Call it the "euro debt stress test". It's the impact of the on-going debt crisis in Europe, which is encouraging investors to re-evaluate their strategies. And in the current economic climate, investors are increasingly saying that the European market which is best passing the test is Germany. Indeed, according to research released by the Royal Institution of Chartered Surveyors (RICS), Germany is "the target country for international investors in 2012". And investors surveyed by Ernst & Young rated the German market as either "attractive or very attractive".
But unlike some of its European partners, where capital cities attract the lion's share of investment, the decentralized German market requires specific knowledge and understanding of local real estate conditions. Which is why MIPIM 2012, where some 19,000 delegates including 4,200 investors will gather, is turning the spotlight firmly on the German property market via its Germany Country of Honour programme.
German real estate has been particularly resilient in the face of the global economic upheaval, benefitting from the perception that the market is secure rather than spectacular. There has been encouraging demand across the board in retail real estate, office property and logistics and industrial property. Choosing Germany as the Country of Honour is an acknowledgement of the international interest in the German market. An extensive conference and networking programme should aim to provide delegates with a thorough understanding of the diverse German market and bring together the leading German and international real estate communities.
In 2012, MIPIM will welcome leading German investment companies and financial institutions that have been active inside and outside their national market. Among them, Corpus Sireo, Deka Immobilien and Deka Bank, Allianz Real Estate, ECE Projektmanagement and DIC Deutsche Immobilien Chancen. In addition, the conference programme will bring together Bernhard Berg, Managing Director of IVG Institution Funds and Jean-Michel Six, Chief Economist for Europe at Standard and Poor's, to discuss international investment opportunities. And one of the high points will be the keynote address on the challenges brought on by Europe's financial crisis delivered by former German Foreign Minister Joschka Fischer.
Institutional investors get new summit
With over 4,200 international investors heading to Cannes, this year sees the introduction of RE-Invest - a top-level gathering of investors from pension funds, sovereign wealth funds and insurance companies including GIC (Singapore), Teacher Retirement System of Texas (USA), First Swedish National Pension Funds (Sweden) and the Dutch Railway Pension Fund (Netherlands). Taking place on March 6, the summit will involve round table discussions on the future of fund management and whether new business models are the order of the day. For the first time at MIPIM, a wide-ranging event will enable international institutional investors to meet and discuss issues that are specific to their business.
And reflecting the increasingly diversified state of the international real estate market, the conference programme is bigger than ever. Among the 60 conferences scheduled, delegates will have the chance to hear industry leaders discuss investment opportunities across Asia, the London versus non-London market in the United Kingdom, risks related to the euro zone crisis and recent legislation impacting the Spanish market.
More than ever, there is not one property market, there are several property markets, both in terms of geography and business sector. In an increasingly complex economic and market situation, it is crucial that MIPIM offers a targeted approach to understanding current and future trends impacting international real estate.
New year new themes
MIPIM 2012 sees the launch of three major new themes, accompanied by dedicated exhibition space and conference panels. For the first time, it will host the Building Innovation pavilion, showcasing innovative solutions for sustainable real estate development. Among them, Siemens' energy renovation operation for Taiwan's Taipei 101 tower. The pavilion will also host a series of presentations and discussions featuring international architects working on the front line of sustainable urban development solutions.
The second new exhibition zone is the Industrial and Logistics Lounge, bringing together leaders in the field of industrial and logistics projects. The logistics sector is particularly interesting at the present as online retail purchasing and the development of transport infrastructure in countries like Poland, are leading to the development of new logistics hot spots.
And with London having poured billions of pounds into real estate and infrastructure re-development around the 2012 Olympic Games site and Poland and Ukraine gearing up to host the Euro 2012 soccer championships, it may come as little surprise that this year's MIPIM will take a long look at the opportunities (and risks) that major sports events represent for real estate investors.
Major projects to showcase
With 75 countries sending delegations to Cannes, MIPIM is set to welcome a truly eclectic and international array of major real estate projects on the exhibition floor. Among the French projects, Eco-Vallée Nice Cote d'Azur is a massive 10,000 hectare development destined to be built over 15 years and including R&D facilities and a business district. Nearer to Paris, the Auchan Group will be exhibiting four architectural projects for Europa City for the first time. Located to the north east of Paris and around Grand Roissy, Europa City is set to open in 2020 with the winning project being decided in autumn 2012.
From Germany, the Stuttgart 21 urban development will be on show, alongside Frankfurt's Skyline Plaza development and the Main-Tor redevelopment. MIPIM will see a host of major Russian projects ranging from the Skolkovo innovation city development just outside of Moscow, to the Imereti Lowland resort which will host media and official partners of the 2014 Winter Olympics.
Asian projects will be in abundance, with China's Shijiazhuang International Convention and Exhibition Centre on display, Singapore's CX 2-1 office complex being promoted and South Korea's NCD 2015 mixed-use development, set to open on the outskirts of Seoul in 2015, also being showcased.
With Germany at the centre of MIPIM 2012, more investor-oriented events than ever before, the introduction of Building Innovation, Logistics real estate and Sports property and the quality of the projects that will be on show and present in the Awards this year, 2012 looks like being a vintage year for MIPIM.