Qandor Magazine | Issue No. 1 | January/February 2020

Q. Magazine FEBRUARY 2020

The inaugural issue

CALEY HOUSE

WestEleven’s latest residential development

PRIME CENTRAL LONDON How Brexit has impacted this renowned part of the capital

CUT THE BS! Sound advice from our resident QS

And much, much more

CONTENTS CONSTRUCTION & DEVELOPMENT

THE FORMALITIES 04 FOREWORD A letter from our founder, Matt Siddell

26 CUTTING OUT THE BS

QS Michelle Lowe highlights risky business you should avoid

28 FUNDING ARCHITECTURE

08 MAKE THE

MOST OUT OF YOUR ARCHITECT

Tina Patel tells us how

13 MENTAL HEALTH How architecture can afftect you mental wellbeing

PITFALLS FOR SMEs

Paul Oberschneider highlights four mistakes residential developers make

CROWDFUNDING

32 A $900 BILLION INDUSTRY

Mike Bristow discusses this new era in finance

BREXIT

20 PRIME CENTRAL LONDON

How Brexit is affecting this market

22 APART-HOTELS Evan Maindonald discusses this interesting strategy

ECONOMY & WEALTH

36 CAPITAL

ALLOWANCES

Shaun Marsden explains why companies are missing out

38 NEGATIVE

RATES EXPLAINED The good, the bad and the ugly

FINANCE

44 MORTGAGE RATES

Lee Langley tells us the best rates

46 SIPP’s AND SSAS’s

George Ttouli explains the difference between these two pension strategies

INTERIOR DESIGN

50 SCANDINAVIAN STYLE

Nordic design is a burgeoning aesthetic

46 SYMBIOTIC

RELATIONSHIPS

Helen Touli explains how interior designers should work with developers

82 ONLINE

SHOPPING

LANDLORD 62 PROPERTY

MANAGEMENT COMPANIES Adam Joseph explains how they can work for you

Andrew McDonals explains the effect the digital age is having on the high street

SHORT TERM

ACCOMMODATION

86 TAKING PROPERTY OF THE MONTH

64 CALEY HOUSE Will Herrmann’s WestEleven showcase is breathtaking

PUBLIC RELATIONS

72 PR PLANNING IS A MUST

Hanan Kandili explains the importace of a robust strategy

RETAIL

76 THE FALL OF

THOMAS COOK Lessons we can learn from the loss of this major tourism company

ADVANTAGE OF SHORT LETS Merilee Karr discusses how short-lets can add profit to your portflio

TECHNOLOGY

90 THE CHANGING FACE OF INTERIOR DESIGN

Alan Waxman explains how technology is being used in projects to great benefit

EVENTS

94 A LOOK AT

WHAT WE’VE BEEN UP TO

96 EVENTS

COMING UP

04 | FOUNDER’S LETTER

Property and publishing - a collision of worlds to confidently work together and get deals done.

I

started Qandor a little over two years ago with the intention of creating a small community of like-minded property entrepreneurs. In no time at all, we saw our membership double, and then double again, and it became clear to me that I had identified a gap in the property world for a club that holds itself and its members to a core set of values, which has seen the creation of a protective, supportive, and honest environment in which our members are able

Qandor Founder Matthew Siddell Publishing Editor Kevin Taylor Managing Editor Gabrielle Winandy For editorial and advertising enquiries, please email: magazine@qandor.org Visit our website: www.qandor.org

It has been incredible to witness first-hand the deals, collaboration, partnerships and joint ventures happening in the club, which is only increasing as the club’s membership continues to mature. We have an exciting year ahead, full of plans and strategies to ensure the club continues delivering exceptional value.

Perhaps an unexpected by-product of a members club full of experts, was that we were able to harness the insight, opinion and content our members are continuously eager to share.

This is published daily on our website and is available to anyone keen to read their highly informative content.

Contributors Adam Joseph, Alan Waxman, Andrew McDonald, Evan Maindonald, Gabrielle Winandy, George Ttouli, Hanan Kandili, Helen Touli, Henry Sherwood, James Maltin, Lee Langley, Linda Rosen, Merilee Karr, Michelle Lowe, Mike Bristow, Paul Oberschneider, Piragash Sivanesan, Shaun Marsden, Tina Patel

Now, with a mini-library of highly relevant and informative content, my team has put together the inaugural issue of Qandor Magazine, a place where we can pull together all our contributors’ pieces into a great looking, highly readable digital magazine.

I invite to you enjoy our first issue, from thought pieces on how Brexit is affecting prime Central London (p20) to how property finance is becoming more egalitarian than it has ever been thanks to crowdfunding platforms (p32).

Be sure to check out Caley House too (p64), our cover story and a fantastic project by one of our members from WestEleven, Will Herrmann.

Matthew Siddell Qandor Founder

Qandor Team Membership Director Seeta Gharu seeta@qandor.org Membership Manager Rekha Patel rekha@qandor.org Investor Relations Consultant Barnaby Joyce barnaby@qandor.org

6pm Tuesaday 11 February Courthouse Hotel, Shoreditch

Qandor’s premier property networking evening With presentations from:

SIMON WOODROFFE, OBE Founder of YO! Sushi, YOTEL and YO! Home

MATTHEW HAMMOND Co-founder of Fixxa and Handy Heroes

Register for tickets NOW qandor.org/qtv-registration

®

Qandor.

Archite

ecture

08 | ARCHITECTURE

10 ways deve

get the most ou

elopers can ut of architects

ARCHITECTURE | 08 09

10 | ARCHITECTURE

Tina Patel is the co-founder of Formed Architects. In this articles, she explains the best way to work with your architect

2

1

Be transparent

Don’t forget your architect is there to help you maximise profit. Let them know what you need to achieve in terms of number of units and mix to achieve the profit levels that work for you. They should be asking you who your target market is and designing solutions that suit the purpose. Being cagey about your key aspirations in fear that they’ll charge you too much or not be creative will not help you achieve the most for the site; your architect should ask these questions and explore options around to see what may be possible.

Speak to them as early as possible

It may sound obvious but speak to an architect before you get too far with your pre-purchase appraisals. Too often, developers get too far down the line before they start talking to architects. This will allow you to appraise the site with some considered ideas and realistic aspirations – too often a developer will come to us as the architect and say ‘We’ve just purchased this, I need you to now get X number of units into the plot’. In those instances, we can be the bearer of bad news, outlining all sorts of restrictions as to why it may not work, putting overall GDV figures out of sync very early on. Consider those initial conversations part of the investment into getting the most of your deals..

3

Allow time for production of information

4

Ensure the parameters and deliverables are clearly defined

Irrespective of what stage your project is at; the production of a quality set of drawings and associated submissions take time and is likely to allow for a smoother process. Whether it is for the community consultation, feasibility package or the planning package, rushing your architect is unlikely to help; that said, you should collectively agree on a realistic deadline at each key moment of the project.

Understand what your architect is providing before you kick things off and make sure this is aligned with your expectations and needs for the project.

5

Don’t be swayed by the cheapest price

Can you afford for your scheme to be below standard and not maximise your profits because you sought to save some money on your architect’s fees? Cheapest doesn’t necessarily give you quality. Think about what kind of development you want to have and seek out an architect that aligns with that vision. What worked for someone else may not work for you.

6

Work as a team

Seems obvious but the end goal for everyone working on your project should be unified with yours. Projects can take a long time to come to fruition and having a clear vision and an honest and open relationship throughout the process means that collaboration should be a lot more stress free.

7

Ensure you have a full set of production information before starting on site

Far too often, due to the way in which a deal is structured, start on site is commenced before full detail drawings are in place.

