Recent weather in Europe has been unusually wet and turbulent, seemingly in sympathy with the travails of the Eurozone. In contrast, our quarterly commercial real estate newsletter’s Spring 2012 edition points out that Q1 is always a little quieter than Q4, and this year is no exception.

This is not to say that there has been no activity. Our Key Figures article offers interesting summaries and graphs of take-up, transactions per sector, vacancy rate and rent per sector for Luxembourg commercial property in the past quarter.

M.D. Michael Chidiac’s editorial touches on similarities between the observations of two key players who attended Mipim 2012, Alex De Witte of Pylos and Dirk Ruppert of Pramerica, whose thoughts about the Luxembourg commercial real estate market are reported in two interviews on this blog.

Michael remains upbeat about Luxembourg’s possibilities in the current market and invites readers to challenge RealCorp with opportunities for creative thinking.

The newsletter also provides several pages of attractive current offers of offices in the CBD, Bourbon, Station, Gasperich, Howald, Leudelange, Airport, Kirchberg, Strassen, Capellen, Windhof and Bertrange areas, as well as warehouse opportunities. It includes a special feature on a striking building by Harald Deilman, the wellknown German architect.

On our Newsletter page, you can browse through previous newsletters, register to receive future newsletters by email, and advise us of topics you would like to see covered in later editions. We look forward to receiving your feedback.

Read and comment on this post on RealCorp's blog: RealCorp’s commercial real estate newsletter Spring 2012

INDUSTRY INTERVIEW: MIPIM is an international real estate event that takes place each year in Cannes. It brings together key players of the real estate world from investors and developers to architects and end-users. This year the event was held from 12 -15 March and hosted over 19,400 participants and 4100 real estate investors.

Alex De Witte, CEO of Pylos Benelux, was one of the event’s participants and he explained to Margaret Ferns why it was important for his company to be present.

What is the general purpose of MIPIM?
MIPIM is a meeting place for representatives in commercial real estate from all over the world. In fact, I would go as far as to say it is the most important meeting place for property professionals anywhere. It has been known to attract up to 40,000 people, although the numbers have been in decline over the past few years as a direct result of the economic crisis. This year MIPIM hosted in the region of 19,400 real estate professionals. The most visible absences were the eastern European and Dutch markets, both of which have been badly hit by current economic conditions. The Dutch market for example, which has traditionally depended heavily on leveraging, has been particularly impacted by the banking crisis.

What were your reasons for attending?
As I mentioned before, MIPIM is the most important meeting place for real estate professionals in the world and this remains the case regardless of the economic crisis. As such, my reasons for attending were to meet with potential investors looking to buy real estate in Luxembourg and Belgium, as well as keep in touch with existing investors. It was an opportunity for me to test the waters, to gauge the appetite of investors. I was particularly interested in talking to German funds and to banks outside Luxembourg, to assess their interest for properties in the Benelux region. It was also a chance to meet with key figures of the Luxembourg administration, the Mayor of Luxembourg-City for example. Obviously, we have regular contact with such people; however, there is no substitute for establishing a personal connection. In face-to-face conversation we can often learn a lot more about forthcoming plans and projects than we can via reports and emails. This is very important to us and MIPIM represents a valuable opportunity in this respect.

Are you satisfied that your expectations of MIPIM were met and did you learn anything of particular interest?
Indeed yes, MIPIM is always useful. I learned that German funds are still interested in Luxembourg, especially the Central Business District. This represents good news for Pylos as we focus on this area. I also met new banks which expressed an interest in the Benelux region, although some consider it too small a market. With regards to Brussels, investors remain interested but are mainly looking for prime locations and long-term leases. In this respect, I am more hopeful for Luxembourg as Brussels has fewer such opportunities at present.

What were your general conclusions at the end of the event?
MIPIM is widely regarded as a strong indicator of global market trends and, as such, I left the event with the feeling that the worst is behind us. I think that 2012 will still be a difficult year—investors remain cautious and financing difficult, however I am convinced that property professionals, those who fully understand the realities of their markets, will see a demand for their services and conduct business.

