#3 BREXIT WHAT WILL ITS IMPACT BE ON THE EUROPEAN REAL ESTATE MARKETS? - Knight Frank
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#3
BREXIT
WHAT WILL ITS IMPACT BE ON
THE EUROPEAN REAL ESTATE MARKETS?
BREXIT
UNDER PRESSURE #3
2 3
6-9 10 - 13 14 - 18 19 - 23
TIMELINE OF A PLANNED ANALYSIS OF BREXIT FOCUS ON WHERE DO BREXIT'S
BREAK-UP RELATED MOVES FINTECHS "EXILES" GO?
INTERVIEW BREXIT AND
SMART LENDERS AM THE DUBLIN MARKET
24 - 29 30 - 31 32 - 33
BREXIT AND BREXIT AND BREXIT AND THE
THE PARIS MARKET THE LONDON MARKET RESIDENTIAL MARKET
INTERVIEW INTERVIEW
CHOOSE PARIS REGION MARK HARVEY
KNIGHT FRANK
BREXIT
UNDER PRESSURE #3
4 5
Contact
David Bourla
Chief Economist
& Head of Research France
+33 (0)1 43 16 55 75
david.bourla@fr.knightfrank.com Scan this QR code and
check out our "Brexit: Under
Authors Pressure" playlist
David Bourla
Chief Economist
& Head of Research France
Annabelle Vavasseur
Research analyst France Just over a year ago, Michel Barnier, the European Union's chief also be reaffirmed: the rising number of movements carried
negotiator, said that "preparations for a no deal [were] more out by Fintechs, companies that combine finance and digital
london market focus important than ever". Theresa May, then Prime Minister of the technology and to which we are devoting part of this study,
United Kingdom, faced the discontent of the Tories and the and the high number of projects identified outside the finance
Faisal Durrani opposition. Having failed to get her country out of the EU by sector (lawyers, audio-visual and pharmaceutical companies,
the 29th March 2019 deadline, she was forced to resign in May. etc), illustrating the impact of Brexit on several sectors of the
Head of London Commercial Research
Since then, things have moved quickly. Installed at 10 Downing economy.
dublin market focus Street since July 2019, Boris Johnson was the big winner of the
John Ring December parliamentary elections, congratulating himself on At first glance, the ranking of the cities attracting the most
having obtained "a powerful new mandate to get Brexit done". Brexit-related movements has changed little in one year.
Head of Research Ireland Dublin remains firmly in first place, ahead of a quartet
What is the current situation? The UK's exit from the EU, comprising Paris, Luxembourg, Amsterdam and Frankfurt.
© Knight Frank SNC 2020
which became official on 1st February 2020, has by no means However, two cities stand out for their growing popularity:
Knight Frank Commercial Research provides strategic advice,
consultancy services and forecasting to a wide range of removed all uncertainty. Talks on a free trade agreement Amsterdam, which has built its success on its ability to attract
clients worldwide including developers, investors, funding
organisations, corporate institutions and the public sector. All between London and Brussels have just begun and the companies with a variety of profiles and is leaving Frankfurt
our clients recognise the need for expert independant advice transition period, initially planned to last eleven months, could behind more markedly, and above all Paris, which has caught
customised to their specific needs.
Knight Frank research reports are also available at
well be extended1. Many issues will be negotiated, with the up with Luxembourg and is therefore in second place behind
KnightFrank.fr. main challenge being the alignment of British and European Dublin. Although this breakthrough has resulted in new office
This report is published for general information only. Although regulations. The subject is particularly sensitive for financial space being let or purchased to house Brexit's "exiles", the
high standards have been used in the preparation of the
information, analysis, views and projections presented in companies. Many of them have already anticipated the risks increase in activity remains modest in terms of the Greater
this report, no legal responsibility can be accepted by Knight
Frank Commercial Research or Knight Frank SNC for any loss
associated with Brexit by obtaining one or more approvals from Paris Region commercial real estate market as a whole. What
or damage resulting from the contents of this document. As local regulatory authorities, or by opening offices in European will happen in the coming months? What are the trends in
a general report, this material does not necessarily represent
the view of Knight Frank SNC in relation to particular Union countries. A total of 530 actual or potential relocation other European cities?
properties or projects. Reproduction of this report in whole
or in part is allowed with proper reference to Knight Frank
projects have been identified since the referendum in 2016.
Commercial Research. This number could have been even higher if political uncertainty These are some of the topics addressed in this third edition of
Knight Frank SNC is the French branch of Knight Frank LLP. had not encouraged a wait-and-see attitude among companies our "Under Pressure" report series, the content of which was
Knight Frank LLP is a limited liability partnership registered
in England. in 2019. produced in collaboration with Knight Frank's international
Pictures: ©Shutterstock / ©Pexels / ©Unsplash. research teams and includes, for the first time, an analysis of
Cover : freely inspired by the work of Shepard Fairey The formalisation of Brexit, and the expected completion of the Brexit's impact on the luxury residential market. Regarding the
"Celebration Day", 18 December 2012.
transition period, should result in the announcement of new design, it once again pays tribute to almost half a century of
movements and, above all, in the implementation of projects British music and popular culture.
Connecting already initiated by companies to ensure their access to the
common market. Two of the trends seen last year should Enjoy reading and listening!
people & property,
perfectly.
1
Study completed on 1st March 2020.
BREXIT
UNDER PRESSURE #3
6 7
TIMELINE OF A PLANNED BREAK-UP
BREXIT
UNDER PRESSURE #3
2nd March 31st
December
13th July Start of talks on a
8 free trade agreement End of the transition 9
Theresa May replaces David between the UK and period, if it is not
2016 Cameron at 10 Downing Street.
She is now responsible for 2017 29th April 1 February
st
the EU. extended.
implementing the referendum The United Kingdom is no longer
result . At a special summit, EU
a member of the EU. As a non-
leaders show their unity
EU member, it will no longer be
by unanimously adopting
involved in EU decision-making
broad guidelines to be
processes, but will still have
used during negotiations
23rd June 29th with the UK.
access, during a transition period
of eleven months, to the internal 30th June
British voters end,
March 2020 market and the customs union.
The United Kingdom
by 51.9%, 43 years Article 50 of the has until that date to
of European Union Treaty on the EU is #3 inform the EU of its
membership. invoked, and the UK willingness to extend
exit process officially BREXIT
WHAT WILL ITS IMPACT BE ON
THE EUROPEAN REAL ESTATE MARKETS?
the transition period
began. from one to two years.
29th January Under
8th December Pressure
First agreement between the UK and After a favourable vote #3
27 July
th the EU on the terms of the divorce
(final settlement paid by London,
by the British MPs and its
promulgation by Queen
preservation of the rights of British and Elizabeth II, the Brexit deal
Jean-Claude Junker, President of
the European Commission, puts European citizens, Irish border). Phase is ratified by the European
Parliament.
