Conference Report8-9 February ULI - a trusted idea place

Principal

ULI Europe 2011 Programme Supporters

For support opportunities, pleasecontact Brian Kilkellyat bkilkelly@uli.org

Leadership

Senior

What was it? More than 600 industry professionals from acrossEurope, representing an estimated $800 billion of combined financial management expertise,gathered in Paris in early February for the 15thULI Europe Annual Conference to debate and explore how the real estate industry faces up tothe economic, political, and business trendsshaping the market—–and how to seize opportunities.

Pierre Vaquier, CEO of AXA REIM, opened the conferenceby adapting a Benjamin Franklin quote, saying, “Certainty?In this world nothing is certain but debt and taxes.”

“Real estate, as a physical asset with the ability to provideincome and act as a hedge against inflation, becomes anattractive proposition when compared to many other assetclasses,” said Vaquier, the conference chair. “The combination of these factors presents the industrywith a time in the market cycle where there are numerousopportunities, both in our domestic markets and internationally, for those with the ability and experience to take advantage of them.”

Conference Report | 1 of 13Please visit www.uli.org/europe for post-conference materials

Dan Fasulo, MD Real Capital Analytics:“Despite reaching $160Bn in commercial property sales, the year on year increase

in Europe was paltry versus what was seen in the US and Asia. Investors will continue

to work around sovereign debt issues in 2011, and expect some countries and

markets poised to outperform as capital moves to higher yielding assets in

secondary locations.”

Conference Report | 2 of 132011 ULI Real Estate Summit at the Spring Council Forum | 18-20 May 2011 | Phoenix, Arizona

The conference gave delegates the opportunity to hear from ULI chief executive Patrick L. Phillips,ULI Europe chairman Alexander Otto, and ULI Europe CEO-elect Joe Montgomery. Montgomery hadbeen director-general of the U.K. government’s Regions and Communities Group.

Also at the conference, participants turned their attention to solving some of the most pressing macro challenges facing real estate—reinvigorating investment markets, developing new models to finance development, and addressing the drive toward energy efficiency, as well as national andregional issues.

Alex Otto

Joe Montgomery

Partick Phillips

Karl-Joseph Hermanss-Engel, Board Member, Union Investment Real Estate: “We spent Billions for acquisitions in 2010 but wonder what will replace Germanlenders who are withdrawing”

Christian Delaire, CEO of AEW Europe: “Secondary and tertiary markets, and countries perceived as too risky (e.g., Spainand Hungary) should remain very illiquid, leaving space to opportunistic deals. It will also be important to stay close to the assets, and rely on the right teamswith a real local knowledge (both real estate and financing/structuring) and proper retention policy.”

David N. Bradford, Global Risk and Investment officer,Pramerica Real Estate Investors: “We are working hard on answering tougher questionsfrom investors who got burned across the board. I’mnow cautiously optimistic about job growth. Values inplaces like London and Washington have recovered withunprecedented speed. Capital came in fast to close theopportunity.”

David also reminded us of this quote: “Character is not built in a crisis, it’s only displayed”

Olivier Piani, Chairman of the Executive Committee ofAllianz Real Estate reminded us of Jack Welch saying: “Change before you have to”

Roger Orf, head of Apollo Global Real Estate Management Europe: “2011 will go down as the year when investors wholooked forward, not backwards, planted the seeds of future rewards for themselves and their investors.”

John Forbes, Real Estate Funds Partner, PwC: “Adapt or die…The key thing to remember is to look forward and not back. In future years we may look back on 2011 as a transformational year for the property industry due to investor constipation and industry consolidation.”

Conference Report | 3 of 13

Morning Sessions:The morning keynote speaker, Ian Shepherdson, chief economist at High Frequency Economics,highlighted the continued short-term uncertainty caused by the backdrop of a potential Europeandebt crisis. In his keynote, titled “The Great Experiment,” Shepherdson set out the different fiscal approaches that the United States and Europe have taken to solve the economic crisis, highlightinghow the U.S. approach is paying off, for now. He likened Europe’s bailouts to “a Band-Aid on a bulletwound,” warning that while they provide short-term liquidity, the risk is that they do not address theissue of a lack of competitiveness within the markets.

