CANNES, FRANCE-An opening-day session at MIPIM here on Tuesday featured a cross-border spitting contest and a dose of recovery reality. "Toward a Better Investment Marketplace" featured property pros from Germany, Italy, France, Asia and the UK discussing the need for greater transparency in the post-depression marketplace.
The one-ups-manship came in initial boasts from each of the country representatives that their countries each had the best structures to ensure transparency, but as the conversation deepend each agreed that something better could be done. All ultimately agreed that, without better oversight of transparency--especially as it pertains to the flow of debt capital--we as an industry have guaranteed a replay of the debt crisis.
Italy kicked of the spitting-contest when Andrea Cornetti of Fimit proclaimed flat-out that "Italy was always transparent." That was echoed in opening salvos by virtually all of the other players. But then Cornetti confessed that in certain aspects of transactions, the country could use tighter oversight, and again, his fellow speakers came clean.
Rupert Nabarro of IPD moderated the session, pointing out that there is no such thing as a risk-free investment. The days of buying real estate directly are over, he continued, and the increasing complexity of investment, including the variety of players involved--from opportunity funds to REITs--demands that oversight be examined and strengthened. "Despite what people were saying," prior to the downturn," he joked, "transparency is not for sissies."
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