2 European Action Coalition for the Right to Housing and the City 3 INTRODUCTION

fter 25 years, for the first time real estate managers, asset dealers and city Asellers have not been alone at this year’s global property party “Mipim” in Cannes. The European Action Coalition for the Right to Housing and the City, together with protesters from the region, have also been there. At our “Anti Mipim Tribunal” we presented cases from 12 countries which showed some of the consequences of the business which was celebrated at the Mipim. We accused of concrete business actors and local authorities for violating the right to the city. We stressed that these violations are not isolated cases but that they in Cannes alongside the annual are necessary parts of a structural MIPIM event – the international process of commodification, market for real estate professionals, privatisation, financialisation and real which also calls itself the world’s estate speculation. We demonstrated property show… These cases why this profit-orientated business illustrate and are paradigmatic of should be replaced urgently by what is happening to our homes and alternatives that are orientated on the our cities, what is actually the type of right of everybody to a have secure, business that is prepared and sold adequate, guided by the everyone’s at MIPIM, whose mechanisms and right to a healthy, non-segregating social and economic consequences and affordable place to live. And we must be shown to and analysed by started to discuss HOW “Mipimism” society, in its mechanisms, as well as – which is another word for the social and economic consequences neoliberal ideology of real estate of it. In addition to the specific cases capitalism – really can be stopped of the various European cities, the and can effectively overcome. first chapter is the final statement that results from collective analysis This publication aims at of the movements of the European presenting the different cases Alliance on Mipimism, its critique that were introduced by social and alternatives. movements and organizations at the European Action in the “Anti The European Action Coalition Mipim Tribunal” which was held for the Right to Housing and

4 elsewhere took action to demand lower rents, the end of all evictions, especially those driven by real estate speculators, the State and the Troika, the construction of adequate levels of social housing, and to demand an end to the overwhelming debt burden that has been placed on ordinary citizens, mass housing and the public budgets. Globalised financial markets and profit-oriented transnational corporations are controlling large sections of land, buildings and the housing stock in many European countries. It is our strongly held view that across Europe housing must be based on the needs and rights of people and the City is made up of a diverse not those of profit. range of groups, organisations and social movements and originated In order to meet the local from meetings held in Germany housing needs it is necessary that and in Greece in 2013. We say new housing construction and STOP to the misery caused by a significant part of the existing speculation, financialisation and housing stock in all towns and austerity measures. We want to cities of Europe, as well as housing promote an ethical and just approach finance and land, are excluded whereby housing is a human right from markets and organised under and a human necessity and all a direct public and decentralised people without discrimination, have democratic control. real access to the cities in which they live. At the same time all tenants, mortgage payers/holders, dwellers October the 19th we prepared and homeless across Europe time, the European Day of Action for The by international law must have Right to Housing and the City. enforceable rights, which guarantee Groups from various European ciities common standards for the security came together: Amsterdam, Athens, of tenure, affordability, accessibility, Berlin, Budapest, Dublin, Geneva, construction quality, democratic Lisbon, Lorient, Malaga, Paris, participation and fairness. Poznan, Rhine-Ruhr region, Rome, Rouen, Warsaw and groups from March 2014

European Action Coalition for the Right to Housing and the City 5 6 SUMMARY INTRODUCTION 4 STATEMENT 8 ACCUSATIONS 16

Habitat et Participation 17

Radical Housing Network 19

Droit au Logement 25 MieterInnenverein Witten u. Habitat Netz e.V. Witten, Ruhr 33

Encounter Athens 41

European Action Coalition for the Right to Housing and the City 49

Unione Inquilini 51

Bond Precaire Woonvormen 53

Habita - Colectivo pelo Direito à Habitação e à Cidade 63

Plataforma Afectados por las Hipotecas 67

Istanbul Urban Movements 71

Team Cover and graphic design: Levi Olivares Illustration: Jorge Costa Proofreading: Pedro Ferreira Print work: Opusculo Artes Gráficas | The European Action Coalition for the Right to Housing and the City [email protected] We will have a website soon you can also have information on www.reclaiming-spaces.org

European Action Coalition for the Right to Housing and the City 7 STATEMENT STATEMENT BY THE EUROPEAN ACTION COALITION FOR THE RIGHT TO HOUSING AND TO THE CITY 25 YEARS OF MIPIMISM IS ENOUGH! uring the past 25 years some become private, purely financial, of us have been promised assets! NO to their reduction of private homes, but all we the city, our common habitat, to a Dgot is debt and the threat of evic- globally competing business place, tion. Others paid rising rents, and filled only with commodities! NO to what we got is a lack of mainte- the plundering of our environments nance, and gentrification. Many and the urban heritage of humanity! have been pushed out of our neigh- NO to their workfare, precarisation bourhoods; others are homeless or and control of the inhabitants! NO to badly housed. During the past 25 their speculative banking systems years much financial investment and their strategies to force us into has come through our cities, but at debt! NO to the public bailout of the end the vast majority of us are their crisis, their crashes! NO to poorer. In the view of the financial their systems of greed, structural investors we, the producers of their irresponsibility and profit extraction! buildings, the inhabitants of their assets play only one role: We shall pay for their business and loans; be LOOK BACK IN ANGER it as tenants, as mortgage payers When the first Mipim took place or as citizens and tax payers. Now, 25 years ago the crisis of the ford- after 25 years of mortgage-induced istic “factory society” with its mass human disasters, after all the misery housing machines was already 20 produced by privatisations, after years old. In reaction to that crisis all the losses for our communities, the neoliberal ideology of homeown- after all the economic crashes and ership has been normalised and the after all the huge socialisation of the “right to buy” progressively replaced costs it is really time to say “NO” to the right to equal housing rights. this business. NO to their destructive In 1989 the time was ripe for ideas of a total market, where hous- the lift-off of the property business es and other social infrastructure from its territorial relations and the

8 freeing from its role as a mere ser- Much of this capital was invest- vice for industrial production and ed into housing and commercial social reproduction. The real estate real estate, making living in the business became an “industry” in European major cities more and its own right. more unaffordable. Tourism, urban entertainment, the concentration of As Mipim was one of the main retail, mega-events and large scale events promoting this development, urban projects transformed many we may call the corresponding ide- city regions into agglomerations of ology and practice “Mipimism”. The transnational property investments. Mipim since 25 years has been cel- ebrating the crimes of financialised At the same time financial ac- property speculation by organising cumulation and new technologies an annual spectacle for the rich and of shadow banking promoted the their servants with business talks on development of huge transnational yachts and streams of Champagne. mortgage and housing bubbles. The crashes since 2007, the public “Mipimism” is the cynical cele- bailouts, the fundamental crisis of bration of the systematic disposes- the EU and the mortgage misery sion of the majority of inhabitants in southern Europe during the past from their right to the city by a mi- years… All this is the consequence nority of global real estate managers of 25 years of Mipimism. and investors.

Mipimism from its beginning was DIAGNOSIS OF THE RESULTS warmly welcomed by market-driven Let’s have a look at the latest re- governments in Europe. Germany sults, as they appear to the members for instance, after a long political of our European Action Coalition: In disputes, in 1989 abolished a law Southern Europe and Ireland the which protected the huge sector “Troika” (European Commission, Eu- of not-for-profit rental housing from ropean Central Bank, IMF) reacted to being sold off. Soon afterwards the the debt crisis with conditions which iron curtain fell and Eastern Europe fundamentally attack the housing became an El Dorado for privatisers rights of ordinary people. Instead and speculators. At the same time of liberating the real use-value of the enlarging European Union moved the (i.e. foreclosed) housing stocks in the direction of neoliberal market from financial abuse and bankrupt- policies without a counterpart in cy by transforming it into social, social rights and equality. Step by public or common housing, the step, all barriers for the free flow of Troika enforced a bailout of the failed globally accumulated and heavily mortgage banks without protecting concentrated capital were abolished. the indebted homeowners. As a

European Action Coalition for the Right to Housing and the City 9 STATEMENT consequence there has been a dra- whole life. Because of the austerity matic increase of housing precarity policies enforced by the Portuguese and forced evictions in all countries. government on the orders of Troika, people are also losing their jobs and In SPAIN for instance economic can’t afford the loans anymore. In growth during the past decade was its “memorandum of understand- mainly based on tourism and real ing” with Portugal the Troika also estate. The result was an enormous imposed the full liberalisation of the housing bubble. At the same time no rental housing market which means social housing provision was estab- rent increases and evictions. The lished. In order to get a house peo- new urban renewal plans and infra- ple were forced to slip into the debt structure are also a part of the aus- system and borrow money at high terity regime. Consequently, there risks and on bad terms. When the is a deep transformation of city cen- bubble burst people were not able tres. Local residents and traditional to pay their mortgages. 200.000 commerce are replaced with hotels, families have been evicted, 400.000 franchised shops, hostels and luxury foreclosure processes are going on. houses. Within a few years this has At the same time the unemployment caused a fundamental change in the rate is 27% and 3.5 million homes city’s social composition. The work- are empty. The state bailed out the ing classes will have no space inside banks resulting in extraordinarily the central city districts any more. high public debt, being a threat for the whole economy not only in In GREECE the housing prob- Spain. Recently, a new phase of lem is a direct consequence of the selling out real estate has started in austerity policies implemented by Spain. Dozens of international funds the Greek government following have started to acquire homes and the Troika adjustment programmes real estate companies for very low and consecutive memoranda since prices from bad banks, public and 2010. Housing precarity has in- private shareholders. This business creased because of the expansion is also glorified at the MIPIM. of credit and dependence of access to housing from bank lending in pre- Rather similarly, PORTU- vious years, but also because of the GAL during the past 25-30 years heavy taxation that the government promoted private mortgages and is imposing on private property the creation of a housing bubble and the increasing housing costs. as a “solution” for mass housing. People can no longer pay for their Underpinning logic: the more credit houses because of rising unem- is available, the higher the prices of ployment (almost 30% at the end of houses will be. Now, after the crash 2013), reduction of income, cuts in most families are indebted for their pensions and wages leading to an

10 acute impoverishment of wide parts budget for public housing. As part of the population. of its austerity measures the Italian government has also cancelled As a result people are indebted the housing benefits for tenants, to the banks, the state and social including low-income groups. This security funds. Inability to pay and decision now is forcing 300,000 poverty are penalised and peo- families which receive these benefits ple are threatened with income, into a situation where they cannot pensions, movables and property pay the rents. confiscations. The protective frame and moratorium of evictions that The results of this political pro- was in place until the end of 2013, gram for deepening of the housing is now being withdrawn and housing crisis are highlighted by the fact auctions and evictions are starting to that today over 250,000 families are take place. But it is not only private living under the threat of eviction. property and housing that is under In 80% of the cases the reason is threat. As part of the adjustment non-payment because of due to a program a huge privatisation and lack of income, unemployment or clearance programme is taking similar problems of the users. The place, putting all public land and number of evictions has doubled property on sale to international and since 2008, coinciding with the burst local investors in order to increase of the housing bubble. There are public revenues. Housing precarity more than 650,000 households on and auctions are also used as a way the waiting list for public housing, to produce a slump in the real-estate while more than 4 million houses market in order to provide for better are empty. This clearly shows the ‘investment opportunities’ further negative effect of the crisis on the jeopardising the right to housing working class and the failure of and the city. neoliberal policies.

