PROPERTY & people from around the globe in search of INVESTMENTS EXPOsed locally in Munich
your inews24.co.uk team was at the #EXPOREAL in Munich in Germany from 6-8 October 2014
With the Oktoberfest closed just a couple of hours ago, we made our way to the 17th International Trade Fair for Property and Investment at Munich’s Messegelände by tube. The U2 train transports uniformed people weaponed with suitcases filled with catalogues ready to sign deals and eager to attract investors for new opportunities. We do spot some tired people with the Oktoberbest blues. However once in the halls A1, A2, B1, B2 and C1, C2 there is concentration in the air, pure concentration and focus.
The next three days to come are important dates in the calendar of any professional involved in the real estate sector. With 1655 stands from 34 countries, and a wide variety of sessions at the expo real forum but as well the planning & partnerships forum, special real estate forum, the investments locations forum or even a forum called discussion & networking forum, the 36.900 visitors were able to engage in what they came for: making contacts.
Our special treat this year: the visit at the Barcelona-Catalonia stand. And clicking here you can watch the informative mini-tour by the representatives of the Catalonian government (Generalitat de Catalunya) presenting the main projects of its public company Incasòl which is attached to the Ministry of Territory and Sustainability followed by our exclusive interview with the Head of International City Promotion of the Barcelona City Council (Ajuntament de Barcelona) about tourism, hotel beds and vacation rentals in Barcelona.
Whilst the controversial vacation rentals boomed in both, visitors and protesters against it, in Barcelona this summer, we encounter yet another form of alternative accommodation at the special real estate forum of the EXPO Real, namely the so-called: “Apartment hotels”. To which degree service is offered in these accommodations is explained by Arnette Gregorious on the basis of a chart she created. And together with Prof. Dr. Max Schlereth they try to establish during this Hospitality Industry Dialogue whether “Apartment Hotels” are “the new stars in the hospitality sky?”. From the real estate investors’ point of view, Prof. Dr. Max Schlereth, who is a Member of the Board of Derag Deutsche Realbesitz AG+Co. KG, describes some further variable cost-cutting factors such as saving on additional credit card costs or cleaning costs due to the lower number of total check-ins into the apartment hotels as the average stay is much longer in comparison to that in traditional hotels, all resulting in profit?
And moving away from the additional profit margins in search of projects that advocate social justice, we then arrive at the session on the care facility real estate industry during which Andreas Bader, Chief Executive BG Immobiliengruppe comments that investments into care facilities are “meaningful ones that do pay off”. Sounds like a “safe bet”.
The good old German “safe bet” concept, however, is one that rather deters than attracts the Middle Eastern investor, we learn at the investment locations forum featuring the Middle East moderated by the Deputy UK News Editor of the Financial Times herself, Clear Barrett. No, Middle Eastern investors are not just after “trophy” assets in London and Paris, the “trophy” asset idea is 50 years old but, yes, “returns” rather than “safe bets” appeal to those investors, we learn from Yahya Abdulla, the Head of Middle East Capital Markets at Cushman & Wakefield. No Sovereign Wealth Fund has to be in a certain location but rather it depends on who your partner is. Henry M. Williamson, Jr. from Chicago is such a partner. He is the CEO of InterCapital Advisors and he recalls with a smile that whilst in 2009 when he founded his company “people weren’t doing much, so it was easy to get meetings” today he successfully assists his clients invest their billions. Even there is a current trend towards investing in Central & Eastern Europe as “diversification” against the dollar must take place.
[picture (from left to right): Iryna Pylpchuck, Henry M. Williamson Jr., Clear Barrett, Yahya Abdulla]
Moreover, the young population in the Middle East are building economies for their future and generate employment for the even younger population, which, in turn, is fundamental for building economies. Local firms are taking the lead. Families manage their own local business and focus on developing it.
The expert panel of the session on Russia included the Vice Chairman of the Moscow Region, the Vice-Governor & Chairman of the Committee for Economic Development and Investment Activity of Saint Petersburg, Leningrad Region and the Advisor of the “Invest in Russia” Agency based in Moscow. The Managing Director of Quantum Potes, Fenwick -after he recalled his stages when he entered the market and there was “a shortage of everything .. residential apartment, suburban, offices, shopping”- sums up Russia as an investment location on which he advises to “come on it but be careful”. In the talk he especially draws on the “regular or rather irregular changes in the tax system” and warns that these “aren’t even properly announced” and “bureaucracy” issues.
However not only representatives from Moscow, St. Petersburg were present at the property fair, during the question time after the session even a representative of the Tula Region invites the visitors to their stand.
[picture (from left to right): Denis Butsaev, Timothy Fenwick, Andreas Schille, Dmitry A. Yalov, Mikhail Lubenets]
“Spain is perhaps the market that is talked about here more than any other, the speed and magnitude of the recovery that we have seen last year or so is pretty unrivaled, … some might argue that the market is getting a little ahead of itself..” were the introductory words by David Hetcher, editor of Real Estate Capital and panel moderator of the Investment locations forum on Spain before analysing its potential, opportunities and risks with the remaining panel members Antonio Cuenca, Markus Lemli, Thomas Schengler, Norbert Müller and the Executive Director of “Invest in Spain” ICEX, a governmental agency of the Ministry of Economy and Competitiveness, Jose Carlos de Quevedo. One thing concludes always, there’s difficulty for prices to drop in Spanish locations such as are Barcelona, Mallorca, Madrid or Marbella mainly because these are not mere locations but have become trademarks.
A city as a trademark? Well that definitively was proven in the Discussion and Networking Forum titled “City Development in Europe” where the CEO of Barcelona Global, Mateu Hernandez described the various activities behind strengthening the “Barcelona brand” and its mission to “making Barcelona one of the best cities in the world to attract and develop talent and economic activity”.
Remember you can watch our video shoot of the specific projects of the Barcelona Catalonia crew and an exclusive interview with the Head of International Promotion of the Barcelona City Hall, clicking right here: Barcelona Catalonia video .
Text, video, editing: Ilona Kepic
