Nº8 partnersinbusiness

Winter 2013

UL LF

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Retail Formats

IL

Issue Nº 8 ::

• Portugal´s State Budget 2014 • Angola and Portugal • Reinventation of Retail • Bureau Veritas • Sonae Sierra • Vista Shopping

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INDEX

04 • Message from the director

06 • Balancing Portugal’s books ­– a thankless task 10 • Angola and Portugal – a murky marriage of convenience 14 • Partners News 22 • Portugal’s shopping formats – adapting to changing times 25 • Retail – clear signs of recovery?

26 • Vista Shopping – Luanda’s first modern luxury shopping centre 29 • APCC – almost out of the desert 30 • Sonae Sierra – a European retail success story 33 • TAP President Fernando Pinto - Efromovich proposal is good 34 • Daring to dream and deliver – the challenge of creating a shopping experience 36 • Bureau Veritas – the challenges of meeting international legal requirements 38 • 5th Annual Lisbon Office Market Property Consultants’ bash 40 • CIP President António Saraiva at the International Club of Portugal 42 • FundBox launches 55 Casal Ribeiro Avenue Project in Lisbon 44 • American Club of Lisbon: German entrepreneur blasts Portuguese economic leadership 46 • Expo Real – Central Europe and Germany sustain the real estate markets 48 • Cars DIRECTOR | Luis Figueiredo Trindade • lft@partnersinbusiness.info COMMERCIAL DEPARTMENT | geral@partnersinbusiness.info EDITOR | Chris Graeme • chris@partnersinbusiness.info DESIGN CONCEPTION | André Freire • David Martins DESIGN DEVELOPER | Alice L.C TRANSLATION | Chris Graeme PHOTOGRAPHY | Chris Graeme PRINTER | Finepaper, Lda (Lisboa) – nº DL: 341143/12 DISTRIBUTION | 3,000 are distributed by hand to leading business people in the Greater Lisbon area, 1.500 copies are distributed by post internationally and 500 copies at the national and international trade fairs, events of the Chambers of Commerce.

Retail Formats | Issue Nº 8 – Winter 2013 Published quaterly and owned by Bravespiral – Comunicação, Unip. Lda. Rua Sarmento de Beires n.º 35 C | 1900-411 Lisboa | 21 84 716 16 Registo na ERC nº 126184 | Annual subscription fee: 25 euros / Bi-monthly www.partnersinbusiness.info Reproduction of material in this magazine in any form is prohibited without prior written permission from the Partners in Business team.

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

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[ EDITOR IAL ]

IS THE CHANGE

REALLY HAPPENING?

W

LUIS FIGUEIREDO TRINDADE | Director, PARTNERS IN BUSINESS

In Lisbon an area of strong tourist demand for prime luxury goods has been created in Avenida da Liberdade as wealthy shoppers fill Lisbon’s 5-star hotels and the exclusive brands which line the avenue now the seventh most expensive retail street in the word and known as the Champs Elysees of Lisbon.

4 | Retail Formats

e’re seeing a turning point, the economic indicators point to a upwards change in Portugal.

Despite trade in the Euro zone, as in Portugal, being in negative territory again, following increases of 0.7% and 0.5% in July and August respectively, these changes seen in the spending patterns of families did not show through when it came to the sales, with shoppers only opting for purchases that were sensible and and extremely necessary.

Consumers are at the moment controlling their emotions and avoiding impulse buying. The fall in retail sales has been seen in the non-food sector since 2008, gradually eroding away the confidence of the retailers, although there has been some modest improvement over the last two quarters. Only those retailers and shopping centre managers with a medium to long-term have been developing an expansion policy, taking advantage of better market conditions, location being the deciding factor.

The Shopping Centres market in Portugal which is saturated, is now beginning to see the repositioning of some with changes in format, namely into office centres, some small shopping centres are turning into gym and health clubs, while other typical shopping centres are repositioning themselves as Outlets. Larger shopping centres too are avoiding empty units by temporary shops of pop ups where demand for popular brands remains unabated.

We are equally feeling from many investors interest in our real estate assets but although the confidence index is growing, the results will only filter down from various operations from 2015 onwards, a year when stability is expected to return.

High street shopping is growing in the centre of Lisbon and Porto, and in Lisbon an area of strong tourist demand for prime luxury goods has been created in Avenida da Liberdade as wealthy shoppers fill Lisbon’s 5-star hotels and the exclusive brands which line the avenue now the seventh most expensive retail street in the word and known as the Champs Elysees of Lisbon. Going down Avenida da Liberdade we arrive at the city’s down town or Baixa where one can start to feel the slow but sure modernisation of high street shopping and see the presence of various brands aimed at the middle class, this being an area of high street shopping that in the middle to long-run could end up being Lisbon’s answer to London’s Oxford Street.

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[ SPEC IAL R E P ORT ]

Portugal’s State Budget 2014

CHRIS GRAEME | Editor

The tightrope of balancing Portugal’s books against the winds of legal, social and political opinion is no easy task argues Chris Graeme

S

o, Portugal’s State Budget for 2014 has been passed in Parliament, no doubt bringing a sigh of relief to foreign investors, creditors, the European Union, ratings agencies and, above all, the coalition Government itself.

creditors, but above all that’s what we need to restore ample confidence from investors” he said.

Pedro Passos Coelho has argued that the economic reform and austerity measures implemented by the Government is bearing fruit as the country’s budget deficit dropped by an 0.7 percentage point of its GDP in the first half of the year compared with 2012.

Portuguese Prime Minister Pedro Passos Coelho said in October that his centre-right PSD-CDS-PP government’s budget was deliberately focused on slashing the public deficit in order to win back investor confidence.

That means bulldozing ahead with a raft of reforms in the education sector, public administration, health, welfare and, most contentiously of all, pensions.

In fact it is here that the Government could come unstuck. Because for all its votes in the Portuguese Parliament, the Assembly of the Republic, the entire programme could be blown of course if the State’s Constitutional Court throws out the measures.

6 | Retail Formats

At a business conference in Lisbon earlier this year the Prime Minister said, “There’s no reason to expect that the State Budget for 2014 will be a budget that doesn’t look at cutting the structural and nominal deficit further.

And he has said that spending cuts and curbing public debts remain the Government’s priority. The troika wants it to being spending down to 4 per cent of GDP, but that might be a tall order and the Government may have difficulty bringing it down to 5 per cent.

The problem is that now the Government’s policies on pension cuts to public sector workers could decide the fate of the coalition and ultimately determine if Portugal heads for a second bailout of not.

“That’s what’s agreed with our institutional The Government is looking nervously to the

The Government’s entire programme could be blown off course if the State’s Constitutional Court throws out the measures

President of the Republic, Ánibal Cavaco Silva, to see if he will act as a referee or a player on the matter since if the Constitutional Court turns it down then the ratings agencies will certainly downgrade the country again.

Some analysts are already placing bets that Portugal will need a second bailout by the end of the year, which this magazine has always argued would be a complete disaster for Portugal and mean that all the sacrifice and suffering would have been in vain.

What is at stake is the Constitutional Court ruling against the Convergence Law for Pensions controlled by the State-run Caixa Geral de Aposentações (CGA) with those of the nation’s cash-strapped social security fund Segurança Social.

WHATEVER YOU DO, DON’T SCARE THE HORSES!

Government had done in producing a juicy set of carrots to tempt them, including a simple but effective Golden Visa scheme and reforms to outdated rental laws that have convinced foreign investors to once again start looking at the country and its quality assets. If the Constitutional Court throws out the pension reform, interest rates on sovereign debt would rise again to the dangerous 7 per cent mark and the bailout would be inevitable.

REVENGE IS A DISH BEST SERVED COLD! Of course the opposition PS socialist party, which the international ‘troika’ of European Union, International Monetary Fund and European Central Bank lenders want to reach consensus with the Government, is not making life easy.

It clearly hasn’t forgiven either the President, Cavaco Silva, or his PSD party One minister has already suggested that from what they claim was to force the last failure to achieve consensus from the Socialist government to seek help from country’s legal experts could lead to a ratings international lenders and call snap cut followed by a bank ratings cut – Portugal’s elections. And former PS socialist prime main banks issued extremely pessimistic minister José Sócrates isn’t helping the results this quarter – and risk sending the matter either by his weekly tirades against recent trickle of investors packing again. the Government on Portugal’s state-run television channel RTP where he That would be a crying shame. To open the reinforces constantly that it was the PSD stable door now and scare the horses into in cahoots with the President that running would undermine the hard work this destroyed his government.

What Portugal needs right now is broad cross-party consensus, if not an outright Government of National Salvation to keep the country on course for the next two or three years until the crisis has blown over.

Ironically there is a broad consensus among business leaders, economic analysts and foreign observers that suggest Portugal is slowly coming out of recession. Retail consumption is up for the third consecutive quarter, direct foreign investment is up from China, Angola, Brazil, Russia and even Spain while Portuguese companies are making a valiant and praiseworthy effort to close the balance of trade deficit by exporting more abroad than at any time since the Salazar dictatorship.

It would, in my mind, be a scandal and virtual treasonable sabotage to put the country’s entire recovery at risk because of a couple of years more pain.

NO PAIN NO GAIN! The current government is trying to skilfully walk a dangerous tightrope over three gorges without a net, seeking to balance economic growth and deficit reduction without strangling the fragile recovery because of high taxes and expenditure cuts. |7

[ SPEC IAL R E P ORT ] Deep down the Government only wants the President to act as a referee rather than Judge and Jury on the side of the Constitutional Court.

Knowing full well the sensitiveness of the issue, and desperately wanting the ‘troika’ period to come to an end

In early November the President of the European Commission, Manuel Durão Barroso expressed his worst fears for the Government. If the main constituent part of the State Budget are considered unconstitutional “this will without a doubt threaten Portugal’s return to the markets next summer, something that is obvious to us.”

would be criminal if Portugal’s sovereign bodies didn’t weigh up the risks.”

In the run-up to the parliamentary vote on the budget, Pedro Passos Coelho had upped the ‘anti’ in speeches and even on television explaining why it was the responsibility of all political parties to avoid the worse.

The Pensions Convergence Law, which is actually independent of the State Budget for 2014, but is essential for it to be met, will be in the President’s In-tray as this publication comes out. Without it being passed the Government will fall drastically short of its GDP budget commitments made to Brussels and the IMF and the only alternative would be to put up VAT and taxes, damaging, if not destroying Portugal’s fragile economic turnaround. The President will then have just eight days to make his comments and the Constitutional Court will have 25 days to pronounce on his comments and must be made public by December 16th.

At the end of October he told the party faithful this message at the PSD National Congress where he warned that the ratings agencies were “all eyes on constitutional risks”. Then, at the end of October, addressing PSD and CDS-PP parliamentary deputies, he said that “everyone needed to send out the same clear message of unity” while earlier this month he widened his appeal to all constitutional bodies to “stay fixed on their effort” to see that Portugal completed its adjustment programme which provided a €78 billion lifeline to the Portuguese state and end next summer.

Now all eyes are on the Presidential Palace in Lisbon’s riverside Belém district where the President’s actions are seen as crucial.

