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Property Commentary -
Unlocking MIPIM 2024: Conversations from Cannes
In March, the annual MIPIM conference in Cannes brought together industry leaders from across the globe. Representing Arbuthnot Latham, two real estate finance experts, Gary Moore and Justin Snoxell, were among them. This article provides insights from their experiences at the conference, shedding light on noteworthy client conversations.
1. If our clients are there, we are there
“As a relationship-led bank, face-to-face time with clients and industry leaders is vital. It is one of the best ways to keep our finger on the pulse and share how we make real estate deals happen. Returning to MIPIM post-Covid felt like a reunion, marking our first time back since the pandemic. We packed our schedule with meetings with clients and property professionals,” Justin shares.
Gary added that this year, the conference environment was more conducive to meaningful conversations, “With fewer large-scale events, we had more opportunity for quality discussions. For example, we hosted a successful lunch, bringing together existing clients, new prospects, and property professionals. This event led to additional meetings with property investors showing interest in Arbuthnot Latham’s offering.”
2. An increased appetite for buying
Justin notes a noticeable shift in investment appetites towards acquisitions, indicating a resurgence in buying. Conversations echoed this sentiment, with many holding a bullish outlook on opportunities, particularly in sought-after locations like London, Manchester, and Leeds.
“The past few years have seen a swirl of activity around refinancing existing debt, but many of our conversations in Cannes were about acquisitions. The appetite for buying is returning, and we have heard from plenty of people looking for opportunities to secure good quality properties.”
3. The trend for co-living properties
Gary and Justin found that co-living properties dominated many client conversations.
“Consciously designed co-living for the busy professional tenant was the talk of the town,” Justin shared. “Similar to HMOs, in that occupants share communal spaces, co-living property owners are likely to spend more to create living environments tailored to tenants who are more conscious of their surroundings and value community interaction and social connectivity with like-minded individuals.”
Gary commented, “That resonates with what we heard on the ground.” He added, “We provided insight into this sector of the real estate market a few years ago with our article ‘Co-Living, an alternative investment in the property sector,’ and we look forward to discussing this space further with our clients throughout the year.”
4. Basel 3.1
“There were a few discussions at MIPIM regarding Basel 3.1 regulations,” noted Gary. “Although not the most enticing topic, these regulations regarding credit risk and portfolio balancing hold significant importance. Those who raised the subject acknowledged the necessity for lenders and property entrepreneurs to understand the implications,” he added.
Justin underscored the importance of proactive planning for these implications. “We are mindful of upcoming regulatory changes, including Basel 3.1, and their potential impact on our clients' businesses. We welcome our clients and valued broker partners to chat with our commercial bankers about Basel 3.1 and its implications as we approach 2025.”
Which real estate events should we join next?
We are committed to making meaningful connections with our clients. Please get in touch with us if you are attending other real estate events and think we should be there.
Contact your dedicated commercial banker or email us at ALREFenquiries@arbuthnot.co.uk.
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