Alex De Witte is CEO and Partner of Pylos Benelux. He has more than 15 years’ experience in professional real estate, working in the Luxembourg and Brussels markets and focusing on the development of office spaces in the Central Business Districts. Prior to joining Pylos Alex spent 10 years with ALLFIN and 3 years at Bouwfonds Property Development where he was involved in several major developments in Brussels and Luxembourg.

Margaret Ferns is a freelance journalist based in the Grand Duchy of Luxembourg. She has more than 15 years experience of reporting on business issues in Luxembourg and the Greater Region with particular emphasis on property, finance and human resources.

Read and comment on this post on RealCorp's blog: More on MIPIM 2012: Alex De Witte, Pylos

INDUSTRY INTERVIEW: MIPIM 2012 took place in Cannes from 12 – 15 March, attracting over 19,400 visitors from 83 different countries. According to its organisers, the four-day event is an indicator of global market trends and represents the ideal opportunity to meet new business contacts and generate partnerships.

Dirk Ruppert, General Manager of Pramerica Real Estate Investors (Luxembourg), attended the event with a view to taking full advantage of this opportunity. In this interview he describes to Margaret Ferns how he has seen MIPIM evolve over the years.

What is the general purpose of MIPIM?
The purpose of MIPIM has changed over the years since its inception. When it first started it was primarily a broker festival, bringing together participants from the French market looking to make deals and carry out transactions. Over the last decade is has become increasingly international, with more and more portfolio managers and other players from the investment side attending. Although I believe MIPIM is still broker-driven, it has evolved to the point where it is widely regarded today as the international show for professional real estate players and attracts the whole range of interested parties – brokers, investors, developers, architects, hotel groups, public authorities, property associations and end users. MIPIM has also become a forum whereby countries can present themselves and the opportunities they represent to the international community. For example, in 2007/2008, Russia was very much present and this year’s edition saw Qatar take a huge exhibition space.

What were your personal reasons for attending?
PREI is a real estate investment company and so it is important for us to meet with brokers to learn what transactions are in progress or in the pipeline. Since MIPIM brings together all the key players in real estate globally, it is a perfect opportunity to meet people we would not be able to meet in Luxembourg in a timely and cost efficient way.

Are you satisfied that your expectations of MIPIM were met and did you learn anything of particular interest?
Attending MIPIM is always a worthwhile venture and I will be back. My primary objective was to meet with key people and I was certainly able to do this. As I mentioned before, MIPIM is efficient. With everyone together in one place for four days we set up many meetings, lunches, dinners etc. This allowed us to make contacts and build relationships that would normally take a lot of time and money. This is extremely valuable. Throughout these meetings it was confirmed to me that, although Luxembourg remains an attractive market, it is considered too small. At this point in time investors are concentrating on the main real estate markets of London, Paris and Berlin. As such, I was encouraged to see that Luxembourg had a strong presence and played a very active part at MIPIM this year. It was well represented by individuals from the real estate sector and beyond, as well as by members of the Luxembourg administration – all making a cohesive effort to promote the country.

What were your general conclusions at the end of the event?
The real estate market differs from country to country so it is not possible to conclude that we are coming out of the crisis or not – this may be the case in some countries and not in others. What is certainly true, regardless of the country, is that property transactions require financing and as long as this remains difficult we cannot say that we are fully out of the crisis. As a result of the banking crisis the real estate market has experienced a lot of volatility over the last three years and, until this is resolved, I believe we still have some challenging times ahead. Having said that, markets are by their nature cyclical and real estate requires a long-term view. As such, things will improve in time and real estate professions will see greater demand for their expertise.

