RE VIEW Highlights of the REALTY 2012 seminar program<2012

Let’s talk real estate

Leap in International Investorsattending Realty 2012

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REALTY 2012 Sees Leap in International Investors AttendingCare homes, retail top Benelux investment picks Offi ce conversion a growing trend in Benelux - Investment Briefi ngEU Plans to Boost Growth and Slash Energy Use Should Prioritize PropertyInsurers to make up 20% of property lending by 2015Some Pics OF REALTY 2012Belgium’s Biggest Insurer Likely to Buy Real Estate Debt, CEO SaysEU Regulations Could Favour Non-European Property InvestorsBIG Sustainable Development (but fun too)Cities Need Imaginative Urban Mobility Solutions or Face GridlockFact & fi gures

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THE REALTY 2012

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INTRODUCTION 3

THE REALTY 2012

The number of international property investors attending this year’s REALTY real estate trade fair between May 22 - 24 soared by over 50%, as investors appeared to view the commercial market of Europe’s capital and its Belgian environs, with its concentration of EU government-linked institutions, as a relative safe haven compared with some countries hit by the eurozone crisis.There was also a strong increase in retailers attending REALTY and both trends probably refl ect the increasing demand forexhibition space and the quality of the associated social events and seminar programme.

The total number of visitors this year rose by 9% to over 5,300, compared with 2011 -- when attendance leapt by more than 40% -- which indicates the growing maturity of the event in its fourth year as an annual fi xture on the European circuit of major real estate trade fairs including MIPIM in Cannes in March and ExpoReal in Munich in October.

This year REALTY included more than 50 receptions at exhibitors’ standstogether with in-depth seminars and lunches.

The opening event of the seminar program was the European Real Estate Policy & Investment Forum organized by PropertyEU. Brussels MayorFreddy Thielemans told the event that the city’s commercial property market was less vulnerable to the fallout from the Eurozone crisis, because it was not so dependent on fi nancial businesses or the spending of national governments as others.Attendees at the forum heard from European industry associations EPRA and INREV and other speakers that the EUcould achieve the biggest payoffs in its key objectives of boosting economic growth and cutting the bloc’s energyconsumption by carefully assessing the impact of regulation and targeting fi nancing on the real estate sector.

Alternative visions of the future of real estate development and city planning were presented atthe CityBoom Booming Cities - Blooming Cities session organized by the Belgian Real Estate Trade Federation (UPSI-BVS).

The fi nal day of REALTY focused on the retail market, with a seminar organized by BLRW-CBLCC (Belgian Council of Shopping Centers)and the Retail Forum Belgium, attracting more retail end-users to the trade fair than ever before.

Clear investment themes are emerging at REALTY, based around the main property sectors including offi ces, retail and logistics,as well as Brussels, and Belgium generally, as a destination for international real estate capital. Next year’s show willbuild on these themes and, based on the current growth trend, should be the biggest ever.

REALTY 2012Sees Leap in InternationalInvestors Attending.

REALTY 2012 Sees Leap in International Investors AttendingCare homes, retail top Benelux investment picks Offi ce conversion a growing trend in Benelux - Investment Briefi ngEU Plans to Boost Growth and Slash Energy Use Should Prioritize PropertyInsurers to make up 20% of property lending by 2015Some Pics OF REALTY 2012Belgium’s Biggest Insurer Likely to Buy Real Estate Debt, CEO SaysEU Regulations Could Favour Non-European Property InvestorsBIG Sustainable Development (but fun too)Cities Need Imaginative Urban Mobility Solutions or Face GridlockFact & fi gures

Gregory Olszewski,Exhibition Manager,Realty 2012

Sees Leap in InternationalInvestors Attending.Sees Leap in International

“The total number of visitorsthis year rose by 9% to over 5,300, compared with 2011.”

THE REALTY 2012

4 CARE HOMES

Care homes, retail top Benelux investment picks

INTERVIEW 5

Asked to comment on whichsegments and locations he would choose to invest a notional EUR 500 mln, panellist Heino Vink, CEO of shopping centre developer MultiCorporation, said real estateconnected to the needs of the aging population would be his top choice.

“I would spread the money and not put it all into one project or sector.While I have yet to see the best con-cept I would invest in something to do with taking care of the elderly. If one thing is certain in life it´s that we are all growing older and will need more care and help at some stage.”