Also in ITALY housing provision IRELAND has been the No.5 had already been weakened by the among the heavily indebted Euro liberalisation of the rental market countries under Troika’s command. and the total withdrawal of the pub- To a large extent the Irish crisis was lic sector from housing. In addition, a result of the commodification of the EU ‘fiscal compact’ enforces housing and cities which intensified the reduction of the budget by 900 under what was called the ‘Celtic billion euros over the course of the Tiger’ era. During this period house next 20 years. As housing policies prices increased by 300%, a debt haven’t been a government priority bubble emerged and the domestic since a long time, this means that class of bankers and property devel- there never will be an adequate state opers amassed huge fortunes. The

European Action Coalition for the Right to Housing and the City 11 STATEMENT collapse of the housing bubble virtu- ownership has massively increased, ally bankrupted the banking sector tenants have been pushed into as a whole, leading to Ireland’s bank insecure tenures. A third of renters bailout and causing a sovereign debt are in the private sector and a large crisis from which the country has yet number of them are impoverished. to recover. Meanwhile, the impacts Squatting residential properties on housing have been just as severe. has been criminalized in a general There are 100,000 mortgage holders shift to shore up property rights. We in serious mortgage arrears. At the are seeing a massive deregulation same time, since 2008 the national of the planning procedures in the housing waiting list has doubled. interest of developers. Demolition The number of families in Dublin and rebuilding of social housing is becoming homeless in recent years failing to provide affordable homes has also doubled. Meanwhile, there for local people and leads to ever are approximately 270,000 empty more reduction of a secure council houses as well as many empty and stock. Thus homelessness has unfinished ‘ghost estates’. Many of risen steeply with funds solely for these were built in the isolated rural management, rather than break- communities with poor access to ing the cycle. It is readily apparent schools and other facilities. More- that change will not occur from over, the government continues to representational bodies, due to favour a housing strategy involving the fact that a third of parliament debt-based private homeownership. members are buy-to-let land- For the many people who cannot ac- lords. “Revolving doors” policies cess credit, the only housing policy between local municipalities and (there is no housing strategy) is that private developers are common of an unregulated and inadequate practice and are showcased private rented sector and the hand- spectacularly at MIPIM. These en- ing over of the little social housing sure profits for an elite of housing that remains to housing associations. speculators and investors at the cost of ordinary tenants. Within the past 25 years housing did not only become a disaster in In FRANCE during the 25 years southern Europe and the periph- of MIPIM the country’s huge heri- eries. Even in the former “welfare tage of public housing and public states” of Western Europe privatisa- urban planning has been com- tion, financial market driven policies moditised. Rents have doubled, and austerity measurements have prices of real estate have tripled. caused a huge housing crisis. While speculation allowed an ex- cessive accumulation of capital In BRITAIN the council housing the resulting high costs for housing stock has been decimated, home reduced the income of the middle

12 and working classes. During these people are increasingly forced to 25 years slums developed around accept temporary rental contracts the main cities. Courts ordered without any tenant’s rights. “Vacant 2,214,687 evictions and the number property protectors”, commercial of homeless tripled. Today 2 million companies that were born from households are on the waiting lists the interests of real estate, have for social housing while 2.4 million found a way to bypass all tenants’ housing units are vacant. rights completely, thus setting a new norm for the right to housing: In the NETHERLANDS a broad it will be precarious. social rental sector had been built from the beginning of the twenti- In BELGIUM the governments eth century that gave access to (federal, regional and municipal) affordable good quality housing in general have failed to create a to approximately 1/3 of the Dutch housing policy that respects the population (5 million people in constitutional Article 23 concerning 2012). But this social housing sys- the right to housing. Thus, they tem has been under attack over the failed to ensure affordable (social) last 25 years. The social housing housing for those who need it in the corporations got entangled in a long term. Increases in the cost of leak to the capital market. The so- real estate and the gentrification cial housing stock was privatized. of cities has resulted in a reduced Thousands of social rental homes access of low income households to were demolished and were floated housing, to evictions of residents and in megalomaniac urban renewal in overall to the negation of the right and gentrification programmes. As to housing. Especially in the main a result the social housing stock Wallonian cities, housing speculation has been seriously reduced. At the is a primary reason for the process same time the Dutch government of gentrification and therefore the has been executing neoliberal displacement of the original popula- policies promoting privatisation, tion. In Charleroi, Liège, Brussels, as home-ownership and high rent in- in Louvain-la-Neuve, in the province creases. Currently the government of Brabant, people can no longer is paving way for a massive sell off afford to live in their hometown and of the social rental housing sector are moving to more affordable ar- to foreign investors. Also since eas. In Brussels about half of the 2013 it is further taxing the social children already live in inadequate housing sector millions of euros housing, – unsafe or too small. Most to pay for the debts of the crisis. quality housing is very expensive. Through these dynamics, the The demand for social housing is shortage of affordable housing in most pressing in Brussels (40,000 the Netherlands is growing; hence households waiting).

European Action Coalition for the Right to Housing and the City 13 STATEMENT

Also in GERMANY the former solutions. But at the same time sectors of non-profit and public public banks and governments housing have been commercial- are continuing to sell housing ised and privatised. Social hous- companies to private business ing support was heavily reduced controlled by financial investors. while the conditions for transna- tional financial investments were Mipimism has not only been massively improved and urban active within the European Union. development was subordinated to Also beyond the EU borders the the logics of location competition. neoliberal transformation of cities Since 2000 more than 2 million into assets of postmodern business rental housing units were sold. Ap- models is causing enormous cost for proximately 900,000 housing units the people, their urban heritage and today are under direct control of the environment. transnational financial investors. At the level of the housing and In the COUNTRIES OF EX-YU- facility management the results GOSLAVIA MIPIMism arrived only were disastrous: forced to extract after the wars had ended, therefore a high return and interest from an quite late and in the form of selling aged housing stock, landlords off of infrastructure and natural reduced maintenance and the resources. The effects of home- workforce in their management. In grown and international privatisa- affected neighbourhoods nobody tion have been disastrous. They seems to be responsible and the lead to mass impoverishment, living conditions of the precarious unemployment and critical levels renters are worsening. Some of of precariousness. Property devel- the companies “defaulted”, others opment is almost completely de- meanwhile use the growing glob- regulated and politicians are able al demand for “secure” financial to sign off public assets without assets in German property to refi- due process. The current uprisings nance their business and sell their in Bosnia are a good example of shares at the stock exchange. At the effects of the marketisation of the same time the intensifying public assets and the deregulation housing crisis in German cities of planning and political power allows high rent increases. Under which go hand in hand in the states these conditions improvements of post-war Yugoslavia. of the housing stock can also become profitable. But who can In TURKEY the neoliberal afford it? The social costs for urban regime was adopted after “repairing” of the consequences 2001 when the country confront- are enormous. Some municipali- ed its most serious econom- ties and regional states seek for ic crisis. Gecekondu housing

14 (informal housing) which for The Mass Housing Administra- decades enabled poor dwellers tion (TOKI), directly linked to the PM to meet their housing needs by and the Ministry of Environment and squatting state land was no lon- Urban Affairs, has hegemonic pow- ger tolerated. ers over local governments. These institutions together with pro-gov- To this end, starting from 2002, ernment municipalities are the relevant rules and regulations perpetrators of the neoliberal urban were enacted to prohibit squat- regime. In 2012, a new law which ting while urban transformation/ targets the transformation of areas renewal projects dominated the prone to ‘disaster’ risk was enacted. urban agenda with forced evic- The law does not emphasise ‘disas- tions and demolitions of settled ter’ in any part of the text except in neighbourhoods. Through these its heading. Its primary objective projects which target both infor- is to ease the implementation of mal and historical neighbourhood- regeneration projects through by sof low-income groups living in the the government. Property and centre, the neighbourhoods were housing rights are violated with this ”cleansed” and fell into the hands law which also dismisses the rights of developers, a process which that are secured by national and is a clear example of ”accumu- international laws and clears the lation by dispossession”. Those way for a new wave of plundering recognised as beneficiaries are of natural, cultural, historical values relocated to mass housing blocks and our cities. in the periphery, which means a violation of their economic, social and cultural rights. Because they have to pay for unaffordable bank loans upon their new houses, most sell their shares with debts and move out, more impoverished and deprived than ever. Tenants who can afford to live in the big city because of low rents in specific neighbourhoods do not enjoy rights to remain and are thrown out into the streets.

The city is being designed as an Ottoman Disneyland focused on the demands of high income groups, global capital and rich tourists.

European Action Coalition for the Right to Housing and the City 15 ACCUSATIONS

CONCRETE ACCUSATIONS AGAINST MIPIM-ATTENDEE At the “Anti-Mipim Tribunal” in Cannes members of the European Action Coalition for the Right to Housing and to the City pointed out the following concrete cases of violations of housing rights or of democratic and social principles in their cities by public actors and businesses attending the MIPIM: Habitat et Participation www.habitat-participation.be

European Action Coalition for the Right to Housing and the City 17 HABITAT ET PARTICIPATION ORGANISED GENTRIFICATION AND SEGREGATION IN BELGIUM

he BELGIAN organisations for objective to attire investor, who “Habitat et Participation”, makes a lot of profit. In Charleroi, “Solidarités Nouvelles” and fight against poverty to attract in- T“Réseau brabançon pour le droit au vestors can take a funny twist, via logement” place their accusations anti-begging regulations. The Gov- on the Belgian government and ernment set in motion mechanisms the investors at Mipim who should to punish and relocate insecurity via have moral and live up to their municipal regulations. Indeed, the responsibilities. They explain how big homeless and prostitutes run the risk developers, hand in hand with the of being penalised with sanctions, government, transform Brussels by put to jail or expelled from the city. Is constructing buildings for the middle there no other way to fight poverty?. and upper classes. This process is much faster than the construction of Organisations also demand that new social housing. Local authorities the government supports self-build prefer to sacrifice social mixing for the housing. Self-construction is a benefit of private funders. In the best real response to the housing crisis case, people leave their town or allow because it gives people access to them to build “lightweight” alternative training and to a real ownership. housing. However, in most cases, It’s a sort of empowerment. Far households are placed in a situation from demonising the investment of poor housing. They stay put and in our country, the meaning of our are forced to devote an ever larger work is to put people at the centre of share of their income to housing at its habitat and to apply the law to the expense of other vital expenses the City for citizens.Everyone has (food – health). the right to live in a place properly and adapted. To inhabit is not the For the past 40 years, without same as housing, it means to be investment, public authorities in involved in the world, to participate Charleroi let insecurity and crim- and contribute to its transformation. inality set up (much like London and Berlin). Politicians have let the 1/Lebreton Alexis et Mougel Grégory, land’s value drop. But now, the city «La gentrification comme articulation has been sold to private funders. entre forme urbaine et globalisation: The aim of all this investment has approche comparative Londres/Berlin», been to attract investment, bringing Espaces et sociétés, 2008/1n° 132-133, a huge profit.. All the investment had p. 57-73. DOI: 10.3917/esp.132.0057

18 Radical Housing Network radicalhousingnetwork.org

European Action Coalition for the Right to Housing and the City 19 RADICAL HOUSING NETWORK SELLING LONDON AT MIPIM MAYOR BORIS JOHNSON AND OVER 20 UK COUNCILS PARTICIPATING IN THE MIPIM CONFERENCE WHICH IS FUELLING THE HOUSING CRISIS

oris and councillors will be late. Residents all over London are meeting potential business being forced out of their communities partners in Cannes for the because of rising rents, and the building Bselling of public land and to approve of unaffordable ‘affordable’ housing ‘regeneration’ plans for more hotels, schemes to replace council housing.” offices, luxury housing, shopping centres in UK cities. Liliana Dmitrovic of ‘People’s Republic of Southwark’ added: “We As London councillors will be are coming to City Hall to show that setting off for MIPIM on Thursday our land, our cities, and our homes, there will be a ‘speak-out’ of people’s will not be sold by politicians to line the difficulties in finding affordable, pockets of developers. These are the secure housing in the UK. This will individuals responsible for the housing be followed by a presentation of crisis, and we believe that everyone three reports about the disastrous deserves a decent home.” impacts of corporate housing developers benefitting from lucrative The “Radical Housing Network” public contracts. A competition is in LONDON accuses the London being held to bring the most ‘For mayor Boris Johnson of cultivating Sale’ signs in protest at policy to a metropolis for global elites and marketise housing which makes forcing lifelong communities to profits for speculators, landlords disperse. Across London council and developers, and ignores the estates are being demolished housing need of the communities and unaffordable homes are experiencing ‘regeneration’. taking their place. They accuse Brent Housing Partnership and the Nic Lane from ‘Brent Housing corporate councils of Brent and Action’ says: “We, the people who Southwark, the construction firm have been affected by deals made at Willmott Dixon, developers Lend MIPIM by our “representatives” knew Lease, Berkeley Homes, and the nothing of these deals until it was too housing associations Catalyst and

20 Genesis that control the new housing and have less security of tenure. product. All these are making Even on the best projections there MIPIM-deals without transparency will be far fewer of these social or consultation with those affected. rented properties than the number of council rented homes on the original BERKELEY GROUP estate. The rest of the Genesis owned properties will be part-rent, IN HACKNEY part-buy. The cheapest part rent, In 1999 Hackney Council in part buy homes are £60,000 for London decided to knock down a 25 per cent share, and the total and rebuild Woodberry Down monthly outgoings (mortgage, rent Estate – one of London’s largest and service charge) are £812 – still housing estates, with roughly 2,000 too expensive for local people. council rented homes. But the big winners are not the tenants but There is a gulf between the developer Berkeley Homes. Some communal facilities provided blocks have been demolished and for most of the Woodberry Down some tenants re-housed, but most tenants and the ones in the buildings, including the oldest and neighbouring Berkeley Homes worst blocks of flats, with serious blocks for sale, where residents problems of damp, are still standing. can enjoy the exclusive use of a Meanwhile, two glossy tower blocks gym and swimming pool. Shops for sale by the developer stand on have been re-located to the ground the prime part of the estate, with an floor of private-for-sale 23-storey attractive view of the reservoir. Residence Tower. In the process the local people have lost their Recentre-scheduling has bakery, takeaway and betting shop. extended the re-development from five to eight phases going up to Woodberry Down is just one of 2032 – and Phase 2 is just starting. the projects all over London that have The number of projected homes has turned out to be nice little earners for gone up from 4,000+ to 5,557. Most Berkeley Homes. At the end of 2012 it will be for sale by Berkeley Homes was reported that Berkeley Group was at anything up to £1,000,000 for to pay a dividend to its shareholders a nice penthouse. Many will be for the first time since 2008 after a rented back to local people at rents rise in profits. The dividend would be of about £1000 a month. 15p per share in April 2013 as the first stage of a plan to pay out £1.7bn to None will be council rented – shareholders over the next decade. Genesis Housing Association will As a shareholder, founder Tony own the properties for rent, which Pidgley will receive around £1m will as a result be more expensive from the dividend.

