Qandor Magazine | Issue No. 2 | March/April 2020

Q. Magazine ISSUE No. 2 – Mar / Apr 2020

A WOMAN’S PERSPECTIVE ON PROPERTY

News, views and opinion from Qandor’s ladies

CORONAVIRUS

Is your business prepared?

IN THIS ISSUE

THE FORMALITIES

04

FOREWORD A letter from our Founder, Matt Siddell

CORONAVIRUS

06 MORTGAGES & PROTECTION Lee Langley has the latest

08 HOW HAS PLANNING BEEN AFFECTED? David Kemp explains

12 P2P DURING MARKET TURMOIL Mike Bristow identifies the opportunity

16 CONTRACTS Jonathan More explains the legal lay of the land Cover image shot by Dan Law ARCHITECTURE & DESIGN

For more information visit

20 TOPLESS CALENDARS & PINK BOOTS

www.hkr-hoxton.com

ISSUE NO. 2

on location at HKR Hoxton.

Tina Patel tries to find the happy medium

24 TILES! This year’s hottest trends straight from CERSAIE highlighted by Matteo Bianchi

28 MAKE YOUR PROPERTY POP Small things you can do to make a big difference,

by Linda Rosen

32 AN INTERVIEW WITH HELEN TOULI Founder of The Interior Design House

36 REVOLUTIONISE SMALL SPACES Alan Waxman tells us how

40 IS SMART ALWAYS HEALTHY? Tas Kyriacou explains

PROPERTIES OF THE MONTH

44 LADBROKE GROVE

TAX & FINANCE

86 TAX RELIEF

Landmass London’s exceptional London refurb

50 LES CRISTAUX

Shaun Marsden can help you get some

88 MODULAR HOMES

A winter escape worth investing in CASE STUDY

56 NIGHTINGALE QUARTER

Can they be financed? Lee Langley explains

90 MYTH BUSTING Grazina Thompson demystifies what it takes to

BBS Capital and Wavensmere Home’s £42.9

invest in this industry

million development CROWDFUNDING PROPERTY DEVELOPMENT

94 TRENDS TRENDS TRENDS

60 IN CONVERSATION WITH ANGELIKA

Mike Bristow explains why we should keep a

BEGUIDJANOVA Commonly known as ‘the Jane of all trades’

close eye on them

98 RAISING FUNDS

64 FEMALE INVESTORS

Rob Wilkinson looks at crowdfunding as an

Emma Stubbings looks at women taking control of their financial future

attractive option to get cash in the bank

102 PLANNING A PROJECT?

68 ENTREPRENEURS

Consider crowdfunding, says John Friis

Steffie Broer sees a revolution taking place LANDLORD

72 SME DEVELOPERS

105 BREXIT

Paul Oberschneider has some sound advice

74 A PLANNING TRIUMPH David Kemp recalls an interesting case

Adam Joseph discusses the importance of keeping landlords happy

108 UNDER THE DOORMAT How Merilee Karr grew her company

78 WOMEN IN CONSTRUCTION Resident QS Michelle Lowe talks about her experience

PR & BRANDING

112 ARE YOU NIMBLE? Hanan Kandili discusses the importance of

82 PENNY MOSGROVE

business agility

What it’s like running Quintessentially Estates LAST WORD

115

HOW TIMES HAVE CHANGED Andrew McDonald reflects on 25 years in commercial real estate Issue No. 2 – Qandor – 003

OPTIMISM IN A CHANGING WORLD Qandor Founder Matthew Siddell Managing Director Kevin Taylor Managing Editor Gabrielle Winandy For editorial and advertising enquiries, please email: magazine@qandor.org Visit our website: www.qandor.org Contributors Adam Buchler Adam Joseph Alan Waxman Andrew McDonald Angelika Beguidjanova David Kemp Dylan Mitchell Emma Stubbings Grazina Thompson Hanan Kandili Helen Touli John Friis Jonathan More Lee Langley Linda Rosen Matteo Bianchi Merilee Karr Michelle Lowe Mike Bristow Paul Oberschneider Penny Mosgrove Rob Wilkinson Shaun Marsden Steffie Broer Tas Kyriacou Tina Patel QANDOR TEAM Membership Director Seeta Gharu seeta@qandor.org Membership Manager Rekha Patel rekha@qandor.org Videographer James Evans james@qandor.org

In these rather surreal times, my thoughts are first and foremost with everyone affected

by Coronavirus. I hope you are all surrounding yourselves with good people, family and loved ones and keeping safe and healthy.

The current climate is proving to be a challenging one the world over. But we’ve heard from many economists that it will be short-lived and that we shouldn’t lose focus of our longer term ambitions. In fact, a handful of our members have penned some helpful articles about the various legal and financial ramifications of this crisis, from Lee Langley’s update on mortgages (p.06) to Jonathan More’s comprehensive guide to the law around contracts (p.16).

I am incredibly fortunate to have good people around me and after many months of hard work, I am delighted to launch my new venture called Tropolis (p.11), Qandor’s online training program for smart people who are motivated to learn about property the smart way. My aim is simple, I want to turn the way property training is done in the UK on its head! I have lined up a phenomenal panel of experts from the Qandor network who will all contribute towards a series of Masterclasses that complement the Tropolis offering. If you haven’t seen our announcements on social media, where have you been?

This issue of Q. Magazine arrives at the end of women’s month, and we took this as an opportunity to celebrate the fantastic contribution women make to the industry. We are fortunate to have lots of fantastic women in the club, and decided to dedicate Issue No. 2 to them by inviting them to share their experiences and opinions on the state of property and construction from their perspective. This celebration culminates in the great cover shot of some of the ladies in the club, and what a great cover shot it is!

From Tina Patel’s take on topless calendars and pink boots (p.20) to a Q&A with ‘the Jane of all trades’, Angelika Beguidjanova (p.60) and Emma Stubbings highlighting the rise of female investors worth noticing (p.64); it’s been a pleasure reading what our ladies have to say - long may it last!

Matthew Siddell Qandor Founder

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CORONAVIRUS

MORTGAGES & PROTECTION IN THE AGE OF CORONAVIRUS. LEE LANGLEY Principal OnPoint Mortgages www.onpointmortgages.com

With the landscape changing daily we cover some of the biggest events to affect the mortgage industry Interest Rate Cut On the 19th of March the Bank of England announced a further emergency cut in interest rates from 0.25% to 0.1%, taking borrowing costs back down to the lowest level in history. Most of the big banks, such as Halifax, Santander, HSBC and 006 – Qandor – Issue No. 2

Barclays will have passed on the full initial 0.5% cut to customers on their variable and tracker products from the 1st of April. So far, however, we have seen little movement in fixed rate pricing, with the biggest shake up coming from Foundation Home Loans who halved some of their fees.

Mortgage Payment Holidays On the 17th of March the Chancellor Rishi Sunak announced a raft of measures including a threemonth mortgage payment holiday for those financially

affected by the virus, designed to protect homeowners.

The mortgage payment is deferred, the monthly payment set to zero and interest accrues for the period. Thankfully lenders will be speaking to credit reference agencies to ensure that customers utilising this option will be treated consistently on their report.

For those wishing to pursue this option, you would need to contact your lender directly.

Typically, lenders would need to assess the borrower’s finances, but this is being waived, allowing mortgage providers to implement a more straightforward process.

Protection Insurances We are experiencing increasing numbers of clients enquiring about their options around protection. These insurances have been historically undersold but can be invaluable and include life, critical illness and income

protection. In addition, landlords are keen to explore rental protection insurance.

Cover can be bought for 6 to 12 months depending on the length of your AST and the full cost is tax deductible against your rental income. It is important to seek professional advice to ensure any policy will be suitable for your needs.

Lee Langley is the Principal Mortgage and Protection Adviser at OnPoint Mortgages.

OnPoint Mortgages is a trading style of L&D Mortgages Limited is an appointed representative of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Some forms of Buy to Let and Commercial Lending advice are not regulated by the Financial Conduct Authority. Q. Issue No. 2 – Qandor – 007

CORONAVIRUS

COROVIRUS & PLANNING. David Kemp Managing Director DRK Planning www.drkplanning.co.uk

Coronavirus and the current Government ‘lockdown’ continues to affect all walks of life and a huge number of businesses and individuals. Things are changing by the day, and often by the hour right now, so trying to keep up to date with everything you need to know is a huge challenge

Preparing Planning Applications As expected, the preparation of some applications is likely to be on hold for the following reasons: • Movement restrictions preventing property surveys for floor plans and consultancy reports; • LPA staff absences and additional burden to cope with enquiries.

Nobody has all the answers at such an unprecedented time for the economy, but over the last few days we have begun to see possible answers to some understandable questions and concerns about the current situation.

Hopefully this overview will be helpful to you as you continue to plan and react to the global pandemic.

Consultancy reports in some cases might not be possible, such as noise assessments or onstreet parking surveys – these normally have to be done during school term times when traffic conditions are normal.

The Chief Planning Officer to the Government also indicated in a statement released on 24th March 2020 that applications

008 – Qandor – Issue No. 2

for new offices and new homes are likely to be prioritised over smaller applications in order to “help the local economy,” and householder applications (e.g. smaller extensions and some types of permitted development). It is unclear though where the line is to be drawn.

You should therefore consider the following: • Check with your LPA whether they would flexible on the need for some reports in these circumstances – some are adopting more flexible requirements and some are not; • Consider trying at least to progress a case by way of pre-application: not all the usual information is required and you can at least test the proposals to some extent until you get the ‘green light’ from officers to move forward; • Speak to your consultants and architects in advance and make sure that your matter is ‘booked-in’ so there are no bottlenecks later when restrictions are lifted, and your matter can be given priority by the team; • Try to position the case or development proposals as high priority in some way, such as ‘important to the local economy.’

Decision Making: Officers and Councillors & Planning Appeals Delegated Decisions Officers will be trying to make greater use of technology for meetings, such as video conferencing, but expect many to be harder to get hold of than usual – copy in team leaders if you have to ensure officer focus.

There may also be a greater use of delegated powers. This can be a good thing as

it may speed up decision making, but you need to be sure that the application is not just being funnelled to an experienced junior officer who might rush a refusal just to get a decision out and the matter off their desk.

Planning Committees The Government’s Chief Officer has encouraged LPAs to move matters that would have gone to Planning Committees back to approval by delegated powers. The law currently requires that Planning Committees have to sit in person, but the Government will amend the law (probably for 12 months) to allow the greater use of video conferencing.

This will probably be used for the most controversial cases to allow speaking objectors and thus avoid storing up later legal challenges against the Council’s decision for not giving a fair hearing to objectors.

Section 106 Agreements & Viability It will be interesting to see if Section 106 Agreements will be in some cases, where they only concern financial payments to the Council, to be dealt with by planning conditions instead. It goes without saying, of course, that if you have not signed your s106 Agreement yet, you need to review the viability of the scheme against the planned contributions or discuss with officers the scope for review, if dealing with a completed s106 Agreement.

Planning Appeals Planning Appeal hearings and Public Inquiries that were meant to be heard in the next 6 months or so, or during movement restrictions, are under review. It may not be safe to progress ➳ Issue No. 2 – Qandor – 009

with these and a further announcement is expected soon from the Government or Planning Inspectorate.

For all other appeals, including written representations and all other appeals yet to be heard, it is assumed for now these will carry on much as before, obviously subject to ‘social distancing’ (especially on site visits). In many cases, the administrative processes around them and leading up to them (e.g. submission of planning statements, case management) can be safely progressed in the current circumstances.

PD rights and lawful use changes In order to deal with the current crisis, the Government has made it lawful for all cafes, pubs and restaurants to operate as takeaway instead – this power will be reviewed every 6 months and is due to expire after 12 months.

Restrictions on delivery and servicing to premises, such as through planning conditions, has been relaxed and Councils have been instructed by the Government to be pragmatic and bear in mind the current circumstances before taking enforcement action PD & Planning Permission time limits on current sites, e.g. offices Many developers will be on site and will be ‘racing against the clock’ to try and save a planning permission or grant of prior approval.

Our advice would be to do as much as you can SAFELY whilst construction activity is allowed; which might not be for much longer!

Seek extensions of time or re-apply for a further three years if you can, but in Article 4 areas with PD changes of use, where you cannot re-apply for PD, the situation is not 010 – Qandor – Issue No. 2

certain. Our suggestion is either: • Take advantage of the current ‘confusion’ – speak now to senior officers and try to agree some flexibility; OR • Start on site as soon as possible then apply for building works (e.g. external changes, roof extension, new build) and include in the application form and papers that the lawful use of site has now changed – if granted, then it would probably be unlawful for the Council to go back on this (further legal advice may be necessary later).

Opportunities on the ‘other side’ The Government is still looking to progress new PD Rights for Roof Extensions and Housing: see ‘Planning for the Future’ (12 March 2020). A White Paper is expected in the Spring of 2020.

In the meantime, developers will need to secure a ‘pipeline’ of deals, making use where possible of Options and land deals, and it will no doubt be worth looking closely at Pubs, clubs, restaurants and retail, all of which will have come under severe financial pressure as a result of the Coronavirus pandemic.

The prime Office sector may also be an interesting area for future development, in particular if company culture begins to shift away from the need for needing such large office space in some areas, with people and systems adapted to working from home, and possible long term efficiencies and methods osf communication and client relationships changing as a result.

For more information visit www.drkplanning.co.uk Q.

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CORONAVIRUS

MICHAEL BRISTOW Co-founder and CEO Crowdproperty www.crowdproperty.com

The headline is, of course, from Rudyard Kipling – though not the second part, for which we claim full responsibility. Kipling’s advice is sound: we’re seeing a huge amount of destruction of value in markets. For the many who have their pensions and savings in those markets, this is a tragedy. The question in these circumstances is, what alternatives are there? What 012 – Qandor – Issue No. 2

should investors be doing in the midst of the most volatile markets in almost a century?

At the time of writing, the FTSE100 is down more than a third, from its peak of above 7600 to levels not seen in more than a decade.

Despite this precipitous decline, everything suggests that we haven’t hit bottom yet.

Indeed, in the global financial crisis, it took almost two years for the market to start to

recover. This isn’t, we suspect, a market to be buying equities ‘on the dips’, as there may well be more dips than ups.

Unless you’re convinced of your abilities as a clairvoyant, equity markets in these conditions are notoriously unpredictable, and only the very brave or very foolish (often the same thing) will attempt to make money from them. In the words of one market commentator, ‘only monkeys pick bottoms’.

If that isn’t you, and you need a secure home for your cash, there are a number of options.

Asset class options First of all, there is cash itself. However, for savers, the Bank of England’s response to falling markets by cutting base rates to 0.1% – their lowest ever – means cash is a less attractive option than it was before, as lower base rates mean lower savings rates on cash.

What’s more, it’s possible that rates could even go negative. If that seems a ludicrous suggestion, it’s worth noting that the Swiss National Bank had negative rates well before the crisis broke. You could be literally paying the banks to hold onto your cash for you. In fact, with January’s inflation rate at 1.8%, in reality that’s what cash savers are doing.

If you are happy to have your assets slowly eroded by inflation rather than commit it to the viscidness of equity markets, that’s fine.

But there are other alternatives available.

Gilt trip The obvious safe haven asset is the government bond. However, recently, even traditional safe-haven assets have taken a hammering. “As fears over the spread of coronavirus intensify, even the safest corner of financial markets has been swept up in the global sell-off,” noted the Financial Times,

adding: “Government bonds, typically seen by investors as havens from volatility elsewhere, saw their prices tumble.”

At first glance, this makes no sense: during a crisis, investors seek safety in government bonds. Indeed, this is what happened at the start of the Covid-19 outbreak, with bond yields around the world hitting record lows as prices soared. Then in March, that reversed. The selling in bond markets accelerated, pushing 10-year US Treasury yields above 1.2%, far above the record low of less than 0.4% of 9 March, and the yield on the benchmark UK 10-year gilt blew out to the maximum for the year on the week of 16 March. To date, they’ve trended lower, though not back to their lows of earlier in the month.

On the face of it, this makes no sense: US Treasuries and UK gilts will not default, as their governments pay off the debts in their own currencies, and they own the printing presses. But in times of crisis, cash is king, and this has been no exception.

As the FT explains, “As sentiment sours, fixed income funds — particularly those investing in corporate or riskier debt — are under pressure across the board from heavy redemptions. Many such funds may also hold some government bonds, which they are finding easier to sell to pay back departing investors.”

It’s not even that investors are being compensated for this additional risk, as the current yield on a 10-year gilt (about 0.4% at the time of writing) is still substantially below inflation. Corporate bonds aren’t offering much greater comfort as, even with yields expanding over the past few weeks, European investment grade debt is still only delivering a yield on a par with inflation. ➳ Issue No. 2 – Qandor – 013

Again, investors have to ask themselves, are they being fairly compensated for the risk?

