Archive for the ‘MIPIM’ Category

How about Turkey….high return, low risk ?

Friday, March 11th, 2011

Dr. Kıvanç ErmanPosted by: Dr. Kıvanç Erman
Director, Capital Markets & Advisory
Jones Lang LaSalle Turkey

As you may be aware, Turkish Real Estate markets have been subdued for the last three years. 

Since the beginning of the economic crisis, we have been arguing that Turkey will be able to profit from this turmoil as we are the only country in Europe which did not spend a penny on the banking system. In 2009, when the crisis was much deeper, the Turkish retail sector has seen a net real growth of 20% with projects delayed but not cancelled. Turkish banks had piles of cash and nowhere to put it, therefore we did not have a cash squeeze either. Although our stated prime yield (speculative of course) was 8% for retail & offices, we are ready to bring it down to 7.5% in the first half of 2011 and most probably to 7% at the year end. Thus, in such an environment, it is expected to have a huge interest from the international investor, looking for a high return / lesser risk.

Whilst I arrived in MIPIM with a few spare slots in my diary, inevitably I ended up with no spare time left due to speculative client meetings. I observed a huge demand from international institutions, not only for existing schemes but also for developments as well. This MIPIM, I think the Turkish team met the most possible number of clients, local & international. Zorlu’s sponsorship of the opening cocktail party was a Turkish team success, namely down to our Chairman Avi Alkas, and this was an important event to make people remember Istanbul & Turkey.

It was not only the Turkish team who promoted Turkey but also our Pan- European Capital Markets team, in particular Jeremy Eddy as well as our Retail CEO Robert Bonwell. We all worked together to illustrate to international investors that Turkey has changed and is now similar to a unicorn in that you don’t believe in its existence and it is something you can only dream of. I personally talked about at least five possible deals that we couldn’t have even dreamt of a year ago and this is hopefully a good sign of what’s to come this year.

Posted in MIPIM, Turkey | No Comments »

Sun, Sea, Sand and Real Estate

Friday, March 11th, 2011

Posted by: James Brown
Head of EMEA Retail Research
Jones Lang LaSalle EMEA Research

What could be better? All in all a good week at MIPIM. Cautions optimism in the air compared to the pre-crash blind optimism that caught so many out.

From an EMEA retail perspective, UK, France, Germany and the Nordics still appear top of investor agendas. However there is no lack of appetite for other EMEA markets, including: Russia, Turkey and even recently troubled North Africa, which for some there is strong belief that once the dust settles significant opportunities still exist.

Warren Buffett said that it is only when the tide goes out that you can see who has been swimming without their trunks on. Well, the tide is now coming back and it is very much ‘back to business’. Availability of debt remains a hurdle and some may not make it back into the water, but those that do are right to remain cautious of where and when to swim.

After a good week it’s time to pack my trunks and head home.

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The Russians are coming…… again!

Thursday, March 10th, 2011

Jeremy Eddy Jones Lang LaSallePosted By Jeremy Eddy
Director, European Retail Capital Markets
Jones Lang LaSalle

Thank goodness for that. The slightly conservative event that MIPIM has been over the last couple of years has seen a boost again this year with a much larger Russian contingent. This market has its obvious attractions of strong growth and scalable city markets market. Russia has attracted cyclical investment to date from a limited investor base, however we believe this year will see investors taking significant positions in what is Europe’s most accessible BRIC economy. Similarly Turkey, ULI’s number one investment destination in 2011, exhibits the same growth characteristics and a burgeoning real estate sector.

Both these markets appear to have appeal for return driven investors, however the principal challenge in terms of further internationalisation of the market and real delivery on this appeal, would appear to be to avoid the “all that glitters is not gold” analogy. As we have experienced in these markets the biggest tangible risk is vendor related, with irrational pricing decisions, unappealing ownership structures as well as inconsistency in technical and legal aspects, the reward is clearly not without risk.

However we believe that now is the time for these markets, having missed out during the last cycle. More challenging is the business case for the North African markets, many of whom must have taken up the MIPIM early bird booking form! Many projects in this region are now looking extremely ambitious from a financing perspective however we have been reassured that as things settle in these economies and the outlook becomes clearer, occupiers and developers are poised to take advantage of the latent potential of these underdeveloped markets.

The great news is that we have real strength in Russia, Turkey and indeed the MENA region so wherever the action is we will be there.

Posted in MIPIM, Sweden | No Comments »

MIPIM – Let it shine

Monday, March 7th, 2011

Jeremy Eddy Jones Lang LaSallePosted By Jeremy Eddy
Director, European Retail Capital Markets
Jones Lang LaSalle

 Another year and fortunately it does not feel like the last few…

The kick-start to the market was Expo in Munich last October where the confidence of the German market became infectious. In November at MAPIC we really felt that the market was starting to move again, with activity returning across the region. As we have moved into Spring 2011 we now feel we are entering a period of real growth.

I have always wondered if there is a strong correlation between the weather in Cannes and the market performance in the following quarters. I for one will be packing my shades this year and hoping for sunshine.

The Capital Markets team is coming to MIPIM this year with great confidence. We have a significant book of sales that we are delighted our clients have entrusted us with. We see a real depth in the buying community across all buyer types and we have come through the last few years with our teams intact and an unrivalled track record and client base.

At Jones Lang LaSalle we have embraced our clients’ demands for real local expertise coupled with regional and global reach. This year we will have a very strong country representation as well as our unique EMEA Capital Markets and International Capital groups, with delegates from the US, Asia and MENA regions. All of these are backed up by our Global Capital Markets Research team led by Paul Guest.

Be sure to attend one of the events organised in our beach facility and if not let’s catch up on the Croisette. I will be the one wearing the shades hopefully!

Posted in By Event, Investment, MIPIM | 1 Comment »