European Action Coalition for the Right to Housing and the City 21 RADICAL HOUSING NETWORK

Berkeley snapped up cheap land rented and 36 will be part rent/ part after the 2008 financial crisis and buy. As Berkeley’s representative has been building in London to sell said on the phone in answer to the on to overseas buyers, spending question as to how much affordable £500 million on buying sites in the housing there would be, ‘We’ve four years to 2012. In the six months done very well on that’, pointing out to October 31 2012, Berkeley’s that you had to be earning at least revenues had increased 69pc to £30,000 to be able to afford the part £686m and pre-tax profits had risen rent/ part buy properties. These 36 41pc to £107.5m. At the end of 2013, properties are owned by Affinity Berkeley Homes reported a further Sutton housing association. The 19 per cent jump in profits. cost of part buying/part renting an Affinity Sutton one-bedroom flat will Berkeley Group is also the be approximately £823 per month developer of what has been named – Affinity helpfully points out that Kidbrooke Village in Greenwich. this compares to privately renting This stands on the site of what was a similar flat locally at £1000. The once the Ferrier Estate of more than Saffron Square development will 2,000 council rented homes. These include the 43-storey Tower with 414 were demolished over four years, homes for sale by Berkeley. Prices the last of them in 2013. Kidbrooke on the properties for sale run from Village will have 4,398 homes, which £334,500 to £1,050,000. will not be completed till 2029. In this case Southern Housing is the Developer St George is part housing association which will own of the Berkeley Group. Analysis the social rented and part rent/ shows that St George is repeatedly part buy properties. The shared using viability assessments which ownership properties are estimated persuade local authorities that to cost from about £800 per month increasing the number of affordable for a one-bed home to £1,300 a homes in its schemes will stop it month for a 3-bed home – this for meeting ‘industry-standard’ profit a 25 per cent share plus rent. Only margins of between 17% and 20%. 740 of the homes in Kidbrooke St George’s published accounts Village will be for social rent. The show that in the six years to 2012 homes for sale by Berkeley Homes its margins averaged 25.5% and are going for between £370,000 and its accumulated after-tax profits £800,000. were £268 million. Critics say that the viability system is not Possibly Berkeley Group’s ideal reflecting economic reality, and development is the Saffron Square that the public can’t test whether quarter in Croydon. There will be 794 viability assessments are based on homes of which none will be social reasonable assumptions because

22 Cannes, Tribunal Anti-MIPIM they are confidential. Common with financial mismanagement and sense says that a viability system barefaced lies. A revolving door that allows a developer to make between Southwark employees massive profits and yet deliver and Lend Lease, coupled with the few affordable homes must be fact that Lend Lease has paid for fundamentally flawed. Southwark to attend MIPIM, provides a striking illustration of the networks Police stations, fire stations of power that are leading to the sale and office buildings in London of our cities from under the noses are being closed and sold off to of citizens. Stoory of the South developers. Berkeley Homes has Kilburn estate – one of a number of bought Whetstone police station “regeneration” projects managed by for redevelopment into 83 flats and the Brent Housing Partnership which houses. Abell and Cleland House have seen local residents “decanted” used to be a ministry building. to make way for luxury apartments. Now prices for homes there start Perfectly adequate homes have at £1.81 million – call Berkeley been demolished, and in many Homes. They are also poised to cases nothing has been put in launch 190 Strand, another big its place, as money runs dry and office-to-residential project. building plans stalled. The pattern will be familiar to communities Lend Lease’s relationship with across the country. Southwark1 gave birth to one of the most appalling instances of community displacement, coupled Radical Housing Network

European Action Coalition for the Right to Housing and the City 23 Demonstration Paris

24 Droit au Logement droitaulogement.org NOVOX no-vox.org

European Action Coalition for the Right to Housing and the City 25 DROIT AU LOGEMENT AGAINST REAL ESTATE SPECULATION AND PRIVATISATION OF PUBLIC PROPERTY IN THE PARIS REGION

ctivists from the PARIS re- distribution of urban space and an gion accuse their public ever-increasing number of poor- authorities of commodifying ly-housed or homeless persons. Atheir neighbourhoods and of selling public land to speculators. MIPIM has no goal but profit. It offers to speculators – the most AN EUROPEAN powerful, the most well-supported by the banking sector, the most ANTI-MIPIM INITIATIVE: complicit with the political world For the past twenty-five years, – the opportunity to purchase Cannes has been the site of MIPIM land that is for the most part pub- (Marché International des Profes- lic. These lands are often sold sionnels de l’Immobilier) which, as as part of planned developments the name indicates, is a market for set in place by public authorities, the sale of land, mostly public, for or in huge bursts precipitated by high-value real estate projects. real-estate fever.

Meanwhile, since 1990, the Housing movements in fifteen housing crisis has worsened across European countries, brought to- the planet: gether to coordinate for the right to housing and to cities, have • Globally, one billion human be- decided to organise for the first ings have precarious shelter or time a campaign against the dev- live on the street; astating effects of MIPIM, and to • In France, as assessed by the expose them to the public. The Abbé Pierre Foundation, the ultimate goal is to reach a turning housing crisis is deepening, point in housing policy, in multiple particularly in the Paris region. countries and especially in Eu- rope, so that the right to housing MIPIM does not help humanity. and to cities is a right for every- It is the means for a small elite to one, and so that speculation – the enrich themselves at the expense source of extreme social and eco- of the huge majority of citizens. It nomic instability – gets contained leads to exclusion, the unequal and banished.

26 IN THE PARIS REGION, THE 33,000 of them have been waiting for more than six months, which is the POLITICS OF HOUSING AND maximum delay allowed by the law. DEVELOPMENT ELEVATE THE Finally, and a sign of the deepen- MARKET AND DEGRADE THE ing crisis, the last fifteen years have RESIDENTS. seen a resurgence of shantytowns in the Paris region – these had earlier been completely absorbed SIGNS THAT THE HOUSING into the city – and the number of homeless persons who are being CRISIS IS WORSENING rejected by emergency shelter ser- The Paris region, particularly in vices is steadily rising. its most dense zones, has been subject to intense speculation, nourished and maintained by public THE HOUSING SHORTAGE actors from the construction, finance IS AT ITS PEAK and housing sectors. This shortage is fuelling the soaring costs of property, real estate In 2012, the Paris region saw and rent: 545,000 demands for social housing – one household out of six – while • There is an under-production only around 50,000 social housing of new homes as a result of the units were distributed. Malthusian housing policies of many municipalities. In 2013, Nearly one million households 49,000 housing projects were receive public assistance to pay started, of which less than their rent, which is almost one out 15,000 were social housing. of every three. • This is far from the annual tar- gets established by the Paris There were 31,000 judicial de- region, which called for 70,000 cisions supporting evictions in new homes, including 20,000 the Paris region, representing one as social housing. quarter of the French total, and of the • This is even further from the French evictions carried out by the objectives set by François Hol- police, nearly half were in our region. lande, which would amount to 100,000 new homes per year, 41,000 regional households, rec- including 30,000 as social ognized and prioritized by the Law housing, if you count the Paris for the Enforceable Right to Housing region as representing twenty – the Dalo Act of March fifth, 2007 percent of the French popu- – are still waiting for rehousing. lation. The amplitude of the

European Action Coalition for the Right to Housing and the City 27 DROIT AU LOGEMENT

additional needs arising from operations in working-class the housing crisis is not taken neighbourhoods, limiting the into account here. construction of housing and, for the richest of them, blocking THE PUBLIC POLICY OF THE the creation of social housing. Many have preferred building STATE, THE REGION, THE offices rather than lodging. DEPARTMENTS AND THE 3.8 million m2 of office space are vacant – this is equivalent MAJORITY OF MUNICIPAL- to 60.000 homes, or almost ITIES IN THE PARIS REGION two years of regional housing construction! Land transfer HAVE PRODUCED THIS UN- taxes were increased in order PRECEDENTED SURGE IN THE to reinforce development and gentrification policies, particu- COSTS OF PROPERTY, REAL larly in the richest communes, ESTATE AND RENT. instead of fighting against the housing crisis by, for example, investing in the production of • In 2013, the average selling low-cost social housing. price of a new apartment in • The General Councils of the the region was €5900/m2. In seven regional departments, 2 2000, it was €3000/m . Prices particularly the richest among have doubled for no reason them, prefer to sell their property other than land speculation. to the highest bidder, rather than • The average private rent in the to entrust them to public housing region is €18.8/m2, against less developers. Because they profit 2 than €11/m in 2000. from the land transfer taxes, the • The price of land or buildings councils are discouraged from has tripled. It is in this sector fighting against speculation. The that public actors are the most sales of the ancient quarters of to blame. the gendarmerie and the real estate of the Parisian hospitals THE POLITICAL are emblematic. • The Paris region: Except for- BLAME THEY SHARE: financially supporting the con- • The municipalities are the local struction of social housing, the controllers of planning policies Paris region has not played its and the delivery of construction role as moderator and watch- permits. They have pushed up dog. Faced with real estate prices through their urban de- speculation and municipal de- velopment policies by initiating velopment practices, they’ve

28 found rising prices to be in priority, so that the 2009 their financial interest. We’ve economic crisis only mar- got to keep an eye on a num- ginally impacted real estate ber of vacant schools, which and rental prices (thanks may soon be fed to real estate to safety measures put in speculators. place by the Sarkozy gov- • The state (along with the com- ernment to protect develop- munes) is principally to blame ers and their financial back- for the situation. ers). Prices have declined in • On the one hand, since many countries, but France the middle of the last de- has the highest among the cade, the large-scale mar- rich countries, relative to ket-price sale of the prop- household income. [1] erties and buildings of • It should also be noted that public administrations and since 2002 the state, while enterprises has become a reducing funding for social governmental priority. As a housing, has also done noth- result, the housing crisis ing to reorganise the region has worsened. to make it more efficient • The state has also found a fi- against the housing crisis. nancial interest in the raising • The most recent law, which of land transfer taxes, allow- created the metropolis of ing it to offload certain social Paris, has been challenged responsibilities and duties by numerous politicians. onto the departmental gov- The abilities and organisa- ernments (such as welfare tion of this new municipal or- provision and the Parisian ganization are so vague that public hospital system). they can only perpetuate • Finally, and most important- the existing bad policies. ly, the state has encouraged • Greater Paris: the overheating of the real • In order to streamline estate and property mar- the organisation of the kets, using tax breaks to region, and with the promote the purchase of hope of pushing the new private housing by the city to the forefront of rich, and refusing to regu- the world’s metropolis- late the market, which would es, several laws have break the real estate fever been adopted that lay and lower rental prices. the groundwork for this • Supporting developers new political stratum. and the real estate market However, the supervi- has been a governmental sion and regulation of

