News - Midlands
Commercial Property
Soft Sell
Driven by the public sector, the Midlands beefed up its presence significantly at this month's MIPIM commercial property fair. Insider editor Jim Pendrill joined the throng on the French Riviera to find out why
One of the first things that struck you (apart from thousands of suited men clutching their mobile phones) as you neared the entrance to this year's MIPIM festival in Cannes and its seafront centrepoint, the Palais Des Festivals, was the rather incongruous banner "This Is Manchester" above its main doors.
But to those who are hardened regulars of this international property jamboree, which this year attracted some 15,000 real estate decision makers to the Cxf4te D'Azur, the banner would come as no surprise at all.
For in a quite extraordinary way the event has almost been hijacked by England's North West. More than half the visitors to this year's fair came from the UK, and of that figure it is a fair guesstimate that probably half again came from Liverpool or Manchester.
What does the North West get out of it? And if it is dominated so, why isn't the event held in Blackpool or Morecambe, for goodness sake?
To the uninitiated MIPIM first-timer, as I was this year, these are questions which you quickly start asking yourself. And the answers soon reveal themselves.
Firstly, the North West goes to MIPIM in such force because it wants to put itself firmly on the European map. It has realised that the event - and don't forget there are still 7,000-plus investors from continental Europe here too - is simply invaluable in raising profile, building contacts, and promoting itself to the world stage as a place in which to invest. Oh yes, and if you're going to do all the above, it's far better to do it somewhere where the sun shines.
Sir Michael Lyons, former chief executive of both Nottingham and Birmingham city councils and the man who has shot to public prominence over the past year since the Chancellor, Gordon Brown, asked him to assess the feasibility of moving thousands of civil service jobs out of the South East, was a first-timer himself at this year's fair.
Bumping into him at one of the vast array of fringe events, I asked him for his initial thoughts. Completely unprompted his response was revealing. "You have to say that Manchester walks away with the main prize. They are extremely well prepared and know what they are about here."
Which reminds me about that "This Is Manchester" sign. As it turned out, it was simply draped over the balcony of their marketing suite, which occupied one of the prime positions at the show.
Such a backdrop is important to understand if you look at what the Midlands property industry did this year at MIPIM. Two significant things happened. Firstly, the West Midlands region as a whole (as opposed to hanging on the coat-tails of a Birmingham stand) came together to promote its development potential. Secondly, the East Midlands region actually had a presence at all.
Both initiatives were driven by the region's regional development agencies, Advantage West Midlands (AWM) and the East Midlands Development Agency (EMDA), which simply realised that they could not afford not to have major presences at this year's show. Whether such an investment in terms of flying staff out to France and paying the astronomical fees for a pitch at the fair is good use of taxpayer's money is of course a moot point, particularly when so much of the business will be done with fellow UK property professionals who happen to be in France too. Only in weeks to come when both agencies follow up the raft of exchanges, meetings and liaisons they had during the MIPIM week, will they themselves be able to answer that question.
The question is arguably even more pertinent when you consider who is passing through the stands. As Mike Loftus from Locate In Birmingham admits: "You don't get a lot of end-users here. For us MIPIM is more about positioning Birmingham and the West Midlands as a business destination in the European context. It is a soft sell."
As a result, somewhat inevitably, the region's presence at MIPIM is driven by public sector partners. That said, in the West Midlands case, they relied on private partners to come on board to share the cost. Of the £3250,000 cost of the West Midlands stand and apartment opposite the Palais (which was used for more confidential meetings and private entertaining) roughly £3100,000 came from Advantage West Midlands, £3100,000 from private partners and the remainder from local authorities.
One partner in the West Midlands was law firm Hammonds. Anne O'Meara, head of national real estate, who is based in Birmingham, said the money was well spent. "You have to be here. All my clients are here and as much as anything people have time to talk to you. People come here thinking they want to create business, whether it be wanting to get a deal off the ground or just to get fresh ideas. Added to that is the fact that MIPIM itself gets more and more sophisticated each year."