DAMNED IF HE DOES AND DAMNED IF HE DOESN’T In many ways President Ánibal Cavaco Silva has a thankless task on his hands. He knows that the PS socialists hold him personally responsible for the bailout and the intervention of the ‘troika’ in the first place. There is no reason why they would want to broker a deal with the ruling opposition on his account.

The problem also doesn’t lie in whether or not he sends the CGA Pensions bill to the Constitutional Court, but the notes that he will 8 | Retail Formats

He added that it was “important how the President of the Republic worded his comments” to the Constitutional Court because there was “no such thing as neutral in terms of the tone he would adopt.”

attach as the Chief Executive of the State for the judges perusal.

Depending on his arguments and comments, this seasoned conservative politician and university economist could sway the whole issue against the Government of his own party Say too little in defense of the cash-strapped elderly and he risks a round of public unrest, strikes and defiance from union bosses, social groups and opposition parties.

If the past 12 months is anything to go by, the President has come out hard and fast against the Government, offering cannon fodder for the legal beagles in the Ratton Palace – the headquarters of Portugal’s Constitutional Court – to use against the Government.

Deep down the Government only wants the President to act as a referee rather than Judge and Jury on the side of the Constitutional Court. Knowing full well the sensitiveness of the issue, and desperately wanting the ‘troika’ period to come to an end. But even in a delicate situation as this, the Government has found someone sympathetic to its cause to speak out in its favour, and that someone was PSD supporter António Pinto Leite.

In an interview with business daily Diário Económico, the former PSD leader said “it

At a Latin American Forum in Panamá last month Cavaco Silva said that before moving forward with a request for the Constitutional Court to rule on the Pensions Law and the State Budget for 2014 he would “make a careful study” of the material and its costs, but he also spoke about the State Budget and the “costs” to the country of it not being ratified at all levels and coming into force on January 1, 2014.

Specifically as to the Pensions Law, in September he called the pension cuts “an extraordinary tax” making his critical opinion clear on the measure. If the Constitutional Court turns down the Pensions Law which will invalidate the State Budget 2014, then this will be tantamount to a vote of no-confidence in the Government.

For the Government to fall at the hurdle now, just furlongs from the troika evaluation finishing post, would be a disaster for Portugal, make no mistake. 

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

ANGOLA AND PORTUGAL

IS PORTUGAL SELLING ITS SOUL FOR THE SAKE OF DIRTY MONEY? CHRIS GRAEME | Editor

In October Angola’s President José Eduardo dos Santos officially ended the Special Strategic Relationship between Portugal and Angola over rising criticisms and judicial investigations over corruption and money laundering in Lisbon.

Portuguese companies, with billions of euros at stake in the booming Angolan economy, are naturally concerned says Chris Graeme who asks how far can the law turn a blind eye to dirty money?

A

ngola is seen by the Portuguese Government and many of its companies in infrastructure, construction, mining, banking, finance, tourism and anything and everything you care to mention as central to this country’s fragile economic recovery.

Sharing the same language, culture and history, it was only natural that the

10 | Retail Formats

Portuguese should want to return to this oil and diamond rich land once the Civil War ended in 2002.

And all because business is booming between Angola and Portugal and because money, from somewhat murky sources, has been flooding into Lisbon before The new Angolan rich have been flying being “processed” and heading off to to Lisbon to do their shopping and their other destinations in Europe like London, wives to do their hair in Lisbon’s now chic Paris, Frankfurt and Geneva.

Avenida da Liberdade, which has seen a plethora or exclusive international fashion Small wonder then that certain business brands and jewellers spring up over the players and Portuguese politicians in the past five or six years making this once Government want tales of corruption, run down artery the 7th richest shopping money laundering, theft, and capital avenue in the world, rivalling, dare I say whitewashing to go away from the nations it, the Champs Elyssées. newspaper front pages.

Relations between the Portuguese Government and Angola, meaning the family of José Eduardo dos Santos, who, let’s face it, owns the country and controls its wealth, said recently that relations with Portugal were “unhealthy” reflecting tensions between Africa’s second largest oil producer and its former colonial ruler.

last summer raised eyebrows, apologized publicly over legal investigations by Lisbon Attorney General’s Department into less than transparent business deals involving senior Angolan officials.

The press got hold of the story and like a dog worrying a bone, have refused to let it go. That’s a problem for those who have “LET ALL THE POISONS OF THE EARTH a financial stake in the rebuilding of the SEEP OUT!! (I CLAUDIUS) Angolan economy and infrastructure after years of civil war. Portugal is currently The problems, which were always bubbling Angola’s main source of imports and beneath the surface of a rather black and Portuguese companies are doing a brisk poisonous pool of financial intrigue, trade in the construction, infrastructure and seeped to the surface like a toxic miasma banking sectors. in October after the Portuguese Foreign Minister, Rui Machete, whose appointment Angolan investors too have piled into Lisbon

with wads of cash and have been busy buying up stakes in companies listed on the Lisbon PSI-20 top companies.

With a biting economic and financial crisis at home, Portuguese companies have been focusing on their internationalization strategies abroad to survive and Angola was and is in the first plan for that strategy.

In the Angolan Parliament José Eduardo dos Santos told deputies that relations between Portugal and Angola were “not well” and added that there had been “contradictions” at the level of the Portuguese leadership and that the “current political climate in the relationship” did not “facilitate the construction of a strategic partnership.”

“

Small wonder then that certain business players and Portuguese politicians in the Government want tales of corruption, money laundering, theft, and capital whitewashing to go away from the nations newspaper front pages.

”

| 11

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

“

Relations between Portugal and Angola were irreplaceable. He may be right. It will take more now than just smooth words from the Ministry of the Economy and Foreign Affairs to calm these highly poisonous waters.

”

The Portuguese government, clearly panicked, issued a statement insisting that it had listened to the Angolan president’s comments “with surprise” but stressed the importance of what it believed to be a good relationship between the two countries.

glass coastal launches and two steel ocean patrol vessels. Just one example of how Portugal and Portuguese jobs stand to lose out by asking to many inconvenient questions about Mr. dos Santos’ and his daughter Isabel dos Santos’ business dealings in Lisbon.

Not surprising really since this political crisis threatens to pull the plug on billions in Portuguese business investments. And not just for Portuguese companies operating in Angola. The frostiness between the two nations is already threatening to sink a €60 million ship-building deal in Portugal for the construction of five ships for the Angolan Navy. Portugal could lose out to China, Brazil, Russia and Spain who could all provide the ships.

But others, including British, French and United States companies in the oil sector back up accusations by Rui Machete and legal investigators of corruption and dirty money laundering in the Portuguese capital. Only recently a large and respected private bank, Banco Espírito Santo had its offices raided yet again by the police over allegations that it and other institutions may have been involved in syphoning billions of dollars out of Angola every year.

The project, which would have largely saved the Viana do Castelo shipbuilding yards in the north of Portugal, involves three fibre

Then a mission of Portuguese business leaders from Lisbon to Luanda and second city Benguela which was supposed to have

12 | Retail Formats

taken place early in November was cancelled due to the state of tension between the two countries.

Economic and diplomatic experts at London’s Chatham House say that only diplomacy can heal the rift between the two countries and that may mean turning a blind eye to where Angolan money has come from, how it was earned and where it is going.

In a visit to Macau, the Portuguese Vice Prime Minister, Paulo Portas, himself often the centre of corruption allegations in the press over naval and defence contracts and offsets, stated that “relations between Portugal and Angola” were “irreplaceable”.

He may be right. It will take more now than just smooth words from the Ministry of the Economy and Foreign Affairs to calm these highly poisonous waters.

ISABEL DOS SANTOS: AFRICA’S FIRST FEMALE BILLIONAIRE She is Africa’s first female billionaire and the daughter of Angolan President, José Eduardo dos Santos. Isabel dos Santos, 40, studied engineering at London’s King’s College before opening her first business at the age of 24 – a restaurant called Miami Beach. Since then she has enjoyed a meteoric rise, currently sitting on the boards of several companies in Angola and Portugal and owning large stakes in corporations including a bank and a cable TV company.

Her assets include a 19.5 per cent share of the bank BPI, one of Portugal’s largest publicly traded banks and worth an estimated €500 million and she also has a 25% stake in the Angolan bank Banco BIC worth a reputed €170 million. In 2012 she increased her share in Portugal’s largest cable TV company ZON Multimedia from 4.9 per cent to 28.8 per cent, worth around €400 million.

These shares together with her other assets push her net worth up to around the €1.2 billion mark.

Forbes business magazine also claim she owns a 25 per cent share of Unitel – one of Angola’s two mobile phone networks which some analysts believe is worth over a billion euros on its own Angola, once a Portuguese colony which it lost after years of colonial wars in the 1960s and early 1970s, was torn by violent civil war throughout most of the 1970s, 1980s and 1990s, only ending in 2002 after 27 years of bloodshed. With the onset of peace, foreign interests, including the Chinese, Russians, Portuguese and Americans moved in to exploit this country’s wealth of oil and diamonds.

José Eduardo dos Santos has been president of Angola, which has a population of 18 million people, in 1979, four years after it became independent from Portugal in 1975.

However the country has been described as anything but democratic with the dos Santos family criticized as being corrupt and nepotistic. José Eduardo dos Santos actually changed the constitution to give himself a further 10 years in power if his MPLA party wins the next elections, which many observers say is a virtual certainty.

Transparency International, a Non-Government Organisation that looks at corruption, has stated that out of 178 countries Angola comes in at 168th position making it one of the most corrupt nations in the world.

Since the end of the Civil War in 2002 the country enjoyed a huge boost in oil revenues from €3.5 billion in 2002 to €68 in 2008. One famous African Studies expert at the prestigious John Hopkins University for Advanced International Studies, Professor Peter Lewis has often explained that Angola’s leader’s source of funds and corporate governance are “very murky”. The central problem in Angola is an almost complete lack of transparency, and that no one knows where these funds come from.

“When you examine the ownership and controlling interests in Angola, it reads like a Who’s Who of the President’s family, party supporters and military chiefs.” But Isabel dos Santos press secretary in Portugal has always maintained that all her investments have been presented with “maximum transparency from publicly listed companies.  | 13

[ PA RT NE R S NEWS ]

L’ORÉAL PARIS

OPENS BEAUTY BOUTIQUE IN LISBON’S CHIADO

L’Oréal Paris has opened its new Beauty Boutique to the public in Lisbon’s chic down town Chiado shopping district in an operation completed by Jones Lang LaSalle through its Department of Retail Leasing.

The new shop from the world-famous beauty and cosmetics brand is at Rua Nova do Almada 109 and occupies a 180 m² area.

The L’Oréal Paris shop in Chiado is the

brand’s exclusive store that brings together, in one single space, the complete range of beauty products represented by the brand and a set of specialised services, thereby providing an all encompassing beauty experience.