Dirk Ruppert is General Manager of Pramerica Real Estate Investors (Luxembourg) S.A.. Pramerica Real Estate Investors (“Pramerica”) is the real estate investment management business of Prudential Financial, Inc. of the United States. Pramerica’s business is the execution of real estate investment strategies, in markets throughout the world, for a global client base.

Margaret Ferns is a freelance journalist based in the Grand Duchy of Luxembourg. She has more than 15 years experience of reporting on business issues in Luxembourg and the Greater Region with particular emphasis on property, finance and human resources.

Read and comment on this post on RealCorp's blog: Dirk Ruppert (Pramerica) reflects on MIPIM 2012

A similar article by Tehdi-Edouard Babigeon, Head of Letting and Sales for RealCorp Luxembourg, was published in French in Le Jeudi on Thursday 23rd February 2012. We offer this version for the benefit of our English-speaking readers.

Letting and Sales is the heart of the commercial real estate business. “Without transactions, there is no market”.

All the other roles: real estate investment, asset and property management, valuation, consulting, development, depend on it.

The Negotiator’s Role

The Letting and Sales Negotiator is a business advisor and intermediary between building owners and users. The Negotiator’s complete knowledge of the different real estate products (offices, industrial-logistics-production locations, stores, etc.) and actors (developers, builders, users, investors, local authorities, etc.), combined with understanding of technical specifications, taxation and law, make him or her a key player.

The Negotiator’s main skill is intermediation. In Letting and Sales we deal with both sides at once and must thus satisfy two complementary interests.

Real estate is important for any company, so we have the advantage of direct engagement with company decision-makers such as asset managers, heads of real estate, or other company officers. Our job requires a lot of listening, responsiveness, and, especially, a sharp knowledge of the market.

Evolution of the Negotiator’s Role

In recent years the job has become considerably more professional as it adapts to and responds to customer requirements. The B2B context certainly requires continuous evolution. Today most clients expect agents to go further in advising and supporting their projects, by assisting them all the way from search to installation.

RealCorp has responded by expanding our service offering with an in-house Project Management service, to give clients solutions for space planning and fitting out. This enables them to plan their future in the locality better, and also gives them greater insight into the choices available to them. This is a real decision-making tool and we encourage our clients to use it.

We expect that, in years to come, Letting and Sales agents in Luxembourg will adapt to advise on factors such as future sustainable development and advanced technologies. Like that of our French neighbours, our role should move towards the establishment of “green leases” or “baux verts”.

The advantage for users is proper understanding of the environmental issues related to buildings, to enable them to act daily to optimize their working conditions, reduce their spending on rental charges, and even improve their corporate image. This awareness also enables owners to increase the attractiveness of their buildings and reduce the turnover of tenants.

Profile of a Good Negotiator

Specialized real estate courses can prepare people for the Letting and Sales role, such as those offered by SBS-EM (Solvay Brussels School of Economics & Management) in Belgium, the ICH (Institute of Economic and Legal Studies applied to Construction and Housing) in France, the Akademie der Immobilienwirtschaft (Academy of Real Estate) in Germany, or many of the schools listed on the RICS Accredited Resources page.

However, generalists emerging from business school or university may also make good brokers, because of their versatility, their mental acuity and their dynamism.

I believe there is no typical profile. Great real estate negotiators are neither just salespeople nor purely technical consultants; they are a mix of both.

The Outlook for Letting and Sales in Luxembourg

As far as the outlook for the Letting and Sales sector is concerned, I believe it is good. Like other European capitals, Luxembourg has suffered from the difficult and very complex economic atmosphere, and it is true that the Luxembourg market is highly correlated with business services in general and financial services in particular, thus its prospects are directly related to the global crisis.

However, commercial real estate in the Grand Duchy has successfully resisted this crisis. The main illustration of the Luxembourg real estate market’s good performance is a low vacancy rate compared to other European markets. Combined with stable rents, this positions Luxembourg amongst the dynamic markets in Europe.

This sign of confidence encourages many players to think that Luxembourg will in coming years see return on investments.