Vink said he would also invest in smaller and larger shopping centres in the larger cities of the Benelux such as Amsterdam, Brussels, Rotterdam, Antwerp and Brugge.

“I would pick inner-city retail locations - established market places since those cities were founded hundredsif not thousands of years ago.”

Retail was the fi rst choice forfellowpanellist Peter Wilhelm, CEO of Wilhelm & Co, who said he wasa strong believer in investing in‘what you understand’.

“I understand retail which is not just a real estate asset. It is very special,somewhere in between real estate and an operational business like hotels so you need double the expertise to understand it.”

Turning to specifi cs on where he would invest his EUR 500 mln,Wilhelm said the Neo shopping centre-anchored project in northern Brussels looked attractive.

He noted, though, that the tendering process for the Neo project,championed by Brussels municipal-ity, had just begun and that he was therefore speaking hypothetically.‘I would invest in Neo as there isdemand for a large shopping centrein Brussels. ‘So if it is well conceived it is almost a no-brainer.’

Most shopping centres in Belgium are between 25 and 35 years old. Wilhelm is a developer ofretail-led, mixed-use schemes in Belgium, France Italy and Portugal.

Tristan Dhondt, Real Estate leaderBelgium at Ernst & Young told the briefi ng that he would invest the notional funds in retail and residential property in inner-city locations inthe Benelux.

Care homes, senior living and shopping centres emergedas the top choices for investment atthe Property EU Benelux Investment Briefi ng

Peter Wilhelm,CEO of Wilhelm & Co

Tristan DhondtReal Estate Leader Belgium at Ernst & Young

Care homes, retail top Benelux investment picks

“I would spread the money and not “I would spread the money and not “I would spread the money and not “I would spread the money and not “I would spread the money and not “I would spread the money and not put it all into one project or sector.put it all into one project or sector.put it all into one project or sector.put it all into one project or sector.

‘I would invest in Neo as there is‘I would invest in Neo as there isdemand for a large shopping centredemand for a large shopping centrein Brussels. ‘So if it is well conceived in Brussels. ‘So if it is well conceived it is almost a no-brainer.’

“ I am a strong believer in investing in ‘ what you understand ’.”

Peter Wilhelm, CEO of Wilhelm & Co

THE REALTY 2012

6 OFFICE CONVERSION

The Netherlands and Belgium suffer from high vacancy rates compared with neighbouring markets.At 16%, the Netherlands has one of the highest offi ce vacancy rates in Western Europe. Amsterdam - which has a number of competing A andB-class offi ce locations - has a vacancy rate of between 17-18%. Brussels has a lower vacancy rate than Amsterdam. In 2011 the average offi ce vacancy in the Belgian capital was around 12%.But some offi ce clusters had void rates of as much as 35%, accordingto a recent CBRE report.

Tristan Dhondt, Real Estate leaderBelgium at Ernst & Young and one of the panellists at the briefi ng, said there are a number of conversionprojects under way in the Dutch mar-ket, with new uses ranging from

hotels, residential accommodation, student accommodation and nursing homes. ‘There are a lot of projects today that involve conversion to student housing,’ he said.

Examples of such redevelopments in Amsterdam - highlighted in the May edition of PropertyEU Magazine - include City Living working on the conversion of an old offi ce building formerly occupied by publisher Reed Elsevier into The Student Hotel.The fi rst phase of the project is due to be completed by spring 2013.

Heino Vink, CEO of Multi Development, told the Investment Briefi ng that some offi ce buildings in theNetherlands that were recognised by everyone as ‘totally valueless’ over the last fi ve years have fi nally under-gone signifi cant re-pricing in

Converting empty offi ce properties to other uses is agrowing trend in the Netherlands and Belgium,the PropertyEU Benelux Investment Briefi ng heard.

Offi ce conversion a growing trend in Benelux

some offi ce buildings in thesome offi ce buildings in the

everyone as ‘totally valueless’ over everyone as ‘totally valueless’ over

gone signifi cant re-pricing in gone signifi cant re-pricing in

Netherlands that were recognised by Netherlands that were recognised by

the last fi ve years have fi nally under-the last fi ve years have fi nally under-

student accommodation and nursing homes. ‘There are a lot of projects today that involve conversion to student housing,’ he said.

