Statement nr.1 2008 by Scripta Communicatie B.V.

Statement Statement Magazine is published on behalf of ING Real Estate Development. The magazine is distributed to ING Real Estate's international business relations.

Publisher ING Real Estate Development Schenkkade 65 2595 AS The Hague the Netherlands

Editorial Board ING Real Estate Development, Scripta Media BV

Production Scripta Media BV Amsterdam, Loes van Dokkum, Kasper Marinus, Peter van Vuuren

Art direction and design Freddy Vermeulen Amsterdam (assistant: Ineke Huibregtse)

Lithography Grafimedia Amsterdam

Print WC den Ouden

Translation Anne Thistleton

More information If you have any feature ideas or comments on the content of this issue, or if you would like to receive additional information, please contact us at: Statement@ingrealestate.com or www.ingrealestate.com

The fifth dimension In this issue of our corporate magazine for ING Real Estate Development we touch upon a growing business for developers: area development. While sustainable development of urban regions is high on the public agenda funds are limited, so public authorities wishing to realise integrated transformation of urban areas are looking to collaborate with private players. We believe we are in a unique position to take this opportunity to make area development one of our core businesses besides retail centres and residential developments. Our firm financial backbone, experience of developing real estate in all sectors, and local presence in 11 European countries put us in the perfect position to be that professional, reliable long-term partner public authorities are seeking. At last year’s MAPIC exhibition I was proud to present an overview of our present area development projects and past achievements. The title of this publication The fifth dimension: the art of area development refers to our vision. Because they are often long-term ventures, area developments are concerned with more than the three dimensions and the fourth dimension of time. The essence of area development is the simultaneous development of buildings and the public space between them. Well-designed public space releases the connecting abilities of the area: connecting the different functions within the area creates location synergy; connecting to other areas within the city heals the urban fabric; and connecting the local history and future anchors the area in the public mind. Making these connections over time requires solid collaboration between the stakeholders involved. This vision links to sustainable urbanism, being the starting point for the execution of our sustainability policy. Area developers do not arise overnight. Our portfolio is proof of our abilities, which we are constantly improving by in-company training, staff participation in external educational programmes and learning from working with all sorts of players active in this field. This issue gives an overview of ideas and achievements in the fast-evolving business of area development – from Curitiba to Stockholm – by city officials, entrepreneurs, architects and academics, ranging from culture to waterfronts. As an area developer we are well-equipped to take a leading role in what we like to see as the business of jointly realising envisioned connections. May this issue inspire you to join us in these exciting projects for shaping the future of our urban environment.

Menno Maas, CEO ING Real Estate Development

contents

4 Area development: making the connection between users and uses

10 Branding: Simon Anholt 13, 17, 29, 33 Area development in Stockholm, Riga, Curitiba

and Łódz´ 14 The art of regenerating a place 18 The interview: David Shelton 22 Waterfront regeneration: on the edge 26 The user: Anschutz Entertainment Group 30 A new gateway to Europe 34 The architect: Henning Larsen Architects

39, 47 Items 40 The blurring border between public and private space 42 Expert opinion: Jürgen Bruns-Berentelg, Hilde Blank and Sven Mathijssen 48 Interactive collaboration

through gaming 50 Work in progress: Amsterdam’s second urban stage 55 Column: Pieter van Wesemael 56 Just dreaming: Tracy Metz 03

Making the connection between different users and uses From real estate development to area development

In and around La Grande Arche, La DĂŠfense, Paris various functions are succesfully combined.

In recent years real estate developers have become more closely involved with urban area redevelopment. Together with public authorities and other stakeholders they realise new mixed-use areas in strategic locations. Public space with a high-quality layout serves to connect the diverse functions and users. The subsequent division of tasks and responsibilities between the parties involved is often determined by planning traditions and the locationâ&#x20AC;&#x2122;s distinguishing features. B y J a c o B o e r, p h o t o g r a p hy : Pe t e r H i l z / H o l l a n d s e H o o g t e , G e r t - J o o s t Pe e k , D e t r o i s p o u r J P Vi g u i e r

The waterfront project in Dubai is one of the largest area developments in the world.

t is not so long ago that in Western European countries like Germany, France and the Netherlands the public authorities and private real estate developers operated in two different worlds. Their tasks and responsibilities were neatly allocated: the public operators made strategic plans and elaborated them into urban visions and zoning plans. The real estate developers only came into the picture when the plot prepared for building needed to be furnished with housing, offices or a shopping centre. In recent years that situation has changed in many places. Thanks to globalisation and increased mobility, for example, it is easier for people and companies to switch from one destination to another. Cities have consequently become involved in a permanent competitive struggle for the best jobs, residents and visitors. If a city wishes to remain attractive to new businesses and highly-qualified employees, it needs to invest continuously in that goal. Real estate developers have in recent years become more closely involved in that process. Authorities focused on their core duties and had less money to spare for urban renewal. Spatial projects also became increasingly complex: area developments had to conform to an increasing number of financial, legal and social requirements. An extra complication is the in-town location of many renovation projects: creative solutions are needed when it comes to cleaning up polluted locations or opening up isolated urban neighbourhoods. As a result, real estate developers with vision and nerve were invited to participate in prestigious urban regeneration projects. In many parts of Western Europe strategic alliances between public and private parties have been formed that are characterised by open commu-

The Millennium Footbridge in London, with St Paul’s Cathedral in the background.

nication and the sharing of expertise and experience in successful projects.

Cultural traditions In Southern and Central Europe, too, public and private parties are collaborating more closely on such developments. But there the planning tradition was, and often still is, less developed than in the western part of continent. In recent years, therefore, authorities came to rely even more on the expertise and financial resources of developers and investors. Without these market players, cities like Warsaw and Prague, or even Lisbon and Madrid, could never have made such a rapid transition into economic ‘powerhouses’. When these countries had to catch up, the accent in area development was often still on quantitative goals. The pursuit of maximum return – both financial and in terms of square metres – dominates many negotiations. But as the real estate market comes of age in these countries, the focus will have to shift to qualitative tasks when it comes to in-town sites. Intensive collaboration over a long period on predetermined lines then becomes more important. Despite the fact that the way parties in Europe do business with each other will always be partially influenced by diverse cultural traditions.

Urban fabric For creative developers these complex area development projects present new opportunities and challenges. Not only are good returns to be had, but through their intensive involvement developers also have more influence on the design of new neighbourhoods and

La Confluence in Lyons transforms the area south of Presq’île Lyonnaise into an attractive place to work, live, shop, and spend one's spare time.

More than half the value of individual buildings is determined by the quality of their surroundings

districts. That is important. It is said that nowadays more than half the value of individual buildings is determined by the quality of the surrounding area. Every project is different. But with area development, it generally comes down to making a connection between diverse functions and users. The past is linked with the future and the interests of diverse stakeholders are recognised in integral projects that raise the location’s value. Synergy and collaboration are key to this process. The public space is the connecting factor in every area development. All functions come together here and help to shape the new identity of a neighbourhood or district. With a high-quality layout, the streets and squares have the potential to become a landmark that puts the area, or even the whole city on the map again. It is also what connects the separate area with the rest of the city, integrating it into the urban fabric.

Political antennae Developers who want to act in an integral way, need to be sure of themselves. Every function has its own dynamics and financial requirements. What is more, the fact that decision-making procedures are often poorly attuned does not facilitate investment planning. Moreover, integral area development is a lengthy process. The situation up until now is that years may pass before all parties are in agreement. That requires plenty of financial elbow room and patient shareholders with faith in the project.

Integral area development also requires developers to deepen their knowledge and expertise. They need to be familiar with various disciplines. In a successful area development, knowledge of how cities function is as important as the ability to fathom complex economic calculations or legalese. And in complex projects where everything seems to be connected with everything else they can, if they possess sensitive ‘political antennae’ and use participative methods like simulations, also reach their goal more easily.

High densities There are no success formulas for the challenge facing city administrations and developers. Developing a location means determining anew, each time, how to work together with other parties. Nonetheless, a clear division of tasks and clearly defined responsibilities are crucial for the successful progress of an area development project. In recent years much international experience has been acquired with a diversity of models for working together. The ownership ratios at a specific location together with the area’s position (intown or out-of-town) are decisive factors when choosing a certain type of development model. Furthermore, a city or region’s planning tradition and vision on real estate development influences what form the collaboration takes. City administrations with a wealth of experience in urban planning are reluctant to delegate that task to market players, but in fact they are just in the position to do so.

Birmingham has changed from industrial powerhouse to national commercial centre.

A glance at various large projects on which authorities and developers are currently working reveals how great the differences between area development organisations can be. The French government, for example, keeps strict control over the ambitious La Confluence intown renewal project in the heart of Lyons. Not only does it take care of the land development, it’s also largely responsible for the urban plan and the execution of infrastructure and other major public works. Real estate developers are permitted within the framework of the public plan to develop their real estate on individual plots. Although this scenario gives market players little scope for influencing the final plan, and limits the amount of knowledge and expertise they can contribute, they are enthusiastic about the new district arising at the confluence of the Rhône and the Saône. Here, with a high-density mix of offices, housing and shops, Lyons will have doubled the size of its city centre in little more than 20 years. Refurbished quays and new squares full of strolling residents and visitors will eventually replace the existing distribution warehouses and factories. Spacious parks and green areas will be inviting places to enjoy the sun or pass the time with a good book. With the Musée des Confluences, designed by the famous architectural firm Coop Himmelblau, the city will also have added an ultramodern landmark to its historical centre.

