Contents 0 D 6 3 T R A SFOR M A TIO N E G R EE SP E C I A L N 10 25 54 4 4 8 10 16 22 25 28 30 34 38 40 42 48 Cover Story All change: Successfully transforming existing buildings Data analysis: Developing relevant mixed-use concepts Amsterdam: On the path to net zero Union Investment: Transformation on many levels Social sustainability: Investors discover the S in ESG Interview on sustainability: Transformation takes time ESG: Implementation and reporting are only just beginning Urban neighbourhoods: Self-sufficiency with a green energy supply Logistics: New ideas for urban warehouse space Hotel: View from Radisson Blu of the (almost) finished Sagrada Familia Markets Investment climate survey: Real estate industry in flux Real People Austria: New leadership trio at Union Investment in Vienna Portfolio Global investment: Bouncing back Concepts Vertical extension: Potential for densification 54 Building with concrete: Pilot projects to deliver decarbonisation 60 Wide Angle Triangular buildings: Sharp design News Online & service, contact and publishing information In & out 66 53 67 67 The cover image shows the world’s first publicly accessible art storage facility. The Boijmans Van Beuningen depot is located in Museumpark, Rotterdam. It symbolises the city’s transformation. 2 places and spaces 01/2022

Cover story Althanpark development in Vienna (top): The former post office in Vienna’s 9th district has been transformed into a residential building with 237 apartments. Neue Höfe Herne, the former Hertie department store in Herne (bottom), owes its revitalisation to a multifunctional use concept. Real estate in transition 4 places and spaces 01/2022

Cover story “Transforming properties can make a valuable contribution towards enhancing the vitality and attractiveness of individual buildings, neighbourhoods and entire cities.” Henrike Waldburg, Head of Invest- ment Management Global, Union Investment The Neue Höfe Herne development is a prime example of a transformation prop- erty. In Herne, a city of around 160,000 inhabitants in Germany’s Ruhr region, developer Landmarken has converted a former Hertie department store into a multifunctional space that hosts shops, a restaurant, a fitness studio and offices. This transformation was not without complications, however, explains Thomas Binsfeld, a member of the management team at Landmarken. He points out that former retail properties often consist of large, dark spaces. “All the alternative types of use, such as offices, hotels and apartments, are typically more subdivided and need daylight.” To provide better ac- cess to natural illumination, Landmarken carved two courtyards into the existing property in Herne. needs to be examined carefully and the design concept tailored to the specific circumstances.” At the Gerber shopping centre in Stuttgart, for example, which was opened in 2014, IPH responded to changing retail patterns by transforming the top retail floor into a Ruby-branded hotel and co-working spaces. “In terms of construction, that’s easy to do,” explains Jähnichen, “because the rooms can be ar- ranged to face either the courtyard or the street.” It gets more complicated if an at- rium needs to be inserted into the build- ing so that office space can be created, for example. “Whether such a transformation is economically viable depends on what level of rent is achievable and where the building is in its lifecycle,” Jähnichen adds. Building costs are not the only crucial factor in the equation There is no magic formula or one-size-fits- all approach to property transformation, says Lars Jähnichen, managing director of consultancy and management company IPH Handelsimmobilien. “Each location This assessment is consistent with the findings of the study conducted by Union Investment and bulwiengesa. The experts consulted during the study agree that, while the construction costs What key opportunities do transformation properties present? Resilience of city centres Variety Attractive environment Emotional appeal Experience Construction costs Cost parity in ideal case Implementation speed Building material availability Funding opportunities Political acceptance Involvement of public interest bodies Faster approval procedures in some cases ESG taxonomy Overall energy use Circular economy Reduction of negative externalities Innovative construction € Risk diversification Income from multiple use types Diversification of user base Source: Transformation Properties Market Study, Union Investment and bulwiengesa, December 2021 Compared to demolition/new build, transforming buildings offers a range of opportunities that can be assigned to five main areas. 6 places and spaces 01/2022

Cover story 0 D 6 3 T R A SFOR M A TIO N E G R EE SP E C I A L N Data analytics for mixed-use developments Mixed-use projects are increasingly popular among developers around the world. But success depends on precisely tailoring the offerings to customer demands. Sophisticated data analytics hold the key. By Paul Allen A t Kerten Hospitality (KH), every piece of data that flows into its mixed-use projects is analysed to maximise the returns and efficiency of the assets in its schemes. The global hospitality group manages and operates hotels, branded residences, serviced apartments, co-working hubs and dining outlets, creating destinations to stay, work, shop, eat and socialise across 12 countries. Assets are run with a focus on the guest experience, delivering efficient operating models and maxi- mising space to extend seasonality and improve the ROI. Using technology tools such as hotel revenue management solutions, building management systems, quality control tools like ReviewPro and point of sale systems, KH captures and analyses a wealth of data to plan its resource needs, and drive efficiency and productivity, explains Chief Operating Officer Wafik Youssef. Data it collects includes customer profiles and target age groups, booking and spending behaviour, social media interactions and followers, venue footfall, waste management, energy usage versus occupancy and levels of cross-selling be- tween project units “Such analysis provides us with the details needed to optimise our cost and revenue strategy, helping to drive maximum profit per square metre.” Wafik Youssef, Chief Operating Officer, Kerten Hospitality 8 places and spaces 01/2022 “Such analysis provides us with the details needed to optimise our cost and revenue strategy, helping to drive maximum profit per square metre,” Youssef says. Data-driven repurposing Mixed-use developments provide a risk hedge for developers and investors by diversifying income streams and eliminat- ing dependency on one asset class. Many, like the KH model, are hospitality an- chored. The retail sector, where long-term disruption has left swathes of empty high street spaces and shopping centres, is particularly ripe for mixed-use repurpos- ing. Aging offices in non-prime locations may face similar demand challenges in a post-Covid, hybrid-working, sustain- ability-focused world. Data analytics can help determine what the most financially viable use mix should be. For agent JLL, the first step is to use data to identify which buildings or large-scale schemes will or won’t work as “investible places” and where to concentrate the firm’s efforts, says Tim Vallance, JLL’s Head of Investor Services and Retail Chairman. “Through data, we can now work out the alternative uses of thousands of proper- ties at the touch of a button.”