European Action Coalition for the Right to Housing and the City 29 DROIT AU LOGEMENT

prices – especially for enterprises; land – has only been • Protected peri-urban zones marginally addressed. and urban agricultural lands • This new body may that can be developed quick- fund and support the ly, notably those managed market, in other words, by public land organisations export Parisian prices similar to the AFTRP. to the periphery, with neither the aim nor the These lands are mostly public, will to enforce the right owned by local authorities, munici- to housing for all at an palities, communes, departments, accessible price. and state-controlled administrative • The corporation of enterprises. The AFTRP is one of the greater Paris, which technical institutions that offers land precedes this new met- to the highest bidder. ropolitan body, subcon- tracts the management This is why we’ve come togeth- of the region’s land to er to denounce our own public the AFTRP, the Techni- authorities, those we elected to cal Agency for Property serve us but instead send repre- in the Paris Region. This sentatives to MIPIM: organisation, which had • They come to commodify our its head office occupied neighbourhoods, those in by the poorly-housed which we can still afford to live, on January 11th [elev- and encourage rising rents and enth], have a heavy property prices. These policies presence at MIPIM, be- chase us to the periphery, cause they sell so many far from the economic centres public lands. where we can find employment. • They come to sell our public THE MIPIM ARE SELLING OFF lands to speculators. We, the residents of the affected dis- OUR HERITAGE. ENOUGH! tricts; the badly housed and What are the properties for sale homeless, hit hard by costly in the Paris region? Basically, urban housing and the recession; and peri-urban land: the tenants of public housing; • Deindustrialised tracts of land; youths and migrants forced to • Land in working-class neighbour- live in expensive, cramped and hoods, opened up by urban plan- indecent housing; the middle ning (which is rare in rich areas); classes who sink deeply into • Land and buildings sold by long-term debt to these same the government and public financiers to buy a home; we are

30 being squeezed out of OUR taxes to finance social housing; living spaces. WE are the huge • The establishment of an emer- majority of the regional popula- gency plan to create 50.000 tion, those who require decent, [fifty thousand] vacant homes affordable, energy-efficient – through development and housing close to work. building requisition – to satisfy • And they come to trample our the legal right to housing, and interests, the public interest to provide shelter for those who that would explore all of the await relocation; ways to keep people in their • And that the new Metropolitan neighbourhoods, to construct Paris political body be given lodgings for those who need the capacity to enforce these them, to curb real estate and measures and to lower housing land speculation through dis- prices to a level compatible with suasive tax measures, and to the income of the majority of build energy-efficient housing. regional inhabitants.

We therefore demand, from the Paris region but equally from DOWN WITH SPECULATION! all regions: OUR NEIGHBOURHOODS ARE • The immediate cessation of all public land sales to those in pri- NOT FOR SALE! vate real estate, especially those A ROOF IS A RIGHT! sharks, vulture and other preda- tors who participate at MIPIM; • The allocation of land towards the construction of social hous- ing, the development of emer- gency accommodations for the homeless and those who live in indecent and abnormal shelters, and support for those activities that generate employment in the general interest; • The transformation of vacant office space into social housing, principally in the areas west of Paris, which is mostly a corpo- rate zone; • The taxation of profits coming from real estate and land spec- ulation, and the use of these

European Action Coalition for the Right to Housing and the City 31 Demonstration Ruhr Metropolitan Area

32 MieterInnenverein Witten u. Habitat Netz e.V. Witten, Ruhr www.mvwit.de

European Action Coalition for the Right to Housing and the City 33 HABITAT NETZ E.V., WITTEN (RUHR) THE BIG 5 ACCUSATION OF FINANCIAL LANDLORDS IN NORTHRHINE-WESTPHALIA BY HABITAT NETZ E.V., WITTEN (RUHR) n Germany rental housing is rent increases and high vacancy more important than in most rates looked like an easy way to other countries, especially in the improve the performance. Many Icities. In the Ruhr metropolitan area public institutions, municipalities nearly 68 % of all housing units are and industrial companies in Ger- rented. Most of the buildings in this many sold their rental housing region were constructed during stocks to those transnational fi- the decades of industrial growth, nancial investors. Approximately by coal and steel companies, 900,000 housing units today are trade unions and municipalities under direct control of financial as part of the non-profit housing investors, many of them have been sector. In 1989, when the national traded more than one time. The government abolished a law which quantitative effects concentrate protected non-profit-housing from on particular cities and regions in being sold out, it opened the way Germany, especially cities in the for a deep process of commod- Rhine-Ruhr area.. In Dortmund, ification and privatisation of the one out of five rental flats is under existing housing stock. At the same control of the financial markets, in time German governments along- other towns it is 10%. side with the EU also liberalised financial markets. The new “investors” financed their buyouts with little equity and After 2000, when the global huge loans which were placed on housing bubble started, transna- the (often repaid) properties as tional financial investors soon be- mortgages and then refinanced by came attracted by principal offer complex and very big (partly over 6 the huge stocks of mass housing. billion) securitisations. These secu- To them the high portion of rental ritizations very much influenced the housing looked like a huge potential business models. The new landlords for privatisation, comparably low had to follow the limits set by the rents gave reason to expect high loan conditions. The whole housing

34 business, in every aspect aspect, NRW elections led to promises by became a function of finance. the Greens and the SPD. The main The consequences for the reaction was a parliamentarian tenants and the housing stocks commission which for the first time were and are disastrous: Forced intensively studied the business to extract high returns and inter- models of the new investors and its ests the landlords heavily reduced consequences. the maintenance of the aged housing stocks and the work- After more than 2 years of force in their management. Ten- work the commission presented ants are suffering from defects a voluminous report with studies in heating, from humidity, not and a list of political proposals. working escalators or unavail- Meanwhile one of the proposals able garbage collection services. – a stricter law on municipal con- The obligatory annual balances trol of badly maintained housing for service fees are often wrong – is passing the parliamentarian or the landlord does not present process. But many municipalities them at all. In a raising number are in deep debt. They hardly will of cases water and energy sup- implement the new instruments. At ply was questioned because the same time public banks and the landlord did not pay. Service governments in other Länder have providers often are changed, continued to sell housing compa- sometimes tenants do not know nies to privatebusinesses related who is responsible at all. A part of to financial investors. the companies “defaulted”. Some housing “portfolios” with important For some years it seemed that housing schemes in disfavoured a couple of large securitisations for satellite towns today seem cap- mass housing debt, which were cre- tured within an endless loop of ated between 2005 and 2007, would asset-stripping. fail to fulfill repay-obligations in 2013. But then the crisis of sovereign debt To these and other problems in southern Europe led to internation- with the consequences of the fi- al capital running away towards more nancial business-models organized “secure” investment opportunities, tenants reacted to these with pro- which some of them are finding in test. The media covered their daily German real estate. This demand stories. Soon broad criticism from for investment assets at low interest various sectors of society, espe- rates made it possible that nearly all cially in the Land NRW, made it a large securitisations which ended in political issue. Tenant associations 2013 could be repaid and refinanced organised advocacy and public by new loans. And at the same time pressure, which during the 2010 these new conditions at international

European Action Coalition for the Right to Housing and the City 35 HABITAT NETZ E.V., WITTEN (RUHR) capital market allowed the exit of the institutions, municipalities and indus- invested funds. trial companies in NorthRhine-West- phalia sold their rental housing stocks Three huge investment platforms to transnational financial investors. started their IPO during the last 18 Many houses were sold several times, months and are now publicly trad- some companies failed. Here is a se- ed housing companies. The new lection of 5 important “investors” who shareholder structures meet a rapidly attend the MIPIM (directly or through changing market. Accessible hous- a parent company). Together they ing had become rare in prospering control nearly half a million housing cities and rents are rocketing. The units in Germany. new financial situation as well as the housing market environment now The Anti-Mipim Habitat Netz leads to shifts in the strategies of the e.V., Witten (Germany) accuses investors. Rent increases and expen- some of the large financialised land- sive modernisation are becoming lords in this region for extracting another thread for the tenants. profit from the housing stocks without respect to standards It is typical that nearly all of the fi- and needs. Currently local ten- nancial “investors” which have been ants associations i.e. accuse the active in this business as well as the largest German landlord Deutsche municipal agencies of those cities Annington (185,000 flats, majority who have been heavily affected by of shares controlled by UK based the business – Dortmund, Bochum, TerraFirma) for increasing rents Düsseldorf, Cologne – visit the MIP- for modernisation although they IM 2014. They hardly will negotiate have accumulated hundreds of a return to non-profit housing. The millions of Euro from the tenants financial investors are mainly look- in recent years. Tenant organisers ing for new shareholders and other also demand that the financialised exit options. The municipalities who former public company LEG (95,000 are under pressure by high deficits housing units) immediately stops continue to sell our land and infra- and revises its many unjustifiedrent structure. We, the inhabitants, have increases in cities like Bochum, to pay the price. Will it be forever? Bielefeld, Dortmund, Düsseldorf and Witten. And they call on the

French Real Estate Investment Trust 5 BIG FINANCIAL LAND- “Foncière des Régions” to stop the LORDS IN NORTH RHINE-WEST- pressure against the tenants of the neighbourhood “Zinkhüttenplatz” PHALIA ATTENDING THE MIPIM in Duisburg. There, its subsidiary During the years of the global hous- “Immeo” wants to sell the land of ing bubble 2003-2007 many public a well-designed social housing

36 estate to the developer of a huge to replace traditional facility services Factory Outlet Centre (FOC). For by a centralised call centre, many the construction of this gigantic and tenants were frustrated and vacan- destructive shopping centre the cy rates rose. The Viterra buyout in housing schemes have to be demol- 2005 was re-financed by the so far ished. Immeo since years is trying largest securitisation of residential to push out the tenants, mostly property in Europe, the” GRAND elderly steel workers. But a part plc” with a volume of 5,4 bn € and of them is consequently resisting. a period until 2013. After intensive negotiations with the creditors DEUTSCHE ANNINGTON Annington managed to refinance it in 2012/2013. After that big step IMMOBILIEN SE, BOCHUM TerraFirma started a partial exit via 179,000 units, 99,000 in NRW |11 an IPO in summer 2013. With easier bn € total assets, 3,3 bn € equity | access to fresh capital Annington 2260 employees | Partial exit of Terra now is trying to implement a portfolio Firma-Funds through IPO July 2013. strategy where parts of the hous- Principal shareholders: Monterey ing stock gets modernised, which Holdings SARL (Luxembourg,-SPV means rising rents. of TerraFirma Funds): 84,4%, Norges Bank (Norway’s central bank): 5,4%. LEG IMMOBILIEN AG, Deutsche Annington, the hous- DÜSSELDORF ing platform of the British private 95,000 housing units, all in NRW equity manager TerraFirma Capital | 5.2 bn € total assets, 2 bn € equity Partners, is the largest German | 900 employees | Exit of Gold- landlord and a “pioneer” of strategic manSach/Whitehall Fund since IPO Real Estate Private Equity in German February 2013. Principal sharehold- mass housing. After buyouts of ers: Global asset managers like workers estates from the federal rail- Black Rock (12,3%), MFS/Sin Life ways (2001, 64,000 units), the E.ON (5,4%) Morgan Stanley (3%), Perry company Viterra (2005, 138,000 Capital (7%), free float 61,5%. units) and other industrial portfolios controls 179,000 own housing units The “Landesentwicklungs- at various places in Germany, with gesellschaft NRW” originally was a focus in the Ruhr district (99,000 a state-owned company for urban units in NRW). During various strat- renewal and housing. In 1987 it took egy-changes Deutsche Annington over significant parts of the bank- became famous for its problematic rupt trade unions’ housing company reduction of maintenance and of “Neue Heimat”. The housing stock the number of employees. Espe- includes many (former) social hous- cially in 2008, when Annington tried ing estates from the 70ies. In 2006