Lastly, emerging markets (EM) assets – for the past decade a sterling performer for many investors – are also taking a hammering, which isn’t surprising given their higher perceived risk. Since January, investors have taken $80bn (c. £70bn) out of EM assets. To put this in perspective, that’s more than three times the amount of cross-border outflows witnessed during 2008.

Market crashes have been compared to being in a theatre during a fire, with the only way out being if you can get someone to buy your ticket. Fire sales of assets make markets even more volatile and depress asset prices further, as forced sellers all rush for the exit at the same time.

While fixed income assets are less volatile

014 – Qandor – Issue No. 2

than equities, trading in this environment – whatever the asset class – is enormously volatile. If you can escape the tyranny of market panic, and have your cash invested in quality assets, not only can you ride out the volatility, but you could also make a decent return Advantages of P2P Forced sellers are facing almost guaranteed losses, and trading in and out of investments in this environment is fraught with dangers.

However, individual retail investors in most cases won’t be facing the same pressures and should be able to take a more considered view.

What’s more, for those who have already sold out of risk assets such as equities and looking for a good alternative for their parked cash, peer-to-peer (P2P) investments may

be a good alternative. While P2P lending is an investment, and so involves putting your money at risk, it offers a middle ground between the volatility of markets and the inflation-eroding option of cash, offering attractive returns without the volatility of listed securities, such as equities and bonds. This is enabled by the efficient and effective purposebuilt systems developed by quality online lending platforms, without burdensome fixed costs to cover. Furthermore, these systems not only allow more direct access to those adding value with your investment capital (meaning a greater share of the returns), but also enable easy diversification, either by Self Selecting many loans or through AutoInvest algorithms, which is prudent investment management.

There is a growing realisation that this is an especially attractive alternative under current conditions. It’s already been reported that P2P lending platforms “are braced for a shift to alternative investment,” encouraged by lower savings rates as a result of March’s cut in the Bank of England base rate. Even allowing for depressed inflation rates at this time, people “need to look beyond traditional saving methods if they want to avoid their money being eroded further,” said one report.

Indeed, there are good reasons to “expect P2P returns to outperform other options this year,” given the falls in listed assets.

An additional benefit is the tax efficient lending options from ISAs and pensions. With the impending ISA season close on 5th April, there is the opportunity to invest £40,000 in your ISA account over the coming weeks (£20k in this tax year and £20k in the next), as well as the potential to transfer existing ISA balances in. Taking the CrowdProperty ISA for example, 8% returns in an Innovative Finance ISA are the equivalent of 13.3%

outside the tax wrapper for a higher-rate taxpayer – a very powerful proposition when backed by first-charge security on the property assets, from projects which have undergone the rigour that CrowdProperty applies to all lending opportunities.

Be selective However, P2P is a very broad arena, covering everything from unsecured personal loans to secured lending to businesses, not to mention options of both equity and debt. Some P2P sub asset classes will be higher risk – unsecured debt, for example, or equity crowdfunding, as equity is more volatile and lower down the capital structure – so, if the business does go under, investors are far down the queue when it comes to getting their money back.

If you are a debt investor with first charge security, however, you are right at the front of that queue.

It should be emphasised at this point that such advantages only hold good for those investors who hold their assets over the duration of the loan: P2P loans are not particularly liquid, especially in terms of any secondary market. But for those investors who don’t need to join in this scramble for the exits, this could be a good time to hold such alternatives – especially given the underlying characteristics of UK residential property in particular. Q. This article continues online!

CLICK HERE TO READ MORE Issue No. 2 – Qandor – 015

CORONAVIRUS

CORONAVIRUS AND CONSTRUCTION CONTRACTS. JONATHAN MORE Construction Lawyer Fenwick Elliott www.fenwickelliott.com

At this time there is nothing else we can discuss other than the issue of Coronavirus and what impact it may have on the property business.

Part of the property business is the construction of those properties.

Fenwick Elliott are the biggest specialist construction and energy law firm the UK and therefore have continual requirements from our clients that relate to real time industry issues. Coronavirus is one such issue.

The main question we saw appearing a couple of weeks ago related to what would happen if a contractor was in delay due to the virus. This has rapidly changed in the last week to: what

016 – Qandor – Issue No. 2

happens if the project is shelved or a site is shut down indefinitely?

This article will highlight the key points to bear in mind regarding coronavirus and construction contracts, primarily JCT contracts - the contract of choice in construction of properties.

As an introduction, these key points are: • Force Majeure clauses (unsurprisingly they turn on the wording of the clause); • notices, and when to give them; • record keeping/evidence; • other coronavirus related Relevant Events/Relevant Matters which could give rise to time and money; • Frustration – a common law remedy that can be very difficult to establish; • What to do with contracts that are about to be signed?

Force Majeure The Contract wording is crucial There is no established meaning in English Law of “Force Majeure,” and every Force Majeure clause turns on the words used. In broad terms, most Force Majeure clauses: • suspend the obligation to perform the Contract when a Force Majeure event has occurred (contrast this with Frustration, which discharges the Contract completely); and • the event must be beyond the control of the party relying on the clause.

Force Majeure will only apply if there is a Force Majeure clause in the Contract. Without a Force Majeure clause, a party may have to fall back on Frustration, on which more below.

Force Majeure excuses what would probably otherwise be a breach and effectively suspends temporarily an obligation to perform the Works, but it may not give rise to any compensation/ loss and expense (e.g. a JCT Contract), unless the Contract provides otherwise (e.g. NEC3/4).

Force Majeure clauses tend to be interpreted literally – they have been described as “an exemption clause that must be construed strictly.”

“Beyond the Contractor’s Control” Unsurprisingly, contracts find it difficult to list every event which may have an impact on the Contract and Force Majeure clauses normally contain a list of events, with a sweep up phrase such as “…and any other cause beyond the Contractor’s reasonable control.” Even precisely what this means is up for grabs, but the general rule in contract interpretation is that general words in commercial contracts have to be interpreted as having their natural meaning.

Impossible As an example, let’s consider a case in which the issue of impossibility provided for its cancellation, where delivery of goods was considered “…impossible.” The fact that new government regulations prevented exports of the goods halfway during a delivery window did not amount to Force Majeure. The Court held that under the Contract, delivery could have taken place prior to the prohibition of products by the Italian Government. In keeping with the principle that the words of any Force Majeure clause need to be looked at closely, a requirement rendering performance to be “impossible” before it did not have to be performed imposed a very high hurdle which the party relying on the clause could not overcome; they could have delivered the goods prior to the prohibition coming into force.

More Expensive/Price Rises The mere fact that performance of a contract may become more expensive, e.g. via the use of alternative agency labour or suppliers, does not amount to Force Majeure. For example, there is a case law which states that “hindering” delivery is meant interposing obstacles which it would be really difficult to overcome. It was not considered that a rise in price inhibited delivery.

And it was stated that “…the fact that a contract has become more expensive to perform, even dramatically more expensive, is not a ground to relieve a party on the grounds of force majeure or frustration”.

I suspect that the nature of the obligation in the underlying construction contract is relevant as to whether Force Majeure will come into play. For example, if a contractor can purchase sanitaryware from anywhere, and has decided ➳ Issue No. 2 – Qandor – 017

to purchase this sanitaryware from China as it is cheaper, Force Majeure may not apply if there is the same but more expensive sanitaryware available in the UK. Contrast this with a scenario whereby a contractor has to purchase Italian marble from a particular seller within Northern Italy, and there is no alternative supplier.

Epidemic/Pandemic In the current climate it may be useful to rely upon a quote from Lebeaupin v Crispin and Company where the Court referred to a quote from a French textbook which stated, “…war, inundations, and epidemics, are cases of force majeure…” with the Court adding, “This is a wide definition, but I think that it usefully though loosely suggests not only the meaning of the phrase [force majeure] as used on the Continent, but also the meaning of the phrase as often employed in English Contracts”.

(N.B. The World Health Organisation has just declared a “pandemic” which apparently is different from an “epidemic”. An “epidemic” is more local – it can occur in a community, geographical area etc. A “pandemic” is a disease that effects an entire country or the whole world).

the Force Majeure clause. A claim for (say) an extension of time would require the usual evidence, for example: • Records – evidence of staff being unable to attend site due to coronavirus. This may be in the form of doctor’s certificates, or if there are issues of confidentiality, witness statements confirming sickness or self-isolation. If sites are closed, evidence to confirm why they were closed and by whom. For late delivery/inactivity by a supplier, some form of contemporaneous confirmation from the supplier as to the effect of coronavirus on deliveries. It may be that the contractor’s own head office staff are not available, again evidence will be required as to their lack of availability being due to coronavirus and potentially some form of confirmation that there were no substitute employees who could have taken up the slack/taken their place; • Evidence that (say) the contractor has sought alternative staff from an agency but has been unable to find any suitable replacements. If (say) the contractor’s regular supplier of sanitaryware in China was unable to deliver, some form of evidence that the contractor sought alternative UK sources, but still could not find a supplier

Notices Unsurprisingly one party will normally have to serve notice of Force Majeure on the other to benefit from a clause – in one reported case one of the reasons the contractor’s claims failed was that he did not give valid notice of Force Majeure under the contract.

Causation As a general rule Force Majeure must be the sole cause of the delay. So where there are concurrent causes of delay – one Force Majeure, one Contractor caused, for example – Force who could deliver on time will prove to be useful; Majeure generally will not be applicable.

The burden of proof is on the party relying on As always, some form of programming evidence 018 – Qandor – Issue No. 2

showing that the Force Majeure Event did I am still to look at the timing of notices under a indeed cause delay is crucial.

JCT Contract in detail but suggest that a notice is given early and even now, as the impact and Interestingly the Chinese Government has expected effects of coronavirus are changing issued around 3,000 certificates confirming that daily and we may approach in a point of time Force Majeure has indeed taken place with the soon where a project is “…likely to be delayed.” coronavirus outbreak, but these are at best of limited or of no real evidential value.

JCT Contract - Causation As mentioned above, normally it is essential that JCT Contracts it can be shown that the Force Majeure Event was the sole cause of one party’s failure to comply Introduction with its contractual obligations. However, I Force Majeure is a Relevant Event but not a doubt as a matter of interpretation that this Relevant Matter. Accordingly with existing JCT principle would apply to a JCT Contract.

Contracts delay caused by coronavirus can give In broad terms, where two or more Relevant rise to an extension of time, but will not result in Events give rise to a delay to the Completion loss and expense as it is not a Relevant Matter. Date, or even when a Relevant Event and an event which the Contractor is responsible for, No definition both concurrently delay the Completion Date, The real issue with a JCT Contract is that, whilst then under an unamended JCT Contract this the interpretation of a Force Majeure clause can still give rise to an extension of time. depends on the words used, surprisingly a JCT I have real doubts whether it needs to be Contract makes no attempt to define Force established under a JCT Contract that the Majeure. In a case concerning a clause which Force Majeure event was the sole reason for the stated, “the usual force majeure conditions shall delay despite the earlier authorities being quite apply,” it was decided that this was too uncertain, clear on this point about when Force Majeure as Force Majeure clauses come in too many events come into play. This is reinforced in JCT different varieties. There is no reported case Contracts such as a JCT D&B 2016 within makes as to what Force Majeure means under a JCT it clear an extension of time can be attributed to Contract. So it is recommended that a careful more than one Relevant Event . review of any amendments to Force Majeure clauses is undertaken, and for any projects that Termination - JCT are still being signed off at present, these should Under a JCT D&B 2016, Force Majeure may be carefully drafted. ultimately give rise to termination of the Contractor’s employment , if the suspension Notices - JCT due to Force Majeure continues for a continuous As a Relevant Event notice needs to be given length of time as stated in the Contract of Force Majeure when it becomes reasonably Particulars. Q. apparent that the progress of the Works is being or is likely to be delayed, this is then followed, as soon as possible thereafter, with particulars of This article continues online! the expected effect, including an estimate of the CLICK HERE TO READ MORE delay to the Completion Date .

Issue No. 2 – Qandor – 019

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WOMEN IN PROPERTY

FROM TOPLESS CALENDARS TO PINK BOOTS...

TINA PATEL Architect & Founder Formed Architects & Designers www.formedarchitects.com

Co-founder of Formed Architects, Tina Patel reminisces about the changes on how female architects have been perceived over the past few decades Even in 2020, the reality is that construction is a man’s world. This year, I will have been part of that industry for 20 years. Has much changed in that time?

A little, yes. A lot more has been hidden through the political correctness brigade probably not very politically correct for me to say, but this is my candid view.

Does that mean people are less sexist?

Not really. The subconscious biases still exist. But should you let that faze you? My approach has always remained: do a good

job and the rest is irrelevant. Does that mean I have had to work harder or do more to prove my worth? Yes, without a doubt.

But that is what I signed up for when I chose to be part of this very male dominated industry. In an ideal world I wouldn’t have to, but that is the reality and I believe it is helpful to not be blind to it.

In days gone by, it would not be uncommon to walk into site offices for blue chip landowners and be met with the sight of a topless female calendar on the wall. he site foreman would hurriedly ask the ‘lads’ to hide it – and my response was and would still be: “Seriously, that doesn’t of f end me (not to say it doesn’t others, and I can understand that). I’ve seen naked women; heck, I live in a woman’s body. If that means ➳ Issue No. 2 – Qandor – 0 1

you are able to be more productive or makes you feel better, leave it up there – don’t remove it for my benefit.”

I no longer see the calendars. Does that mean the ‘blokes’ (and they mostly are still all blokes) don’t want them, or have they been forced to put that sort of stuff away in the era of ‘equality’? Probably the latter, I expect. And that only leads to a stronger subconscious bias that underlies the industry: we had to change the way we’ve been doing things for years because these women came along - and in my view that can cause hostility, which isn’t healthy.

I recall working on a project about 15 years ago and, at the close-out party, (this was pre-2008 recession, when those were the norm!), the site foreman said to me, after almost 18 months working on the project with him as the lead designer: “When they said there was going to be a female architect on this site, at the beginning I thought ‘oh shit, this is going 0 2 – Qandor – Issue No. 2

to be another woman who won’t be able to handle it or know what she is doing,’ but I was wrong to think that and having worked with you through to the end of the project, my views have changed on female architects.”

That, for me, is the drive for change that I want to see, changing the perception so that being a woman doesn’t come with a preconceived idea of what that may mean. A male architect seldom walks into the room and is questioned on how good he may or may not be, but as a woman you have to prove your worth before people think you may be credible. I have had to do this countless times over the years and now it has become part of me. I don’t want to be judged for being a female architect; I want to be judged for being good at what I do. As should we all.

Are there other changes that I’d like to see around being a woman in construction?

Yes: stop badging things in pink labels! I don’t want to wear pink site hats and site boots. For me, that isn’t the solution! Look around you. How many women do you see dressed in pink all the time? Who thought that this would encourage women into the world of construction?

I would love to develop a prototype for comfortable PPE kit that takes me from site to a networking event seamlessly without having to laud around a heavy pair of boots – site boots and a floaty dress isn’t yet an accepted look (and, yes, that often appears to be the female uniform at these networking events!). So, if there are any investors out there that want to support the development of that in the marketplace, I’d be all for it. Q.

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INTERIORS

THE HOTTEST TRENDS IN TILES. MATTEO BIANCHI Director Matteo Bianchi Studio www.matteobianchi.co.uk

As Interior Designers, we fully understand that it’s a challenge to create designs that are fresh, innovative and striking. We’re regularly travelling, visiting design exhibitions and scrutinizing the market to help predict trends. With all this knowledge and research, we are able to create the right look for a design scheme, which is both pioneering and timeless from the day of completion. Off the back of CERSAIE 2019, we predict the next phase for hard finishes within interiors.

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We left CERSAIE 2019 with feelings of inspiration, intrigue and excitement at the high bar set by Europe’s leading tile manufacturers. From installations to doorways, floor coverings and more, there was a wealth of choice for everyone to enjoy the visual feast.

We have created seven sections to summarise our findings: Concrete The developments in this part of the industry have been very impressive. Not only can you buy tiles that look as if they’ve existed within historic buildings, but also these tiles are brand new and extremely durable. If you want your new home to have a touch of ageing rather than weathering – you now can.

Jungle There were several stands which created storyboards. The jungle theme was one that caught our attention. Leaves and vines cascading down and interweaving between the branches with brightly coloured birds within, particularly by Koen became a marvel to enjoy.

Marble Replicas These have become so life-like but without the high price or environmental implications of quarrying. We were very impressed by the range of ‘marble’ options and variations and will definitely consider the use of this material for upcoming projects.

Jungle

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Lettering on Tiles New for this season was the use of decorative letters on tiles, reminiscent of building blocks and the Alphabet. Versace in particular executed this exceptionally well, by creating a wall in black and white adorned with gold lettering.

Fashion Would you like your favourite designer’s signature pattern on your walls, as a mosaic tile? We certainly would. Just the idea of printing a Burberry image onto a tile has really made us think of other possibilities. As we delved into our visual archive, we soon discovered there are endless options to satisfy every fashion taste.