CENTRAL STATION wins SIL Awards for Best Urban Office Rehabilitation project The Central Station building in Lisbon’s Praça D. Luís I square picked up the “Best Urban Office Rehabilitation” award at the SIL 2013 Real Estate Awards, the awards being handed out by the Portuguese Real Estate Fair (Salão Imobiliário de Portugal) every year for the best 14 | Retail Formats

projects and players in the national real estate market.

and entrepreneurship, as well as spaces for fashion and design show rooms.

Jones Lang LaSalle was hired by Habitat The building, which housed the former Vitae, the owner of the property, to CTT central post office in Lisbon, has define this new positioning, managing now been repositioned for cater for the space redefinition project, the start-up companies and professionals commercialisation of the offices and also in the areas of creativity, innovation the management of the building.

MAKSEN OPENS OFFICE IN MOZAMBIQUE Maksen has opened a new office in Mozambique, with the aim of strengthening its presence in a market that should register an annual growth of 8% over the next years.

The opening of the office, in the presence of the ambassador of Portugal in Mozambique and various clients and consultancy prospective clients, was its starting point strategy from which Maksen aims to operate more closely in the Telecommunications, Banking and Energy sectors. Investment in the African country

is explained too by the strengthening of Maksen’s multinational strategy over its 10 years of activity. António Lagartixo, Global Managing Partner of the consultancy, says “although Maksen was already operating in the country, this is an essential step in consolidating our position closer to our clients and tailoring that position to carry

out the projects we’re developing here better. This is an added guarantee of confidence for the organisations we work with and for our local partners.” In addition to the office that has just been opened in Maputo, Maksen also has a local presence in Angola, Brazil, Malta and Portugal.

B. PRIME AND AGUIRRE NEWMAN

Announces Plans For First Hyatt-Branded Hotel In Senegal: Hyatt Dakar Hyatt Hotels Corporation (NYSE: H) announced today that a Hyatt affiliate has entered into a management agreement with Lacoste & Cie S.A. for a new Hyatt hotel in Senegal’s capital city, Dakar.

Hyatt Dakar will become the first Hyatt-branded hotel in Senegal, joining the previously announced Park Hyatt Marrakech and Hyatt Place Taghazout in Morocco, as well as Park Hyatt Zanzibar and Hyatt Regency Arusha in Tanzania.

place consultants “think attitude” in luxor building

Expected to open in 2016, Hyatt Dakar will offer 140 guestrooms, and will feature two restaurants, a guest lounge and bar, as well as meeting space and a spa.

The hotel will be located in the heart of the city’s business district, within walking distance of major international organizations in the city, such as UNICEF and UNESCO. Additionally, the hotel will border the popular Kermel market, originally built in 1860 and famed for its striking original architecture.

B. Prime and Aguirre Newman were the consultants responsible for placing the consultants Think Attitude on the 7th floor of the Luxor building in Lisbon’s Avenida da República. Aguirre Newman acted on behalf of the building owner while B. Prime acted on behalf of Think Attitude Sourcing Solutions. | 15

[ PA RT NE R S NEWS ]

GERMAN CITIES TOP CBRE RANKING AS THE MAIN EUROPEAN DESTINATIONS FOR REAL ESTATE INVESTMENT

CBRE APPOINTS NEW DIRECTOR OF PROPERTY & ASSET MANAGEMENT Centres Industry, Luís Teodoro came from the multinational Portuguese company Sonae Sierra to CBRE with the aim of strengthening a strategic area in real estate consultancy - property assets management.

London and Paris Lead CBRE rankings while Moscow climbs to Third Place CBRE, the global market leader in the real estate services market, has announced that Luís Teodoro is its new Director of Property & Asset Management for CBRE Portugal, having taken the helm at the beginning of September. With over 12 years of experience in the Shopping

According to the latest study from the global real estate consultants CBRE, Germany has presented, for the first time, five cities in the CBRE ranking of the ten main destinations in Europe for commercial real estate investment.

Although non-European buyer activity increased in the first half of 2013, commercial real estate investment remained concentrated on a restricted number of European cities.

The mature markets like London and Paris continue to lead in terms of European market share and were in first and second place respectively, with Moscow third.

16 | Retail Formats

TEN TOP EUROPEAN INVESTMENT MARKETS, 1ST HALF OF 2013 In recent years, German investors have bet strongly on their own domestic market, German investor acquisitions having seen more activity in the German market itself (76%) in the first half of 2013, compared to 53% between 2007 and 2009. The number of foreign buyers interested in the German market has also increased, with international investors from 21 countries making acquisitions in Germany in 2013 to date.

Frankfurt, in particular, registered a considerable percentage of investment from outside Europe (39% of the total).

Given the current economic context, the vast majority of property assets, including shopping centres, have been hard hit by falling business margins.

For this reason there is a growing concern by proprietors in maintaining the profitability of their investments.

PLEN MOVES PREMISES TO EDIFÍCIO CASTILHO 59

PLEN - Sociedade de Advogados R.L. - a solicitors office - has moved into Edifício Castilho 59, managed by Refundos, located in the street of the same name, one of the most prestigious main roads in Lisbon. PLEN will occupy an area of 256 m² on the building’s 4th floor, according to consultancy Jones Lang LaSalle.

PLEN’s move to a larger space - not common these days - and also premises that are more centrally located, was spurred by the fact that it enables the law firm to maintain its growth in terms of the number of partners and associates, while at the same time offering its clients a more institutional space for work meetings and completing contracts.

“PASSEIO DAS ÁGUAS SHOPPING” OPENS ITS DOORS Sonae Sierra inaugurates new Shopping Centre in Brazil

Sonae Sierra, through its subsidiary Sonae Sierra Brasil, has just opened its Passeio das Águas Shopping, the largest shopping centre in the CentralWestern part of the country, thereby strengthening its position in Brazil.

The new shopping centre in Goiânia (Goiás State) has a 78,000 m2 GLA, in an investment of around €150 million

(R$ 466 million) creating around 6,300 offering a wide variety of cuisine choice with direct jobs. a total of 36 restaurant outlets and ample car parking space for 4,000 vehicles.

The Passeio das Águas Shopping centre has 267 shops, 10 of which are The new shopping centre offers the 1.6 large-sized, including a supermarket, million inhabitants of Goiâna both seven screen cinema and other national and international brands in a entertainment and leisure areas. range and variety never been seen in the region before, as well as various The shopping centre has an ample food court local brands.

ANTÓNIO COSTA

the new Business Manager of Randstad Professionals Randstad Professionals, a Randstad Group brand, the company leader in Human Resources, has appointed a new Business Manager – António Costa. With overt 7 years experience in the recruitment and selection market, he joined Hays in 2006 and for the past four years has been working for Michael Page.

António Costa has been responsible

for recruiting hundreds of talented executives for national and international companies and has spoken about the subject at various workshops, seminars and conferences, with special focus on activities linked to employability.

An appointment that will confirm the Randstad’s commitment to the Recruitment and Selection area. | 17

[ PA RT NE R S NEWS ]

MERCEDEZ BENZ is the most valuable premium car brand in the world In 2013, Mercedes-Benz continues to be the most valuable premium car brand in the world.

As in 2012, Mercedes-Benz came out 11th place worldwide in the report “Best Global Brands 2013”, having been recognised by Interbrand, a prestigious USA brand consultants, as the most valuable European brand.

The brand’s value increased by 6% in relation to 2012, having achieved US$31,904 Bn. This growth trend has remained constant since 2009.

The study authors have attributed this sustained success to the undeniable capacity that Mercedes-Benz has in the car industry to maintain the right balance between tradition and pioneering ideas in the mobility field and make people all over the world enthusiastic for its products.

The generation of compact cars launched over the past two years has been targetted specifically at modern groups of people.

From the new Class A to the new Class

S , all the vehicles go to show how Mercedes-Benz incorporates contemporary luxury, without neglecting the demands required of individual mobility.

The “Best Global Brands are identified

by Interbrand on an annual basis. The main CEOs in the world consider this study to be the benchmark in terms of competitiveness with regards to international brand value. The study identifies the top 100 most valuable brands worldwide.

The Lisbon 2013 Property Show Awards considered the best global real estate consultants in the Agency area by Euromoney Real Estate Awards The consultants was also classified in 1st place in this category in all EMEA region areas. Jones Lang LaSalle (NYSE:JLL) was considered the best real estate consultants in the Agency area globally as part of the 9th Real Estate Survey, a global survey published annually by the prestigious international financial magazine Euromoney.

Jones Lang LaSalle also came out in 1st place in all the areas of the Agency category for the EMEA region as part of the Euromoney Real Estate Awards 2013, which includes Western Europe, Scandinavia and the Baltic, Central and Eastern Europe and the MENA (Greater Middle East) region.

18 | Retail Formats

FUNDBOX

scoops two awards at SIL Fundbox, the Portuguese investment fund management company, netted two awards at the Lisbon 2013 Property Show in October.

It received the Property Investment Award and the Best Trade and Services Property Development Award for the Maria José Nogueira Pinto Continuous and Pallative Care Unit, Cascais developed in partnership with Lisbon charity Santa Casa da Misericórdia.

NEINVER

renews its outlets in Madrid to integrate them into its European platform

Neiver, the second largest outlet operator in Europe (ranking ICSC 2012), has just renovated its three outlet centres in Madrid to integrate them into its brand The Style Outlets, its international platform operating in France, Germany, Italy, Portugal and also in Spain (Seville and Coruña).

This project represented an investment of

€5.5 million. It is the culmination of introducing The Style Outlets brand in Spain, following the group’s business strategy in the sense of continually adapting to meet the current needs of the outlet sector and meet the demands and trends of consumers.

The investment made now at the three centres in Madrid confirms Neinver’s business

strategy in seeking to be the leader of the European outlet sector, a position which will be reinforced in Spain with the development of the Viladecans The Style Outlets, the first project in Catalonia. The investment is €80 million and will create 1,000 jobs.

Construction will start in 2014 and its opening is slated for the end of 2015.

reinforces its investment in Northern Portugal

Investment worth €60 million on residential development at the mouth of the River Douro

Two years after launching its first residential project in northern Portugal, ESPART has again boosted the region’s real estate market with the launch of a new development by the mouth of the River Douro, located at Vila Nova de Gaia, on the south banks of the River Douro, next to the beach.

Called the Douro Atlantic Garden, the project represents a €60 million investment and is made up of town houses, apartments and retail spaces.

In this first launch phase 30 plots will be commercialised for detached and semidetached houses.

With around 16 hectares, the site foresees plots for detached and semi-detached houses, apartments and retail outlets. For

the plots set aside for houses there will also be the commercialisation of land with the project or without properties. ESPART offers the possibility of the client choosing their own architectural concept for their detached house from a range of choices provided by architects Frederico Valsassina and Elói Castro or implementing their own

project, which will have to respect a number of guidelines in order blend in with the overall project.

The building of residential buildings with five floors is also planned. The GLA for the first phase will be 8,730m2.. The launch of the second phase of the project should take place in the third quarter of 2014 and will include the rehabilitation of one of the old codfish drying pavilions, which will give rise to a local convenience market, recreating a traditional shopping model.