But just how does a region like the West Midlands position itself at MIPIM then? As previously mentioned, until now it has very much focused on pushing Birmingham and little else. This year, the branding of Birmingham was conspicuous by its absence from the West Midlands stand. Although the stand did promote a range of schemes across the city it also made great play of schemes outside the city such as the new Coventry Arena and the host of developments being spawned off the new M6 Toll.
The move, clearly driven by the fact that AWM has to be seen to be promoting the entire West Midlands, didn't go down well with everyone. As Lyons added: "Birmingham isn't visible enough. What is the big brand of the region? It is not West Midlands, it is Birmingham. The point becomes even more relevant when you look at what Manchester does. They have done a good job in telling the story of how they fit in to the North West region. The perception is that Manchester is working and they have kept with a simple message. It is a city which knows where it is going and where it is going to. We have a bit to learn."
Birmingham City Council leader Sir Albert Bore, a great exponent of the idea that only successful cities can drive successful regions, was probably far from nonplussed either. However, to play down the issue in public, during a main presentation on the West Midlands stand he stressed that the notion that Birmingham is the capital of the West Midlands is now understood in other countries. Still, nothing wrong with ramming the point home, I would have thought.
In the event, the main West Midlands presentation of the week was used to plug two major new schemes in the region, the redevelopment of Fort Dunlop by Urban Splash and the first stage of the Masshouse scheme by David McLean and Nikal Investments.
Given the points made before, the choice of schemes was ironic on two fronts. Firstly, they were both Birmingham schemes, and secondly they were both being driven by North West developers. The message seemed to be that 'here we are, two North West developers who know the ropes at MIPIM, we know the benefits of promoting these to the wider stage'.
Urban Splash boss Tom Bloxham, who was striking the final deal with AWM chief executive John Edwards over Fort Dunlop during the MIPIM week, said Fort Dunlop was symbolic of "what has not happened in Birmingham and what is wrong with the West Midlands". "This is a building that many, many people have written off. In the property industry a lot of people talk a good story but do not always deliver. You can rest assured that we will deliver with Fort Dunlop." Bloxham's plans are to convert the former tyre factory off the M6 into offices, retail and a hotel. The aim is to complete the scheme by the end of 2005.
Mark McNamee from David McLean was similarly upbeat over its plans for Masshouse, the first stage of the crucial redevelopment of Birmingham's Eastside, which will include 156 apartments and 136,000 sq ft of office space. McLean recently teamed up with Manchester-based Nikal Investments and Royal Bank of Scotland for even greater firepower. "We have invested £355m into this project and we are going to deliver a great scheme for the region," added McNamee.
There was no such private sector input, either in terms of grandstanding to the wider audience or in terms of hard cash, on the East Midlands stand. However, given that this was the first year that the region had ever had a united presence at MIPIM, it was inevitable that it would have to be driven by the public sector, in particular EMDA.
In the event EMDA enlisted 42 "delegates" from 18 organisations such as sub-regional development agencies, developers and law firms to ram home their case. They would like more support from the private sector too. As one delegate, David Williams from Derby law firm Edwards Geldard, remarked: "It is mildly disappointing that there aren't more private sector people from the region here. They clearly struggle to see the benefits but deals do get done here. At the end of the day you have nothing else to do but talk to people. If you just get one deal done it is good reason for coming."
Alicia Clyde, location marketing manager for EMDA, said the impetus for a major presence at MIPIM this year particularly came from the aforementioned delegates who said there was an urgent need for a "proper regional presence".
To that end, EMDA asked all key regional property partners to submit them with up-to-date information on major development schemes throughout the region which were then packaged into a document called "Brighter Horizons".
Prominent in the document were masterplans that have been recently launched for Corby, Derby, Leicester, Lincoln and Nottingham.
Clyde said: "If you take the East Midlands region as a whole we do not have one particular thing that stands out. But if you put together, say, our five big schemes and the other things we can offer such as quality of life and the sheer diversity of the region, then you really have something to shout about."