A bright, green, future

In particular, the growing importance of “green buildings” in the Grand Duchy, in the wake of new European regulations, will ensure that “green” real estate of all forms will be a winning bet.

Thus there is still a bright future for Letting and Sales in Luxembourg. This sector remains dynamic in any economic situation, whether there is an upward or downward trend, since either engenders movement from companies, whether to “take more” or to “take less” space. But it is likely that the “greener take” will be the main animator of Letting and Sales in coming years.

Read and comment on this post on RealCorp's blog: Letting and Sales: the heart of real estate

RealCorp Luxembourg’s Winter Newsletter 2011/12 contains so much good news that we decided to celebrate by introducing a new format to make reading easier and more enjoyable.

Please comment below this post, either on the new format or on any of the items covered. These include:

• Key figures (Take-Up and Vacancy) that show a healthier-than-expected commercial real estate market in Luxembourg in 2011.
• Introduction to new appointments at RealCorp (yes, we are expanding!):
  • Alain Dehem, who is Head of our new Project Management Services division.
  • Aurélie Vanuaudenhoven, who has joined our Agency team as an Account Manager.
• A choice of luxurious, environmentally friendly and exceptionally well-located office buildings with immediate availability in the Current Offers section, including some new to the market since our last newsletter.
• A special feature on the European Bank and Business Centre (EBBC). This collection of highly desirable buildings is proving very popular with international companies because of its location near the Airport and easy access for all forms of transport.

You can also browse through previous newsletters, and register to receive future newsletters by email, on our Newsletter page.

Read and comment on this post on RealCorp's blog: Good News in our Winter Newsletter 2011/12

As we move into 2012, it’s important to be aware not only of the major economic pressures that are having an enormous impact on the way we do business, such as the current squeeze on bank finance and the uncertain future of the Euro (indeed, who could fail to be aware of these?), but also to note the underlying trends that accompany them.

Several of our posts in 2011 addressed environmental protection and energy efficiency, which have become much more important in recent years. RealCorp proactively called attention to this (indeed, our first post on this blog a year ago was on this very theme: Go green profitably in Luxembourg).

A year later, we can see that this trend is definitely not a fad, and not restricted to the Luxembourg market, as Tehdi Babigeon reported after his recent trip to SIMI in Paris.

Occupants, like owners, now look for quality labels. There are different degrees and different labels, which have different requirements (four of the major ones are discussed in the post Luxembourg commercial real estate initiatives 2011), but, in general, people seek verifiable evidence of sustainable building. This is due not only to environmental concern, but also to an interest in improving financial reporting.

RealCorp’s MD, Michael Chidiac, explains it thus:

Buildings that are more responsible, more energy-efficient, reduce operating expenses.

Of course, it costs extra time and energy to build environmentally friendly buildings. It also costs more money. However, these costs must be viewed in light of green buildings’ other purpose: the maintenance of their intrinsic value. In the life cycle of a property, sustainability is an important criterion. It’s no longer just a question of the sale price, but of how the property will succeed in maintaining its value through time.

In other words, savings in operating costs are only one aspect of sustainability. A good building, which costs little to maintain and occupy, will also reduce the turnover of tenants. Staying longer, they stabilize the readability of your investment.

There is a domino effect in this system: investors, seeing the good results of the first “responsible” buildings, begin to look for similar projects. This becomes a means of differentiation vis-à-vis the competition, and provides more value to the investment. Whereas, previously, ecological buildings were “nice-to-have”, the evolution and maturation of the market is transforming them into necessary assets, as evidenced by direct demand from clients.

If you are looking to own or occupy cutting-edge office space that makes financial sense in Luxembourg in 2012, we urge you to consider some of the green buildings we represent on this site’s Innovative Projects page.

Read and comment on this post on RealCorp's blog: “Sustainability” moving centre-stage in commercial real estate

At the beginning of December, Tehdi-Edouard Babigeon, our Head of Letting and Sales, represented RealCorp at the SIMI (Salon de l’immobilier d’entreprise) at the Palais des Congrès de Paris Porte Maillot, France.