28th October
the Frenchman Michel Barnier in II of the negotiations begin.
charge of negotiations with the Approval by the EU of a
UK, pursuant to article 50 of the further postponement of
Lisbon Treaty on the EU. Brexit until 31st January 2020.
The following day, the British
Parliament gives the green
light for early elections. 17-19th
October
12th July 2018 London and the EU announce
The white paper published by the 12 December th a new agreement on Brexit.
British government, setting out its
plans for the post-Brexit period, is
19th March Overwhelming Conservative
However, the House of
Commons votes on an
amendment forcing the British
a failure. It is coldly received by the The UK and the EU agree victory in the general election.
Prime Minister to ask for a
EU and also provokes displeasure on the terms of a non- Boris Johnson is pleased to
further postponement of the
in the City, as the paper waives the renewable post-Brexit obtain "a powerful new mandate
divorce.
UK’s right to benefit from a financial transition period which, in to get Brexit done".
passport. the event of a deal, will last
until 31st December 2020.
20th 29th March
September 24th May
25th The British Parliament rejects for the
During the Salzburg summit,
the EU rejects the British plan November third time the deal negotiated by
Theresa May. This day also marks the
Theresa announces her
resignation the day after
(known as “Chequers”) that they end of the two-year period provided
Theresa May and the Heads of the European elections
consider to be incompatible with for in Article 50 of the EU Treaty in
the integrity of the single market. State and Government of the Under which the procedure for exiting a
in the United Kingdom.
Union endorse an exit deal.
2019 Pressure member state must be completed.
#2
Under
Pressure
#1
13-15th November 12th March 11th April 24th July
BREXIT
UNDER PRESSURE
#2
Theresa May and the EU reach a compromise. After an initial rejection in January, BREXIT
WHAT WILL ITS IMPACT BE
The Brexit date is Boris Johnson is appointed
postponed to 31st
ON THE EUROPEAN
Among the major breakthroughs is the the British Parliament once more Prime Minister and promises
REAL ESTATE MARKETS?
possibility of a 'backstop' that would prevent rejects the deal negotiated by October 2019. to take the United Kingdom
the return of a physical border between Theresa May. For Michel Barnier, out of the European Union
Brexit :
What will its impact be on the European real estate markets? the two Irelands, by keeping the UK in the preparations for a no deal are "now by 31st October 2019, with or
European Customs Union. more important than ever". without a deal.
BREXIT
UNDER PRESSURE #3
10 11
PERSISTENT UNCERTAINTY the mutual recognition of British and European regulations
that is at the heart of the discussions between London and
In the previous two editions of our Brexit report series, we Brussels. The City thus wishes to perpetuate a system of
indicated that it was difficult to accurately know the number equivalence in order to compensate, at least partially, for the
of movements and job gains associated with the UK's exit loss of the famous financial passport, and to offer visibility to
from the European Union. Indeed, many companies had not companies based there. However, these hopes were quickly
yet obtained a license from the local regulatory authorities, dashed: in a speech delivered in Strasbourg on 11th February
validated their choice of destination or decided on the 2020, Michel Barnier, the EU's chief negotiator, pointed
exact number of employees to be relocated. Although out that the United Kingdom would not benefit from any
Brexit is now official, this difficulty in measuring the preferential treatment in this area, as the Union wanted to
consequences will persist until the framework for future keep control over the granting of equivalence systems and
ANALYSIS OF BREXIT relations between London and Brussels is fully clarified. retain the possibility of withdrawing them unilaterally and
“
The uncertainty could even continue beyond 31st December without delay.
RELATED MOVES 2020, the date on which the transition period is theoretically
due to end. Negotiations between London and Brussels to "I would like to make it clear to certain UK officials that
bring to an end almost half a century of coexistence look there should be no illusion on this issue: there will
set to be complicated by the infinite number of issues to be be no general, blanket or permanent equivalence on
dealt with, in sectors as varied as security, energy, fisheries, financial services."
transport and, of course, finance.
Michel Barnier, excerpt from a speech to MEPs in
Strasbourg on 11th February 2020.
Despite the uncertainty, the monitoring system set up
by Knight Frank since the 2016 referendum still makes
it possible to estimate the impact of Brexit on business
QUARTERLY CHANGE IN THE NUMBER OF BREXIT-RELATED MOVES
mobility. Some 530 movements, certain or potential, have SOURCE: KNIGHT FRANK, DEFINITE AND POTENTIAL PROJECTS OR ACTUAL
already been identified in Europe. Following ten in 2016, 109 RELOCATIONS. AS AT 1ST MARCH 2020.
were recorded in 2017 and 222 in 2018. This acceleration
continued in the first quarter of 2019 with 73 movements
recorded - the highest level ever seen in a quarter since the Q3 2016 4
referendum - before slowing down sharply in the following
Q4 2016 6
three quarters. Over 2019 as a whole, 162 projects were
identified, down 27% on the previous year. This slowdown Q1 2017 16
confirms the irregularity of Brexit-related movements over
Q2 2017 25
time: almost 56% of the 530 movements recorded were
between the beginning of 2018 and the end of the first Q3 2017 38
quarter of 2019, compared with 22% between the June 2016
Q4 2017 30
referendum and the end of 2017, and 22% since the second
quarter of 2019. After an initial period of hesitation, most Q1 2018 40
companies have taken initial actions to protect themselves
from the risks associated with Brexit - the priority being Q2 2018 60
to remove regulatory uncertainty by obtaining licenses to 62
Q3 2018
operate within the European Union. As for the slowdown in
the number of movements recorded between the spring of Q4 2018 60
2019 and the beginning of 2020, this is no doubt due to the
Q1 2019 73
wait-and-see attitude of some companies, given the delays
in Brexit, negotiated last year between London and Brussels Q2 2019 46
in order to avoid a no deal scenario.
Q3 2019 24
This wait-and-see attitude may not continue into 2020. Q4 2019 19
After many months of political uncertainty, Brexit has indeed
JAN-FEB 27
become inevitable. The motivation of companies will be
2020
all the stronger as a hard Brexit cannot be ruled out until
the negotiations are concluded. In the world of finance, it is
BREXIT
UNDER PRESSURE #3
12 13
FINANCE STILL BREAKDOWN OF BREXIT-RELATED MOVES BY ACTIVITY (OF THE TOTAL NUMBER, IN %)
postponement of the formalisation of Another trend that could also gain
AT THE FOREFRONT SOURCE: KNIGHT FRANK, DEFINITE AND POTENTIAL PROJECTS OR ACTUAL RELOCATIONS. AS AT 1ST Brexit and the transitional arrangements momentum, but this time with less
MARCH 2020. put in place by some countries have effect in terms of job creation, is that
Finance, which is at the heart of also maintained the status quo. In of an increase in the number of
the subject of regulatory alignment Luxembourg, a law passed in April 2019 acquisition transactions enabling
between the UK and the EU, is the provides that British companies could, non-European companies to facilitate
sector with the largest number of Finance under certain conditions, be authorised their access to the common market.
