.

Chris Graeme takes a closer look.

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espite the political crisis caused last summer by two ministerial resignations over the Government’s austerity policies, the PSD-CDS-PP centre-right coalition Government has survived and passed its 9th evaluation with the IMF-EU-ECB ‘troika’ of international lenders.

The Government has met most of the financial obligations set for it and passed all nine evaluations, even at times going above and beyond what was required.

But the interest rate on Portugal’s 10-year sovereign bond issues continues to hover around the 7% per cent mark, meaning that financial institutions and credit agencies still see Portugal as a major credit hazard with a risk of default.

Throughout early October a long line of economists and political commentators

6 | Commercial Markets

explained why. Despite closing her balance of payments deficit gap through increased exports and reduced imports, Portugal’s combined public debt and private debt (debt incurred from Government spending, private company and consumer borrowing) remains unsustainable – 130% of GDP by 2014.

In other words, Portugal still spends more than she earns and despite all the positive noises from the ‘troika’, the ratings agencies and international lenders have done their maths and have easily worked out that the figures simply don’t stack up.

And it’s not hard to see why. Portugal, like many other countries within the Euro Zone, hasn’t got any real economic growth. The latest figures out from the Bank of Portugal show GDP growth at only 1.1%, yet its spending continues to remain high.

money markets. Yet at the end of the Financial Adjustment Programme the interest on 10-year bonds is now actually higher than it was six months ago, even through there are clear if modest signs of economic recovery in all segments and sectors.

And that means that any illusion that Portugal might have had about regaining her financial autonomy have been, for now at least, cruelly shattered.

So does this mean, as some on the far left and within the PS socialist party are suggesting, that the bailout programme has failed and that all the blood, sweat and tears over the past two years has been in vain?

Not necessarily. The troika programme did succeed in putting right a number of structural imbalances within the Portuguese economy that in the medium and long-terms were, from any point of view, unsustainable.

Portugal’s bailout had a clear goal: get to June 2014 with the right conditions for the country to be able to finance itself on the international However, it has to be said that most of the

financial imbalances were done by savage cost-cutting and severe tax hikes which have threatened Portugal’s fragile recovery, rather than by seriously reforming the State and public administration.

The result of these policies has been record numbers of failing businesses - not all of them bad – sky-rocketing unemployment and a deep recession if not an actual Depression.

So Portugal is now faced with two unhappy alternatives. Either request a second bailout which the Government will do its very best to camouflage under another name - and Greece did this – and this would mean more savage rounds of austerity – or negotiate, like Ireland did, an Outright Monetary Transaction Programme (OMT) where the European Central Bank (ECB) agrees to bankroll Portugal for an interim period until it can stand on its own two feet.

The fly in the ointment for Portugal is that it will only be able to get an interim “tide-me-over” if between now and June 2014 it can prove that it has the capacity to get the financing that it needs on the international markets – in other words issue medium and long-term debt on a regular basis and at interest rates that are sustainable.

So now the Government is trying to beat the clock. It has to convince its creditors, who are still haunted by the ghosts of last summer’s political crisis, that it can return to the markets and that its debts are sustainable.

The idea that the Portuguese economy is beginning to show signs of recovery has been gaining ground during the last period of time when the ‘troika’ was in town in September. The ‘troika’ believes that if Portugal can keep up the commitments it made, then interest rates on sovereign bonds will fall back to 5% as they were in May and June Lowering the interest rate is seen as an absolute priority by the European Commission since only by stabilising the rates back to below 7% can Portugal negotiate an interim programme with the European

Portugal is now faced with two unhappy alternatives. Either request a second bailout, or negotiate, like Ireland did, an Outright Monetary Transaction Programme (OMT) where the ECB agrees to bankroll Portugal for an interim period…

Central Bank. At the end of 2012 Portugal was able to swap €3.8 billion in interest due on long-term bonds, and earlier this year it went to the market and raised the rest it needed: In January, it was able to borrow €2.5 billion at below 5% in a five-year bonds auction, while the sale of 10-year debt in May raised another €3bn at 5.75%.

So far Portugal has received €66 billion of the €78 billion three-year bailout. And according to the IMF’s most recent report on the country, issued in the summer, the Government was expecting to raise €15.8 billion from the bond market next year - no mean feat if borrowing interest rates continue to be at the 7% mark.

But now some talk in the corridors of Brussels is that the EU will step in and provide financing in 2014 if Portugal is unable to raise the cash itself.

The IMF report states: “Having ended 2012 with a comfortable stock of deposits (€15 billion), the Portuguese Government has adequate |7

[ SPEC IAL R E P ORT ]

Right now the ‘troika’ is placing the blame and the responsibility squarely at the foot of the door of the TC and its judges…

resources to meet expected financing needs for the next 12 months or so.” Yet despite the fact that the European Central Bank could allow Portugal access to its sovereign-bond-buying scheme (Outright Monetary Transactions), some, like the ECB’s head, Mario Draghi, have made it clear that “bailout countries are not eligible”.

The confidence expressed in the IMF report, despite continuing high interest rates on sovereign bonds, is one of the reasons why the ‘troika’ is not prepared to cut Portugal any slack over the State Deficit for 2014.

In other words sticking to the deficit target and thereby convincing the markets to lower the interest rates on bonds is still seen as the only way for Portugal to negotiate an OMT programme.

But meeting the deficit is easier said than done even with the best of intentions from the Government.

The problem is Portugal’s Constitutional Court or TC which is making life extremely difficult for the Government to make further cuts to public administration jobs, salaries and pensions.

The Government is putting pressure on the Constitutional Court to not throw out its reforms and the current deadlock between the two is not good for investor confidence and the sovereign bond markets.

In the ‘troika’s’ October statement after its 8th and 9th evaluation missions it made it clear that fresh attempts by the court to reject budgetary measures could “put at risk Portugal’s chances of returning to the market”.

CAUGHT BETWEEN A ROCK AND A HARD PLACE Right now the ‘troika’ is placing the blame and the responsibility squarely at the foot of the door of the TC and its judges who sit in Ratton Palace.

In a statement released after the joint Government ‘troika’ press conference earlier this month, a veiled threat was made making it clear that if some of the budgetary and reform measures expected by the adjustment programme were thrown out because they were “unconstitutional”, the Government would have to “reformulate the budgetary project in order to meet the budgetary deficit limit of 4% of GDP agreed” under the terms of the bailout programme.

And it has warned that this situation “implies added risks in terms of growth and employment” reducing the perspectives of a sustained return to the financial markets”, in other words without further cuts the Government would have to find the money somewhere and that could necessarily mean more direct or indirect taxes.

Dealing with the Constitutional Court is no walk in the park for 8 | Commercial Markets

the coalition Government headed by the PSD’s Pedro Passos Coelho and the CDS-PP’s Paulo Portas. While the prime minister hasn’t spared the rod in his criticisms on how the TC judges have made their decision, privately some members of the Government admit that constitutional exit strategies need to be found if Portugal isn’t to go the way of Greece and descend into political and economic turmoil.

One thing is certain, financial creditors outside of Portugal really are not interested in how Portugal meets its targets, as long as it does meet them. They cannot see, neither want to understand why Portugal can’t cut more from its expenses bill.

And the longer the political and legal stalemate between the Government, opposition, social partners and legal entities goes on the more likely that Portugal will be unable to gain its financial autonomy next summer when the adjustment programme comes to an end. And after so much pain and sacrifice that would be a tragedy for the Portuguese people indeed. 

[ BUSINE SS OPINION ]

CORPORATE TAX MATTERS: REAL ESTATE INVESTMENTS INTO PORTUGAL The first positive measure that may affect current⁄future investments is the target for a 5-year spectrum to gradually reduce nominal CIT rate. Portuguese CIT is currently levied at 25%, added by municipal surtax up to 1.5% as well as a state surtax of 3% or 5% on profits exceeding Euro 1.5 or 7.5 million. The draft reform paves the way for gradual reductions of headline 25% CIT Rate and eliminations of the surtaxes – with final target rate set between 19% and 17%.

MIGUEL MARQUES DOS SANTOS | Lawyer & partner of GARRIGUES PORTUGAL

The second positive measure affecting real estate structures are changes to the participation exemption rules. Currently investors are only able to upstream dividends free of withholding taxes under the framework of the EU Parent Subsidiary Directive. The draft report provides for a wider withholding tax exemption for distribution of dividends by a Portuguese company. To access a withholding tax exemption, main proposed requirements will be: (i) 2% minimum shareholding; (ii) one year holding period; (iii) geographically limited to EU/EEA or jurisdictions with tax treaty with Portugal (provided exchange of information mechanism is in place); (iv) company receiving the dividends is fully subject to comparable income tax and a minimum statutory rate of 10%.

report proposes to extend to 15 years (from 5 years) the carry-forward period for losses originated as from January 1 2014.

A fifth area are where favorable changes are proposed are the tax group regime –with the reduction of the minimum holding percentage from 90% to 75% to elect for tax grouping – and tax neutrality rules for reorganizations – with the elimination of the pre-request to transfer losses in the framework of tax neutral transactions. This simplification measures are coupled with an increase of the threshold for contemporaneous transfer pricing documentation, streamline treaty-relief documentation and overall simplification of tax compliance.

Off course not all are good news and real estate investors should be wary of the review of the interest barrier rules. In Portugal, interest for the acquisition of assets or shares is generally deductible. In 2013, Portugal replaced the old thin-capitalization rules (2:1 debt-to-equity ratio) by an interest barrier rule. This rule limits the deductibility of net financial expenses to the higher of the following: (i) €3 million ($4 million), or (ii) 30% of EBITDA. The draft report proposes: (i) a reduction of the first barrier to €1 million, (ii) adjustments to the calculation of the EBITDA, and (iii) tax group TIAGO CASSIANO NEVES | Lawyer & The changes to the participation exemption calculation of the thresholds (presently Principal Associate of GARRIGUES also provide for an exemption on capital computed at individual level). The draft report PORTUGAL gains on the sales of shares by resident maintains in place the important phase-in companies (under similar conditions).Despite provision according to which the EBITDA he Real estate is an investment limit will be 70% in 2013, 60% in 2014, 50% in activity specially affected by any enlarging the scope of the capital gains changes in the tax landscape. As exemption not being a game changer – as real 2015, 40% in 2016 and 30% from 2017 onwards. It is likely that this proposed changes a result, proposed corporate tax estate structures in Portugal are generally structured through the use of a Portuguese on the field of interest deduction will affect changes in Portugal are expected to have holding company (SGPS) – this development existing or future real estate structures. positive impact on the attractiveness of real is set to simplify and provide for more tax estate for foreign investors. efficient structures. It is also relevant to point It is expected that final proposals will integrate that no changes are proposed on capital gains a Bill to be delivered to Parliament by the end High corporate tax rate, withholding tax on derived by non-residents from the sale of of October 2013. Ultimately it is critical for dividends, complexity of the tax system and investors to have an understanding not only of compliance requirements are normally pointed shares in Portuguese companies, which the current rules but also how any of the out as potential obstacles to foreign investment. continues to broadly exempt unless gains derived relate directly or indirectly from proposed measures may affect a real estate A draft report released last month provides shares whose assets consist in more than 50% strategy into Portugal. As corporate tax important measures to be included on the matters, investors should be watchful for future Portuguese corporate income tax reform. The of Portuguese real estate. changes for 2014.  proposals are intended to modernize and further enhance the Portuguese corporate tax A fourth positive modification set to enhance the current regime is the extension of the system and address many of the obstacles period for tax losses carry-forward. The draft frequently pointed out by foreign investors.

T

10 | Commercial Markets

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

HOW BAD WAS

Richard III ?

CHRIS GRAEME | Editor

M

ost school children have heard of bad King Richard III; England’s mad monarch who murdered his brother’s own children to steal the throne during the Wars of the Roses. The subject of one of Shakespeare’s plays, several films and countless books, his misdeeds have gone down as one of the great unsolved murder crimes in history.

12 | Sustainable Investment

Who doesn’t know the immortal lines “Now is the winter of our discontent” or “a horse, a horse, my kingdom for a horse”?

Edward IV so well since they were young, would really have betrayed his brother’s trust and bumped off his own nephews.

The surprise discovery of Richard Plantagenet underneath a municipal car park in the British city of Leicester earlier this year has sparked renewed interest in this maligned king.

