Nordicum - Real Estate Annual Finland 2020 | Page 51

RE FINLAND 2019 took the pulse of the real estate industry
Mika Anttonen, founder and owner of energy company ST1 on stage.
Winston Churchill wasn’t known as a big real estate guy, but he did say something significant on the topic: “We shape
our buildings and afterwards our buildings shape us.” RE FINLAND 2019, held in Tampere in November, showcased
this shining piece of wisdom as well as many others. The biggest annual event for the Finnish real estate business did not
disappoint, serving up a range of interesting topics from investment and financing to construction and services.
I
an Goldin, Oxford University Profes-
sor of Globalization and Development,
was perhaps the most esteemed speaker
of the one-and-a-half-day seminar. Having
served as Economic Advisor to President
Nelson Mandela, Goldin knows a thing or
two about disruption and the virtue of good
timing. We’re living amidst immense change
which is also extremely inspiring, he said.
”People are sharing ideas and chang-
ing the world in unprecedented ways,” Gol-
din said, adding that he remains an optimist
about the future – even as there are a lot of
challenges we must face.
Beware the Regulator?
Jeff Rupp from INREV talked about how
can the real estate industry prepare for
changing EU regulations. Rupp observed
that no major regulatory risks are present
right now as e.g. Solvency II and AIFMD
will impact the industry in a moderate way
and no new burdens for real estate industry
are expected.
Still, Rupp cautioned against “the
Black Swan”: there are risks out there rang-
ing from a heightened or on-going military
conflict in the Middle East to an escalated
trade war between US and China as well as
mass immigration flows.
“Pressures with more direct economic
and regulatory and tax policy implications
include outcome of US election in Novem-
ber 2020 and the German and European
political cohesion post-Merkel,” he listed.
Nordics Rising
Simon Mallinson from RCA discussed
global, European and Nordic Capital Trends.
According to Mallinson, European invest-
ment activity is slowing, but pockets of
growth can yet be found. As ever, inves-
tors are seeking new markets and sectors to
deliver returns.
“Nordic markets are gaining market
share as Stockholm, for example, is setting
new records,” he said, noting that Finland
is the Nordic country most open to cross-
border capital.
“Markets are very liquidity, yields are
at lowest levels – this brings an exit risk
investors must evaluate,” he summed up.
Real Estate – Villain or Hero?
Simon Durkin from BlackRock highlighted
three themes in his presentation. First of all,
there is increased competition for assets in
global real estate. Second, the capital flows
are increasingly international.
“In the current situation, building port-
folio resilience is very important,” he said.
This is achieved via securing cashflow,
aligning to long-term, structural trends and
integrating sustainability into operations.
“Sustainability is no longer optional,”
he pointed out.
Nordicum 51
Embrace the Change