At 16%, the Netherlands has one of At 16%, the Netherlands has one of the highest offi ce vacancy rates in the highest offi ce vacancy rates in Western Europe. Amsterdam - which Western Europe. Amsterdam - which

the last six months. In some cases the re-pricing entailed a 40-50% drop in valuations. “This makes it fi nancially viable toundertake redevelopment,” he said. “Finally, banks and owners have been forced to come to the conclusion thatthe value of these buildings has dropped and it is now possibleto redevelop.”

CBRE said thatconversion has beena feature oftheBrusselsmarket formany years.

Some 300,000 m2 of offi cespace has been transformedinto housing, elderly homes,hotels or schools.

INVESTMENT BRIEFING 7

Heino VinkCEO of Multi Development

“The Netherlands and Belgium suffer from high vacancy rates.”

Offi ce conversion a growing trend in Benelux

THE REALTY 2012

8 BOOSTING GROWTH

“Economic growth in Europe is notgoing to come from exports, when theprospects for our major trading partners in the U.S. and China look distinctly murky. It’s also not going to come from internal consumptionin the EU with its recession-hi economies and high unemployment. The usual solutions aren’t working and it’s time to look for new sources of growth like the massrefurbishment of buildings to make them energy effi cient,” Carsten Brzeski, Senior Economist at ING Bank said.

Jeff Rupp, Director of Public Affairs atINREV (the European Association for Investors in Non-listed Real EstateVehicles) argued that policy makers are actually heading in the opposite direction and reducing the fl ow of capital invested in Europe’s cities -- and so also job creation and

EU Plans to Boost Growth and Slash Energy Use Should Prioritize Property

The EU’s twin key objectives of boosting economic growth against the background of the eurozone crisis and cutting

the bloc’s energy consumption by 20% by 2020,might achieve the biggest payoffs by directing fi nancing

towards the real estate sector, attendees at the EuropeanReal Estate Policy & Investment Forum heard.

Steffen MilnerEU Affairs and Regulation Manager at EPRA

The usual solutions aren’t working The usual solutions aren’t working and it’s time to look for new sources and it’s time to look for new sources and it’s time to look for new sources of growth like the massof growth like the massof growth like the mass

INVESTMENT BRIEFING 9

EU Plans to Boost Growth and Slash Energy Use Should Prioritize Property

economic activity -- through a wave of new regulations on the industry such as Solvency II, AIFMD and EMIR.“The economic impact of theseregulations should be understoodbefore they are implemented, not afterwards. Policy makers need to engage in a careful cost-benefi tanalysis of the proposed regula-tions to ensure that the costs don’t outweigh the benefi ts,” he said.

Steffen Milner, EU Affairs and Regula-tion Manager at EPRA (the European Public Real Estate Association) said Brussels is not on track towards achieving its target of achieving a 20% cut in the EU’s energyconsumption by 2020, but it couldimprove its chances of achieving that goal signifi cantly by focusing its efforts and fi nancing on Europe’s property industry. Some 40% of Europe’s fi nal energy consumption is

in houses, offi ces, shops and other buildings, and 38% of totalgreenhouse gas emissions come from the built environment.

On May 15, EPRA responded to aEuropean Commission consultation paper on: “Financial Support for EnergyEffi ciency in Buildings” in which it said the listed property sector could act as a “one-stop shop” for implementing the EU’s energy effi ciency targets as they are active operational businesses thateffectively combine the services offi nancing, developing, and managing buildings for the long-term.

The EU’s listed property sector is,however, fragmented and evidently small and underdeveloped relativeto other regions and this severelyhandicaps efforts to achievepan-European goals in one of the underlying fundamental drivers of

the bloc’s economy.

EPRA urged policy makers toencourage national governments to adopt “best in class” REIT(the most effi cient form of listed property company) legislation across the EU to act as common vehicle for transforming the industry.

EPRA’s letter said that while the EC’s consultation paper identifi ed aninvestment need of around EUR 60 billion a year in the building sector to realise its required energy savings potential, this fi gure is signifi cantly less than the capital that could be taken out of the real estate industry by the application of legislation on OTC derivatives alone.