64%
Brexit-related movements. Its share, Other to continue their activities in the Grand Several examples have already been
which was 72% a year ago, is now 9% Duchy for a period of 21 months in the identified, such as the acquisition by
Insurance
64% (337 actual or potential projects 12% event of a no deal Brexit. The EU was Australia's EML of Ireland's Prepaid
out of the 5230 identified since 2016). fairly conciliatory, but nevertheless Financial Services in the Fintech
Legal/Advisory
The balance relates to a multitude of 6% reiterated that obtaining licences must sector, or the takeover of Germany's
other activities, for which regulated be accompanied by the establishment MainFirst Bank by the American
access to the common market is often of genuinely capitalised subsidiaries Stifel in the investment banking
strategic. This is of course the case employing a significant number of sector. Finally, in the legal field, a
Services
“
for insurance (12% of all Brexit-related employees. Smith & Williamson study published
3%
movements), and the legal professions in November 20192 indicated that
(6%), as illustrated by the sharp rise in “In some cases authorisations have 80% of the top 20 Irish law firms had
the number of British lawyers registered Audiovisual been granted, but that it is not been approached by one of their
3%
with the Dublin Bar (nearly 4,000 since clear that the associated transfer UK competitors in the context of a
the 2016 referendum, according to the of assets, skilled staff and risk possible merger or acquisition.
Law Society of Ireland) and several Pharmaceutical functions associated with the newly
high-profile arrivals (Dentons, Pinsent 3% authorised business have been
Masons, etc.). However, the choice of implemented to their fullest extent.
location for law firms, whether British, It is imperative that they have the
American or Asian, is not limited to capability to manage the risks they
the Irish capital: Frankfurt (Fieldfisher, generate from the first day after the
Nishimura & Asahi), Brussels (Bristows, withdrawal of the UK”
Reed Smith), Luxembourg (Ashurst, by the fact that while the UK hosted America headquarters on rue La Boétie.
Communication of the European
Goodwin) and Paris (Kirkland & Ellis, half of all channels broadcasting in EU At almost 90%, the high share of the Banking Authority on the UK
Sideman & Bancroft) have also been countries in 2018, this share fell to just financial sector in the overall Brexit- withdrawal from the EU, 8th
October 2019.
chosen as a result of Brexit-related over a third in 2019, particularly to the related job gains expected in Paris
movements. benefit of the Netherlands, Spain and is therefore not surprising. The trend
the Czech Republic1. is the same in other major European Over the coming months, the
Other activities concerned vary greatly. cities, with the notable exception of formalisation of Brexit and the
Among them is the pharmaceutical The reduction in finance's share of Amsterdam, where EMA expatriates expected conclusion of the
industry, whose movements have all movements needs to be put into (nearly 800 ultimately) make up the bulk negotiations between London and
mainly targeted the Netherlands due to perspective: this sector still accounts of the Brexit exile ranks. Brussels will therefore result in
the move of the European Medicines for a very large majority of Brexit-related new movements and, above all, in
Agency (EMA) to Amsterdam. In the recruitment, whether for positions HOW SIGNIFICANT ARE the completion of projects already
same country, several NGOs have already filled or to be filled. It is in the BREXIT-RELATED JOB GAINS? initiated by companies with the aim of
relocated their teams to The Hague, finance sector, and the banking sector securing their access to the common
an important place for international in particular, that the most job-creating That said, the actions taken by market. This will most probably result
law (Euclid network, Field Ready, movements have also been identified. companies to protect themselves in an increase in the number of jobs
Mercy Corps, Redress, etc.). Finally, Paris provides a good example of this, from the effects of Brexit have above created by Brexit, as well as in new
the last few months have confirmed with the 200 or so employees of the all, and quite logically, focused on leases of office space to house these
the restructuring of the audio-visual European Banking Agency (EBA) who obtaining approvals and on initial new employees.
sector due to the need for international have been based in La Défense since targeted recruitment to prepare new
channels to continue to broadcast their June 2019, and the 400 people who will locations, rather than on recruiting
content within the EU. This is evidenced be accommodated h in the new Bank of large contingents of employees. The
1
Source: European Audiovisual Observatory, January 2020. 2
Source: Smith & Williamson, Smith & Williamson Annual Survey of Irish law Firms 2019/2020.BREXIT
UNDER PRESSURE #3
“
14 15
“Financial services faces challenges similar to other Although the number of Fintech movements increased
sectors to secure the specialist technology and digital slightly compared to the previous edition of our Brexit study,
talent that it requires with digital skills now a utility across the hierarchy of the main destinations remained almost
the entire economy. This war for talent will continue and unchanged: Dublin retains its leading position with 23% of the
intensify” actual or potential projects identified in Europe, the majority
of which are Fintech projects originating in the United States.
Financial services skills taskforce, final report,
TheCityUK, January 2020. The next most popular locations are Paris (15%), Luxembourg
(14%), Amsterdam (13%) and Vilnius (10%). The remainder is
Regulation is another key issue. Many fintech companies are spread among several cities including Brussels, Madrid, Berlin
therefore multiplying the number of licence applications for and Helsinki.
continued access to the EU market. Depending on Fintech's
characteristics and goals, two statuses regulated by the PSD2 Each of these cities has a number of advantages to attract
directive are possible. One concerns the licence for electronic Fintechs. For example, Dublin is the economic capital of a
money institutions (payment or foreign exchange transactions, country, Ireland, which is naturally favoured because of its
issuing or acquiring payment instruments, etc), the other for geographical, cultural and regulatory proximity to the British
payment institutions (credit card processing service, service market. As the main beneficiary of Brexit-related movements,
to foreign exchange and payment companies, etc). This is the financial ecosystem has also been significantly
FOCUS ON FINTECHS a fundamental difference that explains the wide range of strengthened since 2016. Finally, the city is also a stronghold
applications submitted to the regulators. Some Fintechs
A few weeks after Brexit was officially implemented, there are of the largest leases in London at the end of 2019. The scale have also increased the number of licence applications to PREFERRED DESTINATIONS FOR FINTECHS WITHIN THE CONTEXT OF
BREXIT SOURCE: KNIGHT FRANK, DEFINITE AND POTENTIAL PROJECTS OR
still a lot of questions for the finance sector in the UK. London of fundraising also reflects the lead taken by the United target different geographical areas. Revolut is a perfect, and
ACTUAL RELOCATIONS. AS AT 1ST MARCH 2020.
will certainly not lose its status as one of the world's leading Kingdom. Innovate Finance thus estimates their total at 4.9 particularly interesting, example: whilst remaining in London,
financial centres, despite the relocation movements of the billion dollars in 2019, i.e. 58% of the investments made in the company will also be based in Vilnius, which will serve as
18
largest British banking institutions such as HSBC and Barclays. Europe and an amount 85% higher than that raised in France a gateway to Central and Eastern Europe, as well as in Dublin
In another newer and less developed field such as Fintech, over the same period! as part of its expansion into Western Europe. As such, Brexit is
what will the consequences of Brexit be? The subject is all not so much challenging the pre-eminence of British Fintechs,
DUBLIN
the more important as these innovative companies, relying on WHAT IMPACT HAS BREXIT HAD but should instead allow a shift in the balance in favour of
new technologies to rethink financial and banking services, ON BRITISH FINTECHS? several other European cities.