European Action Coalition for the Right to Housing and the City 37 HABITAT NETZ E.V., WITTEN (RUHR) a conservative-liberal government deals, organized an IPO via the new decided to sell the company. Against holding GAGFAH S.A. in Luxem- this plan a plebiscitary initiative col- bourg. Soon, “financial engineering” lected more than 63,000 signatures. (several CMBS-securitizations) and Nevertheless the government in 2008 the extraction for the dividends led sold it to a consortium of funds, main- to “asset stripping” and to a heavy ly controlled by Goldman & Sachs. reduction of maintenance. In order to Although the government promised get more liquidity parts of the housing special contracts would protect ten- stock were sold. The GAGFAH case ants and employees the rents were became a scandalous main exam- raised significally, maintenance ple of the bad consequences of was reduced and whole company housing privatisation in Germany. was restructured. Only 5 years after For some time it looked as if it would the buy-out, in February 2013, the fail to pay back the securitisation investors started the exit via an IPO. loans until 2013. Thanks to low in- Recently the GoldmanSachs funds terest rates and the growing interest sold their last shares. LEG is buying of stressed investors also GAGFAH other properties and increasing finally managed to re-finance the rents higher than ever before. loans and now tries to improve its economic performance, – in favour of GAGFAH S.A: LUXEMBOURG / the shareholders, not of the tenants. Foncière Développement Logements FORTRESS LLS NYC Paris / Foncière des Régions Metz 144.000 units, ca. 20.000 in NRW | 8 bn € total assets, 2.2. bn € equity FDL: HOUSES: 2335 | 1280 employees | Partial Exit of Fortress funds through IPO 2006. IN FRANCE, 38,614 IN Principal shareholder: Fortress In- GERMANY, CA 37,000 IN vestment Group LLC: 41.3%. NRW | ASSETS: 0.8 BN € The current GAGFAH Group IN FRANCE, 2.5 BN € IN is the result of 3 major buyouts of former public housing companies GERMANY | EQUITY: CA. 1.3 by the Funds of the U.S.-investor BN € | CA. 320 EMPLOYEES IN Fortress: In 2004 Fortress bought the old GAGFAH (82,000 units) from the GERMANY | SHAREHOLDERS public pensions fund BfA. In 2005 FDL: FONCIÈRE DES RÉGIONS the housing company of the Lower Saxony, NILEG, and in 2006 WOBA, 31,6%, GMF/COVEA 19,4%, the company of the City of Dresden, PREDICA 15,1%, CARDIF followed. Already in 2006 Fortress, which is famous for its tactical share 13,7%, GENERALI 8,9

38 Originally a subsidiary of Fon- Shareholder BGP Investments: cière des Régions, the com- BGP Holdings plc: Bare Trust and pany Foncière Développement GPT, Australia. Logements (FDL) is a REIT (Real Estate Investment Trust, SIIC) BGP was a joint venture between specialized in housing transac- the two Australian private equity in- tions in France and in Germany. vestors Babcock & Brown and GPT. In 2006 FDL bought up the former Financed by huge securitised loans ThyssenKrupp housing company they bought up 40,0000 housing from funds organised by Morgan units in Germany between 2003 Stanley and the German Corpus and 2007, mainly workers homes group. Within one year these “in- and larger social housing estates vestors” had heavily stripped the in the “satellite towns” of Cologne financial capacities of the housing or Munster. As a consequence stocks and renamed it to “IMMEO”. of the financial crises Babcock & Tenants struggled with single Brown was liquidated in January privatizations and bad repair, 2009. Later GPT decided to stop all but in difference to other investors business in Europe. Since then the the work force was not radically only task of BGP is to “wind down” reduced. FDL over the years car- the business and sell the properties ried losses of the German sub- in order to reduce the losses of the sidiary. Obviously it made sense shareholders. As a consequence within the REIT. During the past the housing schemes of BGP since years FDL significantly reduced years are without a responsible its NRW-portfolio through sales to landlord. Maintenance stopped, other private investors. When the management often is absent. city of Duisburg decided to plan a Tenants and social workers miss Factory Outlet Center on the land a responsible partner. of a marvelous social housing es- tate, the Zinkhüttenplatz, IMMEO soon agreed to sell the land and push the tenants out. A tenant group is resisting.

BGP INVESTMENTS S.A R.L. LUXEMBOURG / BGP HOLD- INGS PLC MALTA Housing units in Germany: > 25,046 | Assets in housing: > 1.1 bn €, equity: 0.4 bn €.

European Action Coalition for the Right to Housing and the City 39 Spanish State “Stop Evictions”

40 Encounter Athens encounterathens.wordpress.com Committee for a metropolitan park at Hellinikon parkoellinikou.blogspot.gr Occupied theatre empros www.embros.gr Network for the protection of Saronikos bay saronikossos.wordpress.com Solidarity for all solidarity4all.gr

European Action Coalition for the Right to Housing and the City 41 ENCOUNTER ATHENS GREECE: PUBLIC GOODS ARE NOT FOR SALE – STOP TRADING OUR COLLECTIVE HERITAGE

he ATHENS groups “encoun- 3986/2011), under the middle-term- ter Athens”, “Struggle Com- fiscal strategy that was imposed mittee for a metropolitanpark by the Troika and adopted by the Tin Helliniko”, “Occupied Theater Greek government. It constitutes the EMPROS”, “Solidarity for all” and agency responsible for implement- “Network for the protection of Sa- ing the privatisation programme of ronikos bay” are accusing the state Greece with the sole purpose of company TAIPED (Hellenic republic using its revenues for paying up asset development fund), the Greek the country’s public debt. TAIPED government and the Troika for the is a “société anonyme”, whose sole austerity and privatisation policies shareholder is the Hellenic Republic they are implementing, in favour of with a share capital of €30 million. the banks, the financial sector and The Fund is not a public entity and is big investors. The processes of governed by laws pertaining to pri- deprivation and dispossession that vate economy. Full ownership, pos- are taking place are putting people session and occupation of all ‘state and local communities in fear and owned assets’ (land, infrastructure insecurity, while undermining the and public companies) that are to be possibilities of their future recovery. privatized are transferred toTAIPED with the provision that these assets THE SELL-OFF OF PUBLIC cannot be transferred back to the Greek state. LAND AND PROPERTY IN GREECE AS PART OF THE TAIPED is supported by a crew of specialists on real-estate specu- ADJUSTMENT PROGRAMME lation and privatisation processes FOR THE REPAYMENT OF THE (as well as experts in technical, legal and urban design matters), the PUBLIC DEBT enormous fees of which are covered The Hellenic Republic Asset by the money collected from the Development Fund (TAIPED) was privatisation of public assets. At the established the 1st July 2011 (Law same time, in order to safeguard the

42 viability of the investments through Development Fund is grounded on the facilitation of the sell-off and the following reasons: subsequent development of all • TAIPED is a state company state-owned property, the Imple- whose function damages the mentation Law which established public good. TAIPED, included a unified planning • TAIPED is the vehicle for a framework providing land use and massive land dispossession density regulations for the develop- and land-grabbing process ment of all state-owned real estate in Greece that sells off public property. This framework which property (real estate, infra- promotes the intensive development structures and companies) of of mostly tourist and vacation-home vital importance for both the enclaves may bypass statutory land present and future of local so- use and environmental regulations cieties, with the sole purpose of and plans, as well as existing contributing to the repayment procedures and official bodies. of a commonly acknowledged Therefore, a key element of the de- non-sustainable debt. cision-making process of the entire • TAIPED contributes to the fur- privatisation program the lack of ther impoverishment of the democratic participatory processes Greek state and local societies/ and, of course, transparency. communities, depriving them of common goods that are Today, the portfolio of TAIPED essential for their future so- includes around 10,000 plots of land cial and economic recovery, (http://www.hradf.com/en/portfolio) promoting private investment all over the country a substantial por- and speculation, while displac- tion of which includes environmental- ing social and collective uses ly sensitive and/or protected areas. and excluding large parts of the Since 2011 TAIPED has launched 23 population. calls for the privatization of land as- • TAIPED executes a huge asset sets, while 8 clearances have been clearance programme, with completed. The destructive work of limited profitability exchanging TAIPED is ongoing, as the privatisa- the country’s future recovery for tion programme consists of the main immediate liquidity to the Greek mechanism for debt repayment. This government in order to comply year TAIPED presented to Troika a with the fiscal targets of the ad- list of ‘mature’ projects for privatisa- justment programmes. tion raising the target for revenues for • TAIPED is providing import- 2014 at 3,5 billion euros. ant ‘investment incentives’ by bypassing existing environ- Overall our accusation to- mental, developmental and wards the Hellenic Republic Asset other regulations promoting

European Action Coalition for the Right to Housing and the City 43 ENCOUNTER ATHENS

intensive development schemes government and TAIPED as a ba- (touristic, logistic etc) with harm- sic argument in order to acquire a ful societal and environmental consensus for the promoted urban consequences. development model while they are trying to hide that these are mainly INFORMATION ABOUT temporary, precarious and low-pay- ing jobs and deceiving the hundreds SELECTED PRIVATISATION of thousands of unemployed people CASES IN ATHENS: in our country. At the same time, it is projected that the concession price FORMER HELLINIKON for the Hellinikon property will not AIRPORT AREA AND exceed 0,5 billion euros which will be paid in the next 15 years in year- COASTAL FRONT ly installments. Essentially, this is The property of Hellinikon, a 620 considered to be a free concession, Ha site which includes the former since the state is obliged to cover airport of Hellinikon and the Agios the cost of a number of necessary Kosmas beachfront area in Athens, infrastructure works along with the constitutes the peak of the privatisa- moving cost of several public agen- tion program that is currently under- cies that are currently located on way in the country and involves the site, thus making the accrued cost concession of the property to private much higher than the offered price. investors who are going to develop and operate it for the next 99 years. In direct opposition to the gov- ernment’s and TAIPED’s plan lies The process of tender submis- the timely demand posed by local sion for the development of the governments, the academic and re- site was completed in February 27, search community, local movements 2014 with only one contestant – the and political parties for the creation real-estate company “Lamda Devel- on site of a public metropolitan park opment”, member of Latsis Group that will meet the real needs of the – submitting a final offer to TAIPED. community for recreation, sports and According to information leaking to culture and improve the environment the press, «Lamda Development» and climate conditions of Athens. is planning to build malls, a casino, hotels, luxury homes etc. with a total area of 1,7 mil. sq. meters, thus, VOULIAGMENI PENINSULA creating an enclave of wealth and AND ASTERAS TOURISTIC luxury for selected few. COMPLEX The creation of ‘tens of thou- This peninsula and beach-front sands of jobs’ is used by both the property – owned by both the

44 Greek state and the National Bank by the investor through the turning of Greece – has a total area of ap- of the existing public road into a proximately 30 Ha (50 Ha including private one. In total, the new mas- the beach) and has signified, with ter plan for the property provides the three hotels and the marina for the construction, in a forested located on the site, an icon of the area, of a beach-front high-income tourism sector in Greece. The enclave, catered solely to foreign property value is estimated at ap- investors and buyers, which apart proximately 2,5 billion euro (based from housing will also include shop- on pre-crisis property tax valuation). ping, restaurants, entertainment, Past attempts to fully privatise and anchorage, etc. intensify the development of the site had consistently failed due to The total abolition of applicable constitutional provisions and the op- planning terms which allows the in- position of local movements. In fact, tense residential development of the statutory local land use plans and coastal area of Athens is not, how- regulations provide for the renova- ever, contingent with any planning tion of the existing hotels only, while or public gain. Instead, the 4 candi- a major portion of the property that dates that have submitted a binding includes forested areas and arche- offer (Colony Capital Acquisitions ological sites has been designated LLC, a California based invest- as a protection area. ment fund; AGC, an Arab-interest investment company; Plepi Holdings However, the recent national LTD, a company formed by Greek legislation providing for the devel- and Saudi Arabian entrepreneurs; opment of public properties allowed and Lamda Development) seem to the bypassing of existing land use pursue buying off the property at regulations and thus, the terms of a price that does not reflect either the bid for the site allowed, at first, its real value or the surplus value the construction of up to 8,600 it can create, since their offers are sq.m. of residences. Nevertheless, only a bit higher than the current these new terms were apparently stock value of the property which deemed not profitable enough for has dropped, because of the crisis, the candidates and therefore, just to around 270 mil. euro. In fact, the before their submission of the sec- bidding price is expected not to ond-phasebids, it became publicly exceed the amount of 350 mil. euro! known that new planning terms pro- vided for the construction of luxury Even though the Greek state residences of up to 39,500 sq.m., owns 40% of the property, it will only the demolition of two of the hotels, as collect 20% of this amount, that is, well as the controlled access to the around 70 mil. euro. However, this beach and the archeological sites is not the net amount that will be