What do we really know about Richard from the manuscripts of the time? Could it be that Tudor dynasty propaganda painted this unfortunate monarch black to legitimise its own weak claim on the English throne?

Dubbed the archaeological find of the year, many historians are once again asking if it really does make sense that Richard Plantagenet, who served his brother King

Edward IV, king of the House of York, who seized the throne from the weak and mad Henry VI and almost certainly had him put to death in 1471, was young, handsome, and

virile and had two healthy heirs to the throne – Edward, Prince of Wales and Richard, Duke of York. No one was expecting him to catch a marsh fever aged 42 and die leaving the throne to a minor with their mother, the commoner, Elizabeth Woodville and her ambitious family in charge.

in itself, was not so strange. The Tower of London contained a medieval palace where traditionally kings and queens of England stayed until their coronation.

At first they were seen by witnesses playing in the gardens, gradually they were seen less and less, until one day in 1483 they just disappeared.

What we know is that the boys’ uncle assumed the position of Regent, and that the Queen Dowager, Elizabeth Woodville, fearing Shakespeare describes Richard as for her life, took sanctuary in Westminster a humpback, with one shoulder Abbey with her children. higher than the other. We know from contemporary sources that he was A campaign was apparently orchestrated slight of build, almost effeminate, a which made the princes out to be illegitimate graceful dancer but a brave, courageous after they were sent into the Tower of and respected warrior and an excellent London, allegedly for their own safety. This, administrator.

The search for the remains of England’s lost king began years ago but the announcement in February at Leicester University that the skeleton “was beyond reasonable doubt” that of King Richard III proved a sensation.

King Richard III was killed at the Battle of Bosworth in August 1485. Once dead, the chronicles say he was stripped naked, tried to a horse, and taken to Leicester where he was displayed, mutilated and eventually buried in a shallow grave at the Church of the Greyfriars.

The starting point in the search was a 31-page report from Leon Hunt, a member of the university’s archaeological services department,

| 13

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

“

Did he murder the princes in the Tower?

We’ll never know for sure. But Richard had all the motives and being a king in medieval times was a bloody business

”

which had located a brick wall which had once formed part of Greyfriars which was destroyed during Henry VIII’s Reformation.

It had been thought that Richard’s bones had been unceremoniously tossed into a nearby river.

It seems, from all the forensic, DNA and historical evidence that they were not. They lay under the floor of this church, which over the centuries became a garden, a bus depot, a school playground and finally a car park.

Based on maps and research, and with the permission of Leicester City Council, the archaeologists and 14 | Sustainable Investment

Philippa Langley of the Richard III Society got permission to dig three trenches in the summer of 2012.

On August 24th, the first day of the dig, a skeleton was uncovered two feet below the earth. In September the bones were dug up and sent off to the university’s laboratory for tests.

It was revealed that from the age of about 10 the individual had suffered from scoliosis or curvature of the spine. Richard was, according to propaganda, a hunchback.

The skeleton also had one shoulder higher than the other and rather delicate bones like contemporary accounts say of Richard.

Also the bones showed signs of having been hacked about. There was a piece missing from the back of the skull, an arrowhead lodged in the spine, and several other wounds, including one to the pelvis which suggests a blow with a sword.

This led to the conclusion that the body had indeed been mutilated after death since the blow to the head and the arrow wound were sufficient enough to have been fatal in themselves.

Radio-carbon dating then placed the age of the body at between the late 15th and early 16th centuries.

Evidence of having eaten seafood, normally something only the

aristocracy ate so far inland, also helped complete the jigsaw.

But it was the DNA tests that finally proved that the skeleton was 90 per cent likely to be that of Richard III. Two people descended from Richard III through his sister, Anne of York, provided swabs that matched the DNA samples taken from the skeleton.

One was a Canadian born carpenter living in London, Michael Ibsen; the other, an anonymous donor who is a direct descendant.

So, there we have it. Modern science, habeas corpus and circumstantial evidence say the remains are those of England’s most maligned king. But did he murder the princes in the Tower?

We’ll never know for sure. But Richard had all the motives and being a king in medieval times was a bloody business.

The chances are that he did. And if he hadn’t, his sister-in-law and their family would have tried to murder Richard anyway.

Perhaps then, England’s most heinous crime was in self defence. The secret of Richard III will have to go the grave with him when he is finally laid to rest in a tomb fit for a king in Leicester Cathedral. | 15

[ PA RT NE R S NEWS ]

NEW HUGO SHOP

by Hugo Boss opens in Passeio dos Clérigos in Porto The HUGO brand from Hugo Boss has opened a new shop in Passeio dos Clérigos, in Porto’s downtown.

Cushman & Wakefield acted as agents on behalf of Urbaclérigos, the company that has developed this new retail space in Porto and is the winner of the national award Urban Rehabilitation

2013 in the Best Development for Commercial Use category. The project’s main aim is to attract a number of trendy medium to high-end retailers to turn Passeio dos Clérigos into a commercial hub. The space currently enjoys a higher than 90% take-up rate and includes brands like

Diesel, Liu Jo, Max&co, RCC Camisas and Paez. Other brands shortly to be launched include Hoss and Fly London. In terms of catering establishments, there is the CLÉRIGOS restaurant (belonging to the famous Shis brand chain of restaurants), Costa Coffee and Segafredo.

PORTUGAL

Appoints New Managing Director for Spain

Adolfo Ramírez-Escudero succeeds Eduardo Fernández-Cuesta CBRE, the world property services market leader announced that Adolfo Ramírez-Escudero took up the post of Managing Director of CBRE Spain from August 2013.

16 | Commercial Markets

wins the organisation of smart times 2014

Portugal has won the right to organise ‘smart times’ 2014.

Following a vote in Lucerne, Switzerland, involving all those taking part in ‘smart times’ this year, Portugal and Cascais were chosen to organise the 2014 edition in what is the largest concentration of smart vehicles in the world. Austria and the United Kingdom were also runners up. ‘smart times’ means fun, a spirit of adventure, community and above all a world meeting of the largest concentration of fans of the brand which revolutionised the concept of urban mobility – the smart. This annual event involves around 2,500- 3,000 cars and the participation

Royal Óbidos Spa & Golf Resort Evolutee Hotel under construction ECONOMIC GROWTH AND GREATER CREDIT SUPPLY BOOSTS BRAZILIAN PROPERTY MARKET Prime Yield presents Guide to Real Estate Investment in Brazil After a slight contraction in 2011 and 2012, the Brazilian property market is showing good perspectives for growth this year and in the years to come, boosted by an increase in real estate credit supply, currently 6% of GDP and by sustainable economic growth.

This is one of the main conclusions in the Guide to Real Estate Investment Brazil (Guia de Investimento Imobiliário no Brasil), published by Prime Yield Brazil.

The guide was produced in

partnership with Machado Meyer Sendacz Opice and Miranda Correia Amendoeira & Associates, responsible for the legal and judicial input which affects real estate investment in Brazil.

The amount of real estate credit in Brazil has shown an upward trend in recent years, it being expected to have grown by 15% by the end of 2013 alone, contributing towards a reduction in the lack of existing residential properties and the development of property investments and developments.

Spotlight on Vila Galé Every month the Vila Galé Group will be releasing news and novelties to do with its hotels, restaurants, wines and surroundings.

Casa de Santa Vitória, a Vila Galé Group company specialises in the production and sale of Alentejo wines and olive oils, produces over 1 million bottles under the labels Versátil, Santa Vitória Reserva, Santa Vitória Grande Reserva, Santa Vitória Monocastas and Inevitável.

Five star boutique hotel opens in June 2014

Slated to open at the end of the first half of 2014, work is speedily progressing on the construction of the new hotel unit at the Royal Óbidos Spa & Golf Resort, which will be called the Evolutee Hotel.

This 5-star hotel will feature 40 rooms, two of which are suites, a SPA, health club, indoor pool, restaurant and bars, conference centre for 315 people and a magnificent outdoor pool. The hotel also will boast panoramic views over the Atlantic Ocean,

golf course and the Lagoa de Óbidos lake which will complete the range of facilities offered by this hotel which will boast the very highest standards of service.

Designed by architects Saraiva & Associados with the décor design from Voo Design Studio by Philippe Starck and John Hitchcox, two top names in the international interior design world, building work will be carried out by Neocivil, a Grupo MSF company .

Lisbon welcomes Urban Rehabilitation Week in 2014

Next year’s Urban Rehabilitation Week already has dates and venues booked. The event which celebrates city urban regeneration comes to Lisbon in 2014 when it will take place between March and April.

Urban Rehabilitation Week, organised by Vida Imobiliária and Promevi, promises to bring excitement to the Portuguese capital with events aimed at professionals, the student community and all Lisbon residents with special emphasis and a specific agenda aimed at kids.

It will be a week of fun-packed and stimulating activities that will also embrace art and culture which are essential components for the rehabilitation of cities. Urban Rehabilitation Week will be topped off with the presentation of the National Urban Rehabilitation Awards. | 17

[ PA RT NE R S NEWS ]

PEDRO FERREIRA APPOINTED DEPUTYDIRECTOR OF THE CORINTHIA HOTEL LISBON

Thirty-five thousand square metres of office space transacted in Lisbon in the first half of 2013

Pedro Ferreira has been appointed the deputy-director of the Corinthia Hotel in Lisbon where he will also head up the hotel’s Maintenance and Engineering Department.

According to Carlos Oliveira, Head of Office Agency at C&W in Portugal, around 35,000 m2 of office space in Lisbon was leased out in the

first half of the year, revealing a similar performance to 2012, which saw 36,000m2 transacted. It should be remembered that 2012 was the worst year for the offices market since records began, in line with the overall Portuguese real estate market and economy (excepting the exports market). The peak of Lisbon office market demand occurred in 2008, when over 230,000m2.

EUROATLANTIC

B.PRIME MARKS ITS 4TH YEAR

B. Prime is marking its 4th year in business and has a portfolio of around 65,000m2 of properties for sale in the Greater Lisbon region.

Since its inception, B.Prime has focused on a specific area, the offices segment in its various forms, namely Corporate – Tenant Representation, Investment, Agency, Architecture and Project Management, while supporting its clients in other areas such as Retail or Industrial.

In Portugal B. Prime represents DTZ, the 3rd largest property consultant in the world, which enables 18 | Commercial Markets

it to have direct access to the main market operators at a global level.

Responsible for having placed various companies in Portugal, helping tenants and owners get the most advantageous contractual conditions, B. Prime has found headquarter premises for various multinationals such as Bristol Myers Squibb, PPD, the Royal Bank of Scotland, Gasin/Air Products, among others.

celebrates 20th anniversary with a new Boeing B767 – 300

euroAtlantic airways (EAA), the airline founded by Tomaz Metello with a stake from the Portuguese hotel group Grupo Pestana, took receipt of a new Boeing B767 – 300 in August in the presence of its President/CEO and main shareholder, Tomaz Metello which also marked the Portuguese airline’s 20th anniversary.

Nine years after receiving its first wide-body, Boeing B767-300ER (Extended Range), it received its fifth plane in the Boeing series,

now added to the four passenger and one cargo aircraft it already has.

The new plane with the national registration number CS-TRN, from Arizona (USA), is currently parked up at Aeroporto Internacional de Lisboa (Lisbon International Airport), awaiting licensing from the Portuguese National Civil Aviation Authority (INAC).

The company already has a number of contracts in hand.

JONES LANG LASALLE

renews W Shopping management

Jones Lang LaSalle’s Property Management Department has been invited to renew its management contract for the W Shopping mall in Santarém.

The instruction was given by the mall’s current detainers “Fundo AF Portfolio imobiliário” managed by Interfundos –

Gestão de Fundos de Investimento Imobiliário, S.A. with the advice of F&C Portugal, Gestão de Patrimónios S.A.

achieved savings in overall expenses of 14% while its take-up rate has climbed to around 90% compared with 75% previously.

The initial contract, which Jones Lang LaSalle has renewed, was first signed in 2011.Since Jones Lang LaSalle took over the management of the mall in 2011 the mall has

Amongst the new shops at W Shopping are C&A, VIVA, Press News, Cafetaria Mimosa, Casa do Kebab, Perrute Cabeleireiros

CBRE TO MANAGE THE GHERKIN

The latest asset to be managed via the CBRE First Class Property Programme.