are booming in London and heavily dependent on a pool
of British but also foreign talent – according to TheCityUK, London remains a major financial centre, the Tech ecosystem A HIERARCHY IS EMERGING
12
PARIS
the latter account for 28% of finance jobs in London, including is large and mature, and it will be particularly difficult
17% for EU nationals. So will UK Fintechs continue to be to dethrone it in terms of fund-raising and other areas. This relative shift of power is illustrated by the 79 Brexit-
11
attractive to the best international professionals? And how Moreover, the growth of the sector is amplified by the related Fintech movements recorded by Knight Frank
will they access the vast EU market after the London-Brussels presence of the world's major digital leaders, including the between the 2016 referendum and the beginning of 2020.
negotiations? famous GAFA. Facebook recently announced the creation Fintechs therefore account for only 15% of all Brexit-related LUXEMBOURG
of a thousand new jobs in London, in part to fight against movements, far behind traditional finance. Similarly, Fintech
LONDON, THE UNDISPUTED EUROPEAN undesirable content. This example of massive recruitment projects generally concern only a limited number of jobs. For
CAPITAL OF FINTECHS puts the finger on one of Brexit's main challenges for British
Fintech: its ability to continue to attract and retain the best
example, they are expected to bring only 250 new jobs to
Paris, compared to the 3,500 currently expected in the French
10
AMSTERDAM
Although Brexit may have slowed economic activity and foreign talent. In order to develop, these companies need capital due to Brexit. However, the low proportion of Fintech
fostered a climate of uncertainty that investors generally a workforce that is large enough to keep pace with the jobs should be put into perspective: while the workforce of
abhor, the UK nevertheless remains well ahead of other
European countries. For example, the Fintech sector employs
exponential growth of their business, and qualified enough to
ensure their technological edge. Growing uncertainty about
banks has been shrinking steadily over the years (-18% in
Europe between 2008 and 2018 according to the ECB), the 8
almost 60,000 people in the UK, about twice as many as in the mobility of international workers and visa arrangements number of Fintech jobs is growing steadily. This is the case VILNIUS
France and Germany. Moreover, the country already has 7 could thus become a major obstacle, especially as the UK of N26, which doubled its global workforce between 2018
5
Fintech unicorns, compared with five in the rest of Europe, economy and London's economy in particular are already and 2019 to reach 1,500 employees. Finally, and contrary to
which include N26 (Germany), Klarna (Sweden), Adyen facing a severe shortage of talent. the trend observed in other sectors, the number of Fintech
(Netherlands) and Ivalua (France). Among the British Fintechs, Brexit-related movements has grown steadily over the years, BRUSSELS
some in particular stand out, such as Revolut which, with 500
million dollars, has just completed the biggest fund-raising in
from 18 projects in 2016 and 2017, to 24 in 2018 and 37 since
the beginning of 2019. 15
the history of European Fintechs, and Monzo which, by renting OTHER
just over 10,000 sq m of office space in the City, signed oneBREXIT
UNDER PRESSURE #3
16 17
of the tech giants, since the European headquarters of Google
and Facebook are located here, as well as more than 2,000
business climate in recent years, particularly in terms
of taxation. The PACTE law has also contributed to this
INTERVIEW Following the June 2016 referendum on Brexit,
Microsoft employees. Amsterdam, which recently attracted improvement with, for example, the introduction of a legislative you quickly considered moving your London
Tradeweb Markets, and Luxembourg, chosen by Alipay to set framework for fundraising in ICO (Initial Coin Offering) operations to France. What were the main criteria
up its European hub, are also home to many Tech companies cryptocurrency. These regulatory changes have contributed that led you to choose a location in France, and
and also benefit from an advantageous fiscal and regulatory to Fintech's growth in France: in 2019, fundraising reached more specifically in Paris?
framework. Finally, Vilnius stands out from these other cities nearly €700 million, with an average transaction doubling from
because the Fintechs there represent the bulk of Brexit- one year to the next and five transactions in excess of €50 We set up in Paris in October 2017 after obtaining AMF approval
related movements, and significant ones at that (Google Pay, million, including Wynd, Payfit and Younited Credit. Three new for our management company. We moved our activities,
TransferGo, Revolut, etc.). The local authorities and economic transactions were completed in January, including Qonto's including the management of our investment vehicles, on 1st
players have made Fintechs a priority, between tax aid, record raising of 104 million euros. The trend therefore January 2018. As our activity is regulated, we are required to
support and the fluidity of the regulatory framework and it remains very positive, so much so that Kat Borlongan, Director have a European passport for the management and marketing
takes only three months, for example, to obtain a licence. of the French Tech Mission, recently announced that France of our Luxembourg fund. We therefore took the decision in June
Lithuania also benefits from a well-trained workforce that could have 25 unicorns by 2025! This is an ambitious but not 2017 to leave the United Kingdom to set up the company in a
is fluent in English and whose cost is much lower than the unrealistic figure given the strong growth of some national European Union country. The choice of Paris was a natural
SMART LENDERS
European average. champions. Indeed, seven Fintechs belong to the Next401 one as the 4 partners of Smart Lenders AM are French, and
(Younited Credit, October, Ledger, etc) and six others have we all have a long professional experience in Paris, hence our
What role do Paris and France play within this context?
Entrepreneurs have been benefiting from a more favourable
joined the FT1202 (Lemon Way, LGO Group, Lydia, etc).
ASSET networks of clients and contacts in the financial industry, as well
as a good knowledge of the regulatory framework and the AMF.
1
2
Index launched by the French government in 2019 and comprising a selection of 40 French start-ups with high potential.
80 start-ups have been added to the Next40, constituting the FT120 programme. These companies benefit from tailor-made support to accelerate their growth in
MANAGEMENT We are based on Boulevard Haussmann, close to Saint
Augustin and Parc Monceau, where many leading banks and
France and abroad.
Erich Bonnet, CEO prestigious management companies are located. We thought it
FINTECH UNICORNS IN EUROPE, VALUATION IN $ BN et Fabien Jullia, Partner, Managing would be easier for their clients to come and see us!
SOURCE: CB INSIGHTS 2020
Director
What is your view on the welcome conditions
offered by France to entrepreneurs, in the Fintech
SWEDEN
Please introduce Smart Lenders Asset sector in particular?