Joint-ventures and concessions In the Belvédère project in Maastricht, the Netherlands, things are done in yet another way. Together with the city administration, a number of market players, including ING Real Estate, are developing an attractive urban district in Maastricht on, among others, the former

site of a leading bathroom accessories manufacturer. A short distance from the historical city centre, it will in 20 years’ time contain around 4,000 homes plus modern offices, shops, cultural facilities and two new parks. Sustainability will play an important role in the project. Because the location is close to a pleasant hilly region, blending the district in with the landscape will also receive extra attention. To get the project off the ground, the developers and the municipality have set up a joint development company responsible for the land development and urban plan. A consortium of two developers will buy the plots prepared for building and execute the proposed schedule of requirements according to the master plan. The intensive involvement of market players guarantees the creation of a realistic plan that can count on support from all major stakeholders. However, with such public-private project teams, spreading the risks and returns evenly and safeguarding both public and private interests is often very time-consuming. And in the event of an economic downturn, the parties have to renegotiate the apportionment of the costs and benefits. But this flexibility also serves to reduce risks, which is particularly important in lengthy, complex projects in awkward in-town locations. In area developments where municipalities grant concessions to market players to develop certain locations, there is less flexibility when responding to new situations. That is not so bad in wellorganised expansion locations on city outskirts. In that case, being able to produce quickly a good and affordable plan, which is attuned to market requirements and meets the municipality’s predetermined boundary conditions comes in handy. Many Spanish cities and regions

The Selfridges building is part of Birmingham’s redeveloped Bullring shopping centre.

have in recent years become converts to this kind of area development. But this development model frequently occurs in Central Europe as well. There, market players are responsible for the complete process, from the signing of the urban plan to the completion of the offices, housing and shops.

Doubling While there is no formula for selecting a project team, the way locations are redeveloped in the UK has its attractions for real estate developers. The country has in recent decades acquired a lot of experience with large projects of this kind, the conversion of the neglected London Docklands into a lively new urban district being the most appealing. In 1981 the authorities set up for that purpose a temporary, autonomous public organisation: the London Docklands Development Corporation (LDDC). Besides the land development its tasks included making general urban plans and stimulating private real estate investment. Together with a number of other public

Hamburg HafenCity is Europe’s largest inner-city redevelopment project.

organisations, in less than 20 years it pumped as much as £3.9 billion into new infrastructure like the Docklands Light Railway and tax rebates for investors. That resulted in more than double the amount in private investments. Granting the necessary permits, though, was still the preserve of the area’s individual municipalities. Partly because of the efforts of the LDDC, this gave London an impressive new urban district with a mix of offices, luxury apartments and shops. More than 90,000 people now work in the former port area and the population of this previously isolated location has more than doubled. Old dock basins have been transformed into imposing marinas, while new car tunnels and the construction of London City Airport have made it much easier to access the area. Meanwhile, the heart of the Docklands around Canary Wharf has developed into London’s second financial centre and base for leading international banks, whose gleaming skyscrapers – the tallest at 235 metres a new record height for the UK – have given the city a different, more self-confident look.

The fifth dimension In large area developments the public space plays a crucial role. It is not just a place where all functions and users come together. It can also be regarded as the connective tissue of a new district or neighbourhood. For ING RE Development therefore the public space is the fifth dimension of area development. The development of individual buildings mainly revolves around the three physical dimensions of length, width and height/depth. And in lengthy projects the time factor will have to be taken into account as a fourth dimension. If spatial investments are also to play a strategic role in cities, the public space is thereby an essential new dimension. Integration, connection and attraction: that is what the design of streets, squares and parks is all about.

Simon Anholt, leading expert on place branding:

‘There are no shortcuts to a better reputation’ A good image is a valuable asset. Place branding expert Simon Anholt tells governments, corporations and developers how they can manage their brand: ‘Places are not like products.’ By Ro b Ha r t g e r s , p h o t o g r a p hy : C h r i s Gl o a g / De Be e l d r e d a k t i e

Branding

hen Simon Anholt first coined the phrases ‘place branding’ and ‘country branding’ 12 years ago, the British press denounced him as the ‘evil priest of globalisation’. ‘People were upset,’ explains Anholt. ‘They assumed I wanted to turn the nation state into a product.’ Anholt stood his ground and confronted his critics: ‘I never meant that you can just “rebrand” Britain, Africa, or any other country or region. That’s ridiculous! There are simply too many factors you are not in control of. Place branding is not the same as marketing. Marketing is about selling something. It is a repetitive strategy. Branding is cumulative; it is about building a positive reputation over a period of time, not about communications – it’s about doing real things to earn that positive reputation.’

The harsh criticism in the British press did not prevent Anholt from building a highly successful career as a branding guru. The Economist dubbed him ‘one of the world’s leading consultants to governments who wish to build global brands’. He has addressed the United Nations, advised multinationals and works with politicians, business and civil leaders of around 15 countries, cities and regions, helping them develop policies, strategies and investments to improve their international standing and reputation. Anholt also founded three global surveys of the reputations of places: The Anholt Nation Brands Index, City Brands Index and State Brands Index.

Self-defence Long before Anholt started his surveys, places carried a brand image. There have always been ‘friendly’ and ‘unfriendly countries’, or ‘good’ and ‘bad neighbourhoods’. Because of globalisation, mass media and the internet, these images have gained in importance. A ‘good’ or a ‘bad’ image can make the difference between a booming economy and economic failure. ‘Taking control of your own image is not a choice,’ says Anholt. ‘It is a matter of self-defence. If you don’t do it yourself, others will do it for you. Your image is an import asset. It has a profound impact on what a place achieves. A good image can make life a whole lot easier, but when you are

‘Branding is not about communications – it’s about doing real things to earn that positive reputation’ stuck with a bad image you constantly have to apologise. Image matters in all possible circumstances.’

True stories Managing a national or regional brand is complicated because of the many stakeholders. The tourism authority may prefer a picturesque, unspoilt and rustic image, while the inward investment board finds this image not very helpful when it is trying to attract investments in local industries. On the smaller end of the scale, when it concerns area development, applying branding techniques is easier, thinks Anholt. ‘The first requirement is that you involve all the stakeholders. Not just the developers, but also the future residents. Try to find out what their aspirations are, and if there is common ground. Look at the surroundings and at the history of the place. Ignoring those factors is dangerous. People may have a certain view of an area and you will find yourself fighting their prejudices. My job is to look at all the evidence, to talk to people and ask: what is possible? What is the real story of this place?’ ‘Places are not like products,’ stresses Anholt. ‘If you want to market a product, you can put together a creative team and tell them to invent a story. You cannot do that with places. Places have a certain truth about them. The story has to be both true and interesting. If the story is cool enough, people will start telling it to each other.’ Although compromises are inevitable when constructing a brand, Anholt warns against too much sophistry: ‘When large sums of money are at stake, it is hard to come up with a story that is not bland. But in the end, an edgier story is more rewarding.’

Unrealistic expectations Place branding has come a long way since Anholt first introduced the concept 12 years ago. But the misunderstandings have

remained. The initial scepticism has been replaced by unrealistic expectations. ‘People expect miracles from branding,’ says Anholt. ‘But there are no shortcuts to a better reputation. The story has to be objectively exciting and has to be demonstrated. In the end, places get the reputation they deserve. You can’t argue with a public image. You have to ask yourself what you have done or failed to do to get an image, and what you can do to change it.’

Area development in Stockholm

B y R o b H a rtg e rs , p h o to g ra p hy : K a re n V l i e g e r / D e B e e l d re d a kti e

Area development is becoming increasingly important in city planning around the world. Every country and every city has its own views.

Mikael Söderlund, vice-mayor:

‘What happens in Stockholm is important to the region as a whole' Vice-mayor Mikael Söderlund was born and raised in Stockholm. ‘I have seen this city change around me,’ he says. ‘When I grew up, Stockholm was located at the periphery of the free world. Now, we are in the centre of the economically important Baltic region, which makes us interesting for investors. Nearly half of the economic growth of Sweden is realised in the Stockholm region. We like to refer to our city as the capital of Scandinavia.’ He is not the only one who sees it that way, assures Söderlund. ‘The other cities in the wider metropolitan area of Stockholm, with a total population of 3 million, understand that what happens in Stockholm is important to the region as a whole. We work together in a regional council to improve the infrastructure, among other things.’ The economic growth of the region has increased the demand for housing and for office space. One of the challenges that Stockholm faces, is to meet

this demand without harming the city’s environment. ‘We have a good reputation when it comes to sustainability,’ says Söderlund. ‘It is important to us to remain a front runner in this field. A good example of Stockholm’s ecological awareness, is the development of Hammarby Sjöstad, an old harbour and industrial area just outside the inner city that is being transformed into an ecologically sustainable urban district. In developing this area, the city works together with water, energy and waste companies.’ In Hammarby Sjöstad, the objective was to halve the energy use through smarter heating systems and better waste management. But Söderlund has increased the stakes: ‘In a couple of years Hammarby Sjöstad will be finished. It is a success, but we have to move on and formulate new definitions of sustainability. The next area we are going to develop will be energy neutral.’ www.stockholm.se; www.hammarbysjostad.se

The former industrial area of the Westergasfabriek in Amsterdam is now being used for various cultural events.

art

The of regenerating a place Culture as a lever for area development Culture does more for a place than bringing in visitors. It enhances the image of an area. What is more, culture can give a location a new perspective and its inhabitants confidence. B y G e r t -J a n H o sp e r s, p h o t o g r a p hy : S i e b e S wa r t / Ho l l a n d s e Ho o g t e , S i mo n M o r a n / iSt o ck p h o t o

or too long we believed that the role of culture in area development projects was just to attract visitors,’ says urban guru Charles Landry in his office at British cultural planning agency Comedia. ‘Take Bilbao in northern Spain. The Guggenheim Museum that was built there has attracted large numbers of tourists over the years. To be sure, the city of Bilbao has to pay $1 million a year to use the Guggenheim name. But still the brand has a high pay-off. Or think of the once gloomy harbour of Glasgow. Thanks

‘F

to the focus on arts along the riverside, Scotland’s biggest city was given the title European Capital of Culture in 1990. Last year Glasgow attracted three million visitors. We now know, however, that culture contributes more to area development than the Bilbao effect.’ Landry knows what he is talking about. In his voluminous bestseller The Art of City Making (London, 2006) he reports on his ongoing study of culture, creativity and cities. Landry and his team have consulted city authorities and planners all over the world, from Adelaide to Zurich. ‘Area development is an art, not a formula. Culture is the key to the regeneration of an area. Of course, culture is a broad concept. It includes both permanent and temporary works of art. Monuments, architecture, museums and performing arts are parts of culture, as well as concerts, fairs, festivals and exhibitions.’ Landry found that culture can do wonders for the development of a location. Culture has socioeconomic effects beyond tourism, like social integration and the growth of creative industries. It can improve a place’s quality of life by offering new facilities for the local community.

