Luxembourg Real Estate Investment Conference at Mipim
Luxembourg for Finance organised its third real estate investment vehicle conference at the Mipim trade fair on 9th March. After a brief welcome by Edith Stein of Luxembourg for Finance, Mr Ernst Wilhelm Contzen, president of the Luxembourg Bankers’ Association-ABBL, explained why Luxembourg is attractive to real estate investors and what makes the country competitive.
The success story of the domestic real estate sector started relatively late: the first sky scraper was built in the sixties, ”La tour d’Europe”, and with it the development of real estate began. In the ‘80s and ‘90s the real estate market professionalised. The sector grew incredibly fast and reached the growth rates and the image of other rapidly developing cities.
The future of that industry will mainly depend on the evolution of the financial center. Consolidation will have an impact on the real estate market and any further enlargement of the European Union. Even if previsions are less optimistic than five years ago, the demand for housing remains high in Luxembourg.
The speakers on the panel session presented Luxembourg as a tried and tested domicile. Multiple options are available and 10 or more different vehicles structures allow wide flexibility. The Luxembourg investment fund centre, home to some 60 real estate promoters, is highly regarded and accepted by institutional investors.
Stéphane Haot (KPMG) explained how a client with a relatively small financial base raised liquidity from new institutional investors interested in core assets. Keith O’Donnell (ATOZ) presented the setting up of a Shariah compliant investment fund, while Mr Rodrigo Delcourt (Linklaters) exposed a case focused on distressed and opportunistic strategies. Over one hundred participants attended the conference. ES