Carsten Brzeski, Senior Economist at ING Bank

“The usual solutions aren’t working and it’s time to look for new sources of growth.” Carston Brzeski

Senoir Economist at ING Bank

such as Solvency II, AIFMD and EMIR.“The economic impact of thesesuch as Solvency II, AIFMD and EMIR.“The economic impact of these

before they are implemented, not before they are implemented, not regulations should be understoodregulations should be understood

afterwards. Policy makers need to afterwards. Policy makers need to

THE REALTY 2012

10 OFFICE CONVERSION

Some EUR 800 bn of real estate debt is due for refi nancing in Europe over the next three years, while the lending contribution from insurancecompanies will only be a fraction ofthe total, Ad Buisman, EMEIA real estate leader at Ernst & Young, said.

Many banks are abandoning or scaling back on real estate fi nancing due to the combination of bad loans built up since the mid-2000s and the European Union’s incoming Basel III regulations that will impose higher risk provisions.

The incoming Solvency II rules willimpose similar capital reserverequirements on insurancecompanies: 25% on direct real estate; 39% on listed real estate and 49% on real estate fund investments.

Solvency II had initially been dubbed ‘the kiss of death’ for the real estate industry. But attitudes have changed as insurers have begun to look at

Insurance companies are expected to account for up to 20% of the European real estate lending market over the next

few years, the European Real Estate Policy and Investment Forum heard. However according to forum panellists,

this fi gure will not be enough to compensate for the wide-scale retreat by banks from the sector

Insurers to make up 20% of property lending by 2015

Ad Buisman, EMEIA real estate leader at Ernst

“ Solvency II is only one of the reasons insurance companies are beginning to lend to real estate.”

Solvency II had initially been dubbed Solvency II had initially been dubbed

industry. But attitudes have changed industry. But attitudes have changed ‘the kiss of death’ for the real estate Solvency II had initially been dubbed ‘the kiss of death’ for the real estate Solvency II had initially been dubbed

as insurers have begun to look at industry. But attitudes have changed as insurers have begun to look at

INVESTMENT BRIEFING 11

property lending. “More and more insurance companies are moving into the real estate lending business and the forecast is that they will make up 20% of that business over the next three years,” Buisman said.

Insurers can lend to real estate in a multitude of formats: by buying existing loans, issuing new loans; providing senior or junior debt and participating in restructurings or in third-party debt funds or even setting up their own funds.

But Buisman cautioned againstwidespread optimism among real estate professionals that insurers will make up the shortfall from banks. “Talking to the insurance companies it is clear this is over-optimistic.

The insurers say there is no way ever that they could replace the banks and they don’t intend to try. Instead they are taking high-margin business or the opportunistic business, ‘but only

bits and pieces of that”.This underscores the reality, Buisman said, that Solvency II is only one of the reasons insurance companies arebeginning to lend to real estate.

“Mostly it is the higher margins thatattract them and also, they are look-ing for a long-term product to match the long-term provisions on their balance sheet,” Buisman said.

Insurers to make up 20% of property lending by 2015

The European Real EstatePolicy & Investment Forumat Realty 2012

This underscores the reality, Buisman said, that Solvency II is only one of the reasons insurance companies arebeginning to lend to real estate.

property lending. “More and more property lending. “More and more

THE REALTY 2012

12 SOME PICS OF REALTY 2012

REALTY 2012 an impression

INTERVIEW 13

THE REALTY 2012

“Are we going to get into real estate loans? Probably yes - slowly, at the right prices. We will certainly look at the quality of the underlying assets and if there is a crisis with theinvestments then we would look to keep the collateral, which is adifferent approach from mostinsurers - it’s more like a real estateinvestor,” Antonio Cano said.

The insurer’s property arm, AG Real Estate, has about EUR 5.0 billion in bricks and mortar, or roughly 10% of the company’s total investmentassets under management.

Cano said AG Insurance liked real estate as an asset class because as a long-term investor it was comfortable with relatively illiquid investments, as its liabilities in terms of life policies

Belgium’s Biggest Insurer Likely to Buy Real Estate Debt,CEO Says

Confi rming the trend of insurers buying real estate lending thatwas identifi ed at the European Real Estate Policy

and Investment Forum, AG Insurance, Belgium’s largest insurer,is likely to join the growing ranks of European institutional investors

planning to invest in property debt, the company’s CEO saidduring a presentation on Wednesday.