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Black and White This timeless colour combination wouldn’t always command such attention from us, however this year we appreciated the contrast a little differently. A diverse selection of tiles was assembled, with varying designs by MUTINA. The irregular display inspired us to vision a host of ideas and possibilities. Striking yet subtle, defined but simple.

Pavement Tiling with an arch effect will be a simple, easy and effective way to create a curved shape and design interest on the floor. With an infinite number of sizes, we can see this being a practical form of layering for many, which was particularly well demonstrated by REFIN. Similarly, the tiling effect using pebbles, proved to be a very luxurious and smooth idea for a pavement. Q.

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WOMEN IN PROPERTY

MAKE YOUR PROPERTY STAND OUT IN A COMPETITIVE MARKETPLACE. LINDA ROSEN Director Edge Design Studio www.edge-designstudio.com

Great change equals vast opportunity - never could this statement be more applicable to the UK property market

consisting of: • A booming population; • Global climate changes; • A new horizon of technology; • The age of accelerated information.

While many professionals grow exhausted of Brexit conversations and the seeming “uncertainty” that comes with it, the winners that will emerge from this turbulent period are the ones that stride forward, take risks, and grasp the gaps appearing in this ever-shifting market.

What we’re all a part of is the biggest revolutionary period in human history,

The difference between the property companies that will thrive and those that won’t will be whether or not your company has the ability to adapt to the changing markets, implement new practices quickly and constantly experiment with emerging tools and trends.

For any investor, architect, developer ➳ Issue No. 2 – Qandor – 029

or property professional wondering how to make sure your portfolio stands out from the rest, here are our primary pieces of advice.

Deliver Quality More often than not, the easiest reaction to a slowing economy is to tighten our belts, reduce our overheads and deliver projects at the lowest possible cost. Of course, this is the opposite of what the market needs!

It is this knee-jerk reaction that leads to low quality production, unsatisfied consumers, elevated maintenance and repair costs, higher insurance premiums, and plummeting confidence in the market.

There is no need to complicate things!

Just be sure that your designs are: • Functional; • Timeless, simple, or minimalist; • Good quality, and therefore durable.

Low cost often means low quality, which of course will lead to low satisfaction.

Particularly in a world where opinions, reviews, and word-of-mouth marketing are more amplified and accessible than ever 030 – Qandor – Issue No. 2

before, meaning decisions that negatively affect your end users will haunt you much sooner than you think.

The benefit of soaking up a slightly higher up-front cost will pay dividends in the long run.

Design Thinking At EDGE, it is our position that being the champion for the next generation, innovating, and paying attention to your end-users is the best recipe for both sustainable commercial success and long-lasting consumer trust and loyalty.

Space-saving, integrated technology, and low- or no-carbon designs within any residential or commercial property will be of increasingly high value and importance to the future mass market.

A developer that builds a brand and reputation around the emerging markets of PropTech and sustainability will reap the rewards of ongoing customer loyalty and recommendations. For some small increase to your expenditure, and an effective marketing

campaign to highlight your efforts of catering to the consumers, the word-of-mouth marketing is near guaranteed to convert into swifter sales, longer-term rentals, and higherpaying tenants.

Marketing Masterclass During a time where cutting corners and passing on the problem is the standard practice, making honesty, integrity, and quality the central pillars of your business is a radical and worthwhile statement… but, you must make sure that it is a public and bold statement; one that is communicated time and time again to your target audience.

Many professionals do not realise that there is “controlled marketing” and “uncontrolled marketing”. Some things that all property professionals should take control of include: • Letting your customers visualise the space with professional CGIs; • Bringing your property to life with clear and crisp photography; • Maximising the appeal of your units with professional design, styling and staging; • Exhausting your marketing channels, such as: sales brochures, ‘recommend-afriend’ benefits for tenants, online media marketing, open-house viewings – the list goes on!

Do not forget – wherever your next buyer or tenant comes from, you must recognise that they have come from somewhere! The journey of your brand starts long before that customer picks up the phone.

It is the comment from a friend in one of your properties; a conversation overheard on the train; a well-judged social media campaign; a consistent message across your online platforms; a humorous advert in a newspaper or magazine; a too-good-to-betrue review during a Google search.

Never underestimate the small things that are part of each buyer’s journey toward saying “Yes”.

Conclusion For many entrepreneurs, business owners and decision-makers in property, historical moments like Brexit are seen as the chance of a lifetime. Why? It is the perfect time to seize opportunities that others are too fearful or hesitant to grasp.

With the age of information at our fingertips, accessing the mind of the consumer has never been more simple. And, if you’re ignoring the rise of market interest in technology, quality, sustainability, and functionality, then you might be in for a shock!

At EDGE, we’re interested in working with the long-term thinkers; leaders of the future; the risk-takers; the trend-setters; and those that consider sustained quality to be more important than cutting costs. Q. Issue No. 2 – Qandor – 031

WOMEN IN PROPERTY

AN INTERVIEW WITH HELEN TOULI. Helen Touli is the Interior Designer & Director of The Interior Design House www.theinteriordesignhouse.london How did you get into interior design?

Over 20 years ago I had issues with my own home project where the contractor was not being true to the spec and I found myself overseeing the project daily whilst being mum to a newborn and 2 young children.

It was a painful, frustrating, stressful, demanding, hectic and traumatic struggle to say the least, but I persevered and got through it. I vowed this would never happen to me again. When my boys were older, I decided to hone my skills and focus on a professional qualification in property; specifically, interior design. So, I went back to college. With my postgrad diploma under my arm, I set up my first interior design company.

What differentiates your company from others?

Our mantra at The Interior Design House is: “if the layout is wrong, then the finishes don’t matter.” We intrinsically review and revise internal layouts, often working alongside architects, developers and project managers.

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We use the latest new technology fabrics for furniture. Soft furnishings, familyfriendly, stain-resistant fabrics are becoming increasingly popular, but also metals, stone, ceramic, porcelain, glass, marble, granite, wood and other textures and materials. We ensure that a cohesive and exciting design is realised.

Landscape design is essential for a streamlined, sleek transition from the inside to the outdoors. Modern use of bifold doors provides the opportunity to extend interior design and integrate it with the immediate exterior and beyond using one style of floor tile for indoor and frost-proof/anti-slip equivalent outside.

With each opportunity we ensure that the landscaping is also considered early on in a project and not as an afterthought when funds have almost been completely depleted.

To achieve this, we promote our approved professionals to our clients.

What are the advantages of hiring an interior designer?

Many clients have visions of what they would like but either don’t have the time or don’t have the resources to execute them.

Some end-users start off getting involved in their project and quickly become overwhelmed with the choices they need to make. They must come up with quick decisions when things don’t go to plan or stumble across unforeseen challenges. Very often, they are asked for last minute choices, especially for tiles and taps, or where to put their sockets and switches. These all need a lot of planning and understanding of the lifestyle being represented. ➳

“In Paris, last September, I discovered a beautiful wool-like carpet made from 100% recycled plastic bags. That’s right… plastic bags!”

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For a project to flow smoothly, meet deadlines and stay on budget, everything must be well-thought out beforehand: ideally, room layouts must be planned and exact components and finishes of fittings for kitchen, utility, bathrooms, bedrooms, flooring, lighting, fancy gadgets, etc. This is very important for developers of multiple units, whether low- to medium-end. For the higher-end build there are even more elements to consider, such as complex AV systems, cinema room, pool, gym, etc.

More importantly, HMO’s must be carefully thought out for maximum success that complies with current regulations and, at the same time, maximising profits.

Inevitably things do go wrong and delays are unavoidable, but these will be minimised if the contractor/end-user/developer is wellorganised and is always thinking ahead,

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avoiding costly delays and errors. Ideally, the colour schemes and textures, furniture and soft furnishings would also be co-ordinated and decided at the outset, although these tend to be addressed once the project is underway. As interior designers, we bring enormous value to a project and are worth the money in every situation. We gain access to products that you may otherwise not be aware of or are able to purchase, work to budgets and have the know-how to spend wisely. We seek good deals and can find inexpensive material that look just as good as their expensive equivalent.

How do materials affect the way you design a space?

Understanding materials and their properties and using them in the right place for the desired effect is a never-ending quest that is

continually being challenged. For instance: • the difference between FR fabrics and rub tests for the domestic, commercial and hospitality sectors is crucial in our line of work; • specifying for bathroom surfaces, kitchen finishes, different floor types – each have their own properties and we use this information to match them to the brief; • proposing special wall finishes, be it hotel-grade family-friendly wallpaper or Venetian plaster that’s waterproof, strong and hard-wearing; • understanding the difference between many types of stone like marble and granite and latest manmade quartz equivalents; • keeping up to date with current regulations for newbuilds, refurbishments and permitted developments; • understanding the way natural and electric light performs in a space or building plays a big part in people’s changing emotions; we take advantage and make the most of it by using complementary colours to bring out the best in the room setting; • making alterations to the architecture of the building within permitted guidelines to maximise light and space.

Has Brexit affected you or your industry?

The value of the euro against the British pound has not been kind in the last couple of years. Most of our European suppliers are paid in euros which has obviously affected our profit margins. Due to the uncertainty of Brexit, we have been asking ourselves how Britain will trade with the EU, if there will be new import taxes brought in, how the value of the pound will fair against the euro postBrexit, etc.

HMRC have sent us a special code for EU trading but how this works or will affect our company, we’re still not sure. To counteract this wavering situation, we have been looking for alternative suppliers based in the UK. We rely heavily on reliability and efficiency from all our providers and new relationships takes time to flourish. Q. This article continues online!

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INTERIOR DESIGN

HOW TO GET THE BEST INTERIOR DESIGN FOR A SMALL SPACE. ALAN WAXMAN Founder and CEO Landmass www.landmass.co.uk

Most people would agree that small living spaces requires a certain amount of flexibility and creativity.

However, when done right, there’s no reason why even the tightest of spaces can’t showcase a design worthy of acclaim Whether you’re trying to figure out how to put a personal spin on your new studio apartment or need some guidance on making the best use of space in a not-so-spacious house, follow the tips below and make your home shine.

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Consider one colour Covering all the walls in one colour will make it feel larger. Consider using a warm and rich or soft and soothing hue to cover most of the room, including the ceiling. Highlighting one unifying colour fades defining lines, which enhances the cosiness of the space.

Additionally, using that wall colour at least one other time in your space — either in a rug or a piece of art — will pull your style together while continuing to let it feel open.

Focus on Lighting A small room can really open up with the

right lighting. In addition to letting natural light shine in through the windows (skip the blackout blinds!), use artificial lighting throughout your space to bring in some extra warmth. If you don’t have the room for floor and table lamps, choose lighting options that don’t take up any prime real estate, like string lights, wall sconces, or pendant lighting.

Make it multi-functional Furniture that can do double duty will save both space and money. And thanks to the tiny house/tiny apartment trend, there is no shortage of ingenious furniture items that either serve multi-purpose uses or fold up to make space in your home when they’re not in use. Desks, dining tables, and even king-sized beds come in styles that can easily be put away to make more room to move around. Likewise, you can find furniture that

serves a variety of purposes, such as beds that convert into couches and side tables that convert into desks.

Mirrors are your friend Speaking of double duty, mirrors add both additional light and the feeling of additional space into rooms by reflecting back natural and non-natural lighting and giving an illusion of more square footage. They’re also practical on their own. Use one large mirror or arrange a few smaller ones throughout a room. You can even create a gallery wall of mirrors like you might do with art.

Get rid of stuff & declutter One of the big benefits of living in a smaller space is that it forces you to cut down the amount of belongings you have in your home. You want to keep the general ➳

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amount of stuff you own to a minimum when you don’t have lots of room to work with.

Get rid of things that don’t serve a purpose in your life – be it because they’re impractical, useless, or just don’t bring you joy.

Further to this, be mindful of leaving plenty of open space, both for ease of movement and for maintaining utility. This applies to all visible areas, from the floor to your countertops to the amount of space you allow between furniture items. Less is more when it comes to creating a well-designed small space.

Use large rugs Decorating a small space is all about tricking the eye into seeing more than there really is.

When you use small rugs in a small space, you see—and think—small. Decorating with large rugs, however, give a sense of grandeur and the feeling of a larger room. Ultimately, the shape of a room and the furniture within it will dictate the best size rug to purchase, but always aim to go as big as you can.

Take advantage of vertical space Don’t neglect your walls. Making the most use of vertical space means both playing around with taller items and affixing your walls with things like shelving and art that add vertical 038 – Qandor – Issue No. 2

depth in addition to the spaciousness you’ve worked to create on the floor. If you have a piece you really love but can’t find a place for—a beloved vase, for instance—hang up a secure shelf and put it on there instead.

And when you’re hanging drapes, install the rod only about 2 inches below the ceiling or crown moulding, which adds an illusion of extra height.

Brighten with plants and flowers We Adding greenery and flowers to your small space can breathe additional life and style into it as long as you don’t overcrowd.

However, bear in mind that dead or dying plants have the opposite effect. If you won’t be able to keep up with the responsibility of maintaining your plants and flowers, there are great options for fake ones that look like the real thing. Don’t worry—fake plants are no longer a design taboo.

Work with your intuition when decorating a small space, and don’t try to work in anything that doesn’t feel or look right. Ultimately, the goal is to take as much advantage as you can of the space that you do have, maximizing its possibilities and really showing it off at its best. And while no design rule is set in stone, the tips above should help you do just that. Q.

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TECHNOLOGY

IS A SMART HOME A HEALTHIER HOME? TAS KYRIACOU Director Intelligent Digital Solutions www.idsgroup.uk.com

“Today, new luxury residential developments must include the latest technology to make life simpler for residents. People want easy, modern control in their homes” Sunil Pankhania, Westcombe Operations Director.

Whether designing, developing or buying a property today, it is expected to include an element of smart home technology.

Smart homes are equipped with lighting, heating, and electronic devices that can be controlled remotely by smartphone, control panel or computer. They bring many benefits to users’ including comfort, security, energy (ideal for BREEAM and energy regulations) savings and more recently wellness.

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Millennials (who account for threequarters of the current property market) are most concerned about health and wellness.

Supporting this, research has shown that where we live can impact our health – but can a smart home be a healthier home?

Where the smart home excels in health benefits is in its support of the circadian rhythm.

Firstly, let’s address what the circadian rhythm is: The National Sleep Foundation states your circadian rhythm is basically a 24hour internal clock that is running in the background of your brain and cycles between sleepiness and alertness at regular intervals.

It’s also known as your sleep/wake cycle.

Light is the most powerful synchroniser of the human circadian clock. The time spent exposed to different colours and levels of light throughout the day and night is responsible for how circadian rhythms are synced with our environment. Disruption to our body clocks can result in poor sleep and health risks.

Tas Kyriacou, Director, Intelligent Digital Solutions, comments, “the flexibility and control that a smart home offers means that integrators can use light (natural and artificial) to improve health and wellbeing, setting systems, in particular lighting and blind control, to support circadian rhythms.

This is known as circadian lighting.”

So, what is circadian lighting?

The concept of circadian lighting follows that of the human circadian rhythm. The area of the brain called the hypothalamus controls each person’s circadian rhythm by receiving signals from the eyes that report when it’s daytime and night time. The hypothalamus, in turn, controls the amount of melatonin released to correlate sleepiness with darkness and alertness with lightness. Scientists have discovered that long-term exposure to certain wavelengths of blue light at a specific intensity can have a negative impact on melatonin production. ➳

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Circadian lighting, therefore, controls electric light to support health and wellbeing by reducing the effect it has on the human circadian rhythm.

How do design and architecture play a role?

Dicky Lewis, Director White Red Architects, says “the role of the architect or interior designer is to assist the client in exploring the design of spaces and a fundamental part of this is the lighting strategy. As architects we benefit from building relationships with integrators to help inform us of the latest developments in lighting technology which in turn provides added value to our clients.”

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“The most efficient way of ensuring that correct smart home technology is installed is the early engagement of the design team with the correct consultants.”

Engagement with architects Dicky continues, “with the ever-increasing prioritisation towards both sustainability and the promotion of health and wellbeing in design, smart home technology is becoming a vital component in achieving these desired outcomes. The most efficient way of ensuring that correct smart home technology is installed is the early engagement of the design team with the correct consultants. Providing a clear brief to the architect will enable early coordination with integrators, which will also ensure that the most cost-effective solutions can be explored.”

Integrators can work with architects to introduce tech which supports a wellness approach to buildings. Controlling natural and artificial lighting is one of the most effective ways to transform a home making a real difference to the quality of life.

For example, technology and design can fuse together. Big windows can take advantage of bright summer mornings, then sensors can detect light and temperature to control blinds to bathe rooms in soft morning light or block out darkness.

