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CB Richard Ellis Investors talks exclusively to REuropeabout its major Milan scheme, Segreen Business Park, and revealsits investment strategy for 2011

PROJECT FOCUS

ECE’S SPANISH ARMADA

THE BRITISH LAND STORY

ATTRACTIVE DEBT SCENARIOS

EUROPE /ECE’S SPANISH ARMADA

BUSINESS /THE BRITISH LAND STORY

FINANCE /ATTRACTIVE DEBT SCENARIOS

CB Richard Ellis Investors talks exclusively to REuropeabout its major Milan scheme, Segreen Business Park, and revealsits investment strategy for 2011

Building the futureBuilding the future

The finance and economics of european Real Estate

R E A L E S TAT E

the cover

Segreen Business Park, in the borough ofSegrate, just outside Milan, is a next gener-ation business park that is set to raise stan-dards and respond to the needs of moderntenants. CB Richard Ellis Investors SGRpA,the Italian entity of CB Richard EllisInvestors, which bought the existing proper-ty and land on behalf of its StrategicPartners Europe III Fund, has created avision for the park that will see standingstructures refurbished and new elementsconstructed, to provide its tenants with apre-certified LEED Gold environment.Comprising more than 30,000 sq m of classA office space and committed to a sustain-able philosophy for its construction, comple-tion andmanagement, Segreen is just one ofa raft of projects which CB Richard EllisInvestors is realising despite the difficultclimate. Christine Sonnier, Director Generalof CB Richard Ellis Investors in ContinentalEurope, and Alberto Radice Fossati, AssetManager based in Milan, talk about thisscheme and many more, as well as thefuture shape of the industry, in an exclusiveinterview with REurope Magazine.

RE: THE SEGREEN BUSINESS PARK IS SETTO DELIVER MORE THAN 30,000 SQ M OFCLASS A OFFICE SPACE TO A STRATEGICLOCATION NEAR MILAN. CAN YOU TELL USA LITTLE MORE ABOUT THIS IMPORTANTCONSTRUCTION AND REDEVELOPMENTPROJECT?CS: Segreen Business Park is a wonderfulcampus development that we bought in2008 from owner and tenant 3M, who want-ed to move and reduce the surface area theywere occupying, preferring to change officesrather than staying and adapting the space.We reached a sale and leaseback agreementtogether, to give them time to move into

their new building; so although we bought itin 2008, they only left a few months ago. Weworked the last two years on obtaining thepermits to build the project, which is a newconstruction and redevelopment scheme onthe same site. We decided to hire a highquality team, including Lombardini22, BovisLend Lease and ReValue to help design theproject. Delivery will occur in two phases, atthe beginning of next year and at the begin-ning of 2012. An integral part of the projecthas been the work process analysis ofsuccessful international companies: peopleused to working through the day, in a contin-uous information flow that doesn’t distin-guish work hours from leisure ones. Segreenwill be able to accommodate quality inevery moment of a working day, in a contin-uous rotation of concentration, interactionand relaxation. This is another key schemefor CBRE Investors, in a European context;first of all because its a huge project, morethan 30,000 sqm GLA, so its one of the mostsignificant schemes we have in terms of size,one of the top 5 largest in ContinentalEurope. We are also implementing the LEEDcertification, it has been pre-certified Gold;sustainability is now a key part of ourapproach and day-to-day property manage-ment.

RE: PERHAPS WE COULD LOOK FURTHERAT YOUR APPROACH TO SUSTAINABILITY ALITTLE BIT LATER ON. JUST FOCUSSING ONSEGREEN AGAIN, I KNOW ITS BEINGDEVELOPED FOR YOUR STRATEGICPARTNERS EUROPE III FUND. WHAT ARETHE CHARACTERISTICS OF THIS FUND, ANDWHAT STAGE IS IT AT?CS: This fund was launched in 2007 and isnow fully invested in several properties inGermany, Italy, France, the Netherlands

The interview / CB Richard Ellis Investors Europe

Modern, greenand transparent

As Europe emerges from the crisis, Christine Sonnier, Director General of CB Richard Ellis Investors’Continental European operations, discusses an evolving business model which is as modern, greenand transparent as some of their exciting new building projects. We focus on the Segreen BusinessPark, taking shape at the gates of Milan, which is set to be one of the fund manager’s five biggestschemes in the whole of Continental Europe and seems likely to establish new standards right acrossthe board in terms of services and sustainability. REurope finds out more...

