COVER NEWS ISSUE 50 MARCH/APRIL 2015 FEATURES REFERENCE – All BEPS are off - FTSE EPRA/NAREIT Global – Annual Conference preview Real Estate Indices – On German foundations - Social media platforms – Quantitive easing and listed real estate Raising the roof - capital raisings Inna Maslova Why the modern shopping centre disappoints women Scott Malkin EPRA MEMBERS AS OF MARCH 2015 AUSTRALIA • Hamborner • Tilburg Univ. • Grainger • Univ. of Western Sydney, • Heitman • Univ. of Maastricht • Great Portland Estates Property Research Centre • IREBS International RE • VastNed • Green Street Advisors • Resolution Capital Business School • Wereldhave • Grosvenor Group • LEG • Yardi • Hammerson AUSTRIA • MEAG Real Estate Management • Hansteen Holding • BUWOG AG • POLIS Immobilien NORWAY • Helical Bar • CA Immobilien Anlagen • PricewaterhouseCoopers • Norwegian Property • Henderson Global Investors • Conwert Immobilien Invest • Puhl Gmbh • HSBC • Immofinanz AG • Real Estate Management SINGAPORE • intu • Sparkassen Immobilien Institute • Keppel Land Limited • Invesco • SEB Asset Management • National Univ. of Singapore • Jefferies BELGIUM • TLG Immobilien • JPMorgan • Aedifica • VIB SOUTH–AFRICA • JLL • AG Real Estate • Victoria Partners GmbH • Growthpoint Properties • Kennedy Wilson Europe Real • Antwerp Management School • Westgrund Estate • Banque DeGroof SPAIN • KPMG • Befimmo GREECE • Axiare • Land Securities • Cofinimmo • Grivalia Properties REIC • Hispania Activos Inmobiliarios, • Linklaters • Leasinvest Real Estate • Lamda Development S.A • LondonMetric • Retail Estates • National Bank of Greece • Inmobiliaria Colonial • Medicx Fund • Solvay Business School Property Services • LAR Espana • M&G Investment Management (Brussels Univ.) • Trastor REIC • Merlin Properties Socimi, S.A. • Morgan Stanley • WDP • TESTA Inmuebles & Renta • Nabarro HONG KONG • NewRiver Retail BRITISH VIRGIN ISLANDS • Univ. of Hong Kong SWEDEN • Nottingham Trent Univ. • Eastern Property Holdings • 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Research • Cegereal • GAGFAH UAE • Urban & Civic • Eurasia Groupe • Grand City Properties • Abu Dhabi Investment Authority • Workspace Group • Foncière des Regions • Orco Property Group • Gecina UNITED KINGDOM USA • ICADE NETHERLANDS • AEW • Center Square • IEIF • ABN Amro • AMP Capital • Cohen & Steers Capital • Ivanhoe Cambridge Europe • Amsterdam School of RE • Assura Management • Klépierre • APG Asset Management • Aviva Investors • Duff & Phelps • Mazars • ASR • Bank of America • EII Capital Management • Mercialys • Atrium European Real Estate • Barclays Bank • Fidelity Management & Research • Predica • BPF Bouwinvest • Barclays Capital • Forum Partners Investment • Société Foncière Lyonnaise • CB Richard Ellis • BDO Management • Société Générale • CBRE Global Investors • Big Yellow Group • Host Hotels & Resorts • Unibail–Rodamco • Clifford Chance • Blackrock Asset Management • Neuberger Berman • Université de Paris–Dauphine • Corio • British Land • Real Capital Analytics • Cornerstone Real Estate Advisors • Capital & Counties Properties • Real Foundations GERMANY • Deloitte Real Estate • CBRE Clarion Securities • Russell Investment Group • Adler Real Estate • Eurocommercial Properties • Credit Suisse Securities • Simon Property • Allianz Real Estate • Kempen & Co • Derwent London plc • SNL Financial • alstria Office REIT • LaSalle Investment Management • Deutsche Bank • Univ. of Cincinnati • Deutsche Annington • Loyens & Loeff • Deutsche Alternative & Wealth • Ventas • Deutsche EuroShop • MN Services Management (UK) • Virginia Tech Univ. • Deutsche Wohnen • NSI • Digital Realty (UK) Limited • Westfield Group • DIC Asset • Northwood Securities • EY • Zell–Lurie RE Center at Wharton • DO Deutsche Office AG • PGGM • GIC Real Estate • Fair Value REIT • Redevco Europe Services • Goldman Sachs International 2.2. _ EPRA EPRA NEWS NEWS / /29 50 / /2008 2015 CONTENTS NEWS ISSUE 50 | MARCH/APRIL 2015 CREDITS GUEST EDITOR Matthew Tippett 4 CEO UPDATE 8 Editor & Production Manager Dominic Turnbull FEATURES Why the modern shopping centre disappoints women 10 Guest Editor Matthew Tippett UK property market on course for a bumper year in 2015 13 Article Credits Consolidation in the European real estate sector: Alexey Akimov Tuomas Lesonen Andrea