Marketed simply as “le rendez-vous de l’immobilier d’entreprise” or, in English, “The Real Estate Event”, it attracted around 20 000 visitors this year, proving that markets are very interested in Commercial Real Estate. Most sectors are suffering from the recession, but Tehdi observed that Commercial Real Estate seems to be in better health than Residential Real Estate. He returned with this report:

“In participating in SIMI this year on behalf of our clients (landlords and end users), our objectives were to identify business opportunities by meeting international funds based in Paris, and also to gain a better overview of our French neighbours’ real estate sector.

What did we learn?

2011 has been a year of “trompe l’oeil” for the real estate market in France:

• Companies are moving but not always where they had planned to go
• Generally, Supply and Demand are having trouble in meeting; as a result, transactions take 6-9 months as opposed to 3-6months earlier in the year
• The investment market seems to be back, but with a foggy horizon for the future

There is a new conception of the city, of buildings and of office spaces:

• Office buildings with showy architecture are no longer appropriate to the market. Users and developers are looking for green buildings with energy and cost savings.
• Traditional ways of working in companies are changing dramatically, as demonstrated by the rise in businesses that incorporate some form of “coworking”, “a style of work which involves a shared working environment, sometimes an office, yet independent activity”.

Although the Luxembourg market does not work on exactly the same model, we do share some similar effects with our French neigbours.”

Despite the general anxiety in the financial markets, RealCorp remains optimistic for 2012, precisely because we have experience in meeting the kinds of needs that Tehdi describes above. We have a good track record in matching buildings with client requirements, and in finding alternatives when circumstances change. We are aware of the need for careful analysis of potential investments and have the expertise and the patience to support clients in that process. We also have several energy-efficient “green” buildings in our portfolio, including many that are excellently designed for various forms of “co-working” and which are well-located (with easy access to the airport and other transport systems) for commuting managers and cross-border teams.

Read and comment on this post on RealCorp's blog: Commercial real estate active at SIMI 2011

RealCorp’s Autumn newsletter was initially slightly delayed while, like everyone, we waited for the promised announcement of the Euro rescue package that we expected from the G20 summit in Cannes. When it didn’t come, we decided, as the editorial, says, to get on with business anyway!

We had several good leads to work on after a successful visit to ExpoReal and, despite the market uncertainty, we were happy to send our newsletter out in November because we had several pieces of good news to offer:

• RealCorp facilitated the acquisition of the STARGATE project in October by AXA LUXEMBOURG/ AXA BELGIUM from developers PYLOS BENELUX/ DEXIA BANK BELGIUM and continues to coordinate the letting of the remaining 2200m2. The newsletter gives details of the accommodation available.
• The Key Figures review demonstrates that take-up in Q3 continued to improve, with a particularly strong showing from the financial sector, and that vacancy rates are still quite low, although there are obviously variations between CBD and outlying areas. It explains that rents are broadly stable and offers reasons for variations. For more detail, including figures and graphs, please see the newsletter.
• Amongst the wide-ranging selection of Current Offers are some interesting New Offers of properties To Let, some with very attractive rents.

If you haven’t read it yet, we hope you enjoy the Autumn Newsletter and look forward to receiving your feedback!

You can browse through previous newsletters, and register to receive future newsletters by email, on our Newsletter page.

Read and comment on this post on RealCorp's blog: Autumn Newsletter: AXA buys StarGate; Q3 figures good

INDUSTRY INTERVIEW: This October, RealCorp’s Head of Investment & Advisory Services, Greg Sheppard, and M.D., Michael Chidiac, attended ExpoReal 2011 in Munich, and returned full of energy for new and ongoing projects. I asked them why they find this event so particularly useful and what specific insights they gained this year (in general, they echoed or expanded on each other’s conclusions, so I have conflated their answers here).