REurope Number 69 - October 2010 1716 REurope Number 69 - October 2010

From left to right: Alberto Radice Fossati,Christine Sonnier, Giuseppe Cerami andLuca Pellegrini

All photos © Beppe Raso

Segreen Business Park

EXPO REAL:

CB Richard Ellis Investors will be guestof the Stuttgart Region’s Stand

Halle B1. 120

Eingang Tor 5

the cover

Segreen Business Park, in the borough ofSegrate, just outside Milan, is a next gener-ation business park that is set to raise stan-dards and respond to the needs of moderntenants. CB Richard Ellis Investors SGRpA,the Italian entity of CB Richard EllisInvestors, which bought the existing proper-ty and land on behalf of its StrategicPartners Europe III Fund, has created avision for the park that will see standingstructures refurbished and new elementsconstructed, to provide its tenants with apre-certified LEED Gold environment.Comprising more than 30,000 sq m of classA office space and committed to a sustain-able philosophy for its construction, comple-tion andmanagement, Segreen is just one ofa raft of projects which CB Richard EllisInvestors is realising despite the difficultclimate. Christine Sonnier, Director Generalof CB Richard Ellis Investors in ContinentalEurope, and Alberto Radice Fossati, AssetManager based in Milan, talk about thisscheme and many more, as well as thefuture shape of the industry, in an exclusiveinterview with REurope Magazine.

RE: THE SEGREEN BUSINESS PARK IS SETTO DELIVER MORE THAN 30,000 SQ M OFCLASS A OFFICE SPACE TO A STRATEGICLOCATION NEAR MILAN. CAN YOU TELL USA LITTLE MORE ABOUT THIS IMPORTANTCONSTRUCTION AND REDEVELOPMENTPROJECT?CS: Segreen Business Park is a wonderfulcampus development that we bought in2008 from owner and tenant 3M, who want-ed to move and reduce the surface area theywere occupying, preferring to change officesrather than staying and adapting the space.We reached a sale and leaseback agreementtogether, to give them time to move into

their new building; so although we bought itin 2008, they only left a few months ago. Weworked the last two years on obtaining thepermits to build the project, which is a newconstruction and redevelopment scheme onthe same site. We decided to hire a highquality team, including Lombardini22, BovisLend Lease and ReValue to help design theproject. Delivery will occur in two phases, atthe beginning of next year and at the begin-ning of 2012. An integral part of the projecthas been the work process analysis ofsuccessful international companies: peopleused to working through the day, in a contin-uous information flow that doesn’t distin-guish work hours from leisure ones. Segreenwill be able to accommodate quality inevery moment of a working day, in a contin-uous rotation of concentration, interactionand relaxation. This is another key schemefor CBRE Investors, in a European context;first of all because its a huge project, morethan 30,000 sqm GLA, so its one of the mostsignificant schemes we have in terms of size,one of the top 5 largest in ContinentalEurope. We are also implementing the LEEDcertification, it has been pre-certified Gold;sustainability is now a key part of ourapproach and day-to-day property manage-ment.

RE: PERHAPS WE COULD LOOK FURTHERAT YOUR APPROACH TO SUSTAINABILITY ALITTLE BIT LATER ON. JUST FOCUSSING ONSEGREEN AGAIN, I KNOW ITS BEINGDEVELOPED FOR YOUR STRATEGICPARTNERS EUROPE III FUND. WHAT ARETHE CHARACTERISTICS OF THIS FUND, ANDWHAT STAGE IS IT AT?CS: This fund was launched in 2007 and isnow fully invested in several properties inGermany, Italy, France, the Netherlands

The interview / CB Richard Ellis Investors Europe

Modern, greenand transparent

As Europe emerges from the crisis, Christine Sonnier, Director General of CB Richard Ellis Investors’Continental European operations, discusses an evolving business model which is as modern, greenand transparent as some of their exciting new building projects. We focus on the Segreen BusinessPark, taking shape at the gates of Milan, which is set to be one of the fund manager’s five biggestschemes in the whole of Continental Europe and seems likely to establish new standards right acrossthe board in terms of services and sustainability. REurope finds out more...