14 AG INSURANCE INTO REAL ESTATE

ULI seminar at Realty 2012 Understanding the financial crisis

- Drawing lessons from real estate- Role of banks and insurance”,

with Etienne de Callahay,Max Jadot and Antonio Cano.

loans? Probably yes - slowly, at the loans? Probably yes - slowly, at the “Are we going to get into real estate “Are we going to get into real estate

right prices. We will certainly look at right prices. We will certainly look at

are also relatively illiquid.The comparatively high yieldsobtainable on real estate are also attractive when German 10-year bonds are producing a negative real yield of about 1.4%. He added that he personally expected future Belgian infl ation to rise to four or fi ve percent, making the infl ation hedgingcomponent of real estate appealing.

AG Insurance doesn’t see the capital charge on direct real estateinvestment of 25% under theSolvency II regulatory regime stand-ard model as a real barrier to property investment, because its own capital modelling places this closer to 20%as it has a higher charge for sovereign bonds, which Solvency II defi nesas “risk free” despite the eurozone’s government debt crisis.

Belgium’s Biggest Insurer Likely to Buy Real Estate Debt,CEO Says

INTERVIEW 15

Antonio CanoCEO of AG Insurance

The comparatively high yieldsThe comparatively high yieldsobtainable on real estate are also obtainable on real estate are also attractive when German 10-year attractive when German 10-year bonds are producing a negative real bonds are producing a negative real yield of about 1.4%. He added that he yield of about 1.4%. He added that he

“Are we going to get into real estate loans? Probably yes.”

Antonio Cano , CEO of AG Insurance

THE REALTY 2012

“The regulatory train has left thestation and there is little theEuropean real estate industry can do to stop it now.Capital formation in the market will shrink and many investmentmanagers will not survive, as they won’t be able to raise money. We may even see a massive transfer of wealth to the U.S. and Asia as investors there won’t have the restrictions faced in Europe,” Ian Laming, Chief Operating Offi cer for pan-European real estate investment manager Tristan Capital Partners told the forum.

Ian Laming, COO of Tristan Capital Partners, said most of the safeguards incorporated in new regulation such as thorough reporting and portfolio stress testing should be part of a competent investment manger’s

EU RegulationsCould Favour Non-European Property Investors

Equity and debt capital formation across EU real estateinvestment markets could come under severe pressure

in coming years, as Basel III, Solvency II and a host ofother regulatory initiatives start to bite.

Given global capital fl ows, and possible regulatoryarbitrage by non-EU funds, prime assets could well

be snapped-up by U.S. and Asian investorswhile their European counterparts struggle to

access capital, the European Real Estate Regulationand Investment forum also heard.

16 EU REAL ESTATE UNDER PRESSURE

“The regulatory train has left the“The regulatory train has left thestation and there is little thestation and there is little the

shrink and many investmentshrink and many investment

European real estate industry can do European real estate industry can do

Capital formation in the market will Capital formation in the market will

managers will not survive, as they managers will not survive, as they

to stop it now.to stop it now.to stop it now.

operational set-up anyway, but many fi rms don’t yet seem to have thought through the full implications of rapidly approaching changes such as the AIFMD (Alternative Investment Fund Managers Directive).

“Tristan isn’t anti-regulation because we’ve heavily invested in thesystems we need, or outsourced our requirements, to ensure we comply with all the new rules coming over the horizon. We also expect manycompetitors who are not so well pre-pared to depart the market as their costs rise and they struggle to raise capital, leaving the best mangers with more choice of assets in a Darwinianevolution. But we are concerned that this might mean less liquidity in the market fi ve years down the road when we exit investments.”

Ad Buisman, partner and EMEIA Real Estate Leader for Ernst & Young, said there was a lot of talk among realestate investment managers that they are ready for the regulatory wave approaching, but in reality he was surprised at how ill-prepared many still are.

Jeff Rupp, Director of PublicAffairs for INREV, said to be fair it was diffi cult for managers to prepare for regulation when key aspects of the new rules -- such as the handling of joint ventures in the AIFMD -- are still not clear, even though the directive is due to come into force in July, 2013.

He added that regulatory changes such as Solvency II are having asignifi cant impact on the nature of real estate investment fl ows and the

choice of vehicle investors select,for example with insurers andpension funds looking increasing towards debt, rather than traditional non-listed real estate funds. The cost burden of compliance with new regu-lation is also clearly falling dispro-portionately harder on smaller fund managers and becoming an effective barrier to entry into the industry.

