Closing the Investment Gap in Europe’s Cities Launch Report: Urban Investment Network A ULI Europe Publication in partnership with ING Real Estate February 2009 Greg Clark Senior Fellow, ULI Europe Joe Huxley Research Associate with Gert-Joost Peek ING Real Estate Marrit Laning ING Real Estate Jan Maarten de Vet ECORYS Research and Consulting Urban Land Institute (ULI) The mission of the Urban Land Institute is to provide leadership in the responsible use of land and in creating thriving communities worldwide. ULI is a non-profit research and education organisation founded in the USA in 1936 and dedicated to the best in land use policy and practice. It has over 35,000 members across 92 countries worldwide including over 2,400 in Europe representing the entire spectrum of land use and development disciplines in both the private and public sectors. The ULI is the leading multidisciplinary industry forum encouraging the exchange of ideas, information, and experience, and a think tank where members grow through sharing, mentoring and problem solving. ULI is a non-partisan research and educational institute directed by its members and supported by dues. It neither lobbies nor acts as an advocate for any single profession or industry. The Institute operates on a USD 55 million budget with a global staff of 140 headquartered in Washington, D.C. At the heart of the ULI experience is an open exchange of ideas, networking opportunities, and the ability to work with the leaders of the land use industry.1 ULI Europe The ULI Europe office was opened in 2004 in London and is committed to bringing timely and informative programmes to all segments of the property community in Europe. • Bring People Together–ULI activities in Europe are diverse, frequent, and of high quality including conferences, invitation-only roundtable District Councils and research panels. • Provide Information–ULI leadership in education and research examines key trends and issues, provides practical tools for industry professionals. • Share Best Practice–ULI draws upon the knowledge and experience of its members to encourage and recognise excellence. ULI’s activities in Europe are diverse, frequent, and high quality. The annual Property Development, Investment, and Finance conference held each January in Paris attracts over 500 leaders from Europe and North America.2 Closing the Investment Gap in Europe’s Cities | ULI 2009 ING ING is a global financial services company of Dutch origin offering banking, insurance and asset management services to over 85 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of about 130,000 people, ING is dedicated to setting the standard in helping its clients manage their financial future.3 ING Real Estate ING Real Estate is an integrated group that is engaged in the development, finance and investment management of quality real estate in the world’s major markets. With a total portfolio exceeding EUR 115 billion, it ranks among the leading global real estate companies, serving a broad client base from 22 offices across Europe, North America, Australia and Asia.4 ECORYS ECORYS is an international company specialising in economic, spatial and social development. It works with clients in the public, private and not-for-profit sectors and applies its expertise to improve the economic and social conditions of: ■ The countries in which we live and have our offices; ■ The European Union and its neighbouring states; and ■ Developing countries, especially for poverty alleviation. Its aim is to deliver real benefit to society through the work it does. It believes that to develop good policy it is important to understand how to deliver it; and in order to deliver well you must understand the policy you serve.5 Urban Investment Network (UIN) The ULI Urban Investment Network exists to promote and facilitate world class investment in European urban development. The initiative has been developed by the Urban Land Institute in collaboration with a group of leading cities, European institutions and private sector organisations. This independent Network is facilitating a continuous dialogue between those public and private sector leaders seeking to improve their ability to collaborate. Its premise is that public - private relationships with a high level of collaborative working provide more opportunities to bridge investment gaps and overcome city development challenges. 