Inevitably this is likely to lead to abortive work or increased costs. Discuss how long things will take to get a good set of technical drawings that allows you to start on site. Drawings can be programmed to be issued to follow the stages when required on site if you are not getting the scheme tendered; but if you want to tender wait for the full drawings, this would include a coordinated set from all consultants.

8

Don’t forget a good architect will add value and may save you money

Good design will make you money, whether by enticing people to want to buy or rent

ARCHITECTURE | 11

12 | ARCHITECTURE

your project quicker and therefore saving you money on borrowing costs or making more out of the space to get a greater number of units. Your architect should be offering creative design solutions based on your agreed vision; poor layouts are likely to equate to poor sales.

9

They should listen to you, but equally you should listen to them

An architect should be coming to the table with their professional honest judgement on matters; there is no point in having yes men or women on your team – listen to them and ask them to explain the implications of any aspects that are unclear or have an impact on what is possible..

10

Don’t skimp on the other consultants

Many projects are likely to need the input of multiple parties; often quite early on in the process – don’t try and bypass this. The information from these other consultants may inform the architect’s design proposals and could vary from Rights of Light surveyors through to arboriculturists.

Discuss with the architect early on who they think will need to be engaged and understand the costs involved as early as possible.

And the bonus one – have fun. Having a good team working on your project should reduce the overall stress on the project and make for a fun, enjoyable and at times challenging experience.

Ten ways in which

your mental health can be affected by architecture

by Gaby Winandy

T

he environment you are in, be it a living room, a workplace or a whole city, influences how you feel about yourself and the world. It’s been proven, for example, that certain colours, or geometric patterns, or variations of noise, among other things, can make you anxious, insecure, relaxed or optimistic.

Here are 10 ways in which architecture can affect your mental health, and why:

Geometry Patterns bring a sense of consistency and organisation. In other words, a lack of chaos.

Research argues that identifying patterns reassured our ancestors that it was possible to predict what came next, improving their chances of survival. Theoretically, geometric patterns today evoke the same physiological reaction. These patterns are often referred to in architecture as rhythm, because it causes the eye to flow from one focal point to the next.

There are four such categories of rhythm: • alternation (the repetition of a contrasting pair) • progression (either increasing or decreasing the size of the element in the pattern) • repetition (repeating a single element), and • transition (a line that the eye can follow from one point to the next) The buildings that follow either of those patterns are usually considered beautiful because their predictability evokes feelings of safety, security, well-being and survival. On a biological sense, oxytocins and endorphins (responsible for feelings of pleasure) are released, calming us down and allowing us to appreciate the environment.

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14 | ARCHITECTURE

Nine Square Pattern Still on the note of pleasing patterns, one of them requires special attention: the nine square pattern, which resembles the structure of the human face. It automatically catches our eyes, even if we don’t consciously understand why. Facial recognition has been paramount in the evolution of the human race – helping us identify the difference between other people (friends and foes), animals and inanimate objects. Buildings that follow the nine square pattern automatically arrest our attention because it triggers recognition in our brain. If the aesthetic is then pleasing, we feel safe and secure.

Aesthetics and facades Beauty is a subjective term, but recent research shows that abandoned establishments or houses can make us feel unsafe, while dilapidated façades were found to lead to anxiety and persistent low mood. Monochromatic colours, poorly placed windows, lack of details and repetitive styles were proven to produce sensory deprivation, which leads to lack of intellectual stimulation and creates an unwelcoming environment.

Nature Following the point above, certain buildings should automatically evoke negative feelings. But there’s a caveat here. The Barbican, for example, is a brutalist structure that follows the negative premises above – in short, it’s a boring building.

But despite being called London’s “ugliest building”, it actually brings an overall positive feeling in people. Why? Nature. The Barbican is full of greenery, lakes and balconies and features mini town squares that allow residents to socialise, work and relax. Access to green spaces such as parks and woods dissipates some of the stress of city living. Research has shown that being surrounded by nature helps with general mental wellbeing, reduced depression and stress, improved social and cognitive functioning, improved mood and reduced aggression. Biophilia theory, from Edward Wilson, states that humans have a biological need to be in contact with other species. This is part of the reason for why new buildings tend to have greenery as part of their design.

ARCHITECTURE | 15

16 | ARCHITECTURE

Light Light affects our mood, disposition and sleep patterns. Generally, spaces that are well lit reduce stress by increasing feelings of safety – although this can change a little bit depending on the context. If you live in a house where bright lights shine in your window, you may not be able to sleep or feel exposed and surveilled. The rules of thumb in what it comes to lighting are: rooms that are used in the morning (like bedrooms and kitchen) should be placed facing the east to stimulate the circadian rhythm with natural light; windows with high head heights provide more access to daylight and allow sky view (which can be particularly invigorating in dense neighbourhoods); allow for tenants to have a personal control over the amount of daylight (and artificial lighting) they receive inside the room they are in.

Sound Sound can be a bit tricky: noise can cause stress, anxiety and depression and affect sleep patterns, which further increases the risk of deterioration of mental health. At the same time, the right kind of sound – such as the ones produced by nature – help reduce stress and bring a feeling of safety and comfort. Buildings recently have started to be designed with that in mind, so they have soundproof rooms for things that demand attention, such as working or studying, or to keep noise from filtering out, such as when sports are played. Windows are placed strategically to allow people to control the noise that comes in, depending on their needs at the time. Building insulation, street trees and general noise barriers also are taken into account, as well as traffic restrictions.

Temperature Feeling too cold or too hot will bother us, generating stress and restlessness.

Furthermore, the air temperature is not the only way the body has of gauging thermal environments: radiant conditions (such as sunlight), air movement (natural ventilation) and the conduction of heat via surface materials (such as wood and stone) affects how we feel in a place.

Orientation Having a notion of where things are – and how you fit in the picture – can be one of the determining factors for us to feel rested or stressed. In other words, you need a sense of direction. According to research, “places with rotational symmetry, which look the same whichever direction you look at them from – Piccadilly Circus, for example – are a nightmare for orientation.” Buildings that are confusing on the inside and / or outside provide a wealth of insecurity and stress.

ARCHITECTURE | 17

15 | Architecture 18 ARCHITECTURE

Altitude How high a building is also affects our mood. Research has found that people in higher floors then to isolate themselves more – people don’t need to interact with each other so much, as they’re mostly self-sufficient and absorbed in their own lives. Which takes us to the last point.

Socialisation Humans need to interact with each other, that’s a well-known fact. But living in big cities does not help; it actually increases the feeling of isolation, since you are often surrounded by millions of people but hardly know any of them.

City dwellers are more prone to developing schizophrenia, depression, loneliness and chronic anxiety – and the main trigger for that seems to be the lack of social bonding.

To counteract that, developers and architects have been focusing lately in designing spaces that promote a sense of community, with communal areas and the possibility for meaningful human interaction. An example of that is walkable neighbourhoods, mixed land (that allows for shopfronts and nearby amenities) and fine-grain street fronts.

Brexit

20 | BREXIT

Brexit and its effects on Prime Central London real estate opportunities Henry Sherwood from The Buying Agents, talks about how Brexit has changed the prime central London real estate business

W

ith Brexit looming it is impossible to avoid the subject and the associated No Deal pessimism.

There has been much speculation on how it will affect the UK property market but most of this thought is purely opinion and not fact.

The fact is: no one really knows, and it is virtually impossible to tell what the real effects will be. Property and economic cycles are fairly straightforward to predict but political situations can be rather tricky.

So, what do property buyers do now? They could wait until there is more clarity and hope their desired market conditions return. As with most things in life though, “hope is not a plan” and this approach could see you “sitting it out” for some time. It could be months or even years before normality, whatever that is, returns.