It is expected that the construction phase of the Douro Atlantic Garden will be completed in the middle of 2015, at the same time as the occupation of the 30 town houses in the 1st phase. | 19

[ PA RT NE R S NEWS ]

WMARKET TRENDS END-OF-YEAR REVIEW Signs of market recovery

to gain ground as an investment alternative, with special focus on rehabilitation and conversion of existing commercial premises, with a growing number of of brands Investor interest in commercial setting up in the main areas of real estate is growing strongly Lisbon. Avenida da Liberdade and in the second half various and Chiado remain the most perspectives for large-scale deals attractive areas for the growth in the offices area were in the of high street retail. In these pipeline, with various places rental costs remain high, international investors there actually being a slight completing operations. A trend upwards pressure given the for growth in tourism strong demand, making this a investment is also expected, highly popular and interesting namely in Lisbon, which has area of investment. become one of the main city-break destinations in INDUSTRIAL AND Europe.

LOGISTICS

JONES LANG LASALLE

sells shop in Rua Augusta in another Golden Visa operation

According to the Worx Wmarket study, for the first half of 2013, real estate continues to be a consistent alternative for investment.

The main trends that stand out for the next half per sector are:

OFFICES The new range of product in the pipeline expected for 2014 has risen to around 70,000m2, of which 70% is concentrated on Zones 1 and 2. The majority of buildings in the pipeline are pre-existing buildings that have been rehabilitated with the downward trend for new buildings. Furthermore, the largest building expected is Duarte Pacheco 7, a premises with a total of 16,750m2.

It is expected that the reduced offer of new buildings in the near future means an opportunity for new office building projects.

RETAIL/HIGH STREET SHOPPING High Street shopping continues

20 | Retail Formats

Down-sizing in terms of space and renegotiating contracts and rents continue to be the trend, with an anticipated downward adjustment in prices continuing.

The new premises occupied by a restaurant from the Portuguese brand Vitaminas was recently opened.

Jones Lang LaSalle’s Capital Markets Department has concluded the sale of a retail asset that was held by the company Redevco in Rua Augusta, one of the most emblematic streets in Lisbon and one of the reference areas for high street shopping. The shop, located at Nº 275, has been occupied by a restaurant from the Portuguese brand Vitaminas and was acquired by a private Chinese investor.

FUNDBOX

gets two awards at the lisbon 2013 property show

HOTEL AND TOURISM SECTORS Lisbon’s international recognition and visibility is reinforcing the strategic position of this sector in the Portuguese economy.

INVESTMENT A reduction in the perception that Portugal is a risky country and the positive impact gained from a renewed interest from international investors who again see Portugal as a good investment opportunity alternative are all added to expectations of increased pressure for the sale of assets in bank portfolios.

The Maria José Nogueira Pinto Continuous Care Unit in Cascais was voted the Best Trade and Services Property Development of the Year.

The Investment Fund Management Company also scooped an award in the Property Investment category.

Innovation and sustainable development secured FundBox two of the 13 awards at the Lisbon 2013 Property Show also known as Salão Imobiliário de Portugal 2013, which were handed out at the fair at FIL in Lisbon in October.

This Investment Fund Management Company was distinguished with the “Property Investment Award” for investment funds, winning too in the category of “Best Trade and Services Property Development”, thanks to its project Maria José Nogueira Pinto Continuous and Palliative Care Unit, at Aldeia de Juzo, in Cascais, developed in partnership with Lisbon-based charity Santa Casa da Misericórdia.

EUROPEAN REAL ESTATE INVESTMENT - UPDATE According to the latest data from Cushman & Wakefield (C&W), the European real estate investment market has registered a strong performance over recent months.

According to this data from the consultants, transactions regarding the third quarter of this year registered an increase of 17.7% in relation to the same period in 2012, being the best results for a quarter since 2007.

Investors continue to want to buy property in more stable markets, with business deals in France, Germany and the United Kingdom growing steeply in the third quarter.

In terms of overall results, the Top 3 (France, United Kingdom and Germany) represented approximately 65% of the real estate investment

market share, while in the second quarter it represented 57%.

Despite this, some investors admit to be ready to take on greater risks, looking for opportunities in other markets. In the first quarter, the Eastern European countries were the ones that most benefited from this trend, having registered a growth of 162% in this period.

In the second quarter, countries in the South of Europe registered an increase of 101% compared to an overall increase of just 2% in the market, while in the third quarter, it was the Central European countries that accompanied this trend, with an increase of 179% compared with an increase of just 5% in the market in general.

The countries that grew the most in the last quarter were the Czech Republic, Poland, Holland, the United Kingdom and Ireland. In the core markets this increase in demand led to greater stability in prices practised, which was reflected in a fall in yields by 8 base points. It is expected that these corrections will be greater in the coming months.

As to the third quarter, the Industrial and Offices sectors led growth in investment turnover, with 19% and 18% respectively, while retail fell 10% due to the reduction in the number of opportunities, as well as a lack of financing in some areas. In terms of market share, the offices market represented more than 50%, while the Industrial market had a 10% share and Retail a 21%

share. Foreign investors made their presence felt after a slowdown in the first half of the year, having represented 43% of the market share compared to the 39% registered before. In real terms, while national investors shrank back by 2.1% regarding the total turnover of transactions, foreign investors upped their activity by 16%, representing €15.5 Bn.

SHOPPING CENTRES || REAL ESTATE ASSETS DESENVOLVIMENTO E GESTÃO DE SHOPPING CENTRES CONSULTORIA EM MODA, TENANT MIX & RETALHO COMERCIAL DESENVOLVIMENTO E PROMOÇÃO EM INVESTIMENTOS IMOBILIÁRIOS PLANEAMENTO ESTRATÉGICO, FORMAÇÃO & CONSULTORIA IMOBILIÁRIA

SHOPPING CENTRES DEVELOPMENT & MANAGEMENT FASHION, TENANT MIX, RETAIL & LEASING ADVISORY REAL ESTATE INVESTMENTS, DEVELOPMENT & PROMOTION REAL ESTATE ADVISORY, TRAINING & STRATEGIC PLANNING

knowledge. innovative. solutions.

Partner: João António R. F. Carvalho Rua Gregório Lopes, Lote 1639 Loja 1400 - 407 Lisboa - Portugal

Telemóvel: +351 939 323 789 Fax: +351 214 862 110 Mail: jacarvalho@netcabo.pt

PalpitEstratégico GESTÃO DE ATIVOS IMOBILIÁRIOS

| 21

[ PA RT NE R S OPINION ]

QUALITY PRODUCT + FAIR PRICE + RIGHT LOCATION

= Good Results JOÃO CARVALHO | CEO, PALPITESTRATÉGICO

Despite its maturity in the Portuguese market and the increasing popularity of high street shopping in Portugal, the shopping centre format will survive the crisis, but retailers and centre management companies need to listen to their customers says João António Carvalho, specialist in Retail and Real Estate and Managing Partner of Palpitestratégico.

22 | Retail Formats

“

The big challenge lies in finding solutions to make business grow in a sustainable way… shopping centre management teams will continue.

R

”

etailers are one of the key elements in the retail The solution for this new reality lies principally in the hands of

real estate matrix. These operators form the link the retailers who have to find new ways of staying profitable,

between real estate in the true sense of the word and consumers. The changes that we have seen in the national economy and in the sector itself have forced us to rethink the strategies of the last few years, something that is today visible in the way that the key players have been acting in this market.

The last quarter of 2008 marked the beginning of a fall in nonfoodstuff retail trade sales. Five years on and the expectations for 2013 reveal that the status quo will maintain, with various brands expecting to close the year with negative sales growth. Retailers point to family indebtedness, the growth of product in shopping centres and unemployment as the main variables that have led to a change in consumer habit patterns.

The crisis and the constant announcements of penalizing measures on the purchasing power of consumers continues to affect the confidence levels of retailers. Despite the difficulties mentioned, there are still some retailers that are continuing to invest in the growth of their network of shops, as part of their medium to longterm strategies, but they are increasingly more conservative in their expansion plans and, on the other hand, the strategy for reduction is increasingly cited as the goal of retailers, aiming to optimise their chain of shops.

Shopping centres continue to be the channel of preference in terms of the expansion strategies of these brands followed by high street shopping, which continues to reflect the interest shown by retailers in this format. In Lisbon, the Chiado area was the one which saw most brands come in, while Avenida da Liberdade continues to be the highest benchmark for international luxury brands.

The famous real estate maxim “Location, Location, Location” is unanimous amongst retailers who consider that “location and accesses” are deciding factors for the success of a commercial ensemble, but there are now many retailers who believe that the shopping centre segment has become saturated and are investing in the revitalisation of high street shopping and believe that the repositioning of existing projects is the way ahead for retail sector growth.

through variables whose control is within their reach. The demand for solutions that keep costs to a minimum, from production to property, takes on a decisive role in the face of falling sales. Those who understand what consumers want stand to be the winners.

Consumerism is a habit that changes according to the ways in which society changes, and nothing has quite changed our society as much as Information Technology and Telecommunications have. Clearly we are talking about the Internet and its countless and immeasurable impacts on our way of life. We’re no longer the same as we were and we don’t communicate in the same way that we did. We’re closer to information.

Fast companies and slow companies. Companies that know their clients and those who don’t. Companies that respect their clients and those who don’t. Not because rules or laws make it like that, but because these are vital conditions for the sustainability and survival of their position and market. The relationship of dependency on and convenience for former models has definitively been broken. t’s now down to companies to change. The challenge remains. The current landscape is tough for companies producing consumer goods and equally so for retailers. The industry faces a series of challenges, including changes in consumer behaviour, excess production capacity, very complex sourcing, and pressure on margins.

The big challenge lies in finding solutions to make the business grow in a sustainable way. The shopping centres management teams will also continue to play leading roles in this market.

They should ensure, on the one hand, that they can succeed in attracting to their project the necessary number of consumers needed to make retailer activity viable, and on the other hand, anticipate adjustment requirements in line with the operational conditions of shop keepers.

Despite the challenges presented, this new scenario in the sector is not necessarily synonymous with failure, with various operators facing the crisis by using solutions tailored to this new scenario. The search for new markets and A new context was created for retailer activity, which has new forms to seduce consumers and focus on other retail recognised that the sector is being affected by a number of factors segments, such as high street retail, have proved some of the beyond its control, whether family indebtedness or unemployment. formulas for success. | 23

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“ The Baixa has its

window of opportunity now with the changes to the rental laws to be transformed from a streetdominant of out-of-date The trend traditional shops for the next few into Lisbon’ to years wills answer be urban Oxford Street. rehabilitation, boosted by recent changes to| the legal

frame work...

“

PATRÍCIA LIZ Managing Partner, AGUIRRE NEWMAN

”

”

PAULO SILVA | Manager Director AGUIRRE NEWMAN PORTUGAL

24 | Retail Formats

Aguirre Newman

Windows of opportunity The reinvention of retail CHRIS GRAEME | Interview

The retail crisis seems to have reached the bottom with players repositioning themselves in the market to take advantage of a changing landscape where high street shopping will emerge as a potent force for the future. Chris Graeme speaks to Aguirre Newman Managing Partner Patrícia Liz.