1. What is the purpose of ExpoReal?
   It’s an opportunity for companies, regions and countries to display their latest real estate projects, and a networking forum for property professionals. All the people one might need to see, from different countries or from different sectors of the commercial real estate business, are together under one roof. So it is ideal for meetings with clients or complementary service providers.
2. What is your purpose in going to ExpoReal?
   We attend Expo to make new connections, introduce our clients to each other, and deepen existing relationships. Expo is a great forum for gaining a broad insight into the state of the market by exchanging ideas with peers and taking the pulse of the industry in general.
3. Did ExpoReal 2011 differ from last year’s Expo in any way?
   The ExpoReal closing report outlines that Belux is a growing platform at Expo. This year there were twice the number of visitors from the Netherlands. The report also specifically mentions Luxembourg real estate, underscoring our country’s growing popularity as a Real Estate investment and development location. In the words of Jeannot Krecke, Minister of the Economy and Foreign Trade of Luxembourg, “It would be a mistake not to be here”.
4. How does it compare with MIPIM and the GRI Summit?
   Well, Expo is really such a significant size that it’s difficult to compare it with anything but MIPIM. ExpoReal hosted 37,000 people this year, and although MIPIM 2011 had only about 18,000 visitors, it has had up to 30,000 in other years. In contrast, only 300 or so attend the GRI. Both MIPIM and Expo are trade shows with a much more overt promotional ethos, whereas at the GRI the focus is on facilitated discussion by industry leaders. However, this does not mean that the senior decision-makers are not at ExpoReal, just that they are usually in business meetings, such as those that we arrange.
5. The report says that “The mood in the halls was very good” and that “71 per cent of the visitors were of the opinion that the current economic situation in the sector was positive. As regards developments going forward, 47 per cent expect no change, 28 per cent think there will be an improvement and 25 per cent see a worsening of the situation.” Did your own conversations bear out these statistics?
   Our sense was that the “mood” was mixed. Interest in trading was definitely tempered by deep concerns over the Euro sovereign debt crisis and the increasing scarcity of finance. People we spoke to were busy with deals and ongoing projects, but many of these were proceeding slowly. Both developers and investors mentioned issues with debt financing, and the uncertainty over how the Euro will emerge from the sovereign debt crisis naturally makes banks reluctant to commit funds to anything other than core property deals.
6. Were your own expectations or hopes of this year’s show fulfilled?
   All of our meetings were very positive and we came back with new avenues of business, and new relationships to explore. The positive impact of ‘meeting shops’ like Expo is to galvanise opinion, ideas and relationships into plans of action … and we’re never short of a good idea or two!
7. Why do you think that you had these positive responses, given the current economic climate?
   Firstly, we are experts in the local Luxembourg market, which is still trading comparatively strongly, so we had some good opportunities to offer clients. Secondly, we can think imaginatively about how to structure deals, despite banks’ reluctance to finance. Thirdly, we have specific experience in identifying and delivering real estate value through local market knowledge and active asset management. Despite financial turmoil, real estate still needs to be managed and clients are always keen to speak to people who can find and deliver solutions for their real estate needs. As one contact said at Expo, “People forget that Real Estate is real—it’s not a financial instrument or bond”. Despite difficulties of financing, people need to do business, and it must be a shared hope that the Euro countries will sort out their debt issues before the markets do it for them.

Read and comment on this post on RealCorp's blog: Report on ExpoReal 2011: Experts can still find value

INDUSTRY INTERVIEW: Hans Stuckart, Director and Deputy Fund Manager, CORPUS SIREO Investment Management S.à.r.l., Luxembourg, has experience in real estate fund investment and management. Like Keith Burman, whose thoughts we posted last week, Hans attended the recent Global Real Estate Institute Europe Summit 2011 (GRI) in Paris.

