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FOCUS ON INVESTMENT OF REAL ESTATE André DELPONT Expert Consultant, Bordeaux Euratlantique André Delpont worked for the development of the Lille area, especially for the Euralille project where he joined the construction of a high speed train hub. He joined Bordeaux to launch a similar project, as deputy general manager of the Communauté Urbaine de Bordeaux, and he is now in charge of the Bordeaux Euratlantique project.
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Operation of National Importance
Vinexpo 2014 Hong Kong 2014-05-27
INVEST IN BORDEAUX REAL ESTATE
THE NEW CENTRAL BUSINESS DISTRICT
AROUND THE HIGH-SPEED TRAIN STATION
Who we are :Bordeaux Euratlantique is both the name of:
- The « OPERATION OF NATIONAL IMPORTANCE » Bordeaux EuratlantiqueA project: this is an important economic and urban project recognised and supported by the State ; there are 15 such projects in France.- The PUBLIC DEVELOPMENT AGENCY Bordeaux Euratlantique An agency: this provides the structure and the team responsible for carrying out the ‘Operation of National Importance’ project : it associates the State with the local authorities involved (the towns of Bordeaux, Bègles, Floirac, the Urban Community of Bordeaux, the Regional Council.
- Organization and investments : similar to a private business
A protocol and a business plan, sharing risks and contributionsA master plan with input from local authorities, private operators and the population
- A financial lever 800 M € of investment from the Public Development Agency Bx Euratlantique• 700 M € revenue from the developer• 100 M € public participation 5 billion € of public and private investment
Contents - 1. France and Bordeaux property market- 2. Bordeaux assets- 3. Bordeaux Euratlantique CBD project
Bordeaux & the river Garonne: birdview on the high speed train station
1. France and Bordeaux property markets
The « Prelude » Euratlantique office building was the first one to be delivered in september 2013
1.1 French market : Paris compared to regions
Source : IPD 2012
Paris
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Capital yield (%) Rental yield (%)
2520151050-5-10
12
10
8
6
4
2
0
ParisRégions Régions
Regions present a more stable total return
A variability 35 % lower than the Paris one An average yield of 200 bps above Paris one
1.2 Bordeaux market: assets & investments 2013
Source : OIEB 2013
Investments 220 Millions € in 2013(275 Millions € in 2012)
Profile of Investments by assets
47% Shops
16% Logistic & plants
37 %Bureaux
New offices 6,40 % - 7,00 %
Second hand offices 7,50 % - 9,00 %
Logistic 7,50 % - 10,00 %
Plants 8,50 % - 10,50 %
Yelds
1.3 Bordeaux office market: regularity
Source : OIEB 2014
100 440sqm83 500 sqm
83500sqm 85 380 sqm87 250 sqm 86 940 sqm
Number of transactions 2013 = 201 2008 2009 2010 2011 2012 2013
Evolution of the transactions volume since 2008
158146
131
137125
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
9
93
117106 111
127
New
Second hand
Evolution of the level of rent € /m²/an (excluding utilities, excluding VAT)
93
108
144 New (Suburbs)
99
171 New (city centre) 180 Prime
135 2nd hand (centre)
118 2nd hand (suburbs)
1.4 Bordeaux market: profile of final users
Volume of transactions 2009-2010-2011 (sqm)
Source : A’Urba / Bordeaux Euratlantique
Public administrations 45 800 sqm / 17%
Call centers 2 300 sqm/1%
Training10 800 sqm/4%
Real Estate/Building 18 600 sqm: 7%
Legal & finance42 300 sqm/ 16%BtoB Services
59 500 sqm²/ 22%
Personnal services 31 900 sq m/ 12%
IT29 300 m²/ 11%
Small business4 000 sqm/2%
Others9 180 m²/ 3%
Unidentified13 100 m²/5%
Main users : B to B services + Legal & Finance = 38%Growing importance of the IT sector = 11%
Welcoming the wine spectators with the Cité des civilisations du vin : opening in 2016
2. Bordeaux assets
2.1 Bordeaux a new rail hub 2017-2030
2017Bordeaux-Paris
2 hours
2030Bordeaux-Bilbao(Spain)
2 hours
2024Bordeaux -Toulouse
1 hour
2.2 Growth: Bordeaux region, a booming area 2014: - Bordeaux metropolitan area: 1.1 million inhabitants less than 50 km from Bordeaux- Bordeaux urban area : 380 000 jobs2030: - Bordeaux metropolitan area: + 300 000 inhabitants - Bordeaux urban area + 75 000 jobs
Average annual growth rate by region (2007 - 2040)
Bordeaux region (Aquitaine) at the heart of the French population growth curveBordeaux urban area : + 10 000 inhabitants per year
Population
Gross domestic product
Bordeaux
Paris
Bordeaux
Paris
Average annual growth rate by region (2000 - 2007)
Bordeaux region (Aquitaine) :- ranked 5 in France for growth - 4,5% of the national GDP