When winter draws, and natural light is of a premium, technology comes into play; lighting sensors and timers can be tuned to match the circadian rhythm. Gently Start the day with colour temperatures close to natural morning light (<2700K), move to brighter whites (5000K) for alertness and end the evening with warming soothing colours (<2700K), removing some of the blue spectrum to slowly ease into the night time rhythm.

For more information on how to integrate smart controls or circadian lighting into your next project please contact Intelligent Digital Solutions. Q.

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PROPERTY OF THE MONTH

LADBROKE GROVE. ALAN WAXMAN Founder and CEO Landmass www.landmass.co.uk

Elegance and simplicity. Those two words distil the essence of this contemporary, connected home in Ladbroke Grove from London-based prime developer, Landmass “We believe in having the right vision for the market,” says Landmass’s Managing Director, Alan Waxman, outlining the design approach to this project, and all the company’s schemes.

“We aim to give our buyers what we think they want, not what they might think they want. We did considerable research into the market, the area, and our potential buyers for this Notting Hill home. Our aim was to present it in a way that the right person would want and value the property for its aesthetic style and attention to detail, even if they had not seen anything like it before, or even knew quite why they liked it. This depth of design thinking is what Landmass is all about and why we bring a fresh perspective to what makes a cutting-edge luxury home!”

Landmass created a deceptively large, three-storey, above ground, end of terrace to replace a ramshackle, two-storey house on this extremely tight plot in Notting Hill. Two basement levels further optimise available space with full height voids, adding a sense of drama, freedom, and light to the clean-looking interior. ➳ Issue No. 2 – Qandor – 045

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Connected technology is, indeed, one of the core ingredients in this luxury branded home that sold for a cool £5.5 million back in May 2017. The intuitive technology system in this Tardis-like, five bedroomed home is designed and installed by CEDIA member, Living Home Tech. It features fully integrated lighting and blind control, whole home audio and multiple TVs using distributed content from multiple sources, a home cinema, heating and air-conditioning control, as well as security technology, all brought together on a Control4 platform for easy and intuitive operation.

All lighting is touch-controlled using attractive eDLT switches from Clipsal. These provide the homeowner with a beautifully simple and attractive interface in each room.

They allow pre-set scenes to be quickly and easily selected. Lighting panels, meanwhile,

are neatly concealed within small cupboards and joinery in various locations throughout the property to save on space and wiring.

“I’ve an 11 second rule,” adds Alan.

“That’s all the time I have to make people comfortable with my product after they’ve walked through the front door. First impressions are very important for both people and properties.”

At this Ladbroke Grove home, the front door opens into a full depth, open plan living area which bursts into a double height void, overlooking the angular walled garden to the rear. When marketing the house, Living Home Tech created an estate agent scene, activated instantly from the front door light switch, which immediately switched all TV’s on and began playing pre-selected music to amplify the sensation of this stunning, visual aesthetic.

The eventual buyers loved it. ➳ Issue No. 2 – Qandor – 047

Bathrooms, outside space and stairwells all exude a bright and airy atmosphere

Elegance and simplicity are exemplified elsewhere in the technology solution. Music stored on a NAS drive or streamed from any audio platform can be accessed from anywhere in the house and piped into one of the twelve rooms in the property through discreetly positioned, in-ceiling speakers over the Control4 system. One of the enclosed basement rooms has been converted into a 5.1 surround sound home cinema - a snug, comfortable space that’s ideally suited for relaxing movie watching or sporting occasions.

Living Home Tech has also integrated the Heatmiser control of the underfloor heating system and the Cool Automation air-conditioning control into the Control4 platform. This ensures the two systems operate without any conflict for optimum energy efficiency. It also eliminates the need for any HVAC wall switches to add clutter to the space.

The home’s hi-tech security system includes a smart door entry solution. Once the front gate is opened, all front wall lights and low-level pathway lights switch on and an email is sent to the owner’s inbox, notifying them that gate has been activated. A vandalproof CCTV system displays pictures from the cameras on the Control4 touchscreens and on all HD TV screens in the house. Living Home Tech has also provided a resilient and secure data network to support all the technology in the property and provide robust Wi-Fi to the owners. Q. 048 – Qandor – Issue No. 2

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Qandor.

AN EXCLUSIVE LOOK INTO LES CRISTAUX. - BY DYLAN MITCHELL

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Issue No. 2 – Qandor – 051

PROPERTY OF THE MONTH

DYLAN MITCHELL Founder and MD Worldwide Property Company www.worldwideproperty.co

Every winter, lots of new developments are launched across the French Alps to cater for the demand for alpine holiday homes and property investors. Of these developments, a small percentage will stand out as exceptional, and Les Cristaux, developed by Worldwide Property Company, falls into this category Set on the mountainside above Les Arcs 1800, these 27 luxury apartments have floor to ceiling windows offering incredible views of Mont Blanc and the Tarentaise Valley below. With a piste going past the rear of the buildings, it’s possible to simply ski down to the nearest lifts in the morning and ski back to the apartments at the end of the day.

Each apartment comes with its own heated ski and boot lockers, a private storage area for owners to leave their skis and mountain bikes permanently, and underground parking.

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There is also a wellness area with saunas and Jacuzzis.

The apartments range from 2 to 4 bedrooms, with prices starting from € 455,000.

The area behind the apartments is wide open and made up of lots of different pistes and lifts. In the summer, the play continues with a 27-hole golf course, hiking, white water rafting and 180km of mountain bike tracks.

Within 200m there is a complex that includes a host of restaurants, bars, ski shops, indoor swimming pools, and a lot more. Everything you might need is on your doorstep.

Les Arcs is set within the Paradiski ski region, which includes 425 km of pistes, with the highest point at 3,250m. Over 70% of the region is above 2,000m, so this is a very snowsure destination.

I never started out thinking I’d ever be a propThe Ski Train travels directly to Bourg St Maurice at the base of the mountain, bringing visitors from London, Paris, Lyon, Geneva and Brussels, to name a few.

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Owners looking to rent their apartments when not staying there can choose to take advantage of new Para Hotelier tax incentives.

This means that they will receive a 20% of the purchase price as a tax rebate from the French government, and there is no income tax on the rental income for up to 30 years. Combined with 85% mortgages and low interest rates

054 â&#x20AC;&#x201C; Qandor â&#x20AC;&#x201C; Issue No. 2

(e.g. 0.90% Fixed for 15 years, or 1.10% Fixed for 20 years) that can be fixed for up to 25 years, make this a compelling proposition.

For more details, contact Qandor member Dylan Mitchell at dylan@ worldwideproperty.co Q.

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XXX –– Qandor 056 Qandor –– Issue Issue No. No. 22

CASE STUDY

£42.9M HOUSING DEAL IN NIGHTINGALE QUARTER. JAMES DICKENS Managing Director Wavensmere Homes

BBS’s investment management business has joined forces with James Dickens’ Wavensmere Homes and Grahame Whateley’s Cedar Group to deliver 474 homes at the Nightingale Quarter development in Derby, supported by a £42.9m development finance facility from Urban Exposure.

The 18-acre site was once home to the Derby Royal Infirmary and will be delivering 125 townhouses and 349 apartments over three phases. The joint venture launched the first phase of sales at the end of February 2020, with the first houses targeted for delivery by the end of September 2020.

Over 2000 people have registered their interest in the homes, which is designed to be a green oasis for its new residents, including cycle routes, an open-air gym

Issue No. 2 – Qandor – 057

and fitness area, children’s play areas and planting throughout the site. The Infirmary’s iconic pepper pot buildings will be retained for community use, with residents having access to numerous facilities including a café, gym, exhibition space and meeting rooms.

The cost of homes start for a twobed property at £185,000 and for a threebed property at £220,000. Help to Buy is also available for first time buyers. Qandor interviewed James Dickens of Wavensmere Homes about the project.

How did the Nightingale Quarter development come about? How was the opportunity spotted and what were the steps you took to secure it?

One of the first things that strikes you about the site is the sheer size and scale. As an 18 acres site in the centre of the City it presents a unique opportunity, but also a huge challenge.

The Midlands as a core market is one that both Wavensmere and BBS have been very active in over recent years, across a number of residential led schemes. In that sense Derby was a logical next step.

The city benefits from an enviable list of local employers including Rolls Royce, Bombardier and Toyota, which presented a

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compelling investment case when coupled with the dynamics of the local housing market.

Initially BBS assisted by securing acquisition financing when Wavensmere first purchased the property, before later investing their own equity alongside.

What have the main challenges been so far with getting this off the ground?

Given the site has had a number of false starts in the past it was really important for all stakeholders that a viable scheme was brought forward as soon as possible. The site is steeped in history, being the former Derby Royal Infirmary where Florence Nightingale trained as a nurse, so it was important for us that any future redevelopment paid homage to that.

Derby City Council have been hugely supportive and we have worked hard with them and the local community to deliver the high quality scheme that the City deserves.

From a construction perspective, we started on site just before Christmas and so the weather over the last couple of months has certainly been a challenge! Thankfully it is one the contractors have been coping with extremely well.

How was the process in securing the funding?

We had strong interest from a number of parties but Urban Exposure’s proposal coupled with their experience of lending on these types of schemes was very attractive. The size of the site and nature of the scheme lends itself to being broken up into a number of phases which helped deliver the optimal funding solution. Despite Brexit and the General Election, we were able to close everything shortly before the Christmas break.

What are the next steps for the company and the Nightingale Quarter?

We have just launched the first two phases of the houses which were really well received.

The marketing of the site has generated a huge amount of interest, from both owner occupiers and investors alike, and we are seeking to capitalize on that at the moment. The first houses will be complete by Q3 2020 and we

will be launching the apartments in the next few weeks.

Can you talk a little bit about the designs of the properties, how they were decided on, and how they have been received by new buyers?

We have a range of 2 and 3 bed houses, all with open plan kitchen/dinning areas and finished to a high specification. We have kept the iconic Pepperpot buildings which are much loved by the local community and will be turned into a gym and community centre for the residents.

We will also be using one of them for a marketing suite in due course. There isn’t much housing of this type and quality in the city centre and as a result demand has been high, particularly for the 2 beds. Buyers have been attracted by a number of factors including the high specification, the level of amenities, the 6 acres of green space, and the sense of community and security that is on offer. Q.

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WOMEN IN PROPERTY

Q&A WITH ANGELIKA BEGUIDJANOVA. Angelika Beguidjanova Investor & Property Developer

The “jane of all trades”, Angelika works in a little bit of everything, and is successful in all of them.

In this exclusive Q&A with Q.Magazine, she talks about her successes and f rustrations in property development.

You have quite a diverse background. Which was your most challenging job, and why?

My background encompasses publishing manager, headhunting for about 10 years (which included setting a brand from scratch in Asia and London) and, since 2003, property.

My most challenging job, hands down, was to redevelop an ex-HSBC bank brunch from red 060 – Qandor – Issue No. 2

brick building offices into an 8 boutique-style flats in Southend. There are a few reasons why it was challenging: -Financing is often difficult when one is starting the business. Investors and funders view you with a lot of suspicion and check every tiny detail which is a tick box exercise and irrelevant to the development itself. I have learned that it’s better to deal with smaller, more agile and sometimes more expensive funders if it means you end up talking to a decision maker rather than an admin. It takes less time and I feel there is a human connection there which I value.

-Pairing up with the right team: I started a business with someone who found the site but turned out to be incompetent at running it. I have learned that finding the right team and

setting up the right structure (in my case it was better to just pay the finder’s fee rather than trying to get into the business venture) is going to make a project a success.

-Property development is often a waiting game - between financing, lawyers, architects and building control, it was nerve wrecking and frustrating for me because it was my first commercial project and I didn’t t know it takes longer compared to residential. I didn’t know if I was going to be able to raise funds or get building permission or fit within budget.

In the end, every venture involves risk; I have learned that the most important thing is to enjoy every part of the process and not rush.

What advice would you give to someone wanting to change careers and transition into working in property?

I have changed careers a number of times and I am launching a new one now so I found that drawing on previous experience and relating it to what you want to do next is paramount. Are you good at design? Do you have project management experience? All of this is relevant to property development.

Youtube has so much information, and thousands of books were written on the subject. Usually I read/listen to what I can find, translate my experience to make it relevant to the new industry, target the network of people I know and ask them to introduce me around.

When it comes to property specifically, the networking groups are incredibly useful there are so many in every postcode. Property people are a very friendly and helpful bunch in general.

How do you deal with uncertainty?

I have a therapist for the times when it gets too much, but I also try to do sport so that I don’t spend too much time mulling things in my head. I listen to Ram Dass and others to get more spiritual about life and accept that uncertainty is a fact of life. Talking to friends and writing gratitude lists also help me.

With Terre D’Ang, you focus on transforming dated, unprofitable and often unliveable properties into homes that are inspiring, creative and comfortable. How did you get into this kind of project?

I started buying properties and doing ➳

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Can you think of 3 pieces of advice for someone who wants to do something similar, but doesn’t know where to begin?

Attending networking events really helped me find out people I could go into business with. In property, one needs three things: skills, time and funds - figure out what you have to offer and find people who need the things you could give.

them up myself, then I had a number of friends wanting to do the same but who were employed or based abroad so they asked me to manage projects on their behalf. I am very good at finding talented people and I cross reference everyone, it’s a skill I have acquired by previously being a head-hunter.

In addition to that, I am creative and visually gifted so I can create a beautiful design on a shoestring. I don’t believe in cookie-cutter designs - every property I created is unique and it usually sells on the day of it being open to the public.

I am obsessive about research so I can often find very good deals on expensive things such as bathrooms and kitchen equipment and hardware. Details are important and people notice them.

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Tell us about your favourite project that you worked on, and why it was so great.

I have a special place in my heart for every property I have done but the last two flats I have created are my absolute favourites. I obviously have a lot of experience now so I can take risks with design and they really worked out this time - I have had a lot of positive feedback and the flats have been booked out.

I went for dark colour palette which looks cozy and inviting and yet light due to high ceilings and large spaces. I generally want everyone who enters the property to have some kind of feeling and an experience - to feel calm or inspired etc.

Can you tell us about a project you are working on now?

I am currently in between projects in terms of property development. Otherwise, I am working on setting up a styling business for individuals as well as their homes. I find that homes and wardrobes are cluttered and dysfunctional and I would like to have people living in beautiful, spacious and inspiring homes and dress in a similar fashion.

What is your dream project?

My dream project would be another commercial to residential redevelopment with another experienced developer and/or investor. I would love for it to be a flagship building and to create something that we both can be proud of; sustainable, technologically smart and designed to empower and inspire.

Is there anything you learned during your sabbatical, when you travelled for a year in Latin America, that you use in your everyday and/or your professional life?

Travelling informs the eye and I often use countries as an inspiration for creation of a property design. I previously have done Morocco, California and Paris inspired flats and houses.

I also travelled with about 10kg for 6 months, which made me realise I need a lot less than what I want. I don’t propagate austerity; I do however believe in quality and Marie Kando.

Who is your inspiration in life, and why?

My mother always, because she started in property before I did and has found herself a new career at 61 in hotel management.

Reinvention is in our blood! :) Besides that, Matt Siddell is very inspiring for dealing with his challenges with grace, humour and candor (I wasn’t paid to say that!). I admire Ram Dass for his humour and equanimity, Madonna for keeping at it, Beyonce for combining feminine and masculine and the visual aspect of her latest album. I respect anyone who is doing it their own way and making it a success.

What advice would you give to women who want to work in house renovations?

If you are good with people and project management and have an eye for design, then it’s a great and rewarding job. Q.

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WOMEN IN PROPERTY

THE RISE OF THE FEMALE INVESTOR. EMMA STUBBINGS Investor & Property Developer Ikon Property

Have you noticed recently how many more women there are in the property world? Over the past few years, the historically male dominated property industry has started to change as women become more active and visible as they take control of their financial future.

Like many other female investors, I made a conscious decision to start investing in property when I was on maternity leave with my first child. After working long hours in a busy corporate career, it was the first time I had to pause and think about my life and what I was trying to achieve. I needed to maintain a good income but also desired more flexibility.

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Investing in property appeared to tick all of the boxes. Ten years on and I’ve not looked back! It hasn’t all been easy and like any other industry I’ve learnt many lessons along the way. I can however say that property has been amazing for me and it’s totally changed my life.

Many of the ladies I have met in the property world have similar motivations and ambitions. They desire financial independence and security and see property investing as a great way to achieve their goals. Most of them have been successful previously in both related and unrelated industries and have valuable transferable skillsets.

Depending on the amount of time you have, funds available and desired end goal, there are many forms of property investing. I started

investing by purchasing run down Victorian terraces in Manchester and converting them into high end student accommodation. I chose this strategy as it creates strong cashflow and I needed to replace my salary as quickly as possible so that I could focus on property full time.

Over the years I’ve continued with this form of investing. I’ve diversified geographically and started purchasing commercial property as well as investing into large development projects such as office to residential conversions, student blocks and high-end residential apartments. I believe it’s good to diversify your investments in order to spread the risk.

