March 9, 2012
The success of Germany, MIPIM's 2012 Country of Honour, assessed by last year's laureate, the UK.
On the last day of MIPIM, the time has come to sum up. Yesterday, we were lucky enough to hear from our former Minister for Foreign Affairs, Joschka Fischer, and the range of other events throughout the day was excellent.
Any analysis of how Germany did as the Country of Honour should be done through taking a foreigner’s view of Germany. And who could be more adequate for this than a colleague from the UK, last year’s Country of Honour.
“The recent fundamental shift of economic fortunes in Europe has propelled Germany into the leading position in Europe, promoting German property as every investor’s darling”, says Mike Sales, Chief Investment Officer of Henderson Global Investors.
He explains a bit about some different approaches:
“We like to think that we Brits bring something to the German property market; maybe we deserve some credit – our emphasis on market transparency and independent research has been a useful addition. But much more interesting for us is what we’ve been able to learn from the distinctively German approach to property. During the financial crisis we experienced the flipside of our pro-cyclical mark-to-market valuation system, as we had to watch the highly inflated UK commercial property market collapsing by about 45 %. We were looking with some envy at Germany, where the more long-term view on property was keeping the crash in proportion and allowing German investors to do what we Brits usually pride ourselves for: keep calm and carry on.”
Looking to the future of Henderson’s investment strategy, Mike Sales should be renamed Mike Purchases. “Currently we favour the German retail warehouse market. We think the sector is ideal to deliver stable income returns in traditional German style. We are very proud that it is all German investors who have entrusted us with their capital to invest €350m in their domestic market over the next 18 months.”
Sounds good and promising, doesn’t it?