REurope Number 69 - October 2010 1716 REurope Number 69 - October 2010

From left to right: Alberto Radice Fossati,Christine Sonnier, Giuseppe Cerami andLuca Pellegrini

All photos © Beppe Raso

Segreen Business Park

EXPO REAL:

CB Richard Ellis Investors will be guestof the Stuttgart Region’s Stand

Halle B1. 120

Eingang Tor 5

building, so we have some tools such as ourGreen Building Guide which is distributed tothe occupiers of our buildings, to increasetheir awareness of how to use the building ina green way. We also have a green commit-tee which comprises a representative fromeach company that will occupy the space, aproperty manager and a CBRE Investorsdelegate, to discuss how to minimiseconsumption and to maximise the quality ofthe tenancies. Furthermore, we are installinga software terminal in the main lobby whichmonitors consumption on an hourly basis;it’s interactive and useful as it allows thetenants to see, in real time, how much ener-gy they are using; this can help them reachtargets for ISO certification or other internalgoals to improve their corporate socialresponsibility.The attention of Segreen Business Park tosustainability will attract and host compa-nies aware and sensitive to environmentalissues, in a virtuous circle of increasingimportance. Together, companies will gener-ate a new community of business andpeople attentive to their human and profes-sional development. A real opportunity andsynergy network.

RE: I KNOW THAT THESE ARE ALSO SOMEOF THE TOOLS THAT YOU’RE DEPLOYING INYOUR OTHER GREEN PROJECTS. CAN YOUTELL US A LITTLE BIT MORE ABOUT CBREINVESTORS’ OTHER SCHEMES IN MILAN?ARF: Sustainability is a must for us and issomething we want to achieve across all ourprojects, so in Milan, as of today, we aredeveloping a number of key green schemes.I would mention in particular our AfforiCentre, which is located north of Milan in thesemi-central area, covers roughly 12,000 sqm of space and has just been delivered. Thisis actually going to be one of the first build-ings in Italy to be LEED certified: we sent allof its credentials to the US Green BuildingCouncil before the summer, and should getthe paperwork through this autumn – it waspre-certified Silver, but we’re hoping for Goldcertification. Another important schemewe’re building at the moment is Amadeo59,on the east part of the city, in a key location.This will be delivered at the beginning ofnext year and represents ca. 11,870 sq m ofoffices; as of today, it has been pre-certifiedLEED Silver. Newest, 11,790 sq m of offices,as Christine mentioned, is the first BREEAMIn-Use certified building in Italy, and one ofthe first with a “Very Good” rating in Europe.

The building has actually been operating forthree years and is 72% occupied; we thinkits a great score for a building which isalready operating and a further demonstra-tion of our strong commitment towards aSustainable Investment Approach.With buildings generating over 40% of theemissions of CO2, we recognise that,through our investment and asset manage-ment activities, we can make a tangibleimpact on improving energy efficiency,reducing greenhouse gas emissions andslowing climate change.

RE: DO YOU FIND IN GENERAL THAT YOURTENANTS ARE READY FOR SUSTAINABILITY,OR ARE YOU STILL HAVING TO HELPIMPROVE THEIR AWARENESS OF ITSIMPORTANCE?CS: All over Europe, we’re seeing a real movetowards sustainability. Tenants are notalways convinced of its significance, butthey have to follow the trend for their share-holders, for their consumers, so they have tooccupy more sustainable properties. There’smore and more demand for recycling, low-emission carbon and the possibility to meas-ure consumption floor by floor, activity byactivity, to make sure that they are in linewith their estimations. It is becoming moreand more a way of life so they like to includein their corporate social responsibilityreports that their offices, for example, aresustainable. Even those who are not totallyconvinced are often impressed when theystart to receive their first invoices for energycosts. Employees also come into the equa-tion; when you want to hire a young staffmember, they’re often even more aware ofgreen issues, and prefer an employer who isgreen-compliant.

RE: ANOTHER HALLMARK OF YOUR BUILD-INGS MANAGEMENT STRATEGY IS YOUR 5-STAR SERVICES INITIATIVE. IS THIS BEINGINTRODUCED AT SEGREEN BUSINESSPARK?CS: Yes. At CB Richard Ellis Investors, webelieve that buildings have to contribute tothe well-being of tenants and visitors. Wetherefore strive to offer more than officebuildings. We strive to provide a pleasantworkplace, especially though, as you werementioning, our signature 5-Star Services™programme. The fact is that inserting a 5-Star Services programme into a buildingcontributes also to a broader philosophy ofenvironmental awareness and affects

behaviours. This programme offers an arrayof lifestyle-enhancing services and ameni-ties to office tenants such as personalconcierge services, fitness centers, child daycare, beauty center and catering. With thesekind of services on site, you can keepemployees in the work place at lunch time;they don’t need to use their car to go to anearby shopping centre, to take their dry-cleaning, etc.; they stay on site and don’tproduce carbon.ARF: For Segreen, we are working on design-ing better services for the tenants; it’s notjust a matter of providing services likerestaurants or a concierge, it’s also aboutlooking at the surrounding amenities andreaching agreements that benefit tenantsand service providers. For example, there’san excellent Sports centre oppositeSegreen, so instead of creating a dedicatedgym inside the campus, we are trying todraw up an agreement with them foremployees of the business park. Thesekinds of approaches help the companiesthere attract talented people and extend theethos of creating quality moments in everypart of the working day for the tenants. The5-Star Services programme is part of thisconcept.