GILBERTO MARTINS Takes the helm at Neoturis Brasil

The international property consultant, CBRE, has been authorised to manage 48,000m2 of the Gherkin building by owners, 30 St Mary Axe (Bermuda) LP, a joint venture between IVG EuroSelect 14, a closed investment fund run by IVG Private Funds Management GmbH and Evans Randall.

This has occurred at the same time as the building, one of the most iconic commercial properties in the world, is about to celebrate its 10th birthday.

The 40ft skyscraper houses Swiss Re and various financial companies and professional services, including the US law firm, Kirkland & Ellis and the finance technology company, ION Trading.

Gilberto Martins who has been working as a consultant for Neoturis since 2006 has been appointed head of the company’s operations in Brazil. Martins has vast experience and knowledge of the tourism and tourist real estate markets not only on mainland Portugal, Madeira and the Azores and Brazil but also in countries such as Spain, Angola, Mozambique, São Tomé, Cape Verde and Nigeria. | 19

[ PA RT NE R S NEWS ]

SONAE SIERRA BEEFS UP ITS PRESENCE IN GERMANY Hofgarten Solingen opens to the publi on October 24th

Sonae Sierra, in partnership with MAB Development, has just announced the opening to the public of the Hofgarten Solingen on October 24th. With a â‚Ź120 million investment, the shopping mall will boast around 75 shops spread out over 29.000 m2 of GLA on three floors, offering 600

parking spaces. With a modern range of commercial and retail outlets, the new mall has already signed up wellknown international names, including some bigstores like H&M, Edeka and Spiele Max – all German household names.

Announces new appointments to Associate and National Directors in Portugal Mariana Seabra, Carlos Cardoso and Odete Pera have been promoted by the international property consultants

Jones Lang LaSalle has promoted team members at its office in Portugal. Mariana Seabra has been promoted to National Director, while Carlos Cardoso and Odete Pera are now Associate Directors.

20 | Commercial Markets

Jones Lang LaSalle has a policy of promoting staff members who have demonstrated outstanding performance when carrying out their functions, showing that they have the skills and

characteristics to bring added value to the company and its clients, in a progression scale that integrates Associate Director, National Director, Regional Director and International Director.

OVER 70% OF GLA ALREADY RENTED Passeio das Águas Shopping brings important brands to Goiás state

The opening of Passeio das Águas Shopping in Goiás will strengthen Sonae Sierra’s presence in Brazil.

Slated to open in the fourth quarter of 2013, o maior Centro Comercial do estado de Goiás it has 180.000 m2 GLA ()em 277 lojas, in an €130 million (R$ 384 million ) investment that is expected to create more than 6.300 direct jobs after opening .

CARTIER OPENS A NEW FLAGSHIP STORE IN LISBON

The A Cushman & Wakefield (C&W), consultora imobiliária responsável pela colocação da nova loja flagship da Cartier no edifício Étoile 240 em Lisboa, anunciou recentemente a tão aguardada abertura da mesma.

A loja, aberta ao público desde Julho, totaliza uma área de 575 m2 tendo sido projetada pelo arquiteto francês Bruno Moinard, responsável pelo design de interiores e arquitetura de todos os espaços da Cartier no mundo.

PICOAS AHOY! Fitness Hut opens two new health clubs!

Hot on the heels of announcing the opening of its latest fitness club in Braga, European Capital of Youth, which opens its doors in November with a 1900 m2 club, FITNESS HUT will soon open another club in Lisbon for fitness freaks who appreciate quality at a reasonable cost. The 1800 m2 Picoas Plaza will be inaugurated in January 2014.

| 21

[ PA RT NE R S NEWS ]

INVESTMENT IN WORLD REAL ESTATE MARKETS

continues to recover, with strong growth in the 1st half of 2013

CBRE APPOINTS CHRIS LUDEMAN

as global president of its capital markets department In his new role as Global President of CBRE Capital Markets, Chris Ludeman will supervise the global growth and integration of CBRE’s Capital Markets Services activities, including its Investment Sales, Debt & Structured Financing and Investment Consultancy (investment banking) arms worldwide. CBRE is a leader in global real estate investment markets. In 2012 it acted as the middle man in around US$130 billion in investment market contracts all over the world.

Preliminary figures from Jones Lang LaSalle show that direct global real estate investment turnover reached $114 billion in the 2nd quarter. The performance in the 1st half of 2013 was 11% up on the same period in 2012.

World real estate markets are continuing to recover in 2013, with investment turnover in tertiary real estate growing 11% in the 1st half of 2013 compared with the same period last year, reveals Jones Lang LaSalle’s Capital Markets Research Department which studied over 130 cities in 60 countries worldwide.

The Asian-Pacific and Europe, Middle East and Africa regions all registered strong growth in the first half of the year, with like-for-like climbs of 11% and 12% in respective transactional turnover.

Globally, the largest markets continued to enjoy growth in the 1st half of the year, with Japan (+ 50%), Australia The strong growth seen in the (+10%), United Kingdom (+ 2nd quarter of 2013 enabled 4%), Germany (+43%) and global real estate investment France (+6%) all registering turnover to remain above the like-for-like climbs. Only China $100 billion mark for the fifth (-20%) saw a fall in transactional consecutive quarter, showing a turnover in the 1st half of 2013, growing confidence amongst however business already in investors in tertiary real estate progress is likely to pick up in assets, despite volatility within the the second half of the year bonds and shares markets. Other which will be stronger. highlights include the USA and American continent where in the Jones Lang LaSalle estimates 1st half of 2013, the transactional that the transactional turnover totalled $90 billion, turnover in the second half of reflecting a growth of 9% the year will stand at between compared with the same period $450-500 billion, with global in 2012. Quarterly turnover in turnover at 11% above the Mexico and Canada grew same period last year with the significantly, accompanied by a second half of the year being continued acceleration in the generally more dynamic than USA market, where real estate the first. The global real estate investment increased 19% in investment market is well the 2nd quarter of 2013 in placed to overtake the like-for-like terms. turnover seen last year.

22 | Commercial Markets

CBRE LAUNCHES GLOBAL RESEARCH GATEWAY

CBRE has launched its Global Research Gateway, a new Internet gateway that provides access to a wider knowledge base, research and CBRE perceptions as to the real estate market in all regions and sectors.

The Global Research Gateway (www.CBRE.com/

researchgateway) brings together for the first time collective CBRE research and information on global research on one platform. The gateway will present leadership opinion and wide knowledge on the real estate sector, providing a window onto more than 3.000 research reports - global, regional and local.

[ PA RTN ER RE P ORT ]

TIVOLI HOTELS & RESORTS: 80 YEARS OF HISTORY AND STORIES TO TELL

A World of Famous Clients

Tivoli Hotels & Resorts celebrates 80 years of its brand this year. Over the past eight decades it has made its mark in the market, becoming a byword for innovative and quality hotels and resorts, the result of a sustained growth strategy.

Constantly investing in excellence and being different, Tivoli Hotels & Resorts today stands out for providing its clients with unique experiences. With this goal in mind, in the last few years, the company has focused on renewing its hotels portfolio, which was carried out at the same time as it completely repositioned its image in the market and overhauled the Tivoli brand.

At the same time, it launched its Experience More project, which is based on marketing the destination itself in partnership with local and international brands that add value to the services provided to clients.

To give some examples, it’s worth highlighting various partnerships with internationally recognised brands, such as Banyan Tree Spas, The Flo Group, in terms of restaurant catering; and Sergi Arola, in São Paulo or Purobeach in Vilamoura.

From the hotel’s side, the Experience Team supports the client from their initial search and booking to their return home, to make each stay a memorable experience.

Tivoli Hotels & Resorts is currently one of the main hotel chains in Portugal, with 12 hotels in Portugal and two in Brazil, offering around 2,975 rooms in four and five-star hotels.

The Tivoli Group was founded in 1933 with the opening of its prestigious Tivoli Lisboa in Avenda da Liberdade, in Lisboa. This was followed by investments in other hotels: Tivoli Palácio de Seteais, Tivoli Jardim, Tivoli Sintra and Tivoli Coimbra.

terms of its products in the Leisure and Golf sectors. In 2006, Tivoli Hotels & Resorts began an internationalisation strategy, buying its first hotel in Brazil: the Tivoli Ecoresort Praia do Forte, in Salvador da Bahia. In February 2009, the group opened its second hotel in Brazil, the Tivoli São Paulo – Mofarrej.

In Portugal, the following month, it opened its luxurious Tivoli Victoria, in Vilamoura. Last but not least, it signed an agreement in 2009 with the André Jordan Group for the management of The Residences at Victoria Clube de Golfe, luxurious apartments in front of the Tivoli Victoria.

Modernised and up-to-date, the brand has developed over 80 years so as to continue to satisfy the demanding expectations of its guests.

Entre estadias prolongadas ou mais efémeras, os nomes célebres atravessam gerações: Adamo, Andrea Bocelli, Astor Piazzola, Beatriz Costa, Beyoncé, Black Eyed Pies, Bo Derek, Brad Pitt, Charles Aznavour, Geraldine Chaplin, Fanny Ardant, Henry Fonda, Irene Papas, Jay Z, Johnny Depp Jorge Amado, Marlene Bought out by the Espírito Santo Dietrich, Maria Callas, Mário Vargas Group, it has three hotels in the Llosa, Montserrat Caballé, Neil Algarve, where the Tivoli brand has Armstrong, Omar Sharif, Plácido become substantially strengthened in Domingo, entre muitos outros.  | 23

[ BUSINE SS PROMO ]

EMBLEMATIC BUILDING IN DOWNTOWN LUANDA

Created in 2007, Escendo Ventures, S. A. is an Angolan real estate developer that promotes the buying and selling of land and real estate, implements architecture and engineering projects and buys and manages several subsidiary companies. The company has strategic partnerships, investing in the development of real estate and infrastructure projects.

The Vista Towers project comprises 3 buildings for residential, offices and commercial use. The Towers 1 and 2 for residential market and the tower 3, offices with 19 floors. The buildings share a common base with 9 floors and grow up to the roof level, including a 4 floor car park, Shopping Centre and an Office Centre for small businesses.

Vista Towers is being built on a plot of land of some 7.900 m2, located in the central business district a mere 150 meters away from the Luanda Bay. The Shopping Centre, Vista Shopping is located in the heart of downtown Luanda, very close to the bay. Rua Rainha Ginga, where it stands, is a traditional shopping spot for the population of Luanda and has long been filled with well-known brands. The Shopping Centre will have pedestrian entrances from the three streets and car access from Rua Major Kanhangulo.

Luanda downtown area is also the main business centre of Luanda, comprising the office buildings of the biggest multinational companies present in Angola. The activity of these companies has been growing rapidly, following the development of the country and its economy, requiring big offices and residential buildings for their staff. Presently, this area is one of most desired for both uses.

Estimated Opening Date at the end of 2014, with 3 floors, 12.000 m2 of GBA, 7.700 m2 of GLA and 250 parking spaces, the Vista Shopping will be positioned at a high level and oriented to primarily serve the many executives and business people that work or live in the area.

24 | Commercial Market

The tenant-mix will include a supermarket, services, fashion, of this tower is still open and could be adapted to future needs electrical goods and a food court. Vista Shopping will attract of customers. the main international brands from Europe and South Africa.

The residential towers, tower 1 and 2, were Project and built with The Offices tower, the number 3, it has 25.800 m2 of gross all of the clients request, both of them are sold to an international building area, 17.550 m2 of offices area with 100 places to park oil company. All of this Real Estate project are built according to in the garage and 5.800 m2 of private areas. The interior design the highest technical standards, IBC and Eurocodes Standards.

| 25

[ BUSINE SS INT E RV IEW ]

“ SIL’s Rental Stock

Market provides a unique opportunity to let delegates know about all the properties that are available to rent, something that’s extremely difficult to get through other means.