There are two opinions about the recovery floating around. That there are clear signs things are picking up; and another that states things are still bad.

How do you see the situation?

It’s natural that there will be both opinions. People talk about a ‘light at the end of the tunnel’ but at the end of the tunnel the view is indistinct and one isn’t sure what one is seeing clearly. In fact what we are seeing are more foreigners and tourists coming to Portugal and a clear interest again from foreign investors. This tells us that the worst is over and things are starting to pick up and the flow is positive.

If we’re managing to attract foreign investment again, then it’s only natural that things will start to develop in other areas like retail and shopping too. I’m not saying that full recovery will come by 2014, but certainly by 2015 I imagine that we’ll be well on the road.

How will the recovery affect retail trade and shopping centres?

Firstly, I think the shopping centre format has had its boom cycle. The market is mature now and I don’t see many more shopping centres springing up in Portugal. There won’t be another explosion because there is a limit for everything and the market is already saturated.

There could be some zones outside of large cities that could accommodate one or two shopping centres; of course that will all depend on population, location, infrastructure and access. We saw in 2012 that there was nothing new in terms of shopping centres and 2013 seems the same since Évora and Setúbal aren’t going to officially open this year, but will wait for 2014.

Setúbal didn’t have a shopping centre as such but rather a Jumbo hypermarket and some gallery-style shops linked to it. That Alegro

shopping centre project has been extended and will continue to expand in the near future, as happened in Alfragide. There will be a very carefully chosen mix and a limited number of shops which has been very well thought out in terms of the surrounding population. Some shopping centres have had to reposition themselves to reflect the crisis and changing consumer habits.

We saw that with Odivelas, a project which started life as a retail park and turned into an Outlet. It was between Loures Shopping and Dolce Vita Tejo so we’re not sure exactly what’s going to happen there, it’s a bit of a mystery.

There were originally plans for a large shopping centre and now it’s known there isn’t the market for that, and this kind of repositioning will happen elsewhere where calculations didn’t pay off. In Greater Porto, for example, there are some medium-sized shopping centres that will be adapted into Outlets or some other model.

As for small shopping centres, some will simply disappear or be turned into gymnasiums which is what we saw at the Palacio SottoMayor site where the shopping gallery became a Virgin Active health club and some offices and convenience stores.

In the same way Sétima Avenida in Lisbon was repositioned into offices. As for large shopping centres the repositioning will always be in the mix since there isn’t really any other alternative. Apart from Dolce Vita, where I am still rather skeptical about the future of that space, what we’re seeing with large centres is a new dynamic in terms of the special use with so-called ‘pop-ups’ which are temporary shops or shops that have temporary goods and lines that people will always want to visit because there will be good bargains for a restricted amount of time.

High street shopping is making a real come back in Portugal, why do you think that is the case?

What’s missing in Lisbon is a type of Oxford Street for the middle classes where all the main retail chains could have their flagship stores. Well it’s interesting that you should say that because retailers and the City Council have cottoned on to that idea too for Rua Augusta. Now with more flexible rents and old-fashioned shops moving out we’re already seeing these kind of stores moving in. There we’ve got Intimissimi, Calzedonia, H&M and Zara. But there are still a lot of spaces that are not being taken advantage of, there are loads of shops that are closed.

I think that finally downtown Lisbon, the Baixa area, will now get the chance to be transformed and modernized over the next few years. Changes in the rental laws ending ridiculously subsidised rents will allow this.

The building owners won’t have to pay out such high compensation to traditional shop keepers already there for them to move out, while rents will no longer be at peppercorn rates and real market values will prevail. Then, by rehabilitating the buildings it will then be possible to create the kind of dimensions and space that modern retail chains are looking for.

The Baixa has its window of opportunity now to modernise and be transformed as does the area around Avenida da Liberdade where there are a number of off-roads which are promising for new and trendy shops and established brands.

There are brands that want to come to the Avenida and don’t have the space, so we need now to look at the other arterial roads, those first few hundred metres of branch off streets that are sufficiently close to the Avenida for people to stroll into. A good example of that is Rua Barata Salgueiro which is already seeing some interesting changes. Rua Rosa Araújo is almost deserted and has so much potential too for interesting shops and it’s so close to the Avenida. | 25

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“ Finally, the very fact

that we’re going to be the first really modern shopping centre in Luanda, will make it a successful model as has been seen in other cities in Africa and elsewhere.

”

LUÍS GASPAR | Leasing and Marketing Managing for Developer, VISTA CLUB SA

“ There’s also a

considerable lack of credibility in the shopping centres sector in Angola, so we’re responding to this with ethical and responsible behaviour, respecting our shop keepers and customers of the future.

”

LUÍS GASPAR | Leasing and Market Manager, ????

26 | Retail Formats

Vista Shopping

A benchmark shopping centre in the

heart of Luanda LUIS FIGUEIREDO | Interview

There’s a lot riding on the back on Luanda’s new luxury market shopping centre, Vista Shopping, says Luís Gaspar, Leasing and Marketing Manager for developer of Vista Club SA Vista Shopping is located in the heart of Luanda, blended into a mixed project of retail, residential and office premises. What is Vista Shopping’s scope and who is it aimed at?

Vista Shopping is in downtown Luanda, where over half of all the city’s offices are located. This means that the area is visited on a daily basis by thousands of executives, business people, senior company executives and midmanagement, civil service employees, expatriates and others. Basically we’re talking about a large group of people with a high degree of purchasing power and sophisticated consumer habits.

Which is why we’ve come up with a shopping centre to suit this particular type of clientèle, creating a space and tenant-mix that will meet the particular meeds of this segment of the market.

What is Vista Shopping’s GLA, how many floors will it have and will there be parking facilities?

Vista Shopping was designed to meet the reality of the market where it is located.

That’s why its GLA is just 7,500m2 spread out over two and a half floors with enough space for around 50 shops.

The basement covered parking will have 250 exclusive places divided on two floors.

What are the arguments for putting Vista Shopping in Luanda?

The strong points of having such a shopping centre are various. Firstly, its location, which is very central and in an exclusive area right in the heart of the city which will enable it to benefit from the thousands of business people that come here to their offices on a daily basis, but it also caters for those people

wanting to visit the Luanda Bay as a place to relax and unwind at the end of the day and at the weekends. Secondly, the fact that it will be part of a benchmark building in Luanda makes it really stand out as distinct from the other buildings in the city’s downtown district. The quality of the construction and the materials used also provides a strong argument in its favour. Finally, the very fact that we’re going to be the first really modern shopping centre in Luanda, will make it a successful model as has been seen in other cities in Africa and elsewhere.

With a high-end market positioning, what tenant-mix can be expected?

Given the positioning I’ve just mentioned, the tenant-mix will be one that best suits the type of customer we want to serve. Then, on the other hand, we will have a supermarket which will focus more on the quality of the products rather than the quantity. We’ll also offer a wider range of products both in terms of the individual and the home, such as fashion items and electronic goods. Finally, we’re going to put in a large-sized food court. All of this will feature famous, internationally known brands that are appreciated by the Angolans.

How is the project developing to date?

In terms of commercialisation, we’ve already actually rented out around 50% of the space. We’ve been extremely careful in choosing the right operators to join us on this journey, because it’s vital that the project is fruitful for both parties. In terms of construction progress, we’re within on schedule and despite the complexity of the | 27

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“

There are few brands already in the market and we’ve been courting them abroad and facilitating their entry into the Angolan market.

”

development, with various interlinking uses, we’ve managed to pick up a good head of steam.

What have been the main difficulties you’ve had to deal with?

Where are the brands you’ve chosen so far from? Will there be local brands and services too?

There are currently few brands present in the Angolan market. That being the case, so that we can create the range of offer we want to, we’ve really made a big effort abroad to entice new brands to Vista Shopping and thereby to Angola. Our activity has focused on Portugal, South Africa, Spain and other European countries. However, it’s worth mentioning the top quality of some Angolan operators, which have managed to create successful, well designed and well run retail spaces in the market.

Just the teething difficulties expected from the fact that the sector is new to Angola, challenges which we have always managed to resolve. There are few brands already in the market and we’ve been courting them abroad and facilitating their entry into the Angolan market. There’s also a considerable lack of credibility in the shopping centres sector in Angola, so we’re responding to this with ethical and responsible behaviour, respecting our What are the Vista Shopping shop keepers and customers of the future. developer’s expectations for the 28 | Retail Formats

centre and when is it slated to open?

We’re expecting to open at the end of 2014. Being an asset that we intend to hold in our portfolio and management, it’s important for us that it is a reference in the sector for Luanda, advertising the group’s know-how for future projects. That’s why it’s vital that this development is an asset, not just for us, but for all those involved.

We’ve set the bar high in terms of this project’s success at all levels and we’re banking on this helping to launch or consolidate various retail businesses which in turn will contribute to improving the lifestyle quality for both Luanda and its inhabitants. 

[ PA RTN ER S RE P ORT ]

ALMOST OUT OF

THE DESERT?

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

Figures are up, albeit slightly, for Portugal’s shopping centre retailers for the third quarter running. Could shopping centre retail be out of the desert? Not yet, but the future looks more promising says António Sampaio de Mattos, President of the Portuguese Association of Shopping Centres (APCC).

W

hen in April 2012 I was invited to contribute to this prestigious publication I wrote on what I understood to be the best way of expressing the political, economic and social moment at the time.

last summer, which set back the Government and, worse than that, undermined a certain degree of confidence that the markets were already starting to show.

salvation” to be held back and I agree with other opinions expressed lately that we run the risk of being governed by the judges of the Constitutional Court. For this reason, I see the urgent necessity to push ahead with constitutional changes; an attitude that should have been immediately adopted the moment that the ‘troika’ came to Portugal.

We shouldn’t, however, blame the government too much, which despite a certain disorder, has managed to keep The metaphor Desert Allegory basically to the commitments imposed on us; focused on the outlook that we and we shouldn’t forget that it inherited expected for the medium-term, a situation without precedence.

We are, however, witnessing a turning whatever the direction or speed needed point. A turnaround in the economic to reach the outer limits of this “In the shopping centres sector too downturn, albeit modest, is being felt, allegorical desert in which we all found more positive performance can be seen which leads us to believe that we had ourselves in. from the footfall and sales data, already hit rock bottom at the although modest, it is evidence of a beginning of 2013 and that we’re What I meant and mean to say from turnaround, which is remarkable…” beginning a slow period of growth. this tale can now be understood. I want to above all stress that despite being But if we are not closer to the end of There are various signs that seem to closer to the the border, we are the desert, then that is down to two key point to this, particularly the continuing to trek through what I fundamental aspects: the unions, unemployment rate which has now referred to as inhospitable territory, not manipulated by well-oiled party begun to fall, reaching the level it has wanting to say with this, however, that machines, ones which are hopelessly 13 months ago. we’re lost. In fact we know full well out-of-date and continuously drag the where we want to go. country’s productivity capacity down; In the shopping centres sector too more and a Constitution open to positive performance can be seen, from The road to here has been full of trials contradictory interpretations on the the footfall and sales data, although and tribulations and I’m not going to fundamental issues of expenditure cuts modest, it is evidence of a turnaround, drag up what happened in the which are so absolutely necessary for which is remarkable, according to the meantime here. I’d just like to stress slimming down the State apparatus. most recent information released from that we shouldn’t forget to mention the the Portuguese Shopping Centres herculean effort that all Portuguese “If we are not closer to the end of the Association. made in striving to turn Portugal desert then that is the fault of the around. unions and the Constitution...”