European Action Coalition for the Right to Housing and the City 45 ENCOUNTER ATHENS attributed to the payment of public existing land use regulations, the debt, since from this amount all costs only permitted use for the building accrued for the payment of consult- is a civic one (PD, 18.3.98). ing services provided to TAIPED for the selling of the property as well In November 2011, the building as the mandatory provision by the was occupied by a group of artists state of any required infrastructure. who are using it as a free, self-man- Therefore, a real financial loss to the aged space for artistic and social Greek state is a very plausible pros- activities. Since then, the ‘EMPROS’ pect of the sell out of this property theatre is being managed by an which is further substantiated by the open assembly and a great number significant reductions in future tax of cultural events, performances, revenues that will be generated by concerts, discussions etc have been this development due to tax breaks organised, some of them with par- provided by recent legislation per- ticular intensity and density. taining to the attraction of strategic investors. At the end of 2013, the prop- erty was put for sale through the EVICTION OF OCCUPIED electronic auction and since then, TAIPED is systematically pursuing THEATRE EMPROS the evacuation of the building so The EMPROS Theatre is located that it will be available to the future in downtown Athens in a historic owners. In October 30, 2013, the po- preservation building that func- lice intervened in order to evacuate tioned first as a printing press of the and seal the building and arrested former newspaper ‘EMPROS’ and two actors who were in rehearsals. then as a theatre, under the same A big support and solidarity was name, until 2005. Even though, the expressed against the eviction of property was transferred to the state the assembly managing the build- in 1950 by Law (L.1530/50), the le- ing and in favour of the cultural and gal status of its ownership is still in political activities taking place. question since there is no certificate of transfer and ownership, while SALE AND LEASE-BACK there is a pending lawsuit for the annulment of this transfer submitted OF 28 PUBLIC BUILDINGS by 6 citizens since 1951! Despite Twenty eight state owned build- this legal uncertainty, TAIPED re- ings (with 320,000sqm total surface) assures prospective investors that were privatised, with the sale and there is no risk involved regarding lease-back method, at the price of the ownership of the property since 261 mil. euro to two recently creat- the pending lawsuit is not valid due ed REIT companies: the National to the time lapsed. According to Pangaia* (portfolio of 14 buildings

46 at a price of 115.5 mil. euro), and endowed by the Greek state to Eurobank Properties** (the rest of boost their profitability. the buildings at a price of 145.810 • National Pangaia REIC: after mil. euro). These were civil service this privatisation deal holds a buildings which house five minis- real estate portfolio worth more tries (i.e., Culture, Internal Affairs, than 1 billion euro, and was Justice, Health and Education), immediately sold (66%) to the, thirteen public tax agencies, the Israeli interest, Dutch company general laboratory of the state and Invel Real Estate. In order to buy police headquarters in Athens, Pangaia, Invel took a loan from Thessaloniki and Serres, for which the National Bank of Greece the Greek state guarantees a lease- corresponding to 60% of the back period of 20 years (estimated price (580 mil of which only 160 at 600,000 mil. euro). mil is own share and 418 mil. is from the loan, plus 74 mil. from The Court of Audit has sus- the transfer of asset value). pended the deal (until it receives • Eurobank Properties: after further clarifications) based on the the acquisition of this second argument that there was lack of ‘package’ of public buildings, it transparency and impartiality in was sold to the Canadian fund the tendering process, since the ‘Fairfax’. two nominated companies are sub- sidiaries of the two business groups PUBLIC GOODS AND PUBLIC (NBG Securities SA and Eurobank Equities Investment Firm S.A, re- LAND ARE NOT FOR SALE, spectively) which acted as finan- OUR FUTURE IS NOT FOR cial consultants to TAIPED for the privatisation of these 28 buildings. SALE In its decision, the Court has also expressed reservations regarding Encounter Athens, Committee the bidding process because it is for a Metropolitan Park in Hellinikon, not sufficiently justified whether Occupied theatre Empros, Solidarity the concession is profitable and for All (solidarity4all.gr), Network for advantageous to the Greek state the protection of Saronikos Bay. compared to other public lending options and because of binding clauses in the deal.

Both REIT companies have managed to increase significantly the value of their asset portfolio because of this deal, being actually

European Action Coalition for the Right to Housing and the City 47 Cannes, Tribunal Anti MIPIM

48 European Action Coalition for the Right to Housing and the City - Ireland

European Action Coalition for the Right to Housing and the City 49 EUROPEAN ACTION COALITION FOR THE RIGHT TO HOUSING AND THE CITY IRELAND’S ‘BAD BANK’ NAMA

ocal activists from DUBLIN ac- Zone is a provision in Irish planning cuse the National Assets law to designate a specific area for Management Agency (NAMA), ‘fast-track planning’. The idea is sim- LIreland’s “bad bank”, for selling parts ple; get rid of the planning appeals of their city to massive financial in- process. NAMA has said that ‘fast stitutions with an interest in cheap track planning’ is vital to attract inter- real estate or cheap debt linked to national “investors” to “Ireland’s most real estate. With implementation of important internationally marketable a Strategic Development Zone in land bank”. The strategic Devel- Dublin’s Docklands NAMA wants to opment Zone, moreover, has been establish a ‘fast track planning’ in or- designed to exclude the traditional der to attract international “investors” inner-city working class communities without any strategy around social or and does not include any strategy affordable housing. around social or affordable housing. The National Assets Management To be clear, NAMA is an agen- Agency, Ireland’s ‘bad bank’, attend- cy set up by the state but with a ed this year’s MIPIM conference. The blatantly commercial focus largely agency, which has about EURO 20 oriented around selling our city to bn in real estate assets, was set up international financial firms. The following the financial crisis to save fact such a significant and expen- the Irish banks from their own reckless sive public institution holding one lending by buying their toxic real es- of the largest property portfolios tate assets. Its job is now to sell those, in the Europe has adopted such a so it can give the banks the EURO 32 narrow commercial remit could not bn it promised them. be more symptomatic of the Irish As a huge player in the Dublin state’s failure to responds to the property market, NAMA’s main fo- need to develop sustainable cities cus is on selling parts of our city to and respond to the housing crisis. massive financial institutions with an With a over 100,000 people on the interest in cheap real estate or cheap social housing waiting lists, the debt linked to real estate. Companies same number again unable to pay like Blackstone, Lonestar Capital and their mortgages, and the number Oaktree Capital have already been of families becoming homeless in buying assets from the bad bank. But Dublin doubling, how can selling the upcoming implementation of a office blocks to hedge funds be the Strategic Development Zone in Dub- priority? No doubt this is what NAMA lin’s Docklands is set to move things was explaining to its ‘international up a gear. A Strategic Development partners’ at this year’s MIPIM.

50 Unione Inquilini www.unioneinquilini.it International Alliance of Inhabitants www.habitants.org

European Action Coalition for the Right to Housing and the City 51 UNIONE INQUILINI

n ITALY Unione Inquilini (Tenants the powerful banking foundation Union) together with the “Interna- CARIPLO. It is an Italian example tional Alliance of Inhabitants” (IAI) of epidemic “private-public partner- Ihas protested against the presence ship” in the field of housing. To its of the “Cassa Depositi e Prestiti“ investors CDP guarantees a return (CDP) at the Mipim. The CDP is a of 3% above inflation. At the same joint-stock company under public time there is no concrete responsi- control. Under the pretext of creat- bility for social housing. The Tenants ing so-called “social housing” this Union and the IAI accuse the CDP: “housing investment fund” is in fact for violating article 42 of the Italian active in the process of privatisa- Constitution, which requires a social tion of common property as well function of property. In fact CDP is as in the speculation with unused using the capital of small savers to land. CDP has a capital stock of organize a financial speculation more than 2 billion Euros, which is against their own interests. mainly composed of the savings Also for violating law 881 with of individuals collected at post which Italy in 1977 ratified the Interna- offices. But more than 800 million tional Covenant on Economic, Social of the capital stock is controlled by and Cultural Rights. In fact CDP sup- Polaris Investment SGR, a company ports the reduction of public inter- incorporated under Luxembourg ventions on into the housing market law whose main shareholder is in favour of financial speculation.

Demonstration Paris

52 Bond Precaire Woonvormen bondprecairewoonvormen.nl Speculation research collective SPOK speculanten.nl

European Action Coalition for the Right to Housing and the City 53 BOND PRECAIRE WOONVORMEN ACCUSATION OF THE AMSTERDAM METROPOLITAN AREA

he “Bond Precaire Woon- serious housing shortages in its area, vormen” from the NETHER- is the Amsterdam Metropolitan Area. LANDS, a Union of people Twhose housing situation is precar- Despite the continuing Dutch ious is accusing Camelot Europe, policies promoting home-ownership, one of the largest “vacant property in Amsterdam alone 270,000 people managers” protecting commercial are searching for an affordable house companies, that it is bypassing all to rent. They cannot afford or are existing tenant laws and using not interested in buying a house. people in need for housing as Nor can they rent on the liberalised ‘real-estate pawns’ and as ‘out- (expensive) rental housing market sourced dwellers’ that only serve in Amsterdam where prices have to facilitate speculation. Currently, become extremely high, as one of the Mipimist Camelot is housing thou- the results of the home-ownership sands of people throughout Europe, promotion policies. without assuming the slightest re- sponsibility every landlord should Out of the 270,000 people looking bear. The speculation research col- for a rental house in the Amsterdam lective “SPOK” is accusing the Am- area, at the moment 70,000 of them sterdam Metropolitan Area since are in urgent need of housing. But the the shortage of affordable housing social housing stock in the Nether- in the region is grinding, yet at the lands, and especially in Amsterdam, same time the (office) vacancy rates has been seriously reduced by are excessive. privatisation, demolition and many urban renewal and gentrification The Mipim is celebrating its 25th programs. When a tenant leaves a birthday this year. As all previous social rental house in Amsterdam years, a lot of Dutch companies and nowadays, there is a chance of 25% local governments will be present, that it will be sold and 25% that it will be the latter also paying € 1600,- for an liberalised. Even though the demand entrance fee probably paid for from for social houses in increasing. our taxes. One of the local Dutch authorities present for the Mipim The availability of social rental festivities, that really should have housing is with no more than 6,500 stayed at home to work on solving the a year, painfully insufficient. In

54 Amsterdam the average waiting fraud was discovered within the big- time for a social rental house gest Dutch real estate funds consist- is more than 10 years. The only ing of public money. Many millions of way policymakers and even social euros were stolen from pensioners housing corporations respond to this by money-laundering deals. The housing shortage, is by increasing perpetrators were regular Mipim rents and the price of real estate. Es- guests. One of the board members pecially in the wake of the economic of the Amsterdam Metropolitan Area, crisis, their efforts have been to lure a prominent politician from the liberal investors into building more expen- party was convicted for corruption. sive houses and other expensive His appearance on the Mipim played real estate, mainly office buildings. an important role in his conviction. It was mentioned extensively by the With 6 million square meters judge in his verdict. enough to house 100,000 people, and a vacancy rate of 17%, the The Amsterdam Metropolitan vacancy of officebuildings in Area has no place on the Mipim. Amsterdam is the highest of the Instead of being involved in dodgy Netherlands already and one of real estate deals, problems should the highest in Europe. Yet it is very be first solved at home. likely that the policy makers of the Amsterdam Metropolitan Area today have come to Cannes to make more BPW AGAINST ANTI-SQUAT deals for building offices and other AND TEMPORARY RENT real estate that have no real demand from the public or companies. Cer- CONTRACTS tainly they have no use to solving the The Bond Precaire Woonvormen affordable housing shortage. (BPW), a Union of people whose housing situation is precarious, is The real estate deals negotiat- a collective of volunteers who de- ed in Mipim are of great influence mand a halt to the rapid increase on housing and living conditions of temporary renting contracts in Amsterdam. Yet Amsterdam and who support tenants who are citizens haven’t any say in them in this precarious situation, often at all. In fact, the Mipims lack of threatened with eviction. transparency (or even: secrecy) is a direct violation on democratic The Netherlands has a broad decision-making and enhancing social rental sector which is current- corruption and criminal activities. ly under heavy attack by different dynamics: The social housing cor- In Amsterdam we have a lot of porations got entangled in a leak to experience with this. In 2007 a major the capital market, the government