Management. What are your areas of expertise
$5.5B
and what is your presence in the European We waited until June 2017 to take the decision to move our
UNITED-KINGDOM markets? activities to France because we first wanted to be sure of
the French political context. The new government seemed
Smart Lenders AM is an asset management company to us to be favourable to business and entrepreneurs in
$3.5B $3.5B $2.6B
specialising in the management of loan portfolios acquired general, particularly from a tax point of view, for example with
through online platforms. The company was launched in 2014 the introduction of the "flat tax" on capital income. These
in London with a team of 4 people. Smart Lenders AM has changes have brought France back to a good average at a
GERMANY
raised more than $350M from private and institutional investors European level, thereby making it competitive once again for
$2B $1.7B $1.1B and has experienced an average annual growth of 65% in entrepreneurs wishing to set up in the country. Furthermore,
turnover over the last three years. We began our investments public and regulatory bodies, such as the AMF, the Greater
$3.5B $1.8B
through US platforms with an algorithmic approach to risk Paris Region authorities and the Choose Paris Region agency,
assessment and loan selection. We adopted this approach provided us with strong support and facilitated our move
in order to be able to analyse a large number of small loans, to Paris. In addition to these factors, the interest shown
FRANCE granted to consumers and then to small businesses in the today in technology companies (including Fintech), and
$1.2B $1B United States. Since 2019, we also invest in loans to very small the development of innovation in France by the public
businesses and small and medium-sized businesses through authorities and the general public, is a real support factor.
$1.1B
European platforms in France, Germany and Switzerland.
Did you also consider other cities in other
The origin of Smart Lenders AM stems from the desire to countries? If yes, which ones and why?
provide European investors with a turnkey solution to access
the growing online lending market. Our investors are European We did indeed consider other cities, but our choice was
and we currently manage a fund under Luxembourg law and quickly decided on Paris for quite natural and personal
will also soon manage a fund under French law. reasons, as the company's employees and partners wereBREXIT
UNDER PRESSURE #3
18 19
mainly French. Moreover, Paris remains an important financial You recently obtained the French status of
capital in Europe and is probably the main city, after London, Young Innovative Company for your research on
to benefit from a worldwide influence in the cultural, the integration of artificial intelligence in your
political, commercial, tourist and nowadays technological investment activities. Is France a step ahead
fields. We therefore generally have little difficulty in bringing on this subject? Do you have other ongoing
our clients to Paris! development projects?
In the short and medium term, what are your We were granted Young Innovative Company status in the
growth objectives in France and abroad? spring of 2019, specifically for the work carried out by our
researchers. France has a long tradition of supporting
Since our move to Paris, we have recruited 6 new employees and showcasing its scientific research through incentive
and we are quite proud to mention that one of them is British and funding models that support research undertaken by
and has chosen to leave London to join us in Paris. He private companies. This enables young companies like ours
previously worked for Europe's largest small and medium- to support a research initiative that might otherwise be too
sized business lending platform. costly for us. WHERE DO BREXIT'S
"EXILES" GO?
In the short to medium term, we plan to strengthen our Our research aims to use artificial intelligence tools to
research and analysis activities in order to further develop improve and even automate the credit analysis of small APPARENT STABILITY behind the French capital at the end of 2018. The second is
our models and technological tools. These tools allow us to companies and thus enable a faster and less risky investment Amsterdam, which has also widened the gap with the German
increase our investment capabilities and economies of scale, decision than with more traditional analysis. The ultimate At first glance, the ranking of European cities attracting the city and confirms its ability to attract companies with a variety
without having to increase headcount as much as we had objective is to reduce the cost of investment in order to most Brexit-related movements has changed little since the of profiles such as finance (52% of all certain or potential
originally anticipated. Our efforts are therefore focused on pass on these savings to the various stakeholders, and thus beginning of 2019. Dublin, Paris, Luxembourg, Amsterdam, movements identified in the city, including 16% from Fintech),
these activities, in the French market only for the time being. enable a more widespread financing of small companies. Our Frankfurt, Brussels and Madrid remain the most active markets, and also the pharmaceutical sector (13%) and the media (11%).
projects generally focus on this goal, making quantitative far ahead of another group of cities comprising Vilnius, Berlin,
Talent is a scarce commodity in the employment analysis tools more reliable to reduce processing costs Munich, Cork and Milan. This apparent stability is particularly WHAT DOES THE FUTURE HOLD
market. Do you feel this tension when searching and providing more credit solutions to a larger number of noteworthy in the case of Dublin, which has maintained FOR EUROPEAN FINANCE?
for candidates? Do you think that real estate companies requiring them. its leadership since the launch of Knight Frank's Brexit
has a role to play in attracting or retaining movements monitoring. However, two cities stand out for The relocation of jobs from London and the, as yet
employees? their growing appeal. The first, Paris, has caught up with and relative, weakening of the British capital seems likely to
recently overtaken Luxembourg and is now markedly ahead benefit EU cities, with gains in jobs and images already
The search for talent is indeed a real challenge, but one that of Amsterdam and Frankfurt, while the latter was still close evident. But what about in the longer term? While the Top
seems less of a challenge in Paris than in other smaller cities.
We are fortunate to be able to propose an innovative and
sound project in a sector that is now attracting a lot of talent. NUMBER OF BREXIT-RELATED MOVEMENTS, BY CITY / BY COUNTRY
SOURCE: KNIGHT FRANK, DEFINITE AND POTENTIAL PROJECTS OR ACTUAL RELOCATIONS. AS AT 1ST MARCH 2020.
We allocate a significant part of our resources to fundamental
research, which enables us to attract scientific professionals
specialising in machine learning or artificial intelligence. In
fact, one of our researchers is currently preparing a PhD in this
DUBLIN PARIS LUXEMBOURG AMSTERDAM FRANKFURT
field. The location of our offices as well as the quality of our
premises obviously have a role to play, although we are in a
somewhat challenging situation where we have to combine
financial backgrounds, which are more likely to be found 117 82 78 64 53
in western Paris and the CBD, with technical and scientific
backgrounds, which are nowadays more concentrated in
the east and the "upcoming" districts. But so far, we have
managed to take advantage of this culture clash!
