"Canada, as a whole, is doing exceptionally well in developing resiliency. The top three most-resilient cities in Grosvenor's Resiliency index are Toronto, Vancouver and Calgary. For investors in property and real estate, it makes Canada a very sound long-term investment."
|"Vancouver false creek". |
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Grosvenor's Resilient Cities study is being released at the Urban Land Institute's Spring Meeting in Vancouver, Canada, April 8-10, 2014. ULI CEO Patrick Phillips said:"Grosvenor's research will help greatly in advancing the dialogue among the public and private sectors on how to make cities less vulnerable and more resilient. In our view, environmental sustainability, community liveability and economic prosperity are all necessary components of long-term city resiliency. This report will inform ULI's ongoing work regarding the resiliency and adaptability of cities around the globe."
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"We are not suggesting that you shouldn't invest in those cities that place lower down the rankings, but the research highlights the risks those cities face and enables more informed decision making. In some cases there could be greater opportunities, especially where a city has made a step change in its commitment to improving its adaptive capacity." Mark Preston, CEO, Grosvenor Group said:
"Grosvenor has been investing in and developing real estate for over 300 years and a holistic understanding of the cities that we are active in is integral to the success of our business. It is certainly reassuring to see that we have long been active in some of the world's most resilient cities and this research gives us insight into where we may want to have a presence in the future."
Key findings from the research are:
- The most resilient cities are in Canada, with Toronto, Vancouver and Calgary taking the top three spots respectively.
- American cities are relatively vulnerable, but their capacity to adapt makes them fairly resilient. The lowest ranked cities are also those with the highest population forecast figures.
- The middle group of cities, ranked 11 to 30, are fairly close to the top 10 in their scores so must be considered resilient. Most European cities fall into this group. London is ranked 18th.
- The weakest 20 cities are in emerging markets and are considerably weaker than the top 30. Eight of these are in the so called BRIC countries. So far, blistering economic growth has not fed through into the quality and long term resilience of these cities.
If you are investing with a short-term perspective, a portfolio of the resilient cities won't necessarily be less volatile; in fact you would have a more volatile portfolio if you only invested in the top five cities as they are very similar and moving in the same cycle. However, investors with a long-term perspective, such as pension funds or sovereign wealth funds can deploy capital in these cities and be confident that if they take a knock they will bounce back in a relatively short term. These cities are safe havens in a rapidly changing global environment."
Grosvenor's living cities approach recognises that the future success of our business is tied to the sustainable growth of the cities in which we invest, and understanding a city's resilience, its ability to avoid or bounce back from an adverse event, is an integral part of this.
A copy of the report, including the final resilience rankings, is available online at www.grosvenor.com.
Grosvenor is a privately-owned property group with offices in 19 of the world's most dynamic cities. We have regional investment & development businesses in Britain & Ireland, the Americas and Asia Pacific. Our international fund management business operates across all these markets and also Continental Europe. We also have indirect investments, managed centrally. As at 31 December 2012, the Group had total assets under management of £12.2bn. Unusually for a private company, Grosvenor publishes a full Annual Report & Accounts, available at: www.grosvenor.com
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