New perspective The Belle de Mai neighbourhood in Marseilles, southern France, is a telling example. In 1992 a run-down tobacco factory in this area was converted into a ‘factory theatre’, where artists could give free rein to their creativity. Landry: ‘Little by little, Belle de Mai was developing into a hot spot in Marseilles. The artists in the factory theatre used their local contacts and networks to establish cultural and social interaction points in the neighbourhood, such as community buildings for young people, music training rooms and information centres for minorities. In the wake of the artistic workshops small businesses also emerged: retail shops, designers, bars, restaurants and the like. Culture has given Bell de Mai and its inhabitants a new perspective.’

Confidence The transformation of Newcastle’s Quayside in the northeast of England shows how culture can create a new urban image. ‘Hoping to become European Capital of Culture in 1998, Newcastle joined forces with neighbouring Gateshead in the early 1990s,’ explains Chris Gill, regeneration manager at regional development agency One North East. ‘Unfortunately, Newcastle-Gateshead did not get the title. But the effects of the local investments in culture along the Quayside have been enormous. The Baltic Centre for Contemporary Art, the Sage concert hall and the Millennium Bridge have changed the perception of the city.’ Indeed, within the space of ten years the Lonely Planet-travel guide revised its opinion of Newcastle: the place used to be described as ‘a gloomy industrial city’ and is now heralded as ‘one of England’s must-see destinations’. The photogenic nature of the futuristic cultural objects in Newcastle has generated a lot of free publicity for the city. ‘The regenerated Quayside is just a perfect snapshot for journalists,’ says Gill. He believes that the growing appearance of Newcastle in the international media explains why foreign direct investments in the local economy have risen. Perhaps just as important as the view of outsiders however is what the cultural regeneration tells the people

‘Culture has boosted the confidence of the local population’ living in Newcastle about their own city. ‘Culture has boosted the confidence of the local population. Newcastle is cool again. Young people who might otherwise have moved, now decide to stay in their hometown,’ says Gill. Clearly, this is important in a city that suffered brain drain for many years.

Popular culture Essen in the German Ruhr Area succeeded where Newcastle failed: in 2010 the city will be European Capital of Culture. Klaus Kunzmann, emeritus professor in planning at the University of Dortmund, is glad that Essen won: ‘The title offers opportunities for Essen, in fact for the whole Ruhr Area. The region can finally get rid of its image as a smokestack area. What used to be a place of production gradually became a place of consumption and can now develop into a place of culture.’ Meanwhile, the Ruhr 2010 GmbH has been founded, a publicprivate body that will select creative ideas to make a success of the 2010 event. Many project plans have been submitted already, but not all can be accepted. Kunzmann: ‘I think that’s no problem. What counts is the local empowerment effect. Culture encourages synergy among local parties and the pursuit of common projects.’ Essen has specialised in ‘industrial culture’: the reuse of industrial heritage for cultural purposes. The former mining area Zeche Zollverein, for example, has become a magnet for artists, musicians and designers seeking inspiration from the industrial past. Kunzmann warns against expecting too much of industrial culture: ‘Essen should not focus only on the creative class and highbrow culture. If the city really wants to be a European Capital of Culture, it should interpret culture broadly and not only serve the elite. I hope Essen will also invest in ordinary neighbourhoods where people like popular types of culture, such as folk music and sports. Don’t forget that Essen is still a poor place. If culture wants to be a lever for area development, it must offer something for everyone.’

Gateshead Millennium Bridge, Newcastle Quayside

Area development in Riga

B y R o b H a rtg e rs , p h o to g ra p hy Pe te r Stre l i ts k i / D e B e e l d re d a kti e

Area development is becoming increasingly important in city planning around the world. Every country and every city has its own views.

Janis Dripe, chief architect of Riga:

‘Guarding the quality of the architecture and public space' Since Latvia became part of the European Union, its economy is booming. The new-found economic prosperity is reflected in the numerous ambitious building projects in the capital Riga. Janis Dripe, chief architect of Riga, tries to make sure ‘all the new developments are done in a smooth and civilised way’. After Latvia regained its independence from the Soviet Union in 1991, Riga went for a long period without a city architect. With the appointment two years ago of Dripe, the position was re-established. ‘My mandate is to guard the quality of the architecture and public space in Riga,’ says Dripe. ‘Riga is in a process of decentralisation. These days, the city has become too big and too complex to plan centrally. After I got appointed I created a city architect’s council. It is an independent, public institution. The council will scrutinise proposals for new developments.’ Dripe’s biggest challenge is to keep track of the development on the banks of Riga’s Daugava river. In this

dockland area, the city is building Riga Port City, a development of 2,700,000 square metres. ‘Riga Port City is part of a development plan that was accepted by the city council two years ago, along with a plan for the preservation of Riga’s historical centre.’ The master plan for Port City was made by OMA director Rem Koolhaas, who is also responsible for designing one of the district’s eye-catchers, a museum of modern art. ‘The city council and the state are involved in the planning and funding of Port City,’ says Dripe. ‘The ministry of culture is responsible for the collection of the museum and the know-how. Private parties take part in the funding.’ The skyscrapers on the left bank of the Daugava will transform Riga into a small- scale Latvian ‘Manhattan’. Port City will be an important addition to the city centre. But the historical centre of Riga remains the focal point of the city, assures Dripe. ‘It is the heart of Riga.’ www.riga.lv; www.andrejsala.lv

David Shelton, director Cibitas Investments Ltd

â&#x20AC;&#x2DC;There isn't any

The interview

shortage of money’ The bigger the project, the more difficult it is to arrange the financing. At least that’s what you might think when you see the vast amounts involved. But as David Shelton now knows, size is actually a critical success factor: ‘I thought this would be very difficult, but the reality is that if you have a good scheme the money is available.’ By Ru u d S l i e r i n g s , p h o t o g r a p hy : M a r t ijn va n d e G r ie n d t , I N G R e a l E s t a t e D eve l o p me n t

any real estate developers still use the ‘quick in-quick out’ method. According to David Shelton, that way of working no longer fits with the current trend in new urban planning projects: in the UK, planning policy is focusing development on brownfield sites in the inner cities. That’s where the vast redevelopment tasks are. In that context you need to think big: ‘If you try to develop a half-acre site in the middle of a sea of dereliction, that scheme’s value very quickly slumps to that of its surrounding area. Therefore in the inner city you need to go large; 50-, 60- or 100-acre projects in which you can create your own values.’

Offering opportunities Cibitas Investments Ltd, based in Manchester, has set itself high requirements. The company’s goal is to create vibrant, high quality, self-sustaining urban areas. ‘And to make money out of it,’ adds Shelton with a smile. Shelton moved three years ago from the public sector to this company, which is led by stakeholders ING Real Estate, Stanhope PLC, Waystone, Pigeon Properties and Shawbridge Management. According to Shelton, Cibitas targets ‘underperforming areas, to transform them into thriving new communities through a process of master planning, site assembly and provision of community facilities, all with a view to offering opportunities to third-party developers.’ To create value from these opportunities you need critical mass, according to Shelton: well thought-out plans, which link underperforming areas to value generators like city centres, supportive local authorities prepared to contribute ideas, and a planning horizon of seven to ten years minimum. How does Cibitas manage to do all that? Shelton: ‘We try and avoid development competitions. We’ve seen too many master plans gathering dust rather than being delivered on the ground. When we spot an opportunity we initially undertake a “scoping study”: together with the authorities we assess whether commercial or political goals are viable. If we think they are, we will embark on a much more expensive master planning process.’ It is no surprise, then, that Shelton is all for closer collaboration between the public and private sectors: ‘We can bring in expertise, investment and experience, but we can’t provide democratic accountability, we can’t create a supportive planning environment and we can’t provide compulsory powers, which are vital to this sort of scheme to ensure we can create the added value.’

‘We are providing a high-density inner-city residential area targeting real people. People with dogs, families, cars and bicycles, who like to have barbecues in the garden’

Financial engineering Crucial in this phase is the financial backing: ‘The key to successful master planning is to make sure the plan is developed in tandem with a very robust financial model, which drives the master plan.’ But the difficulty would appear to be precisely that while nothing very concrete can be said at that stage about the plan, investors have

to put many millions into the project. Shelton: ‘Our core investors understand how the regeneration process works, how you work effectively with the public sector. And they have deep pockets. But also the banks are interested in this kind of scheme. We were recently going through the process of tendering for Holt Town senior debt facilities and there was a tremendous appetite amongst banks to become involved.’ Holt Town is a 95-acre regeneration project in Manchester controlled by Cibitas. Wholly in accordance with the principles of Cibitas, the political and economic opportunities were explored before the plan

took shape. The objective over the next 15 years is to build here 4,600 houses, among others, but should the market change it can get a different function. That flexibility provides security. Shelton: ‘Although the business market is unpredictable, I would argue that the risk profile for the manufactured land is lower. But at the end of the day all investment is an act of faith, so you’ve got to believe this is going to work. That’s not a marketing issue, that’s quite fundamental.’ Confidence is in any case an important factor in the collaboration required in area development. Shelton is against public-private partnerships (PPPs) made watertight by bulky contracts. In Holt Town – the UK’s biggest redevelopment project outside London and the South East – the agreement between the parties is just two centimetres thick. It contains the intentions, the ambitions, tasks and duties of the partners and the financial backing: ‘It’s a contractual joint venture which clearly sets out the duties of the parties. For a specific project like this, that’s probably the best route and one that banks understand.’ Holt Town nowadays

Reconciliation model Put like that it seems almost like an exercise in filling in the blanks harmoniously performed by the PPPs. Surely there can also be friction between for instance commercial and public interests? Shelton: ‘Absolutely. Sometimes we can’t reconcile the objectives of the parties and at that stage we wouldn’t become involved. But most things in the trade-off between viability and policy objectives can be reconciled using the financial model which we create for the scheme. Therefore we make a principle of developing the financial model for the scheme with our public partners, so we are absolutely transparent. If they want a new bus lane or two schools instead of one, we can together use the financial model to find out if we can afford it. There are lots of opportunities for differences of view, but we have to keep our priority right of return, and the scheme has to be fundable in the banks’ perspective. On the other hand we’ve also got to deliver our public partners’ policy objectives as far as possible.’ Holt Town is the perfect test case for the vision of Cibitas and the financial model: ‘We are providing a high-density residential area in the inner city, targeting real people. People with dogs, families, cars and bicycles, who like to have barbecues in the garden. The issue is bringing families into the city. When we get this concept with its financial engineering right, it can be replicated on its principles in virtually any city in – and maybe outside – the UK.’