RE: AT THE BEGINNING OF NOVEMBER AKEY EVENT FOCUSSING ON THE SEGREENSCHEME WILL BE HELD– WHAT WILL THISDAY BE ABOUT?ARF: Since starting work on the project, wemanaged to establish excellent relationswith the local borough of Segrate. Itcomprises a really proactive council, whichis very keen on attracting major businessesto the area. Up until now, companies likeIBM, 3M, Microsoft and Mondadori, to namebut a few, have chosen this area for their

the cover

and Belgium. The majority of these prop-erties are offices, and we focus mainly ontheir development or redevelopment toprovide tenants with a modern andsustainable space. It was not in all theschemes the scope at the beginning butbecame a key characteristic during theirconstruction and / or refurbishment. InEurope, we currently manage 18 buildingsfor a total of ca. 311,000 sqm whichobtained or are going to obtain a greencertification (BREEAM, HQE, LEED andBBC) for the conception, design andconstruction phases. We have also startedobtaining BREEAM In-Use certificate forolder properties in the fund – currently 5buildings for a total of ca. 95,000sqm -which have been refurbished: for exampleproject Newest in Milan is the first build-ing in Italy to have obtained the BREEAMIn-Use certification and one of the firstwith a “Very Good” rating in Europe. It’snot only a marketing issue, or even aboutdelivering buildings just to obtain certifi-cation; we are committed to a greenapproach after construction – togetherwith the tenants and property managers –in order to maintain low levels ofconsumption and of carbon generation.

RE: CAN YOU TALK ABOUT THE SPECIFICQUALITIES WHICH ARE GOING TO MAKESEGREEN BUSINESS PARK SUSTAINABLE?ARF: The building is going to be Class A interms of energy consumption; while thepre-certification obtained was LEED Gold,we are hoping that this might be raised toPlatinum without excessive extra costs.We tried to optimise the temperature byusing shading to reduce the solar gain,while not impacting on the building’s fabricin the winter season. The mechanicalsystem is a 4 pipe fan coil unit with fresh airsupply from a centralised air handling unit.The system maximises the flexibility andcontrol users have over the internal condi-tions of the spaces. Hot and chilled waterwill be provided at the same time by bore-hole water/air condensate heat pumps. Theacoustic and thermal performances of thefacades have been studied to maximise thewellness and comfort of the future tenant.We are working to cover all of the externalparking spaces with photovoltaic panels,which will allow us to achieve Class A certi-fication and also reduce the cost of energyconsumption by generating some power.We are totally committed to helping thetenants be sustainable during the life of the

>>>Modern, greenand transparent

REurope Number 69 - October 2010 1918 REurope Number 69 - October 2010

Segreen Business Park

Amadeo59

building, so we have some tools such as ourGreen Building Guide which is distributed tothe occupiers of our buildings, to increasetheir awareness of how to use the building ina green way. We also have a green commit-tee which comprises a representative fromeach company that will occupy the space, aproperty manager and a CBRE Investorsdelegate, to discuss how to minimiseconsumption and to maximise the quality ofthe tenancies. Furthermore, we are installinga software terminal in the main lobby whichmonitors consumption on an hourly basis;it’s interactive and useful as it allows thetenants to see, in real time, how much ener-gy they are using; this can help them reachtargets for ISO certification or other internalgoals to improve their corporate socialresponsibility.The attention of Segreen Business Park tosustainability will attract and host compa-nies aware and sensitive to environmentalissues, in a virtuous circle of increasingimportance. Together, companies will gener-ate a new community of business andpeople attentive to their human and profes-sional development. A real opportunity andsynergy network.