Pointing delegates toward potential solutions, Shepherdson said he believes that a combination offactors will be required to deliver real rescue. These measures include the restructuring of debt forthe most “wrecked” economies—notably Portugal, Ireland, Greece, and Spain; an expanded European Financial Stability Facility (EFSF) to buy government bonds; and fiscal policy reform.

John Forbes of PwC echoed these sentiments during the launch of the annual ULI/PwC EmergingTrends in Real Estate® Europe report. The European property landscape is set to face a number ofchallenges as a result of tougher regulations, austerity measures, and increasing sovereign debt, he said.

However, he suggested that the market will get a boost from the arrival of a number of investors fromthe Asia Pacific region and from insurance companies and private equity funds. He added that withcapital so risk averse, cities such as London, Munich, and Paris are expected to absorb investmentand stand as the primary places where tenant demand will remain robust. Other investor favouritesare likely to be Istanbul, Stockholm, Berlin, and Hamburg.

Forbes said the report predicts that buyers will avoid Dublin, Athens, Lisbon, and Budapest, andeven within the most favoured markets, investment will be drawn mainly to the prime buildings. As a result, values for secondary properties will remain at distressed levels and even start to decline further.

Ian Shepherdson

John Forbes

Conference Report | 4 of 13ULI Europe Trends Conference | 22 June 2011 | Amsterdam, The Netherlands

Gerhard Dunstheimer, ECE Deputy CEO:“Pressure drives change. The opportunity

is now. Vision will be key.”

Gerard Groener, Corio CEO: “The market is changing quickly.

Technology will have a major impact onretail. We are actively participating in

social networking sites and blogs as it’simportant to focus on the consumers,maintain their interest, increase traffic

and loyalty.”

Afternoon Sessions:The problems facing city investment marketswere starkly laid out by afternoon keynotespeaker Ricky Burdett, professor of urban studies and director of London School of Economics Cities, and director of Urban Age.Burdett drew on primary research to illustratehow the recent recession has affected the trajectory of economic and social prosperity ofvarious cities around the world. Through casestudies on Turin, Barcelona, and Seoul, Burdettrevealed the key features of economic transformation and the key drivers of growth behind the cities’ resilience. (More information is available in the ResilientCities: Surviving in a New World report fromthe ULI Urban Investment Network.)

Ricky Burdett

Conference Report | 5 of 13ULI Europe Leadership Retreat 2011 | 22-24 September 2011 | Invitation only, ULI member event

Patrick L. Phillips, CEO of the Urban Land Institute: “There’s always a lot of talk after a crisisabout how things are truly different, but it rarely turns out that way. We usuallyjust muddle along with adjustments at the margins. This time really is different.Capital flows, investor expectations, therole of development, our faith in government institutions—there’s been a fundamental readjustment. Our industry will sort it out and emerge competitive and innovative, even if somewhat smaller than before.”

Urban Investment Network

A ULI Urban Investment Network Report

Greg Clark, Senior Fellow, ULI EMEA/India

Gareth Evans, Researcher

Sarah Nemecek, Manager, Urban Investment Network, ULI Europe

November 2010

Resilient Cities: Surviving in a New World

Concurrent Sessions:George Nikitiades, Greece’s minister of cultureand tourism, explained how the government is implementing an economic and financial program to promote investment opportunities inthe tourism sector via public/private partnerships and privatization. Christian Sautter,deputy mayor of Paris, presented a compellingvision of the city’s economic and climate plansfor 2020. José Baeta Tomás, director of SonaeSierra Brasil, reported on the opportunities forinvestment in Brazil, which dovetailed intoShepherdson’s assertion regarding the growthpotential of Latin America as well as Asia.

Alexandra Notay, ULI Europe vice president ofstrategic programs, led a roundtable on publicand private retrofitting models that was open topartners of ULI’s LessEn initiative, now thelargest public source of independent peer-reviewed information on energy efficiencypolicy, case studies, and solutions worldwide.Notay highlighted the strategy of engaging occupiers on the subject of how to use theirbuildings more efficiently and encouraging designers and managers to retrofit their buildings in energy-efficient ways, plus thework of guiding owners and investors toward identifying assets in their portfolio with thegreatest efficiency potential.