”

SANDRA BÉRTOLO FRAGOSO Coordinating director, SIL

26 | Commercial Markets

|

SIL 2013

Forging global links with Brazil, China and the Portuguese-speaking countries LUIS FIGUEIREDO | Interview

SIL 2013 promises to be bigger and better than ever, with the presence of big emerging markets like Brazil, China and the Portuguese-speaking countries. Urban Rehabilitation and the Rental Market will also feature big says SIL’s Sandra Bértolo Fragoso What new things can we expect from SIL 2013? Is there a special guest country this year?

and a moment of particular interest for all SIL visitors. On October 12 and 13, from 15h00, SIL will host real estate auctions organised by SIL’s This year’s SIL has a lot of new things, in terms of Official Sponsor – the bank Caixa Geral de Depósitos with a portfolio internationalisation strategy initiatives and in terms of Urban of around 150 properties, with initial bidding prices starting off Rehabilitation Week and Investment Week as well as the SIL Real between €13,000 and €212,000.

Estate Awards.

Another new event at SIL will be a Public Auction organised by the For the first time at SIL, we’ll have all the Portuguese-speaking Treasury and Finances Department on Sunday October 13 at 17h00, countries who are members of the CPLP (Community of with around 35 properties between €25,000 and €157,000.

Portuguese Language Countries) present, namely Angola, Mozambique, Brazil, Cape Verde, Macau, São Tomé & Príncipe, Given the recession affecting the real estate market what are Guiné-Bissau and East Timor. Therefore direct contact will be the main themes for SIL’s Conference Cycle this year? promoted between these markets and national players, affording The themes for the 16th SIL International Conference reflect the bilateral negotiations between Portugal and these countries. I strategy we’ve been following, indeed on October 9 the main theme should point out that the exhibitors will get the opportunity to is “Real Estate, Investment and Urban Rehabilitation”, a conference take part in “Speed Networking / Business Round Table” sessions organised in partnership with Lisbon City Council while on with business leaders from these countries on the morning of October 11 there’s “The all-important role of the CPLP (Community October 11. We don’t have a special guest country this year, but we of Portuguese-speaking Countries) within International Real Estate do have two extremely important countries with big stands at SIL: and its link to the Far East”, co-organised by CIMLOP. Brazil and China.

Brazil has sent a large delegation of business leaders and Are there many new projects for the SIL 2013 Award? investors to the fair who are looking for opportunities for their We’ve got two new categories that fit in with SIL’s strategy for businesses in Portugal and China will also be present with a large 2013 and are based on urban rehabilitation, the rental market stand at SIL. Another new thing is the visit with foreign investors and internationalisation. The SIL Real Estate Awards 2013 to rehabilitated projects and ones that are to be rehabilitated, as include the Urban Rehabilitation Category with Housing, part of “Investment & Urban Rehabilitation Week” and we’ve got Cultural & Social Facilities, Public Spaces and Commerce as the support of Lisbon City Council Municipal and the Institute sub-categories and the Real Estate Investment Category, with the of Housing and Urban Rehabilitation.

Real Estate Investment Funds and Foreign Investment in Portugal in the sub-categories. I should also mention the Will there be an area set aside for investors?

Architect Career Distinction which is also new.

Yes, at this year’s SIL we’ve organised various meetings/activities with investors, for example we’ll have “Meeting Point CPLP” SIL is going international. What success do you get from your with representatives from Angola, Mozambique, Brazil, Cape presence internationally and in which countries?

Verde, Macau, São Tomé & Príncipe, Guiné-Bissau and East As is well known SIL has been helping the Real Estate sector Timor. In this area there will be meetings with our exhibitors, internationalise since 2010, taking national companies to such thereby encouraging internationalisation of real estate business diverse markets as Angola, Mozambique, France and the United in Portugal. I’d like to stress that our delegates will get the chance Kingdom and at the moment we’re preparing campaigns in to take part in “Speed Networking” sessions “Speed Networking” China for this year and in Brazil and Luxemburg in 2014. Our with business people from these countries on the morning of companies are clearly satisfied with the results obtained from October 11. We’ll also have Chinese investors at SIL who will these internationalisation campaigns organised by the AIP meet up and hold meetings at the Portuguese-Chinese Chamber Foundation (Portuguese Industrial Association). of Commerce and Industry stand.

SIL’s internationalisation strategy ranges from taking Portuguese companies to highly promising international markets and attracting Will we again see a Rental Stock Market and Auction? the interest of international investors and organising their visits to SIL. Yes, as is well known the rental market is one that is clearly growing, and SIL’s Rental Stock Market provides a unique opportunity to let How many visitors are you expecting at SIL 2013? delegates know about all the properties that are available to rent, We think we’ll get over 40,000, who will be attracted by SIL itself something that’s extremely difficult to get through other means. and our partnership with the home decor fair Intercasa, which has The auctions will continue to be an important facility to do business proved a winning strategy.  | 27

[ PA RT NE R S OPINION ]

Time to go shopping and pick up a

Bargain!

JORGE BOTA | Managing Partner, B.Prime

There has never been a better time to pick up good quality, distressed Portuguese commercial real estate assets. But hurry, premium property going for a song won’t last for long says B.Prime’s Managing Partner Jorge Bota

28 | Commercial Markets

“

We believe the investment market could be turning around because the economic situation is showing signs of improvement and prices are adjusting in line with what these real estate assets are really currently worth.

T

he commercial real estate market in Portugal has suffered for the past three years, mainly from the strong fallout resulting from the economic slowdown, lack of finance and poor financial performance indicators, reflecting in a negative image abroad with serious consequences for attracting foreign investment.

with what these real estate assets are really currently worth.

Which is why there are now some good opportunities in the market, and these are being snapped up by buyers who believe that in a few years time they will be able to sell these assets on at a profit, when the market has returned to normal and institutional investors return to core assets.

Even though these have lower yields, they In truth, from the moment that Portugal was will bring more confidence and security on downgraded by the main international ratings the investments made. agencies, all real estate purchasing deals by foreign institutions were suspended.

The main buyers have different profiles to the usual ones in the Portuguese market, With Portugal’s bailout from the international with some deals being done by Brazilians troika of moneylenders – IMF/EU/ECB – the and Spanish family offices. This year alone situation got worse, reaching rock bottom there have been investors from Switzerland, with the suspension of lending from banks. in addition to some Portuguese with an appetite for distressed assets.

The various funds that were in an advanced stage of buying up Portuguese real estate All in all, we think that this market situation assets suspended any new purchases, trying will begin to change from next year onwards, to keep up their portfolios and positive particularly if and when it is confirmed that occupation rates, despite expectations of Portugal has succeeded in completing the reduced rental income for these properties adjustment programme agreed with the compared to when purchased. ‘troika’ which ends in June 2014.

”

That’s why we think – and we’re advising our clients that do have some appetite to risk, that this is the moment to return to the Portuguese real estate market to buy good assets at cheap prices – there’s the potential to make an interesting profit, not just because their capital investment will increase, but also because rental incomes will improve.

In fact, the rental market suffered a sharp decline, both in activity and falling rents and mainly in the incentives given to attract tenants, but this situation too is about to turn around.

It cannot be said that these improvements will be felt in all areas, but gradually in the zones that have enjoyed better take-up rates, and since there has been an almost complete suspension of new construction, the pressure on proprietors will tend to lessen. The area of Parque das Nações may be the first to feel this inversion. Actually this has been the preferred destination of companies requiring large amounts of space and in 2012 and 2013 various rental agreements of a significant size were concluded meaning that large occupants (over 2,500m²) have had some difficulties in finding available space that has all the right standard conditions for these large companies.

For this reason, the investment market practically saw its activity collapse since there were few buyers and, as a consequence, few sales, and those that did risk have accepted that they will have to take on some losses in order to sell.

With a more stable economic and financial situation, there will be the tendency for a greater number of investors to once again start analysing the Portuguese market and strike more regular real estate investment deals, with the consequent adjustment in prices.

This situation has turned around since the start of the year, with investment deals in the first half of 2013 totalling around 150 million Euros.

The truth is that Portuguese real estate is fairly cheap, not just because the expected yields are greater for the buyer, but also because of the rent reductions seen in the market in recent years.

It is true that there are other areas which still have fairly high vacancy rates where the downward pressure on rents is being felt strongly. These could prove preferential destinations for companies looking for a more economical deal. While there is less availability on the one hand, there is more appetite on the other, and the market will balance out within the next two years.

The effect of these two situations, means that today there are quality assets at cheap prices with good rental contracts and credible tenants that offer security to owners at prices that are very close to the cost it took to develop the property assets themselves, and sometimes even lower.

To conclude, this is the right time, in our opinion, to once again study the Portuguese market as a destination for real estate investment, since there are great opportunities and the best assets that are now being traded.

Later on there may well be more confidence but less opportunities!

That’s why we believe – in line with other markets that have been going through a similar situation, like Spain – that the investment market could be turning around, not just because the economic situation is showing some signs of improvement, but because prices are adjusting in line

| 29

[ 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

30 | Commercial Markets

CBRE

For Investors

Cash is King FRANCISCO HORTA E COSTA | CEO, CBRE PORTUGAL

Investors are back, particularly from Brazil, China, Spain and America. For those with the money “Cash is King” and the time is ripe to snap up property bargains says Francisco Horta e Costa, CEO of CBRE Portugal.

I

nvestors have been starting to look at Latin markets (Spain, Italy and Portugal) with renewed interest and confidence since the summer, a phenomena that seems to be happening right across the board.

These are times when cash is king since available finance on the market is still hard to come by and expensive...

When it comes to Portugal this phenomena has partly to do with growth in the economy (1.1%) that was seen in the first quarter of the 2013 and the slight reduction in unemployment, and less probability and fear that Portugal will leave the Euro. There is also an overall perception that the country is on the right track and with the undoubtedly high levels of liquidity in the hands of investors, the signs are tentatively encouraging. geographical point of view and a currency exchange one. Equally apparent is the Despite the so-called ‘fundamentals’ still wave of Chinese investors who, not apparent in the market (office take-up encouraged by the introduction of the growth and resulting growth in rents, so-called Golden Visa, are already buying sustained economic growth and increased up properties in significant amounts, from consumer spending, etc) the increase in apartments and offices to entire buildings, demand for various types of investment, with the aim of selling them on “piece by from prime area office buildings to high piece” to their fellow countrymen. There street shops, particularly those housing are also various Spanish ‘family offices’ luxury brands around Lisbon’s main which continue to want to invest in downtown shopping areas, is up. Investors Portugal, always focusing on office have also once again begun to weigh up buildings or shops in prime areas, being a properties that need market repositioning natural market for Portugal’s neighbour. or refurbishment - providing they are well located - for residential or tourist use, or From the side of the more traditional even for offices. institutional investors, some German funds, usually averse to taking risks, are Specifically dealing with the Portuguese once again looking at Portugal, which is market, the presence of investors from therefore a fairly good sign that Portugal Brazil is noticeable, who are less confident has definitively come off the ‘black list’. at the current performance of the More opportunistic American and Brazilian market and the government’s English investors are always on the policies there, and who are looking for a lookout for a good opportunity deal with way to diversify the application of their reasonably high volumes, which is why capital investments, both from a they may also contributed to the

resolution of significant problems in the property market. Apart from one of two exceptions, Portuguese funds are not yet buying since they are generally managing the ‘inheritances’ of the recent past. Since this is an industry that generates around €11 billion Euros, they are badly needed as players that sell and buy.

Naturally the best products that were available on the market are currently being sold off or in the final phases of due diligence. Even so, it is extremely rare to see the three variables together in the income generating property investment market: buildings, tenants and capital, and when they do come together the three don’t last long! However, these are times when “cash is king” since available finance on the market is still hard to come by and expensive. At these times it’s worthwhile coming into the market to build up portfolios or land banks for future development; those that do so will clearly come out winners in the next real estate cycle.

There are property owners that have too much debt; there are banks that desperately need to offload plots of land and buildings that they received in lieu of loan payments, and will necessarily to much the price that demand is prepared to pay. The big news is that this demand now seems to exist and one should strike while the iron is hot.

Now is the time when extremely rare and unique assets are coming onto the market, something that only happens once every 10 to 20 years because of their location and unique market situations. This is clearly the time to pick up a bargain, but hurry, next year could be too late!  | 31

[ PA RT NE R S OPINION ]

PORTUGAL’S BEST KNOWN SECRET Urban Rehabilitation PAULO SÁ VIANA REBELO | Capital Markets - Urban Development, CUSHMAN & WAKEFIELD (C&W)

Few European city centres have so much property that needs to be redeveloped as Lisbon, Porto and other Portuguese cities do. For those with an eye for an opportunity and a keen business sense there are some quite interesting opportunities. But projects need to be well thought out in order to attract foreign buyers, says Paulo Sá Viana Rebelo, member of the Cushman & Wakefield Capital Markets Group in Portugal and in charge of the urban redevelopment area.