RE: I KNOW THAT THESE ARE ALSO SOMEOF THE TOOLS THAT YOU’RE DEPLOYING INYOUR OTHER GREEN PROJECTS. CAN YOUTELL US A LITTLE BIT MORE ABOUT CBREINVESTORS’ OTHER SCHEMES IN MILAN?ARF: Sustainability is a must for us and issomething we want to achieve across all ourprojects, so in Milan, as of today, we aredeveloping a number of key green schemes.I would mention in particular our AfforiCentre, which is located north of Milan in thesemi-central area, covers roughly 12,000 sqm of space and has just been delivered. Thisis actually going to be one of the first build-ings in Italy to be LEED certified: we sent allof its credentials to the US Green BuildingCouncil before the summer, and should getthe paperwork through this autumn – it waspre-certified Silver, but we’re hoping for Goldcertification. Another important schemewe’re building at the moment is Amadeo59,on the east part of the city, in a key location.This will be delivered at the beginning ofnext year and represents ca. 11,870 sq m ofoffices; as of today, it has been pre-certifiedLEED Silver. Newest, 11,790 sq m of offices,as Christine mentioned, is the first BREEAMIn-Use certified building in Italy, and one ofthe first with a “Very Good” rating in Europe.

The building has actually been operating forthree years and is 72% occupied; we thinkits a great score for a building which isalready operating and a further demonstra-tion of our strong commitment towards aSustainable Investment Approach.With buildings generating over 40% of theemissions of CO2, we recognise that,through our investment and asset manage-ment activities, we can make a tangibleimpact on improving energy efficiency,reducing greenhouse gas emissions andslowing climate change.

RE: DO YOU FIND IN GENERAL THAT YOURTENANTS ARE READY FOR SUSTAINABILITY,OR ARE YOU STILL HAVING TO HELPIMPROVE THEIR AWARENESS OF ITSIMPORTANCE?CS: All over Europe, we’re seeing a real movetowards sustainability. Tenants are notalways convinced of its significance, butthey have to follow the trend for their share-holders, for their consumers, so they have tooccupy more sustainable properties. There’smore and more demand for recycling, low-emission carbon and the possibility to meas-ure consumption floor by floor, activity byactivity, to make sure that they are in linewith their estimations. It is becoming moreand more a way of life so they like to includein their corporate social responsibilityreports that their offices, for example, aresustainable. Even those who are not totallyconvinced are often impressed when theystart to receive their first invoices for energycosts. Employees also come into the equa-tion; when you want to hire a young staffmember, they’re often even more aware ofgreen issues, and prefer an employer who isgreen-compliant.

RE: ANOTHER HALLMARK OF YOUR BUILD-INGS MANAGEMENT STRATEGY IS YOUR 5-STAR SERVICES INITIATIVE. IS THIS BEINGINTRODUCED AT SEGREEN BUSINESSPARK?CS: Yes. At CB Richard Ellis Investors, webelieve that buildings have to contribute tothe well-being of tenants and visitors. Wetherefore strive to offer more than officebuildings. We strive to provide a pleasantworkplace, especially though, as you werementioning, our signature 5-Star Services™programme. The fact is that inserting a 5-Star Services programme into a buildingcontributes also to a broader philosophy ofenvironmental awareness and affects

behaviours. This programme offers an arrayof lifestyle-enhancing services and ameni-ties to office tenants such as personalconcierge services, fitness centers, child daycare, beauty center and catering. With thesekind of services on site, you can keepemployees in the work place at lunch time;they don’t need to use their car to go to anearby shopping centre, to take their dry-cleaning, etc.; they stay on site and don’tproduce carbon.ARF: For Segreen, we are working on design-ing better services for the tenants; it’s notjust a matter of providing services likerestaurants or a concierge, it’s also aboutlooking at the surrounding amenities andreaching agreements that benefit tenantsand service providers. For example, there’san excellent Sports centre oppositeSegreen, so instead of creating a dedicatedgym inside the campus, we are trying todraw up an agreement with them foremployees of the business park. Thesekinds of approaches help the companiesthere attract talented people and extend theethos of creating quality moments in everypart of the working day for the tenants. The5-Star Services programme is part of thisconcept.