Francoise Roels, SecretaryGeneral of Belgium’s largest listed real estate company Cofi nimmo,said regulators had a long way togo to harmonise the impact of allthe different rules applying to theindustry both at the pan-European and national levels, before there could truly be considered to bea single market in propertyinvestment in the EU.

EU RegulationsCould Favour Non-European Property Investors

INTERVIEW 17

Ian Laming, CEO of Tristan Capital Partners

“ Many investment managers will not survive, as they won’t be able to raise money.”

Jeff Rupp,Ian Laming,Françoise Roels, Ad Buisman

lation is also clearly falling dispro-lation is also clearly falling dispro-burden of compliance with new regu-burden of compliance with new regu-

portionately harder on smaller fund portionately harder on smaller fund managers and becoming an effective managers and becoming an effective managers and becoming an effective barrier to entry into the industry. barrier to entry into the industry. managers and becoming an effective

non-listed real estate funds. The cost

BIG Sustainable Development (but fun too)BIG Sustainable Development

THE REALTY 2012

“Sustainability is generally seen as being part of a strong moral and rather Protestant code,” Kai-Uwe Bergmann said. “It seems that only by sacrifi cing much of our existing quality of life can we be sustainable and live in a way that is good for the environment. At BIG we don’t believe this and have been looking at how

sustainable buildings and cities can actually increase the quality of life, so that a sustainable life becomes more fun that normal life” BIG’s philosophy is that architects need to rediscover ‘vernacular architecture’ -- the form of architecture that evolved, withoutarchitects, down through the centu-ries as people found ways to build houses and cities to optimise their living conditions in a given climate.

When architects came into the picture they began to add machines to deliver the different qualities that were missing from buildings: electric lights, mechanical ventilation, central heating and air conditioning.These were all perceived as freedom

Architects and urban planners often see sustainabledevelopment as a necessary though worthy evil.

It has to hurt to be good and a sustainable life meansdoing less than in normal everyday living. Kai-Uwe Bergmann,

partner at Danish architectural and design companyBjarke Ingels Group (BIG), thinks otherwise and BIG has

been putting these thoughts into practise,he told Wednesday’s session ‘CityBoom:

Booming cities - Blooming Cities’ seminar organisedby the Belgian Building Confederation (BVS-UPSI).

18 EU REAL ESTATE UNDER PRESSURE

“Sustainability is generally seen as “Sustainability is generally seen as being part of a strong moral and being part of a strong moral and rather Protestant code,” Kai-Uwe rather Protestant code,” Kai-Uwe

BIG Sustainable Development (but fun too) Sustainable Development (but fun too)

from the elements, but they resulted in an explosion in energy consump-tion. “Architecture became an empty box, void of qualities and plugged to machines,”

Bergmann continued. “Our aim is to unplug the machines and get back to to a situation where the qualities

come from architecture itself. Using modern design to eliminate superfl uous machinery and byadapting and integrating buildings to their natural environment, BIG isable to increase the sustainabilityof the buildings it designs.But it doesn’t stop there.

The designers are very conscious of the need to make buildings fun, to make the users want to use them, so reinforcing the environmental and social benefi ts of their designs.

Two of BIG’s recent projects illustrate the combination of sustainability and fun: The ‘8 House’ apartment complex near Copenhagen includes ramps that

allow residents to cycle to the top fl oors of the 10-story block, a feature that not only encourages them to bike more often, but also triggers far more spontaneous social interactions than in other apartment complexes. Rainwater run-off from the building is collected in ponds at its base, giving residents much sought-after water

views from their homes.Currently under development is the ‘Amagerforbraending’ incinerator in central Copenhagen. A plant that will turn waste into energy, reducingfossil fuel consumption andeliminating the need for landfi lls, scores highly on any sustainability index, but could have been a hard sell, especially as it will be the tallest structure in the middle of a large city.

However, by incorporating 1,500m of ski-slopes on top of the plant and generating laser-illuminated water vapour smoke rings that are emitted for a given volume of wasteincinerated, the fun elementhas not been forgotten and

Copenhagen’s population has a new local landmark and leisure facility that will be completed by 2016.

Looking further than individualbuildings BIG sees its ideas as being equally applicable to the broader urban environment. The company is working on a plan for what it’s calling

a “Loop City” around Copenhagenand encompassing Malmo in Sweden just to the north.This would create a continuous urban tissue that crosses an artifi cially constraining international border doing away with the need for those who live on the outskirts to commute to historical city centres, freeing-up resources and improving the quality of life for the inhabitants.