Likewise, Terri Wills, London city director of theClinton Climate Initiative, discussed that organization’s work with the mayor of London.The U.K. capital has seen 42 public buildings reduce their energy use by an average of 28 percent through a building retrofit energy efficiency program. Andrew Baum, professor ofland management, Henley Business School,Reading University, chaired a session exploringthe data behind energy efficiency retrofits.

Conference Report | 6 of 13ULI Urban Investment Network Summit | 23-24 November 2011 | Amsterdam, The Netherlands

George Nikitiades

Christian Sautter

Terri Wills

Networking:Senior ULI leaders and delegates came together inside and outside the conference, through variouscouncil and steering group meetings, the ULI Member Summit, and a leadership dinner and reception featuring keynote addresses from David Higgins, former chief executive of the Olympic Delivery Authority and newly appointed chief executive of Network Rail, and John Bruton, fomer European Union ambassador to the United States who presented his vision of Europe and the United States over the next ten years.

Conference Report | 7 of 132011 ULI Fall Meeting and Urban Land Expo | 25-28 October 2011 | Los Angeles, California

David Higgins

Roger Cooke, Chairman Cushman & Wakefield EMEA Capital Markets:

“Our industry should start to operate theway the world is already going. We have

got to be alert to the upcoming generation of clients and colleagues.Technology is helping cut costs and

improve the branding of developers andbuildings, which is becoming more and

more important.”

Conference Report | 8 of 13

Reports & Publications:A ULI Europe report asking “Have Property Funds Performed?” was unveiled at the conference. Providing insight from research spanning 2003 to 2009, when returns had been both very high andvery low, it showed how different investment styles performed during different periods of the marketcycle. Supported by AREA Property Partners, the report concluded that real estate funds in generalhave not delivered the required risk/return characteristics that investors would have expected or areled to believe would result.

Have property funds performed?

Authors:Professor Andrew Baum,Academic Fellow ULI Europe

Jane Fear,Manager, Feri Property Funds Research

Nick Colley,Senior Analyst, Feri Property Funds Research

Editors:Alexandra Notay,

Vice President of Strategic Programmes, ULI

Louise Evans,Research Assistant, ULI

A ULI Europe Policy & Practice Committee report

February 2011

Conference Report | 9 of 13

Laurent Lehmann, Deputy GeneralManager CBRE France: “Social media is a tremendous opportunity to target new prospects, toexchange ideas and insights with ourclients and to get feedback. Creating ablog was free and our content quicklygot amplified. It is a profound change in how we speak on the Internet. Thereis a learning curve I’d recommend: listen, follow and then participate. Online networks require more content,more spontaneity and more transparency.”

Gerard Groener, CEO Corio NV: “We need new people to handle newtimes. Our industry has too many attorneys, bankers and engineers whodo not have an open mind and are toofar away from end users. We need to attract new people with the right attituderather than the wrong experience”

Workshops:The ULI Urban Investment Network ran a workshop in its series on public and private investment incity centers, including presentations from London, Edinburgh, Paris, and Barcelona. The network also unveiled a new website, graphic identity, and yearbook that illustrate its pivotal role as an independent network, which enables public/private partners to bridge investment gaps and overcome city development challenges.

Conference Report | 10 of 13

David Marquina, Director General, Tasinsa: “My perception for 2011 is that the Real Estate industry should review its entire business strategy in order to face profound social and technological changes.”

Conference Report | 11 of 13

Monday 7 February 2011

18:00-20:15 Steering Committee Meeting (Hotel, Westin)

20:30-22:30 Steering Committee Dinner (Le Procope Restaurant, 13 rue de l’Ancienne Comédie, 75006, Paris)

Tuesday 8 February 2011

08:00-09:30 Council Chairs’ Breakfast (Castiglione)

08:30-14:00 ULI France Conference (Napoleon)

L’attractivité de la France pour les investisseurs immobiliers Event co-organised by: ULI France and Business IMMO

(session will be conducted in french)

09:00-16:00 2011 Winter Council Day (Cercle National des Armees, 8 place saint Augustin, 75008 Paris)

ULI European Councils focus on specialised fields in land useand development. They are designed to provide a forum foreducation, exchanging information and sharing best practicesand are open to council members only.

