What are the key messages London should be broadcasting at this year’s MIPIM? Our panel of experts, representing a broad spectrum of property-related specialisms, give their take.
The corporate occupier Philip Betteridge, head of corporate services, Schroders
“London is no longer one-size-fits-all for occupiers. As an
occupier looking at a new HQ in London, we needed to understand how demographics are changing and affecting development opportunities. The London MIPIM stand should be showing how new travel patterns, transport nodes and dynamics are impacting development – from an occupier and an investor point of view.”
The institutional investor Bill Hughes, head of real assets, Legal & General Investment Management
“A leading gateway city, London continues to enrich its position on the global stage, with long-term potential. It is a magnet for first-class corporate occupiers, its appeal as an enduringly desirable location stems from its economic diversity, its reputation as a centre of excellence in education and its multicultural draw. Alive with the buzz of large-scale infrastructure projects, this is an exciting time for London to drive the next stage of growth.”
The international property consultancy John Slade, chief executive, BNP Paribas Real Estate
“My message to visitors to MIPIM’s London stand is that London is the world’s premier financial city and will continue to be so. Yes, there are some external political factors we must be wary of in 2015 and 2016, namely the general election and the UK’s relationship with the EU, but London’s status should not be challenged. There is no other city that can offer the same levels of attractiveness in terms of tenants, long leases and asset types in a leading global financial epicentre.
“As an investment hub, London will remain the favoured location for international investors and the gateway to Europe. Don’t be put off by speculation about rising prices and ‘peaks’, London’s office market is set to have an even stronger year in 2015.”
The local authority Jo Negrini, executive director of development & environment, London Borough of Croydon
“London excels in providing a wide variety of floorspace types for all kinds of occupiers. Not every occupier needs, or indeed wants, to have all (or any) of their functions in central London, so the availability of non-core locations – which are easily accessible to the capital but offer lower occupancy costs – should be particularly attractive. Croydon is a great example – a major new shopping centre alongside 8,000 new homes should prove to be a great draw.”
The developers Ker Gilchrist, head of London investment property, Quintain
“London is on the brink of experiencing the undoubted benefits of infrastructure improvements that have not been seen for generations, linking up the new London locations to live and work in with the traditional core villages and continuing to fuel occupier demand.
“London is seen as the place to be for newly qualified graduates, start-up businesses, and the mature corporates from around the globe. This occupier demand will continue to soak up the restricted supply pipeline, feeding through to asset performance for the investor.”
John Burns, chief executive, Derwent London
“As the recent influx of global capital into the market has shown, London remains one of the most attractive locations for people to live, work and invest. Internationally it is seen as a ‘safe haven’.
“In the office market we are seeing strong occupier demand. This growth will continue to affect the market positively and is a testament to London’s major appeal as a place where young, talented minds want to be.”
The architect Ken Shuttleworth, founder, Make
“Housing is an urgent and critical challenge, with a shortfall of up to 1m homes in London and the Home Counties estimated over the next 25 years. Should housebuilding continue at its current rate, eventually the dream of home ownership will be just that – a dream – for the vast majority. Instead of creating urban sprawl over the green belt and lifeless dormitory towns through the ‘garden cities’ proposed by the government, I strongly believe we need to densify London, build on brownfield sites and create a vital, vibrant city with adequate infrastructure to support the growing population.”
The lawyer Jane Hollinshead, partner & sector head of real estate, Addleshaw Goddard
“For investors looking to mitigate risk and invest in an array of long-term income streams, London’s status as a global city represents many opportunities. Aside from the overheated prime residential market, alternative assets such as student housing, PRS, infrastructure and healthcare are all growing markets with substantial value to be achieved. Demographic changes and a growing population mean that such asset classes have scope for long-term growth. For those willing to take a long-term view, who seek consistent and stable income, and the potential for positive total returns, there is still no place like London.”
The lobby organisation Jo Valentine, chief executive, London First
“The fact that so many stands at MIPIM will be focusing on bringing forward developments in opportunity areas – those places in London that the mayor has earmarked for large-scale development – highlights how important these are to the capital. London’s 38 opportunity areas and seven intensification areas have the potential to deliver 300,000 homes and 568,000 jobs.
“We need people to leave MIPIM convinced that it’s time to get on with developing these areas. If that happens, it will be an important step towards delivering the housing and jobs London needs, both now and in the future.”