Boltho Scott Malkin what’s next? 16 Graeme Gibbs Simon Stevenson Hanna Kaleva Philippe Le Trung Great results deserve high visibility reporting 20 Tim Kesseler Inna Maslova Chyi Lin Lee Raising the roof 22 On German foundations 28 Please send your comments and suggestions to: [email protected] In the interest of movement 32 Design & LayOut Fuse Consulting Limited Quantitive easing and listed real estate 36 London [email protected] All BEPS are off – or are they? 40 Printers A sellers’ market 44 Wyndeham Grange Annual Conference preview 47 EPRA Square de Meeus 23, Trends changing the Finnish market 51 B–1000 Brussels +32 (0) 2739 1010 REFERENCE PAGES FTSE EPRA/NAREIT global Real Estate indices 54 Updated EPRA BPR and EPRA Sustainability BPR available now www.epra.com/bpr EPRA NEWS / 50 / 2015 3. GUEST EDITOR BATTLING THE WINTER BLUES Green–thinking firms tious global deal looks more pos- tinue to grow unabated, especially should feel optimistic, sible now than it has done for years. in Europe. Despite Europe’s trou- President Barack Obama clearly bles, it has managed to maintain a but consider what else hopes that he can make climate climate leadership role with new they can do to turn change part of his legacy and has 2030 targets which, though flawed, sustainability into a proposed a cut in carbon emissions, keep the continent just ahead of the by 2025, of between 26% and 28% game on cutting carbon. competitive advantage. over the 2005 level. Meanwhile China’s president Xi Jinping has Mounting pressure from EU It’s the time of year when we all matched this commitment by, for the regulators get a little down in the dumps. We’ve first time, offering to “peak” carbon Let’s not forget the sector has a sig- had enough of hibernating inside emissions by 2030. nificant part to play in helping the away from the cold and dreary continent meet these targets. After outdoors. Thankfully there are hints All this diplomatic goodwill all, globally, the built environment that the British spring time is upon points to a bright outcome in Paris. accounts for 40–50% of natural us. For the next few weeks, while But of course there is still the real resource use, 20% of water use, we’re locked in winter survival possibility that it will simply be- 30–40% of energy use and around mode, I thought we all might need a come the next Copenhagen – a bitter a third of CO2 emissions. For this few tricks to beat those winter blues. disappointment. Even if Paris does reason alone, the sector will con- As one key event – namely the UN fall short of the ambitious agree- tinue to be targeted by regulators for climate negotiations in Paris – makes ment needed, the green building opportunities to improve efficiency 2015 special when it comes to the movement will most definitely con- and reduce emissions. environment, so let’s take a look at why green–thinking firms should feel The built environment accounts for optimistic this year. 40–50% of natural resource use, 20% A pivotal year for UN climate negotiations of water use, 30–40% of energy use For one, 2015 could be a pivotal year for UN climate negotiations in Paris and around a third of CO2 emissions. this December as sealing an ambi- 4. EPRA NEWS / 48 / 2014 If nobody knows what they’re measuring, then they’re going to get to 2049 and realise that they’ve only got a year to cut 80%. GUEST EDITOR Matthew Tippett Indeed there is already clear Encouragingly, JLL’s research pressure from EU regulators, bol- found that the properties participat- stered by vanguard national policies ing in its Real Estate Environmental in several countries. For example, to Benchmark have reduced their help meet its legally–binding climate emissions on average by 27%, or goals the UK Government plans to 6% a year – well above the level make it unlawful to let commercial required to meet the Government’s properties that do not meet a goal. However, the report also warns prescribed minimum energy ef- against complacency and estimates ficiency standard (MEES). Anecdotal that the rest of the sector needs to evidence suggests that buyers and do far more to achieve its share of potential tenants of poorly–rated the reductions needed. To do this, premises are looking carefully at the JLL emphasises the importance of: risks before committing to transac- 1.