‘At the end of the day all investment is an act of faith, so you’ve got to believe this is going to work’

Holt Town - Manchester Developer: Size: Houses: Offices: Retail: Public: Completion:

Cibitas Investments Ltd. 380,000 m2 4,600 11,000 m2 2,000 m2 90,000 m2 2007-2222

Holt Town in the near future

Waterfront regeneration

On the edge Living on the edge. The ultimate edge is the waterfront. People like to live and work there, it is often an ideal place for recreation and leisure, and municipal authorities can use it to fulfil their ambitions to expand and brand their city. But waterfront regeneration is a highly specific discipline bringing both opportunities and risks. In that respect, authorities, developers and investors also find themselves on the edge.

port development is to be successful, the water must continue to play a focal role in the area, in the form of light (and clean) activity, public transport and water recreation. Thirdly, because the scale in port areas is always large, it is best to preserve that space and the sightlines where possible. Finally, there is the emotional attachment to port areas: when it comes to cafĂŠs, restaurants or cultural facilities it is wise to emphasise the waterfront location.

Rooted in the past

Substantial investments

Harbour towns have a unique history of their own. Centuries ago fishing stimulated the growth of light industry. In the late 19th century many port authorities slowly but surely developed into colossal industries, and by the mid-20th century their activities could seldom be contained within the cities. Many authorities moved to outlying areas. A process that has shaped many waterfronts. And particularly in a context as specific as water, such redevelopment must incorporate that historical past if the area is to be at all sustainable. A well-tried method is to make use of existing elements in the port area. There are four different aspects to this. Firstly, the physical elements such as buildings and crane installations can be preserved, for instance, by using them to house public facilities. Secondly, if a

No matter how well local authorities and developers meet these sustainability requirements, waterfront developments have their problems. More than with other urban area projects, a waterfront development is a lengthy process with many stakeholders. The port authorities, for example, are an important player in the area, partly due to the portâ&#x20AC;&#x2122;s existing activities and possible future activities. The development is nearly always large in scope and innumerable timeconsuming and costly issues must be solved before work can begin. The heavy industry previously located there means that the ground and water need cleaning up, for example, and in highly fragmented areas land acquisition is a time-consuming process. Another potential cost item is the state of the docks and quaysides, as well as the need to devise a different way of protecting the coast

There are waterfront developments on virtually every continent. The reason for their popularity is rather prosaic: the ground has simply become available. In recent decades port activities and the related heavy industry have moved from the city ports to the periphery. The perfect opportunity for cities to expand. B y R u u d Sl i e ri n g s , w i th th a n ks to Ma h m o o d Fa ru q i , d i r e c t o r RT K L L t d . UK , p h o t o g r a p hy : H e r ma n Wo u t e r s , To n Po o r t v l i e t / Ho l l a n d s e H oo g t e ; ING R e a l E st a t e D eve lo p m e n t ; s tad Antwerpen

The secret of good waterfront development – different rules apply to a combined residential and business area. That in itself is a challenge for the designers, because ensuring the ‘users’ are safe must not mean that the water disappears behind high walls or raised quays. The trick is to contain the water safely in the city. The investments in infrastructure and public space will be equally substantial – ports are not known for their public-friendly roads and reliable public transport facilities. Funding, largely public, will have to be raised for that. And the creation of an appropriate public space is also very costly, particularly if it involves building things like characteristic promenades along the waterfront.

High returns Despite all the effort, it is clearly worth it, given that waterfront regenerations are numerous and set to increase over the years. Local authorities and developers see great opportunities in this type of area development, the returns are higher than average. People are keen to live on the waterfront, companies are eager to locate there and port areas are a magnet for tourists, especially if they offer an accessible public space, a ‘harbour ambience’ and water-related facilities. And for local authorities in particular, port areas offer excellent opportunities for city branding because of their strong identity.

1 2 3 4 5 6 7

Good urban design (the key to the development)

Knowing the target market (directed, but flexible)

Mix of uses (creative functions appropriate to the water) Public spaces (benchmark for the development, magnet for tourists) Events and activities (area promotion, branding) Attractions (cultural or other facilities as crowd pullers) Authenticity (the character of the area emphasised) Respecting real estate fundamentals (above all retail: hotspots of focused activity)

Antwerp’s Het Eilandje tarted in 2002 and scheduled for completion in 2014: the regeneration of 20 hectares in Victoria Harbour, in the centre of Melbourne. The area is dedicated to housing, retail and leisure, and offices. Because the site was largely undeveloped, the masterplanning and land-acquisition phase was relatively smooth. Public transport facilities include a tram connection, ferries and water taxis. The highly luxurious Waterfront Piazza shopping area is now open. This year sees the completion of more retail areas including the Harbour Town Outlet Mall, some of the residential units and the parking facilities. And the 120-metre high Observation Wheel – Waterfront City’s eye-catcher and tourist attraction – will come into use in 2008.

Hamburg HafenCity 24

he seaport of Antwerp contains a number of docks from Napoleon times. In the second half of the 20th century the area fell into decline. The regeneration of this 172-hectare area started around 2000. As the docks had never been drained, it was possible to integrate its maritime character into the master plan; most of the warehouses, bridges, locks and cranes have been preserved. Yet Het Eilandje is an in-town area because the old port was located in the heart of the city. Het Eilandje is divided into five districts. Three of these are under development, with around 175,000 square metres earmarked for housing and an equal amount for offices, culture and recreation. A further million square metres will be completed in the second phase.

Waterfront City Melbourne n Hamburg a new 155-hectare city centre (including 55 hectares of water) is taking shape on the Elbe. Boasting some 5,500 new homes and 40,000 new jobs, Hafencity will in 20 yearsâ&#x20AC;&#x2122; time have expanded Hamburg by about 40 per cent. The city administration is making every effort to brand the area, among other things, with crowd pullers like a concert hall and a maritime adventure park. The area is divided into 13 zones. Sandtorkai, the first subarea has already been completed. In the central Ă&#x153;bersee Quartier building will start in 2008. HafenCity will have a brand-new U-Bahn network. Much attention is being paid to the public space, large parts of which, particularly the promenades and squares along the Elbe, were laid out at an early stage.

Anschutz Entertainment Group

‘We build entertainment destination sites’ Going to a sports event or a concert is an experience. What kind of

experience depends largely on the programme, but the hardware – the

stadium, concert hall, sports venue – also has an impact. The Anschutz Entertainment Group (AEG) leaves

little to chance: ‘It’s not just a real estate proposition we offer, it’s also a content proposition.’ By Ru u d S l i e r i n g s , p h o t o g r a p hy : S i p ke Vi s s e r / De Be e l d r e d a k t i e

Alistair Wood (left) and Brian Kabatznick in front of the O2 arena in London.

The user

‘It’s not so much the square footage, it’s the capacity that counts’ AEG. Each theatre or arena offers facilities for the corporate market. The trick is to serve all target groups and make the venue multifunctional. In the Staples Center in L.A. everything revolves around hockey and basketball, in London’s O2 music is central,

The Staples Center in L.A.

provides top entertainment: music, theatre, sport. The company owns a large number of sports teams,promotes major artistes and boasts many wonderful venues. The perfect combination, says Brian Kabatznick, vice-president AEG Facilities Europe: ‘There’s a unique synergy in our business. We own sports teams, we own and manage venues, we have a product, and we have a direct relationship with major artists and managers. The entertainment business is changing, the content and programmes are very much related to the venue. We’re in the forefront of that paradise.’

AEG Opportunities

AEG owns much of the large volume of real estate at its disposal and is rapidly expanding its arsenal. In 2007, it opened the O2 in London, a ‘remake’ of the unpopular Millennium Dome, as well as a large theatre in Los Angeles and a stadium in New York, among others. This year sees the opening of Berlin’s prestigious O2 World, and many building projects or acquisitions are in the pipeline. There seems to be no end to it. Kabatznick: ‘We look into major markets, markets that either do not have state-ofthe-art entertainment facilities, or where we can complement existing buildings. We search the marketplace and work closely with our partners within the company: AEG Real Estate and AEG Live. We’re able to look from different perspectives: facility, event, marketing.’ So according to Alistair Wood, Real Estate Development director Europe, at AEG it’s not

really a matter of thinking in terms of square metres: ‘Our interest is so diverse, it wouldn’t really be relevant to give a square foot number. It’s not so much the square footage, it’s the capacity that counts. Identifying opportunities involves a huge amount of research and in the end – I hate to say it – a lot comes back to budget. On the other hand, one of the fantastic things about arenas is not just the value they generate themselves, it’s the potential to deliver benefits to surrounding areas as well. Look at the O2 in London, we felt there was a shortage of good-quality facilities in London. Already now, half a year after the opening, we’ve seen a huge impact on land values in the area.’ According to Kabatznick, this increase in value has everything to do with the AEG approach: ‘Really the O2 is an entertainment district, with restaurants, cinemas, an indoor skating rink. The building has a life and energy of its own. It has fantastic benefits for the 80 hectares of adjoining development land. Based on that, we’re now developing more space to capitalise on the benefit the area brings.’ Wood describes AEG’s real estate policy as ‘holistic’: ‘We seek to get in early, and we’re not at all afraid to take on problem sites. Our company is run from the United States and there are worldwide strategic policies, but effectively you have to deal with each site on its own merits and with a whole series of challenges. What we usually do is use the central development expertise, but then employ local teams and consultants to manage and develop each facility. Local knowledge is incredibly important.’ Partners and sponsors are also important for

but that can easily be reversed. Wood: ‘The facility can very quickly chop and change between different users, and the venue doesn’t suffer.’ Kabatznick: ‘When we built the arena in Berlin just for our hockey team, well, that’s for 35 days a year, ten per cent of the available days. So we looked at it for the greater good of potential tenants, artistes, family events. As a commercial entrepreneur we can develop venues that are multifunctional with all the comforts for tenants and customers.’