Whether buying a home or for investment the ideal scenario is always buy low, sell high.

This sounds simple but the reality is more complex. Very few people outside the property industry ever actually predict the bottom of the market. They rely on the industry experts and market news to tell them when the market has bottomed out. Great in theory but the reality is that thousands of other potential buyers from all over the world also

have the same strategy and are waiting to pounce. I’ve seen a few downturns in the last 30 years and it always amazes me how quickly a market can recover when driven by pent up demand. The demand returns overnight and so do Seal Bids and Best & Finals, the most efficient way to increase market value in the shortest amount of time.

Everyone has their own view on what to do next. Some will sit it out while others can’t wait to take advantage of the situation.

Prices in Prime Central London at the time of writing appear to be bouncing at the bottom. There is still massive uncertainty, and in some cases, this is being factored into many asking prices for a quick sale. These artificially low prices and “the experts” covering themselves warn there may, or may not, be further falls of 5 – 10% if there is no deal, create the ideal scenario for negotiating really

hard and not feeling guilty about it. We have been surprised at the level of some offers being accepted; it is great for our clients and provides a healthy margin should prices slip a touch more. Our clients will still come out ahead.

A word of warning though: do not confuse asking price with market value. There is still so much overvalued property on the market. Negotiating an amazing “discount” means nothing if the asking price was over inflated to start with. In addition, beware of over paying for off-market property. We all know the genuine reasons for selling off-market but there is a definite trend of “vendor valuations” being swept under the “off-market rug” to avoid a digital footprint or the agent losing credibility of marketing over

valued stock. There has never been a more important time to seek objective advice or retain a good buying agent.

There is even more good news for some buyers. Not only has the market fallen by 20-25% since June 2014, the pound has also weakened against most currencies in the last 5 years. Against the USD it has fallen over 25% since July 2014 and decreased by 20% against the EUR since Nov 2015. To put this into context a £5M house in 2014 would have cost $8,000,000. Today the same house would cost £4,800,000.

All figures and statistics were correct at the time of publishing.

BREXIT | 21

22 | BREXIT

Aparthotels: A Brexit-Proof Property Development Strategy?

CEO of MELT Property, Evan Maindonald talks about property development strategy amidst Brexit chaos.

T

here’s no refuting the effect of Brexit on the UK. It has created turbulent waters for developers and investors alike.

Those who wish to ride the wave of uncertainty unscathed must move in the direction of certainty. At the moment the residential market in London and the South East is flat.

Prime Central London has seen a precipitous decline, losing 20-30% in the last few years, though there is one sector showing a lot of opportunity.

Development for aparthotels is a sector that - done right - can deliver deals which tick the box for everyone involved - the developer, the investor and the end user.

At MELT Property we are currently working on a 164-bed deal with Europe’s leading aparthotel operator, Staycity. Markets in Asia, Australia and the US have been onto this for some time, yet here in the UK, we’re just getting started.

So, just what is an aparthotel?

It’s a blend of a traditional hotel and, well - an apartment. The target market is largely the corporate crowd who travel for business.

Typically, the stay is for 3-5 nights - but it could be for a number of months if it’s an overseas

stint. Where hotel-room amenities fall short, an aparthotel - with all of the comforts of a home - allows for rental-style living. What’s neat is that servicing is almost entirely automated.

It’s a lean model that has followed the rise of the serviced apartment market that has been driven by portals such as AirBnb, Homeaway and Tripadvisor.

The returns are namely what makes this strategy hot. Fewer overheads means fewer costs. Aparthotels are often stripped of spaceconsuming facilities such as gyms and restaurants, so this allows for more rooms to be created and a competitive price-point for the guest.

The demand is strong, so uncertainty about sales is reduced. A strong market for tourism in London, for example, and an offer that doesn’t directly compete with

traditional hotels means consistent demand.

That’s not to say that regional locations can’t also take advantage of this strategy.

Where demand in the residential market is flat – that’s to say, sales volumes are low, but levels of tourism or business are strong – the Aparthotel model can thrive.

Operators like Staycity have developed a systematised set of processes and templates which provide a platform for growth. This includes a design guide which mandates Front of House/Back of House layout, specific room sizes for Studio (18 sq m) and 1 bed (25 sq m) rooms, an 80%/20% split of rooms between the two sizes, standard lease terms and operating procedures.

This standardisation enables their business to scale, delivering consistent levels of turnover and profitability growth. In turn, this facilitates the financial strength and stability that delivers the strong covenant that underpins a Staycity lease. This covenant strength delivers a competitive advantage by enabling them to lease sites at lower levels of rent that other aparthotel operators and compete with

established hotel operators.

While they may compete for sites, it’s not uncommon to see an aparthotel and traditional hotel located right beside one another – even in the same building. The point is that they address different markets and don’t see each other as competitors for guests. A couple of cases in point are Staycity’s developments in Paddington and Edinburgh which are co-located with Premier Inn and Travelodge respectively.

The importance of thinking ahead One key factor is planning. It is often possible to achieve a change of use from C3 (residential) or other use classes to C1 (Hotels and Guest Houses) on some sites. However, in locations like London, where demand for residential use is strong, this can often be strongly resisted by planning authorities. It’s therefore important to ensure that C1 use is supported by planning policy in the location of the site.

A lease to the right aparthotel operator can be entirely forward funded. Essentially an early sale to a pension fund or other large investor and then a contract for the developer

BREXIT | 23

24 | BREXIT

to deliver the project to completion on behalf of the buyer. Operators with weaker covenants than Staycity often look to compete by purchasing sites directly with backing from the same types of investment funder who forward fund development deals.

Funds are hungry for investments of this type. Forward funding or backing an operator directly are ways in which they can secure a pipeline of deals at an early stage. From a developer’s perspective, this delivers a level of certainty that simply is not available with residential deals. It’s a sustainable rinse-andrepeat model that is even more attractive to overseas investors cashing in on the current weakness of the pound.

Because of the limited historical penetration of aparthotels into the UK market, the market is growing quickly, which means there are many operators in the market seeking new sites.

I recently chaired a panel called ‘Evolution of the Hotels Sector’ at Brendan Quinn’s Central London Property Network event.

One of the panellists, Richard

Dawes, Director of Hotels at Savills, highlighted the fact that penetration of the aparthotel and serviced accommodation overseas is 15-18%. In the UK it’s at 7% and is forecast to rise to 9% over the next two years – a growth of 30%. That translates into opportunities for developers who can identify and deliver for operators.

The know-how, contacts and experience are of course essential. I’ve been running MELT Property, a property investment and development company, for close to two decades so I have built up the experience to leverage opportunities of this type. Whether you’re in or you’re out, aparthotels are on the rise and here to stay.

Construction & Development

26 | CONSTRUCTION & DEVELOPMENT

Cut through the BS… (A QS Guide) Qandor member and founder of Redshell Consulting, Michelle Lowe shares some insight into avoiding the BS from the start

C

onstruction can be risky business.

With so much at stake, it’s easy and quite usual for emotions to run high!

inevitable frustrations, finger pointing and dispute situations that can then arise. This is when the BS really starts.

There are many parties with a vested financial interest in any development and it is always wise to remember everyone has their own objectives, goals and financial expectations from the project. Not just the obvious funders, developers and clients, but right down to each trade contractor, supplier, consultant and main contractor involved in the build.

Now let’s be frank: any and all parts of the puzzle may succumb to the BS tactic when things get difficult. It’s easy to point the finger with a ‘he said she said’ and respond with the same. It never ends well. It’s confusing, time wasting and stressful and without question will lead to further delays, disruption and cost increases. If the project is under pressure, it’s the last thing you want to happen.