RE: AT THE BEGINNING OF NOVEMBER AKEY EVENT FOCUSSING ON THE SEGREENSCHEME WILL BE HELD– WHAT WILL THISDAY BE ABOUT?ARF: Since starting work on the project, wemanaged to establish excellent relationswith the local borough of Segrate. Itcomprises a really proactive council, whichis very keen on attracting major businessesto the area. Up until now, companies likeIBM, 3M, Microsoft and Mondadori, to namebut a few, have chosen this area for their

the cover

and Belgium. The majority of these prop-erties are offices, and we focus mainly ontheir development or redevelopment toprovide tenants with a modern andsustainable space. It was not in all theschemes the scope at the beginning butbecame a key characteristic during theirconstruction and / or refurbishment. InEurope, we currently manage 18 buildingsfor a total of ca. 311,000 sqm whichobtained or are going to obtain a greencertification (BREEAM, HQE, LEED andBBC) for the conception, design andconstruction phases. We have also startedobtaining BREEAM In-Use certificate forolder properties in the fund – currently 5buildings for a total of ca. 95,000sqm -which have been refurbished: for exampleproject Newest in Milan is the first build-ing in Italy to have obtained the BREEAMIn-Use certification and one of the firstwith a “Very Good” rating in Europe. It’snot only a marketing issue, or even aboutdelivering buildings just to obtain certifi-cation; we are committed to a greenapproach after construction – togetherwith the tenants and property managers –in order to maintain low levels ofconsumption and of carbon generation.

RE: CAN YOU TALK ABOUT THE SPECIFICQUALITIES WHICH ARE GOING TO MAKESEGREEN BUSINESS PARK SUSTAINABLE?ARF: The building is going to be Class A interms of energy consumption; while thepre-certification obtained was LEED Gold,we are hoping that this might be raised toPlatinum without excessive extra costs.We tried to optimise the temperature byusing shading to reduce the solar gain,while not impacting on the building’s fabricin the winter season. The mechanicalsystem is a 4 pipe fan coil unit with fresh airsupply from a centralised air handling unit.The system maximises the flexibility andcontrol users have over the internal condi-tions of the spaces. Hot and chilled waterwill be provided at the same time by bore-hole water/air condensate heat pumps. Theacoustic and thermal performances of thefacades have been studied to maximise thewellness and comfort of the future tenant.We are working to cover all of the externalparking spaces with photovoltaic panels,which will allow us to achieve Class A certi-fication and also reduce the cost of energyconsumption by generating some power.We are totally committed to helping thetenants be sustainable during the life of the

>>>Modern, greenand transparent

REurope Number 69 - October 2010 1918 REurope Number 69 - October 2010

Segreen Business Park

Amadeo59

offices. The council is keen to supportSegreen to help attract further big names.The event (further information onwww.segreen.it), “Work&Life Balance, AtSegrate it’s Real” will give us the chance todemonstrate to companies – both alreadylocated in Segrate and from further afield –how they might help the business park’semployees reconcile private and workinglife, as well as offering better services to thecommunity as a whole. In that sense,thanks to the contribution of representa-tives of public authorities (Comune diSegrate, Regione Lombardia), representa-tives of public transportation companies(e.g. ATM, SEA), director of HumanResources department of multinationalcompanies, we will show how Segrate isimproving, which services Segrate is readyand will provide to companies which work inthat area, also through the example ofSegreen Business Park. The Business Parkwill be an ideal place for companies aware

of the challenges of the future, having aperception of their corporate offices as aplace with an identity in correlation withtheir values.Not only it will be a pleasant place to work,but the area boasts excellent services andlow-cost housing. Better transport connec-tions to Milan will also be developed.We also want to offer something to localpeople, children and adults, so we’ll beshowing them what a building site is likeand how it’s managed and grows, strength-ening the attention on the importance ofsafety and security on a construction site.People are usually told to stay away fromconstruction sites, so we’re trying to organ-ise a tour for families to improve awarenessand prove that if you work with leaders inon-site security, like Bovis Lend Lease, theycan actually be secure places.

RE: THE LAST FEW YEARS HAVE PRESENT-ED MANY CHALLENGES TO REAL ESTATE

INVESTORS. HOW FAR HAS CB RICHARDELLIS INVESTORS BEEN ABLE TO NOT ONLYSURVIVE BUT LEVERAGE THE CRISIS INTHE PAST FEW YEARS?CS: CB Richard Ellis Investors is a fully inde-pendent company, but our shareholdersinclude CBRE, the number one real estateadvisor, so we have a huge background andsecurity in terms of financing. So we werequite protected in terms of capital and at acompany level from the crisis. As managersof funds, we clearly faced some difficultiesin terms of risks, and had to review somebusiness plans concerning our assets. Ithink that our funds today are stabilised; wehave a good view in terms of liquidity andfinancing of finishing the capex programme;we have reviewed all our strategies regard-ing our leasing programme. So now we’remonitoring our funds across ContinentalEurope – which is my remit – quite well. Ofcourse, there are now issues every day on afew assets, from new tenants to client bank-ruptcies, or financing questions – but at aportfolio level we feel that the business isoperating well and has stabilised.

