Sustainability and the Anchoring of Capital: Negotiations Surrounding Two Major Urban Projects in Switzerland

Abstract

. Emails: thierry.theurillat@unine.ch and olivier.crevoisier@unine.ch THEURILLAT T. and CREVOISIER O. Sustainability and the anchoring of capital: negotiations surrounding two major urban projects in Switzerland, Regional Studies. This article deals with the anchoring of mobile financial capital in the city and urban sustainability. Illustrated by a case study in the Swiss context, it develops the theory that new forms of negotiation are appearing around urban projects. Development/construction firms are playing a central role: they are capable of evaluating and translating the multiple dimensions of a project and certain sustainability challenges into financial terms, in a way that permits the anchoring of capital in the city. In parallel, the issue of sustainability depends greatly on the capacity of the local actors to negotiate with the promoters of urban projects. FinancializationUrban

Land and Real Estate in Northeast Asia, New Approaches in an Era of Financialization

“…As a result, they tend to use REIT structures primarily to divest second-grade assets. This finding supports the recognition that the financialization of urban production is essentially mediated by local property developers (Guironnet, Attuyar, & Halbert, 2016;Rouanet & Halbert, 2015;Theurillat & Crevoisier, 2014;Theurillat, Rérat, & Crevoisier, 2015).…”

The real estate markets: Players, institutions and territories

“…Real estate, and more specifically the transformation of the urban landscape through major projects, seems to be a key area of interest within one of the dominant literatures of urban studies, the so-called "actually existing neoliberalism" (Brenner and Theodore, 2002). Similarly, a growing number of writers are examining the interdependent connections between real estate and finance, taking account of a wide range of territorial situations from an institutionalist perspective (Aveline-Dubach, 2008;Theurillat et al, 2010;Theurillat, 2011a and b;Theurillat andCrevoisier, 2012 and2013) or a socio-economic perspective (Torrance, 2009;David and Halbert, 2013). These works underline the need to deal with the issue of built environment production in the light of the links between land ownership, finance or even public policy, and the need to stop putting real estate "under a bell jar in order to examine it more closely" (Aveline-Dubach, 2008: 13).…”

“…The materialisation of financial capital in cities changes the relationships between developers and investors. With their indispensable knowledge of local markets, the professionals involved in the built urban environment play a key intermediary role between institutional investors and actual property (Wood, 2004;David and Halbert, 2010;Theurillat, 2011b;Theurillat and Crevoisier, 2013).In the case of large-scale urban projects, these are primarily major property development and construction groups with an array of technical as well as legal and financial skills. Whilst being directly involved in construction activities, they have specific and often tacit knowledge of the local real estate markets.…”

“…Financial institutions therefore rely on specialist professionals whose job is to secure capital for the urban area. Information produced by the various property consultancy and ratings specialists is formatted such that investors, taking a "bird's eye view" of the territory, can select suitable projects (Theurillat and Crevoisier, 2013). Indeed, unlike users, who are limited to a single region, and property developers, who rely upon their knowledge of the local market, investors actually carry out a comparative evaluation of spaces.…”

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