Some investments also take much longer than others before returns are realized so it’s key to factor this in when choosing your strategy.

Like any other form of investment, you can be as “hands on” or “hands off ” as you desire, pick something that matches your needs and aligns with how much time you have to dedicate to it.

Building a portfolio and associated business is a full time occupation, however, crowdfunding and other similar ways of investing can be great for people that don’t have as much time. Whatever you decide to do, study the market, do your research, talk to experts, get to know the individuals involved and only invest what you can afford to loose!

Social media and technology have had a big impact on both the number of women entering the property investment sector as well as the visibility of these ladies and their businesses. It is so much easier now to learn, connect, raise funds and promote your business and this can lead to faster growth opportunities.

In my own business, Ikon Property, social media has had a huge impact as I’ve managed to attract investment from other female entrepreneurs across the country.

I’ve also met a great network of property ladies that I regularly meet & share ideas and knowledge with, hopefully leading to future collaborations.

We are currently in a golden era for entrepreneurs, where it’s now easier than ever to start a business. An increasing number of people of all ages are founding companies & this represents an amazing opportunity for the property industry.

It’s not just the increasing number of female investors but also the variety of ➳

Issue No. 2 – Qandor – 065

disciplines; developers, architects, planners, quantity surveyors and interior designers.

The number of female entrepreneurs in the UK is rising more than twice as fast as male ones, and similar trends are occurring globally. It’s refreshing & inspiring to see so many new ideas and so much new talent entering the sector.

Whilst the number of women in property is growing, we’re still a minority.

There are still only a handful of high profile female role models and it’s imperative that if the numbers are to grow then we need to become more visible by speaking at events and providing mentoring for others. We must become more comfortable sharing our experiences and talking more openly about our successes.

So ladies in property, if you’re reading this and you’re passionate about what you do, please step forward: let’s inspire, empower and encourage others! Q.

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WOMEN IN PROPERTY

THE ENTREPRENEURIAL REVOLUTION. STEFFIE BROER Founder Bright Green Futures www.brightgreenfutures.co.uk

We are at the start of an “Entrepreneurial Revolution”, a golden age for entrepreneurship, where it is easier than ever to start a business, find funding, create virtual teams and connect with stakeholders and clients across the globe – all at the click of a button.

This is due to advancements in technology that allow us to access free information, low cost services, online networking, and knowledge-sharing platforms.

We now have access to tools and services that offer cheaper and faster alternatives to meeting in person or doing business abroad.

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Female Entrepreneurs As a result of this technological progress, a wave of new start-ups has arisen. More “start-up” businesses have set up shop in the last two years than there have been in the last ten! With often free, fast and targeted learning available online, and the educational establishment still largely focused on rote learning and passing exams, the attitudes towards conventional education and the value of hands-on experience are changing.

Bright young people no longer consider university as the default route to success and the concept of the “20-year-old company founder” has emerged.

Many women have joined the entrepreneurial revolution, seeing it as a way to have it all: to successfully pursue a career

and raise children, whilst breaking through the “glass ceiling” present at senior level in some industries.

Although there are still significantly fewer female entrepreneurs than male, the number of female entrepreneurs in the UK is rising (more than twice as fast as male ones), and similar trends are found globally.

Plus, more millennial women aspire to lead an organisation (34%) than their male peers (24%).

More SMEs needed in UK Property Innovation is needed in the housing industry.

Most UK homes are built by national volume house-builders who tend to build homes to a standard design and specification all over the country. They offer little consideration to the bespoke needs of future residents or the local surrounding area and community. Decisions in these organisations are largely driven by delivering shareholders profits rather than how property development can deliver social, environmental and economic assets.

In 1988 small house builders were responsible for 4 in 10 new build homes compared with just 12% today. The number of national house-builders has also reduced over the same period, with the surviving house-builders getting larger and larger.

This has contributed to insufficient housing supply, reduced local economic prosperity and a shrinking number of bespoke homes designed and built by local people for local people.

A shift towards property as a force for good. The built environment contributes around 40% of the UK’s total carbon footprint. The way property developments

are designed and built make a huge difference to the quality of life of the future residents, as well as what they can add to the local economy and neighbourhood.

Thus, property development, done right, has huge potential to significantly contribute toward solving social and global environmental problems.

At the moment, I can count the housing initiatives which put social or environmental benefits first on one hand. They still make up less than 1% of the new housing stock.

If that could shift, then the property sector has the opportunity to become a significant force for good.

Women in Property Setting up a property business from my kitchen table started more or less as a necessity to me. Initially it enabled me to provide a home for my children and myself.

I was also able to earn a good income without huge childcare costs. Boutique property developers often state their wish to be their own boss and having more spare time and freedom as the reason for why they decided to build a property business. It is easy to conceive why it would make more sense for a parent to work in property rather than a 9-to-5 or 8-to-7 career job.

Female entrepreneurs have been found to be more sensitive when it comes to nonfinancial issues. Women are more likely to seek to make a social contribution and want to ensure the quality of their products.

Good relationships with employees are more important to women.

On this basis it is easy to perceive that having more women running businesses ➳ Issue No. 2 – Qandor – 069

in property may drive social innovation in the sector and may contribute to a rising culture in the property sector which puts purpose first.

Why? “Why?”, you may ask. “Why are there so few female property developers?”. One of the main aspects of someone becoming an entrepreneur is to have role models and mentors in their lives. Many have grown up with them. Historically, women have had little representation in STEM (science, technology, engineering and mathematics) and property.

As a result, such female role models are few and far between. Young women may be less encouraged to study finance, management or STEM subjects, purely due to tradition. Yet, by the time they reach their thirties, many women seek financial independence, purpose in their careers and some would like to have children too.

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What’s needed?

We need more role models and mentors, property developers who do property with a conscience, and innovative female entrepreneurs who want to empower other women to follow suit. And we need a cultural shift in home life, in which more men and women share the responsibility for their children equally and find ways to combine their careers and passions with parenting.

We also need policy mechanisms that allow businesses focused on driving social and environmental change to compete on equal terms with those who don’t: policy mechanisms which internalise external costs, and thus provide incentives for businesses which make a societal contribution.

Promising movements I see some exciting and promising shifts and grassroots activity:

• Aspirational high-profile female property entrepreneurs • We see more and more courageous female change makers such as Malala[12] not feeling limited by age or cultural rules.

We are able to spend time with them and learn from them, all at the click of a button on our electronic devices.

• Property developments springing up which focus primarily on social benefit.

Entrepreneurs wishing to give back, who can easily use the internet to offer training and mentoring, and to provide free learning resources online.

• Millennials believe less and less in the traditional stereotypical gender roles, and many men take pride in their partners’ success and have the confidence to support their partners with devotion and pride.

• Policy mechanisms have come into place to drive the self-build sector. Self-building can serve as a starting point for a property career, especially when assisted with workshops and training, and through the mutual support and learning provided when building as a community.

can deliver social and environmental value without compromising on quality. There is a growing need for housing in the UK and the big house builders have not been able to keep up. The conditions are perfect for female, innovative and value-led entrepreneurs to reinvigorate the property sector and join the trailblazers bringing fresh ideas to the fore.

To drive this property revolution towards better housing we need more and more men and women working together, making the sector become a force for good. Q.

We are seeing the beginnings of a movement in the property sector. Pioneering developers and innovators in self-build, co-housing and modular design are once again putting the users at the core of house building. With sustainable business models, small developers are proving that housing Issue No. 2 – Qandor – 071

PROPERTY DEVELOPMENT

A NEW RESOLUTION FOR SME PROPERTY DEVELOPERS. Paul Oberschneider Co-Founder and CEO Hilltop Credit Partners www.hilltopcreditpartners.com

A lot of people I meet think that being a property developer is a surefire way of achieving financial f reedom. The Golden Key and the route to success. We are bombarded in social media by gurus and self-proclaiming experts that make us believe that this dream is only a “book your course” away.

The dream can be hypnotic. And if you’re at a party and you tell someone you work in property, they automatically associate it with making ‘big money’, especially if you embellish your statement, identifying yourself more specifically as a ‘Property Developer’.

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Like For many starting out, the temptation of beginning with a 100+ unit, £10million scheme is too great to turn down - the numbers look exhilarating. But to chase and nail down a giant deal before you’ve grasped the intricacies of what it takes to be a fully-fledged property developer is a dangerous place to start. The truth is, more than a third of all developers go bankrupt at one time or another - ninety per cent of the time it’s in the first year, and for eighty per cent of those that survive that first year, it comes within the following five years.

Expertise comes with the experience of time, effort and building a network of professionals and cannot be emulated in one, two or even three property deals. Each deal is slightly different, and you learn something

new every time. So, start small and gradually build up to larger deals/projects that allow you to stay in business.

I never started out thinking I’d ever be a property developer, let alone providing real estate private equity. But, like much of what’s worthwhile in life, the best things just happen unexpectedly and are often based on a fundamental need that requires satisfying. Thereafter, if you’re lucky, you build on those things step-by-step and grow.

It’s those need-based journeys that evolve into lifetime passions because they’re not superficial desires driven by wannabe media hype. As a younger man I wanted a cool flat of my own, so I built one which ultimately, I rented out…then another, and another, and over the next 18 years I’d developed a portfolio of commercial and retail space of well over 3.5m square feet. But the journey started with just one unit - because I wanted to live in my own place.

If you are passionate about building a career it’s usually advisable to start small and work your way up. Learn the fundamentals, do the smaller, more (seemingly) menial tasks before you are forced to make the ‘big’ life-changing decisions.

Many successful property developers we have come across have had backgrounds in associated fields such as Estate Agents, Land Surveyors, Contractors, Architects, Property Lawyers, Finance Brokers…Such backgrounds can be part of a broader plan and a solid foundation from which to grow.

Combining that with the relevant experience that comes from working with the right professional team can make a huge difference.

In the beginning, you may need to share

more of the financial pie with your colleagues and partners - incentivizing them to get the best result at each stage over the duration of the project. But at that stage it should be about getting your machine to work, not about making money, that’s a bonus. Getting other people on-board is a very sensible approach when starting out. Even as you grow, there will be skill sets you don’t have, so it’s best to use the hard-earned experience of others rather than to chance-it yourself and gamble.

So, heading into 2020 with a plan in hand, I would encourage any new property developers to start small and grow. For those who’ve already invested the time and effort and are doing smaller deals with GDVs closer to £1m-£2m, it’s time to start thinking slightly bigger - build a better professional team, and perhaps look at taking on a £4m-£6m project. Once you have the foundations and experience, scaling up is the reasonable next step to take. If you’re good at finding sites or are lucky enough to have one that has fallen into your lap but need someone to help you unlock its real value, finding trustworthy established property professionals will be the key.

Overall, a shrewd and prudent approach should pay dividends in the long run. The property business is commonly referred to as “a marathon, not a sprint”. If you are truly passionate about making it as a property developer, a steady progression in most cases is the best way to grow. One step at a time. Q.

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PLANNING

A BIG HMO JOURNEY: FROM TRIUMPH TO DISASTER, TO TRIUMPH AGAIN! David Kemp Managing Director DRK Planning www.drkplanning.co.uk

“Those are my principles, and if you don’t like them – well, I have others.” Groucho Marx In this article, I take you through the ups and downs of a recent case in which we managed to win planning permission to convert a Victorian townhouse in Northampton, in an Article 4 area with no PD rights, from three flats to a large 16-person, 10-bedroom HMO and share with you some of the things we did to help get this over the line.

Political Games HMOs are not often popular with Councils. They are worried about increased traffic and parking, ‘noisy neighbours’ and more comings and goings, and refuse and litter. Internal space standards can be poor as well. ➳

Issue No. 2 – Qandor – 075

It may just be the cynic in me, but it’s possible that Councillors don’t see as many votes in students or transient professionals compared to longer term residents and families.

However, before we start dealing with Council politics, we need to check we meet the key policies. In Northampton, there are several aspects to their policy – the biggest issues though, wherever you are, will usually be: the concentration of HMOs in the area and traffic and parking.

Getting officers on-side In May 2019, we held a pre-application meeting with officers. I would always recommend this as the interpretation of policy can be fluid and unpredictable and you need to make sure there is clear common ground with officers and an understanding of local political pressure.

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If you are looking at converting to an HMO, contact a highways consultant in advance. You need to check if public transport in the area is strong enough that you do not have to comply with the parking standards, which HMOs will often fail to comply with.

You will need a full Transport Assessment and On-street Parking Survey with nearly all of these applications.

The Highways Authority were on our side and officers were supportive, so all plain sailing then…?

No. Not quite. The Council later changed their concentration policy 5 days before the Committee Meeting and our case got deferred for 1-2 months! Fortunately, the way this particular policy calculated concentration meant we just had to change the scheme slightly – but you need to be very nimble and highly reactive to avoid a refusal and somehow keep the application on track!

Overcrowding’ and ‘Greedy Developers’ Every I have to say that ‘in every rose bush, there’s always a prick’ – and so too you sometimes find with Councillors. One particular Councillor decided to object to our scheme and call-in the application to Committee; not even a Councillor in the Ward affected.

Nobody else objected and our actual Ward Councillor rather liked our proposals!

When you get to this stage, then it’s not about policy any longer. It’s about P.R. and distinguishing you as a developer and your product as world’s apart from the sort of ‘slum housing’ that taints the reputation of our industry.

There are several ways of doing this.

‘I’m not like him…I’m one of the good guys’.

I would really recommend sending Committee Members a PDF of the property, explaining how big it is. Throw in some awful pictures of the current state on its worst day, and some lovely CGIs or indicative photos.

Avoid misrepresentation. Be open, honest and transparent. Explain who you are, what you do, give examples of your other properties and hopefully some great feedback from your tenants.

None of this is relevant to planning of course. The officers don’t care. But the Councillors will, and it will make them more comfortable with the thought of an HMO in this case.

Also, if you send it with a covering letter focussing on the good points and

“It may just be the cynic in me, but it’s possible that Councillors don’t see as many votes in students or transient professionals compared to longer term residents and families.”

benefits of the conversion, just before the site visit with Members (usually a day or two before Committee – make sure you’re there) then this can be extremely powerful and effective.

How big is TOO BIG? Lastly, it is often worth pointing out to officers and the Councillors that the existing flat or house is not fully optimised anyway and could (subject to national space standards) easily accommodate more bedrooms and bed spaces. If these numbers are roughly the same as being proposed in the new HMO, then you have a very good argument against claims of ‘overcrowding’. Councils have lost appeals on this basis!

So, in the end, planning permission was granted for the scheme on 23rd January 2020. It was never in any doubt!

A massive thanks of course to Michelle Lowe and Jeremy Wormington for the opportunity to present them to Northampton Borough Council as ‘one of the good guys’! Q. Issue No. 2 – Qandor – 077

WOMEN IN PROPERTY

THE REALITY OF WOMEN IN THE CONSTRUCTION INDUSTRY. MICHELLE LOWE Investor, Developer & Quantity Surveyor Redshell Consulting www.redshell.org

Michelle Lowe, Qandor member and founder of Redshell Consulting, tells it how it is for women working in construction Women in the construction industry.

Another hot topic. Another buzz word and another movement. Justified? Well, yes, of course, but does this movement really help?

Does it really solve anything or just continue the notion that there is actually a divide?

Being a girl in a man’s world is all I’ve known. Leaving school and diving straight into technical college at 17 to study construction during the 1990’s, it wasn’t going to be any other way, was it? The thought of being the only girl on the course or even in the college didn’t cross my mind as 078 – Qandor – Issue No. 2

a concern, it was merely fact. Construction is what I wanted to do and that was just an inherent part of it.

Surely the drive and the passion of doing what you want should overrule the environment or any obstacles that you may face. Maybe that’s the attitude that the world is missing right now: too much entitlement, too many offended and not enough driven by pure passion, intent and focus.

In my 25 years in the industry I am proud to say I have never played the girl card. I’ve never used my womanly charm or flirted my way through (would you believe this advice is still being dished out to me now?!). I’ve never told the stories, made the complaints, bleated about the troubles and, of course, made an issue of the boundaries

that have been crossed simply because I am a girl in a man’s world.

These were all faced head on and moved past. Nothing, nothing at all would have undermined my position more, my place and the career I worked so desperately for than to pull the girl card. Even writing this piece feels awkward, it goes against my grain.

I was recently asked to be an ambassador for Women in Construction for London Build and I hesitated in the same way. I am a human in construction, a person doing their job, an adult with a career.

So what was it really like? The good, the bad and the ugly. Well, of course, there were all three. But isn’t that the same for any career, and industry, any role where you start at the very bottom and work your way up?

I’d be very surprised if the challenges faced

by me differed greatly from anywhere else.

It was more a sign of the times, of the last 25 years of attitudes and social conditioning than really a reflection of the industry.