Cover story ) n o i t a u m l i s ( t h c i l t r a w Z / r e m a r K k u u L : s o t o h P 10 places and spaces 01/2022 Many paths lead to the Paris accord for a net zero carbon planet by 2050 and Amsterdam appears to be pursuing several of them. In November 2021, the 32 municipalities that make up the Metropolitan Region of Amsterdam (MRA) signed the Green Deal Timber Construction mandating that 20 percent of all new housing projects in the Dutch capital and neighbouring towns and cities be constructed with wood or other bio-based materials from 2025. Amsterdam itself already boasts HAUT, one of the world’s highest wooden residential towers and the biggest in the Netherlands. Circular construction, which seeks to re- duce the use of materials in the building process and recycle as much as possible, is just one of the strategies that Am- sterdam is adopting as part of its efforts to minimise carbon emissions. The city council aims to redesign 20 product or material chains as part of an innovation programme on the circular economy, including projects to convert waste into electricity, urban heating and construc- tion materials. Amsterdam feels a bit like a village, but it’s really a global exemplar when it comes to the green economy, ac- cording to Lisette van Doorn, CEO of the Urban Land Institute Europe. The city is punching above its weight in so many ar- eas, she adds. “Paris has declared it wants to become a 15-minute city, but a lot that Paris aspires to be, has been in place in Amsterdam since long before the concept became so hot.” One of Amsterdam’s key assets is its at- tractiveness to talent: young people love the city, the quality of life and the ability to cycle anywhere. That’s a huge advan- tage, she notes: “Nowadays real estate investors as well as businesses follow people, not the other way round.” A recent report by ULI on the Attractive- ness of Global Business Districts highlight- ed Amsterdam’s standing as a busi- ness-friendly city, ranking its Zuidas ▶ E G R EE SP E C I A L N 0 D 6 3 T R A SFOR M A TIO N Amsterdam on a roll With a relatively small population of just under 900,000, Amsterdam is hardly a typical global city. But it can challenge for international leadership when it comes to a green economy. By Judi Seebus

t n e m n o r i v n e n o i t c a r e t n i e h t f o n o i t a s i l a u s i V : e g a m I . i n e s k r e D m W d n a e r e m Y , t l u s n o C e r u t u F l t t e w o G a l r a K , i o d u t S i l z i r G : y b n o i t a s i l a u s i V . 0 4 0 2 n i d a t S - n e v a H m a d r e t s m A , k ij d r e t o l S f o , y t i l i i b a n a t s u S d e t a r g e t n I t p e c x E , e p a c s d n a l d n a m s i n a b r U u a B l , s t c e t i h c r A R E I V E L P + E P O O H n e e w t e b n o i t a r o b a l l o c a s i y t i c N I . ] 8 1 0 2 [ y t i c N I m a e t y b e r u t u F e h t f o y t i C h c r a e s e R : s o t o h P Cover story In Haven-Stad, a planned new residential area of Amsterdam, the focus is firmly on residents and their needs. The research project of the same name is considering future scenarios for the 1 million square metre site. business district in 15th place worldwide. Amsterdam has also been a beneficiary of Brexit in terms of business relocations from London to the European continent. “The relocation of the European Med- icines Agency, for example, has been a catalyst in attracting different types of businesses in life sciences and well-being,” Van Doorn says. The Dutch capital is unique because although it is an established capital, it’s also very much like a new world city that is leading in technology-led sectors, culture and innovation, and in balancing the agenda for business with the agenda for the planet, lifestyle, talent and people, as urbanist and global advisor Professor Greg Clark told a recent Amsterdam Eco- nomic Board webinar. “Amsterdam is in business in the things that the world really needs,” he said. startups, it will continue to attract global and European venture capital investment, Clark predicted. Amsterdam is a global leader, if not “the” global leader in the circular economy, he added. “It’s also being recognised as a successful global hub for startups and is already the third most important centre for ‘unicorns’ in Europe.” TechMeUp Amsterdam has recently embarked on several initiatives to attract workers to growth industries such as IT, including TechConnect, a partnership with local businesses Booking.com, TomTom and Ra- bobank. Together, they have created so- called TechGrounds – or hubs – to attract students and workers in disadvantaged neighbourhoods, as well as TechMeUp, a fund that provides financial support for (re)training. The city has a strong focus on entrepre- neurship and innovation and tech-fo- cused growth sectors such as cleantech, foodtech, life sciences, e-commerce and fintech. By incentivising early-stage Amsterdam’s Hydrogen Hub is anoth- er example. A public-private alliance between the municipal and provincial authorities, the Port of Amsterdam, Schiphol Airport and local energy and 12 places and spaces 01/2022 “There’s a huge social return if the right infrastruc- ture is in place, especially given the enormous need for afford- able housing.” Lisette van Doorn, CEO, Urban Land Institute Europe

Cover story Wonderwoods is a vertical forest planned for a site close to the main railway station in Utrecht. The project will consist of two residential towers and aims to restore the city’s biodiversity. / m s i n a b r u + e r u t c e t i h c r a S C n e v e o h n e V , ) n o i t a u m l i s ( , i o d u t S 2 A © A S V M / s d o o w r e d n o W : s o t o h P Union Investment acquired the Amst, a planned residential building with 252 apartments opposite Amsterdam Amstel station. Sawa means rice field and is the name of a wedge- shaped, environmentally friendly residential tower in Rotterdam (right). Cross-laminated timber is the dominant construction material in this development, where work commenced in 2021. 14 places and spaces 01/2022 ) n o i t a u m l l i s ( s r e n n a p d n a s t c e t i h c r a i e M f o y s e t r u o C e g a m I . A W A S , ) n o i t a u m l i s ( s n i r P o d u t s D 3 i

Cover story 0 D 6 3 T R A SFOR M A TIO N E G R EE SP E C I A L N Transformation on many levels Union Investment has taken important steps on many levels to align its real estate business with a myriad of transformation requirements. The target vision is of a strong real estate platform that serves a range of property asset classes and different customer needs. By Fabian Hellbusch and Lena Teuber (graphics) Transformation areas Union Investment is implementing transformation across all levels. Investment management New property types and investment styles open up additional acquisition opportunities and boost the resilience of the portfolio. Asset management Active value creation at the acquisition stage and the transformation of existing properties are set to become key drivers of performance. Transformation requirements Union Investment understands transformation requirements and is fully addressing them. 360 degrees. Changing user requirements Changing customer/ investor requirements 16 places and spaces 01/2022 Institutional real estate business The offering for institutional customers will be actively expanded by adding tailored real estate solutions.

Cover story Investment management New property types and investment styles open up additional acquisition opportunities and boost the resilience of the portfolio. Setting the course: Union Investment successfully tapped into the residential asset class outside the DACH region for its open-ended real estate funds last year. Overall, projects worth a total of around a billion euros were acquired in the residen- tial segment in Amsterdam, Dublin, Helsinki and the US. Further growth is planned. 18 places and spaces 01/2022

Cover story HR Innovative corporate culture: active HR management, diversity and new forms of collaboration provide the basis for future success. A fresh perspective: The first Next Generation Board was constituted in Union Investment’s Real Estate segment at the start of the year. Made up of young professionals, it will serve as an advisory body to management. Young voices at Union Investment have thus been given an innovative and important platform. 20 places and spaces 01/2022