The indices have already shown growth for three quarters running, after two By the same token, we shouldn’t forget In my opinion it is these factors that years of falling. Let’s hope that situation the political upheavals that took place have led to our goals for a “national continues!  | 29

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Sonae Sierra – a global operator and European success story Sonae Sierra is today one of the world’s foremost international shopping centre specialists. A global success story, the Portuguese company has superbly succeeded in penetrating markets in Europe, Latin America and North Africa, providing high-quality seamless shopping centre project know-how both alone and in partnerships from conception, development and construction to completion, leasing and management.

Sonae Sierra – there every step of the way.

30 | Retail Formats

SUCCESSFUL EXPANSION IN EUROPE AND BRAZIL

Worldwide Sonae Sierra owns 49 shopping centres with a total GLA of 2.0 million m² in Portugal, Spain, Italy, Greece, Germany, Rumania and Brazil. Elsewhere in the world, in countries like Croatia, Turkey, Morocco, Algeria and Colombia, it has used its extensive know-how of the shopping centre industry in the investment, development, leasing and property management of shopping centres for clients through its integrated services solutions to third parties.

At present Sonae Sierra manages and/or lets 85 shopping centres with a market value of over €5.8 billion and a total GLA of 2.4 million m² with about 8,500 tenants.

In 2012 the company saw a footfall of 426 million at the shopping centres it manages. Currently it has five projects under development, including four for clients, and five new projects in the pipeline.

TURKISH DELIGHT – SONAE SIERRA ENTERS TURKISH MARKET Sonae Sierra has entered the Turkish market with the creation of Sierra Reval (photo in the right top page), the shopping centre specialist’s service provider company in the Turkish market offering development, management, and letting services to third parties Sierra Reval gathers the best of Sonae Sierra’s international Shopping centre know-how with the local market knowledge of the Reval team, which has been providing services for over 20 years in Turkey and covers the country as a whole.

With 10 service contracts country wide – from Development to Property Management and Leasing services – Sierra Reval is responsible for a portfolio with a GLA of over 215,000m². These include Shopping Centres between 12, 500m² to 66,000m² GLA for which Sierra

Reval will present services solutions aiming to create continued value to its clients, by minimizing costs and risk while offering income growth potential and capital value.

The Turkish shopping centre market continues to grow at sustainable rate thanks to the increasing purchasing power from the population.

Some 43% of the country’s population is under 24 and another 43% is between 25 and 54, making it one of the most popular destinations for international retailers and investors – including private equity firms.

NEW PROJECTS – SOLINGEN, GERMANY

shopping mall for 270,000 people in Solingen.

With a GLA of 29,000m², 70 shops and a food court with 16 restaurants it provides a modern and comfortable shopping experience for residents in the North Rhine Westphalia part of the country.

Opened in October 2013, this €120 million project has provided an employment boost to the area in creating around 500 direct new jobs.

The Hofgarten Solingen Shopping Centre is a 50/50 joint venture project of Sonae Sierra and MAB Development.

SONAE SIERRA AND MAB DEVELOPMENT INAUGURATE HOFGARTEN SOLINGEN

In the first week after the opening, Hofgarten Solingen has already attracted about 350,000 visitors from the town and the region, attracted by Hofgarten Solingen Shopping Centre its wide selection of retail, service, and (photo in the top left page and pag.32, in gastronomy venues from 86 brands the top page) is a new downtown spread out over three levels and | 31

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including a 600 space car park. Some of the main anchor tenants are Edeka, H&M, Saturn and Spiele Max. Also dm drugstore, shoe retailer Diechmann and fashion retailer TK Maxx.

The Hofgarten Solingen’s architecture is inspired by the theme “Industry, Fashion, Nature” and the regional peculiarities found in Solingen. This means its historical significance as an industrial site and its location in the green Bergische Land. The industrial theme is conveyed inside the shopping centre and prominently displayed on its exterior as well: a metal scarf is integrated in the façade. The nature design aspect is revealed by the leafy exterior wall and a nature motif while inside the Food Court is reminiscent of a green garden.

Sustainability is a key factor in the development of the Hofgarten Solingen and the result of this commitment are ISO 14001 and OHSAS 18001 certifications during construction – a dual certificate for a shopping centre development and the first of its kind in Germany.

NEW PROJECTS – BUCHAREST, RUMANIA SONAE SIERRA AND CAELUM DEVELOPMENT START PARKLAKE

Sonae Sierra and Eastern European Real Estate developer Caelum Development will start development in December on the new ParkLake shopping centre in eastern Bucharest. The shopping centre represents an €180 million investment with opening slated for 2016.

70,000m² GLA with around 200 shops and 2,600 underground parking spaces. The centre will offer a unique, environmentally friendly design and a distinctive range of leisure and sports facilities.

ParkLake received its planning permission in September 2013, while the tender for Excellently located, ParkLake will only construction has been put out with work be a 10 minute drive from the city due to start in December 2013. centre, while the location enjoys good public transport including bus, tram ParkLake will offer high quality retail in a and metro services, serving a primary 32 | Retail Formats

catchment area of over 500,000 inhabitants.

ParkLake will be a sustainable shopping centre, designed to fulfil the most rigorous and demanding quality requirements, in terms of comfort, safety and environmental efficiency, adopting solutions to reduce electricity and water usage as well as maximizing waste recycling during construction and operation. 

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Efromovich proposal is

Good for TAP

TAP President Fernando Pinto at the American Club

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We’ll be increasing our range of services, even to the same destination; multi-destinations for some places; more modern and improved aircraft on other routes and new routes and destinations altogether…

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Colombian tycoon TAP President Fernando Pinto said that the proposal from Efromovich was strategically good for the airline at an American Club of Lisbon luncheon in October TAP President Fernando Pinto admitted that the proposal put forward

by Colombian tycoon German Efromovich to purchase the Portuguese national flag carrier was “strategically a good investment for TAP” in terms of synergies and growth in other hubs.

Speaking at the Sheraton Lisboa Hotel & Spa he said that the proposal, which had been rejected by the Portuguese Government in 2012, was a “good one” for the “growth of hubs and the interlinking of the same”.

The TAP President also said that this was

the opinion expressed by the airline in its report which was presented as part of its privatization process.

When asked about which strategy the airline should take in the near future given the current economic uncertainty, Fernando Pinto said that TAP would “surprise the market in 2014” with the number of new possibilities that would be introduced for both staff and passengers.

“We’ll be increasing our range of services, even to the same destination; multi-destinations for some places; more modern and improved aircraft

on other routes and new routes and destinations altogether,” he promised.

Fernando Pinto added that in 2014 TAP will offer its passengers improved ‘equipment” meaning planes, new destinations and a wider choice within existing ones with the airline company taking receipt of two new long haul aircraft and four new medium haul planes.

TAP also announced that it will beef up its services with more flights, starting in the spring, to Rio de Janeiro, Salvador, Belo Horizonte, Porto Alegre and Natal.

To Brazil alone the TAP network will have 82 flights a week from 2014.  | 33

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Dreaming big and delivering

UNIQUE BRAND CONCEPTS VICTÓRIA FERNANDES | Sociologist

Retailers are faced with the challenge of engaging customers on more than just products and price.

They must make shopping on all channels a more stimulating and satisfying experience. Enhancing brand concepts and experiences no matter what or where is critical to delight, entertain or surprise the increasingly indifferent consumer – according to Mintel over 50% of European shoppers aim to get away from stores as fast as possible.

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etail is changing from Big Boxes to Small Boxes to Digital but regardless of size, the winning stores of the future are those that help people to enrich their lives, and are more than a place to acquire merchandise. In fact, if the store just fulfills a specific product need then it’s just transacting and any e-tailer can do that.

strategies (trying to positioned themselves better or differentiate) to maintain profitability, such as adding grocer-ants, expanding ready-made foods lines, remerchandising centre stores and appealing to global tastes.

However the majority of unit growth is coming through small stores. Leading retailers across the globe are experimenting with smaller format stores, and focusing their attention on developing a multi-format strategy that now starts at the bottom.

The ‘return to local’ As consumers become time sensitive and less flexible they are less willing to plan ahead, as a consequence the focus is shifting from trolley shopping to basket or top-up shopping. Two other trends are fuelling this more immediate shopping need. The first is a growing interest in the freshness of food, the second is the renaissance of ‘community’, in which major retailers seek to position themselves as the heart of the community. The retailer responsible for generating the most buzz in this respect is the UK supermarket giant Tesco, the world’s third largest retailer. In the UK, department store chain Debenhams is enjoying considerable success with its format called ‘Desire’. In the DIY category Home Depot, America’s largest DIY retailer, is currently trying out its version of the neighbourhood format.

The small format debate also raises the interesting issue of brand and subbranding. For instance both Wal-Mart (Walmart Express) and Tesco use the post-fix ‘neighbourhood’ to reaffirm their local credentials. Canada’s largest retailer of auto parts and sporting goods has launched its new pilot format Canadian Tyre Express.

The leading retail stores aim to develop a high-quality relationship in which customers feel a sense of commitment and belonging. Brand strategy (how to integrate a virtual and physical Reinventing the traditional store experience in ways that create value) and powerful brand concepts are According to the Mintel research firm, leading the way. online retail sales in Europe are expected to double to €323Bn by 2018. In this Market saturation levels in the US and context, bricks-and-mortar retailers are UK leave little room for more big boxes. struggling.

Yet many retailers operating in these markets are pursuing more effective Experts have different opinions, yet all 34 | Retail Formats

agree on the importance of traditional stores for consumers’ enthusiasm for shopping. As former Apple executive, Ron Johnson stated: “physical stores are still the primary way people acquire merchandise and I think that will be true 50 years from now”, adding “today the Apple Stores are the highest performing stores in the history of retailing – they succeeded not because we tweaked the traditional model. We reimagined everything. We completely rethought the concept of try before you buy”.

These days there is an intense effort to reinvent the traditional store as many retailers realize that rather than close doors, they can sustain them by giving brand reworking that often includes a growing trend: creating a brand concept (or a story) to engage and involve a consumer in the shopping experience.

This trend may bring with it interactive, intuitive and futuristic elements, such as virtual shopping screens, audio/video presentations, QR code integration and even robotic store displays.

As Interbrand points out in its Best Retail Brands 2013 report: “The store, as the heart of the brand and its emotional centre cannot be starved of investment and innovation or appropriate levels of design, media and technology. It needs to be the showcase for interesting new collaborations to keep things exciting,

whether it’s a luxury jeweller or a humble dollar store.”

