Immo-news.net : the real estate information website

Investor confidence, major city delegations and ambitious project presentations were all present in abundance in Cannes this week, as some 18,000 delegates from 81 countries met for business at the 21st edition of MIPIM, the world’s property market (March 16-19).

Signs of an improving market were underlined by real estate services firm Jones Lang LaSalle, which came to MIPIM predicting that European transaction volumes will increase by as much as 30% in 2010 to around €90 billion.

On the world market, Cushman & Wakefield research, conducted in 56 countries, predicted that investment this year will hit €362 billion, a 30% increase on 2009, with China heading the list of investment destinations.

“There were huge amounts of uncertainty a year ago. The first quarter of 2009 was a serious low point in terms of investment volumes. Since then, there has been a steady quarter-on-quarter climb in transactions,” noted Mike Strong, Chairman, CEO & President EMEA at CB Richard Ellis. “While leasing levels have not recovered in line, the final quarter of last year showed a significant improvement in London and Paris which trend has continued into 2010.” Mike Strong predicted deals would be concluded in Cannes, describing MIPIM as “one of the hardest working weeks of my year.”

CBRE chose MIPIM to release the results of a survey of 270 European real estate investors. According to CBRE, Europe was identified by 60% of investors as their main target in 2010, with Asia also figuring strongly. Investors are hungry for prime properties in the United Kingdom, particularly in London. However, the limited supply of such properties is encouraging equity-based buyers to extend their search to other major European cities, particularly in Germany and France.

Among the 1,118 investment companies (10% up on 2009) in Cannes, no fewer than 180 were attending the event for the first time. Two of the newcomers were major sovereign wealth funds, China Investment Corporation, headed by Collin Lau, Managing Director, Private Market Investment Department and Mubadala Development Company (Abu Dhabi) led by Alex Khochafian, Manager, Strategic Initiatives, both in MIPIM to identify new international investment opportunities.

MIPIM also welcomed a plethora of top investment and development heavyweights including Heron International’s Chief Executive, Gerald Ronson, Segro Chief Executive Ian Coull, Olivier Piani, CEO, Allianz Real Estate GmbH, Talal I Almaiman, CEO and Chairman, Kingdom Real Estate Development Company (Saudi Arabia) and Justin Chiu, Executive Director, Cheung Kong Holdings (Hong Kong).

International bankers chose MIPIM to discuss and evaluate their strategy for releasing prime properties that are currently on their books. The banks are expected to drip feed the market, with Lloyds Banking Group reported to be preparing to release two major commercial properties in the near future. “Banks are aware that there is a shortage of prime properties, especially in London, but they don’t want to run the risk of flooding the market,” said a senior real estate consultant.

And renewed banking activity in property was evident as BNP Paribas Real Estate announced it is extending its international coverage with alliances in Poland, the United States and Switzerland to provide full real estate consultancy, leasing, investment and project management services.

Inside the MIPIM exhibition halls delegates were greeted by a collection of major new and on-going projects ranging from afar afield as Bahrain to Korea and Egypt. One of the largest on show was the Seoul-based Yongsan International Business District, designed by Daniel Libeskind and covering some 570,000m². From Egypt, Rooya Group announced the launch of the new Stone Towers business park, situated on the outskirts of Cairo and conceived by world-renowned architect Zaha Hadid. And from the Middle East, delegates had the chance to follow progress on the €1.8 billion residential, commercial and retail Bahrain Bay project, situated on the north-eastern shore of the capital Manama and designed by Skidmore, Owings and Merrill.

As co-hosts of the UEFA Euro 2012 soccer tournament, Poland’s real estate sector has received a major boost from infrastructure, tourism and stadium projects associated with the event, including over €4 billion of investment in Warsaw’s infrastructure. Tournament host cities Warsaw, Poznan, Wroclaw and Gdansk promoted themselves actively in Cannes where Poland celebrated its status as MIPIM 2010 Guest of Honour.

Heading the 187-company (50% up on 2009) Polish delegation, Undersecretary of State in Poland’s Ministry of Economy, Rafal Baniak, told MIPIM delegates that his country offered significant investment opportunities. “The stable economic situation in our country creates a profitable investment climate and this encourages international co-operation, especially in the fields of infrastructure, construction and real estate,” he noted.

Succeeding Poland as MIPIM 2011 Guest of Honour is the United Kingdom. Mayor of London, Boris Johnson, attending MIPIM for the second consecutive year to promote investment opportunities in the British capital, told delegates, “I’m delighted that the choice of ‘Country of Honour’ has been bestowed on the UK for next year’s MIPIM. UK cities, led by London, play an enormous role in MIPIM’s success each year.”

“The United Kingdom has played a pivotal role in the launch and development of MIPIM and the international real estate industry. British companies were among the first to understand the importance of working beyond national borders and the opportunity that MIPIM offers. It’s a pleasure to be able to recognize the best of the United Kingdom’s property business in Cannes, next year,” commented MIPIM Director Nadine Castagna.

Boris Johnson was one of over 200 top city leaders to attend MIPIM, where some 90 mayors met for the second Mayors’ Think Tank, devoted to discussions on sustainable urban policies.

“Cities are a key driving force behind urban development and at MIPIM we have representatives from over 400 cities and local authorities, as well as some 200 senior political figures and their numbers grow each year. The presence of cities and their commitment to public-private partnerships, makes them an essential part of the real estate and MIPIM mix. This year we brought the cities together in networking sessions, provided a dedicated series of conferences around urban issues and had the opportunity to listen to a fascinating Keynote Address from Mayor of Stockholm, Sten Nordin, on his city’s highly-developed approach to sustainable urban policy.” said Nadine Castagna.

source : MIPIM