Contrary to the views of some, Clyde also believes that the inward investment market is still alive and well for British towns and cities despite the threats from both the Far East and Eastern Europe in both the manufacturing and service sectors.
And that means that there is plenty to go at when it comes to wooing the MIPIM crowd. "Inward investment into the East Midlands is far from dead. Just look at the success of someone like Toyota in Derby. They manufacture and design cars in the UK and then export back to Japan," she added
The actual process of showcasing the East Midlands for MIPIM has also had other untold benefits for EMDA.
"Preparing for the fair has actually been a driver in helping us get key public and private players in the East Midlands together," added Clyde. "It's as if there is never any time back home to achieve this."
And then there are the benefits when you arrive. "Everyone thinks MIPIM is a big jolly but when you come here you realise it is far, far more than that. The sheer quality of people here and the fact that you get decision-makers coming up and talking to you is invaluable."
In this its first year EMDA built its presence around its stand and then an evening cocktail party, eschewing grander options such as hiring a yacht (as most cities do) upon which to ply guests with champagne or hosting a full-blown evening dinner. The same night of the EMDA cocktail party the North West property elite was hosting its own evening dinner in the same hotel. Clyde added: "We have to be careful about how we justify the cost of what we are doing."
And so, as both AWM and EMDA go away and count their business cards, what can we expect from them at MIPIM next year? What's clear is that both are sure to build on their profiles of this year, and if they can put political sensibilities to one side, the two agencies may even work closer together in 12 months time.
They are already working very closely on trade missions and setting up joint offices across the globe, so some kind of link-up at MIPIM would make perfect sense, perhaps even having neighbouring stands (an idea mooted by many this year) rather than stands on different floors of the Palais.
One could even argue that when it comes to selling the Midlands region to the outside world such a link-up should be obligatory. But given that nothing is ever quite that simple in the public sector, the true extent of their future collaboration remains to be seen
For the fuller picture,
subscribe to Insider
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Driven by the public sector, the Midlands beefed up its presence significantly at this month's MIPIM commercial property fair. Insider editor Jim Pendrill joined the throng on the French Riviera to find out why
One of the first things that struck you (apart from thousands of suited men clutching their mobile phones) as you neared the entrance to this year's MIPIM festival in Cannes and its seafront centrepoint, the Palais Des Festivals, was the rather incongruous banner "This Is Manchester" above its main doors.
But to those who are hardened regulars of this international property jamboree, which this year attracted some 15,000 real estate decision makers to the Cxf4te D'Azur, the banner would come as no surprise at all.
For in a quite extraordinary way the event has almost been hijacked by England's North West. More than half the visitors to this year's fair came from the UK, and of that figure it is a fair guesstimate that probably half again came from Liverpool or Manchester.
What does the North West get out of it? And if it is dominated so, why isn't the event held in Blackpool or Morecambe, for goodness sake?
To the uninitiated MIPIM first-timer, as I was this year, these are questions which you quickly start asking yourself. And the answers soon reveal themselves.
Firstly, the North West goes to MIPIM in such force because it wants to put itself firmly on the European map. It has realised that the event - and don't forget there are still 7,000-plus investors from continental Europe here too - is simply invaluable in raising profile, building contacts, and promoting itself to the world stage as a place in which to invest. Oh yes, and if you're going to do all the above, it's far better to do it somewhere where the sun shines.
Sir Michael Lyons, former chief executive of both Nottingham and Birmingham city councils and the man who has shot to public prominence over the past year since the Chancellor, Gordon Brown, asked him to assess the feasibility of moving thousands of civil service jobs out of the South East, was a first-timer himself at this year's fair.
Bumping into him at one of the vast array of fringe events, I asked him for his initial thoughts. Completely unprompted his response was revealing. "You have to say that Manchester walks away with the main prize. They are extremely well prepared and know what they are about here."