2.3 Bordeaux appealBordeaux draws & welcomes the young urban professionals
Good spots in Lacanau 50 km from Bordeaux
→ Bordeaux is the second favourite town of the French, behind Paris,from amongst the 10 main metropolitan areas, with a percentage of 37%(BVA poll – sample of around 6,500 people – April 2013)→ Bordeaux Metropolitan area judged the 2nd most attractive in Franceby young executives and young graduates (52% - Source APEC 2011)
2.4 The major economic clusters of the Bordeaux area
BORDEAUX EURATLANTIQUEUpper services-sectorDigital and ICT
Chemical activities
Port and logistics
Lasers
Campus
Aerospace and defense Tourism
Green tech
1. Opening up an area on the edge of Europe : High-Speed Train, plane, and very high-speed internet access2. Maintaining the appeal which comes from its living environment : offering an example of sustainable development3. Enhancing the main economic assets: innovation, aerospace, services-sector ( wine represents 15% of the economic activity)
2.5 Bordeaux ambition: the european metropolisThe development priorities for the Bordeaux metropolitan area
The new high speed train station in 2017
3.Bordeaux Euratlantique CBD Project
Overview of the project on both sides of the river Garonne Forefront: the future new bridge. Background: city centre
ENHANCING THE HIGH-SPEED RAIL HUB: 20 million passengers1. Developing the activities of a European metropolis, decision, innovation and exchange : a
European business area and 25 000 top level city jobs (33% of jobs - half from the growth of companies already present and half from attracting companies from outside the area)
2. Welcoming 8% of the new population, 25 000 inhabitants3. Becoming an exemplary urban site for sustainable development : the French « Eco-city »
label
3.1 Bordeaux Euratlantique project : the aim
Green areas, shops, offices and housing between the station and the river
3.2 Bordeaux Euratlantique CBD locationInterconnection train, bustramway, car, bike and boat
District builded around the train hub and along the river on 738 ha
2 new bridges- one across the river- one across the tracks
10 minutes by tramway from the city centre
2 km far from the ring highway
30 to 45 minutes from the airport
A mixed-use programme of 2.4 million sqm :
1 200 000 sqm of housing units,
450 000 sqm of office space,
(300 000 in St-Jean Belcier)
50 000 sqm of hotels + para-hotels
80 000 sqm of residential units
(elderly, students, artists…)
150 000 sqm of business premises
170 000 sqm of public amenities
300 000 sqm not yet allocated
50 hectares of new green space
3.3 Bordeaux Euratlantique : a programme
Map of the project : office buildings (blue) mixed used office-housing buildings (purple) and green areas
Weight forecast of the project on the metropolitan marketOffice park: 12 to 15% of the overall park by 2030Annual volume of transactions: 25 % (from 2017)
Profile of the final usersBanks, accountants, energy companies, wine traders, building companiesStart-up, telecommunications & IT businessesOver 105 000 sqm delivered between 2017 and 2019, 50 000 sqm have yet found final users
3.4 Focusing on office space : the new CBD
CEAPC bank HQ along the river Office building project at the station Eiffage mix used project
Two flagship office buildings
- The World Trade Center: all the international adresses and services under one roof
- « La Cité numérique »: (« the digital city »): an old sorting office is being refurbished in order to set up start up and to become the heart of the greater Bordeaux IT cluster
20
June 2014: First building permits grantedFirst construction in the Urban
Development Zone
irst projects delivered2016: . MECA (Cultural centre), . Caisse D’Epargne (bank HQ), . Wooden-framed office blocks)
. Cité numérique (« digital city »)2017-2018 :. Completion of the High-Speed Train Line Paris Bordeaux. New station, . New bridges. World Trade Center
3.5 Schedule for the Urban Development Area
To sum up: The 8 reasons for choosing Bordeaux Euratlantique,
1. MOBILITY: all methods of transport2. MARKETS: a growing economy3. AMBITION: to become a competitive European metropolis4. APPEAL: a way of life for the new generation5. A "BUSINESS FRIENDLY" ECOSYSTEM: an international dimension6. AN INNOVATIVE DISTRICT: "Talents, tolerance, technology"7. PUBLIC/PRIVATE INTER-CONNEXION: easy access to local players8. An excellent QUALITY/PRICE ratio
View point on the city centre - 2020
« Building a work place wich engages a diversity of employees and bring out their best, makes a far greater contribution than financial success alone »
Mitch KaporFounder of Lotus development corp.