Construction projects bring big gains, and if not managed in a considered way, they can bring the risk of big losses too.

In my years of delivering construction projects I have found myself in many situations where the objectives of either party become a dominating force driven by cost constraints, programme and cost overruns and the

Ultimately the clearer, more accurate and more concise the project information is the less scope for BS any party has. BS grows in a feeding ground of uncertainty and confusion.

Don’t give it a chance to breed.

Here’s a short guide of how to avoid the BS from the start;

1

Contracts, Contracts, Contracts

These are your friend. Anyone who says they don’t like, use and respect contracts are inviting a whole host of BS into their lives.

With a contract, you know what you are buying, and the consultant, trade or supplier knows what they are selling. Simple. The important bit here is that they are fully comprehensive and clear. This part is sometimes not so simple.

Make sure you use the most current contract version available and the appropriate type.

A good consultant should advise you and lead the procurement to ensure it is as comprehensive as it can be. They can also advise if there are any risks inherent within the contract such as provisional sums or procurement gaps and how these can be managed.

2

Pay your bills and pay them on time

Cash-flow is king, and it is king for everyone.

If you have appointed parties to deliver a project, the payment terms are binding whether you have been paid yourself or not.

Paid when paid scenarios went out of fashion years ago.

Since JCT 2011 versions came into effect, the non-payment of valuations as presented became a tricky business; if certificate for payments are not issued in the correct timeframe, you are liable for it all, whether the contractor has over-claimed or not. Don’t get yourself into this hostage situation.

The penalties for late payments reach much further than simply interest charges. The

disruption to any project is tangible and accountable and if contractors or traders give notice to withdraw as a result of non-payment, you’ve entered into a whole different arena.

Pay attention to the timeframes and pay on time.

3

Construction Programmes

Don’t accept an unlikely or hopeful programme, from yourself or your contractors.

Keep it real and review it regularly. Understand them and have or produce regular updates.

Be clear on what is delayed (of course something will be) and who’s responsible at that time. No point trying to unpick it 6 months later where the original event can be masked with other occurrences.

4

Record Everything

Keep accurate and detailed records of everything. Site records, contractor reports, minutes of meetings.

Boring, I know. But these are critical.

Without these you don’t have much hope of cutting through or defending anything.

If any document is presented to you which is incorrect or inaccurate, then feel free to correct. Get that amendment made, make sure the last word on the document is the right word. At the end of the day, if a dispute arises, the written word is all you’ve got.

Changes and disputes will always arise on a construction project, with so many moving parts and separate entities involved. But with clear and straight delivery, they can be easily managed, and ideally mitigated when not masked in a cloud of confusion. Keep it clear and it’ll be smooth sailing.

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28 | CONSTRUCTION & DEVELOPMENT

Four Common Funding Pitfalls for SME Residential Developers CEO & co-founder of Hilltop Credit Partners, Paul Oberschneider talks about the common mistakes made by developers when securing funding for projects

F

or SME developers, securing funding has been needlessly frustrating, timeconsuming and expensive for too long.

I often speak to an exasperated developer who’s spent 6 months managing hundreds of emails, sitting through hours of meetings and has nothing to show for it.

The funding process doesn’t need to be like this. With robust government housebuilding targets and an alternative lending wave, SME developers should be able to move quickly.

Avoiding these 4 pitfalls will help you manage costs, seize opportunities and drive projects forward..

1

Not presenting a credible deal memo to funders

Many SME developers prepare a rough development appraisal spreadsheet and send it to the lender. Within 36 hours they get an indicative term sheet, excitement mounts… and then the questions start.

To put together the funding package and provide actual terms, the lender needs more detail, which means there’s endless back and forth as everyone pieces together the required information. Months can go by with

little tangible progress. And after all that, the deal can fall apart if the numbers don’t add up.

If you prepare a credible deal memo upfront, the whole process is more efficient. This means presenting the full economics for the various pieces of financing, underwriting the market, providing comparables, outlining your exit strategy and including third-party back-up information.

Not all SME developers have the time or toolkit to do this themselves, so it’s worth looking for funders who will partner with you to prepare the memo. The right partner will do the underwriting and put the analysis together before you go to the investment committee. This maximises your chances of getting a firm offer within weeks – and gives all parties confidence the project can be delivered successfully.

2

Not underwriting the professional team

With the collapse of Carillion, contractor due diligence has been in the spotlight – and the risks apply to the SME end of the market, too.

Too many developers overlook this key step in the funding process. Check the professional team has both the balance sheet and experience to complete the project.

Your lender will want evidence of this, and it can jeopardise the funding process (not to mention the entire project) if this underwriting isn’t in place.

3

Piecing together senior, mezzanine and equity funding separately

Securing 3 different sets of funding can seem like a cost-effective approach because you can theoretically drive down rates at each stage.

But developers often underestimate the meetings, negotiations and documentation involved, as well as the specialist knowledge required to navigate the nuances of senior, mezzanine and equity. It’s actually very difficult to come out ahead once you’ve factored in the legal and time costs associated with coordinating 3 separate funding packages.

On deals of £20 million or less, it’s generally more cost effective to work with one provider, where you have one agreement for a single credit facility that covers all 3 stages. And it’s much faster, too – it can easily take 6 to 8 months to complete your deal using 3 funders, whereas it can be done in 6 to 8 weeks if you use the right one-stop shop.

4

Focusing price

exclusively

time you’ll have to spend and the legal hoops you’ll have to jump through. All that comes with a cost that affects the project’s overall profitability.

Also consider your relationship with the lender and where their interest lies. If it’s a transactional relationship, you can find yourself under immense pressure down the line depending on how your project costs evolve and what your sales are like. If the lender’s returns are driven in part by profit share on the back end of the deal, you have a partner aligned to your exit strategy – and who will offer more support in line with market dynamics.

All these pitfalls can lead to overpaying You need a deep analysis of the market demand, comparables, affordability and rental data to negotiate with investment committees. You need to ensure your supply chain can deliver. And you need to factor in the time and legal costs of coordinating with funders. Your costs can easily escalate if you don’t – and that can have a major impact on profitability.

Avoiding these 4 pitfalls will help you secure the right funding package at the right price – and will give you the support you need to deliver successful projects.

on

There is a good option to insert a best Indicative term sheets can be like broadband advertising. There’s an attention-grabbing headline rate, but most people aren’t eligible for it because of their specific situation. With broadband, it’s about your location or the state of the cables. With residential lending, it’s about the process of securing funding and the way packages are structured.

Look beyond the headline rates. Consider the

CONSTRUCTION & DEVELOPMENT | 29

Cro

owdfunding

32 | CROWDFUNDING

The New Era of

Property CEO & co-founder of

CrowdProperty, Mike Bristow shares some insight into an industry set to be worth $900 billion in five years

O

ur last thought piece for Qandor, The Edge of The Crowd explained why peer-to-peer lending exists and is growing so rapidly (spoiler alert: because everyone wins. In this article we apply the principle to property, to make it real for us all.

There’s a shaving razor company, Harry’s, which claims it started because the founders couldn’t find a good quality razor for a decent price. The existing ones were expensive and really not that good for the price paid, they say.

We at CrowdProperty know how the razor guys feel, as our founders had the same experience within small and medium sized (SME) housing development – our

background. Six years ago, CrowdProperty’s founders, with 75 years of investing and developing experience between them, came together because they personally felt that the funding market for SME developers was broken; capital was not getting to those developers who need it most and could use it best – small and mid-sized developers building out smaller parcels of land. Remarkably, that hasn’t changed and traditional sources of lending have only retracted further from the SME developer market, resulting in even poorer service, if any at all. Alternative finance platforms have stepped in, the best of whom are relentlessly focusing on building the best lenders in the market to serve borrowers better than ever with efficient, purpose-built, customer-

Finance focused propositions (irrespective of the source of their capital).

which the UK could do with a bit more of at the moment.