Council Meetings: 11:00-16:00 Office & Mixed Use Council Cuirassiers, Cercle National des Armees 09:00-16:00 Resort & Hotel Council Maryse Bastié, Cercle National des Armees 10:30-16:00 Retail & Entertainment Council Honneur, Cercle National des Armees 08:45-16:00 Sustainable Development Council Jeanned’Arc, Cercle National des Armees 09:00-16:30 Urban Regeneration Council Turcos, Cercle National des Armees

09:30-19:00 Young Leaders Forum & Drinks Reception (Napoleon)

Supported by:

This unique programme will bring together real estate professionals and executives from across Europe for an exclusive site tour of Bouygues Immobilier HQ, followed by info bursts, an interactive case study on Athens and akeynote address by Christian Delaire, CEO of AEW Europe.

10:00-16:30 ULI Urban Investment Network Workshop Investing in Europe City Centres (Aiglon)

17:00-18:45 ULI Member Summit (Concorde)

Moderator: Jonathan Short, Executive Chairman & Founding Partner, Internos Real Investors

Pre-conference Events

17:00 Keynote Speaker: H.E. Mr George Nikitiades,Ministry of Culture and Tourism, Greece

17:10 City Investment Challenge Join a team of advisors for one of 10 European cities and

help construct a strategy to attract a major business choosing a location for their next venture. Find out what an expert panel of judges think of your proposal and compare it to the findings of the Emerging Trends Report.

Judges: Shelley Frost, Regional Director, Corporate Solutions, Jones Lang LaSalle

Michael Spies, Senior Managing Director, Head of Europe, India and Chair of Investment Committee, Tishman Speyer

Ronen Journo, Director, Workplace Resources, European & Emerging Markets, Cisco

18:25 Emerging Trends Report Launch John Forbes, Partner, Real Estate Funds,

PriceWaterhouseCoopers 18:40 InfoBurst Solvency II Laurent Lavergne, Head of Fund Management,

AXA Group Clients, AXA REIM 18:50 Member Update

18:50-19:30 European Council Chairs’ De-Brief (Castiglione)

19:30 Coaches depart Westin Hotel entrance for Leadership Dinner

19:45-22:30 ULI Europe Leadership Dinner & Reception (invitation only) (Pavillon D’Armenoville, Allée de Longchamp,

Bois de Boulogne, 75116 Paris)

Dinner Speaker: David Higgins, Chief Executive, Network Rail

Moderator: Alexander Otto, CEO, ECE Projektmanagement Guest of Honour: Ambassador John Bruton,

Chairman, IFSC Ireland; Former EU Ambassador to the USA;Former Iris Prime Minister

Reception is supported by:

Conference Report | 12 of 13

Main Conference DayWednesday 9 February 2011

07:45-08:45 Young Leaders European Steering Committee Meeting (Castiglione)

08:00-08:45 Breakfast and Registration (Lobby & Wintergarden)

08:45 Conference Welcome and Introduction (Concorde)

Conference Chair: Pierre Vaquier, CEO, AXA REIMConference Moderator: Greg Clark, Senior Fellow, ULI EMEA

09:15 Morning Keynote Speaker: (Concorde)

Ian Shepherdson, Chief Economist, High Frequency Economics

“Making Sense of the Global Economy in 2011”

European Real Estate Outlook and Q&A: (Concorde)

Panel: Frank Pörschke, Chairman, Eurohypo AG Struan Robertson, Global Co-Head Real Estate

Investment Banking, Morgan Stanley 10:15 InfoBurst: Emerging Trends in Europe 2011 (Concorde)

John Forbes, Partner, Real Estate Funds, PriceWaterhouseCoopers

10:30-11:00 Coffee Break | Supported by: (Wintergarden & Napoleon)

11:00 CONCURRENT SESSIONS I

1. Retrofitting To Save Money-The Hard Numbers(Aiglon)

Moderator: Andrew Baum, Professor of Land Manage-ment, University of Reading; Honorary, Professor of Real Es-tate Investment, University of Cambridge; ULI Academic Fellow

Panel: Frank Billand, Member of the board of ManagementBoard, Union Investment Real Estate

Franz Jenowein, Sustainability Consulting Director, Jones Lang LaSalle

Peter Sharratt, Global Director - Energy & SustainabilityServices, WSP Environment & Energy