Catalyst for regeneration AEG’s success has attracted a steady flow of potential partners, as well as municipalities who invite the company to come and talk. Wood: ‘Arenas are a fantastic catalyst for regeneration schemes. In London we showed that you can turn a building associated with negative perceptions into a hugely popular venue. That in turn has fantastic benefits for the 80 hectares of adjoining development land. And: it’s not just a real estate proposition we offer, it’s also a content proposition.’

Anschutz Entertainment Group AEG is one of the world’s leading companies in the live entertainment and sports sector. It owns and operates a number of the world’s largest arenas and theatres and it promotes and produces world-class events. The company employs more than 3,000 people in 45 firms all over the world. The Los Angeles-based group owns a number of basketball, football and ice hockey teams in the USA and Europe. The organisation can book artistes like Justin Timberlake, Paul McCartney, The Eagles and Beyoncé, and in 2007 its football club LA Galaxy hired David Beckham and coach Ruud Gullit.

Area development in Curitiba

B y R o b H a rtg e rs , p h o to g ra p hy : N B P i c tu re s / H o l l a n d s e Ho o g t e

Area development is becoming increasingly important in city planning around the world. Every country and every city has its own views.

Jamie Lerner, architect and urban planner:

‘Every city, no matter what its scale, can improve its quality of life’ In the 1960s, the young architect Jamie Lerner decided that his city was heading in the wrong direction. While Curitiba, in the southeast of Brazil, was falling apart in rich and poor neighbourhoods, and its highways and roads were clogging up, the cities’ rulers preferred to invest in prestigious projects like giant shopping malls and high-rise buildings. When the mayor sponsored a competition for a ‘Curitiba Master Plan’, Lerner seized the opportunity. His plan for a sustainable city won great support among the citizens of Curitiba. In 1971, he was elected mayor. During his 12 years in office, Lerner devised many innovative, inexpensive solutions to city problems. Today, he helps other cities to address issues of long-term growth and sustainability. ‘The Curitiba Master Plan continues to this day,’ says Lerner. ‘It is not a set of rules and regulations, but a philosophy and an ongoing, innovative process. Every new mayor adds new elements to it. They have to, because the people ask for it. At the core of this

philosophy is the idea that people should be living and working together. There should be no separation by income, age or religion. When we started this process, Curitiba was a segregated city. Today, around 80 per cent of the people live in a diverse neighbourhood.’ One of Lerner’s greatest successes is Curitiba’s public transport system. A spider web network of bus lines connects the different neighbourhoods. Specially designed buses go as fast as subway cars, in their own traffic lanes. ‘When we started with this system in 1974 it served 25,000 people per day,’ says Lerner. ‘Now, the buses are used by 2,400,000 passengers every day.’ Curtiba is not a paradise, warns Lerner. ‘We still have our problems. But 40 years of experience with the Curitiba Master Plan have taught me that every city, no matter what its scale, can improve the quality of life. It takes political will and it takes a sense of co-responsibility for the city’s future.’ www.jaimelerner.com; www.curitiba.pr.gov.br

Gateway Gardens

A new gateway

Location: Germany/Hessen, Frankfurt/Main Type: Land development, from a former military site used for housing facilities of the US Air Force into a high quality business location in Frankfurtâ&#x20AC;&#x2122;s Airport City Scale: 35 hectares Programme (gross floor space): 700,000 m2; Offices, approx. 270,000 m2; Retail, approx. 15,000 m2; Conference/Congress, approx. 45,000 m2; Hotel, approx. 80,000 m2; Airport-related-use, approx. 100,000 m2; Medical institutions, approx. 10,000 m2; Trade Center, approx. 100,000 m2; Restaurants, approx. 10,000 m2; Entertainment, approx. 70,000 m2 Green: Central park with partly old trees in the middle of the area Public transport: Own urban railway station and shuttle-bus to the airport (both planned) Parking: Basement garages Investment period: 2004-2016 Partnership: Gateway Gardens is a land development project of ING Real Estate in cooperation with OFB Projektentwicklung, Fraport AG, GroĂ&#x;&Partner and the City of Frankfurt

to Europe In a globalised economy, airports have become focal points of business. In the business district Gateway Gardens in Frankfurt, the airport is only minutes away from your office. B y R ob Hartgers , p h o to g ra p hy : G ru n d s t端 c ks g e s e l l s c h a ft G a teway Ga r d e n s G mb H

ome to 2,500 American servicemen and their families, the area adjacent to Frankfurt Airport and the cloverleaf interchange Frankfurter Kreuz was for a long time known as ‘little America’. These days, little is left of what was once one of the biggest US air force bases outside the USA. When the area was returned to the City of Frankfurt in 2005, the last inhabitants left the enclave, making way for the new business district Gateway Gardens. Only its name will remind future visitors and office workers of the area’s military history. Gateway Gardens is part of Airport City, a rapidly developing business area centred around Frankfurt Airport. An international meeting place with a cosmopolitan ambience and characterised by modern architecture and urbanity, it is also the best-connected location in Germany. From Gateway Gardens, it is only minutes by bus to the Airport terminals and a stone’s throw from the heart of the city. Airport City has an ICE train station, and Gateway Garden will boast its own S-Bahn station. From the Frankfurter Kreuz, the freeways A3 and A5 and the national highway B43 head in all directions. The excellent infrastructure creates a catchment area of 35 million inhabitants within a range of 200 kilometres.

Mainhattan Frankfurt am Main, the city’s full name, is the financial and transportation centre of Germany and the largest financial centre in continental Europe. The European Central Bank, the German Federal Bank, the Frankfurt Stock Exchange and the Frankfurt Trade Fair are all based there. Add to that the 300 national and international banks represented in Frankfurt and you can see why the city is sometimes nicknamed ‘Bankfurt’. Another nickname (there are many) refers to Frankfurt’s impressive skyline: ‘Mainhattan’. With ten skyscrapers taller than 150 metres, Frankfurt easily beats London and Moscow. As a trading city, Frankfurt has always been internationally orientated. It is home to 180 different nationalities, including a large Korean community. One in four of the city’s 660,000 residents comes from outside Germany. Airport City and Gateway Gardens hope to profit from this international atmosphere. With its extensive infrastructure, its proximity to the economically powerful region of Frankfurt/RhineMain, and its central location in the heart of Europe, Gateway Gardens holds strong cards in the battle for multinational corporations. It has already welcomed LSG Sky Chefs, the world’s largest supplier of catering services and airline in-flight solutions, as its first occupant. In March 2006, LSG acquired a plot of 55,000 square metres on the south-east of the site to build new catering facilities. The facilities will be open in summer 2008.

A public private partnership on this scale is one of the biggest in Germany

Partnership When the US armed forces returned Gateway Gardens to the City of Frankfurt, the municipality decided to develop the site in a public private partnership (PPP). It founded Gateway Gardens Projektentwicklungs-GmbH, in which it took a 50 per cent share. The

other half is owned by four private companies, which have joined forces in the real estate company Grundstücksgesellschaft Gateway Gardens GmbH. These private partners are ING Real Estate Germany GmbH, Fraport AG (the owner of the airport premises), property development company Groß & Partner, and the project development and construction management company OFB Projektentwicklung GmbH. Together with the City of Frankfurt, they are responsible for preparing the site, acquiring a secured planning permission and developing the complex. The total investment volume for the whole development amounts to 1.5 billion. The PPP on this scale is unique in Germany. It enables the City of Frankfurt to develop the project on a capital base that would normally be out of its reach. For ING Real Estate, it is an opportunity to affirm and reinforce its position as an international player in green development.

Quartier Alpha The construction of Gateway Gardens will start in 2008 and will be completed in 2016. Characteristic of the new district is the zoning mix of leisure and business. Besides office space, the area offers hotels, restaurants, trade fairs, and entertainment and leisure facilities. Despite the proximity of an airport, railways and motorways, Gateway Gardens is a green environment. The houses of the American military personnel have been demolished, but the old trees were left standing. The entire area is shielded from traffic by green spaces, and the streets will be laid out as tree-lined avenues. A regional park route leads joggers and cyclists straight through Gateway Gardens. The first part of the area to be developed is the Quartier Alpha. The master plan for the Quartier is designed by the architect Jo. Franzke, known for the Haus der Presse in Berlin and the Eschborn Plaza in Frankfurt. Franzke is no stranger to Airport City: in 1993 he designed the airport’s Terminal 1, together with Christoph H. Mäckler. With seven to fifteen floors, the six distinctive buildings that will make up Quartier Alpha are set around an urban plaza. They form the visual entrance, or ‘prelude’, to Gateway Gardens. The architecture is both stylish and spectacular, without ever losing sight of the human dimension. The Crystal Building, designed by Schneider + Schumacher Architekturgesellschaft mbH, looks like a multifaceted crystal. Openings in the structure visually connect the urban plaza in the west and the adjoining park in the east. The highlight is the triangular Alpha Rotex building, which is 52 metres high. The building seems to literally wrench itself into a twisted shape, eager like the rest of us to view its wonderful surroundings.

Area development in Łódz´

B y R ou bu dHSl a rtg i e rie rs n g,sp, hpohtoo tog rag rpahy p hy: : KMarz rti y s to n Rf iGc ah py a rds s /o nD/eD eB eBeelde lrderdeadkat ki et i e

Area development is becoming increasingly important in city planning around the world. Every country and every city has its own views.

Włodzimierz Tomaszewski, deputy-mayor:

‘Together we will breathe new life into this area’ In the 19th century, Poland's second largest city Łódz´ came to life with a bang when the city’s burgeoning textile industry attracted workers from all over Europe. In the latter part of the 20th century, its factories closed down one after another and unemployment rates soared. Today, Łódz´ is doing better than ever. The old factories and factory grounds are being revitalised and put to new, unexpected uses. Deputy-mayor Włodzimierz Tomaszewski is at the helm of the city’s revitalisation. ‘My experience with revitalisation goes back to the 1990s, when – as a member of the opposition – I was trying to convince the subsequent governments of the need for a special Revitalisation Law. Now I am responsible for implementing a programme for the revitalisation of part of the city centre and the posttextile industry areas in Łódz´ between 2004 and 2013.’ The challenges facing Tomaszewski are enormous. The area around the Łódz´ Fabryczna Railway Station alone, where the city plans to develop a new city centre for Łódz´

(including an underground railway station), measures almost 90 hectares. Area developments on this scale far exceed the city’s budget. Luckily, Łódz´’s 19th-century brownstone factories, with their art deco grandeur, attract many admirers. The French multinational development company Apsys, for example, bought the old textile factory complex formerly known as the empire of industrialist Poznanski and turned it into a 270,000-square-metre shopping and leisure paradise. Another high-profile investor is American film director David Lynch, who bought an old power station that he plans to turn into a studio complex. For Tomaszewski, this is a lucky break: ‘We are trying to engage diverse partners and private capital in our undertaking. The mechanism we have been using lately is exchanging property. In the programme for the New Centre, we want to cooperate with the World Arts Foundation of David Lynch and a strategic private partner. Together we will breathe new life into this area.’