Anyone working in property development hears the same complaints from their peers: not onaly about the difficulty in getting the capital, but the impossibility of speaking to anyone who makes the decision; slow, bureaucratic processes; far too much paperwork, most of it apparently pointless… the list goes on, unfortunately.

You can see banks’ point: they do pretty much the same amount of due-diligence work for a £1m loan as for a £50m one. When you have a back office as costly to maintain, dated systems/processes, and are as nimble as a brontosaurus, smaller loans become an unattractive proposition. Add to that the fact that banks are constrained by regulators as to the degree of risk they can carry on their loan books, with SME property development bearing down on balance sheet Risk Weighted Assets calculations and Capital Adequacy Ratios, and their reluctance is somewhat easier to understand – and harder to overcome.

This, in a situation where the UK suffers from a chronic shortage of housing supply.

According to Parliament, the number of new homes needed in this country is as much as 340,000 each year, with the total housing stock in 2017/18 increasing by around 222,000 homes. The share of large builders went up, which by definition means larger sites are getting built out, so smaller developers unlocking smaller parcels of land are not only key to maintaining current underwhelming levels, but crucial if we’re to get anywhere near 340,000. This potential cannot be unlocked without appropriate funding and we had seen and still see too little of that provision, however, from the banks. What’s more, this is not only restricting the number of homes that are built, but also spend in the economy on materials, labour and services,

Individuals looking to make productive use of their capital are little better served. Cash is at negative real rates, as are government bonds. UK corporate bonds are just about keeping up. The attractions of alternative yield-generating asset classes, such as property, are therefore obvious.

But here, returns can be thinly spread. When investing through conventional channels, though yields may be greater, there are many interested parties wanting to take their share of the pie: financial advisers, general funds,

CROWDFUNDING | 33

34 | CROWDFUNDING

specialist funds, banks, property lenders and brokers, may all stand between those lending the capital and the developer. They each need to cover (mostly inefficient) fixed cost bases and, quite reasonably, make a profit in our market economy. A broker alone can take 1% in fees from the developer and between 1 and 3% from the lender.

There was clearly a need for something like CrowdProperty: a marketplace offering a better deal to both borrowers and lenders.

That is what we have been doing for the past six years – fulfilling that need by building a platform that connects developers with lenders directly, efficiently (through tech) and effectively (through expertise), without all the costly middlemen in between.

However, it’s important to emphasise that this is not just a well-designed piece of technology. CrowdProperty is run for property developers and investors, by experts in property development and investment.

We built it because we saw the need for it, and we continually research the marketplace, making sure we address the evolving market needs and – importantly – evolving risks.

We’ve been there and done that many times through many cycles – we know the risks involved and how to mitigate them.

Because we live this market, we have built what is now the largest specialist property project peer-to-peer lending platform in the UK, with institutional backing proving the efficacy of the model. That doesn’t happen solely because of the concept, the business model nor the plentiful capital (all of which help) but because it’s solving the fundamental pains associated with funding that have constrained SME developers for decades, by those who have been developing property for decades. It’s not about ‘going to a peer-to-peer lender or a crowdfunder’ – it’s about going to a fundamentally better lender for your development project.

“

Cash is at negative real rates, as are government bonds.

UK corporate bonds are just about keeping up. The attractions of alternative yieldgenerating asset classes, such as property, are therefore obvious.

&

Economy Wealth

36 | ECONOMY & WEALTH

Why do so many companies miss out on Capital Allowances?

Director of Catax, Shaun Marsden talks about how Brexit has affected the mortgage industry

T

here is a lot of confusion around Capital Allowances, with many business executives still unaware of what qualifies and how to claim this potentially valuable tax relief. Despite it existing in the UK since 1946, many businesses are still unsure of whether they are eligible to make a claim.

company’s eligible assets and limited understanding of the system.

Capital Allowances tax relief offsets the hidden expenditure in your commercial property against your tax bill. Any UK taxpayer who owns commercial property, personally or through a limited company, may be eligible to claim Capital Allowances tax relief, which was created by HMRC to incentivise greater investment in

An additional reason that businesses hold back on claiming is the perception that claiming money back from HMRC will result in an enquiry. The government introduced this particular form of tax relief to encourage businesses to invest in property and it is something that they encourage to be claimed. Making a claim

commercial property.

is not an excuse for HMRC to look into your accounts, and should not be seen as a risk.

It usually applies to spending on permanent fixtures within the building such as air conditioning, electrics, heating and lighting but in some cases can even extend to windows or project management costs.

These costs can be deducted from your profit, therefore reducing your tax bill.

This sounds straightforward enough.

However, the eligibility and value of the claim depends on multiple criteria and this is where things get complicated. The tax law on what does and does not qualify is complex and constantly being tweaked and updated.

Research carried out by Catax last year found that business executives underestimated the average value of a Capital Allowances claim by nearly £20,000. The average fees that we see are in excess of £49,000!

Capital Allowances can either be claimed through the Annual Investment Allowance (AIA) or through writing down allowances.

The AIA allows you to deduct the full value of plant and machinery, up to £200,000 per year, however this can only be claimed in the year you bought the equipment.

Writing down allowances is when you deduct a percentage of the value of an item from your profits each year, and the amount deducted depends on the item.

With different types of allowance relating to a wide range of items and accounting periods, it is not surprising many business executives get confused. It is the job of accountants to guide them through this tricky process but even accountants may not have much experience of such tax claims.

Due to the complications and misunderstandings around Capital Allowances tax relief, we always recommend that businesses seek assistance from specialist tax consultants who will be best placed to assess the property’s cost and place values on the qualifying plant and machinery within, from air conditioning to plumbing.

The most common issue is accountants vastly under claiming for businesses due to a lack of time to properly assess the

If you have any queries relating to Capital Allowances, contact co-founder Shaun Marsden on 07817 508 904

ECONOMY & WEALTH | 37

%

38 | ECONOMY & WEALTH

Negative Rates Why do they happen, what do they mean, and what can we do about it?

CEO of Ridgeway Investment

Management, James Maltin explains how the pressure of quantative

easing has resulted in a ‘perverse pantomime of economic affairs’

A

core principle of financial theory is the time value of money - the idea that there is greater benefit to receiving money now than an identical sum in the future.

Those of us running businesses understand well the critical nature of the timing of cash flow, but anyone can see that providing money can earn interest and money held today is more valuable than money due later.

So, what happens when rather than paying to borrow money today, borrowers can freely borrow and hand back less in the future? This question may seem strange and it is certainly unusual, but as of this writing, fifteen trillion dollars of debt trades with a negative yield; that’s about 30% of the global market. Creditors are paying to receive back less than they lend or, putting it another way, the issuers of debt are being paid to borrow.

Five years ago, this was unheard of; this year alone, the amount of debt trading with a negative yield has doubled.

Why has this happened?

There are several reasons why this bizarre situation has arisen: pension funds must own bonds to match their liabilities; international

Barclays Global Aggregate Negative Yielding Debt 2009-2019 (USD)

investors care less about yield and more about currency, and therefore may invest even at negative rates in the expectation the currency in which they invest will appreciate relative to their own; and domestic investors may expect deflation – falling prices – in the context of which the value of their bonds will increase, irrespective of the yield at the time of purchase.

But the most important players in this perverse pantomime of economic affairs are the world’s central banks, whose policies of Quantitative Easing (QE) have distorted

asset prices worldwide. QE is unconventional monetary activity whereby a central bank creates money with which to buy government and other bonds to lower interest rates and increase the money supply. The scale with which the monetary base in the United States has been increased via this method is immense, as illustrated below: Creditors investing to achieve back less than their initial capital and depositors paying to leave money on deposit – inconceivable prior to 2008 - are stark illustrations of this peculiar activity but by no means its only symptom.