126 85 78 76 68
IRELAND FRANCE LUXEMBOURG NETHERLANDS GERMANYBREXIT
UNDER PRESSURE #3
20 21
5 cities account for almost 75% of all actual or potential than 100,000 job cuts projected since the beginning of centre compared to 34% for the British capital,
Brexit-related movements, their geographical distribution 2019 worldwide. The latest announcements include the a clear reversal of the situation compared to the
nevertheless creates a more complex and segmented forthcoming loss of 35,000 jobs at HSBC, the majority of same survey one year earlier (42% and 53%). When
European landscape. This trend towards fragmentation, which will be in the Americas and Europe, and the relocation asked which city will dominate the global landscape
which the financial crisis has already encouraged, obviously of the structured products division, currently based in in the next five years, respondents see New York
“
raises the question of the future of European finance. London, to Asia. Having lost nearly 15% of its workforce and London losing ground. Paris and Frankfurt are
between 2009 and 2018, the European banking sector not mentioned, however, as the weakening of New
“From a global standpoint, European capital markets could therefore continue to suffer in the coming months York and London should, in their opinion, primarily
are too small and fragmented. The goal of the capital from banks' decision to reduce their presence on the Old benefit Asian markets.
markets union (or CMU) is to develop an ecosystem that Continent. There are also questions about Europe's global
will allow the development of strong European financial standing. Indeed, with the official implementation of Brexit,
markets and intermediaries which are able to compete the European Union has disappeared from the Top 10 of
internationally”. the world's major financial centres, largely dominated by
New York (1st), London (2nd) and several Asian cities such as
Luis de Guindos, Vice-President of the ECB,
8 January 2020 Hong Kong (3rd), Singapore (4th) and Shanghai (5th). Frankfurt
(15th), Paris (17th), Luxembourg (25th) and Amsterdam (37th)
The subject of the fragility of the European financial system are far behind1. A study, recently published by Duff &
is a recurring concern of European Union supervisors and is Phelps2, points to the risk of a weakening of Europe, but
further exacerbated by the multiplication of announcements also of London, compared to other global cities. 56% of
of restructuring plans in the banking sector, with more respondents cite New York as the world's leading financial
1
Source: Z/Yen Partners & The China Development Institute, The Global Financial Centres Index, 2019.
2
Source: Duff & Phelps, Global Regulatory Outlook 2020. Global survey of 240 business leaders in the financial sector.
visuel illustration
THE GLOBAL FINANCIAL CENTRES INDEX SOURCE: Z/YEN PARTNERS
CENTRE RANK SEPTEMBER 2019 RANK SEPTEMBER 2018 CHANGE IN RANK
NEW YORK 1 1 =
LONDON 2 2 =
HONG KONG 3 3 =
SINGAPORE 4 4 =
SHANGHAI 5 5 =
TOKYO 6 6 =
BEIJING 7 8 +1
DUBAI 8 15 +7
SHENZEN 9 12 +3
SIDNEY 10 7 -3
FRANKFURT 15 10 -5
PARIS 17 23 +6
LUXEMBOURG 25 21 -4
AMSTERDAM 37 35 -2
DUBLIN 38 37 -1FOCUS ON... BREXIT
UNDER PRESSURE #3
22 23
regulatory and trade divergence over 240,000 sq ft on completion and In this context, the certainty that
between the United Kingdom and grow Mastercard’s workforce in Dublin Dublin offers regarding the right of
the European Union, the more office to over 2,000 in the coming years. As workers from across Europe to work
space will ultimately be taken by these part of the plan, Dublin will become in the city must surely be a significant
companies in Dublin. Mastercard’s European Technology factor behind these decisions.
Hub with cyber security, artificial
Playing in Dublin’s favour is its already intelligence, blockchain and user
relatively large existing financial experience some of the research areas
services sector infrastructure which that will be developed at the campus.
ranges from the €1.8 trillion fund While Brexit has not been mentioned
administration industry to niche areas by tech companies as a motivation
BREXIT AND THE for Brexit-related moves with 117 see that approximately half (60) of such as aircraft leasing. In total, there for expanding in Dublin, the surge in
DUBLIN MARKET announcements, approximately 40 to these companies have taken space are 986 fund managers with operations growth is unlikely to be coincidental
50% ahead of its nearest competitors so far in Dublin meaning there is still in Ireland (IMF, 2018) with the UK when one considers that these
It is well-accepted that Brexit Luxembourg and Paris. Therefore, a large number of companies left to accounting for the largest share with companies typically draw on talent from
represents the greatest risk to Ireland the fact that the Dublin office market do so. The proliferation of coworking 368. While many of these are presently across Europe for their operations.
of any of the European Union member is the biggest beneficiary of Brexit- and serviced office providers in Dublin back and middle office functions, it
states due to the deep economic and related announcements represents a in the past number of years – lead would make sense for asset managers
political linkages between Ireland significant exception to the potential initially by Regus and Iconic Offices that require a European platform to
and the United Kingdom. With trade negative economic impact that Brexit and more recently by WeWork – offers grow more front office activities out
negotiations ongoing, Ireland will will have on Ireland. For real estate ideal occupier flexibility during an of Dublin on the back of existing ANALYSIS OF BREXIT-RELATED MOVES IN DUBLIN SOURCE: KNIGHT FRANK, DEFINITE AND POTENTIAL
PROJECTS OR ACTUAL RELOCATIONS. AS AT 1ST MARCH 2020.
be hoping that divergence from the investors looking to hedge their risk uncertain time such as Brexit, with 25 operations that they already have
current friction-free trade arrangement to Brexit, it would suggest that Dublin of the companies that have taken located there. This is reflected in our
will be minimised so as to lessen the office assets represent a channel space in Dublin choosing to do so in research, with asset management Other Banking/
impact on the Irish economy. The through which they can mitigate their coworking and serviced office space. firms accounting for the largest share 22% Finance
exception to this negative exposure Brexit risk. How trade discussions conclude will of Brexit-related announcements with 18%
is the Dublin office market, with likely dictate the degree to which 27%, ahead of insurance and fintech
Knight Frank’s research showing Looking at the breakdown of these companies expand in Dublin. which have 17% and 16% respectively.
Asset Insurance
that Dublin is the top location announcements in more detail, we All else being equal, the greater the
Management 17%
Outside observers need only look at
27%
the flourishing tech scene in Dublin to
realise the city’s potential in becoming
a sectoral hub. Tech companies are BREAKDOWN Fintech
expanding at a phenomenal rate in BY ACTIVITY
PARIN
ACTIVITÉ
16%
%
the city, cementing Dublin’s reputation
as a global tech hub. The most recent
example is LinkedIn, who recently
agreed to pre-let 434,000 sq ft at
their fast-growing city centre campus USA/Canada
at Wilton Park. Upon completion, 44%
LinkedIn’s footprint at this site will be
in excess of 700,000 sq ft. Elsewhere,
Salesforce pre-let 430,000 sq ft at United-
RGRE’s Spencer Place which will Kingdom
see the company treble its existing 46%
Asia-
footprint. Due to its positioning as
Pacific
both a tech and financial hub, it is 6%
unsurprising that the Fintech sector BREAKDOWN
in Dublin is rapidly growing. The BY GEOGRAPHY
PARIN %
ORIGINE Other
latest and best example of this is GÉOGRAPHIQUE
4%
Mastercard’s taking of One and Two
PAR ORIGINE GÉOGRAPHIQUE
South County which will extend toFOCUS ON... BREXIT
UNDER PRESSURE #3
24 25
WHICH TYPES OF COMPANIES? comes on top of the movements of 15% of the total number of relocation ANALYSIS OF BREXIT-RELATED MOVEMENTS IN PARIS BY WORKFORCE SIZE CATEGORY SOURCE:
KNIGHT FRANK, DEFINITE AND POTENTIAL PROJECTS OR ACTUAL RELOCATIONS. AS AT 1ST MARCH 2020.
