20 March, 2010
It has been 21 years since MIPIM launched its first trade show to the world, the event like previous years was held in Cannes, France on 16-19 March 2010. DTZ actively participated by including a global stand at this international exhibition.
MIPIM 2010 is distinctive due to the following factors: a large number of owners and managers at the top, not middle, level are present with investors focused on their local markets. The exception was the Asian markets, according to analysts, which will catch institutional investors’ interest in the medium term. Neighbouring country representatives came from Poland (above 400 participants) and Russia (above 1,100 participants), including mayors and governors of regions.
Russia presented its investment projects in a separate pavilion located near the Paris and London pavilions. Business and government representatives of Russia participated in two round table discussions. Poland was designated “Country of Honour” for MIPIM 2010. Polish hotel Lodz was a winner in the “Hotel and tourism resorts” category of the MIPIM awards.
Most of the analysts and investors attending the exhibition agreed that: the overall recovery of the real estate market in UK was generally slow; Brazil are capitalising on the forthcoming “Football World Championship 2014” and “Olympic Games 2016” by making preparations well in advance of these events; and South Korea’s presence on the scale of the project presented, Dream Hub in Seoul, impressed with its size of both investment (US$28bn) and height of buildings (655 metres).
In terms of Ukraine, during the round table discussion “A fresh look at hotel development: concepts-contracts-financing”, it was noted that in the next three years this sector could become one of the fastest growing in Ukraine, Turkey and Russia; at the same time the lack of credit could affect development. Despite this the hotel operator, Accor Group announced that in April 2010 Kyiv will be opening their first hotel IBIS; this confirms that there is interest from operators within the hotel industry. For the retail sector, investors mentioned that the potential unstable political situation and impossibility of hedging currency risk is a negative factor.
As in 2009, DTZ produced a brochure specifically for MIPIM, entitled “The best projects in Ukraine in 2010”, detailing 13 projects, 8 of which belonged to the hotel sector; confirming the country’s active preparation for the Euro 2012. There were three projects with a commitment of more than 50%. This means projects have become more realistic when it comes to bank financing and investor opportunity. It is noted that the process of returning to the basics: location and demand from tenants/operators are forming the main criteria for potential investors.