Cover story 0 D 6 3 T R A SFOR M A TIO N E G R EE SP E C I A L N The social dimension To date, sustainability has mostly been discussed in the real estate sector in terms of the environment and energy efficiency. Now attention is increasingly turning to the S in ESG. Many market players are taking the initiative themselves rather than waiting for rules from Brussels. By Christine Mattauch A t first sight, it looks like any other business park. Located on the motorway between Prague and the German border, it features the usual cluster of industrial buildings, logistics warehouses and parking areas. But some- thing is different here, near the Czech town of Bor. There’s a clubhouse where users can get something to eat, plus inexpensive mini apartments for long-dis- tance commuters. Not to mention green space, sports facilities and play areas, including a basketball court. “It means a lot to the tenants and their employees. Investors like it, too,” says Jan-Evert Post, Head of Funding and Investor Relations at Dutch company CTP, which developed and operates the site. CTP has more than 100 industrial and logistics parks in its portfolio and social infrastructure is becoming an increasingly important aspect. “Some 20 to 25 percent of our parks will be equipped with such features over the next few years, especial- ly the larger ones,” says Post. Sustainabil- ity counts – and is certainly a factor for a listed company. “ESG comes up in virtually every conversation with investors,” says Post, i.e. environmental, social and governance issues. “The energy perfor- mance of our buildings is already very good. Now we’re increasingly turning our attention to social aspects.” Up to now, discussion in the real estate sector around sustainability has mainly focused on the environmental dimension, but social factors are moving up the agenda. “Investors are increasingly mak- ing the issue part of their strategy,” con- firms Susanne Eickermann-Riepe, Chair of the Institute for Corporate Governance in the German Real Estate Industry (ICG). There are two reasons for this – social fea- tures create a point of difference, which is welcomed by the market, and tend to raise the value of a property. Attention shifting to social sustainabil- ity and the associated opportunities Although there are no legally binding provisions as yet, it’s likely to be only a matter of time before the European Com- mission lays down social taxonomy crite- ria. The Platform on Sustainable Finance, an expert group that advises the Commis- sion, provided some initial pointers to the rules in July. In line with the environmen- tal taxonomy, there will be criteria that funds must comply with if they want to call themselves sustainable. A key distinc- tion will be whether they simply possess certain characteristics (Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR)) or have sustainability as an objective (Article 9, SFDR). In addition to processes within a com- pany, there will be a focus on the social quality of properties – which can be a challenge, depending on the type of use. “Some asset classes are better candidates than others,” says Eickermann-Riepe. The Brussels initiative is pushing at an open door. Investors who are aware of their social responsibility already view The S in ESG “Social value encompasses environmental, economic and social wellbeing and understands each of these in terms of their impact on the quality of life of people.” Source: Framework for Defining Social Value, UK Green Building Council, 2021 22 places and spaces 01/2022

Cover story “Kindergartens are a highly resilient in- vestment. It’s a niche but logical product that has struck a chord with our institu- tional investors.” Carsten Demmler, managing director, HIH Invest Real Estate board member. “ESG is a massive driver of demand.” As a result, community assets such as care homes, schools and nurser- ies/kindergartens are also sought after. For example, Warburg-HIH launched the “Zukunft Invest” special fund in 2020, which primarily invests in kindergartens. Carsten Demmler, managing director at HIH Invest Real Estate, calls it a “niche but logical product that has struck a chord with our institutional investors.” This is fully compatible with a focus on returns, he stresses: “Kindergartens are a highly resilient investment.” Leases tend to be long; operators are creditworthy and, in Germany at least, their obligations are often protected by public sector guaran- tees. Social aspects are less tangible when it comes to office and commercial proper- ties, but there are still exciting opportu- nities. Ensuring comparability of social strategies across use classes BNP Paribas REIM’s ESG Action Plan for 2021 to 2025 includes the following objectives: “Improve health and well- being of tenants, ensure access for dis- abled people, provide sustainable mobil- ity.” Contract design can also be a start- ing point. Are tenants and contractors respecting basic social standards in their dealings with their employees? How does a property contribute to local infrastruc- ture? What is a building’s added value for local people and residents? “Buildings are still rarely viewed in context,” says Eickermann-Riepe. The expert cites the management of Hamburg’s HafenCity as a successful example. Cologne-based de- veloper Pandion takes a rather different approach. It allows artists to use soon-to- be-demolished buildings and derelict sites free of charge, and subsidises new build space. “As developers, we see ourselves as an important part of what makes a town or city,” says Pandion’s manager in Berlin, Mathias Groß. It is clearly difficult to compare such diverse strategies. The key aim of the tax- onomy is thus to create transparency for investors around sustainability. On behalf of the ICG, the Real Estate Management Institute (REMI) at EBS University has developed a model that assesses projects based on their individual sustainability objectives and allows them to be com- pared via a points system. “The aim is for investors to be able to apply the model themselves,” says the head of REMI, Ker- stin Hennig. The effort involved depends on the quality of the data. Time will tell whether the model gains acceptance, but at least a start has been made. • Industria Wohnen is developing a new residential complex in Mainz. 25 percent of the apartments will be publicly subsidised and offered for rent at less than €8 per square metre (left). Cultural and social initiatives can apply for space at Pandion’s office campus, located close to Berlin’s Ostkreuz station, for €6.50 per square metre (right). 24 places and spaces 01/2022 , n e n h o W a i r t s u d n I , e t a t s E l a e R t s e v n ) n e n o i t a u m i S ( l I N O D N A P / x u l i m o o L I H H I : s o t o h P

Cover story Jan von Mallinckrodt (left) and Thomas Röhrs are advocates of the Manage to Green strategy. With its “atmosphere” label, Union Investment compiles a key perfor- mance indicator that communicates the sustainability perform- ance of a property to tenants, investors and other market players. 26 places and spaces 01/2022 the fact that our open-ended real estate fund is a sustainable investment. For both audiences, the message is important that we’re not starting from scratch and are actively managing the necessary transformation process. Switching to Article 8 is a sign of that. are very aware of sustainability issues in the workplace. They value things such as accessibility by bicycle and public trans- port as well as plenty of bicycle parking spaces, showers, changing rooms and also well-lit parking areas that allow people to feel safe. How are you managing the transform- ation with regard to sustainability requirements? Von Mallinckrodt: We’re deploying our Sustainable Investment Check, which has been in use since 2009 and covers all the relevant factors. The S in ESG is not yet defined by the taxonomy – BaFin, the German Federal Ministry of Finance and the EU each have rather different ideas. We are therefore following our own set of criteria and focusing on indoor envir- onmental quality, safety, local shopping facilities and social engagement within our properties, to name just a few aspects. Röhrs: Our properties should make users feel good. For many of our office build- ings, the target group are companies with employees and management teams who How are you boosting the portfolio’s sustainability? Von Mallinckrodt: Quick initial wins can be achieved by picking up obvious prob- lems, such as the heating being on seven days a week when the building is only used for five. In addition, we’re trying to drive forward energy modernisation by installing smart meters and then identify- ing ways of reducing consumption. What does that mean in concrete terms? Von Mallinckrodt: The core element of our Manage to Green strategy is energy monitoring. We want to put that in place across all fund properties by 2025. For us, that means equipping around 80 proper- ties a year with sensors to obtain reliable