British retailers have gone out of their way to make a lasting impression on today’s consumers. One novel approach designed to stop shoppers in their tracks was UK department store Selfridge’s store-wide concept “No Noise” ( January 7th to end of February this year). In an initiative that goes beyond retail, the project invited shoppers to celebrate the power of quiet, see the beauty in function and find calm among the crowds. Now that’s what you call retail therapy!

Iconic British brand Burberry, on the other hand, has turned its Regent Street store, housed in a 192-year-old London building, into a futuristic model: a “living website”, that “brings our digital world to life in a physical space for the first time, where customers can experience every facet of the brand through immersive multimedia content exactly as they do online”, said Burberry CEO in a company statement. It’s a one-of-a-kind digitally advanced operation that many consider emblematic of the next wave of stores to compete in an online and increasingly mobile world. For its Chicago store it hosted a unique local event that continued its theme of “retail as theatre,” meshing digital, entertainment and fashion in a seamless experience. The store also boasts its first beauty consultation counter in North America.

UK-based Marks & Spencer recently installed 10 virtual mirrors in their retail stores to coincide with their virtual mirror application available on their website. Consumers are able to see how they look with any combination of cosmetics and nail polish before making a purchase.

The Nike Fuel Station store showcases

accelerated during the economic downturn as retailers, shopping centers and malls desperately look for new ways to remake themselves to attract the New Consumer.

how Digital POS (Digital Point-of-Sale technology) implemented in-store is revolutionising the retail experience.

Meanwhile small retailers are using digital in innovative ways to reinvent the shopping experience. In Washington, for example, a tiny store called Hointer is a revolutionary clothing store targeting men, based on the theory that “men don’t like shopping”. The result is a store that allows men to shop quickly with the help of their smartphone. By downloading the Hointer’s app on the shopper’s android or iPhone, the shopper can try on clothes and place them in a virtual shopping cart.

Since the inception of Nike Town, there has been an explosion of similar outlets in London and around the globe, leveraging the idea of ‘Retail-tainment’ to boost in-store traffic. On London’s Oxford Street, the idea behind the Disney Store is less of a shopping experience, and more of an opportunity for consumers to escape from their everyday lives and enter a magical wonderland.

In London’s Regent Street there are several examples of the ‘Retailtainment’ concept: walking into Anthropologie there is a living wall of green plants irrigated by rainwater collected on the roof, and candles are lit every day to “enhance customers’ sense of the brand” and imposing art installations line the store; the giant Apple Store, famously more like showrooms than stores, features a These are just some examples that show studio for creative advice and a 64-seat the way in which retailers are reinventing theatre for workshops, events and their stores, mostly with the help of demonstrations. Meanwhile technology, and often with the Abercrombie & Fitch (and sister brand integration of e-commerce, but always Hollister) use half-naked greeters and enhancing brand concept. Many booming music to create an immersive high-end and historic retailers are not shopping experience that’s more like a adapting to the new age due to cost – nightclub than a shop. but there’s also merit to being old fashioned. In fact there are enduring One of the most successful and best values that many retailers have on the known brand stores in US is the side of being personable, people-driven American chain Girl Place, where girls rather than just tech-driven. and their mothers can dine with their dolls, take them to the doll hair salon, Retail-tainment pose for a picture with them in the photo studio, and of course, shop.

Retail-tainment (first coined by American sociologist George Ritzer), is The money spent on these playhouses is the concept of adding entertainment and undoubtedly high but offline shops have experiences to the retail mix. The trend realised they have to do something else started a number of years ago but has other than simply sell products.  | 35

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Bureau Veritas

Guarantees and challenges in the supply chain

RICARDO FERRO | Director Business Development, BUREAU VERITAS

With the increasing complexity of doing business in an international context it is not easy confirming to the standards and legal requirements in different markets. That’s where a specialist like Bureau Veritas comes in say Director Ricardo Lopes Ferro.

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Entities like Bureau Veritas enable companies to focus on their main core activities leaving issues of standards compliance in the hands of experts.

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hese days the demand for safety and security in when supplying products in significant quantities throughout the year, the demand for competitive prices and the offer of “new and/or international products” has made the supply chain increasingly more complex to manage than it had been a decade ago.

So companies have had to develop supplier evaluation and control methods that are consistent and harmonised regardless of the part of the world where they are actually produced while achieving something that for them is difficultto know and check: the legal compliance in the country of origin and in the destination country/countries.

A wide but at the same time specific knowledge of each market together with far-flung purchasing sites and the emergence of new suppliers has made this impractical, even for those big companies that have their own teams to ensure the qualified control of its supply chain.

It is in this context that international companies that check that products conform to standards have widened their services so as to be able to equally help organisations in their purchasing processes, auditing

”

potential suppliers, carrying out analyses and tests on products so as to provide confidence in guaranteeing the quality of the purchased product, as well as complying with applicable legislation in the countries of origin and destination with a cost efficiency that is impossible to replicate internally within companies.

Activities such as factory controls, inspection at source, pre-embarkation inspections can make the difference in guaranteeing Quality in the supply chain.

Also the other vast array of activities, such as legal compliance evaluation, mystery client, laboratory activities on products or certification and supplying instruments that support the guarantee of a solid and consistent supply chain with the desirability of establishing relationships in partnership that all, in one form or another, want.

to focus on its own main activities and manage their network through independent and consistent evaluations that minimise possible focuses of misalignments that may occur regarding the performance of the same.

Therefore the option of having a partner, such as an independent compliance evaluation entity, enables goods to be inspected, checked and certified, as well as doing the same for projects, products of systems, in accordance with internal or external references, so as to issue a compliance report.

Markets such as the agricultural-food, construction, energy, industry, services, telecommunications; among others, are sectors that already have had internationalisation processes for some years.

The activity of an independent compliance evaluation entity may The specialisation of “Core” activity imply, for example, checking the companies has led to a significant different phases of building increase in the number of suppliers to construction, trials and tests on an organisation, as well as a greater materials, ship inspection, controlling dependency on its network of the environmental impact of an suppliers, without this increase, industrial premises, certifying however, compromising the solidity products and systems. and confidence of their solid supplier networks.

And depending on the challenges set out, choosing the right partner in Entities like Bureau Veritas enable the which one can have confidence is evaluation of the performance of this vital for the success and sustainability network, permitting the organisation of operations and business.  | 37

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1

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5th Annual Lisbon Office Market Property Consultants’ Photo Report

B.PRIME and Cushman & Wakefield (C&W) organise the 5th annual meeting of Lisbon office market property consultants at the Étoile building at 240 Avenida da Liberdade in Lisbon in October. All the main companies were represented at the get-together which was sponsored by the building owners Largetoile.

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1. DUARTE OLIVEIRA | Aguirre Newman • ANA RITA CARROLO | Aguirre Newman • EDUARDO FONSECA | Aguirre Newman 2. JORGE BOTA | Managing Partner, B.PRIME 3. CARLOS OLIVEIRA | Cushman & Wakefield • TIAGO TREZENTOS | Jones Lang LaSalle • ANDRÉ ALMADA | CBRE • FRANCISCO VASCONCELLOS | Cushman & Wakefield • PAULO HENRIQUES | B.PRIME 4. CARLOS OLIVEIRA | Cushman & Wakefield • JOANA GOUVEIA | WORX • PEDRO SALEMA GARÇÃO | WORX | 39

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António Saraiva at the International Club of Portugal CHRIS GRAEME | Photo Report

The President of the Portugal Industrial Confederation (CIP), António Saraiva, addressed the members of the International Club of Portugal in October at the Fontana Park Hotel on the subject of “Portugal and the Delayed Imperative for Growth” in which internationalisation of Portugal’s companies continues to be paramount.

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1. MANUEL RAMALHO | President of the ICPT • ANTÓNIO SARAIVA | President, Portugal Industrial Confederation (CIP) 2. MARGARIDA SOUSA PEREIRA | Lawyer 3. JOÃO RENDEIRO 4. LUIS PINHO 5. ANTÓNIO GONÇALVES | Lawyer • JOÃO ALBUQUERQUE • MARGARIDA SOUSA PEREIRA | Lawyer • LEONEL NEVES • MANUEL RAMALHO | President of the ICPT • GONÇALO CARRILHO • SUSANA VIEIRA | Lawyer • CHOI MAN HIN • ANTÓNIO RUIVO • PAULO FREITAS LOPES 6. JOÃO ALBUQUERQUE 7. CHOI MAN HIN 8. MANUEL POMBO CRUCHINHO 9. JAIME FERNANDES | Europredial 10. JOAO RODRIGUES | President, Iberol 11. GUSTAVO FORMIGA GOUVEIA | 41

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FUNDBOX

launch at SIL project 55 Casal Ribeiro Avenue Photo Report

Work on a modern housing and commercial investment fund project in the heart of Lisbon’s busy Saldanha shopping and business district is due to start in 2014.

Will create affordable housing for rent and commercial properties will move ahead next year in a â‚Ź10 million investment scheme. The project is integrated into the Santa Casa Closed Real Estate Investment Fund managed by Fundbox.

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1. MANUEL GRAÇA DIAS • RUI ALPALHÃO | Presidente da Comissão Executiva, FundBox • EDUARDA NAPOLEÃO 2. CLEMENTINA BARROSO • CLARA RAPOSO • CARMEN SANTOS 3. TIAGO MATTOS AGUAS • JORGE VILARINHO • LUÍS GASPAR 4. RUI ALPALHÃO | Presidente da Comissão Executiva, FundBox 5. MARGARIDA ANTUNES | Lawyer 6. JOÃO SAFARA | Vogal da Comissão Executiva, FundBox 7. MANUEL MONTEIRO ANDRADE • SÉRGIO CATITA | Architect 8. JOAQUIM MEIRELLES | Vogal da Comissão Executiva, FundBox 9. CARLOS VAZ ANTUNES • RICARDO AMANTES 10. ANDRÉ CORREIA • SÉRGIO CATITA | Architect • MANUEL GRAÇA DIAS | Architect | 43

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Américo Amorim is “in bed with” Isabel dos Santos says German entrepreneur Wolfgang Kemper at the American Club of Lisbon

CHRIS GRAEME | Report

Portugal’s lack of top-calibre political leaders and a “them and us” attitude is what’s keeping the country back said German entrepreneur and Filkemp CEO Wolfgang Kemper at the ACL

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This was the opinion of long-standing German entrepreneur Dr. Wolfgang Kemper who addressed the American Club of Lisbon in October on “The Future of Germany and its impact on the European and Portuguese Economy.”

Wolfgang Kemper said that Portugal’s political leaders were badly paid while many economic leaders were only thinking about lining their own pockets.

“It’s no secret that Américo Amorim (a Portuguese fuel tycoon) is “in bed with” Isabel dos Santos (daughter of the President of Angola) when one considers that she holds the majority in fuel company Galp,” he said figuratively. Wolfgang Kemper added that these days no one could say where Isabel dos Santos’ money came from, no

one seemed “to care if the money coming into Portugal” was “robbed or not”, so long as it did come to Portugal rather than Monaco or an offshore account in the Caymen Islands, he said, alluding to Portugal’s role as a money laundering centre for ill-gotten African wealth.