RE: WHAT IS YOUR STRATEGY IN EUROPEAS THE REGION STARTS TO EMERGE FROMRECESSION?CS: I don’t think we can really just speakabout 2011, as a strategy has to be in linewith a three year business plan. We areready to start our investment programmeagain, through individual initiatives via jointventures or separate accounts. We are quitestrong in separate accounts. In the UK only,for example, we manage more than €5bn ofassets through separate accounts, mostlyon behalf of pension funds. We have a goodtrack record. We also have the possibility tocreate and manage funds all over Europe. InItaly for instance, our Italian SGR received

its license in 2007 to develop a businessline in which we take over portfolios that arenot well managed, or create new funds andmanage them on behalf of third parties. Soour fund management concentrates on coreand core plus; I hope that we will be able topersuade clients to return to value-addedvehicles, which is an area that allows us todemonstrate our skills in determining goodproduct. However, it’s too early to say whenthis business area will revive.

RE: YOUR EUROPEAN FUNDS HAVE TYPI-CALLY TARGETED OFFICE, RETAIL, INDUS-TRIAL AND RESIDENTIAL ASSETS. IS THISBALANCE LIKELY TO CHANGE?CS: No, I don’t think so. Just as for individualclients, that want to choose between lowrisk, medium risk and high risk products; sodepending on this profile, we would invest incore products, value-added products, oropportunistic products. So, what we’redoing is develop a spectrum of funds tocover all those risk profiles that are request-ed by our investors. We have an investmentprogramme called Pan European Core (PEC),

which is a new open-ended fund, fully dedi-cated to institutional investors, that investsin core products in major countries inEurope. Institutional investors are keen toinvest in discretionary funds but some of

them ask for a separate account, so we’reproviding this for our clients.

RE: THE INDUSTRY HAS UNDERGONE ANUMBER OF STRUCTURAL CHANGES INRECENT TIMES – DO YOU FORESEE A PERI-OD OF BOOM AHEAD, OR IS CAUTION THEWATCH-WORD FOR INVESTORS MOVINGFORWARDS?CS: Lessons have been learned from therecent ‘deluge’, which was hard for every-body. But I think that we have learned a lotand that the industry is now trying to createnew rules of conduct. We have reinforcedour finance, risk management and humanresources teams in reporting and financing,as we know that when investors come back,they will be keen to have fund managerswho understand the need for transparency.I think that will be one of the new criteria forselecting fund managers in the years tocome.

>>> Modern, green and transparent

the cover

REurope Number 69 - October 2010 2120 REurope Number 69 - October 2010

• Assets under management as of 30th June 2010: €10.85bn• Strong local presence: 7 offices• More than 150 professionals in Europe• Investment process: uses a structural approach in its selections, from preliminaryanalysis, price definition, deal closure and management to sale of asset

• A dedicated team is responsible for the complete performance of the asset during itsentire life

• Global capacity for execution: active asset management through direct support in itslocal markets in all areas of activity

• CBRE platform: able to use and exploit the strengths of CBRE Group to identify invest-ment opportunities

CB RICHARD ELLIS INVESTORS- EUROPE

Affori Centre

Affori Centre

offices. The council is keen to supportSegreen to help attract further big names.The event (further information onwww.segreen.it), “Work&Life Balance, AtSegrate it’s Real” will give us the chance todemonstrate to companies – both alreadylocated in Segrate and from further afield –how they might help the business park’semployees reconcile private and workinglife, as well as offering better services to thecommunity as a whole. In that sense,thanks to the contribution of representa-tives of public authorities (Comune diSegrate, Regione Lombardia), representa-tives of public transportation companies(e.g. ATM, SEA), director of HumanResources department of multinationalcompanies, we will show how Segrate isimproving, which services Segrate is readyand will provide to companies which work inthat area, also through the example ofSegreen Business Park. The Business Parkwill be an ideal place for companies aware

of the challenges of the future, having aperception of their corporate offices as aplace with an identity in correlation withtheir values.Not only it will be a pleasant place to work,but the area boasts excellent services andlow-cost housing. Better transport connec-tions to Milan will also be developed.We also want to offer something to localpeople, children and adults, so we’ll beshowing them what a building site is likeand how it’s managed and grows, strength-ening the attention on the importance ofsafety and security on a construction site.People are usually told to stay away fromconstruction sites, so we’re trying to organ-ise a tour for families to improve awarenessand prove that if you work with leaders inon-site security, like Bovis Lend Lease, theycan actually be secure places.