Cover story 0 D 6 3 T R A SFOR M A TIO N E G R EE SP E C I A L N Taking the lead Sustainability concerns are moving centre stage for real estate companies, but the desire to introduce ESG reporting is being hampered by a lack of legislative cohesion. By Isobel Lee A recent report from Colliers highlights the fact that no single set of reporting frameworks has established itself as the accepted worldwide benchmark for ESG performance, making it extremely difficult for real estate investors to predict future requirements and liabilities. “The chal- lenge at the moment is to understand what, exactly, needs to be done to cali- brate property portfolios with the incom- ing requirements for decarbonisation in particular,” says Luke Dawson, MD capital markets EMEA at Colliers, highlighting that the potential cost of retrofitting exist- ing buildings is estimated to be around €7 trillion in Europe alone. EU directive on corporate sustainability reporting expected in 2023 However, last year’s enactment of the EU Action Plan on Sustainable Finance with the Disclosure Regulation (SDFR) has “shaken up the partly-dormant financial market”, Patrick Kern suggests. “By de- manding more transparency on sustain- ability and even defining sustainability at 2021 may go down in history as the year when envi- ronmental, social and governance (ESG) concerns took up permanent residence in the world of commercial real estate. Although the importance of sustainability reporting has been underlined by bodies such as the European Public Real Estate Association (EPRA) for several years, a combination of the pandemic’s lessons, environmental vectors and new EU legis- lation have helped crystallise its relevance in the public eye. Several office properties held by Union Investment are already taxonomy compliant (from left to right): German headquarters of the Mercedes-Benz sales organisation in Berlin, Urban Environment House in Helsinki, Stibbe Court in Amsterdam and First in Rotterdam. Yet a lack of formal guidance on the right way forward has repeatedly left the indus- try at an uncomfortable crossroads. Notes Patrick Kern, member of the sustainability team at Union Investment Real Estate GmbH: “As early as 2015, it was decided at the World Climate Conference in Paris that global warming should be limited to 1.5 degrees. However, a lack of concrete implementation plans or financial conse- quences have left the business world at a standstill.” 28 places and spaces 01/2022

Cover story 0 D 6 3 T R A SFOR M A TIO N E G R EE SP E C I A L N W eitmar has an industrial past; collieries and steelworks shaped this district in the city of Bochum, Germany. In an exciting twist, it is now home to the EZZ Energy Center of the Future, which will supply 81 residential units with net zero power and heat, making them largely energy self-sufficient. The first two buildings have already been hooked up. This showcase project by real estate com- pany Vonovia is being financed entirely from the company’s own resources and is pivotal for the whole industry. It demon- strates energy strategies that are already possible today – and may well become standard practice in just a few years. For Vonovia’s Head of District Systems, Tobias Hofmann, it’s clear that “the EZZ has already fulfilled its purpose, given the insights we have gained to date.” Elsewhere, engineers are also developing solutions for districts that are capable of meeting most of their own energy needs. One example is in Freiburg-Dietenbach, where there are plans to build housing for 16,000 people. A site formerly occupied by sewing machine manufacturer PFAFF in Kaiserslautern is another inspirational project, as is Neue Weststadt in Essling- en, which involves five apartment blocks alongside a campus with a high-rise tower. The objective is to achieve green- house gas neutrality. Generating electric- ity and heat directly where it is needed, based on renewables, delivers high efficiency and avoids CO2 emissions. Tailored to local requirements and resources As yet there are no standard solutions. However, pioneers are already driving innovation that will make things easier for those who follow. In the first phase, “This gives the real estate industry a new role as an operator of business models around energy.” Jörg Kruhl, Chief Marketing Officer, Ampeers Energy 30 places and spaces 01/2022 Vonovia has opted for a combination of photovoltaics, heat pumps, an electro- lyser, a hydrogen storage system and a fuel cell. Green power not only cov- ers a high proportion of the electricity requirement, it also provides heat, with an electrolyser being used to produce hydrogen which is then stored. A fuel cell subsequently transforms the hydrogen back into electricity and heat. But this is just the start. “The EZZ is designed as a modular system,” explains Hofmann, “we can add in technologies and remove them at any time.” Geothermal energy is one example. The EZZ is a living labora- tory and Vonovia intends to leverage the findings in future modernisation projects. As Germany’s biggest housing company, it wants its existing building stock to be virtually net zero by 2050. Elsewhere, waste heat from nearby indus- trial facilities will be used or, in rural areas in particular, wind or biomass energy. In urban areas, connection to a decar- bonised district heating network is an alternative – self-sufficiency is not an end in itself. “You have to base what you do on local requirements and resources,” says Gerhard Stryi-Hipp, head of the Smart Cities research group at the Fraunhofer Institute for Solar Energy Systems ISE. “There’s no blueprint out there.” While planners of new build projects have the opportunity to do everything right from the outset, the big challenge lies with existing buildings. There are, howev- er, elements which experts believe make sense almost everywhere: examples here include high levels of building efficiency, large-scale solar, and heat pumps. Retro- fitting can be costly and time-consum- ing, though. Converting the heating to a central solution involves building an energy centre as well as laying pipework. Similarly, charging points for electric ▶

Cover story cars require thick power cables. “Good planning is important, right from the start,” says Konrad Jerusalem, managing director of Argentus, a Düsseldorf-based real estate consultancy. As a rule, dis- trict-wide solutions are more efficient than single-building solutions because they allow synergies in terms of procure- ment and operation. It’s also possible to balance out fluctuations in demand more effectively – by using surplus solar power to charge entire fleets of electric vehicles, for example. And in a mixed-use develop- ment, different patterns of consumption between living and working can partially offset each other. District-wide solutions are generally more efficient than single-building solutions In any case, a much more holistic view needs to be taken of the different uses within a neighbourhood, according to Lars Scheidecker. The CEO of Union Investment Real Estate Digital GmbH and his team are developing a digital ecosys- tem for commercial properties called “Run this place”. Says Scheidecker: “If individual buildings are integrated more tightly and better connected with their surroundings, this results in synergies that benefit the entire neighbourhood and its users.” He gives the examples of e-charging or mak- ing flexible use of space that is temporar- ily available. “Both of those options and much more besides can be tailored to the local situation when deploying a digital ecosystem.” The more complex the components, the more important orchestration becomes: When should electricity be provided directly to tenants, when should storage capacity be replenished? To manage these aspects, Vonovia is working in Bochum-Weitmar with Ampeers Energy, a Munich-based startup that has developed a digital energy management system which leverages artificial intelligence. The system is continuously self-optimising and draws on weather forecasts and also user behaviour. Although the world may well have been simpler for portfolio man- agers, developers and investors in the 32 places and spaces 01/2022 past, Ampeers’ Chief Marketing Officer, Jörg Kruhl, stresses the positive aspects: “This gives the real estate industry a new role as an operator of business models around energy.” While regulations and tax issues currently create barriers, there is fundamentally no reason why solar power generated on the roof of a building can’t be sold to tenants, for example. Doing this via a separate company is a potential way forward. This would create a new revenue stream, while tenants would benefit from lower utility costs. Some energy suppliers view the develop- ment as a threat to their business. Others regard the change as an opportunity and are taking on contracts to set up the necessary infrastructure. “That kind of business offers much higher margins,” says Jerusalem. In Sigmaringen, southern Ger- many, the local municipal utility company is planning a development on the site of a former barracks that will be almost entire- ly self-sufficient in energy. It will use solar power, a heat pump, compact heat and power plants, wood chip boilers and heat storage to save 3,300 tonnes of CO2. Many of these new technologies are still more expensive than conventional solu- tions. Solar panels and a heat pump cost more than a condensing boiler. Savings are only achieved during operation, such as when replacing gas with green elec- tricity generated on-site. Many projects, therefore, will only work financially if developers are willing to bear the upfront costs – and if investors reward that com- mitment. Fraunhofer expert Stryi-Hipp believes that’s the only way: “Companies that don’t at least strive for zero carbon run the risk of producing stranded assets.” So-called green inflation could soon favour self-sufficiency: ecological trans- formation of the economy will initially increase demand for energy and there- fore push up prices. “The cost-benefit equation when considering new projects will therefore shift in favour of these con- cepts,” says Jan von Mallinckrodt, Head of Sustainability at Union Investment Real Estate GmbH. At Vonovia too, the consen- sus is that any cost-benefit analysis should “If buildings are integrated more tightly, this results in synergies that benefit the entire neighbourhood.” Lars Scheidecker, CEO, Union Invest- ment Real Estate Digital GmbH