T

he Urban Redevelopment topic in Portugal is not just fashionable talking, it’s actually happening.

While many continue to discuss this as an opportunity of the future as if it were the national industry’s saving grace for the crisis, others more aware of the opportunities created by a market in recession and by the reforms imposed by the ‘troika’ have begun to act.

They realised that standing still is not an option. Lisbon and Porto are on the move and new redevelopment projects are seeing daylight, with old buildings walled up and where the noise of works seem to be waking them for a new life, renovating their interiors, while preserving their original splendour and identity. But these buildings are now more efficient, functional and full of life.

There is still a lot to do in Lisbon and in other Portuguese cities. The harsh effect of the credit crunch in real estate projects can only be solved with the ability to attract both national and international capital to this cause.

That is the reason why we need to be able to sell a story. The property does not only need a new owner. First of all there is the need to atract tenants, understand their requirements and adapt these to the investment costs.

Many foreign investors are still

32 | Commercial Markets

“

Just discussing the urban redevelopment subject itself is not enough.

There needs to be entrepreneurship, new ideas and strict control to make it appealing.

”

uncertain about Portugal. In the golden age of real estate some of them invested in Portugal, full of liquidity and willing to make things happen.

However supply and enthusiasm were inversely proportional to the occupier demand, legal bureaucracy and uncertainty.

The inflow of so much foreign investment was considered an ‘El Dorado’ for both tenants and landlords, inflating prices and leading to many acquisitions that were concluded without a thorough analysis.

In many cases the result was negative and the investors ended up by quitting Portugal, leaving those properties in the hands of the banks in poorer condition and, above all, without any feasible redevelopment plans. Others were able to wait and are now engaged in their early urban redevelopment plans.

But they are now benefiting from a more favourable legislation and from more attractive and encouraging incentive mechanisms.

It is true that not everything has changed. Today there is the idea that the Midas touch, some times associated with real estate investment, has disappeared.

Speculative construction is very often a financial contradiction and banks,

their traditional partners, now have to develop a new vocation for which they were not prepared, in order to be able to clear out these properties from their books that their credit helped to create.

A coordinated plan needs to be created for each building subject to redevelopment. Some processes continue to drag on but are no longer an impossible mission. Buying at a consistent price, implementing a good redevelopment plan and finding better ways of occupying the properties is a reality that we have to promote in order to attract the necessary investment.

Selling realism instead of square metres means expertise. And Portugal does have it. We have experienced professionals in all areas who are willing to make their contribution.

Cities, with Lisbon and Porto winning international tourism awards, need to have the conditions to attract residents, retailers and services, thereby bringing together the necessary ingredients which in themselves will attract visitors from the four corners of the world.

It is interesting to see that at the same time that Portugal is being talked about for the worst reasons because of the bailout, it has registered one of its best years ever in terms of foreign tourism.

Just discussing the urban redevelopment subject itself is not enough. There needs to be entrepreneurship, new ideas and strict control to make it appealing.

Making something new from the old can be quite a complex challenge but it does not necessarily mean that it is less profitable. Honouring the history of the building does not mean leaving everything as it is.

We need to reduce the constraints on urban redevelopment in historic areas, keeping what really needs to be kept so as not to make the new current occupation requirements unfeasible.

Maintaining the traditional outward appearance of our cities and their buildings, while enlarging and adapting their interiors to cater for new generations, with the convenience of today’s standards, is a challenge that is within our reach, as long as it is sustained by a common interest.

And few other European countries have so much to redevelop in the prime areas of their main cities as Portugal does.

The change in the rental and urban redevelopment laws, the lack of capital and the support of municipal councils have created a unique moment for those who know how to see these opportunities; and that’s already happening!  | 33

[ PA RT NE R S OPINION ]

LURDES MARTINS | Country Manager, NEINVER PORTUGAL LURDES MARTINS | Country Manager, NEINVER PORTUGAL

34 | Commercial Markets

Is it the right time to invest in Portugal?

Of course it is!

PEDRO VALENTE | CAPITAL MARKETS, WORX

With the price of quality Portuguese commercial real estate assets at an all time low, with the possibility of sound rents and high yields, it’s never been a better time to invest in Portugal says Pedro Valente from Worx Capital Markets Department.

I

t is now obvious that Portugal is once again on the investment radar for some international investors.

Despite the country’s situation, presently being bankrolled by the IMF/EU/ECB international troika of moneylenders, there are now international investment funds that are already shopping in Portugal, clearly showing that now is the time to invest in commercial real estate in Portugal.

After a year of weak market performance in the Portuguese investment market – over the past five years the average national investment stood at around €455 million, having reached its lowest point in 2012 and never reaching €200 million – 2013 is showing obvious signs of recovery and a market that’s becoming increasingly attractive, with many investors studying investment opportunities, believing that now is the right time to come back to the market.

These signs are shown not just from the investment turnover in the first half of 2013 which has already overtaken the amount from the previous transacted year, at around €190 million, but also from the number of investors who see Portugal as a very consistent investment alternative with good prospects to make a profit in the medium and long-terms, and which can easily be explained from national rent and yields prices.

Commercial real estate in Portugal in recent times has been characterised by huge pressure on rental values. Every day landlords are faced with requests for cheaper rents, which generally has been seen by the same as a way of securing tenants for a longer period, but which has led to historically low rents.

2013 is showing obvious signs of recovery and a market that’s becoming increasingly attractive...

and Swiss funds, which have already gone beyond the market analysis phase, firm proposals and deal completions having already been made.

I am convinced that the completion of three or four large deals at the moment will once again put Portugal back in the spotlight and attract many other funds from these and other places, to invest in Portugal.

However, it needs to be seen that Portugal is a small market in Europe and in the world, in which there are not many safe assets like the ones that investors are now looking for, namely prime buildings, in prime locations and with good tenants and long leases. That means it is first come, first served when it comes to available prime assets.

At the same time, and as a result of enormous instability in Portugal, the yields demanded by investors have risen substantially so that it can be generally said that properties which before the crisis It should not be forgotten that apart enjoyed yields of 6-7%, today have soaring from institutional investors, there are yields of 8-9%. also various private investors who can easily and quickly make investment So, the combination of these two factors decisions and who have been making (high yields and tight rents) has led to very interesting investment deals, current transacted amounts reaching masking them one of the key players in historical lows, in some cases falling to recent years. amounts very close to or even below the costs incurred from the initial It should also be stressed that the development, and therefore very appearance of opportunity investors is interesting for investors. If the huge lack also starting to be seen, although so far of developer liquidity and credit from only in specific deals such as the sale of national banks in the assets market is the Zenith Tower which was bought by a added to this – which made them difficult national investment fund. to sell – it is easy to see why it is now a good time, for those with the cash, to To conclude, it is clearly the right time to come into and strengthen their presence invest in Portuguese commercial real in the Portuguese real estate market. estate assets; and if you don’t believe me then wait until you hear about the deals There are at the moment a number of that are shortly to be announced...but good real estate investment opportunities then don’t complain if you’ve missed the and proof of this is the fact that boat and wish that you had indeed struck acquisitions are going on from German the same deal! 

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MARKETBEAT Autumn 2013

CUSHMAN & WAKEFIELD | Report

Cushman & Wakefield presents its MarketBeat Autumn 2013, the sixmonthly study that analyses the offices, retail, industrial, residential and hotel sectors, as well as real estate investment activity in Portugal. The situation isn’t the best but good perspectives are around the corner says Marta Costa, Head of Research & Consultancy

ECONOMY

Unemployment levels will remain high: 18.2% in 2013 and 18.6% in 2014 – 200 base points more than expected 12 months ago, this with the internal political indicators from Portugal’s political crisis, international instability and the possibility of a second bailout aggravating future perspectives.

The Bank of Portugal’s Summer Forecast for the Portuguese economy in 2013 was less pessimistic than it had been for the 6 months prior to that, as seen from the development of GDP at -2% at the end of 2012. With estimates for 2014 pointing to a positive development, but a lot more conservative than in the spring RETAIL - 0.3% against the 1.1% expected in March.

Retail showed a less negative trajectory in the retail commerce turnover index with a The public consumer indicator has slight recovery in the first 6 months of the remained in negative territory in 2013 year. The rise in the non-food index (-2.1%) with an expected fall in 2014 of mid-year in June 2013 reflected the 3,2%, contrary to the private sector summer effect, similar to previous years which could see some recovery in 2014, – Total index at 90.4 , a rise of six points evolving from a fall in 2013 in the order from January, the food Index at 101.8 and of 3.4%, to 1.4% in 2014. non-food Index at 78.3.

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Portuguese property: it’s no rose garden, but there are positive signs of recovery for the near future

Downward corrections in supply turnover was evident, brought about from changes in the habits of consumers whereby new concepts of proximity are arising, coupled with the process of renewal and growth in high street shopping, particularly in the prime areas of Lisbon.

Large transactions in the 1st half of Lisbon - Av. da Liberdade: Cartier, Max Mara, Aristocrazye Penhalta, in Porto – Passeio dos Clérigos: Hugo, Max & Co e Diesel. Finally corrections in market values, with a fall in the value of rents in shopping centres and a rise in rents in prime areas. In secondary projects the fall in rental values and sweeteners given are increasingly felt.

OFFICES

The Western Corridor suffered a sharp fall compared with last year, almost 60%, even so it was the second most sought after area. The Prime CBD zone enjoyed the 3rd greatest demand turnover, just 4,400 m2. The biggest deal in the half happened in Zone 7, with the occupation by Randstad of 1,800 m2 in the building Edifício Amílcar Cabral, 25.

The vacancy rate continues to be at 12.5% because of the supply of new non-speculative offices. The greatest registered was in the Western Corridor in percentage terms (21%) and in absolute values (192,000 m2). Parque das Nações had the second highest rate (14.5%) but with a trend for a reduction in this variable.

During the first half of 2013 only one building was completed – Liberdade 225 in Zone 1 with 4,600 m2 but future supply reflects an adjustment given the current performance of the market. To 2015, 74.700 m2 are planned for new office projects.

A Record level has been reached, 28% down compared with the same period in 2012. Little more than 25,000 m2 transacted in the first half. Looking closely at specific zones, Zone 5 was the most sought after, with the greatest turnover of transacted area, 6,000 m2.

Market values have remained stable after being priced down in recent years, but with greater pressure on average rents from the pressure on owners to offer sweeteners with payment grace periods or rents paid in instalments and contributions to setup costs. | 37

E P ORT ] ] [ BUSINE SS ROPINION

Despite two difficult years there are signs from investor interest that recovery may be just around the corner.

HOTELS

INVESTMENT

This was the turning point for national tourism with a recovery in all indicators. Despite there being a continued fall in bed occupancy rates, it has been less intense, with an increase in the average length of stay which shows greater interest in Portugal as a quality tourist destination. This has generated a stronger impact in indirect receipts with Madeira and the North Region enjoying the greatest increase in demand. In terms of foreign demand, the United Kingdom, Germany and Spain are the main markets.

There has been recovery in business turnover in the commercial sector by €161 million, more than triple the amount registered in the 1st half of 2012. In the residential sector there has been a downward trend with only €70 million transacted. The distrust in the Portuguese market is blatantly obvious following the political crisis in July, the possible

INDUSTRIAL & LOGISTICS The industrial sector is more optimistic about the future, with the confidence indicator in positive territory since October 2012 due to an increase in exports, with a positive impact on the commercial balance sheet.

Demand in the Lisbon area has remained low but there has been renewed interest in Greater Porto where investments are expected at the Port of Leixões.

RESIDENCIAL Supply is still outstripping a demand that has been seriously affected by the economic crisis and the retraction in acquisition on the part of the banks. Sale prices according to SIR, have maintained a downward trend, but according to evaluation data from the banks, there is some recovery being seen in Lisbon. The Golden Visa is starting to have a positive impact in this market. The buoyancy of the rental market is continuing, with a wide range of offer and greater adjustment to prices.