Salazar idea of being “Proudly Alone” in Europe despite the fact that she was a supposed active member of the European Community. “Portugal still insists on referring to “them and us”. “Even today, after all these years I am still sometimes treated as an outsider, one of “them”, instead of being recognised as one of “us”.

“Portugal is a fantastic country and could go far if only it wouldn’t insist on being “proudly alone”, he warned. 

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Portugal’s lack of good leaders is one of the country’s

biggest problems

Wolfgang Kemper at the American Club of Lisbon CHRIS GRAEME | Photos

German entrepreneur and Filkemp CEO Wolfgang Kemper didn’t spare the horses in his criticisms of Portugal’s weak leadership which was keeping the country back from successfully developing. He was talking on “The Future of Germany and its Impact on the European Economy at the Sheraton Lisboa Hotel & Spa in October.

1. JOHN SCOTT JOHNSON | ACL Treasurer • WOLFGANG KEMPER | CEO, Filkemp 2. VALTER ALCOFORADO BARREIRA | CEO, Knowing Counts • WOLFGANG KEMPER | CEO, Filkemp • CURTIS M. STEWART | Vice President, ACL 3. CRISTINA CAMILO | Executive Secretary, ACL 4. RODRIGO QUEIROZ VALÉRIO | Consultant 5. WOLFGANG KEMPER | CEO, Filkemp • CURTIS M. STEWART | Vice President, ACL 6. SYLVIE • BARBARA GUEVARA | Executive Director, ACL | 45

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EXPO REAL 2013 Positive outlook for the market The strong property markets in Central Europe, and in Germany in particular, have prompted a positive mood at EXPO REAL, despite differences in development between individual countries. For the 36,000 participants in EXPO REAL, the 16th International Trade Fair for Property and Investment, the focus on all three days was again firmly on networking and business.

Business is certainly what EXPO REAL is all about for Torsten Knapmeyer, Managing Director of Deka Immobilien and WestInvest: “We use the trade fair to exchange news and views with our business partners about the current situation in the industry. The numerous events at the trade fair also afford the opportunity to get an idea of what other market participants think about how the property markets are developing.

Traditionally, EXPO REAL has proved to be a good place to discuss transactions.”

Jan-Willem Bastijn, Head of EMEA Capital Markets at Cushman & Wakefield, UK, comments: “There was a positive atmosphere at EXPO REAL 2013 – we are on the brink of a turning point. The mood is continuing to improve and we are seeing an increased willingness to do business right across the board.”

Teresa Dreo, Business Unit Manager Real Estate Germany at Unicredit Bank AG, Germany, agrees: “For us as a property financier, EXPO REAL, the International Trade Fair for Property and Investment, is the most important trade fair bar none. With our focus on Central and Eastern Europe, especially Germany, we see EXPO REAL as the ideal networking platform for these markets. The continuing keen interest in German property is clearly reflected in the positive mood at the trade fair and contributes not insignificantly to its overall success.”

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This year, as well as the classic markets of Central and Western Europe, many countries from Eastern and Southeastern Europe were also represented.

EXPO REAL, the 17th International Trade Fair for Commercial Property and Investment, is being held at the Messe München exhibition center from October 6 to 8, 2014.

It is a key networking event for interdisciplinary and international projects, investment and finance. EXPO REAL caters to the full spectrum of the property sector, offering an international networking platform for the important markets of Europe, through to Russia, the Middle East and the US. The show’s extensive conference program, featuring some 400 speakers, gives participants valuable insight into the latest trends and innovations in the property, investment and finance market.

Further information: www.exporeal. net and www.blog.exporeal.net

Commenting on this, Irina Babyuk, Chairwoman, Committee for Investment of St. Petersburg, Russia, said: “In view of the increasing competition for investors among regions and cities, it is necessary to develop their investment potential.

As an attractive business platform, EXPO REAL provided St. Petersburg with the opportunity to demonstrate this potential. During the trade fair we presented the city’s projects which aroused interest among European companies. It is important to note that we have signed two agreements worth 1.7 billion euros.”

The presence of the entire value-added chain in the property sector impressed many first-time exhibitors, too.

Heiner Franssen, Managing Director, LIC Asset Management GmbH from the US, was one of them: “EXPO REAL offered us an exceptional opportunity to meet with seniorlevel contacts, critical to our business, across every sector of the international real estate investment market including service providers, consultants, investors, and lenders.”

Georg Schlegel, Managing Director, Choice Hotels Europe and one of the many new exhibitors taking part in

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The positive mood of so many real estate professionals attending EXPO REAL in only three days encouraged us to now already start the preparations for our seventh participation in EXPO REAL. For us, EXPO REAL is really the place to be!

the “World of Hospitality” joint stand, was also enthusiastic: “My impression is that the stand enjoys very high acceptance and has established itself as the rallying point for the industry at EXPO REAL. For us it is an opportunity to take part in EXPO REAL in a very cost effective way.”

For Barbara Ettinger-Brinckmann, Chair of Germany´s Federal Chamber of German Architects, the conference forums were a real highlight. She is keen to see architects play a bigger role here: “EXPO REAL is an important trade fair, which is a must for architects and town planners. We should become even more closely involved because everything that is center-stage here would not be possible without our planning input.

That is why the forums are very important for us – they stimulate further thinking.”

This year´s success is already prompting some exhibitors to think ahead to EXPO REAL 2014. One such is Christa Thijssen, Director of Holland Property Plaza, from the

The next EXPO REALtakes place from October 6 to 8, 2014 in Munich Further information: www. exporeal.net and www.blog. exporeal.net

Netherlands: “The positive mood of so many real estate professionals attending EXPO REAL in only three days encouraged us to now already start the preparations for our seventh participation in EXPO REAL. For us, EXPO REAL is really the place to be!”

Out of the total of 36,000 participants, 18,600 were trade visitors (2012: 18,911) and 17,400 were representatives from the exhibiting companies (2012: 17,238). The top ten among the 68 countries of origin among the visitors were, after Germany, and in this order: Great Britain, Austria, the Netherlands, Switzerland, France, Russia, Poland, the Czech Republic, the US and Luxembourg.

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for exhibition space are collected in line with agreed standards and independently audited on behalf of the FKM (Gesellschaft zur Freiwilligen Kontrolle von Messe- und Ausstellungszahlen), a society for the voluntary monitoring of fair and exhibition statistics.

MESSE MÜNCHEN INTERNATIONAL Messe München International is one of the world´s leading tradeshow companies. At the Munich location alone, it organizes around 40 trade shows for capital and consumer goods, and key high-tech industries. Each year over 30,000 exhibitors and around two million visitors take part in the events at the Messe München exhibition center, the ICM – Internationales Congress Center München and the MOC Veranstaltungscenter München. The leading international trade fairs of Messe München International are all FKM-certified, i.e. exhibitor and visitor numbers and the figures

In addition, Messe München International organizes trade shows in Asia, Russia, the Middle East and South Africa.

With nine associated companies abroad– in Europe, Asia and Africa – and over 60 foreign representatives actively serving more than 90 countries, Messe München International has a worldwide business network.

The Group also takes a pioneering role as regards sustainability: It is the first trade-fair company to be awarded energyefficiency certification from the technical inspection authorities TÜV SÜD.  | 47

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Stature and quality!

Mercedes E 220 CDI station

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he Stature, quality and dynamic road holding are the characteristics that best define this huge Mercedes model.

Just like the previous model, here is a limousine version with a 250 CDI engine which has the same basis plus a bi-turbo capacity. The E Station with its 220 CDI engine will pleasantly surprise with its excellent performance, despite its 170 HP that drives the almost 5 metres length of this Class E, it managed to attain a speed of over 210 kms/h in less than 9 seconds from 0-100 kms. Once again we recommend the brilliant automatic 7G tronic gear box that one has

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become used to from the Mercedes which demonstrates a binomial of excellent performance with a mixed fuel consumption below 7 litres.

In this model a mature example of the family shooting brake is to be found which can easily carry five adults and two children on a journey in great comfort. Its carrying capacity is immense and the quality of its interiors is unquestionable.

This model’s restyling is very positive, its outlines make it more sober while at the same time lending it a more sporty appearance thanks to its tail end.

Price: from â‚Ź60,900

The Sporty Lightweight Mercedes SL 350

Bags of fun!

Mercedes CLA 200

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he mini CLS, from the CLA, has a 1.6 litre diesel engine and a 156 CV horsepower, making this the smallest and most fun car in the Mercedes range.

While far from being a purely sports model, it easily achieves a maximum speed of 230 Kms/h and goes from 0-100 kms in 8.9 seconds. It’s exterior look with full-tested AMG Kit unit is more for appearance sake than true engine, despite looking interesting.

For those who don’t like diesel engines, Mercedes has managed to meet in the middle with some contention in the accelerator below 7 lts, but with a hoarse noise always perceptible from the engine.

version requires an excellent use of the automatic 7G tronic gear box, faster than the diesel version.

It can be said that in terms of consumption the petrol engine isn’t that far behind the CLA 220 CDI diesel version which we test-drived in the previous model.

Its compact space doesn’t exactly make it the right car for a chauffeur drive given the reduced space between the seats, but works admirably for a young family who want to ride in style.

From its lines both inside and out this compact coupé always looks different and makes an impression wherever you go.

The big difference lies in the gear change up and downs, the petrol

Price: from €36,740

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The Sporty Diesel Mercedes E 250 CDI

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he restyling in this E Coupé strengthens this model’s position as a sports car to be reckoned with. When the E 250 CDI goes by no one is left indifferent. In this case it is not just the appearance but the soul of the 250 CDI’s engine, a bi-turbo 204 HP that is pure sports.

This car easily reaches a speed of 100 Kms/h in just 7.3 seconds and attains a maximum speed of 247 kms/h. All this performance is also down to the sophisticated automatic coupled 7G Tronic Plus gearbox in a car which at more moderate speeds burns 7.3 litres of fuel at 100kms.

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This is a car that gives pleasure in all senses, from its driving position, the seat has more adjustments, everything is within easy reach of the dashboard despite being closer to the ground than in other versions of the Class E. Traction control is always firm even at during exaggerated driving conditions, correcting road handling errors and a tendency to swerve at the back. For lovers of strong emotions and those who don’t need bags of room at the back to carry adults, this model is a pleasant surprise.

Price: from €58,260

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MIPIM MEANS PROPERTY INVESTMENT MIPIM, the world’s leading real estate investment trade show, brings together the most influential players from all property sectors. For 25 years, MIPIM has been offering unrivalled access to the greatest number of development projects and sources of capital worldwide.

MIPIM is a fantastic platform and a great way to kick-off the year Dietrich Heidtmann, Global Head IR & Capital Markets, AXA Real Estate Investment Managers

20,000 delegates 7,500 companies 19,000 m² exhibition surface 80 countries 4,300 investors 3,000 CEOs & chairmen

Bustling international exhibition floor Expert-led programme of conferences Exclusive networking platform To benefit from a special rate, please contact Laurianne Dicecca, laurianne.dicecca@reedmidem.com or visit our website www.mipim.com