Henning Larsen Architects

Danish

The architect

master planners For Danish architects HLA, designing a master plan is not a technical exercise. â&#x20AC;&#x2DC;We force ourselves to be open minded.â&#x20AC;&#x2122; By Ro b H a r t g e r s , p h o t o g r a p hy : H e n n in g L a r se n Ar ch it e ct s

The lobby area of the Opera House in Copenhagen connects the arrival plaza towards the harbour with the large auditorium.

taging meetings between people’ is how Louis Becker likes to describe the purpose of a master plan. Becker is one of the three directors of the acclaimed Danish architectural firm Henning Larsen Architects (HLA). Over the last decade, the Copenhagen-based firm has gained a reputation for its largescale master planning projects. Recently, it designed the master plan for the Zuidas, a new city centre south of Amsterdam. In Reykjavik, HLA is involved in the revitalisation of the area around the eastern harbour. At the other end of the climatological scale, in the Saudi Arabian capital Riyadh, the Danish architects produced a master plan for a new financial district covering an area of 1.6 square kilometres.

‘S

Horseshoe HLA was established in 1959 by Henning Larsen, the ‘grand old man’ of Danish Architecture. Educated at Boston’s prestigious MIT School of Architecture, he rose to international fame in the 1970s by designing a new university in the Norwegian city of Trondheim and, most famously, the Saudi-Arabian Foreign Ministry in Riyadh. The monumental, fortress-like building that combines Islamic and European building traditions left a deep impression on the Saudi sheiks, an impression that served Larsen well in later years. Larsen’s magnum opus is the Opera House he designed for his native Copenhagen. The ‘Operaen’, as the Danish call it, was completed in 2004 and can easily compete with its famous counterpart in Sydney. The main auditorium is shaped in the traditional horseshoe form and appears to float in the foyer. It seats approximately 1,500, depending on the size of the orchestra. The Opera House is situated on Dock Island in Copenhagen Harbour. Its front side is visually incorporated in the harbour space. On both sides of the building, canals have been dug to accentuate the fact that the Opera is built on an island. The bridges that cross the canals are constructed from 19th-century oaks once grown for the purpose of building a national fleet.

Layers Though Larsen still regularly visits HLA’s offices to take part in discussions, the 82-year-old is no longer actively involved with projects. Over the years, the company bearing his name has grown into an international firm, with a staff of more than 150 architects of 20 different nationalities. More than three-quarters of the turnover derives from projects outside Denmark, in places as far apart – culturally and geographically – as Iceland, Albania and Saudi Arabia. Working in such diverse and culturally different environments forces an architect to be pragmatic, says HLA-director Louis Becker: ‘Designing a master plan is not a technical exercise. A lot has to do with understanding the psychology of behaviour, and sensing the expectations people have of their surroundings. The cultural component has a big impact on our work. Each project is based on local conditions. In Reykjavik, the climate is harsh, so we designed a covered street. In Riyadh, we took among others the separation of men and women into account.’ Given the pragmatic and functional approach of Becker and his colleagues, there is no trademark ‘HLA-style’. Becker does not regret it. ‘Architects with a trademark style run the risk of repeating themselves. Their work becomes a caricature. We force ourselves to be open-minded every time we take on a new assignment.’

The heart of the King Abdullah Financial District is a transformation of the Arabian wadi - an oasis or riverbed - and will comprise financial institutions, residential and recreational areas, shops, restaurants, hotels and sports facilities.

Designing a master plan is not a technical exercise. A lot has to do with understanding the psychology of behaviour and sensing the expectations of people The project revitalising the eastern harbour area of Reykjavik includes a number of significant buildings for cultural and mixed use.

The King Abdullah Financial District gives Riyadh a new characteristic skyline.

In its master plans HLA favours method over style. Characteristic of the HLA architects is that they cut up the design in layers. Typical layers are commercial space, retail space, residential space, road infrastructure, or cultural and social amenities. The layers are defined and conceptualised separately. At a later stage of the planning process they are combined and interwoven. ‘By taking a plan apart, we make sure everything is covered,’ says Becker. ‘This approach is a great communication tool. We don’t have to ask people for their opinions about the whole plan, we discuss it one layer at a time. This way we tackle the master plan issue by issue, and make sure that all parties are heard. If you don’t do that, people will come up with ideas after the design is finished and you may have to redo your plans.’ In all of HLA’s master plans and architectural designs sustainability plays an important part. Things like waste management, disabled access and CO2 reduction are a natural and integrated part of the design. Even when designing for the desert climate of Saudi Arabia, HLA included a water collecting system. For Becker, this is self-evident: ‘We are Nordic architects. You cannot do a project in Scandinavia if it is not sustainable.’ And besides, says Becker: ‘It may not rain a lot in the desert, but when it does, it comes down in torrents.’

Clean break The layered design is apparent in one of HLA’s most ambitious projects to date, the King Abdullah Financial District in the Saudi-Arabian capital Riyadh. At a cost of $7.4 billion, the center will accommodate 50,000 people, including some 4,600 residents. The district is financed by the Saudi-Arabian Capital Market Authority and a public pension fund. It will house the Stock Exchange, the Commodity Market, and several other financial institutions. HLA’s master plan is inspired by traditional Arabian town planning, while simultaneously incorporating elements from other modern financial centres. It is a clean break with the American-influenced rectilinear grid street patterns that became prevalent in the Middle East over the last 40 years. HLA reached back into Saudi Arabia’s past and designed a financial district that is divided into three areas connected by an Arabian wadi – an oasis or riverbed – that forms the spine of the project. This modern wadi will be a mixed-use area, with residential, retail and office space. The green heart of the district

The Saudi-Arabian Foreign Ministry in Riyadh combines Islamic and European building traditions.

will also house an aquarium, museums, hotels, sports facilities and mosques. The infrastructure is literally on another layer. Giant air-conditioned pedestrian bridges run throughout the district linking the multistorey buildings. The estimated 43,000 employees of the financial institutions won’t even notice the sweltering desert heat. The skywalk will be supplemented by a fully integrated light rail system, making the whole district a car-free zone. Beneath the district runs a ring road that can be used by delivery trucks. ‘We tried to get the financial district to work as a city,’ explains Becker. ‘In Arab countries people used to meet in the shade. We tried to revive that tradition by reintroducing parks for the public and banning cars.’ The first offices in the brand-new district are expected to open late in 2008. Saudi Arabia’s Minister of Finance has already declared the construction of the centre ‘a pivotal moment in the Kingdom’s history.’

lluminated Iceland is known for its natural wonders: spouting geysers, volcanos and cracks in the Earth’s crust that emit steam and sulfurous gases. These phenomena are integrated in the ambitious plan that HLA designed for the revitalisation of Austurhofn, the eastern harbour in Reykjavik. As a member of the Danish-Icelandic consortium Portus Group, HLA produced a masterplan for an area of 85,000 m2. Its overall objective is to improve the connection between the city centre and the harbour. The eye-catcher of the project will be the new Icelandic National Concert and Conference Centre. Together with the young Danish artist Olafur Eliasson, HLA designed a futuristic building, ingeniously using of Iceland’s natural forces. Hot water from the geysers will be used to ‘drape’ the building in illuminated mists during concerts. From the Concert and Conference Centre, a new city street with shops on two levels leads back to the centre of Reyjavik. The street, that connects Reyjavik with its harbour and oceanfront, will lead visitors past a ‘water plaza’ where they can enjoy the spectacle of the geysers. Visitors who arrive by car, will be shielded off from the cold Nordic winds on their walk from the car park to the Concert and Conference by a glass sheltered pedestrian street. Austurhofn hopes to welcome its first visitors in 2009.

items Olomouc Šantovka ING Real Estate Development, together with Sekyra Group Real Estate, is developing an extensive multipurpose centre in Olomouc, the Czech Republic’s fifth largest city. The project, entitled Olomouc Šantovka, will be completed in 2015. Over 200,000 m2 of new space will be built in an area that is currently unused and neglected. ‘Due to its unique location in the centre of Olomouc this project is a real inner-city redevelopment, which we consider our core business. ING Real Estate Development has a number of similar projects in its portfolio in the Czech Republic and other countries,’ explains Maarten de Jong, CEO ING Real Estate Development Czech Republic. More than one-third of the new space will contain leisure facilities such as shops, restaurants, a bowling centre, a multiplex cinema and a fitness centre; another part is earmarked for houses of architectural interest. The complex will also include pedestrian zones, cycling paths and green. A shopping and entertainment centre will be built in the first construction stage, due to be completed by 2010. Building of the houses and offices plus the respective car parks will start at the same time. The conceptual development study of the project also includes an analysis of the future transport arrangements for the whole locality.

Sustainable residential project ING Real Estate has recently bought an area in the Tuscan municipality of Monteriggioni, Italy. This acquisition will facilitate ING Real Estate’s second residential project in Tuscany, with 6,700 m2 dedicated to different types of apartments. The beautiful hill location on a typical colle Toscano, has a wonderful 360° view of the surroundings. Four local architects as well as the public authorities were invited to participate in the project assessment. The architects were given four guidelines for making a proposal. These involved a reinterpretation of traditional shapes and techniques, sustainability, the layout of the apartments and the landscape. The best proposal, based on an accurate study of the site’s environmental conditions, was presented by Cataldo & Pierallini. These two young architects from Siena designed from the very first draft a project which fits in perfectly with the surroundings. The open houses profit from the natural elements. Fully integrated into the landscape, they are part of a unique environment from which they take energy. This sustainable design vision is reflected in each building in every sense and can be seen as a step forward in environmentally concerned projects in Italy.