Which reminds me about that "This Is Manchester" sign. As it turned out, it was simply draped over the balcony of their marketing suite, which occupied one of the prime positions at the show.
Such a backdrop is important to understand if you look at what the Midlands property industry did this year at MIPIM. Two significant things happened. Firstly, the West Midlands region as a whole (as opposed to hanging on the coat-tails of a Birmingham stand) came together to promote its development potential. Secondly, the East Midlands region actually had a presence at all.
Both initiatives were driven by the region's regional development agencies, Advantage West Midlands (AWM) and the East Midlands Development Agency (EMDA), which simply realised that they could not afford not to have major presences at this year's show. Whether such an investment in terms of flying staff out to France and paying the astronomical fees for a pitch at the fair is good use of taxpayer's money is of course a moot point, particularly when so much of the business will be done with fellow UK property professionals who happen to be in France too. Only in weeks to come when both agencies follow up the raft of exchanges, meetings and liaisons they had during the MIPIM week, will they themselves be able to answer that question.
The question is arguably even more pertinent when you consider who is passing through the stands. As Mike Loftus from Locate In Birmingham admits: "You don't get a lot of end-users here. For us MIPIM is more about positioning Birmingham and the West Midlands as a business destination in the European context. It is a soft sell."
As a result, somewhat inevitably, the region's presence at MIPIM is driven by public sector partners. That said, in the West Midlands case, they relied on private partners to come on board to share the cost. Of the £3250,000 cost of the West Midlands stand and apartment opposite the Palais (which was used for more confidential meetings and private entertaining) roughly £3100,000 came from Advantage West Midlands, £3100,000 from private partners and the remainder from local authorities.
One partner in the West Midlands was law firm Hammonds. Anne O'Meara, head of national real estate, who is based in Birmingham, said the money was well spent. "You have to be here. All my clients are here and as much as anything people have time to talk to you. People come here thinking they want to create business, whether it be wanting to get a deal off the ground or just to get fresh ideas. Added to that is the fact that MIPIM itself gets more and more sophisticated each year."
But just how does a region like the West Midlands position itself at MIPIM then? As previously mentioned, until now it has very much focused on pushing Birmingham and little else. This year, the branding of Birmingham was conspicuous by its absence from the West Midlands stand. Although the stand did promote a range of schemes across the city it also made great play of schemes outside the city such as the new Coventry Arena and the host of developments being spawned off the new M6 Toll.
The move, clearly driven by the fact that AWM has to be seen to be promoting the entire West Midlands, didn't go down well with everyone. As Lyons added: "Birmingham isn't visible enough. What is the big brand of the region? It is not West Midlands, it is Birmingham. The point becomes even more relevant when you look at what Manchester does. They have done a good job in telling the story of how they fit in to the North West region. The perception is that Manchester is working and they have kept with a simple message. It is a city which knows where it is going and where it is going to. We have a bit to learn."
Birmingham City Council leader Sir Albert Bore, a great exponent of the idea that only successful cities can drive successful regions, was probably far from nonplussed either. However, to play down the issue in public, during a main presentation on the West Midlands stand he stressed that the notion that Birmingham is the capital of the West Midlands is now understood in other countries. Still, nothing wrong with ramming the point home, I would have thought.
In the event, the main West Midlands presentation of the week was used to plug two major new schemes in the region, the redevelopment of Fort Dunlop by Urban Splash and the first stage of the Masshouse scheme by David McLean and Nikal Investments.
Given the points made before, the choice of schemes was ironic on two fronts. Firstly, they were both Birmingham schemes, and secondly they were both being driven by North West developers. The message seemed to be that 'here we are, two North West developers who know the ropes at MIPIM, we know the benefits of promoting these to the wider stage'.
Urban Splash boss Tom Bloxham, who was striking the final deal with AWM chief executive John Edwards over Fort Dunlop during the MIPIM week, said Fort Dunlop was symbolic of "what has not happened in Birmingham and what is wrong with the West Midlands". "This is a building that many, many people have written off. In the property industry a lot of people talk a good story but do not always deliver. You can rest assured that we will deliver with Fort Dunlop." Bloxham's plans are to convert the former tyre factory off the M6 into offices, retail and a hotel. The aim is to complete the scheme by the end of 2005.