There have been many interactions, many meetings where I was talked over and dismissed, many men who did utter ‘who are you?’ or ‘what do you even know?’ if they didn’t appreciate the challenge of my question’s. The projects I was removed from, putting my employment position at stake, my bosses at the time scratching their heads as to why the international client with a £500 million fund had asked me to be removed from the role. The only answer they could give me on that Monday morning was: because I was a girl.

Many disputes with sub-contractors and contractors I am sure were ➳

Issue No. 2 – Qandor – 079

more adversarial than they needed to be, and why? Well, I wasn’t wrong for the way I led the projects or for the nonsense I refused to accept. For sure some felt the need to be more aggressive, to assert themselves over the small ginger girl leading the project.

Then of course the socials. The works do’s. A tricky terrain of navigating both team bonding and avoiding the drunken advances that would surely ensue. Again, is this really a construction issue or just an issue?

Nonetheless, the ‘Me Too’ campaign has highlighted and started to really call this out. We, as girls, in any environment, are not targets or trophies: we are people doing a job, in a team and part of the world. Respect is the issue here. Simple plain respect.

Attitudes are changing and, by God, they had to. The experiences I’m sharing of course should never have happened, but they didn’t really change anything, and they certainly didn’t stop me. No damage done.

And now in the grand year of 2020 it is less and less likely they’d even occur and if they did, they’d be called out right away. Men’s heads bowed in shame rather than incidences swept under the carpet and dusted away.

These experiences taught me how to conduct myself, how to handle difficult people, how to rise above misogyny and sexism and even sexual misconduct. How to proceed with dignity at all times, and then, who wins? The gracious and the professional.

Let the fools fool themselves. They’ll show themselves up eventually.

Being a girl in a man’s world also brought some opportunities. Although I would always want an opportunity to come

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“These experiences taught me how to conduct myself, how to handle diff icult people, how to rise above misogyny and sexism and even sexual misconduct.”

deservingly, I took one nonetheless. At 25, I completed my Construction Management degree and applied for and was awarded my full membership of the Chartered Institute of Building. This was the day I felt like I’d made it. Eight years in the industry working and studying, a final interview and I was in. I can still feel the pride of that day. My smiley smug face! At this time, to gain your membership, a formal interview was held in front of a panel of three. Daunting, and it was intended to be. Set in the grand Ascot residence of the mighty Chartered Institute.

Following my interview and the granting of membership, the panel chair approached me and asked if I’d like to join the membership panel. An immediate upgrade to sit on the other side and grill all those new members hoping to come through. I joked

and said it was because I was ginger, but really, had I not been a girl would they have asked me? I can’t be sure that my interview style would have blown them away quite so well. I was younger than many, that’s for sure.

Maybe this was the girl card well played!

So where are we now. The odd comment still arises, and from the least expected sources. Sometimes it’s from peers that are my age, and that surprises me the most. But, really, the world has turned, the industry modernised, social conditioning and attitudes levelling up, and with this, welcome change has happened.

I’ve been hugely fortunate to carve out a career for myself in an industry I love and these days I naturally gravitate to and work with those humans whose values align with mine, and where the girl / boy thing remains irrelevant. A more elevated breed perhaps and also an easier and brighter future.

My mantra has always been, when asked about being that girl in a man’s world: When it stops being mentioned, then, equality has arrived. Q.

Issue No. 2 – Qandor – 081

WOMEN IN PROPERTY

Q&A WITH PENNY MOSGROVE.

Penny Mosgrove CEO Quintessentially Estates www.quintessentiallyestates.com

Having started out in the industry at the age of 16, Penny Mosgrove now runs a global real estate empire. Quintessentially Estates, with a network of 70 worldwide off ices, is the go-to property advisor for HNWIs the world over, whether they’re seeking to buy, sell, rent or manage, from Barbados to Dubai and Hong Kong to Los Angeles.

How is the luxury property market changing?

HNWIs have become far more conscious about their carbon footprint in the past 12 months. For example, we’re seeing changes in how and where furniture is sourced and made 082 – Qandor – Issue No. 2

than ever before, including a surge in demand for high-end decor made using regional materials by local craftsman. Buyers are less likely to ship pieces from multinational companies due to the carbon footprint. We don’t offer clients single use plastic water bottles anymore and have banned them from our office.

We have also seen more interest in health and wellbeing, with many clients testing the air quality before they purchase a property, and it’s common to organise for pollution monitors and air filtration systems to be installed before the move-in day.

Instagram is also having an impact on the market. Developers have realised that if they make a property feature Instagramworthy, they will get free advertising, as

people tag themselves there – this is a trend that has really taken off over the last 12 months with more and more quirky and iconic features being created.

Are priorities changing in terms of location?

With climate conscious Millennials and vegan Gen Zs shaping the new luxury landscape, we’re seeing working patterns and lifestyles change every year. New destinations are popping up all the time. The younger generations’ open-minded choices veer away from traditional destinations, eschewing Ibiza for Marrakesh or the Caribbean for South America.

With flexible working now the norm, investors tend to use their secondary properties for all aspects of their life, so we see less and less homes sitting empty for large parts of the year. These buyers are more ‘air mile aware’ and often will not jet around the world for a face-to-face meeting, preferring a video conference call instead.

How does Quintessentially Estates separate itself from companies of the same ilk?

We’re the only global agency which sits between property and lifestyle. Thanks to our position within the wider Quintessentially Group, we know our clients’ lifestyles inside out: we know where they go on holiday, what schools they prefer their children to go to, which food and drink brands they have in their fridge. As a result, we’re able to offer highly nuanced and personalised counsel.

Globally, we allow our clients access to an unprecedented network of UHNWIs in order

to sell their homes. This reduces time wasters and means our clients’ properties are on the radars of the right type of byer.

Are broader notions of luxury changing?

Branded Residences have been a big hit in the last few years for wealthy investors and this micro-market is changing rapidly.

We’re seeing demand dampen for the glitzy designer brand partners, such as Armani and Aston-Martin, as discerning investors switch to more sustainable options. The Six Senses branded residences, which promote sustainability and wellness worldwide and also pledge to be plastic free by 2020 are a good example. Wealthy buyers are opting for these type of lifestyle homes over more traditional high-end brand associations.

Some of the biggest recent stock market successes have been sustainable brands such as Beyond Meat (vegan meat replacement) and Orsted (wind power).

HNWIs are engaging with the trend as they look to rebuild environments through sustainable investment. From passive cooling to energy efficiency and electric transport to biodegradable cleaning products and Earth Labs - the socially responsible revolution rolls on.

Do you remember the moment when you realised luxury property was your calling?

I was shadowing a manager on a house viewing when I was 18 and we visited a property with the most breath-taking orangery. I remember looking around and thinking that I wanted to spend the rest of my ➳ Issue No. 2 – Qandor – 083

career in the world’s most beautiful properties company. I like the time I have to think when as well as owning one for myself. That moment I’m having a meal on my own or going for a in the orangery shaped the rest of my life. walk or even on a train. It’s amazing the clarity and creativity you can achieve when you don’t What’s your personal definition of have any distractions. luxury?

Luxury is about how things make you feel and Who – dead or alive – has inspired as a result, it’s highly personal – what it means you the most and why? to one person isn’t the same for everyone. I Winston Churchill is an inspiration for am not particularly materialistic but luxury to never giving up; Steve Jobs for his absolute me is having the freedom to travel, gain new conviction in an idea and seeing it through experiences and create memories. It’s not all to change the world; and Coco Chanel for about a statement watch, but what actually her elegance and style, which I always feel enriches your life for the better. has a unique place in business. On a more personal level, my great uncle showed me the In what places/situations do you meaning of hard work and how this can help get your strongest business ideas? you achieve life goals and enrich your life for Travelling! With so much of it involved in the better. Q. my job, I’ve learnt to really enjoy my own

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TAX

RESEARCH & DEVELOPMENT TAX RELIEF. SHAUN MARSDEN Director Catax Group www.catax.com

Qandor member and director of Catax, Shaun Marsden talks about a new way to use tax relief to fund innovation in your business Innovation and business development are rife in the UK, however this usually requires a significant investment from businesses which can be difficult to source, especially for start-ups and SMEs. One of the most commonly known forms of tax relief is Research & Development (R&D). This is awarded to businesses that invest in innovation, usually in the form of developing new systems, processes, products, materials, devices, or any changes to the way a business works.

086 – Qandor – Issue No. 2

Despite being available in the UK since 2000, it is still largely under-claimed. The latest statistics released from HMRC in October 2019 show that despite the abundance of innovation being carried out by businesses, only around 52,000 R&D claims were made in 2016-17. This is around 0.9% of the total number of SME businesses in the UK. The UK government is also looking to increase R&D expenditure as a % of GDP over the next decade from 1.7% in 2016 to 2.4% in 2027, so there is an awful lot of focus on ensuring companies are continuing to invest in, and be given the appropriate reliefs for developing, new innovations within their sector.

One of the most common reasons for not claiming is lack of awareness – many

faster, more cost effective, safer and more environmentally friendly, it is more than likely that they will be eligible to claim R&D tax relief.

Some examples of activities that would be eligible include: • Development and implementation of 3D design software; • Development of sustainable technology; • Development of tools and materials to improve efficiency; • Modern methods of construction and BIM; • Developing new and job-specific methods of installation and safe working procedures.

businesses are unaware that they are eligible for R&D tax relief. HMRC was careful to define R&D in such a way it could apply to varied work across multiple industries – the idea was to turbocharge innovation across every sector.

The construction industry is one filled to the brim with innovation. With companies constantly trying to find ways to make builds

With this in mind, accountants have a key role in educating business clients about the potential gains of R&D tax relief and where necessary, encouraging them to seek out the advice of an experienced tax relief consultant who can accurately advise on what work may qualify.

Catax are an industry leading tax consultancy who specialises in this form of tax relief. We employ over 100 members of staff across the UK and can guarantee to maximise the claim that is made on your behalf.

So far, we have helped clients claim back over a quarter of a billion pounds in tax relief, which is often invested back into the business to fund further research projects, hire new staff or to improve business premises. This is a relief that HMRC encourage businesses to claim as the money often goes back into the UK economy, so there really isn’t any reason not to try it. Q. Issue No. 2 – Qandor – 087

MORTGAGES

WILL MORTGAGE PROVIDERS LEND AGAINST MODULAR CONSTRUCTION HOMES? LEE LANGLEY Principal OnPoint Mortgages www.onpointmortgages.com

With developers increasingly l o o ki n g towa rd s modular construction methods, we are often asked whether purchasers will be able to obtain mortgages on the f inished units. Modular construction involves a factorycontrolled setting where a building is produced in ‘modules’ offsite, before being transported to the site for assembly.

This can be up to 30% quicker than traditional methods, removes the impact 088 – Qandor – Issue No. 2

of weather and other environmental delays as well as reducing the complaints from neighbours in respect to noise or other disruptions.

The short answer to this is yes.

Although, interestingly, the support for this sector is primarily coming from the prime high street lenders, names like Halifax, Santander, Nationwide, Barclays and Virgin - although you should always consult on their exact criteria. Often the LTV can be capped at 90% for new builds as opposed to the usual 95% maximum on residential borrowing.

Help to Buy funding is available on approved

developments and the options are wider for those buying a home compared to BTL. The specialist BTL providers are not as flexible on their criteria yet, although some options, like Leeds and Skipton Building Societies, can look at modular on a case by case basis.

Lenders are primarily led by the surveyor but will look at the construction type and whether it complies to their policy and technical requirements, as well as the properties saleability both present and future.

In other words, is it readily re-saleable in respect of type, location and demand.

Typically, the acceptability for lending purposes will be reviewed based on the following criteria:

Any dwelling with a full BOPAS (Build Offsite Property Assurance Scheme) approval will normally be acceptable, subject to valuation and normal new build lending criteria. The list of BOPAS approved dwellings can be found via the following link: www.bopas.org. Note it is always worth asking your mortgage broker upfront to check the likely future funding options for a development, to confirm they will be suitable for the target audience. Q.

• Compliance with planning/building regulation requirements; • An appropriate building standards warranty scheme (NHBC etc.) and/ or monitoring by a suitably qualified consultant/architect; • Eligibility for normal buildings insurance cover; • Acceptability to other mainstream lenders; • LPS2020 (although no longer being provided) or a UK Agreement certificate preferable for the system as a whole; • 60 years minimum design life assessment tested by a British accredited body (i.e. BBA/BRE) • Satisfactory construction standards and valuation; • Re- saleability; • Geographic and/or site considerations.

Issue No. 2 – Qandor – 089

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WOMEN IN PROPERTY

PROPERTY DEVELOPMENT: EXPECTATION VS REALITY. GRAZINA THOMPSON Investor & partner Dapatchi Group www.dapatchi.com

Grazina Thompson is a buy-to-let investor.

In this article, she demystifies some of the preconceived notions associated with property development The Glamour Here I am sitting on a gorgeous tropical beach, sipping cocktails and posting beautiful photos of the sunset on Instagram. That’s right. I’m a property millionaire who made a fortune with no money down. But hang on a minute... rewind! Maybe not quite. Although that’s what the majority of property events and courses promise, ➳ Issue No. 2 – Qandor – 091

make sure you don’t leave your day job just yet my friend.

The Truth It was five o’clock in the evening when my phone rang. Squatters had moved into one of my buildings again. It’s been nearly two years since we started obtaining planning permission to convert this gorgeous Victorian school into 25 luxury apartments, so it still stood empty.

It wouldn’t have been such terrible news if I didn’t have a very important meeting onsite with an investor in two days’ time. The delay in planning already meant that I had to re-finance most of my assets to continue financing the project beyond the expected timescale (no money down? Afraid not!) and profits were evaporating in front of my eyes as high interest payments where disappearing down a big black hole (so much for “you will make millions in property”).

092 – Qandor – Issue No. 2

The squatters got sorted out and the meeting went smoothly. Delays and “surprises,” though, are a common reality.

As this wasn’t my first purchase, I was lucky (or rather smart enough) to have bought the building at a good price, otherwise I would have been in deep trouble by now.

Even in this tough competitive market, I have an absolute rule: to not pay more than what I truly think is a safe price to pay.

As a rule of thumb, I will not touch a property if the projected return is not at least 30%. I am yet to have a project that had no delays or surprises that cost me money. No matter how much planning and due diligence you undertake, you are still subjected to outside forces. Not to mention the people you’re working with who may behave unpredictably. If you don’t have a buffer, you are running the risk of working for no or little return, or worse still, losing

your own, or somebody else’s money. That mustn’t happen.

To me, property development is not about glamour or making millions. I would say it is not even about property. What it is, is a number of things that I have learned are key to this business and which you’d better like or be good at in order to succeed.

is definitely possible but, like growing any other business, it takes time and tenacity.

It takes time to develop relationships with agents, professionals, to gain trust from your investors, to learn and grow from each project, as they are always so different. Without those foundations and evidence of experience, it is extremely difficult to raise equity or get loans.

Property Development is a business...

Finally, it is a business within which you can put your own stamp. I love how diverse the property world is. You can select a strategy and role that you actually enjoy and in doing so you can contribute in a meaningful way.

As a company we like to push the boundaries, always believing that there is more to be done to transform the industry and improve people’s lives.

To sum up, developing property is not a sprint to the finish line of becoming wealthy using other’s money, at least certainly not at the beginning. The reality is that like building any other business, it takes years of patience, smart risk management and building (pun intended) the right teams and pathways to form a purposeful enterprise that you can all enjoy working within. Q.

…about people.

Every aspect of property development involves people and its success as well as your own sanity are highly dependent on working with those who uphold similar values, are truthful, transparent and professional. Having worked as a solicitor in the past and being used to a high level of professionalism and integrity, I’ve found that people with those values are a rare breed. However, through trial and error, I am now surrounded by some exceptional people, business partners, professionals, employees and lenders, that I am very proud to work with. …of “problem” solving.

I find that days are largely taken up by solving a continuous and constant stream of issues.

I have actually stopped using the word “problem”, because I have just accepted that they are not problems, but a daily property developer’s reality. Just this act of acceptance meant that instead of being stressed, I enjoy dealing with what I now call challenges. …requiring persistence and time.

Being successful in property development

Issue No. 2 – Qandor – 093

CROWDFUNDING

THE TREND IS YOUR FRIEND. MICHAEL BRISTOW Co-founder and CEO Crowdproperty www.crowdproperty.com

As we move into 2020, it’s time we all take time to look forward and plan for the year ahead, if not also evolve our 3-5 year plans.

Most importantly in any sector and especially so in the property sector, we should all understand and embrace trends and innovations in the marketplace, especially those which will inevitably become more significant constituents in the real estate markets that we all participate in.

At CrowdProperty, we’re right at the forefront of the market, given our expertise in exactly the asset class and segment we lend to – property professionals undertaking small and medium sized projects. Exactly those people, in other words, who have been underserved by traditional sources of 094 – Qandor – Issue No. 2

finance for years. We lend to anything that will take the developer from acquiring the asset, through adding value, to either selling or refinancing.