2. City Development: Where Will The Money Come From? (Concorde)

Moderator: Dame Judith Mayhew Jonas, Chairman, The New West End Company

Panel: Ad Buisman, Partner, Ernst & Young Julie Grail, Chief Executive, British BIDS Brian Field, Urban Planning and Development Adviser,

European Investment Bank

3. The YLX-Factor: Big Ideas From Industry’s Next Generation Part II (Tuileries 2 & 3)

Panel: Jos Short, Executive Chairman & Founding Partner,

Internos Real Investors Santiago Mercade, Chief Executive Officer, Layetana Nick Ridley, Managing Director, NCReal Estate Consulting

12:00 CONCURRENT SESSIONS II

1. Paris Region in 2025 (Aiglon)

Moderator: Nicolas Buchoud, Founding Principal, Renaissance Urbaine Consultants

Panel: Antoine Fayet, Direction Général, ICADE Greg Clark, Senior Fellow, ULI EMEA Christian Sautter, Deputy Mayor of Paris, former Minister,

economy and finance Etienne Tricaud, CEO, Arep

2. Retrofitting To Upgrade Quality: We’re Not Going To Tear It All Down To Start Again (Tuileries 2 & 3)

Moderator: Michael Spies, Senior Managing Director Head of Europe, India, and Chair of Investment Committee,Tishman Speyer

Panel: Holger Hagge, Global Head of Workplace and Building Development, Deutsche Bank

Paul Williams,Director, Asset Management, Derwent Lon-don

Christophe Clamageran, CEO, Gecina

3. Listed Vs. Unlisted Debate (Concorde)

Moderator: Alec Emmott, Principal, Europroperty Consulting Panel: Ian Coull, Chief Executive, SEGRO Mark Inch, Chairman, La Société de la Tour Eiffel Ric Lewis, Chief Executive, Tristan Capital Partners Edmund Craston, Managing Director, Rockspring Property

Investment Managers Judge: Patrick Kanters, Managing Director Global Real Estate,

APG Asset Management

13:00-14:30 Networking Lunch | Supported by: (Imperial Salon)

13:00 CEO Lunch: (invitation only) (Tuilieries I)

Moderator: Olivier Piani, CEO, Allianz, Real Estate

Amsterdam, The Netherlands22 June 2011

www.uli-europe.org

Register today!

TRENDSAmsterdam

ULI Europe

Conference Report | 13

14:30-15:15 Plenary Session: “The Next Urban Economy: Drivers Of Economic Transformation” (Concorde)

Prof. Ricky Burdett, Professor of Urban Studies and Director, LSE Cities and Urban Age

“The Next Urban Economy” investigates how the recent recession has affected the trajectory of economic and socialprosperity of EU and US cities and their regions.

15:15 Afternoon Keynote: “Europe And The USA: The Next 10 Years” (Concorde)

Ambassador John Bruton, Chairman, IFSC Ireland; Former EU Ambassador to the USA; Former Iris Prime Minister

16:00-16:30 Coffee Break | Supported by: (Wintergarden & Napoleon)

16:30 CONCURRENT SESSIONS III

1. Around The Worlds In 60 Minutes: Places People Are Investing (Concorde)

Moderator: Rosemary Feenan, International DirectorGlobal Research, Jones Lang LaSalle

Panel: David Bradford, Global Chief Risk and Investment Officer,Prudential Real Estate Investors

José Baeta Tomás, CEO, Sonae Sierra Brasil David Morley, Head of Real Estate, Actis

2. The Buzz Club: Non Traditional Ways In Which Land Is Being Re-Used (Aiglon)

Moderator: Gerard Groener, CEO, Corio N.V. Panel: Martha Schwartz, Principal, Lead Designer, Martha

Schwartz Partners Gert Urhahn, Associate, Urhahn Urban Design Kai van Hasselt, Managing Director, Urban strategy

consultant at Shinsekai Analysis

3. LessEn Partner Roundtable (invitation only) (Tuileries 2 & 3)

Moderator: Alexandra Notay, Vice President- Strategic Programmes, ULI Europe

Discussion leaders: Terri Wills, London City Director, Clinton Climate Initiative

Christoph Wildgruber, Head of Sustainability, Allianz Real Estate

17:30 Conference Close