The idea that sustainability can and should be fun is clearly catching on. Asked for his ideas on how others canjoin the movement, Kai-Uwe Berg-mann had some simple advice for architects and designers - “stop whining and start designing.”

INTERVIEW 19

Booming Cities Debate at Realty 2012 with (fltr):Maxime Prévot, François-Joseph Van Audenhove, Ralf Baron andtranslator, Kai-Uwe Bergmann, Brigitte Grouwels and Bart Somers.

Kai-Uwe Bergmann,Partner and Director Business Development at BIG

“ Stop whining and start designing”

tion. “Architecture became an empty tion. “Architecture became an empty box, void of qualities and plugged to box, void of qualities and plugged to box, void of qualities and plugged to box, void of qualities and plugged to machines,” machines,”

The idea that sustainability can and should be fun is clearly catching on.

Cities Need ImaginativeUrban Mobility Solutions or Face Gridlock

THE REALTY 2012

“The future will be urban, but urban mobility systems are on their way to a breakdown as the majority of cities are badly equipped to cope with thechallenges ahead,” Van Audenhovesaid at the seminar.

As city populations rise, so too does congestion, but at a faster rate.More people usually means more cars and additional, but slower, trips.The economic, ecological and social costs of this are signifi cant and the attractiveness of cities for economic development is reduced, withconsequent knock-on effects onreal estate prices.

Arthur D. Little looked at how well equipped a sample range of major cities are to cope with the challenges ahead. The criteria they examined included the shares of journeys made by car, public transport, walking and cycling, the number of shared cars

Half of the world’s population now lives in urban areas, a share that is projected to increase signifi cantly in the coming decades.

Urban mobility, travelling in and around our cities,which is already under pressure at current population levels,

risks collapsing under the weight of the newcomers.Management consulting fi rm Arthur D. Little recently studied the

future of urban mobility and in particular the challenges facing the Brussels Region. Arthur D. Little partner

Francois-Joseph Van Audenhove presented thefi ndings of the study to Wednesday’s session of the ‘CityBoom:

Booming cities - Blooming Cities’ seminar.

20 EU REAL ESTATE UNDER PRESSURE

“The future will be urban, but urban “The future will be urban, but urban mobility systems are on their way to mobility systems are on their way to a breakdown as the majority of cities a breakdown as the majority of cities

Cities Need ImaginativeUrban Mobility Solutions or Face Gridlockor Face Gridlock

and bicycles, the penetration rate of smart transport fare cards (an indication of innovative thinking) as

well as the current average speed and mean travel time within urban areas. Hong Kong and Amsterdam were the best-equipped cities, Athens and Saint Petersburg the worst. Brussels ranked 30th (out of 66) in the world, but on a European scale came in at a disappointing 16th (out of 23).

“The root cause of poor performance is a lack of innovation,” explainedVan Audenhove. “There are suffi cient technological and transport solutions available to address the pressingmobility challenges. However, for these solutions to work, key players need to work together in environ-ments that are rarely rewarding for investors. This requires vision and leadership, as well as a reshaping of the political agenda to meet the changing demands of users.”Among the solutions that Arthur D. Little identifi ed were technologies that have been around for some time

-- electronic tolling, advanced park-ing systems and even the Segway personal transportation system -- and

those that are still in theirdevelopment phase, such asautomated cars, solar roadways and trains that straddle streets.Transport solutions that could be adopted to ensure a balanced mixof transport use include car and bike sharing schemes and smart cards that work across different typesof transit systems.

Brussels’ disappointing score inthe mobility study refl ects thedominance of the car as a means of travel in the region and the city’s lower than average investment in public transport. Average travel speed in Brussels in just 19 kilometres per hour, compared with 34 km/h inAmsterdam. A typical employee in Brussels travels on average for 36 minutes to get to his or her work, whereas someone in Gothenburg, Sweden needs only 22 minutes. There are, however, signs that the

car’s grip is loosening.“The number of trips on public transport in Brussels almost doubled between 2000 and 2011,” Van Audenhove said. “Users areprepared to leave their cars behindif the conditions are right.Travellers want seamless door-to-door travel solutions, which means not only just good public transpor-tation, but real-time information, access to car and bicycle sharing schemes and smart cards that can be used across all transport modes.”