The world’s benchmark equity index is

US Monetary Base 1968-2019 (USD millions)

ECONOMY & WEALTH | 39

40 | ECONOMY & WEALTH trading at an all-time high, irrespective of the precarious economic backdrop, and gold bullion has awoken from its slumber.

What does all this mean?

This means several things: people are worried

about the future of the world economy and happily will accept a negative return, believing return of capital to be more decisive than return on capital; some see no value in the bond markets whatsoever and would far rather put their money into shares, where at

Morgan Stanley Capital International Developed World Equity Index 1968-2019

United States Dollar per Troy Ounce of Gold 2014-2019

least they can receive an income (the FTSE 100 yields around 5%) and, if history is a guide, healthy capital gains on top.

Others are rapidly losing confidence in fiat currency altogether and would much rather own a tangible medium of exchange such as a gold bar, which yields nothing but will continue to exist and be worth something in 50 years, which is more than one can say for

cash on deposit.

What should we do about it?

What we should do about all of this rather depends on our respective situations. Great pressures are at work to ensure asset prices do not provide the signals they ordinarily would under more normal conditions. Interest rates at the Bank of England were cut sharply in the aftermath of the bankruptcy of Lehman

Brothers and the ensuing chaos to the lowest level since the Bank was founded in 1694.

The persistence of these emergency rates ten years on from that period of crisis is extraordinary; and the United Kingdom is far from being alone, with the Federal Reserve having recently cut rates twice in as many months and the European Central Bank having announced it is to embark on yet more QE, beginning this November. This is unprecedented.

If the global economy may be likened to a person, she ran the Boston marathon in 2007, went into a coma in 2008, and remains on life support in 2019. In short, the situation is precarious. To understand why central bankers act this way, look at Japan. The

resolution of the debt problems there in the 1990s was painfully slow and monetary policy was not sufficiently easy to push nominal growth above nominal interest rates for more than twenty years. The Japanese economy fell into a deflationary spiral and it was not until 2013 that it eventually emerged; meanwhile the Japanese stock market today trades more than 40% below its peak of December 1989.

The Danish physicist Niels Bohr said: “it is difficult to predict, especially the future,” to which J K Galbraith added, “the only function of economic forecasting is to make astrology look respectable,” so forgive me for not making any forecasts here (you should thank me). Let us simply observe that the powers that be are determined to do whatever is necessary to avoid a Japanese-style deflation.

Nikkei-225 Stock Average Index of the Largest Companies in Japan 1969-2019

The consequence is asset prices rising as monetary debasement stimulates inflation.

We have never seen monetary inflation on the scale it is being practised today, so it is impossible to fathom the extent to which asset prices will be affected over the long run; gold’s recent move may prove modest.

Given this unconventional environment, one activity that does make sense, we will all be pleased to hear, is to continue with our activities in property.

The property market, particularly the London property market, offers yields above cash and bonds,

preservation of capital in real terms (i.e. after allowing for inflation), and, following the recent fall in sterling, is of great interest to international investors.

For funds not required in your day-to-day business activities, the money markets offer a short-term solution preferable to the banks (US Treasury Bills yield 1.8%), while far better value can be had by investing into businesses where share prices discount a future so bleak, they offer a substantial margin of safety.

Many companies around the world fit that description, particularly some UK midcaps,

ECONOMY & WEALTH | 41

42 | ECONOMY & WEALTH

tarred with a Brexit brush that bears barely any relevance to their operations.

Diversifying that portfolio with a sprinkling of gold bullion may well reap handsome rewards, given time. Meanwhile, those money market reserves will be very useful during the next bear market, if ever it is permitted.

The stock market is a device for transferring money from the impatient to the patient and vast sums have been lost reaching for yield.

Now is the time for patience.

63

Finance

44 | FINANCE

The best mortgage rates

available today Director of

OnPoint Mortgages, Lee Langley talks

about how Brexit has affected the mortgage industry

O

ver the last few years Brexit, stamp

innovation and flexibility in criteria amongst

duty

providers, keen to hit lending targets and

increases

properties

and

for

investment

second

homes,

section 24 and the introduction of more

retain market share. A few useful illustrations have been outlined below:

stringent rental calculations for buy-tolet (BTL)

by the Prudential Regulation

Authority (PRA,) have all contributed towards

Multi-Units:

stagnating house prices and a reduction in the volume of transactions in the housing

With the BTL market having been especially

market.

market

impacted by the aforementioned changes,

more

lenders are increasingly broadening their

important than ever for lenders to offer a

offering. This has seen providers who may

unique proposition. For example, we have

have lent on houses in multiple occupation

already seen supermarket giants Sainsbury’s

(HMO’s) also include multi-units within their

and Tesco pull out of the mortgage sector

range at the same price point. This is great

this year, having struggled to gain a suitable

news for those developers looking to retain a

foothold. This means we are seeing greater

block of flats to let out. For example, Paragon

Against

conditions

and

these

tougher

uncertainty,

it

is

have a 2.95% 2-year fixed rate at 75% LTV; that would apply to a 4 bed HMO as well as 20 individual units under one title.

Refinancing within 6 months: Foundation Home Loans have, as of the 25th of September 2019, launched their early

Serviced accommodation: Without a suitable track record, often two years’ serviced accommodations experience, it has been difficult for investors to access appropriate funding for this type of let.

Foundation Home Loans launched a short term let product last year, however, that only requires you to be an existing BTL landlord to qualify. 2-year fixed rates at 75% LTV start at 3.49%.

BTL Rental calculations: If you have struggled to release or raise the amount you need against a BTL property in the last few years, it could be worth reviewing this again, as there are various methods available which could increase the loan available to you. They are particularly useful for lower yielding properties in London and the South-East. Options include top slicing which uses your personal income or more flexible calculations for limited companies or base rate taxpayers. The most effective solution is often to fix in for 5 years as the rent can then be stress tested at the payrate.

As an example, Precise currently have a product at 75% LTV, which will be stress

remortgage product. This means they have joined Kent Reliance in allowing an investor to purchase, refurbish and then refinance a property at the new open market value within a 6-month period. This cuts down the time spent on the more expensive bridging finance while allowing you to, figuresb permitting, pull money back out of the deal. Unlike Kent Reliance, this product does not yet allow for HMO’s, multi-units or cash purchases. 2-year fixed rates start at 3.4% for a 75% LTV product.

The above focuses primarily on BTL however it is a similar story in the residential sector.

Whether it is Santander increasing their maximum income multiple to 5.5, near prime lenders like Precise, Aldermore or Kensington also offering help to buy loans in addition to the high street, improved efforts to assist the self employed or contractors or the bespoke underwriting offered by lenders like Investec or Oak North for high net worth applicants, lenders are looking to carve out their own niche as opposed to competing purely through price. In this ever-changing market it is important to keep updated, as is the availability of these products and funding may just impact your future investment strategy.

tested at the 3.19% 5-year fixed payrate and they only require 125% coverage for limited companies. On a £1000 monthly rent this would allow you to borrow £150,470 more than the PRA’s recommended 5.5% stress test rate and 145% coverage.

FINANCE | 45

46 | FINANCE

What is the difference between a SIPP and a SSAS? Qandor member and director of Burlington Wealth Management, George Ttouli shares some insight into the differences between SIPP and SSAS

I

n my dealings with property professionals

for an individual. The individual is the legal

over the years I have often heard talk of

owner of their pension pot and can make

buying

their own investment decisions.

commercial

property

through

In both

a SIPP (self-invested personal pension) or

cases directors and individuals can decide

a SSAS (small self-administered scheme).

how to invest the pension fund. There is a

Everyone seems to know this is something

list of approved investments provided by the

to do with using pension money but not

pension regulator and this of course includes

everyone understands the intricate details.

commercial

property.