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downgrading by the ratings agencies and a worsening of the interest rates charged on Portuguese sovereign bonds, all causing a total absence of foreign investment. The largest business turnover was seen in the retail sector where operations totalled over €140 million. With prime yields stable this year and recent steep downward corrections in prices, it is predicted that 2014 will be the year in which foreign investment starts to trickle in. 

Image by carlos-vieira.com :: Model Jagienka Szymanska

Unique Experiences in Lisbon Vict贸ria World Travel (VWT) Guides can be adquired online at amazon.co.uk, fnac.pt, bookhouse.pt, bertrand.pt or at Portugal`s leading bookstores.

Travel Better & Wisely www.victoriaworldtravel.com

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ONE OF THE BEST HOTELS IN THE WORLD Voted the third best hotel in the world in 2013 by the millions of tourists using the site TripAdvisor®, the Onyria Marinha Edition Hotel & Thalasso, in Cascais is the last word in luxury and the perfect place to holiday.

Surrounded by fragrant gardens and a secluded pine forest, this lovely hotel is set in the middle of Cascais’ smart Quinta da Marinha resort, next to the royal hunting pavilion that once belonged to Portugal’s King Carlos I. Just a 20 minute drive or 40 minute train ride to the capital Lisbon, and ten minutes from Portugal’s chic Costa de Estoril and Cascais resorts, this charming and luxurious five-star boutique hotel was inaugurated in 2011.

The Onyria Marinha Edition Hotel & Thalasso is surrounded by lovely landscaped gardens designed by landscape architect Francisco Caldeira Cabral with the entire estate and its buildings blending harmoniously in with the natural surroundings.

The buildings themselves use different textured stone while fine woods are an essential part of the decoration which is done out in earthy and white tones.

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FACILITIES This lovely hotel boasts one of Portugal’s best 18-hole golf courses designed by Robert Trent Jones Sr. It allows professionals and amateurs to enjoy world-class facilities against the magnificent backdrop of the majestic Sintra Hills and the rolling Atlantic Ocean.

With a par 71, the golf course extends from Cascais to Cabo da Roca, covering a 5,870m area, providing more experienced players with a real challenge while allowing amateur golfers to enjoy an unforgettably relaxing experience.

There is also a training area located a stone’s throw from the main entrance of the hotel and not far from the golf course’s first tees, surrounded by towering pine trees to provide peace, privacy and tranquillity.

The golf course also has a modern club

house and bar making it the perfect place to enjoy a relaxing drink after getting up to par.

VOTED THE 3RD BEST HOTEL IN THE WORLD

The five-star hotel was only beaten by the Four Seasons Resort Hualalai, in Hawaii and Cape Grace, in South Africa’s Cape Town in the TripAdvisor® Travelers’ Choice Awards for 2013, making the Onyria Marinha Edition Hotel & Thalasso the Nº1 hotel in Europe from 6,000 hotels in 82 countries worldwide.

According to thousands of on-line voters who shared their preferences on the world travel site TripAdvisor®, the Onyria ACCOMMODATION Edition Hotel & Thalasso was the third best hotel in the world within little more The Onyria Marinha Edition Hotel & than one year of its opening.

Thalasso, designed by world renowned Portuguese architect João Paciência, offers superb quality accommodation facilities VITAL STATISTICS that have been conceived down to the smallest detail to enable guests to 18-hole golf course combine the best of leisure and business.

Par 71 5,870 metres long There are 68 deluxe rooms and four suites Driving range available, all with their own veranda or Pitching area terrace. All rooms are equipped with air Putting green conditioning, cable TV, video-on-demand, Equipment rental facility the Onyria’s own internal television Professional lessons channel, telephone, hairdryer, dressing and golf clincs gown and slippers, mini-bar, radio, safe and wireless internet. | 41

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ONYRIA GOLF AND EDITION VILLAS The traditional one and two-bedroom Onyria Golf Townhouses are located right by the golf course in an isolated area surrounded by pine trees affording complete privacy. There are also three-bedroom villas with pool and private gardens. These luxury properties include a number of services through Onyria Living and at attractive conditions of financing adapted to today’s economic realities.

The Onyria Edition Villas represents the new face of Quinta da Marinha. These supremely contemporary three-bedroom villas, designed by architect João Paciência, boast a harmonious and ultra-modern style of architecture that blends perfectly into the surroundings.

These properties have large picture windows, ample spaces décor in light colours, spectacular views and total privacy. Residents can enjoy all the facilities and comforts of the nearby 5-star hotel.

FOOD AND DRINK Whether you opt for informal or classy eating, there’s plenty of choice at the Onyria Marinha Edition Hotel & Thalasso where chefs are on hand to provide the best national and international culinary experiences accompanied by fine Portuguese wines.

You can opt for the cosy and welcoming Story restaurant with its unique and stylish décor and chandeliers and a menu with a vast selection of dishes with a rich variety of local and Mediterranean cuisine.

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BUSINESS AND CONFERENCES IN SPECTACULAR SURROUNDINGS

signature beauty and relaxation treatments and facials using aromatic herbs and oils. The RitualSPA offers a The hotel has fully-equipped business and highly experienced team of professionals conference facilities for meetings, who undertake regular and continuous conferences, seminars, training sessions training in order to be able. and workshops. There are 10 conference rooms, 7 with natural light and many with stunning views capable of inspiring and calming even the most tired of minds.

ONYRIA GOLF AND EDITION VILLAS

The traditional one and two-bedroom Onyria Golf Townhouses are located THE RITUALSPA – AN OASIS OF right by the golf course in an isolated POSSIBILITIES area surrounded by pine trees affording complete privacy. There are also The Onyria Marinha Edition Hotel & three-bedroom villas with pool and Thalasso also has a top-quality spa private gardens. These luxury properties offering a range of relaxing therapies and include a number of services through beauty treatments that are perfect to Onyria Living and at attractive refresh, rejuvenate and reinvigorate conditions of financing adapted to mind, body and soul. today’s economic realities.

The RitualSPA at Onyria Marinha Edition Hotel & Thalasso offers a vast variety of treatments in relaxing and stylish surroundings. These include its

ESSENTIAL SPA EXPERIENCES 700m² RitualSPA 2 treatment rooms 2 double suites Hydromassage Relaxation area Multiuse assessment rooms Vichy room Scottish and Turkish baths Sauna Sensations shower Jacuzzi Gym

Paciência, boast a harmonious and ultra-modern style of architecture that blends perfectly into the surroundings.

These properties have large picture windows, ample spaces décor in light The Onyria Edition Villas represents the colours, spectacular views and total new face of Quinta da Marinha. These privacy. Residents can enjoy all the supremely contemporary three-bedroom facilities and comforts of the nearby villas, designed by architect João 5-star hotel.  | 43

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MENU PORTUGAL

BE SURPRISED. BE INSPIRED...

Whatever your interest in Portugal, whether business or pleasure, leave it to Menu Portugal to organise every aspect of your visitors’ stay from accommodation to tours, food & wine, entertainment and relaxation – all in one seamless package.

EVGENIYA BEREZINA | Managing Director, Menu Portugal

enu Portugal is an exciting new and innovative concept that offers bespoke, highquality tourism ideas for the tourism and business events industry. It provides tour operators, promoters and hotel chains with a comprehensive raft of services aimed at foreign and national visitors, both individuals and groups in Portugal.

With Menu Portugal the client buys a specially designed package that caters for every aspect their guests’ trip including where to stay, where to eat, what to do and what to see. Whether business groups attending congresses, seminars and workshops or tour groups, specialist or otherwise, no matter what the age and interest range, Menu Portugal can offer a streamlined service where you leave everything to it and don’t have to worry about a thing.

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Designer holidays Evgeniya Berezina

GENERAL OR NICHE CLIENTS, MENU PORTUGAL HAS IT ALL Menu Portugal offers several preprogrammed tour options for each client depending on its interest.

Working with local business suppliers on the ground in each region, the company will design your trip down to the last detail with a pre-paid menu that embraces food, wine, heritage, adventure and culture.

www.menuportugal.com

but do not want to spend hours surfing the Internet trying to find what they are looking for. They are well-educated, sophisticated and used to quality. They appreciate fine wines and food and their budget enables them to travel often. Art, culture and experiences are important for them when travelling.

The kind of tour groups and travellers we cater for are increasingly wellinformed and demanding. In a WHY PORTUGAL? competitive environment they want top-quality at a competitive price.

With an average of over 300 sunny Above all these visitors want a travel days a year and a surprising variety of experience that they will never forget; places, attractions and activities on one that goes beyond the traditional offer, Portugal is the perfect location sun, sea and sand holiday. Travellers to spend a holiday. A coastline of today are sophisticated and wellmiles of golden, sandy beaches, an educated, they want to embrace the enviable security record and renowned lifestyle, dive into the culture and hospitality makes Portugal one of immerse themselves in the country Europe’s most popular holiday they are visiting. They often have destinations. Its quality considerable spending power which accommodation, excellent road and raises the benchmark of their communications infrastructure and expectations, which is why high-end geographical position only two and a hospitality is paramount. They half hours flying time from most appreciate sports like golf, sailing, points in Europe makes it the ideal horse riding, cycling and tennis. Menu place to get-away from the hustle and Portugal travellers will appreciate a bustle of everyday life. tailor-made programme so that they can make the best of their holiday WHAT IS OUR OVERSEAS time.

TRAVELLER PROFILE?

Our target market countries include Russia, Northern Europe and Brazil.

Our clients within these target markets come from a broad base.

Their travellers include entrepreneurs and highly-skilled professionals, private groups and families, individuals who use smart technology

Typically aged between 25 and 65, they are open-minded explorers that don’t go to extremes. They like to travel in comfort, style and see beautiful places and experience lovely things. Nearly 70 per cent are married and 40 per cent have children. Above all they’ve seen the world and can make comparisons.

INTEGRATED SERVICE SOLUTIONS FOR THE HOTEL AND TOURISM INDUSTRY Menu Portugal is the perfect organisation for travel and tourism agencies and hotel groups to help their guests get the most out of their stay in Portugal because it provides them with up-to-the minute information on all the different kinds of activities and attractions Portugal has to offer, available from its extensive database and network of contacts.

OFFERING ORIGINAL IDEAS FOR UNIQUE EXPERIENCES Menu Portugal regularly attends major national and international travel and tourism fairs to not only promote the service but also promote Portugal as a magical destination for business and pleasure. It has taken part in the World Travel Market (WTM) and the Lisbon Tourism Fair (BTL) establishing contacts with tour operators, hotel groups and affiliated service providers.

COMPREHENSIVE INFORMATION AT YOUR FINGERTIPS Menu Portugal draws on an extensive database with the most up-to-date and competitive offers, the latest programmes and a wide variety of providers in different sectors from restaurants, bars and clubs to companies that organise leisure and radical sports activities and excursions.  | 45

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“ We don’t want

competition to end up being a price war; instead we want the hotel business to work together for the success of Portugal...

”

REUBEN MIFSUD | Managing Director, CORINTHIA HOTEL LISBON

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Corinthia Hotel Lisbon

Lisbon has an amazing potential for growth in tourism and business CHRIS GRAEME | Interview

With a plethora of international tourism awards, excellent attractions and museums and fine food, wines and hospitality, Lisbon’s tourism and hotel sector has so much more room to grow in the coming years says the Corinthia Hotel Lisbon’s new Managing Director, Reuben Mifsud. Chris Graeme finds out more.

How long have you been in the hospitality industry?

I have been in the hospitality business with Corinthia for the past 14 years and I’m looking forward to enjoying more successful years with this hotel group. I started off with Corinthia in Malta, at the Corinthia Hotel in St. George’s Bay, and after a short time there I moved on to Libya.

Were you in Libya during the crisis?

It was just before the crisis and before the sanctions started in 2002. We opened a beautiful luxurious hotel in Tripoli but I was there until one month before the crisis blew up.

Immediately I moved back to Malta where I took over another Corinthia Hotel which was the 200-room Marina Corinthia Hotel Beach Resort where I was the Managing Director for the past two-and-a-half years and succeeded with my team in increasing room occupancy and revenues.

Then three weeks ago I came to Lisbon, to this beautiful hotel and city.

Are you going to be learning Portuguese?

I’ve already started. I’ve picked up a few words and with my Maltese culture and the Italian language and the fact that Maltese has some Portuguese words, I think I’ll be able to learn the language as my predecessor did.