RE: THE LAST FEW YEARS HAVE PRESENT-ED MANY CHALLENGES TO REAL ESTATE

INVESTORS. HOW FAR HAS CB RICHARDELLIS INVESTORS BEEN ABLE TO NOT ONLYSURVIVE BUT LEVERAGE THE CRISIS INTHE PAST FEW YEARS?CS: CB Richard Ellis Investors is a fully inde-pendent company, but our shareholdersinclude CBRE, the number one real estateadvisor, so we have a huge background andsecurity in terms of financing. So we werequite protected in terms of capital and at acompany level from the crisis. As managersof funds, we clearly faced some difficultiesin terms of risks, and had to review somebusiness plans concerning our assets. Ithink that our funds today are stabilised; wehave a good view in terms of liquidity andfinancing of finishing the capex programme;we have reviewed all our strategies regard-ing our leasing programme. So now we’remonitoring our funds across ContinentalEurope – which is my remit – quite well. Ofcourse, there are now issues every day on afew assets, from new tenants to client bank-ruptcies, or financing questions – but at aportfolio level we feel that the business isoperating well and has stabilised.

RE: WHAT IS YOUR STRATEGY IN EUROPEAS THE REGION STARTS TO EMERGE FROMRECESSION?CS: I don’t think we can really just speakabout 2011, as a strategy has to be in linewith a three year business plan. We areready to start our investment programmeagain, through individual initiatives via jointventures or separate accounts. We are quitestrong in separate accounts. In the UK only,for example, we manage more than €5bn ofassets through separate accounts, mostlyon behalf of pension funds. We have a goodtrack record. We also have the possibility tocreate and manage funds all over Europe. InItaly for instance, our Italian SGR received

its license in 2007 to develop a businessline in which we take over portfolios that arenot well managed, or create new funds andmanage them on behalf of third parties. Soour fund management concentrates on coreand core plus; I hope that we will be able topersuade clients to return to value-addedvehicles, which is an area that allows us todemonstrate our skills in determining goodproduct. However, it’s too early to say whenthis business area will revive.

RE: YOUR EUROPEAN FUNDS HAVE TYPI-CALLY TARGETED OFFICE, RETAIL, INDUS-TRIAL AND RESIDENTIAL ASSETS. IS THISBALANCE LIKELY TO CHANGE?CS: No, I don’t think so. Just as for individualclients, that want to choose between lowrisk, medium risk and high risk products; sodepending on this profile, we would invest incore products, value-added products, oropportunistic products. So, what we’redoing is develop a spectrum of funds tocover all those risk profiles that are request-ed by our investors. We have an investmentprogramme called Pan European Core (PEC),

which is a new open-ended fund, fully dedi-cated to institutional investors, that investsin core products in major countries inEurope. Institutional investors are keen toinvest in discretionary funds but some of

them ask for a separate account, so we’reproviding this for our clients.

RE: THE INDUSTRY HAS UNDERGONE ANUMBER OF STRUCTURAL CHANGES INRECENT TIMES – DO YOU FORESEE A PERI-OD OF BOOM AHEAD, OR IS CAUTION THEWATCH-WORD FOR INVESTORS MOVINGFORWARDS?CS: Lessons have been learned from therecent ‘deluge’, which was hard for every-body. But I think that we have learned a lotand that the industry is now trying to createnew rules of conduct. We have reinforcedour finance, risk management and humanresources teams in reporting and financing,as we know that when investors come back,they will be keen to have fund managerswho understand the need for transparency.I think that will be one of the new criteria forselecting fund managers in the years tocome.

>>> Modern, green and transparent

the cover

REurope Number 69 - October 2010 2120 REurope Number 69 - October 2010

• Assets under management as of 30th June 2010: €10.85bn• Strong local presence: 7 offices• More than 150 professionals in Europe• Investment process: uses a structural approach in its selections, from preliminaryanalysis, price definition, deal closure and management to sale of asset

• A dedicated team is responsible for the complete performance of the asset during itsentire life

• Global capacity for execution: active asset management through direct support in itslocal markets in all areas of activity

• CBRE platform: able to use and exploit the strengths of CBRE Group to identify invest-ment opportunities

CB RICHARD ELLIS INVESTORS- EUROPE

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