Cover story Thinking outside the box Les Gobelins station in the 13th arrondissement of Paris is being completely regenerated. As part of the remodelling work, Segro is developing a 75,000 square metre underground logistics centre for urban distribution and last-mile delivery. 34 places and spaces 01/2022

, r e g u a T h a i r a M / s e g a m I y t t e G , O R G E S : s o t o h P s e r u t n e V n a Z i , i a t t o D e k M / k c o t s r e t t u h S Cover story Azora usually focuses on a “sweet spot” some 10–15 km away from cities, which is still a useful range for occupiers such as 3PLs and dark kitchen operators. The firm is also exploring the potential for hybrid logistics solutions at retail parks, which offer both low prices per square metre and simple warehouse structures that are ripe for conversion. But she underlines that being selective is key. “There are sites which look interesting – such as garages or retail parades – but apart from needing different permits to run last mile, the surrounding infrastruc- ture requirements are completely differ- ent,” Garcia-Peri notes. “Street access has to be well connected to major city arteries and wide enough that trucks can turn. You need loading bays, and local author- ities will back residents if there’s a prob- lem with noise, traffic or pollution.” Going deep Another firm that is exploring the depths of what is possible in urban areas is industrial specialist Segro, whose French operations include both multi-storey and underground warehouses. While its 36 places and spaces 01/2022 multi-level Paris Air2 Logistique ware- house was developed for Ikea and Leroy Merlin in an out-of-town position, its latest, subterranean solution occupies a prime location beneath the city of Paris. Segro has teamed up with French office specialist Icade to transform the rem- nants of a former goods railway station, Les Gobelins, into a mixed-use project combining state-of-the-art offices with an underground last mile logistics hub. While Laurence Giard, general manager, Segro France, notes that “underground warehouses are extremely costly to excavate from scratch”, the firm’s lat- est scheme in the French capital’s 13th arrondissement exploits previously dug warehousing space under the historic former station. Overground, tired 1970s shopping centre Les Olympiades will make way for two timber framed office buildings, plus gardens, greenhouses and sports pitches. Giard explains that the last mile facility will connect to its urban surroundings through the introduction of soft mobility solutions, including electric vehicles and delivery tricycles. Recycling centres and repair shops will further ce- ment its role in the local community. “Some experts are predicting that a shortage of land will cause warehouses to be built underwater and in the sky.” Zain Jaffer, real estate and proptech venture capitalist and partner, Blue Field Capital

Cover story 0 D 6 3 T R A SFOR M A TIO N E G R EE SP E C I A L N An end in sight t n e m t s e v n I i n o n U : o t o h P 38 38 places and spaces 01/2022 places and spaces 02/2020

Markets Real estate industry in flux The real estate markets are currently being buffeted by change. The industry is already in adjustment mode, as demonstrated by the findings of the investment climate survey of 150 property companies in Germany, France and the UK conducted by Union Investment between November 2021 and January 2022. Germany France UK Total Numbers in circles: percentage of respondents Given growing pressure from European as well as national and local regulations to improve the sustainability of existing property stock, 68 percent of the respondents in Europe are intending to invest in sustainable refurbish- ment of their portfolios. 69 79 70 60 68 72 57 73 65 79 68 53 52 44 66 47 13 16 2 18 The majority of investors surveyed agree when asked whether sustainable properties will command a premium in future. In total, 83 percent answered yes to the question. In the UK, an impressive 96 percent expect prices for green properties to rise. 40 places and spaces 01/2022 How are you responding to growing pressure from European as well as national and local regulations to improve the sustainability of real estate holdings? “Properties need to have the relevant local sustainability certificate” “We are primarily investing in sustainable refurbishment of our holdings” “We are paying more attention to whether properties are taxonomy compliant” “We are buying more new builds” “The issue is only a minor consideration at present” Will investors pay a premium for “green properties” in future? “Yes” “No” “Don’t know”/ no answer 87 65 96 83 13 30 14 4 0 5 0 3

Real people New team in Vienna Vienna is the home of Union Investment’s newest real estate subsidiary. A new management team in Austria is tasked with continuing to drive growth of the company’s property business. Words by Elke Hildebrandt, photos by Andreas Jakwerth in Austria now has the mission of leading Union Investment Real Estate Austria AG into the future. Three-member leadership team with strategic allocation of responsibilities The new management trio comprising Petia Zeiringer (47), Jenni Wenkel (48) and Stefan Süschetz (41) took up their roles at the end of last year. Union Invest- ment Real Estate Austria AG’s new senior management team is tasked with driving growth and creating a stable foundation for the company’s activities in Austria. Petia Zeiringer was appointed to the management board on 1 January 2021. ▶ Union Investment’s Austrian sub- sidiary was added to the Group in December 2015. Expansion into Austria was preceded by the acquisition of two companies in the country. Along- side gaining access to local expertise and knowledge of the national market, an existing real estate fund specifically for Austrian customers was incorporated into the Union Investment portfolio. In the meantime, the two business areas, represented by Union Investment Austria GmbH with responsibility for sales and Union Investment Real Estate Austria AG for the fund and real estate business, have been tightly integrated into the Group’s existing units. A new management team 42 places and spaces 01/2022