European Action Coalition for the Right to Housing and the City 55 BOND PRECAIRE WOONVORMEN executes neoliberal policies pro- is compiled of several laws. Now, moting privatisation, home-owner- ‘vacant property protectors’, com- ship and high rent increases. It is mercial companies like Camelot, actually currently paving way for a that were born from the interests of massive sell off of the social rental real estate, have found a way to by- housing sector. The social housing pass all tenants rights completely. sector is now being taxed to pay for the debts of the (real estate) crisis They let often young people caused by the neoliberal ideology or others with little money and an promoting home-ownership. Huge urgent need for housing live in private debts were transferred vacant properties to ‘protect’ those into public debts as banks were properties (from vandalism and bailed out by the state. But the such) by keeping them occupied. speculative housing bubbles and The occupants can be kicked out fake economic growth we saw last of these houses within two weeks. decades are ‘natural’ results of the And they are forced to give up their logic of capitalist logic and a reason privacy rights (article 8 of the Euro- for today’s austerity measures. These pean Convention on Human rights), systematic problems are now result- as the company will randomly in- ing in roaming off the social housing spect their premises to see if they sector, less capacity to invest and ‘behave properly’. build social rental housing and are actively attacking social housing as The surpassing of tenant rights a public and humane achievement. is done by using ‘on loan’-contracts which are private law, instead of According to such dynamics, civil law. These on loan-contracts people people are increasingly are full of conditions that benefit the forced to accept temporary rental home-owners and the company, contracts without any tenants but not the inhabitant. For example: rights. The BPW is acting and an inhabitants cannot have pets, organising against this growing cannot receive their family for dinner tendency of precarisation of hous- by Christmas, cannot have children, ing, the anti-squat model and other cannot leave dishes in the kitchen, precarious forms of housing. cannot get in touch with the owner of the building or sometimes even with There is a shortage of affordable the press. On top of that, inhabitants housing in the Netherlands. For that are intimidated with serious fines or reason, people are increasingly threatened with eviction if they don’t forced to accept temporary rental abide these rules. The contract can contracts without any tenants be ended at all times within two to four rights. There is a thick package of weeks without providing any reason tenants rights in the Netherlands that and without the inhabitant having a

56 right to substitute housing or moving have a strong lobby and big mar- costs. In Dutch law, these rights are keting budgets. They invest a lot included in normal rent situations. in lobbying (local) government officials. The Dutch law ‘Wet kraken At the same time the inhabitants en Leegstand’ (Law that prohibits often pay a monthly fee of some- squatting and vacancy) for exam- where in between € 150,- and € ple has given a tremendous boost 400,- as well as their own energy to the anti-squat companies in the and water bills. This is, by Dutch law, Netherlands, with them offering considered a situation of rent, and their services to municipalities and thus Rent law applies. Still, inhabi- housing corporations, who all of tants are usually afraid to challenge sudden – because of the new law – companies like Camelot in court, had ‘to do something about vacancy because of the fines and the hight in our municipalty’ on their to-do-list. costs of court cases in general. It’s Another example is France, where not only students anymore that live Camelot helped to introduce a law like this. More and more lower in- that made temporary living in vacant come people in general who need a buildings possible. That law was house urgently, are forced to accept named after Camelot. these temporary rental contracts without any tenants rights. It is also due to a lack of counter information from social movements But why do people live like this (the Dutch tenant unions failed to and in increasing numbers? One of prioritise this problem) about the pre- the reasons is that there are huge carisation of housing, that the gov- quantities of vacant properties. In ernment is just following these market the Netherlands for example 16% of driven tendencies with policies that all office buildings are empty: That is allow the ongoing precarisation. almost 8 million square meters. And 8% of all shops are empty. In the Netherlands there are an estimated 50 anti-squat/vacant Another reason is that the vacant property protection companies property protecting companies like active: Camelot (currently one of Camelot introduced ‘anti-squat’ the fastest growing companies as a ‘new’ (‘lifestyle’) way of living, from the Netherlands), Interveste, ‘flexible and adventurous’ in ‘crazy AdHoc, HOD, Bezet, AK-Beheer, places’ like vacant castles of vacant Alvast, Anna vastgoed, Bewaakt en fun fares. They made it look atractive bewoond, De vastgoedbeschermer, to many people. de Kabath, FMT, Interim, Livable, SLAK, VVB wonen, Villex, Voorkom More importantly, anti-squat Leegstand, Zwerfkei. FMT, AK be- companies, and especially Camelot, heer (was Antikraak BV) and NAK

European Action Coalition for the Right to Housing and the City 57 BOND PRECAIRE WOONVORMEN were recently bought by VPSitex, ‘flexcontracts’ are often placed one which is owned by funds that are after another, pushing aside the maintained by TDR Capital, a British permament (time-unlimited) renting ‘highly selective private equity firm’. contracts. Nowadays, it’s almost im- Vacant property protection is lucra- possible for a person to know about all tive business, since it is making use these dynamics and only specialists of housing for profit only. can know what their rights are in this jungle. This confusion only experts to DIFFERENT TEMPORARY conformation and passivity in Dutch society on this subject. As a result RENT CONTRACTS an increasing diversity of people But of course the most important live outside of the social system reason for the growth of anti-squat of rent protection and social hous- is the shortage in housing. Ironically ing. Whereas in fact these people enough, Dutch housing policy is re- usually qualify for social housing. sponding to this housing shortage by Politics is hardly interested in this pursuing even further deregulation of and masks the conflict behind it. the conditions under which tempo- They are happy with leaving difficult rary rent is permitted. The traditional issues for the courts to decide when Dutch renting contract is permanent things get rough. (i.e. time-unlimited) but in recent years the number of temporary SOME GENERAL renting contracts has increased con- siderably. There are many different DEMANDS OF THE BPW forms of contracts now: Campuscon- The BPW considers the preca- tracts (students); Youth contracts; risation of housing as a transfer of Short stay (expats); Temporary rent risk to citizens, with corresponding under the Vacancylaw (which was negative effects on the lives of those expanded per 1 juli 2013 to 7 en 10 involved. De BPW supports people years and liberalised rents); contract who are in precarious housing situa- for a fixed period (Huurovereenkomst tions in various ways (amongst them voor bepaalde tijd / locatie en tijdge- is legal advise, organising, media, bonden contracten); contract of ‘in demonstrations). We try to create nature short term’ (´naar zijn aard political (on national and local level) van korte duur´used often to by-pass pressure for demands such as: the Vacancylaw); Antisquat; On loan. • Stop hollowing out tenant rights / a halt to the rapid increase of The urge for new forms of tempo- temporary renting contracts; rary contracts is still imperative and • Stop the breaking down the lobbyists, companies and politicians social housing sector; are advocating for it more and more, • Social housing corporations especially in the large cities. These should stop making use of

58 ‘middle men’ (these are the ‘va- Its ‘services’ to the real estate sec- cant property protection’ com- tor are in fact a way to maximise profit panies like Camelot) to exploit from vacant properties by exploiting their vacant houses. Instead, people in need of a house. Camelot they should fix the houses and was one of the first Ductch ‘anti-squat’ rent them out for affordable rents. companies that came up with the idea • Punish abuse of flexcontracts. of having people in need of housing • Affordable rental housing as a living empty buildings as ‘property collective right / give people protectors’ on temporary flexcon- rental contracts with real rights tracts and without any tenants rights. instead of temporary contracts These dwellers can be kicked out of that serve only the interests and their house on a two-week notice, profitability of real estate. are deprived of privacy as Camelot will randomly inspect their premises to see if they ‘behave properly’, and IN LINE WITH THIS, THE are forced to agree to a set of condi- tions that constrain their freedom of BPW IS FULLY SUPPORTING behaviour and mobility. THE DEMANDS OF THE EURO- As a result Camelot is current- PEAN ACTION COALITION FOR ly housing thousands of people THE RIGHT TO HOUSING throughout Europe, without assum- ing the slightest responsibility that AND THE CITY. a landlord should bear. It is exclu- sively housing people for profit, not for people or the right to housing. NETHERLANDS: ACCUSATION AGAINST VACANT PROPER- There are many more vacant property protection companies in TY MANAGER CAMELOT Europe and beyond that operate like Camelot Europe is an interna- this. But since Camelot is assuming tional vacant property management a position as ‘market leader’ and company, that started in the Neth- has certain specific activities and erlands. Their business is vacant characteristics, our accusation is property management services to directed at Camelot and as follows: provide real estate clients with a ‘cost • Camelot is using the shortage of effective, high quality and flexible affordable housing by offering solution’ to protect vacant proper- people in need of a house a ties against vandalism and such. temporary place provided they Camelot provides these services in give up their (tenants) rights. the UK, Ireland, Scotland, France, the • Camelot is bypassing legisla- Netherlands, Germany and Belgium. tion regarding the protection of

European Action Coalition for the Right to Housing and the City 59 BOND PRECAIRE WOONVORMEN

tenants. In doing so it is creating in bad housing conditions, a group of second-rate tenants. doesn’t invest in maintenance • Camelot is using inhabitants as of dwellings or improving the ‘real estate pawns’ and ‘out- quality of the housing conditions sourced dwellers’ that only for the inhabitants. serve to facilitate speculation by • Camelot defiles the privacy protecting vacant property and of inhabitants and imposes to facilitate the break down and them with other far-reaching the privatisation of the social constraints in their freedom housing sector. of behaviour and mobility. In • Camelot is jointly responsible fact Camelot defiles over 50 for the real estate bubble by different clauses of several enabling real estate speculators laws and (international) con- returns on their vacant property; ventions concerning tenants returns that are produced by and human rights. exploited people in need of • In spite of claiming otherwise, housing. Because of this, spec- Camelot is not contributing ulators don’t devaluate their to solving the shortage in property and property values housing, as it is not investing remain artificially high, which in (realising) permanent afford- makes building new properties able rental housing. Camelot profitable. As a result, natural ar- also places people in (vacant) eas and public spaces continue social rental housing, but never to be sacrificed for new (office) reinvests the related returns in buildings, that have no demand social rental housing. from companies or citizens; new • Camelot is misleading the pub- buildings that only serve to emp- lic by presenting its vacant ty out older buildings in the area. property protection service as With its vacant property protec- a solution for the shortage of tion, Camelot helps this vicious housing. It’s misleading be- circle to remain unbroken. cause its so-called ‘corporate • Camelot subordinates the right social responsibility’ is in fact to housing to the profitability of the exploitation of people in realestate and is with its services need of housing. and marketing actively contrib- • Camelot is an active lobbyist uting to the acceptance of this of local, regional and national mindset in Dutch society. governments and social hous- • Camelot discriminates in the ing corporations. It is active- acces to housing, intimidates ly promoting ‘flexible hous- inhabitants and treats them ing without (tenant) rights’. with arbitrariness. Camelot does this in several • Camelot allows people to live European countries and is

60 advising lawmakers and poli- ticians how to make ‘housing without (tenant) rights’ possible, if it isn’t yet. Camelot introduced such legislation for example in France, where it was named the Camelot-Act. • With ist activities, Camelot is one of the driving forces behind the increasing precarisation of housing in the Netherlands and other European countries.