Strong Insight In this position, we get an eagle-eye view over the whole SME development market - as we see about £2bn of applications each year - so get a real feel for the breadth of the market. This gives us strong insight into the major trends among SME developers – i.e. your peers. To reinforce this, we conducted the largest SME property professional survey ever to give you a strong, collective voice – and, of course, to give us a greater insight into our market. What we’ve learned is it’s far from plain vanilla build out there – it’s an incredibly inventive and innovative market.

Given this privileged position, we thought it would be useful to share a few of

the trends we are seeing. Here are some of the things that your peers are doing more and more of in the market: • Build/Convert to hold – it’s the new buyto-let with quicker capital recycling in a low capital growth environment (many previously pure-play investors are now moving into value-adding projects) • Portfolio purchases from tired landlords – and some complex ones involving rolling refurbs, exiting some, getting equity capital out and holding to cashflow (taxation hikes, of which we haven’t yet seen the full extent, are driving portfolio exits, presenting opportunity) • Joint ventures – price expectations for sites are not aligned; working together can get everyone what they want (and we’ve just released a first-to-market dedicated product for this) • Modern Methods of Construction/ Modular – it doesn’t solve all challenges

but it’s ‘must have’ knowledge in your toolkit to future-proof your development business (and we’ve just released a firstto-market dedicated product for this too) • Air Rights + Modular – a powerful city strategy which we’ve backed (what’s more, it’s rife for a joint venture structure too... Air Rights + Modular + Joint Ventures + CrowdProperty = big gains from 4 powerful strategies compounding together). See the video case study below.

• Price point arbitrage – a very purposeful strategy to take properties from illiquid price points to liquid ones (e.g. converting large expensive houses where the market is much more stagnant into Help to Buy territory) • Build a brand and a targeted product – differentiate, know your customer well, but always have a plan B. This is one way to build differentiation vs volume house builders and create character to stand out

Issue No. 2 – Qandor – 095

• Develop for your target customer.

• The Cookie-Cutter strategy – do one thing and get better and better and better. Just like we are doing. That’s how to become world class.

Funding such innovation shouldn’t necessarily be seen as risky. Indeed, not funding innovative forms of construction - at a time when housing undersupply is so chronic and when sustainable construction is ever-more important - is the real risk.

Sadly, not everyone agrees. Take large traditional lenders, for example.

There was a time when banks could draw on a range of expertise to make a lending decision. But times change. Banks have had their lending curtailed in order to lower their risk profile, and this is writ large when it comes to property lending. The corollary of this is that if you’re not doing so much property development lending – especially to smaller and mid-sized developments – then you don’t need the in-house experts to assess the advisability of new developments in the property market. You just sit it out, and if the regulators agree that it’s low risk, then maybe they’ll help finance it.

Banks have to play it safe – and ‘safe’ here is defined as what a truck-load of actuaries, lawyers and regulators view to be safe: all boxes ticked; the reasons for the last crisis legislated against; door firmly double-bolted now that Neddy has fled the stable.

Computer says no The problem for the property developer is that, if and when this happens, oceans of water have passed under a good many bridges - and with this, the premiums that entrepreneurs have sought to generate. The 096 – Qandor – Issue No. 2

resultant problem for the property market is that, if this is the only source of finance, property continues to be built as property always has been: no innovation, no forward thinking, no progress. Progress = risk.

Computer says no.

Fortunately for property innovators, that isn’t the only solution. There’s CrowdProperty, for a start.

We’re not only property finance by property people but – precisely because we’re property people – we’re right at the frontier of developments in the property market. Not only do we offer the full suite of short-term finance packages but, as experts who stay at the very cutting edge of property market trends, we’ll fund any property type, construction method, tenure type or deal structure: CrowdProperty supports all types of

residential property projects, whatever the structure or nature. For example, we have funded many modular developments. While modular structures and Insulated Concrete

Formwork (ICF) are not new approaches, they are relatively novel when compared to more established practices. Although they offer many benefits – such as ease and efficiency of construction, and excellent insulation and airtightness for the latter – we regularly hear that traditional lenders want to keep them at arm’s length. It seems most simply don’t have the in-house skills to assess and structure them as lending prospects.

Physical to Finance This isn’t just true of the physical structures we will consider, but the financing, tenure, ownership or deal structures too – something, again, the banks can be very leery about.

We understand the implications of different business models or deal structures,

how market demand is changing the endproduct and the funding products needed: from auction finance, through bridging finance, to new build development, and

everything in between.

This includes complex, bespoke and hybrid structures where needed (which do wet the appetite of our property experts, if we’re honest). The world does not consist entirely of semi-detached build, and it needs more than a semi-detached mindset to service these needs.

For example, when a vendor has too high expectations of the value of the land, and the developer finds it difficult to make the deal stack up at that price, vendor joint ventures are becoming a sensible approach. The vendor might put in the land, the developer brings funds and project execution, and all share in the profits - ensuring the site actually gets developed. We fund these and believe this to be a strong model in today’s market.

Equally, we’re seeing many tenure types, such as HMOs, serviced accommodation, co-living, housing benefit, temporary accommodation, central government contracts... to name but a few. And again, we’re at the forefront of funding these because many of them we’ve done ourselves and know that, while they can be a headache to fund and complex to operate (putting many off), they can also be very strong business propositions.

In short, because we are property people, we can see the potential with such propositions, where others just see an unfamiliar deal that they’re not prepared to take the ‘risk of lack of knowledge’ on. If you’re doing any of this and are getting uncomprehending looks back from your lender, then drop us a line. If you’re doing something we’ve not got covered... well, we’d be surprised, but we’d love to hear from you, as we – like you – are determined to stay at the forefront of this business and keep fuelling its, and your, innovation. Q.

Issue No. 2 – Qandor – 097

CROWDFUNDING

HOW TO RAISE FUNDS FOR YOUR PROJECT. ROB WILKINSONN Co-founders Crowd With Us www.crowdwithus.london

Co-founder and director of Crowd With Us, Qandor member Rob Wilkinson gives tips on how to raise funds through the use of a crowdfunding platform Developers seeking to scale their business and take on more developments face an interesting dilemma. The demand for and supply of private funds into property investments is growing, however, increasing FCA regulatory guidelines make capitalising on this increasingly complex.

As a group of respected and experienced developers, raising finance compliantly is imperative. This means understanding what and who you can promote your projects to and having the procedures in place to ensure 098 â&#x20AC;&#x201C; Qandor â&#x20AC;&#x201C; Issue No. 2

that you are following the latest guidelines.

A simple way to do this is to work with a platform like Crowd with Us. Why Crowdfund?

Compliance FCA regulatory guidelines have ruled out the use of collective investment schemes and made promoting asset backed projects to retail investors nearly impossible. In order to promote deals and raise funds compliantly, developers need to work with regulated bodies and / or platforms.

Reach and scalability In the past few years Crowdfunding has exploded onto the scene in our ever more connected and global world. For developers,

it offers a scalable model to inject debt and equity into their projects compliantly and flexibly, while simultaneously appealing to the growing market of increasingly sophisticated investors seeking greater diversification and higher returns.

Flexibility & Control: finance and structure Where traditional financial institutions work within a strict set of rules with little room for manoeuvre, Crowdfunding has less constraints. Although we too work within strict guidelines, we are able to create adaptable deal structures acceptable to both developers and investors, giving the developer and the platform greater flexibility and control.

Focus on the Development The majority of developers we speak to wish to spend more time delivering their projects on time and budget and less time pre-classifying and managing multiple investors. Crowd with Us takes control of and responsibility for the fundraise, publishing and promotion of the deal.

Marketing and Brand Awareness Throughout the fundraise we generate content, co-host site visits and presentations raising developers’ profiles and brand proliferation.

In addition to completing the raise this has the potential to generate leads for new projects and to tap into an end buyer, boost sales and secure an exit.

How to maximise the return from your fundraise Working with a compliant and reputable platform can be part of a strategy for longterm, sustainable growth across your business. There are a number of things you, the developer, can do to ensure a fundraise is successful and to maximise the benefit of Crowdfunding your deal.

Provide Complete Information Providing complete deal information, thirdparty verification of numbers and responding to questions that may arise, allows the deal to progress through due diligence, compliance and launch smoothly and efficiently. ➳

We ensure that investors are pre-classified and have completed fraud and AML/KYC checks. We have a legal process to represent investor interests and ensure securities are in place. Once the fundraise is complete and the project is underway, we respond to investor questions and work with you to provide investors with on-going communication.

These structures reduce the risk to the developer and allow them to devote their full attention to the project.

Issue No. 2 – Qandor – 099

Crowdfunding is a process As each of our deals is structured to suit the project, it can take time for investors to understand the intricacies of a development and to build trust with the developer.

To make the process easier, we share details on the progress of the fundraise with the developer on a regular basis. We also highlight the key concerns from investors, allowing parties to respond to these where possible.

What to expect?

We promote the deal to our network of pre-classified investors. We help investors understand the deal, the structure and the developers experience through webinars, podcasts, video interviews, site visits, presentations and drinks events. Together these give investors a deeper understanding of the investment offer.

What is important to investors?

In our experience investors value transparency, 100 – Qandor – Issue No. 2

responsiveness and a balanced representation of the deal. It’s important for them to build trust and rapport with the developer, appreciating opportunities for site visits and to ask questions directly to the developers.

Work with Us Whilst we can and do offer first charge loans, Crowd with Us primarily focuses on funding second charge debt and equity into projects, working closely with a number of senior lenders. In the past 12 months we have facilitated the purchase of +£100m GDV across 12 projects in this way. Q. To find out more if we can help you fund your project please contact our Head of Property, Brian Levin on: onboarding@crowdwithus.london or Qandor member and CWU Co-Founder Rob Wilkinson on: rob.wilkinson@crowdwithus.london

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CROWDFUNDING

WHY YOU SHOULD CONSIDER CROWDFUNDING FOR YOUR NEXT PROPERTY DEVELOPMENT. JOHN FRIIS Property Developer and MD Watermark Homes www.watermarkhomes.co.uk

In 2018, in partnership with former Qandor member Lafina Diamandis of Eurekadoc, Watermark Homes successfully partially funded the purchase of our Catherine House development through crowdfunding

Project’ (since both Lafina and I are doctors), was over-funded on the Simple Crowdfunding platform in just seven minutes!

In this article, I shall outline the benefits and advantages of crowdfunding for both property investors and developers. But first things first: what exactly is crowdfunding?

A conversion of an office building in Borough Green, Kent into 5 apartments, this development, nicknamed ‘The Doctors’

What is property crowdfunding?

Property and real estate crowdfunding

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is a comparatively new, but increasingly mainstream and popular, way of both investing in property and raising money to fund the purchase and/or development of a property.

A large number of individuals invest, typically online, each contributing a small percentage of the overall total required.

What individual investors receive as a return depends on how their investment is structured. This may be either a share of the profits once the property is developed (and sold), a fixed monthly or annual return, a proportion of the rental income from the developed property, or indeed a combination of all three.

What are the benefits of crowdfunding for property investors?

Crowdfunding multiple projects (avoiding putting your metaphorical eggs in one basket) is a way of mitigating risk and allows investors to create a diverse investment portfolio.

With comparatively low minimum investment limits, it is much more accessible to investors who cannot afford the high upfront capital expenditure associated with more traditional forms of property investment.

It avoids the less appealing aspects of other forms of property investment e.g. having to be directly involved in sourcing,

negotiating, or managing refurbishments or tenants.

Crowdfunding platforms make the investment process simple, fair and transparent for investors. Moreover, crowdfunding is a very regulated industry and, while no investment is ever risk-free, these platforms conduct themselves in accordance with the Financial Conduct Authority (FCA)’s strict codes.

What are the benefits of crowdfunding for property developers?

Save time: Engaging with investors can be surprisingly time intensive. This is especially true: 1.When setting up a new limited company special purchase vehicle (SPV) prior to the acquisition of the development property; 2. During the construction phase when providing investors with updates on how matters are progressing.

They will handle all the KYC (know your client) and AML (anti-money laundering) requirements which investors must provide to the developer’s and the senior debt lender’s solicitors.

Convenience: A crowdfunding platform facilitates effective developerinvestor interaction, particularly in the ➳ Issue No. 2 – Qandor – 103

initial, formative stages of the relationship.

Discussions about legal documentation provided by the developer’s solicitor to the investor, and therefore changes to the documentation as a result of these discussions, are minimised. In a timesensitive transaction, where the deadline to completion of purchase, for example, is approaching all too quickly, this can be crucial for success!

As the development progresses, they will also provide a means for sharing written or video project updates to investors and provide a private online forum for investor questions. The ease of having an online archive and record of these interactions in one convenient online space cannot be underestimated.

Save money: While it is true that crowdfunding platforms will charge you a fee for the service they provide, there are at least two reasons why they may very well save you money.

In contrast to individual investors or firms providing private equity who may expect you to stump up solicitor’s costs, the investors ‘in the crowd’ are responsible for the fees of any legal advice they may wish to seek to interrogate the loan or shareholder’s agreement your solicitor has drafted.

The crowd may also choose to accept a lower percentage of the expected profits or a lower fixed return on their investment in a particular development project than an individual investor investing a large sum of money would. However, this is obviously not a given!

Greater security (less risk): Legitimate crowdfunding platforms (such as Simple 104 – Qandor – Issue No. 2

Crowdfunding, Crowd with Us and CrowdProperty) are FCA authorised and regulated. Moreover, for each opportunity these platforms promote on their websites, they will have conducted extremely detailed background research and fact checking on both the property and the developers themselves. Investors and developers alike should take reassurance from these levels of due diligence.

Long-term play (butterfly effect): When you have a successful property project, which generates the expected returns, an investor is likely to: 1. Reinvest; 2. Tell other people about their experience.

If you have a project with 1 or 2 investors, you would expect that these investors would each tell one or two of their friends and colleagues about their happy experience, some of whom may, in turn, then invest in your next project. Now imagine this multiplied by 10, 20, 30 or more depending on the size of your ‘crowd’.

Building an investor base takes time. An online crowdfunding platform can therefore be a real boon.

Once your first project has made its expected profits for your ‘crowd’ (and you’ve kept them updated, building trust along the way), the next time you want to raise some equity, your crowd will be right there, keen to invest again! Q.

LANDLORD

KEEPING LANDLORDS HAPPY IN TIMES OF BREXIT. ADAM JOSEPH CEO Happy Tenant Company www.happytenant.co.uk

With extensive experience in the industry, having launched and sold a number of estate agencies in both times of growth and recession, I have full knowledge of working in challenging circumstances There has been enormous political uncertainty in the past few years, which should hopefully stabilise now that there is a clear strategy in place for Brexit to proceed. This instability has affected not only the property market but wider industry in general, which much trade stand still until a clear path was in view. Whether a staunch Brexiteer or Remainer, there is no doubt

the country’s disarray has been wholly detrimental, and now that a firm date is in place to leave Europe (as of writing this article!), I’m hopeful business can resume as usual. Since joining The Happy Tenant Company as CEO in 2017, my ambition has been to challenge traditional property management by streamlining processes and ensuring Landlords are receiving a far superior service than what they have experienced previously. Clients traditionally only change managing agents when they have either experienced bad service from their past provider or they feel ill-equipped to deal with their growing portfolio, so it is imperative we add value and make them ➳ Issue No. 2 – Qandor – 105

feel they are benefiting by entrusting us with their property.

Whilst the numbers of units we manage has been steadily growing, we have at countless times faced resistance from potential clients to make any changes to their investment management until the UK’s future was clearer. With huge differences in the two main political parties’ approach to property, the result of a labour win at the election would have provided us with a totally different landscape to that in which we are now in; one which would affect our clients and their investment strategy.

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A large percentage of our Landlords hold multiple units and reside abroad. The general feedback we are receiving from them post-election is that they feel secure the UK, especially London, in which we specialise, is still a safe place for their property investment. With the most widely recognised property research polls showing strong growth projected for the next few years, we have full confidence the market will go from strength to strength. Our aim is to continue our growth in the management of larger portfolios.

Our offering is designed to provide clear benefits and cost savings for multi-asset landlords, with the property management team fully equipped to look after large groups of investments, ensuring delivery

“With the most widely recognised property research polls showing strong growth projected for the next few years, we have full confidence the market will go from strength to strength.”

of high service levels and competency when any potential issues arise. Unlike traditional agents, we only manage property, which means we aren’t side tracked by showing properties or looking for the higher fees normally achieved in agencies.

Landlords can often find dealing with estate agents challenging. If a landlord has 10 properties within different areas of London which become available each year, and each property is on with 3 agents to maximise exposure, it means they potentially have 30 agents to instruct, negotiate with and chase up on activity. This can be time-consuming and, for a busy landlord, is an activity often dreaded.