Real people She is the fund manager of open-ended real estate fund immofonds 1 and also in overall charge of fund management and asset management in Austria. Alongside running what is currently Union Invest- ment’s only Austrian retail fund, she thus has formal responsibility for managing the portfolio of around 30 properties held by Union Investment in the Alpine republic. Jenni Wenkel joined the management board on 1 September 2021. As Chief Investment Officer, she is in charge of investment management at Union Invest- ment Real Estate Austria AG and respon- sible for property acquisitions and sales in Austria across all Union Investment funds. Stefan Süschetz became the third mem- ber of the leadership team on 1 No- vember 2021. As Chief Risk Officer and Chief Operating Officer, he is responsible together with his management board colleagues for strategic and operational management. He oversees middle office operations and risk management, as well as legal, compliance, sustainability and fund accounting. Süschetz is involved in all immofonds 1 real estate deals. Compelling blend of experience, knowledge and personalities Petia Zeiringer remembers the first full management board meetings well: “As soon as the new board was complete, our first priority was to discuss the allocation of business areas. Assigning responsibil- ities based on experience, knowledge and personal skills has proved to be highly ef- fective. With our different strengths and professional expertise, we complement each other very well.” Jenni Wenkel highlights the similarities. “We all have the same mindset, and it has been great to be on the same wavelength from the start,” she says. “Our balanced team will enable us to contribute to- wards the Group’s growth strategy,” says Süschetz. The Vienna-based investment manage- ment company’s tasks include managing 44 places and spaces 01/2022

Real people Union Investment’s Austrian portfolio, locations with number of properties Real estate assets (as per expert valuation): EUR 1.26 billion Properties: 29, of which 23 commercial properties, comprising · Offices (13) · Retail (5) · Hotels (4) · Logistics (1) Krems an der Donau (1) Linz (1) Wels (1) Steyr (1) Sankt Pölten (1) Vienna (17) Innsbruck (1) Hartberg (2) Graz (4) Source: Union Investment, 31 December 2021 an integral part of the business at both product and company level. “Last year, our fund became an Article 8 fund under the EU’s Sustainable Finance Disclosure Regulation. That underlines its sustain- ability, which is something we intend to develop further,” comments Süschetz, adding: “Sustainability is an important component of our corporate DNA.” Location in old stock exchange com- bines tradition and modernity A total of 23 people work at Union Invest- ment Real Estate Austria AG in Vienna. “We’re a small team so we all need to pull together,” stresses Zeiringer. “Each person has an important and indispensable contribution to make to our overall per- formance, which motivates everyone and boosts commitment.” The Vienna-based company benefits from its short chain of command, with communication and information sharing being second nature for everyone. “We all enjoy working in this beautiful, centrally located old stock exchange building, operating out of mod- ern, well-equipped offices,” says Zeiringer. Jenni Wenkel has over two decades of experience in the Austrian real estate sector. As Chair of the Royal Institution of Chartered Surveyors in Austria, she con- tinues to expand her strong network and has acquired valuable in-depth insights into the market. “Compared with other European countries, Austria is a very small market with a limited number of players. You need to have good contacts to find the right kind of properties,” she says. Vienna real estate market makes the “Big Seven” the “Big Eight” The Austrian office property market offers only limited potential for growth: “Vienna is traditionally a market dom- inated by a small number of companies,” says Wenkel, who has been monitoring market conditions for many years. “We target core, core plus and very good sec- ondary locations, and also consider new usage concepts that will enable us to achieve profitable growth.” Vienna is still regarded as the gateway to the East. The German-speaking world should real- ly be described as having a “Big Eight”, rather than the traditional “Big Seven”, notes Wenkel. She firmly believes that Vienna belongs in this top grouping. With more than 1.9 million inhabitants, Austria’s capital actually has a slightly larger population than Hamburg. Vienna is also in a stronger position as regards office property yields, which Wenkel puts at around 3.5 percent at present. As such, this relatively new real estate company has a clear mission and objec- tive in Vienna: “We’re here for the long haul.” Petia Zeiringer and Jenni Wenkel can second that from their own experi- ence, having made Vienna their new home many years ago. • 46 places and spaces 01/2022

Portfolio Global investment bounces back Union Investment entered the US multi-family market in December 2021, acquiring the EON Squared complex in the heart of Flagler Village, Fort Lauderdale, on the south-east coast of Florida. 48 places and spaces 01/2022

Portfolio “The logistics sector has attract- ed the attention of the biggest investors globally. Everybody wants a piece of it.” Chris Brett, Head of EMEA Capital Markets, CBRE by the pandemic, logistics real estate has experienced “unbelievable” growth in the past 18 months, CBRE’s Brett says. The sec- tor will continue to thrive because it is the one everybody wants to get into. Land is scarce almost everywhere and demand from occupiers and developers is unprece- dented. “The logistics sector has attracted the attention of the biggest investors globally. Everybody wants a piece of it.” Amsterdam-based Bouwinvest Real Estate Investors identified logistics and residen- tial – or “sheds and beds” – as resilient sectors before the pandemic and the two sectors now account for more than 50 percent of the company’s international portfolio. In the US, where multifamily has been an established institutional investment class for decades, Bouwinvest has teamed up with developer MacFar- lane Partners to invest $750 million in residential high rises. Two investments have already been made via a partial equity interest in Level BK, a 40-storey rental apartment tower along Brooklyn’s Williamsburg waterfront in New York, and full ownership of the 24-storey Park Fifth high-rise rental apartment project in downtown Los Angeles. Asia-Pacific is also a target: Bouwinvest is developing private rental schemes in China and Japan together with US-based multifamily specialist Greystar. Teaming up with local partners through joint ventures, or fund participations, is a common international strategy for big in- stitutional investors like APG and AXA, as well as sovereign wealth funds including ADIA and GIC. Around 50 percent of deals by volume are done with a joint venture partner in Asia, and in North America the figure is around 40 percent, RCA data shows. Finding the right oper- ational specialist will become a big theme in 2022, CBRE’s Chris Brett predicts. “Large sovereigns have more and more capital to deploy into real estate and they need to be with the right player.” Global investment by European real estate investors Top European Investors in the Asia-Pacific by country in billion USD 2021: The French led the European investor league in Asia-Pacific with transactions totalling $2.2 billion. The Germans ranked second with $1.8 billion. Top European Investors in the US by country in billion USD 2021: The Germans were the leading European investors in the US, with a total of $2.2 billion in acquisitions, followed by the Swiss with $1.5 billion. Together they accounted for more than half of the US total of $6.2 billion. 2019 2020 2021 Germany Switzerland - Norway - - France Sweden * Netherlands Denmark Spain Italy * 0 6 5 4 3 2 1 - - - - - Source: Savills/RCA, 14 January 2022 * no information provided. 50 places and spaces 01/2022 0 1 2 3 4 5 6