Please

note

the

commercial property has to be exclusively So here it goes: essentially, they are both

a commercial freehold and there must be

types of pension and the underlying tax rules

no residential aspect to it. In the case of a

are the same for both, but the legislation is

residential flat above a shop the legal titles

applied slightly differently.

would have to be separated and only the commercial aspect could be owned by the

It is important to understand that a SSAS

pension fund.

is a small occupational pension scheme set up by the directors of a business that

So if the SSAS is an occupational scheme, it is

wants more control over the investment

therefore owned by the sponsoring employer.

decisions in the pension scheme. A SSAS

The members are usually the employees or

has members who have pension benefits

directors of the company. There is no limit

building up within the SSAS and is controlled

on the number of members but historically

by Trustees, usually the Directors. A SIPP on

the schemes are designed for small owner-

the other hand is a personal pension scheme

managed

businesses

so

as

the

name

suggests the members tend to be relatively

Loans made by a SSAS to the sponsoring

small. Each member has a proportion of the

employer must be charged a commercial

funds in the SSAS based on their contribution

rate of at least 1% above the Bank of England

and this could include shares in the value

base rate and a repayment strategy must be

of commercial property, money held in

put in place to repay the capital and interest

investments and of course the pension bank

within five years.

account.

We have in the past helped clients set up either So a SIPP is just a personal pension owned

a SIPP or a SSAS, whichever is appropriate for

by an individual and who would normally

them for the express purpose of purchasing

instruct a specialist SIPP Trustee to oversee

a commercial property owned by the client

the running of the scheme. These trustees

directly as an individual or through their

will have charges and a typical minimum

own company. This is an indirect way of

fund size is £100,000 to make the SIPP viable.

accessing funds from an individual‘s pension for personal use. Of course the property sold

In both cases contributions can continue to

to the pension is now owned by the pension

be made by employer and employee and also

and all income derived from that property

both pensions can receive transfers in from

is owned by the pension for the member’s

other pension schemes.

long-term benefit.

There are some further key differences which

In both cases pensions offer excellent tax

I would like to highlight below. A SSAS can

efficiencies. Firstly, any contributions made

lend money back to the sponsoring employer.

will receive tax relief. Secondly, there is no

Whereas a SIPP cannot lend any money back

income tax charge on investments held in

to the member or the individual. This is strictly

pensions. Thirdly, there is no capital gains tax

prohibited and is often confused with the fact

when investments are sold within a pension.

that the SIPP can borrow to make a potential

Fourthly, there is an option to take a tax-free

investment. The SIPP can borrow up to 50%

lump sum at retirement, usually at 25%.

of its fund value but of course the borrowing

Access to funds is not allowed until you have

stays within the SIPP and is used just to

reached the age of 55 and I believe this will

facilitate an investment like a commercial

change as the state pension age changes in

property. This is very different to the SSAS

the not too distant future. After the first 25%

lending money back to the sponsoring

that is available any other drawings are taxed

employer who can use that money for its own

at an individual’s highest marginal rate of

business purposes.

income tax.

A

SSAS can also place funds into the

As you can see, clearly this is a complicated

sponsoring employer by investing up to 5%

area and I’m bound to say that a specialist

of its fund value in the purchase of shares in

financial advice should be sought before any

the sponsoring company. This is simply not

decisions are made. Obviously, I’m happy to

possible within a SIPP, and although a SIPP in

discuss any scenario with any member in the

theory can invest all of its fund in the shares of

strictest confidence.

any one company, there are strict rules about investing in companies owned or controlled by connected parties.

FINANCE | 47

Interior

r Design

Scand Style 50 | INTERIOR DESIGN

dinavian How UK developers can take advantage of Nordic design trends to increase property values.

By Linda Rosen

34

INTERIOR DESIGN | 51

52 | INTERIOR DESIGN

Linda Rosen is the founder of EDGE Design Studio, based in Shoreditch, London

S

candinavian design, summarised in three words, would be best described as: minimalist, functional, and simple.

This unique style of Nordic or Scandinavian interior design was developed in response to the harsh Scandinavian climate.

The result? Sustainable Scandinavian homes are built with resilient materials, complemented by interiors that provide a calm environment in which to unwind.

Rightly, Scandinavian culture has never revolved around a throw-away culture, unlike many other Western European countries. Instead, the Nordic states tend to concentrate much more on designs that embody both timelessness and functionality.

Crafting interiors with the “Soft Scandi” style that has now become popular with the UK’s middle and emerging classes, Scandinavian design incorporates numerous handmade products, sustainable materials, minimalist furnishings and decorative items around the home and workplace – all of which adds to the feeling of calm and contentment that comes with the typical Scandinavian style.

With a blend of plants, natural products, and sustainable furniture, the Nordic design prioritizes the well-being of its tenants and inhabitants over the profits of its development, construction, and design

firms. In turn, this creates a residential and commercial market that is based more on ethics and quality than cost and convenience.

So how do we do it?

1

Sustainability and tech

As the Information Age continues to shape the minds of the marketplace, buyers and renters are becoming exponentially more aware of the impact of their spending.

There is more exposure to the truths of climate change, our carbon footprint, and each enormous leap in our technological abilities. For this reason, the new tenants and residents are more complex and demanding creatures.

Far from looking purely at cost, aesthetic, and location, the new generation of buyers and renters want to know that their new environment will remain relevant with the changing times. They want to be assured that the spaces they are choosing to work and live in will incorporate Internet of Things technology, Smart Home features and, all the while, have as low an environmental impact as possible.

This is why adopting the standards of Scandinavian insulation, wooden flooring, timber frames, and numerous other

44

factors to increase your energy efficiency is an essential part of staying relevant in a fast and ever-shifting property market.

In Denmark, there is a term that cannot be translated into English, “Hygge”. It means: “a quality of coziness and comfortable conviviality that engenders a feeling of contentment or well-being”. And, much more than just a word, Hygge is considered a defining feature of the Danish culture; something that much of Scandinavian style echoes.

2

Create a light and bright space

Scandinavian countries are located at high latitudes meaning long, dark winters. And that’s why our approach, as a Scandinavian design firm, is to paint interiors in white or bright colours. Of course, not all Scandinavian interior spaces are entirely white. In fact, when creating enough light in the home, it is not unusual to see a bold, dark, or bright feature

wall that gives the interior an injection of personality and character. racter.

Surprisingly, a brighter space with more natural light can be achieved by the simple decision lig to replace brick or stone features with glass fixtures, and even exterior walls with floor-toceiling windows.

By making lightness and brightness the central objective of our interiors, we are able to ensure that as much light as possible gets reflected around the spaces we create. In turn, that reduces the need for artificial lighting, and therefore the need to overuse energy.

3

Cut back on carpeting

If there’s one thing that’s never been a la mode in Scandinavian style, it’s wall-to-wall carpeting. And that’s for a good reason!

Carpets are a great place for bacteria and allergens to lurk.

INTERIOR DESIGN | 53

54 | INTERIOR DESIGN

“

The average property in London is estimated to take three to six months to sell in the current environment.

Typified by the Scandinavian way, at EDGE Design Studio, we prefer to install wooden floors that are far easier to clean. Still craving something soft underfoot? You’ll find dot rugs in plenty of Scandinavian homes. These are proven to be easier to manage, clean and replace.