To alleviate this burden, The Happy Tenant Company has a specific Agent Marketing department in place, whose role is to form and manage relationships with

Estate Agents on behalf of clients. This saves landlords precious time and hassle, and means that when their property is up for rent, they can deal with one person who manages the entire lettings process for them. We’ve built a panel of 500 lettings agents across London, all of which offer HTC Landlord’s discounted lettings rates and guarantee no renewal fees.

Alongside this, each property manager is assigned their own properties to look after. This enables the PM’s to really get to know their client and portfolio, however large or small, and this depth of knowledge proves essential in maintaining excellence.

Part of The Happy Tenant Company’s ethos is that no mark ups or commissions will be taken from contractors. Complete transparency is offered to further emphasise our commitment to building long-standing relationships with our clients. For larger Landlords, the bottom line profits are the true measure of success and the team work tirelessly to keep costs low and deliver higher yields.

We understand and respect the responsibility given to us by our clients and go above and beyond to ensure trust is preserved. Our view is that good property management comes down to customer service. We always put the needs of clients first and ensure the best value is achieved for all and this is now more important than ever. Q. Issue No. 2 – Qandor – 107

SHORT-TERM ACCOMMODATION

FROM PETROL SITES TO LUXURY HOMES. MERILEE KARR Director UnderTheDoormat www.underthedoormat.com

Founder of Under The Doormat, Merilee Karr recalls how her company came to be and the challenges she faced along the way I first came up with the idea for UnderTheDoormat after travelling for years – I think I travelled to more than 80 countries and had every kind of experience, from 5* luxury hotels to waking up to roosters outside my window and a bucket for a shower!

Staying in hotels on a regular basis for work made me realise that the standards provided by a hotel brand all over the world was great for consistency but never gave me an authentic local experience of the 108 – Qandor – Issue No. 2

destination I was staying in. Some days I would wake up and struggle to remember which country I was in.

At the other end of the scale, I often organised group trips for triathlons and staying in homes was a great option for the group, with all our equipment and having breakfasts at 5am. Some of the homes we stayed in were great, but others had their issues - I once arrived to find out I was also cat sitting.

This was back in 2014, and after a 13-year career at oil and gas giant Shell, I realised it was time for a new challenge.

A new sector needed to be created in the homestay market – the Branded Home Accommodation sector. My vision for UnderTheDoormat is to enable modern

travellers to enjoy the comfort of a home with the professional service of a hotel anywhere the world.

Six years later and UnderTheDoormat is now an award-winning luxury home accommodation business, with multiple routes to market for both homeowners and guests, delivering a high-quality service across more than 300 homes in London.

Along the way we have raised more than £2m of investment to help make the vision a reality.

Unfortunately, just 3% of investment goes to female founded companies in the UK. Having a sound business model and a clear plan for your investment money should be the most important factors and hopefully the more female founders that successfully raise investment, the more we will help to change statistics like these.

With some incredible strategic investors on board from the property world and traditional hotel industry, we are now developing out our technology, further growing our London portfolio with property companies and expanding into new locations with local partners. 2019 was a fantastic year for us with growth rates of up to 50% and launching 5 partners under our new B2B service for smaller holiday rental companies who are looking to drive more occupancy in their portfolios. Booking platforms are now dominating the market, and many of the more traditional holiday rental companies need our technology and expertise to drive more and higher-value bookings.

Some of UnderTheDoormat’s growth path can be attributed to my experience at Shell. Managing the Global Maintenance ➳ Issue No. 2 – Qandor – 109

Operations of over 12,000 global petrol sites has many parallels with managing a dispersed network of homes and setting standards across these homes and the wider industry is a great passion of mine.

Outside of UnderTheDoormat, I cofounded and Chair the industry body, the UK Short Term Accommodation Association, alongside Airbnb, HomeAway and onefinestay. This industry is growing fast and PWC predicts that by 2025 the UK sharing economy will be 20x the size it was in 2016, reaching £140bn, £52bn of that in accommodation.

My passion is for the industry to professionalise and grow responsibly – guests should be able to feel confident in the quality of the home they have booked, whether it is cleaning, health and safety or little touches like quality white linens and toiletries in the home. Hotels are independently graded so guests know what

110 – Qandor – Issue No. 2

to expect and homes should be no different.

Setting these standards and professionalisation can only be achieved though collaboration in the industry but I hope that UnderTheDoormat can lead by example. We are the first company to be Accredited in the UK by the STAA/ Quality in Tourism scheme. I am also working with Westminster and Manchester City councils to implement new technologies to help buildings manage the growth of short-term rentals in their buildings in a transparent and controlled way.

It’s not just about standards for guests.

People with lovely homes and professional property companies will only short let if they are professionally managed and insured properly. UnderTheDoormat has market-leading insurance in place to protect the homeowner’s most important asset, and our satandards around cleaning, security procedures and guest ID checks are all integral to their confidence in us – allowing them to earn effortless income while their property would be otherwise vacant. That is ultimately the vision for UnderTheDoormat – matching beautiful homes with great guests and providing an excellent technology-driven service in between!

Six years in and I am more excited than ever about the growth potential of the business. I want to support other women on this journey as there are incredible female entrepreneurs out there and the more of us that succeed, the easier it will become for each of us on our journeys!

If you have a property or a portfolio of properties that could benefit from shortterm rentals, and want to find out how UnderTheDoormat can help turn it into an income stream for you, get in touch at underthedoormat.com Q.

Issue No. 2 – Qandor – 111

WOMEN IN PROPERTY

BEING NIMBLE.

HANAN KANDILI Founding Director The Double Unit www.thedoubleunit.com

Growing a business is part planning, part responding and part creativity. Key take away: The most successful companies tend to be the ones nimble enough to adapt appropriately to change.

Step 1: Think big picture Take a moment and think about where you are and where you would like, or need, to be – it could be a case of tightening the purse strings in a particular department or expanding into a new geographical region. Write it all down, prioritize the list and give each item an ideal timeline. This is the stage where you can dream big; we’ll take stock in later steps and build in what’s practical, but for now, get it all down.

112 – Qandor – Issue No. 2

Step 2 – Evaluate the present Ok, so now we have the dream. Let’s consider the reality. Being rock solid in your reporting is crucial here, as it enables you to see your business as it is in reality, not your perceived reality. As business owners, we can be guilty of being too idealistic about our business because, in many cases, we have built them from scratch. Be honest with yourself, follow the graphs and pinpoint key areas of success and failure, being sure to consider extenuating circumstances (market, weather, the World Cup...)

“The best laid plans of mice and men often go awry, so it’s important to be adaptable.”

Step 3: Subtract step 1 from step 2 Quantify the distance between where you are now and where you want to be. 150% growth, a new office on a new continent, a more efficient pipeline, increased sales?

It’s most likely possible, but if you aren’t organically moving in that direction now, it will probably require additions or changes – meaning more money, time or both. Get onboard with that and start to consider what budget is available, where funding is possible, what can be absorbed in-house and what needs external expertise. At this point, it’s prudent to urge you all and remind ourselves that the future isn’t always brighter. It’s crucial to have goals to work towards, but it is also crucial to remember that things change, and the most successful companies tend to be the ones nimble enough to adapt appropriately to change. ➳

Issue No. 2 – Qandor – 113

Step 4: Reconsider your timeline Go back to your original timeline and input the additional factors, move things around and create a realistic calendar with short, medium- and long-term goals informed by your priorities for one, three and five years.

Step 5: The nitty gritty Create an action list for each priority with a named person to take it forward, allocate budget where necessary and get the team on board. Communicating a vision for growth is so important to team buy in which, in turn, makes success more likely.

Step 6: Keep on top of it The best-laid plans of mice and men often go awry, so it’s important to be adaptable.

It’s also important to monitor your project and understand that industry changes can seismically shift the course of your planning.

Don’t fall into the trap of believing that,

114 – Qandor – Issue No. 2

because you planned it, it will be so.

It’s also important to stay on top of the process, encourage, hear people’s ideas and make the difficult decisions that will steer the ship where you want it to go.

Finally, the hardest part of all: understand what your ABF (absolute bloody final) line is. What that means is be prepared to admit when projects aren’t working. Often, we can become a bit tunnel vision and be driven by the idea that money has been spent, so it’s a waste to pull the project. In some cases, that is true, and it’s worthwhile to relook at projects that may potentially not be functioning at optimal level and understand what changes can be made.

But it’s also really important not to keep sinking funds that could be better utilized elsewhere, just because you’ve already spent money on it. Sometimes, the best-laid plans of mice and men DO go awry and that’s just a reality of business. Q.

LAST WORD

A REFLECTION ON 25 YEARS IN THE COMMERCIAL PROPERTY SECTOR. ANDREW MCDONALD Co-founder Tandem Real Estate

The fact that I’m composing this article on my laptop on a Friday afternoon is just a small example of how much ‘change’ there has been in the property industry since my first day in this fascinating profession of ours. Chartered Surveyors of my ‘vintage’, especially those market-facing, will tell you of regular long Friday lunches pondering over whether to go back to the office. The unwritten rule was: if you were still out at 4pm, you might be best served giving the return a miss!

A Fridays in surveying primarily comprised nursing a sore head with a ‘greasy’ at a local cafe, before a dozen or so phone calls through the morning. Then off to meet other agents or clients for market tittle-tattle, hoping to pick up some intel which may lead to a deal, or alternatively stumbling across that most valuable currency of an agent: juicy industry gossip.

The lunch would invariably be in a cosy basement wine bar or, if in summer, a pub spilling out onto the pavements of a Mayfair side street. Much fun and merriment were had.

Somewhere along the line, email and mobile phones meant enhanced connectivity and ➳ Issue No. 2 – Qandor – 115

the need to convene over a lunch lessened.

Fund Managers are now highly policed and long, gratis, lunches can break numerous FCA rules. Getting clients out to play is tougher.

Nowadays, graduate surveyors are more likely to be spotted with a protein shake and muesli for breakfast. The explosion of the gym (and Instagram) scene has seen the average waistline diminish around West End offices.

Agents will now socialise over a Spin or a HIIT class followed by a salad and sparkling water.

Productivity surely benefits and mental health, too.

I fondly recall shuffling up to Berkeley Square House, brogues polished and TM 116 – Qandor – Issue No. 2

Lewin shirt fresh out the packet, some 25 years ago. My employer was Churston Heard and my retail agency ‘patch’ was central London.

My small corner office on the 7th floor was nothing like you’d find now: we had one chunky ‘Wargames’ sized computer gathering dust on a spare desk; the office wallpaper was actually a fuzzy carpet and our dictation machines the size of small car. I was handed a red blotting-book reminiscent of an era further back. Thankfully we didn’t have quills on the desk, but we were encouraged to sign our numerous daily letters in ink. We went to a basement Italian restaurant in Mayfair for lunch, where I was directed never to eat pasta in front of clients if I couldn’t be sure of not dribbling down my shirt! We had a couple of beers before returning to count the clock down and then the inevitable trip to a Mayfair pub.

In those days you could pop into most bars around Mayfair and happen across a useful acquaintance. Both Berkeley and Hanover Squares were densely populated surveying enclaves: a genuine, buzzing, market place. Over the years, most of the big property consultancies have relocated to the fringes of the W1 postcode. Being in such close contact no longer served the same purpose while at the

same time the hedge funds swamped Mayfair and St James’, bringing in commensurate hikes in office rents.

Surveying through the 1990s was evolving into a new era; an advancement from the old-school offering it had been since time immemorial. Ties were coming off and stuffy attitudes changing. HR departments were being established and employee welfare becoming a ‘thing’. Duvet-days were whispered and graduates, thankfully, treated more humanely.

I recall our HR ‘team’ in the 90s at Strutt & Parker’s Commercial HQ (just off Berkeley Square): a delightful lady of retirement age, squirrelled away in a corner of the basement where she would smoke her ciggies, only really ever required to hand out the occasional P45.

Employee welfare was taken care of at the Coach & Horses where Partners and Graduate Surveyors mingled after a long day working the phones. We were spending so much of our collective take-home there, we made a serious attempt to buy the pub!

The comfortable ‘job for life’ philosophy has largely gone. Arguably, some of the Institutions still retain this, although young and ambitious surveyors bounce around West End consultancies looking for the next promotion and pay rise. The days of the elderly Partner resting on laurels while creaming profits from the young bucks is pretty much over. The youth no longer accept this and the change here is healthy and welcome.

Guy Grainger, JLL’s progressive CEO of EMEA, recommends looking for the next challenge at five yearly intervals to avoid becoming stale. Nepotism is still prevalent but these days ‘the son/daughter of ’ competes

with a highly qualified talent-pool with many potential recruits armed with a Masters or being alumni of Cass Business School.

There has been a reorganisation amongst the consultancies, too. A number of the midsized agencies have merged to acquire market share and to serve the ever-widening demands of the client. The research facilities of the major consultancies are incomparable to how it was in the 90s. This comes at a financial cost, of course, and the main brokerages have eyewatering fee targets. At the other end of the spectrum, lean, niche, property investment brokerages continue to spring up and thrive through a hunter-gather mentality combined with fleetness of foot. Unless they have a particular specialism, the mid-sized companies can look endangered.

I would still welcome advancement in certain areas: General Practice consultancy ➳

Issue No. 2 – Qandor – 117

fees can be lamentable, especially when parsed against capital values in commercial property.

Hopes were briefly raised with the merger of Drivers Jonas and the accountancy firm Deloitte in 2010. Perhaps fees would slowly start to match those of our illustrious cousins?

But no. Accountants and lawyers are well used to charging handsomely and by increments of an hour. A surveyor is well used to being bled dry of information clinging on to the hope of a large transactional fee somewhere down the line, often in vain.

Historically there were three primary commercial sectors in which to invest: retail,

118 – Qandor – Issue No. 2

offices and industrial. Retail warehousing had freshly entered the scene and the market was exploding. Shopping centres were becoming more sophisticated although high streets were homogenising: multiple retailers such as Clintons, Carphone Warehouse, JD Sports, Superdrug and Vision Express were lining up next to each other. By the arrival of the ‘noughties’ there was a uninspiring uniformity along many high streets up and down the country. This blandness has been cruelly exposed with the maturity of internet retailing.

The retail sector, comprising a large proportion of many Funds’ portfolios, is undoubtedly going through a structural change and no one knows for certain what the future holds. Nor how long before that future is here.

Transaction levels are markedly down and show little sign of picking up in a meaningful way. It’s not unheard of for a shopping centre, worth £60 million a few years ago, to be now

“My small corner office on the 7th floor was nothing like you’d find now: we had one chunky ‘Wargames’ sized computer gathering dust on a spare desk; the office wallpaper was actually a fuzzy carpet and our dictation machines the size of small car.”

only worth £10 million or so. Office agents are monitoring closely the transformation in their market: co-working, home-working and requirements for flexibility are shaping the sector. The most innovative developers and landlords will make hay, pre-empting rather than reacting to occupiers’ needs.

Industrial agents (a.k.a shed-shifters) are having their moment in the sun as their historically junk-bond investments are keenly sought by Institutions seeking rental growth.

The old ‘alternatives’ including leisure, student accommodation and hotels are no longer considered alternative and canny investors seek out the next big thing. Having previously avoided the sector, Institutions are now circling the residential market with sizeable PRS schemes high up on requirements lists.

Old fashioned developers ruled the London postcodes although the advancement

of the global economy has created a turfwar, with money arriving from all four corners. Returns have been squeezed and these developers struggle to compete with the Oligarchs seeking a trophy asset or squirrelling money away from an economic or political catastrophe imminent in their homelands.

The industry used to be full of large, imposing, market-facing characters. It would be a shame to lose these individuals, replaced by faceless money-men from various time zones.

We now stand on the edge of a period of exciting change in the property market, with the advancementof AI and PropTech. A notable facet of the property market has been the glacial pace it can operate at. With greater transparency, automation, and heightened access to market information, one can but hope for a pick up in pace. We shall see.

On a personal note I am moving on from my Partnership at the retail consultancy, CWM, and setting up Tandem Real Estate. Myself and my co-founder will involve ourselves in investment brokerage across all property asset classes, partnering with best-in-class external advisors to offer the client a thorough due diligence service. At the same time we are putting together a JV with an architectural and development consultancy to kick start on the development trail. Redundant retail property in towns with a housing shortage is of particular interest and I look forward to sharing future news.

Lots to discuss and both personally and industry-wide I believe there are exciting times ahead. As any surveyor should, I’m always up for talking it through over a lunch. Or a spin class and a Perrier? Anyone, anyone?! Q. Issue No. 2 – Qandor – 119

Qandor Affiliates

Catax

CrowdProperty

David Phillips

Capital allowances

Crowdfunding

Interiors

Hilltop Credit Partners

Keystone Law

Landinsight

Legal services

Plot finding technology

LOFT

Lutron

Interiors

Lighting & automation

Mortgage Advice Bureau

Stretch senior funding

Mortgages & funding

Ocean Bathrooms

OnPoint Mortgages

Bathrooms

Mortgage brokerage