Portfolio investment is more diversified across sectors, which has helped to cushion the downturn. Office investments have been placed under severe pressure by Covid-19. Working from home appears to be a strong market trend that is here to stay and the longer the pandemic goes on, the more uncertain the future of the office is. One thing that is clear, however, is that offices, alongside residential, have the biggest part to play in the transition to a carbon-neutral real estate industry, and therein lies an opportunity. All the big global real estate fund managers have appointed an ESG head in the past 18 months or so and the topic is foremost in the minds of many investors. Developers are, in response, increasingly adopting net zero-carbon ambitions. Union Investment is dedicated to sourcing and acquiring opportunities with a strong focus on ESG, Henrike Waldburg says. “When assessing opportunities – regard- less of asset class – the team uses local benchmarking tools to ensure that we have a comparable dataset for our assets around the world.” Finding product remains a challenge, however. “There’s never enough product, that’s the reality. That’s what changes pricing and keeps the market mov- ing… The world’s not going to stop just because of Covid,” CBRE’s Chris Brett concludes. • 52 places and spaces 01/2022 “We were able to acquire assets in ex- cess of $425 million in the US in 2021, further diversifying our portfolio.” Matthew Scholl, Head of Investment Management Americas, Union Investment In December 2021, Union Investment acquired the Foun- tains of Boynton shopping mall in the Miami-Fort Lau- derdale-West Palm Beach metropolitan area, Florida (top). Return to the US market after three years: Union In- vestment acquired a trophy retail property in a prime location in Chicago in October 2021 (bottom).

Concepts At Lagerplatz 24 in Winterthur, Switzerland, architecture firm baubüro in situ vertically extended an existing ware- house. The highlight of the project is that many of the elements are pre-used, rather than new. The most visual- ly striking feature of the vertical extension is the vibrant orange- red façade made of corrugated aluminium panels – recycled material from a nearby printing works. 54 places and spaces 01/2022 e v i h c r A m a d r e t s m A , ) n o i t a u m l i s ( s t c e t i h c r A A S V M , ) 2 ( u t i s n i o r ü b u a B / r e l l e Z n i t r a M o t o h P :

Concepts “Critical issues typically include fire safety and escape routes, alongside the structural strength of the existing building.” Simon Dietzfelbinger, partner, Drees & Sommer SE T he Tour Montparnasse is one of the best-known buildings in the French capital. Built in 1973 and standing 209 metres high, the tower in the 15th arrondissement is hardly one of Paris’s most beautiful structures. Quite the op- posite, in fact – many detractors regard it as an architectural eyesore. That is set to change, however. In December 2021, the relevant administrative tribunal gave the green light for a long-planned complete refurbishment of the property. Based on plans by architects Nouvelle AOM, the Tour Montparnasse will get a more appealing façade and also be vertically extended by 20 metres, resulting in a new height of 229 metres. This makes the Tour Montparnasse a prominent example of a growing type of construction project: adding extra storeys to existing buildings. There are multiple advantages, as highlighted by the Technical University of Darmstadt (TU Darmstadt) and the Hanover-based Pestel Institute in their Germany-wide study (“Deutschlandstudie”) published in 2019. Vertical extension not only increases the usable floor space of a building and therefore its cost effectiveness, it also has a positive impact from an ecological perspective. “The supply of new sites is finite and increased development cannot be reconciled with our climate targets,” explains Karsten Tichelmann, a professor in the Department of Architecture at TU Darmstadt. “So why not promote and sup- port the creation of new living space that avoids concreting over more land?” Vertical extensions for attractive residential and commercial space The study by TU Darmstadt and the Pestel Institute clearly demonstrates how huge the potential is for adding extra storeys, particularly when it comes to residential use. Adopting this approach would allow the creation of between 1.1 and 1.5 mil- lion additional apartments in Germany on top of residential buildings dating from the 1950s to the 1990s. According to the authors of the study, a further 560,000 residential units could be built by extend- ing administrative and office buildings upwards. “Adding extra storeys to existing buildings can make a crucial contribution to solving the housing shortage, espe- cially in urban areas,” notes the Federal Association of German Housing and Real Estate Enterprise Registered Associations (Bundesverband deutscher Wohnungs- und Immobilienunternehmen – GdW), Creating space for 17 loft apartments. The rauti-huus in Zurich was vertically extended once before, back in 1960. In 2015, the old additions were removed and a lightweight timber framework put in their place. 56 places and spaces 01/2022 ) n o i t a u m l i s ( n e i l i b o m m I n e z t a M / r e k n u B o r ü b s g n u n a P l , f i a l / w o r d o M g r ö J , G A n e t k e t i h c r A e l s h c E n n a m l l i p S , i e r F r e g o R , r e m m o S & s e e r D : s o t o h P

Concepts the case of the former Unilever headquar- ters in Hamburg, which is a heritage-listed building. Constructed between 1961 and 1964, what is now the Emporio building grew by an additional two storeys as part of an extensive refurbishment, bringing the total to 24 storeys. “Vertical extension enabled us to generate additional space and thereby increase the value of the property,” says Cyril Hübner, Senior Pro- ject Manager at Union Investment Real Estate GmbH, who oversaw the refur- bishment and add-on project through to completion in 2011. tion techniques. There have been a few surprises along the way, reports project manager Georg Kölbl. Those included sup- ports that turned out to lack the necessary load-bearing capacity and beams that were too short. Many other properties are also suitable for vertical extension, such as multi-storey car parks, as shown by an- other project in Berlin. In the Lichtenberg district, a niu-branded hotel was created above the multi-storey car park of the ECE-operated Ring-Center 2 shopping centre. HQ Real Estate used timber mod- ules to build on the roof of the car park. Vertical extensions are not always obvious High-rise bunker putting on a growth spurt in the heart of Hamburg Hübner recalls that the standpoint taken by the then director of Hamburg’s City Building Department proved helpful in discussions with the heritage conser- vation authorities, pointing out that numerous buildings in Hamburg had been vertically extended so the addition- al storeys added to Emporio would not affect the urban panorama. Visually, the new levels are indistinguishable from the storeys below. Structural strength was likewise a key consideration at Emporio. “The struc- tural survey showed that the foundations were able to bear the additional storeys,” says Hübner. “That was important for the project because work on the foundations would have been a major task.” As it was, all that had to be reinforced were the vertical steel supports on the top floor of the existing building. Fire safety require- ments posed no problem because the existing three escape routes were deemed adequate for the additional space. Rooftop developments can significant- ly enhance a building’s architecture Emporio and the Tour Montparnasse are not the only examples of vertical extension as a viable option for office properties and residential buildings alike. In Berlin, real estate group Signa is currently refur- bishing the Schicklerhaus building in the city’s historic heart and adding a further three storeys using lightweight construc- 58 places and spaces 01/2022 One particularly spectacular project is located in the Hamburg district of St. Pauli, where a company owned by investor Thomas Matzen is remodelling an anti-aircraft bunker dating from 1942. Five additional storeys are being added in a pyramid shape to accommodate a hotel and restaurant as well as a sports and events venue. The load-bearing structure for the vertical extension largely consists of reinforced concrete, with the bunker’s immense strength proving to be an advantage. The added load is transmitted to the floor slab via the walls, which are up to two and a half metres thick. Such vertical extensions are not cheap, however. Especially if structural reinforce- ment is required, the costs can be signifi- cant, according to Simon Dietzfelbinger of Drees & Sommer. Other factors that can stymie a vertical extension include fire safety requirements proving to be too complex, or inadequate gaps to neigh- bouring buildings. German housing association organisa- tion GdW is therefore calling for greater flexibility with regard to the minimum required distance between buildings, the provision of parking spaces and fire safety. This will help ensure that “building owners are encouraged to create living space through the addition of extra storeys and rooftop development.” • ) n o i t a u m l i s ( + A D i I / o d u t s I S R / M O A e l l e v u o n , i I G B / u o t i n h G n a i r u a L i , s t c e t i h c r A P o H S / n o w K g n o e S , ) y d u t s ( H b m G n e t k e t i h c r A g i l l i H s a m o h T : s o t o h P