The champagne bar at St Pancras station, London.

public and private space The blurring border between

There is an ever finer line between public and private space. The question of

how to lay out the public space will increasingly depend on what users want. Until recently it was the public authorities who developed the infrastructure, a role now being adopted by commercial players. By To i n e Al, p h o t o g r a p hy : J e f f G ilb e r t , R ay Ta n g /

R ex Fe a tu re s; H i g h Te c h C a mp u s E i n d h ove n ; K l a a s Fo p ma / H o l l a n d s e H o o g t e ; Be r n a r d An n e b i c q u e / Co r b is Sy g m a

t used to be that company buildings were fenced off, train stations were for catching trains and public roads were for getting to your front door. But these days people no longer work in an office but in an area, like the High Tech Campus Eindhoven. This technology centre on the site of the former Philips Natuurkundig Laboratorium accommodates not just one, but a wide range of companies. The staff have lunch, not in the canteen, but in The Foodcourt, while the boss eats Ă la carte in The Lounge. And if he has to go abroad in a hurry all he needs, from the latest ready-made clothes to the newest laptop, is available nearly 24 hours a day at Schiphol Airport. Soon that will

also be possible at one of the Dutch train stations with a planned high-speed rail link. The functions of buildings, spaces and areas are blending more and more, with a parallel blurring of the visible borders between public and private domains. This is due to a number of factors. The external spaces of shopping centres, business parks and residential areas, for example, are increasingly a concern of private players. Market forces, deregulation and the freedom of choice of citizens and market players have become more central. Increasingly, residentsâ&#x20AC;&#x2122; groups are responsible for the layout and management of communal outdoor

High Tech Campus Eindhoven blends public and private functions.

Before hopping on a plane, passengers can buy anything at Schiphol Plaza, Amsterdam.

areas. In Amersfoort’s Stadstuin district 760 households live in a private park, and in the Golfresidentie in Dronten 450 households own and manage an area of 86 hectares. If consumers have a say in the plan, and the form and cladding of the frontage, they also want a say in the colour and material for the paving and the layout of the adjacent public space. They are paying, after all. For the rest, the Netherlands is lagging behind the global developments in this area, according to Willem Buunk of the Netherlands Institute for Physical Planning and Housing (NIROV): ‘We already know about the UK shopping malls near Newcastle and the resorts in the south of Spain, early examples of more integrated public and private spaces and functions. The latter serve as conference centres, as places for holidays and permanent occupation. Then you have the Paris apartment buildings combining private housing with communally run spaces. Or the classic Berlin residential blocks with communal courtyards.’

Stimulating innovation Commercial players increasingly act as manager and user of public spaces. Buunk: ‘Take the office concepts incorporating communal spaces and facilities developed for diverse users. With this kind of concept, the infrastructure is more frequently being developed by the owners, something that always used to be done by the authorities – things like industrial campuses, research institutes, higher vocational education buildings and science parks. Losing ground in the process is the idea that the public space is laid out and managed by the authorities, the collective, and that the responsibility for it ends at the front door of the private space.’ A Philips initiative, the High Tech Campus – with no fence around it – is run by Philips. Buunk: ‘Public and private functions blend here. The buildings also house competitors of Philips. It’s all about contact, the opportunity to exchange information and stimulate innovation in the process.’ That compels the parties concerned to reach agreement on how the surrounding public space is laid out and maintained, where to park and so on. This approach brings higher spatial quality to an area. It also brings about choices which are more tailored to the wishes and needs of users and consumers in competition with other areas in an urban region. The classic example of a successful hybrid of public and private functions is Schiphol Airport – a global trendsetter for many years, together with a number of other international airports such

as Detroit and Chicago. Buunk: ‘What you see at these locations is the optimal use of every square metre due to the efficient collection of transport possibilities on the one hand and commercial functions on the other.’

Experience economy The blurring of the functional and physical borders between what is public and private is also discernible in the changes over recent years in international train stations. Take London’s recently refurbished St Pancras station, since November 2007 the London terminus of the Eurostar, the high-speed Channel Tunnel rail link. In the Netherlands, Dutch Railways (NS) also has advanced plans to realise a combination of functions in and around stations. According to Mark van Hagen of the company’s marketing research and consultancy department, the NS is hereby responding to the demands of today’s economy. Van Hagen: ‘We live in an experience economy. For most of us material well-being is no longer a priority. Research reveals that people are now seeking experiences that deepen and bring emotion and meaning to their lives. So increasingly, public spaces need to be environments where people can literally feel at home, can amuse themselves as they would in their private domain. A space like a station or an airport should be like a pleasant bath, able to offer a moment of value instead of a windswept platform.’ Operators of stations and airports make a distinction between customers who are travelling through and those in transit. Those

‘There is a growing need for public spaces to become environments where people can literally feel at home’ focused on catching a train or flight want an efficient environment. Those with time to kill want their stay to be as agreeable as possible. This varies from as much entertainment as possible for those travelling for pleasure, to facilities enabling business travellers to make practical and efficient use of their time. NS, for example, is this year experimenting with diverse facilities at Leiden Station, whereby customers convey via polls and surveys what suits them and what doesn’t. Therefore the question in these locations of how the public space will look will depend increasingly questions like: Do customers want H&M or Calvin Klein? Is there a demand for Asian or European restaurants? Or would they prefer to spend their time in a health centre?

‘You need vision, ambition and a common interest’

Area development: more than a marriage of convenience

Jürgen Bruns-Berentelg, Hilde Blank and Sven Mathijssen

Expert opinion

Suddenly everyone is occupied

with

large

area developments. It is the topic of the day in real estate company boardrooms

and

dominates the political agenda in many large cities.

Centres

expertise

and

development

of area

courses

are springing up everywhere. Reason enough to invite three experts to discuss the success factors. B y R uud S l i eri ngs , photography: I ngmar Si e g ra m

arge area developments are the playing field where public and private parties not only need to collaborate but also almost have to ‘get engaged’. Collaboration is primarily a process, getting engaged an ambition, a conviction.

Three experts discuss the do’s en dont’s of such a relationship. Jürgen BrunsBerentelg, CEO of HafenCity Hamburg Gmbh, representing the public sector, is well-versed in private business after working until five years ago in the business sector. He runs a quango (quasi non-governmental organisation) that will in 15 years’ time realise a whole new multipurpose urban area. Hilde Blank is CEO of BVR, a consultancy for urban development, landscape and infrastructure. BVR increasingly acts as the pivotal point or connecting factor between public and private parties. Blank, then, regards urban design above all as an instrument in the far more complex area development process. Sven Mathijssen, since mid-2007 general manager

and member of the Executive Board of ING Real Estate Development, has always worked on the private side, not always in real estate, but always in management functions.

Homework The discussion opens with the question that has already defeated many clever people: how do you dress up the public-private relationship in complex projects? BrunsBerentelg: ‘There is no one relationship. In each phase of the development you are in a different relationship with each other. In the first phase, the public side must provide transparency so that potential partners know what they are getting into. That’s not a question of telling everyone that you have 50 hectares to give away, you need to present an idea. In the following phase, market players – in competition – mobilise their innovative forces to show why they can tackle that project. Then the collaboration starts to take shape in an ‘option period’ in which you think up solutions together for more or less

Hilde Blank :

‘Do not start on an area development if there is no common interest’

concrete plans. Only after that do you dress up the relationship with an agreement to manage the project.’ Mathijssen shifts uneasily in his chair: ‘Market players, then, come in very late. I think it’s better if you provide an earlier opportunity for initiatives from the business sector, there is a lot of expertise out there. That is also good for the public side, because you increase the projects’ viability and raise the land value. I often see plans come up for discussion which have been made without consultation and are therefore unfeasible.’ The truth lies somewhere in between, suggests Blank: ‘What is important is that the public side does its homework: does not make detailed plans and certainly does not take for granted possible profits from operating the land, but clearly makes known its wishes, which ambition is coupled with a project and how much you yourself are willing to contribute. Once that is clear, get advice from private players to see whether those ambitions are attainable. At that stage

there is still no question of a partnership, though it is fundamental to being able to select the right partners.’ Bruns-Berentelg: ‘That is what we do in the first phase. That’s when we transform the uncertainty about a plan to clarity about the risks. With that information companies can get to work.’

Project team Nobody has problems with a competition for the best candidate. However market players are afraid of having to put too many cards on the table in order to put themselves in the picture. Mathijssen: ‘That is a dilemma, because in a development the best opportunity to add value is at the start.’ In Hamburg that was well organised, in the sense that before a single concrete idea was put forward, Bruns-Berentelg had reduced the number of candidates to four consortiums. Those four received tender documents saying which mix of functions was required and what the design guidelines would be, but not how the plan should take shape.

Jürgen Bruns-Berentelg :

‘In real estate we say: location is all-important. In area development good governance is a precondition’

Plenty of room for input, then: ‘It was a sort of feasibility study that investors could use to make a risk assessment for the development. It also clearly stated what we do, such as building a metro to be finished in 2011.’ Mathijssen: ‘That seems like an excellent procedure to me, one that allows enough room for the developer. That this happens in competition is reasonable.’ A unique element in the Hamburg situation is the decision-making process. The local authorities were excluded as far as possible. When two consortiums were left in the running, Bruns-Berentelg presented the plans to the city administration, including finances and contracting: ‘That way you avoid endless political discussions. There was a choice between one plan or the other. Our organisation played a crucial part in that. We work like a company and understand very well which interests are of importance in the private sector. We are a kind of buffer. If we go to the municipality and argue that a metro line is essential in

the light of the urban perspectives, that sounds different from when a developer says that metro is necessary for his investment to be profitable. At the same time we have managed to get planning permission faster than usual. Because we are in between, the municipality also takes an entrepreneurial approach.’ Blank: ‘That helps. Because you suffer enormous delays if you have to get political approval for every decision. But in fact you are also saying: if you have to do with a municipality which doesn’t have that entrepreneurial spirit, don’t do it.’ BrunsBerentelg: ‘Exactly. In real estate we say: the location is everything. In area development I say: if you have a good location, but no good governance, don’t get your fingers burnt.’

