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10 // iberian.propery / 2017
events// ISSUE: TOP IBERIAN cities
Electric vehicle transformation!
Regarding the impact of newtechnologies in real estate,WilliamWheaton,
professor at MIT, highlighted the technology trends thatwill have an impact
on our cities and on thewaywe live in community. The vehicle and electric
mobilitywill change
«our buildings and cities, in awaywe can’t foresee»
, stated
Wheaton. The realityof electricvehicleswill have a huge impact, should take
10 years to represent the majority of sold cars and a very important share
of car traffic.
«Electric cars are cheaper to operate, have lower maintenance
costs, don’t have battery problems, and will be cheaper to build!»
In a statement with same controversy, and more in the USA reality, the
electric vehicles will expand the suburban limits. Whenever the cost per
Km has reduced, our cities became wider. If we also consider the auton-
omous driving ability, the travel time will be less critical!
E-Commerce impact
Digital transformationwas approached, both byWilliamWheaton and by
Salim Ismail, Executive Director at Singularity University. Electronic com-
merce grows two digits for 10 years, alongsidewith an anemic or negative
growth of the non-food retail. The price benefit of electronic commerce
is huge... In an analysis of Salim Ismail, while a Department Store has a
cost of more than 20c$ for every dollar of sales, Amazon spends 7c$ for
every dollar of sales (in infrastructures, without the cost of the product
sold and last-mile delivery).
This meanswe have
«a tremendous overcapacity of retail sale, mainly non-
food»
, which will reflect in an industry reconfiguration. Shopping centers
are, currently, places for entertainment and products exhibition, instead
of transaction places. Salim demonstrates with the fact that many stores
are now show rooms, and many of the online sales are made with an
assisted help on stores.
“Re-Think”
Conference left many future trends and plenty food for thought,
for a future that’s happening today!
New rules for insurance companies anticipate an
increase on investment flows
Changes among capital requirement rules of UE for insurance
companies, in order to the listed real estate to be considered as
a direct real estate investment, may lead to a significant increase
of institutional capital investment flows.
Who said it was Dominique Moerenhout, CEO at EPRA, during the
Conference, and according to whom
«one of the biggest obstacles
to European insurers investing in listed real estate companies is the
heavy capital weightings imposed by Solvency II. EPRA is strongly
petitioning the European Commission to cut this»
. He also explains
that
«Solvency II deters insurance investors from a key source of
quality assets and management, liquidity and transparency for their
real estate portfolios. If insurers are able to appropriately weight
listed real estate in their investment asset allocations, we believe the
market capitalization of the sector in Europe could possibly double».
106 companies integrate EPRA Best Pratices
Recomendations
For the first time, a total of 106 companies integrate EPRA Best
Practices Recommendations (BPR), the industry-leading standard
for disclosure and transparency in financial reporting.
Dominique Moerenhout referred that
«in 2017 we exceeded our
expectations. This year, 75% of the companies included in this survey
won an award, setting a new record of 106 companies integrated in
EPRA BPR»
. These awards are assigned by Deloitted, based upon
the companies’ annual reports. There are analyzed components
such as Earnings Per Share (EPS), Net Asset Value (NAV), or NNNAV
(triple net asset value).