SPECULATION RESEARCH COLLECTIVE SPOK Bond Precaire Woonvormen

Resisting Evictions/ demonstration Spain

European Action Coalition for the Right to Housing and the City 61 Demolitions and evictions in Portugal

62 Habita - Colectivo pelo Direito à Habitação e à Cidade www.habita.info

European Action Coalition for the Right to Housing and the City 63 HABITA - COLECTIVO PELO DIREITO À HABITAÇÃO E À CIDADE LISBON: SELLING THE CITY TO TOURISM

rom LISBON, “Habita” accus- after losing their homes they still owe es ESTAMO (which is a public their loans to te bank. The Troika and company responsible for the the government are also accused for Fsale of public property) and the CML promoting austerity measures and (which is the municipality of Lisbon), privatisations in favour of banks. which have been players in MIPIM over the past few years. Together The group “Habita!” accuses these two public entities are organ- the municipality of Lisbon (CML) for ising a processes of gentrification selling the city to the real estate in Lisbon, moving away the popular industry and tourism. classes and the elder from central neighbourhoods of Lisbon and “The approval of a new urban replacing them with higher classes master plan together with the enact- and tourism. These are promoting ment of a law which accelerates and speculative operations and the sale simplifies evictions and liberalises of public infrastructures in the retail rents (imposed by the troika in the market. Furthermore “Habita” accus- memorandum of understanding) cre- es the Portuguese government and ated the conditions to expel families the Troika for liberalising the rental and small businesses from the city market, facilitating the process of centre in order to replace them eviction – two months of delay is with offices, hotels, luxury hous- enough to be evicted – rent increases ing and franchised business. This and also stimulating gentrification. plan is promoted by Lisbon’s City Last but not least, “Habita” accus- Hall together with speculative funds, es bank-owned real estate funds. architects, lawyers, and construction Millennium-BCP for instance bought firms. This is the kind of team that land and promoted processes of takes part in MIPIM. mass eviction of the poor from working class areas in collaboration Lisbon has thousands of build- with the municipality of Amadora. The ings which are vacant for specula- banks – with the help of the State in tive reasons. In the future they are terms of regulation, tax exemption, going to be hotels and expensive/ etc. - have also been co-responsible luxury houses. for the number of empty houses (in Portugal there are 750,000 empty Evictions, gentrification, re- houses) and for the housing bubble moval of families and individuals in Portugal. The bubble drove thou- from the city centre, the closing sands of families into lifelong debt of hundreds of traditional stores, and evicted many of them. Even associated with land speculation

64 are the consequences of the lib- Through the use of coercive force and eralisation of the real estate market public expenditure of Amadora’s City and urban plans which serve the Hall, people are being evicted from capital and speculative players. The their houses with no alternative, city centre becomes more expen- no solution at all, finding themselves sive, inaccessible, ceases to be a thrown out to the streets. When they centre for people to live on, since struggle they are criminalized. they’re not entitled to participate in this transformation process. It is not Where is the right to housing? a democratic City, for the market Where is Democracy? The only authoritatively expels citizens. thing that matters is the market, the capital, the real estate fund and its Real Estate Funds and the Town property. This land belonged to the Hall in Amadora evict people of communities for over 40 years, this popular neighbourhoods in order land has belonged to the communi- to demolish them so they can build ties. Now, it is nothing but an asset and sell middle-class apartments of a real estate fund to be traded at through bank loans. the stock exchange market.

Real estate funds belonging to a Commodification of land and Portuguese bank – Millennium BCP housing destroys society and crys- – bought the land of 40 year-old neigh- talizes the city’s human develop- bourhood Santa Filomena, in Amadora. ment and life!

Demonstration in Portugal

European Action Coalition for the Right to Housing and the City 65 Ocupation of a bank in Spanish State

66 Plataforma Afectados por la Hipoteca www.afectadosporlahipoteca.com

European Action Coalition for the Right to Housing and the City 67 PLATAFORMA AFECTADOS POR LAS HIPOTECAS THE SPANISH BUBBLE AND THE STRUGGLE AGAINST EVICTIONS

n 2007, housing prices were at put the failure of housing policies an all-time high. If we consider on the agenda and would prove a these disproportionate prices major blow to the administrations Ialong with soaring interest rates and that had pushed the population to decreasing income (since unem- become indebted. ployment went from 8.3% in 2006 to 17% in 2009), we find ourselves with The biggest difference between an impoverished and debt-ridden the V de Vivienda movement and citizenry, living in fear of an uncer- the PAH is its members. While the tain future. first was mostly made up of young people in precarious work who In 2006, the V de Vivienda organised and fought to leave their movement (a reference to V for parents’ homes, the majority of the Vendetta that translates to “V for PAH is made up of families who are Housing”) was born in Barcelona. being foreclosed on. For two years, they articulated the struggle for the right to decent In Stop Evictions campaign we housing and denounced the hous- use the institutional mechanisms ing bubble, calling for an end to the to delay the eviction and we put violence of real estate specula- pressure on the bank using media tion. When the bubble burst two and social networks. If none of it years later, some of that group’s works, then we resist the evictions activists realised that people were by making a public call to turn up on going to stop being able to pay the day to block the legal authority their mortgages, and that the and police. Obra Social campaign struggle would no longer be about denounces that while in Spain access to housing but that many banks are starting foreclosure families would actually be left with- processes and accumulating out a home. They also discovered empty houses, thousands of that Spanish mortgage law would evicted people have no place to leave them with a debt hanging go and the Government refuses over their heads for the rest of to give real solutions. The PAH their lives. So in February of 2009, recovers these buildings as social the Plataforma de Afectados por la housing for these families. With Hipoteca (PAH) was born, which a People’s legislative Initiative

68 campaign we needed 500,000 ACCUSATIONS ON signatures to propose a legislative change. We collected almost 1.5 MIPIM PARTICIPANTS million but the Government refused From SPAIN the platform of the to discuss the proposal. After, we mortgage-affected (PAH) accuses started the Escrache campaign to the Spanish government, private persuade those politicians that had equity funds and banks for continu- expressed their opposition. ing the gambling with the homes and lives of the people. Last August STOP EVICTIONS completing the “bad bank” SAREB sold 50% with “the PAH Social work” sup- of the shares of a portfolio of badly porting the families rehousing maintained 1,000 housing units victims of the illegal eviction at to a fund managed by H.I.G. for their homes or in any banking only 50 million €. In June the Mu- houses (specially at houses nicipal Housing and Land Madrid from rescued banks) making (EMVS) announced that had sold possible de human rights, and 1,860 social rental homes to the maintenance the resistance of the private equity firm Blackstone for families at their homes. only 128.5 mill €. Also the Housing Institute of Madrid (IVIMA) is going Today PAH has stopped over to sell 2.935 officially protected flats 1000 evictions. to funds. The bank BBVA-ANIDA transferred about 1.000 properties And over 1150 people are living in to funds of the Baupost Group. the buildings occupied by the PAH. Etc. The “party” has just begun. The banks still have huge amounts PAH today is Spain’s most of homes which they want to sell important social movement, but sooner or later. Vulture funds have it’s neither perfect nor a panacea taken the first step to control the to all of the country’s ills. We do real estate division of Bankia and a lot of things that were being Catalunya Banc. La Caixa is negoti- done many years before, in the ating the sale of 51% of Servihabitat neighbourhood movements, the to Texas Pacific Group. PAH accus- squatters’ movements and so on. es all these actors to be responsible The platform was born at the right for the evictions of families, for place at the right time and it has the reduction and plundering of understood how to learn, grow and social housing estates and for expand without losing its essence. the exclusion of the citizens from Perhaps with time, we will be able access to dignified housing. to bring together all of the different social struggles taking place at this Plataforma Afectados moment in history. por las Hipotecas (PAH)

European Action Coalition for the Right to Housing and the City 69 Demonstration Spanish State

70 Istanbul Urban Movements istanbulkenthareketleri.wordpress.com

European Action Coalition for the Right to Housing and the City 71 ISTANBUL URBAN MOVEMENTS THIS IS OUR MANIFESTO OF LIFE FROM TURKEY

n 2003, when Turkey participated the luxurious project of informal in the MIPIM for the first time, Derbent neighbourhood was put more than 20 projects in Istanbul on exhibition while the inhabitants Iwere showcased for the global had been holding negotiations capital. Among these was the with the local municipality! In 2014 Haydarpaşaport project which MIPIM, Zorlu Center Mall, actually aims to gentrify the area around a public land grabbing project the main train station on the Asian which furnished an unbelievably side of the city and to turn the ages- high rent to developer Zorlu old Ottoman cultural heritage (thus a disgrace to the city) was Haydarpaşa Station into a hotel. among the candidates for best Another 2004 Mipim showcase, practices! It is no wonder that the Galataport project, targeted MIPIM presents Turkey as ”…one the main harbour and its vicinity. of the largest and most dynamic The regeneration of the historical construction industries and an Fener-Balat neighbourhood and of expanding international coverage” deindustrialized Kartal were other since urban lands of the country projects at the MIPIM 2004. These – especially those in the big cities projects which have no public – are for sale to global capital benefit at all are still on the agenda. while the populations are faced Galataport and Kartal regeneration with housing rights violations of have almost started. Thanks to its all kinds. neoliberal urban agenda, Turkey was selected as the “country of Today there is a huge amount honour” in MIPIM 2013 and one of of on-going ‘urban renewal’ and the 3 “countries of honour” in 2014. ‘renovation projects’ is going on Projects of displacement and in Istanbul; and these projects are forced evictions, projects that virtually rebuilding the whole city. devastate natural sites such as Solid and well-built buildings, Emaar Square in Camlica or Maslak registered historical buildings, 42 were exhibited. Developer Ali whole neighbourhoods are Ağaoğlu whose bribery operations being destroyed and forest and corruption scandals leaked land conservation areas and lately was hailed as a prominent archaeological reserve areas figure in MIPIM 2013. Besides, are eliminated just for the sake

72 of annuity. Renovation projects that is being blatantly destroyed are initiated into some historical before the very eyes of the whole neighborhoods and people’s public. homes are being expropriated by force. Very valuable historical Previously public areas are now buildings are demolished by the being transfered to privite persons. state. This neighbourhood culture, Hospitals, schools, historical sites, which has been established foundations, land, forest land, through living together for dozens or residences, public institutions and perhaps even hundreds of years is facilities are being rapidly privatised; being destroyed all at once. People and new hotels, shopping centers are being sent away from their and many other touristic facilities neighbourhoods where they have are being constructed in their been surrounded by the good and place. Today 156 school buildings strong neighbourly relationships and in Istanbul have been marketed for strong ties of soildarity established this purpose. through many years, from their places of work where they earn their Hospitals are converted into living, without being offered any hotels, the historical Haydarpasa social support and security, and are Train Station is being converted being sent to the far corners of the into a hotel, Emek Movie Theatre, city to live in poor conditions. is being converted into a Shopping Centre. For the constructıon of In Sulukule, Tarlabasi, Fener- the thırd brıdge, forest lands are Balat-Ayvansaray Zeyrek and in being destroyed, homes located Sulaimaniya, which are all unique on the route of the construction historical districts located in the are being plundered; historical peninsula and which include invaluable examples of NATURE is plundered. In the civil architecture, many registered Black Sea, our streams, our water and important buildings are being supply, our coasts are under threat demolished. Precious examples of by hundreds of Hydro-electric the Ottoman architecture, wooden Plant projects. houses, are exterminated ruthlessly. İstanbul is losing its unique historical, Capitalism is attacking from architectural character. all directions. Now any ideology or a particular worldview is not Despite judicial decisions important at all. Because this regarding the salvage of these process will not leave to us a world areas, the archaeological wealth the where we can live; For this process underground archaeological wealth, won’t leave us with a world we can as well as that above the ground, live in, there won’t be left any air

European Action Coalition for the Right to Housing and the City 73 ISTANBUL URBAN MOVEMENTS to breathe. They do not leave us ambition and greed. It is a problem any clean water and shelter for within the system itself and it should housing. They’re forcing us to be be explained thoroughly to younger surrounded by unemployment and generations very well. And if we to be left without bread. can manage to do this, then neither special law articles nor specially This extinction is something designed rules can overcome that is very important for everyone, the power brought about by the because everyone is going to get togetherness and unity of society hurt. In this system, all the victims, and can be justified. And then, the oppressed, the marginalised, also supported by the huge energy irrespective of any ideology, should of the youth, we can build a more come and act together with the aim sustainable world for ourselves… of reclaiming what is being taken away from them by force. Istanbul Urban Movements

The only way to overcome this problem is to somehow reshape social consciousness in a way that subordinates individual interests to those of the public and puts social benefits at the top of all other concerns.

Otherwise, we simply cannot find the air to breathe, cannot find a single piece of healthy food left in the near future. Rivers, streams, seas, green areas, forests, water, meadows will all be extinct. In a world surrounded by hotels and shopping centres, in a global market where we are not customers, we will become waste people pushed out of life with each passing day.

In Capitalism, with neoliberal policies, all the precious resources are used up for the welfare and pleasure of a handful of people, a small majority in society. The world we live in, our habitat is sacrificed to

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