Decision-making power According to Blank, the lack of decisionmaking power is not the exclusive preserve of authorities: ‘The area development team must be able to work separately from the parties it represents. You are not there on

behalf of a company or authority, but to add value to an area. Every party must therefore push the best people forward as well.’ According to Mathijssen, this is not the usual practice: ‘With many authorities you have complex decision-making structures and frequent changes of the guard. That means a lack of lasting commitment, which can really thwart a project’s progress. That’s why we always advocate a project team like the one Bruns-Berentelg describes.’ But as Blank discovered in the United States, things can go very differently: ‘What I saw was that an area’s value had slumped so much that a real estate developer could take the whole thing over, make a deal with the local authorities and then redevelop it as he wished. They were finished in three years.’ Mathijssen: ‘That is typical of the Anglo-Saxon culture. We also have projects like that in the UK, for example, where we have acquired a harbour to redevelop into an area for living and leisure.’ Blank: ‘It’s not advisable to do that on the European

Sven Mathijssen :

‘The ambitions of public and private parties must be synchronous, with long-term commitment to each other’

continent as well, though I would welcome a method for making headway.’ Bruns-Berentelg protests: ‘It only works if you first let an area get so run-down that it becomes attractive for investors to take on the infrastructure as well. I wouldn’t care to allow such deterioration in a city. Secondly, it is debatable whether a private player will realise such a development in line with the public and qualitative urban context, or whether he will create his own island.’

Clear-cut That brings the discussion to the many interests of significance in an area development. If you let more stakeholders get involved in discussing the layout of an area, do you not risk ending up with a compromise? Blank: ‘No, the information gleaned from discussing things together is considered in the planning. Communication helps you to get support, but do it from the start and make clear what is open to discussion and what is not.’ Mathijssen has his doubts: ‘If many people get involved with your plan, it can weaken it. No matter how clear-cut it is, you can also make yourself too vulnerable. But it seems to me that by definition a common interest is not a compromise.’

Bruns-Berentelg: ‘I see it as looking for a balance between different goals, not for a compromise. Use the expertise offered, from former users, from people in the neighbourhood, from all concerned.’ Also of great common interest is the public space, which often used to be an afterthought, but these days is seen in a different light by both public and private parties. That developers prefer to translate the square metres into saleable or rentable real estate is a fabrication, says Mathijssen: ‘The value of the built area depends largely on the public space. That’s why it would also be good in this case if developers could also think about it at an early stage.’ Blank: ‘But that is not really customary, and the past has shown there was a reason for it. In many new housing estates, public transport is still mainly treated as insignificant. Luckily the tide is turning and in any case the big private players are aware of the importance of a good public area.’ For Bruns-Berentelg this is a fundamental issue: ‘With public space you are not only talking about the users of that area, but about the whole city. The public space gives an area identity. It demonstrates the quality of a region and displays the vision of the makers of an urban area.’

items Island Gardens 2010 will see the completion of Island Gardens in Miami, Florida. Located on 10.5 acres of previously undeveloped land on Watson Island in Biscayne Bay, this luxury mixed-use waterfront will be just minutes away from Miami Beach and downtown Miami. It will offer elegant hotels, residences, a yacht harbour and a variety of leisure, shopping and dining experiences. The project will include a branch of the worldrenowned hotel chain Shangri-La Hotels and Resorts, with 150 guestrooms, suites and poolside villas featuring floor-to-ceiling windows, expansive terraces and round-the-clock butler service. On the top floors of the 43-storey building, and managed and serviced by the hotel, are The Residences: luxury homes surrounded by a spectacular botanical garden. The project will also feature a 29-storey business hotel/resort and the Super-Yacht Harbour. This is the only marina under development in North America exclusively designed to accommodate yachts of more than 300 feet. A set-back landscaped promenade will run along the 1,000 foot long sea wall. There will be 221,000 square feet of retail and dining space, with indoor and outdoor seating for more than 2,000 guests. ‘Island Gardens is truly a unique project,’ says Edward M. Rotter, managing director at ING Clarion and acquisitions lead on the transaction. ‘With its potential to transform the Miami skyline, we expect the complex to become one of the premiere leisure and hospitality addresses in the city.’

Living and working on the Schelde The De Zaat project at the former Boelwerf in the Flemish municipality of Temse provides space for living, working and recreation. For centuries, this unique and appealling place has been bringing maritime and industrial history together. The project is an initiative of ING Real Estate Development Holding Belgium and building corporations Cordeel and Aertssen. Working closely together with the Temse municipality, they produced an impressive plan, giving a new lease of life to 80 hectares of river bank on the lower reaches of the Schelde while focusing on the new residents’ quality of life and living. In 2004, ten years after the last ship had been completed at the worldrenowned wharf, redevelopment began. A living- and working-project that gives the region new impetus, the Boelwerf’s conversion ushers in a new era. The residential zone, including parks and recreational zones, will encompass 30 hectares. The remaining 50 hectares will be laid out as a commercial area developed by Cordeel & Aertssen only. The residential zone will consist of a combination of 700 apartments on and in the vicinity of the Schelde, as well as 200 single family houses. A new promenade on the Schelde links up with Temse’s existing dyke and increases the recreational possibilities for cyclists and walkers. A new yacht-basin completes the plans, making full use of the nearby water. The project area is surrounded by diverse nature conservation areas of high ecological value. On the other side of the Schelde is the sanctuary along the Oude Schelde with its valuable polders. De Zaat is distinguished by the attention given to nature and the future inhabitants’ quality of life. The total development is estimated to take 10 to 15 years.

Interactive collaboration

gaming

through

The concept of using games to simulate real events and situations has been around for centuries, in the form of battle exercises and

war games. Nowadays, gaming-simulation is used as part of the strategic decision-making process in large companies and organisations. It is also being used by ING Real Estate Development as an exercise in area development. By Ga r y Ru d l a n d , p h o t o g r a p hy : Be n Be r g ma n s , Ge r t - J o o s t Pe e k

he idea of gaming predates most religions,’ says Professor Jac Geurts, from the University of Tilburg’s Department for Organisation Studies. ‘In the Middle Ages, for example, knights competed in jousting tournaments, while both Napoleon and Peter the Great used war games and battle exercises to simulate actual conflicts. These have evolved into today’s sophisticated war game computer simulations.’ ‘The other major contributor towards the present-day concept of gaming is, of course, entertainment games. Most games involve decision-making and role playing, in one form or another, but Monopoly is probably the best known example. Dungeons and Dragons introduced an ‘open source’ element, in which participants not only play the game, but influence its outcome, and this has evolved into today’s interactive, internetbased, computer simulation games.’

‘T

‘Gaming has an enormous potential to involve people, much more so than lectures and presentations, and this is one of the reasons why companies and organisations are using the structure and processes involved in gaming-simulation as a tool in making real-life business decisions.’

suspension of disbelief that is required for productive communication.’ In each cycle, participants make decisions that have irrevocable consequences for the resources at their disposal. The results are assessed and reviewed before moving on to the next cycle.

Different roles

Focus

The gaming-simulation methodology, developed by Professor Geurts and his colleague, Professor Richard Duke, from the University of Michigan, involves a group of people assuming the identities of all parties concerned in a given scenario. ‘Policy games usually consist of a series of cycles which are iterative and become increasingly complex,’ Geurts continues. ‘Within any given cycle, the players are confronted by a set of steps. They take on several different roles, which is an essential element in achieving the

Today, the concept of gaming-simulation developed by Geurts and Duke is being used in the strategic decision-making process within large companies and organisations. ‘For example, we were invited by a large US pharmaceutical company to use the technique in deciding the location of its R&D facilities,’ Geurts explains. ‘Although the company’s original idea was to relocate its R&D operations to Europe, the game brought out factors that no-one had thought of, changing the entire focus of the exercise. As

‘Gaming has an enormous potential to involve people, much more so than lectures and presentations’

Professor Jac Geurts

a consequence, much smaller sums of money were put at risk and favourable results were achieved in a fraction of the time the original option would have required.’

Master class The same concept was also recently used as the basis of a three-day Area Development Master Class organised by ING Real Estate Development. ‘During the first phase of any area development project, it is extremely important for all parties concerned to agree a common goal,’ says Gert-Joost Peek, director of Research within ING Real Estate Development’s Strategy & Marketing department. ‘Often, they don’t have a clear idea about precisely what they want, however, or have difficulty in expressing their ideas.’ ‘Participating in a game-simulation based on the area development process enables all of the parties involved to clarify their own

ideas and to express them unreservedly. This not only encourages people to listen to and understand the perspectives of the other parties concerned, but it also helps them to find new ways of collaborating with each other in finding synergies and creating added value. And they can do all this in a matter of hours or days, instead of the usual years.’

theoretical and case study presentations.’ The participants assumed the identities of all the parties concerned in the area development project. ‘During the master class, they agreed contracts with each other, calculated costs and returns, and switched identities in order to view the project from different perspectives,’ Peek explains.

Hypothetical site

The next step

The master class organised by Peek was based on a hypothetical site in Rotterdam. ‘We focused on collaboration between the diverse parties involved, rather than the area development itself, which is simply a starting point from which to explore various scenarios and ways of working together,’ he explains. ‘We invited 24 high-level managers, senior developers and head office staff from ten European countries to participate in the master class, which also included several

A second master class is scheduled for May 2008. ‘We aim to build on the success of the first, by focusing on using gaming-simulation as a method for improving collaboration between participants, both within the master class and in their day-to-day work,’ Peek concludes. ‘At present, we have no plans to expand the master classes into real-life area development situations with actual stakeholders, but that might be something to consider for the future.’

Amsterdamâ&#x20AC;&#x2122;s

Work in progress

second

urban stage A unique urban stage is currently being developed in south Amsterdam: Zuidas. The area development is a well-balanced mix of living, working and recreation. By Ka s p e r M a r i n u s , p h o t o g r a p hy : S j a a k He n s e l ma n s ; J o s S e n t e l ; J o h n S c h a f f e r, Go o s va n d e r Ve e n / Hollandse Hoogte

Although development of the area is still in full swing, it is already an international central business district

Mainly dedicated to office space, the Mahler4 area in the heart of Zuidas also has room for nearly 200 apartments.

The public space can be used for recreational and business purposes.