What is your biggest challenge going to be here?

This is a large hotel, it has 518 bedrooms, the owners are investing a lot of money in refurbishing the new lobby and lounge areas as well as extending the conference and business facilities, and the challenge is to push the average room rate up and I can only do this with our team which is excellent.

The entire city needs to be looking at increasing room occupancy rates and raising the benchmark to a new and higher level. There’s a lot of competition here and we want to ensure that the competition is a healthy one. We don’t want competition to end up being a price war; instead we want the hotel business to work together for the success of Portugal since we want more tourists to come here and for Lisbon to be more successful.

What do you think of Lisbon?

It has a lot to offer: history, culture and authenticity, great

restaurants, great people and is winning a lot of awards, including our own hotel which scooped an award in September for the Best Energy Efficient Hotel in the World.

We accepted the award in Washington. This is a big property, but when you see the energy consumption per occupied room, it has one of the lowest energy consumption rates possible.

We have installed energy efficient machinery and equipment when it comes to power generation: air conditioning, lighting – all our bulbs are LED in this hotel – we have a solar panel system to generate heat, and we give preference to energy efficient and environmentally friendly suppliers as a green hotel.

How far are events important to you?

They are very important, as much as leisure is important.

This hotel has 3,000m2 of conference and banqueting facilities which are a key to Lisbon’s success because Lisbon has a lot of conference and events business and a great deal of leisure business too.

This hotel has 3,000m2 of SPA facilities managed by Longevity which has a great and innovative approach. Not many European city centre hotels have such a large SPA. It offers a lot of medicinal and treatment facilities which visitors can enjoy at our hotel. Normally such large SPA facilities are usually found in resorts and out-of-town facilities, so that makes it a unique selling point for this property.

Do you serve traditional Maltese dishes in your restaurants?

We do have some Maltese dishes as well as offering Portuguese and international cuisine. We have theme nights every night in our buffet restaurant since we have diverse clients from all around the world – from France, the United Kingdom, Spain, and the United States as well as Angola and Brazil who stay here an average of two to three days; of course we have the one-day corporate clients but also guests who stay for a week.

The Corinthia is also proud to host celebrity chefs including Michelin star chefs like Garry Hollihead who works at the Corinthia in London.  | 47

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Corinthia Hotel welcomes new Managing Director CHRIS GRAEME | Photo Report

Lisbon’s Corinthia Hotel has appointed Reuben Misfud as the Managing Director of the five-star hotel, one of the largest owned by the Maltese chain. Continuing to make the Corinthia one of the greenest and most energy efficient hotels in the city is one of his challenges.

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1. CHRIS BARTON | CEO, British-Portuguese Chamber of Commerce • REUBEN MIFSUD | Managing Director, Corinthia Hotel Lisbon • JOSÉ JOAQUIM FREITAS DE ARAÚJO | Director, Millenniumbcp • JOAQUIM JOSÉ OLIVEIRA | Board President, American Chamber of Commerce 2. RUBEN SANTANA | Sales Manager, Corinthia Hotel Lisbon • MÁRIO GAMA | Managing Director, Topmic Turismo Portugal DMC • CRISTINA DUARTE | Revenue Manager, Corinthia Hotel Lisbon 3.RODERIC MICALLEF | Outgoing, Corinthia Hotel Lisbon • REUBEN MIFSUD | Managing Director, Corinthia Hotel Lisbon 4. MARIA JOÃO GALANTE | Marketing & Public Relations Manager, Corinthia Hotel Lisbon • FERNANDO CAETANO | Managing Partner, Essential Magazines (Open Media) • ALEXANDRA BALTAZAR 5. FILIPE SILVA | General Manager, Epic Sana Lisboa Hotel • MIGUEL BORGES | Sales Director, Epic Sana Lisboa Hotel • NUNO LEÓNIDAS | Architect, Nuno Leónidas Arquitectos Associados, Lda 6. RENATA DIAS| Training & Quality, Corinthia Hotel Tripoli • JUSTIN VELLA | Managing Director, Corinthia Hotel Tripoli

7. FILIPA COSTA | F&B Manager, Corinthia Hotel Lisbon • TERESA JESUS | Financial Director, Corinthia Hotel Lisbon 8. JOÃO MIGUEL FURTADO| Portugalres, Product and Contracting manager• RAFAEL DIONYSIO | E-Commerce Manager, Corinthia Hotel Lisbon 9. SONIA SANTA MARTA • JULIA MARQUES • CATARINA VIANA | Sales , Corinthia Hotel Lisbon 10. ANNA MALLIA • ANGEL MALLIA | Special Corinthia Hotel guests from Malta | 49

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SMART CITY

Siemens develops first European “smart city” project in Vienna CHRIS GRAEME | Report

Siemens is launching a large project for a “smart” city in Vienna, Austria in what will be one of the largest urban development projects in Europe.

Portugal too has been in the forefront of developing the intelligent city concept through INTELI. Chris Graeme reports

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The Siemens Intelligent City Project in Vienna will see, over the next five years, the development of a live laboratory in the Austrian capital’s Aspern district in what will be one of the largest urban development projects in Europe.

Together with partners in different areas, energy supply technology, building systems, intelligent electrical networks and cutting edge information and communication technology will be brought together in a model business and urban community for the 21st century.

The project could soon be adapted in Portugal after the non-profit making centre for technology, intelligence and innovation INTELI devised its “Index for Intelligent Cities 2020” – a pilot project which will

include Lisbon, Almada, Cascais, Aveiro and Vila Nova de Gaia.

The “Index of Intelligent Cities 2020” is at present a pilot project embracing 20 to 25 Living Lab RENER cities of which Vienna’s Aspern will be the first.

Here “Smart Cities Portugal” aims to develop innovative and integrated urban solutions, enhancing the participation of Portuguese cities and companies in the smart cities market, putting Portugal’s image on the map as a space for design, production and testing of products and services for smart cities.

The urgency of an intelligent vision for the urban territories joined national companies, universities, financial partners and public entities such as AICEP (the Portuguese

“

Smart Cities Portugal aims to put Portugal’s image on the map as a space for design, production and testing of products and services for smart cities

Foreign Investment and Trade organization). INTELI, with the support of the RENER network, has assumed a leverage role for the project launch.

The Smart Cities market is rapidly growing, presenting itself as an opportunity for Portuguese companies that develop and produce innovative solutions. Portugal has favorable conditions to develop an intelligent and competitive network: •RENER - Living Lab for Urban Innovation, a network that involves 25 cities, all over the country, with good practices, and smart projects in the mobility, energy and sustainability fields.

•Companies with smart skills to develop innovative urban solutions •Universities and research centers with expertise in strategic areas.

In fact, the smart cities market requires multidisciplinary skills and ability to integrate solutions and systems, particularly in structural areas such as energy, mobility and Information and Communication Technologies (ICT).

Since May, INTELI has an ongoing a project co-financed by COMPETE, that promotes opportunities related to the market of smart cities, focusing on internationalization and urban entrepreneurship. In this context, INTELI took over the coordination of Smart Cities Portugal, making the connection between the municipalities that take part of RENER Network, other local authorities, strategic partners (companies, industries, banks) and universities.

The overall result in Aspern and later in cities in Portugal will be the efficient management of resources, with maximum comfort for residents and users. The partners involved in this project signed a contract in July that formed the company Aspern Smart City Research, which has a budget of around €40 million and began operation from the start of October.

”

A multifunctional urban district will be created in Aspern, in the north-west of Vienna, which will include apartments and offices, as well as a quarter dedicated to finance, scientific research, investigation and education research areas.

The site will cover a 240 hectare area, of which 50% will be taken up by public areas – squares, parks and recreational zones. Step-by-step the district will develop over the next two decades until 2030 and turn into a smart city of the future for 20,000 residents and 20,000 work posts.

Interestingly enough, under the former Soviet Union, the Soviet government also tried to develop smart cities of the future in the 1950s and 1960s near Novosibirsk, Siberia, mainly for the Military, Space and Industrial complexes. These closed communities, like Akademgorodok (Academy Town) attracted the best scientific and academic minds in Russia, but owing to the closed nature of Soviet society, had mixed results.

However, this project holds out a lot more hope of success and will enable the development of a long-term integrated concept within an urban district which will be optimised from an energy point of view, using the most appropriate technology, products and solutions within a purpose-built infrastructure.

The objective is to make the whole system “smarter” and one of the steps involves interlinking buildings with different functions, for example offices and apartments, to a low-voltage and highly efficient energy distribution network.

The integrated “smart city” model, according to the Index 2020 will create an attractive city to draw in talent, visitors, business and investors in what should form the perfect alliance between innovation and a sustainable environment to meet the needs and challenges of today’s technology driven modern world..  | 51

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ESPART presents

Oeiras Golf & Residence Photo Report

ESPART officially presented its project for the Oeiras Golf & Residence in the presence of ESPART CEO, Joaquim Paiva Chaves and the Vice-President of the Portuguese Golf Federation, JosĂŠ Filipe Nobre Guedes. At the presentation at the clubhouse, the driving-range and golf academy were inaugurated. The Oeiras Golf & Residence features a residential development developed by ESPART offering a range of properties from town houses, apartments, semi-detached properties, terrace properties and detached houses within a 1,120,000m2 area.

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1. JOAQUIM PAIVA CHAVEs | Executive President, ESPART 2. PAULO VISTAS | President, Oeiras Council • JOAQUIM PAIVA CHAVEs | Executive President, ESPART • ANICETO VIEGAS | Vice President, ESPART 3. PEDRO LIMA | Actor 4. OEIRAS GOLF & RESIDENCE PROJECT 5. JOSÉ FILIPE NOBRE GUEDES | Vice President, Portuguese Golf Federation 6. JORGE SANTANA DA SILVA | Architect, Golf Design | 53

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Restoring buildings is not enough

People come first!

CHRIS GRAEME | Photo Report

The PSD candidate for Lisbon in the local elections, Fernando Seara says it is imperative to get young people working and living in the centre of Lisbon at a lunch hosted by the Portuguese French Chamber of Commerce (CCILF) with the participation of the British-Portuguese Chamber of Commerce (BPCC).

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1. ANTÓNIO COMPRIDO | President of the Board of Directors, British-Portuguese Chamber of Commerce (BPCC) • FERNANDO SEARA | Candidate for Mayor at Lisbon Câmara and current Mayor of Sintra • BERNARD CHANTRELLE | President of the Board of Directors, French-Portuguese Chamber of Commerce and Industry (CCILF) 2. JOSÉ AUGUSTO SANTOS | Coordinating Director, Willis – Corretores de Seguros, S.A • MARIA NAZARÉ CAMPOS VILAR | Coordinating Director, BES–­Department of Corporate Banking 3. PEDRO PAIS | Chronopost International • ELDER SILVA | Operations Director, Chronopost International • CARLOS SILVA | Chronopost International 4. FERNANDO SEARA | Candidate for Mayor at Lisbon Câmara and current Mayor of Sintra 5. CARLOS AGUIAR | Lawyer, Ferreira de Lima & Associados • ISABEL SOARES MACHADO | Lawyer 6. OLIVIER LEPARC | French-Portuguese Chamber of Commerce and Industry (CCILF) • MARKUS KEMPTER | Vice President, Portuguese-German Chamber of Commerce and Industry (AHK) 7. PAULO PEREIRA | Partner, HRB Solutions • MARKUS KEMPTER | Vice President, Portuguese-German Chamber of Commerce and Industry (AHK) • ELMAR DERKITSCH | General Manager, Hotel Marriot Lisbon 8. JOÃO QUINTANHILHA | Groupama Seguros • ANTÓNIO AZEVEDO COUTINHO | Azevedo Coutinho Sociedade de Mediação Imobiliária.

9. MARKUS KEMPTER | Vice President, Portuguese-German Chamber of Commerce and Industry (AHK) • FREDÈRIC FRÈRE | Travel Store 10. NUNO RAMOS | Manager, Socodefil, Construção Civil e Obras Publicas • RICARDO LOPES | Liderbus | 55

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Diplomacy and Glamour at the Lisbon Marriott Hotel Photo Report

It’s no longer just a man’s world when it comes to diplomacy as top diplomatic jobs often fall under the charming influence of the ladies. This sparkling event organised by the Lisbon Marriott Hotel shows that a little gentle persuasion from women diplomats can work wonders when it comes to bringing countries and cultures together.

