Stressing quality and not quantity
The first three memories which come to mind when I think about this year’s Munich Exposition are the exhibition halls dominated by city representatives, the buzzing property agents’ stands and those ubiquitous gentlemen in their dark well-cut suits
When thought was given in September to Expo Real 2009, the general expectation was that it would be the scene of a breakthrough on the property market, primarily when it comes to financing issues. The meeting was meant over several days to have made it clear that the crisis was gradually receding. Hopes were high and my impression was that something like a self-satisfying prognosis mechanism was ticking away somewhere, and the optimism expressed by at least some of those present seemed a little artificial. Too much was being said about this or that bank unblocking credit lines, or it was just talk about possibly concluding a few more investment transactions, including several significant in size, by the end of the year. However, hard facts were noticeably absent – apart from maybe the EUR 100 mln loan which Eurohypo had granted to Echo Investment. But enough complaining – compared with last year’s event, the mood was clearly an improvement. The slogan ‘quality and not quantity’ was the rule of the day. There were 21,000 visitors from 73 countries attracted by the city’s much lauded Oktoberfest beer-quaffing extravaganza, although there were 15 pct fewer than in 2008. On the other hand, there were precisely 14,750 male exhibitors in their state-of-the-art fashionable suits. I may be biased by a woman’s impression, but I felt the representation of the fairer sex was surprisingly small. The countries which led the field as regards numbers of representatives at the exposition were, obviously, Germany, followed by the UK, Austria, Holland, Switzerland and… Poland. The agency stands were as busy as beehives. On the other hand, our JLL neighbour claimed that, indeed, the traffic was substantial, but generated by the same people from morning till evening. Could this be an expression of envy? One can only hope that there will be no cases of jealousy between exhibitors during the next event. Next year’s Expo Real is to start a day earlier – on October 4th. ν (AND)
Expo Real Fair was different from the last one because ...
Adrian Karczewicz, director – project financing, Echo Investment
... people came to talk in concrete terms about transactions – financing, investment, joint ventures. Especially for us Expo Real 2009 was very successful. During the fair Echo and Eurohypo signed the “loan agreement of the year” – EUR 100 mln for the construction of Galeria Echo.
Robert Dobrzycki, managing partner for Central and Eastern Europe of Panattoni Europe
... the general climate was much better despite the smaller number of exhibitors compared with 2008. Still, there is much caution and hesitancy, but greater optimism clearly took the place of the shock last year, with all the news about collapsing banks and the fear of an uncertain future leaving everyone shattered. Several decisions announced on financing new projects were proof that the situation was improving. Companies were also feeling more secure due to the greater predictability of how banks and financial institutions were going to behave, though they are still adopting a cautious and pick-and-choose approach towards most transactions. Poland and the Czech Republic, Central European countries which were proving able to cope best with the crisis, were prominent among the exhibitors. Despite continuing stagnation, the exhibition revealed that a very strong desire exists to invest and to motivate business growth.
Jeroen van der Toolen, Ghelamco managing director for Central & Eastern Europe
... last year everybody was talking about the falling stock markets and how big and long the crisis was going to be. Last year no business was being done or seriously discussed. This year we have seen a shift in positions from funds and banks. There was a positive vibe. Funds are acquiring properties again and banks are lending. Things are still moving slowly, but there is optimism about next year.
Michał Sternicki, general manager, Aareal Bank Poland
... Poland attracted much interest from investors and developers. A larger number of Polish developers was also visible. Discussions and meetings were very much focused on the realistic expectations on both sides of what can actually be done. The atmosphere of the fair was business-oriented. Both investors and banks were looking at long term relationships beyond the current turbulent markets.
Magdalena Szulc, business unit director Central Europe, Segro
... everybody was looking for this event to be a kind of barometer of our industry... It was slightly quieter with less visitors, but from our perspective the quality of communication and networking gave the signal to move forward...
Maciej Kiełbicki, managing director, Mayland Real Estate
... financial institutions seemed to have a much more positive ambience this year. Especially with respect to Poland, which is considered a new major investment market comparable to France, Germany or Great Britain. Investors are starting to be active in the Polish real estate sector again. However, their choices of partners and transactions are far more selective than before 2008.
John Duckworth, managing director Central Europe, Jones Lang LaSalle
... people sensed a small but discernable recovery in CEE property markets. In comparison, last year’s Expo was notable for the deep prevailing negative sentiment, particularly post Lehman’s and Hypo, when delegates could see the writing on the wall for the next 12 months. This led to fundamental re-adjustments across CEE property markets, which in some cases is still ongoing. The recovery is fragile and has exposed wide variances across markets in the region. Nevertheless, Expo 2009 is likely to be seen as the low water mark from which the region will gradually recover.
Jerzy Hańczewski, country manager, Mayfield Polska
... the total exposition area was smaller and there were no Arab investors and financiers at all. Real estate land offers in the CEE region were represented mainly by several Polish cities while the usually large Russian delegation was calmly represented by the Moscow stand, and not in a flashy way at all. On the other hand, this year Expo Real was no different than last year because once again it had shown how introverted the German market was... focusing on its own agenda and with less than little interest in the other European markets, including Poland. Fortunately – as has almost become the tradition – the weather in Munich was good for the time of the year.
Pawel Kuglarz, partner of Beiten Burkhardt P. Daszkowski law firm
... there was not only a quantitative difference, in that the Expo had fewer participants compared to 2008 and 2007, but there was also a difference in quality: many companies which were previously mainly (almost 100 pct) focused on the private sector are now active in the public sector. This is a kind of transformation. New infrastructure projects, such as the privatization of airports, the expansion of high speed railways and the introduction of new payment systems for motorways, are having and will continue to have an important influence on the real estate market in Eastern Europe.
Aleś Novotny, executive director of the Central Group
... a good atmosphere prevailed. Fear, anxiety and pessimism ruled the roost in October 2008, with the participants being shell-shocked by the breaking crisis. Today the situation is under control. A climate of continuing work, cautious optimism and hope for things to come was the predominant factor this year. Our company participated in Expo Real 2009 as a joint exhibitor alongside Prague city, the purpose being to promote our joint project “Prague Real Expo 2010” to be held next April. Yet another important reason for our presence in Munich was the possibility of making interesting contacts and meeting people who have something to say in this sector. The exhibition as such did not arouse any great interest on our part.