The GRI describes itself as “a global club of senior real estate investors, developers and lenders… at GRI meetings there are no speakers or panellists, just informal discussions in small groups, where everyone participates equally.” Tia Azulay, RealCorp’s Head of Communications, asked Hans Stuckart for his opinion of the summit from a real estate funds perspective.

1. Which discussions at the GRI Summit 2011 were most useful for you?
   Definitely, discussions relating to the sovereign crisis and its impact on real estate. The unanswered questions remain where to invest money and how to evaluate alternative options given investor expectations. On the valuations side, for example, some surveyors use government bonds as an element of their discount rate. When interest rates increase suddenly (e.g. for Italy), yields for real estate artificially decompress without any evidence from the market. This brings up difficulties between fund managers, investors and surveyors, because even though good properties retain good covenant tenants and positive cash inflows, properties lose value, with a negative impact on the Net Asset Value as a result of sovereign negative rating. The quick-fix then may be to change the surveyor or the surveying method.
2. Did you draw any general conclusions from the conference?
   The general market uncertainty means that investors are very cautious. Even though they are sitting on enormous amounts of equity right now, they don’t know where to invest it. They are only slowly getting used to lower returns and adjusting their expectations.
3. In light of this uncertainty, how are you finding the capital-raising market?
   It is difficult to raise funds at present, even from the usual reliable players: insurance companies, family offices and pension funds. They are making some investments, but very cautiously and slowly. It takes an enormous amount of time and effort to convince investors to release money. On top of that, when they do invest, some investors prefer using their own money, rather than financing, even if this means a reduced return rather than benefitting from leverage. This raises the question of what this means for the banks which are now side-lined from these core property deals.
4. Have any recent developments in the global or European markets altered those conclusions?
   No, my perceptions are still the same—uncertainty prevails and people are seeking investments that they see as less volatile. For example, there is huge interest in retail property in Germany, especially from foreign investors, probably because, in 2008-2011, retail properties had relatively few problems with valuation and rental income compared to other asset classes. Therefore this intense interest in a single sector leads to compressed yields. While good for vendors in the short term, it may not be healthy in the long term. There is no macro-economic reason to focus on retail; it is just an idea of stability. So this raises the question of whether it is just the flavour of the month, or a sustainable trend, as German consumption behaviour has not changed and, according to a GMA/Sonae survey, 38% of German shopping centres do not perform.
5. Is Luxembourg still an appropriate strategic base for you?
   German legislation has adjusted the Investment act a lot recently, so that Luxembourg is not quite as attractive as it was to German investors in the past; however, it still has some advantages and it remains very important from an international perspective. Luxembourg is the second-largest fund market in the world, after the USA. It is highly regulated and extraordinarily professional. The tax treaties between foreign countries and Luxembourg make it rather simple to bring diverse international investors together in the same vehicle. So we have no doubt that it is good to be here.

Hans Werner Stuckart joined CORPUS SIREO Investment Management S.à.r.l. in Luxembourg in March 2011 as a Director and fund manager of Sireo Immobilienfonds No. 4 SICAV-FIS. He was previously Head of Asset Management and of German operations for UK private equity property investment company Catalyst Capital GmbH in Frankfurt (Jan2008-Feb2011), where he was responsible for realizing implemented business plans, new acquisitions, due diligence, financial reporting and modeling and asset management for opportunistic retail and office properties, and for work-out, refinancing and repositioning of the German portfolio. As senior portfolio manager for Commerz Real (Jun2004-Jan2008), he was responsible for a shopping centre portfolio in Canada for the open-ended global property fund, and a member of shareholder and advisory committees. From 2007 he managed two open-ended institutional property funds, invested in shopping centres, office buildings and warehousing. From Jul 2000-Jun 2004 he was senior financial services auditor for KPMG Frankfurt, responsible for valuations and for audits of property loans and of private equity vehicles. He has degrees in Business Administration and in Real Estate Portfolio Management (EBS).

Read and comment on this post on RealCorp's blog: Luxembourg still good for real estate investors