1 Biographies and Acknowledgements Greg Clark Greg Clark is a Senior Fellow of ULI Europe. He is also Lead Advisor on City and Regional Development at the Department for Communities and Local Government, UK; Chairman of the OECD Forum of Development Agencies and Investment Strategies; Professor at Cass Business School, City of London; and advisor to cities and companies world-wide. In 1995, he was elected as a Harkness Fellow and spent 18 months in North America as a guest of the US Federal Government assessing city and regional economic development in 12 North American metropolitan regions from a base as a Fellow at Columbia University in New York City. As Chairman of the European Urban Development Forum from 1996 to 2000, he oversaw reviews of development and regeneration in 24 European Cities/Regions. In 2004, he provided training to city and regional development leaders from nine Southern African cities. In 2005, he reviewed urban regeneration in seven Asian world cities for the OECD. He also has directed comparative studies and assessments of London and New York, British and Spanish cities, UK and Canadian cities, and UK and Chinese cities. Joe Huxley Joe Huxley is a recent Geography graduate of Oxford University with specialisms in urban and regional geographies, and applied research on city investment and development. Joe has since worked directly with the cities of Barcelona, Toronto, London, Edinburgh, Cape Town, Auckland, Sheffield and Johannesburg on themes such as urban development strategy, city branding, investment promotion and facilitation, city centres and global event hosting. He has also advised on the London 2012 Olympics for the British Government and edited three books on city and development themes for the OECD. Acknowledgments Núria Valle Barcelona Activa, Barcelona Mateu Hernández Barcelona Activa, Barcelona Lorna Maxwell Economic Development and Forward Planning Unit, Dublin Janinka Feenstra Kennispark Twente, Enschede Henrik Einarsson Business Region Göteborg AB, Gothenburg Mark Barton, Clyde Waterfront, Glasgow Paul Kane Development and Regeneration / Commonwealth Games Delivery, Glasgow Stefan Heinig City of Leipzig, Leipzig Jan Richert City of Leipzig, Leipzig Alex Bax Greater London Authority, London Peter MacLennan Transport for London, London Camille Lenoble ADERLY, Lyon Bengt Lövdén Trade and Industry Agency, Malmö Carol Bartram New East Manchester Ltd, Manchester Gary Crate Sportcity, Manchester Grazyna Sworek City Development Department, Poznań Milan Turba City Development Authority, Prague Chris de Lange Rotterdam Municipality, Rotterdam Carlo Spinelli Torino Internazionale, Turin Barbara Kruszewska City of Warsaw Promotion Department, Warsaw Amanda D’Arcy AD Design, Essex, [email protected] As well as anyone we may have missed out, thanks must also go to contributors whose materials have not found their way into this final draft. Rest assured, the information you provided will be helpfully used elsewhere. 2 Closing the Investment Gap in Europe’s Cities | ULI 2009 Contents Executive Summary 4 1 Introducing the investment gap 6 2 Exploring the investment gap 13 3 Approaching the investment gap: a review of current methodologies 23 across European cities 4 Bridging the gap: key principles 33 5 Closing the gap: the requirement for a Urban Investment Network 55 References and bibliography 58 3 Executive Summary Proposition. In this report we assert that actual investment achieved (a numeric gap are undoubtedly opportunities in the current European cities are critical to the success of between capital needed and capital attracted). situation, the main impact of the economic Europe socially, economically and Secondly, we observe the tendency for both crisis is to make city investment more difficult environmentally, and that this success can only investors and cities to pursue the same and to require greater thought and skill in how be realised if we invest directly in cities, and undifferentiated formulas, despite their investment is framed and facilitated. increase the rate of investment in Europe’s distinctive needs and opportunities (a cities over time. However, an investment gap knowledge and skills gap) with consequences The chapter concludes by suggesting that for a in Europe’s cities is identified in multiple forms for urban quality. Thirdly, we observe that the city to achieve important development goals a and this must be bridged if Europe’s cities are path to success in achieving higher rates of purposeful leadership effort is required to to succeed in our new globalised system. investment appears to lie in (1) cities taking integrate the four investment drivers together Europe’s cities are amongst the oldest in the pro-active and co-ordinated actions to set out a in the form of a clear and confident investment world and they require continuous reinvestment unique sense of purpose and integrated actions, strategy. It is such strategies that deliver long and modernisation if they are to keep pace with and (2) investors working in dedicated ways to term investment which will create