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1. MANUELA DURÃO | Director of Sales and Marketing, Lisbon Marriott Hotel • ELMAR DERKITSCH | Managing Director, Lisbon Marriott Hotel • ANA CAETANO | RP, Lisbon Marriott Hotel 2. ABIMBOLA WONOSIKOU | Nigerian Ambassador • ROSARINHO CRUZ | Designer Jóias 3. EVELYN DE ANDIOn | Mexican Ambassador • ANA CAETANO | RP, Lisbon Marriott Hotel • ROMERO DIAZ | Paraguay Ambassador • KARINA MONTORTANO | Embassy of Paraguay 4. ROSALINA MACHADO • ELMAR DERKITSCH | Managing Director, Lisbon Marriott Hotel 5. IRINA GORGILADZE | Georgian Ambassador 6. SMEETA TYAGY | Indian Ambassador 7. ERIKA GRINBERG | Argentinean Ambassador Cont. pag. 48 | 57

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8. KEITUMETSE MATTHEWS | South African Ambassador • ABIMBOLA WONOSIKOU | Nigerian Ambassador • MARIA LURDES FERREIRA | Algerian Ambassador • FATILHA SELMANE 9. ANA DE BRITO • LJILJANA STEFANOVIC | Serbian Ambassador 10. JOANA WRABETZ | Austrian Ambassador • CARLOS GIL | Fashion Jóias 11. EVELYN DE ANDION | Mexican Ambassador • PATRÍCIA CRUZ | Designer Jóias 58 | Commercial Markets

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Delivering a unique

Shopping Experience

Shopping is becoming an increasingly leisure-orientated and customised experience.

Mass consumption has been consigned to the dustbin of the past, while bespoke and unique services have become a ‘must’.

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VICTÓRIA FERNANDES | Sociologist

etail, becoming increasingly complex and diverse, is changing at lightning speed in most developed as well as emerging economies.

result they will search for quality of life, experiences, entertainment, enrichment, leisure...

Shifting demographics, household downsizing, fierce competition within retailing formats, growth of online retailing, the explosion in customerleve data availability, austerity and green awareness – among other trends – require that the retail industry quickly adapts existing approaches to keep up with increasingly demanding, individual and savvy consumers.

Many retailers are focusing more on consumer needs rather than being product focused. Macy’s, for instance, started My Macy’s initiative to tailor EMBRACING DIVERSITY AS A merchandise to individual stores MARKET FORCE focused on local customer needs and Customer needs and expectations are preferences in each location. changing in ways that align with their cultural, ethnic and other demographic Retail involves more customer entertainment and interactive related preferences (religion, sexual experiences. orientation and physical ability differences).

A case in point is Bloomingdale’s campaign ‘Lights, Camera, Fashion’; Zara’s Understanding the many tastes and ‘regular merchandise inspires customers spending habits of an increasingly to return regularly’ while Nespresso and diverse population is critical to Delta boutiques are designed to maintain growing market share. IKEA in a continuous relationship.

California was better able to position itself for success in the Hispanic MULTI-CHANNEL IS KEY FOR consumer market by creating larger, SUCCESS more open spaces and exciting displays. Diverse cultural products will become mainstream in the future.

US supermarket chain Giant Eagle has embraced the use of social media as a GROWTH IN SPENDING ON strategy to attract real-world sales.

SERVICES Goods spending will lose ground to In Europe, luxury brand Burberry services spending. Older generations managed to buck the trend of slumping are becoming more service (‘do it sales (22% rise in revenue, 2011); Guitar for me’) and experience oriented.

Center, the world’s largest musical Younger generations are more instrument retailer, is giving consumers likely to approach goods, services an ‘endless aisle’, with multiple and experiences as an integrated customised shopping options. continuum (PWC, Retailing 2015).

Overall, consumers are looking for the The retailers who create the best customer meaningful (which includes personal experiences across all channels are in the services, value and relevance) – and so best position to win. 

Bespoke retailing with a personalised service means adapting solutions to fit individual differences, expectations and needs.

STAYING AHEAD OF SHIFTING DEMOGRAPHICS Population changes will continue to have an impact on buying patterns worldwide and should be a key factor for the marketplace. The amassed wealth of the baby boomer generation (born between 1946 and 1964) in mature consumer societies should not be ignored — their estimated annual spending power is more than $US 2 trillion while numbering some 450 million worldwide (MIT AgeLab).

Within the next few years, 50% of the EU’s population will be 65+. Baby Boomers will have specific postretirement needs, with increased emphasis on health and service demands. Most are committed to feeling and looking younger. As a

This will impact every aspect of retail. The X Generation (1965-80) is significantly smaller than previous and succeeding generations, as is the Y (Millennium or Eco generation).

This is the most diverse group and will represent a challenge to traditional retailing.

retailers should need to incorporate services, experiences and value propositions into their concepts.

Branding one’s business to deliver a unique selling experience will remain a highly critical success factor.

DRIVING VALUE WITH CUSTOMERS FOCUS

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The whys of reforming the

Portuguese State

CHRIS GRAEME | Photo Report

Former PSD leader Marques Mendes explains at an ICPT lunch at Lisbon’s Fontana Park hotel that quality not quantity is important when running the Portuguese State.

There is no point indiscriminately making budget cuts unless the ruling class – politicians in parliament and government — govern the country for the good of the people, not their own careers and pockets. Meritocracy not mediocrity was essential for a healthy and dynamic economy.

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1. MANUEL RAMALHO | President of the ICPT • MARQUES MENDES | Former PSD leader 2. VIRGINIA D’ ALMEIDA GERADo | Lawyer • FLÁVIO CARMELO | Engineer 3. DANIEL SOARES DE OLIVEIRA • MARCEL DE BOTTON 4. First Secretary | Japanese Embassy 5. FRANCISCO ACOSTA | Partner, Wordreference Investimentos, Lda 6. JOÃO RENDEIRO 7. Italian Ambassador 8. NUNO SARAIVA | Director, Diário de Notícias 9. VASCO TRIGO 10. ANNE TAYLOR | President, American Club of Lisbon 11. MANUELA RODRIGUES 12. VIRGILIO DOLBETH E COSTA 13. MANUEL POMBO CRUCHINHO | 61

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Perfect Harmony Honda CIVIC 1.6 DTEC Sport

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his model has all the avant-garde bold lines of the CIVIC that we have long known and admired. The big difference lies in the 1.6 Diesel Honda engine which offers fantastic and enjoyable performance, from the 120 HP engine with combined consumption in the order of 5 litres/100km and a corresponding reduction in emissions thanks to its ECO active system and Stop-Start mechanism.

Supremely comfortable, it has more than enough room to take four adults easily on a journey that promises excellent fuel economy and is, at the same time, a joy to drive.

All of the Civic’s engine options provide

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fantastic power and performance. But the new 1.6 i-DTEC diesel engine – the first engine with Honda’s Earth Dreams Technology - is extraordinary. On the road one thinks of being behind the wheel of a CIVIC with a robust petrol engine, but with this fuel economy one can expect a much more powerful yet economical driving experience.

of 207 kms/h and CO2 emissions of 100g/ km. Its six-speed manual gear box enables speed to be recovered quickly in lower gears.

The waiting time for this 1.6 car has been a long one given the presence of other brands in the market, but for those with the patience it has been worth the wait – there’s no regrets when it comes to the surprising CIVIC 1.6i DTEC.

Japanese quality is apparent throughout the interior which is well sound-proofed and affords comfortable easy of driving and ample space for luggage. Despite the poor visibility from the rear window, this model offers a rear camera that helps manoeuvre the car into tight parking spaces. Above all the car provides a safe and secure atmosphere for family motoring with the option of a model for executives.

It offers acceleration from 0-100kms/h in just 10.5 seconds and a maximum speed

Prices: from €25,100

The new challenge coming soon Civic Tourer

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he new Civic Tourer shooting brake, which was completely designed and built in Europe, has already been unveiled at the Frankfurt car show.

The distinct and sophisticated profile of this new model does not compromise its supreme practicality. The Civic Tourer is highly

versatile and functional with an interior space of 624 litres (baggage compartment capacity with folding down rear seats) offering a benchmark reference in the sector.

The Civic Tourer will boast a 1.6 i-DTEC Earth Dreams Technology engine and a 1.8 i-VTEC engine with manual or automatic transmission. The new Advanced Design System (ADS) highlights its stability and

comfort, independent of the amount of load and driving conditions that the model may have to cope with at any given time.

This model will be produced at the Honda plant in the United Kingdom and will be officially launched in Europe at the start of 2014 while the prices should not be much more than those of the already known CIVIC.

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Pure Sophistication Mercedes CLA 220 CDI

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he aggressive design and good taste are immediately apparent in this small four-door coupé. This executive model is defined as a luxury coupé with cutting-edge design. The comfort of the CLA 220 CDI is always present whenever four adults are travelling, not just because of the silent engine but also down to the comfortable seats and quality fixtures and fittings inside.

This is as true for the basic Urban model as it is for the AMG sports version. This model offers a supremely pleasurable driving experience because of its7G-DCT gearbox, added to a feeling of safety thanks to its excellent

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road handling on corners and its brake capacity without having to change direction means that this CLA is extremely agile. The 4 cylinder 220 CDI engine backs up its modern qualities as does the extraordinary binary capacity and its ability and performance even in low RPM. The low levels of emissions and fuel consumption of an already proven engine means that it can easily achieve speeds of 100/h in just 8.2 seconds and a maximum speed of 230 Kms/h.

Price: from €44.950

The Sporty Lightweight Mercedes SL 350

Top-to-toe restyling Mercedes E 250 CDI

he total makeover of the Class E has proved to be the biggest overhaul for Mercedes brand ever. With a new improved appearance on the outside, totally redesigned headlights, with two instead of four, and a revamp at the rear of the vehicle with the use of LED and fibre optical illumination, the overall look is dynamic and powerful.

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a new panel and dashboard and an interior which is stylish, comfortable, while safety features have been renewed with the so-called “intelligent drive” package and many of the gadgets found on its older S Class sibling.

Inside, the fixtures and fittings have been raised a notch in quality with

It has an excellent automatic 7G-TRONIC PLUS gearbox which

The high-end comfort and agility long taken for granted in the 250 CDi have been included, despite being somewhat noisy with its 204 HP engine.

offers low consumption, both on the open road and in the city. The Class E achieves 0-100kms in just 7,7 seconds and a maximum speed of 240 Kms/h.

What is rather bewildering is the sheer number of optional extras on the E Class, which even so doesn’t make this car go unnoticed – this German car’s leadership from amongst luxury models in this segment is assured for the foreseeable future with the new E Class.

Price: from €59,805

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An impressive motor GLK 350 CDI

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his Mercedes SUV, the GLK 350 CDI is impressive not just because of its bold lines with its new look launched this year, but also because of its excellent V6 265 HP engine and permanent four wheel 4 MATIC drive which offers limitless road holding and enjoyable driving.

This is the perfect combination of style associated with power, with a smooth comfortable ride thanks to the excellent suspension which fits any situation, providing agility on all kinds of road surfaces.

This multi road handling capacity is down to an excellent combination of suspension with the famous transmission of an automatic 7G Tronic gear box which affords AGILITY CONTROL when driving in urban, sporting or off-road settings.

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The GLK’s new interior offers chic design, a feeling of quality and a range of quality materials normally found in luxury vehicles. The central dash board has been completely redesigned, and has been re-surfaced, the new circular air vents and other details have upped the quality of the car’s finish.

The triple spoke sports steering wheel, new colours and upholstery patterns; together with indirect atmospheric lighting using fibre optic LED technology available in the GLK for the first time has intensified the feeling of wellbeing in the interior of the vehicle.

A fast acceleration and powerful engine means that this SUV reaches speeds of 100 kms/h in just 6.4 seconds and a maximum speed for 232 Kms / h.

Prices: from €77.900

,4 semana

4

the international retail property market 13-15 NOVEMBER 2013

Cannes - France

3 days of exhibition,

conference and networking to locate the best retail sites and strike deals that open new markets

8,200 participants 69 countries 2,300 international developers & owners 2,400 retailers 340 investment companies

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90 local authorities

REGISTER NOW Before June 28th: â‚Ź 379* www.mapic.com

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