Concepts ) n o i t a u m l i s ( r e h c r i k b O p p i l i h P , ) 2 ( t r a g t t u t S f o y t i s r e v i n U , K E L I : s o t o h P The Rosenstein Pavilion is made of functionally graded concrete and was designed and built for a special exhibition at Stuttgart’s Rosenstein Castle (top). This “bone concrete” is characterised by its varying density, thus reducing the amount of ma- terial required (small picture). Kim Nalleweg Architekten are developing a pioneering concrete building in Hamburg’s HafenCity district: the load-bearing walls and slabs are made of functionally graded concrete. The concrete is denser in places where it needs to carry a greater load, while in other places it is more porous, yet still strong. 60 places and spaces 01/2022

Concepts Topping out took place in February 2022: The Cube in Dresden is the world’s first carbon concrete building. Non-metallic reinforcement means that carbon concrete avoids the normal negative impact of concrete. It allows for slimmer and freer designs with much-reduced CO2 emissions (below, and large photo). , B M I / n e d s e r D U T / k u i l a k a V i i r u I , B M I / n e d s e r D U T / l e h c s ö r G n a f e t S : s o t o h P n i l r e B U T , m u a r _ d l i b - n n a m u a B n a h p e t S 62 places and spaces 01/2022

Concepts Carbon concrete can reduce the carbon footprint of a structural element by up to 75 percent. The Cube in Dresden is the world’s first carbon concrete building. Density + + + Functionally graded concrete varies in density, rather like the structure of a bone. The care- fully engineered porosity is set to be used for the first time in a new build in Hamburg’s HafenCity development. 64 places and spaces 01/2022 pilot scheme by Neustark, a spin-off from ETH Zurich University. This involves the use of recycled concrete granules to make new concrete. The additional concen- tration and capture of environmentally damaging carbon dioxide in recycled concrete granules essentially reverses the chemical process involved in the cement manufacturing process. “In the medium term, we want to develop our technolo- gy to the point where the captured CO2 added to the concrete fully offsets the emissions generated during production of the cement. The result would be net zero concrete,” explains Valentin Gutknecht, CEO of Neustark. A new building method featuring func- tionally graded concrete takes a rather dif- ferent approach. Werner Sobek, professor at the Institute for Lightweight Structures and Conceptual Design (ILEK) at the University of Stuttgart, is researching the technology, which involves concrete that varies in density, rather like the struc- ture of a bone. The carefully engineered porosity means that considerable savings can be made in both materials and weight within components, which in turn has a positive impact on energy and emissions. This “bone concrete” is set to be used for the first time in a building in Hamburg’s HafenCity development. Less is more: new “concrete light” construction methods Bacteria and fungi can replace finely ground cement Alternative types of construction – such as skeleton frame structures – mean that buildings can be slimmed down and thus have a reduced carbon footprint. Pre- stressed flat slabs and false ceilings, for instance, can be produced with up to 50 percent less concrete and as much as 75 percent less steel. Similarly, infra-light- weight concrete scores highly when it comes to climate protection. It is used for monolithic components for residential buildings, among other applications, with its porous aggregate making it significant- ly lighter, with correspondingly lower CO2 emissions. The air bubbles trapped inside the material also offer an additional bene- fit in terms of thermal insulation. Builders and planners would be well advised to keep an eye on various for- ward-looking pilot projects that are deploying climate-friendly concrete innov- ations. The Cube in Dresden is one such prototype, the world’s first carbon con- crete building. This significantly “leaner” type of construction is made possible by non-corrodible carbon reinforcement that replaces conventional steel reinforcement. Thorsten Hahn, CEO of Holcim Deutsch- land, explains: “Carbon concrete can reduce the carbon footprint of a structural element by up to 75 percent.” To take the concept further, carbon fibres could be manufactured from natural waste prod- ucts in a net zero production process. Surprisingly, living organisms are also worth considering for making net zero construction materials and boosting resource efficiency. Research into organic concrete has shown that “bacteria set a process in motion which finishes with the precipitation of calcium carbon- ate crystals that form a bond with the aggregate,” explains Christoph Nething, who works at ILEK at the University of Stuttgart. He adds, “The formation of these crystals binds CO2, rather than releasing it.” Fungal organisms likewise offer exciting potential when it comes to developing new building materials. When a myce- lium is used, its threads grow very quickly through a material until a more solid substance is created in just a few days. Water is removed from the end product by heating. The fungal organism then dies, leaving a compact structure that can be made into building blocks or insulation material and which is fully recyclable. Martin Ostermann, professor at the University of Stuttgart’s Institute of Building Construction, believes that the benefits are compelling. He predicts that “this material will replace concrete in the future.” Exactly how, is still unclear: “We’re still just at the beginning, but I hope that a much broader and more varied mix of materials will be available • in future.”

Wide angle Sharp design Flatiron or triangle: architects can transform a site’s weakness into its strength. The triangle as a source of extraordinary creativity. By Elke Hildebrandt 2 3 1 4 1 Glass cake slice The Triangle Building is a signature landmark of downtown Denver (Colorado, USA). The 42-metre-high frontages give the illusion of continuous sheets of glass. This striking three-cornered building is situated at the intersection of three busy streets. Built in 2015, it was acquired for the Union Investment portfolio in 2017. 2 Triangular landmark The Flatiron District in New York is named after the Flatiron Building at the intersection of Broadway, Fifth Avenue and 23rd Street. The 91-metre-high wedge-shaped office building was completed in 1902 and makes optimum use of its triangular site. 3 Blue illusion On the Corner is a striking blue building that emerges from its urban surroundings like a colourful illusion. Nobody was initially interested in this triangular plot of land in Youkaichi, on Japan’s main island of Honshū. The unusual design of the new residential block turned the awkwardly shaped site into an attractive location. 4 World-famous brick building Hamburg’s Chilehaus has been delighting architecture photographers worldwide since 1924. The distinctive brick build- ing was even included as a landmark in a set of stamps issued in 1988. The modernised building belongs to Union Invest- ment’s portfolio and is a UNESCO World Heritage Site. 66 places and spaces 01/2022