Mark McNamee from David McLean was similarly upbeat over its plans for Masshouse, the first stage of the crucial redevelopment of Birmingham's Eastside, which will include 156 apartments and 136,000 sq ft of office space. McLean recently teamed up with Manchester-based Nikal Investments and Royal Bank of Scotland for even greater firepower. "We have invested £355m into this project and we are going to deliver a great scheme for the region," added McNamee.
There was no such private sector input, either in terms of grandstanding to the wider audience or in terms of hard cash, on the East Midlands stand. However, given that this was the first year that the region had ever had a united presence at MIPIM, it was inevitable that it would have to be driven by the public sector, in particular EMDA.
In the event EMDA enlisted 42 "delegates" from 18 organisations such as sub-regional development agencies, developers and law firms to ram home their case. They would like more support from the private sector too. As one delegate, David Williams from Derby law firm Edwards Geldard, remarked: "It is mildly disappointing that there aren't more private sector people from the region here. They clearly struggle to see the benefits but deals do get done here. At the end of the day you have nothing else to do but talk to people. If you just get one deal done it is good reason for coming."
Alicia Clyde, location marketing manager for EMDA, said the impetus for a major presence at MIPIM this year particularly came from the aforementioned delegates who said there was an urgent need for a "proper regional presence".
To that end, EMDA asked all key regional property partners to submit them with up-to-date information on major development schemes throughout the region which were then packaged into a document called "Brighter Horizons".
Prominent in the document were masterplans that have been recently launched for Corby, Derby, Leicester, Lincoln and Nottingham.
Clyde said: "If you take the East Midlands region as a whole we do not have one particular thing that stands out. But if you put together, say, our five big schemes and the other things we can offer such as quality of life and the sheer diversity of the region, then you really have something to shout about."
Contrary to the views of some, Clyde also believes that the inward investment market is still alive and well for British towns and cities despite the threats from both the Far East and Eastern Europe in both the manufacturing and service sectors.
And that means that there is plenty to go at when it comes to wooing the MIPIM crowd. "Inward investment into the East Midlands is far from dead. Just look at the success of someone like Toyota in Derby. They manufacture and design cars in the UK and then export back to Japan," she added
The actual process of showcasing the East Midlands for MIPIM has also had other untold benefits for EMDA.
"Preparing for the fair has actually been a driver in helping us get key public and private players in the East Midlands together," added Clyde. "It's as if there is never any time back home to achieve this."
And then there are the benefits when you arrive. "Everyone thinks MIPIM is a big jolly but when you come here you realise it is far, far more than that. The sheer quality of people here and the fact that you get decision-makers coming up and talking to you is invaluable."
In this its first year EMDA built its presence around its stand and then an evening cocktail party, eschewing grander options such as hiring a yacht (as most cities do) upon which to ply guests with champagne or hosting a full-blown evening dinner. The same night of the EMDA cocktail party the North West property elite was hosting its own evening dinner in the same hotel. Clyde added: "We have to be careful about how we justify the cost of what we are doing."
And so, as both AWM and EMDA go away and count their business cards, what can we expect from them at MIPIM next year? What's clear is that both are sure to build on their profiles of this year, and if they can put political sensibilities to one side, the two agencies may even work closer together in 12 months time.
They are already working very closely on trade missions and setting up joint offices across the globe, so some kind of link-up at MIPIM would make perfect sense, perhaps even having neighbouring stands (an idea mooted by many this year) rather than stands on different floors of the Palais.
One could even argue that when it comes to selling the Midlands region to the outside world such a link-up should be obligatory. But given that nothing is ever quite that simple in the public sector, the true extent of their future collaboration remains to be seen
For the fuller picture,
subscribe to Insider
every month.