The Brussels region has laid the foundations for improved mobility. Its ‘Mobib’ mobility card is one of thebetter examples of a multimodal card in Europe, although the system needs to be extended country-wide as soon as possible and, unlike similar cards in Denmark and the Netherlands,it does not offer automated fare calculation. Sharing schemes such as ‘Villo!’ (bicycles) and ‘Cambio’ (cars) have been very successful and continue to expand. “Brussels needs to decide on itspriorities for the future”, Van Auden-hove concluded. “Only by defi ning and executing a vision of its urban mobility system can the fulleconomic potential of the regionbe optimised.”

INTERVIEW 21

Francois-Joseph Van Audenhove

“ Brussels needs to decide on its priorities for the future”

Francois-JosephVan Audenhove

Hong Kong and Amsterdam were the Hong Kong and Amsterdam were the Hong Kong and Amsterdam were the Hong Kong and Amsterdam were the best-equipped cities, Athens and best-equipped cities, Athens and Hong Kong and Amsterdam were the best-equipped cities, Athens and best-equipped cities, Athens and Saint Petersburg the worst. Brussels Saint Petersburg the worst. Brussels Saint Petersburg the worst. Brussels Saint Petersburg the worst. Brussels

lower than average investment in lower than average investment in

Brussels’ disappointing score inBrussels’ disappointing score in

dominance of the car as a means of travel in the region and the city’s of travel in the region and the city’s

the mobility study refl ects thethe mobility study refl ects the

public transport. Average travel speed public transport. Average travel speed

participants

Performance report from visitors

General impression:

Realty met or exceeded

expectations

will visit the next edition

TARGET 2013: 5500 participants

+9% Value ChainThe

End user

Broker

Investor

BrokerConsultant

Constr uctioncom pany

5305

89%

98%

2009

2010

2011

2012

3056

3415

4815

5305

Developer

Architect & planner

Investor

Construction company

Consultancy fi rm

Broker

Local & public authority

Law fi rm & notary

Project Management company

Media & Press

Engineering company

Bank (fi nancer)

Corporate End User

Trade federation & academics

Visitor profi le Type of companiesvisitors are looking

for at Realty

2012 2011

TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participantsTARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participantsTARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participantsTARGET 2013: 5500 participantsTARGET 2013: TARGET 2013: 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participants 5500 participantsTARGET 2013: 5500 participantsTARGET 2013: 5500 participants

7,4 10

THE REALTY 2012

22 REALTY 2012 FACT & FIGURES

Facts & fi guresFacts Facts Facts Facts &Facts Facts fi gures fi gures fi gures fi gures fi gures fi guresDeve loper

exhibitors

General impression:

Visitor quality:

Visitor quantity:

TARGET 2013: 130 exhibitors

+8%

Value ChainRealty The

Financer

Architect

EngineeringPlanningConstr uction

com pany

PublicAuthority

1222009

2010

2011

2012

84

102

113

122

Developer

Investor / Bevak / Sicafi / REIT

Public authority

Construction company

Architect

Engineering / study agency

Broker

Project manager

Consultant

Services

2012: 87 investors (50% growth compared tot 2011)New topics for 2012: • Retail • Nursing homes and care facilities • Urban development • Reconversion

Type of companiesvisitors are looking

for at Realty

International Investors

Top 5Geographic

originof foreign

visitors

TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013:

Performance report from exhibitors

87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011))) 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011 87 investors (50% growth compared tot 2011)

8,4 10

8,08 107,84 10

France

32%

8%12%

16%

28%

UK

Netherlands

Germany

Luxembourg

TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitorsTARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: 130 exhibitors 130 exhibitorsTARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: TARGET 2013: 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitorsTARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitors 130 exhibitorsTARGET 2013: 130 exhibitorsTARGET 2013: TARGET 2013: 130 exhibitorsTARGET 2013: 130 exhibitors 130 exhibitors

OVERVIEW 23

Deve loper

FLASH FORWARD MEET US AT REALTY 2013SAVE THE DATE28, 29 & 30 MAY 2013

info:

contact:

www.realty-brussels.com

Edouard Moreels

Phone: +32 9 241 94 20 - Mobile: +32 475 69 36 80 - info@realty-brussels.com

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>2013