leading national banks and the arrival in projects registered in the French capital
Which companies have targeted Paris of several companies previously as a result of new announcements
Paris to date as part of Brexit-related established in the British capital but (Ipagoo, etc.). Although the share of 0-29 EMPLOYEES
movements? Their profiles are founded by French people, such banks (33%) and asset management
12%
30-99 EMPLOYEES
somewhat varied, although British (46%) as Fintech Smart Lenders AM (see companies (21%) is higher, the share of >100 EMPLOYEES
and American (28%) companies account interview on pages 17-18). Fintechs could continue to increase due
for nearly three-quarters of them. The to the high growth potential and the
remaining foreign arrivals mainly relate Although banking activities and asset authorities' proactive policy to promote
to companies from Asia or the Middle management companies still account the French Tech ecosystem. Whilst the
East. Finally, French companies account for the majority of Brexit-related United Kingdom has just announced
BREXIT AND THE for 10% of all Brexit-related movements movements in Paris, the increase in the introduction of more restrictive 19%
in Paris. Among the most recent and the share of Fintechs is one of the legislation on immigration, some French
PARIS MARKET
most significant projects is the return most striking developments of the last officials emphasised in particular the
CONFIRMED APPEAL of Total's treasury management to twelve months. Poorly represented until reception facilities offered to innovative
the Greater Paris Region. This project the end of 2018, they now account for companies and their employees of
One of the most significant trends foreign origin. Further confirmation 69%
over the last twelve months is the ANALYSIS OF BREXIT-RELATED MOVEMENTS IN PARIS BY WORKFORCE SIZE CATEGORY that the search for talent is indeed the
progression of Paris in the hierarchy SOURCE: KNIGHT FRANK, DEFINITE AND POTENTIAL PROJECTS OR ACTUAL RELOCATIONS. key to success in the new technologies
AS AT 1ST MARCH 2020.
of cities attracting the largest number sector.
of Brexit-related movements. Indeed,
with 82 certain or potential projects JOB GAINS REMAIN MODEST
identified since 2016, the French
Asset
capital remains far behind Dublin
Management Of the 82 Brexit-related movements
19% Fintech
but is moving up to second place in recorded since 2016 in the Greater The second reason is of a than 100 employees is 88%, while
15%
the rankings ahead of Luxembourg, Paris Region, just over 60% have methodological nature and is due to only about ten movements involve
and is also widening the gap with already taken place. The most the lack of transparency concerning more than 100 employees. Brexit's
Amsterdam and Frankfurt. Banking/ important of these concern Bank of the projects of certain companies, impact on the office real estate market
Other America and the European Banking whose movements are not necessarily is therefore reflected in an over-
Finance 12%
The influx of movements in favour 45% Authority (EBA) for a total of around announced before they actually set up representation of leases for areas
of the Greater Paris Region bears 500 employees. This volume in France. For example, the regulators of less than 1,000 sq m, including
witness to the improved image of Paris represents a significant share of (AMF and APCR) are subject to a significant proportion of areas
and confirms, more generally, that Insurance Brexit-related recruitment, estimated confidentiality and are aware of of less than 500 sq m and several
the efforts made to revive France's BREAKDOWN
BY ACTIVITY
9% at nearly 1,500 in the Greater Paris projects that they cannot make public1. examples of installations in coworking
appeal are paying off. In addition to IN % Region today. According to our latest areas or by way of sub-leases. The
the strengths traditionally promoted estimates, potential or pending Estimates of job gains have changed consumption potential of medium-
by the capital region (quality of movements represent 1,800 to little since 2016, whether for 3,500 or sized offices, those between
transport infrastructure, capacity for 2,000 additional positions, i.e. a 5,000 people. Their scale therefore 1,000 and 5,000 sq m, is rather
innovation, market size, etc), a number USA high range of 3,500 positions for remains limited in relation to the limited, while movements above
of measures have been tailored to 28% all Brexit-related job gains. This economic weight of the Greater 5,000 sq m can be counted on one
attract Brexit "exiles". The relaxation figure remains below the target of Paris Region, where companies in hand. It should also be remembered,
Other
of legislation, particularly in the area United Kingdom 5,000 jobs recently communicated the banking sector alone account as we reported in our previous study,
10%
of employment law, is a particularly 46% by Paris Europlace, but could be for more than 100,000 employees. that several of the projects likely to
important indicator, as are the revised upwards in the coming The vast majority of Brexit-related create the greatest number of jobs
reception facilities offered to families France months. Having established an initial projects involve a relatively small are being undertaken by companies
(international schools). Above all, the 10% foothold in Paris, some companies number of employees, with 69% of already present in the Paris region,
change in the tax and social security could consequently strengthen their the movements recorded involving with office space large enough to
system for inpatriates is a strong BREAKDOWN European presence there. no more than thirty employees. The accommodate new employees.
argument that has enabled France to BY GEOGRAPHY Union proportion of projects involving less
IN %
make up for its lack of competitiveness 6%
in relation to other European countries. 1
Choose Paris Region, Brexit-related relocation of activities in the Greater Paris Region, January 2020.BREXIT
UNDER PRESSURE #3
26 27
ALMOST EXCLUSIVE INTEREST particular, La Défense in the Hauts- have always been the source of
FOR THE CBD de-Seine department. In this business the most expensive transactions,
district, Brexit-related movements accounting for nearly 40% of the total
Taking all employee categories are, with the obvious exception of number of leases signed at rents in
together, Brexit-related leases the European Banking Authority, excess of €750/sq m/year over the
represent approximately essentially endogenous (Chubb, My last twenty years in Paris.
55,000 sq m of office space in the Money Bank, Total).
Greater Paris Region, slightly less than
half of which has already been taken The next few months will determine
up. Unsurprisingly, Paris concentrates whether La Défense has been able
the largest share of these volumes to attract new companies thanks to
leased, with a particular focus on the the influx of high-quality office space
central business district. Among the on the market and the increasingly
most recent movements, Cooper Gay limited and expensive supply of
has leased 500 sq m at 71-73 Avenue office space in inner Paris. The CBD
des Champs-Élysées with the aim of is nevertheless likely to remain the
expanding its presence in Europe. almost exclusive target of Brexit-
The National Australia Bank, one of related movements in the Paris
Australia's largest banks, also intends region: consulting and international
to locate in Paris and should logically finance companies are traditionally
choose the CBD for its European hub. drawn to an address in the capital's
most beautiful districts and are
More importantly, JP Morgan has therefore less reluctant to pay high
announced the acquisition of a rents there. Moreover, these sectors
6,600 sq m building near Place
Vendôme, which would be the second
BREAKDOWN OF BREXIT-RELATED MOVEMENTS BY GEOGRAPHICAL SECTOR IN THE GREATER PARIS
largest Brexit-related transaction
REGION. SOURCE: KNIGHT FRANK, DEFINITE PROJECTS AND ACTIVE SEARCHES IDENTIFIED BMID-2016
in Paris since 2016, after Bank of AND 1ST MARCH 2020.
