Real Asset Insight #6 June 2020

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Technology and ESG havecome to the fore in crisisRikke Lykke, head of European asset management & regional head of Nordics, DACH and CEE,tells RAI how PATRIZIA is responding to Covid-19 and the changes it has brought to real estate.‘More and morepeople haverealised thatyou can actuallydo businesseffectively withouthaving to travelto meet in person.’Rikke Lykke, PATRIZIAStaying close to your tenants or residentsis always important, how do you meet thischallenge at times of largescale disruption likethe current crisis?PATRIZIA has always had a philosophy of stayingclose to occupiers. We believe that it’s importantto speak the same language as our tenants,literally and metaphorically, to understand thelocal culture and trends as every market isdifferent. That’s why it’s key for us to be locallypresent in each market we operate in.We have more than 800 real estate experts onthe ground across four continents in 24 officelocations worldwide. That is a big advantage ina crisis such as Covid-19 as we always remainclose to what is happening on the ground. It isnot only to the benefit of our tenants, but also toour clients who invest in us and seek strong andstable returns.Covid-19 has brought many short-termchallenges for asset management, but will wesee the needs of tenants change in a post-crisisworld? Will it accelerate some trends such asgreater use or requirement for technology?Technology changes were already in motionprior to this crisis, but Covid-19 has certainlyaccelerated them. For example, some digitaltrends like online shopping have increased inall markets. Another big one is videoconferencing where more and more peoplehave realised that you can actually do businesseffectively via these platforms without having totravel to meet in person.A further major trend we are seeing is therising importance of ESG in the real estateinvestment industry. It was also already a trendprior to Covid-19, but we believe this crisisis going to make ESG even more central tobusiness strategies as health and wellbeing,as well as positive social impact in thecommunities we operate in, becomes morerelevant than ever.Will wellness and health move significantly upthe agenda for all tenants? How can this besupported in terms of smart technology andsmart buildings?There are several ways you can use existingtechnologies that are available to help increasehealth and safety in buildings during the crisis.For example, there are smart sensors that canmeasure the footfall of a shopping centre andsuch technology could in the future be used toprevent overcrowding and general breaches ofsocial distancing.Then there are smart sensors that measurethe room temperature in buildings and thosecould, for example, be used to monitor thebody heat of office employees arriving at workto prevent anybody with a fever from enteringthe building. One proptech VC fund we recentlyinvested in for Asia, called Taronga, actuallyworks very closely with proptech companiesthat have pioneered exactly this type of smartsensor system.How do you see the role of the investor/ownerof a real asset change or reflect the needs ofa new and ever-changing set of demands andrequirements from tenants?Around 30 to 40% of CO2 emissions worldwidecome from older real estate stock. As moreand more investors and occupiers alikeare increasingly focused on ESG, many ofthem expect old property stock to becomecarbon neutral by 2050 in line with the UN’sdevelopment goals. Second, we also see thequality of air of increasing importance and wewill invest increasingly in new cutting-edgetechnologies that can monitor and measure airquality to meet tenants’ demands. lPATRIZIA is a European investment managerwith 24 offices worldwide.56 Real Asset Insight | Issue 2 July 2020
Strategy – Patrizia‘It was alreadya trend prior toCovid-19, but webelieve this crisisis going to makeESG even morecentral to businessstrategies.’Rikke Lykke, PATRIZIAIssue 2 July 2020 | Real Asset Insight 57
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Real Asset Insight | Issue 2 | July
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INTRODUCTION6 Talking PointsThought
Page 6 and 7: Connectinga VirtualCommunityAs the
Page 8 and 9: Tenants willingto pay for ‘reliab
Page 10 and 11: Sharing unique insight, analysis, r
Page 12 and 13: Adobe Stock/rarrarorroEurope braces
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Page 18 and 19: EVENTS CALENDAR 2020Real Asset Live
Page 20 and 21: Crisis set to slow rental growth,bu
Page 22 and 23: Pandemic uncorks thee-commerce geni
Page 24 and 25: Insight & Strategy - E-commerce & l
Page 26 and 27: Strategy - GARBE Industrial Real Es
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Page 30 and 31: ‘The crisis has not changedItaly
Page 32 and 33: ‘The question isnot about whentou
Page 34 and 35: Getting back to businessAdobe Stock
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Page 38 and 39: Experts express confidence inGerman
Page 40 and 41: Insight & Strategy - GermanyResiden
Page 42 and 43: ‘Some difficulties but nocollapse
Page 44 and 45: Senior Housing andHealthcare Associ
Page 46 and 47: Private sector involvement ininnova
Page 48 and 49: Connecting aVirtual Exhibition& Con
Page 50 and 51: Crisis could lead toa green recover
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Page 54 and 55: Assisted living set to grow assecto
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Page 64 and 65: Insight & Strategy - European Debt
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Real Asset Insight #6 June 2020

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