America's lease for almost 10,000 sq
m at 49-51 rue La Boétie. Favouring
the most upmarket market sectors,
2% OTHER
LA DÉFENSE
these movements alone do not explain
the increase in prime Paris Market 7% PARIS EXCL. CBD
PARIS CBD
Rents, which is the result of a more
general dynamism in user demand in 8%
various sectors (consulting, coworking,
new technologies, luxury, etc). They
do, however, add to the tension in
a market that already has a severe
shortage of office space, with barely
92,500 sq m available at the end of
2019 (i.e. a vacancy rate of 1.4%).
Markets outside the CBD account for
only 16% of Brexit-related movements 83%
in the Greater Paris Region. The
profile of companies is generally
more varied, with a mix of lawyers,
insurers, major industrial groups and
Fintechs. They have targeted a few
Parisian districts in the West and on
the Left Bank and Neuilly and, inBREXIT
UNDER PRESSURE #3
What are the most common These factors are reflected in recent
questions foreign companies ask key world rankings. It is the most
28 about setting up in the Greater attractive European conurbation 29
Paris Region? (37% of decision-makers consider
INTERVIEW The main issue is market and customer
Paris Region to be the most attractive
European conurbation, compared
CHOOSE access more than tax or labour cost
issues. Depending on the sector, there
with 34% for London). The number of
projects is increasing in key functions:
PARIS REGION are also sometimes questions related to
administrative procedures or regulatory
and legal conditions, the main steps in
decision-making centres (+2%), R&D
centres (+32%) and production centres
(+63%), illustrating the real confidence
Lionel Grotto setting up a business, available funding of foreign investors in the region's
CEO and possible state or regional aid. But research and industrial potential. In
the questions relate more and more 2018, it was also the 2nd most attractive
to the quality of life. Companies are region in the world according to KPMG
What is the role of "Choose Paris-Greater Paris Region Chamber and 33% of jobs). China, Japan and seeking to associate their brand with (Global Cities Investment Monitor)
Paris Region"? Have you set up of Commerce and Industry, to work Singapore together account for 13% a region and premises that speak and the leading location for attracting
any special assistance for Brexit- together to simplify the welcoming of of the projects and 14% of jobs and positively of their brand because the international R&D centres. Between
related projects? companies and their employees. complete the top 5 countries list. issue of talent recruitment has become 2015 and 2018, the Greater Paris
30% of decisions affected an English key. For example, one company in the Region moved from 6th to 1st place
The Choose Paris Region agency is a This one-stop service has notably subsidiary located in London. 45% of tech sector wanted to be able to discuss among the world's conurbations in
one-stop service for foreign companies enabled the successful relocation of the projects are SMBs/MSBs, 40% are its R&D centre project with other players terms of the number of foreign direct
and investors who want to develop in the European Banking Authority (EBA) large groups, and 15% are start-ups. in the Greater Paris Region who had investment projects. Today, the Greater
the Greater Paris Region. The aim is to to the Greater Paris Region, effective recruited at least 100 data scientists Paris Region is once again ranked by
provide tailored support for each type since June 2019. On the strength of this Of all the projects monitored by and engineers in the field of artificial fDi Intelligence as the leading European
of project, but with the broader aim of successful accompaniment, Choose Choose Paris Region, several reasons intelligence, in order to gain a true Region of the future in 2020/21.
increasing France and the Greater Paris Paris Region has expanded its services have been identified. 62 companies insight into the difficulty of recruiting this
Region’s appeal: within this framework, and now offers the HR departments applied for a financial passport type of staff in such large numbers. We do, however, have competitors,
we support certain key projects, such of the groups we support a range as the regulatory issue was key for and these vary by sector. In addition
as the development of international of services to promote international them (the AMF granted 42 company For industrial projects, the issue is the to London, they are Dublin, Frankfurt,
education. mobility, which has become essential authorisations in 2019). Other availability of land or buildings ready Madrid, Amsterdam and Zurich for
for boosting the Greater Paris companies expressed fears about visa within a short time frame. We are in the finance. Berlin and Düsseldorf are also
Choose Paris Region is a team of 75 Region's appeal to foreign talent procedures and the free movement of process of putting together an offer dynamic, particularly in the tech sector,
people who have been present for 13 (researchers and employees). their employees: this mainly concerns with the support of the Greater Paris and benefit from an extremely positive
years in Paris, Beijing, Shanghai, San companies with very international Region, the State, private partners, image amongst investors. Several
Francisco, Boston and New York. We Since its creation, what types of teams. For others, the fact that one of energy and rail network operators, Eastern European countries, particularly
support more than 1,250 investment players have been supported? the directors is of French origin may and the region's major industrial areas. Poland, Serbia and Hungary, as well as
projects in the Greater Paris Region have played a role. Some companies We are preparing to re-establish the Germany and Spain, are competitors
every year. In order to project a We are aware of 283 Brexit-related expressed fears about rising customs Greater Paris Region's specialisation for industrial projects. It should also be
coherent image and to be more office and industrial set-up, duties or logistics costs, while others in industrial set-up that has been stressed that competition is not only with
effective, it is essential that all players in investment and team relocation wanted to continue to benefit from somewhat lost over the years. European conurbations. It is also found
the region work together. We therefore projects since the 2016 referendum, European subsidies. at a global level, especially in R&D and
coordinate private and public accounting for 10,193 jobs. The Greater What are the main strengths of production functions, which reinforces
economic players so that they speak Paris Region has been the target of With regard to industry, several the Paris financial centre? Who the need to strengthen cooperation
with one voice on an international 136 projects representing 5,484 jobs, announcements confirmed plant are its European competitors to develop Europe's appeal, whilst
level, and collectively offer services even if the relocation of these jobs closures, postponements of and why? simultaneously competing with these
that meet the needs of investors. The has not necessarily taken place yet. openings, or the cancellation of new other European cities.
agency now forms a genuine one-stop production lines. The Society of Motor Along with London, the Greater Paris
service that has taken over from the one The main sectors involved are finance Manufacturers and Traders (SMMT), Region is the only place that is a
created shortly after the announcement (53% of projects and 63% of jobs) and for example, announced in a July 2019 global capital, and no other European
of Brexit. It is the result of a common services (15% of projects and 17% of memo that 20% of companies in the conurbation has the same global appeal.
desire on the part of the State, through jobs). The main countries of origin of automotive sector have lost markets For example, it is by far the region
Business France, the Greater Paris the projects are the United Kingdom due to Brexit. 12.4% have transferred that receives the most foreign direct
Region, the Greater Paris Metropolitan (43% of projects and 22% of jobs) and their operations abroad and 12.4% investment from the United Kingdom.
Area, the City of Paris, Paris&co and the the United States (19% of projects have reduced their workforce.You can also read