4

Focus on light wood

Using wood in permanent structures is a great way to trap carbon emissions, so this is one of the key reasons that Scandinavian homes are closely associated with sustainability.

Wood’s burgeoning popularity may be due to its newly found reputation for a “high-end finish” in comparison to alternative flooring options. Choosing lighter wood creates a brighter ambience, giving the impression of more space. Plus, from a purely functional perspective, wood is also a natural insulator – maintaining a comfortable temperature without a spike in the heating bill.

5

Enough storage space

The key to good Scandinavian design is attaining that elusive blend of practicality and craftsmanship. That means functional pieces of furniture should be used to their full potential; combining decorative items with additional storage space wherever possible.

furniture itself is also more accommodating to storing excess items that may otherwise be scattered around the shelves and window ledges of a home.

6

Make use of cozy textiles and greenery

As Scandinavian designers, another important practice that we commonly employ is to keep things simple when it comes to dressing spaces with blankets and pillows. When we do use fabrics, we often use heavily textured materials to offset colder design elements.

We also love to accent spaces using plants and greenery. Natural features have been shown to improve well-being and can help to bring out the coordinated colour palette of a room.

7

Implementing the best Scandinavian design lessons

The principles of Scandinavian design given here can be used to enhance virtually any commercial or residential space. This style’s continued popularity means that, if used correctly, these lessons are a great way to increase the financial value, and user comfort, of any property.

You will note that a typical Scandinavian home, whether newly on the market or inhabited by long-term occupants, will very rarely be cluttered with items. While this may be due to the culture of Scandinavia being more minimalist, the

INTERIOR DESIGN | 55

56 | INTERIOR DESIGN

SYMBIOT RELATIO The Interior Designer and the Property Developer.

By Helen Touli

WHY With access to global images, new products and ideas on social media and the shifting trends in home lifestyle, the consumer has become savvier, more demanding and has a heightened level of expectation of style, finishes, lighting and layouts in the design of their new home.

To this end, the involvement of a qualified interior designer has become progressively more important in residential and commercial developments, especially when working alongside property developers, no matter how modest or luxurious the property.

The development needs to showcase new and exciting interiors, creating an aspirational lifestyle that captures buyers’ hearts, evoking an emotional attachment and driving sales.

TIC ONSHIPS WHEN Stage 1: Interior designer with architect and property developer At the outset during planning stage, optimising space for maximum returns

Stage 2: Interior designer with property developer & project manager Post-planning discussions on costeffective cohesive and unique design schemes, creating a luxury brand for early marketing

Stage 3: Interior designer with project manager Ensuring design schemes are followed through correctly, procurements are accurate and on time, minimising costly delays

Stage 4: Interior designer with developer Staging show home for sales INTERIOR DESIGN | 57

58 | INTERIOR DESIGN

HOW By thinking outside the box, interior designers look at things from both a practical point of view for the buyer and in a cost-effective way for the developer, to increase saleability, taking budgets and GDV into consideration.

Interior Designers will: •

•

•

•

Determine who exactly the target market is – FTB, savvy millennials, city professionals, local professionals, creatives, retirees etc. according to the location.

Re-evaluate plans prior to work commencing to ensure layouts are maximised with profitability and buildability in mind, incorporating design elements Recommend unique interior and lighting designs with exciting finishes suitable for the target market, buyer’s vision and value of the property whilst allocating appropriate funds to reach the desired effect Consider lifestyles and new trends, giving projects the edge in the local market, making your property stand out from the competition.

By knowing exactly what needs to be accommodated for the agreed interior design, the contractor can plan for detailed construction and lead times, avoiding expensive delays and rebuild costs, the latter inevitable when employing an interior designer as an after-thought

COST Interior designers usually work on a fixed price or project percentage decided at the outset or occasionally on a consultation basis, to ensure the build is spot on for the market.. A combination of these options may also be possible. The cost of an interior designer is usually offset by the increased value they bring to the development.

RESULT Staging a show home is a highly essential aspect of any new home project development.

Crucially, it helps buyers visualise the space and aspire to the new lifestyle that is being portrayed with new trends and modern technology featuring the latest gadgets.

Home staging is the favoured tool to sell new and refurbished properties faster and, fundamentally for the developer, to release funds.

Ultimately, the aim is for buyers to move straight into a brand-new property that works beautifully and is the most fabulous and ideal home for them to be enjoyed straight away.

INTERIOR DESIGN | 59

Lan

ndlord

62 | LANDLORD

THE Adva hiring a CEO of Happy Tenant Company, Adam Joseph explains the importance and advantages of working with a specialised property management company

P

eople often question why employ a

legislation and regulations in place to protect

property management company to

both landlords and tenants. The industry is

look after your property when it is easy

under a huge magnifying glass and is a hot

enough to manage it yourself. The service

topic of scrutiny the government is focusing

is seen as primarily property maintenance

on. Whilst most of the information is easy

and the collection of rent, which is definitely

enough to find online if you know what you

an important part of the package, but is

are looking for, there are countless nuances

really just the starting point of property

not overly publicised that can easily slip

management.

through the net.

Traditionally property management has

Part of what a managing agent’s service is,

been an add-on service to estate agency

is to provide this information and ensure

lettings departments. It is often treated as

the properties managed adhere to all

the poor relation of lettings and is something

guidelines and legislation required by law.

estate agents provide as they have to, to keep

It fully supports the government’s ambition

their client happy and on board. There are

to regulate the industry, reducing the

very few specialist property management

amount of homes not fit for habitation and

companies that deal with this alone, and

questionable codes of conduct used in the

we feel this should be seen as an essential

marketplace until very recently.

professional service to take the pain away from landlords, ensuring they comply with

A

good

property

manager

will

make

all their responsibilities, rather than just a

the client feel safe and secure in the

fee generator to ensure repeat business.

knowledge their property is being looked after efficiently and effectively. A reputable

The lettings industry is currently going

company should ensure the property’s

through a massive overhaul with new

value and yield is maximised, alongside all

antages of

Property Management Company the other services provided. Landlords are

they will have one primary contact that

often time poor, and the service is there

is unlikely to change. Whilst there are no

to make their lives easier and provide a

guarantees this will be the case, what this

professional, knowledgeable approach to

does suggest is that the property won’t

the management of their investment,

be passed from person to person, and

whilst taking on the accountability and

therefore be just a number in the system.

risk factors that landlords face. Reporting

For the relationship to be most successful,

should be fully available and transparent

the property manager really needs to get

to allay any concerns landlords may have

to know the landlord, understanding their

and our view is there should be no mark

needs,

ups on third party services, although few

and ultimately become one of their most

in the industry share this as it impacts their

trusted advisors

requirements

and

expectations

.

top line.

The

relationship

with

the

individual

property manager is key: they are the eyes and ears of the property and should get to know the assets inside out. When choosing a managing agent, it’s essential to choose a company where landlords can be certain

LANDLORD | 63

64 | PROPERTY OF THE MONTH

Explore the

CALEY H

46

e incredible

HOUSE

PROPERTY OF THE MONTH |5665

66 | PROPERTY OF THE MONTH

D

eveloped by Qandor member Will Herrmann, from WestEleven, Caley House is an exclusive collection of residences in one of London’s greenest corners, Wimbledon. Set down the road from Wimbledon Village, merely 10 miles from the centre of London, this picturesque part of the country has a quintessentially English country feeling, with a relaxed and gentle pace of life.

PROPERTY OF THE MONTH | 67

68 | PROPERTY OF THE MONTH

C

aley House is surrounded by nature and gives off a very private vibe, which is perfect for families wanting to grow close to London without being swallowed by the buzz of the city.

Will Herrmann says: “As developers, this is the kind of property that surfaces once in a lifetime.

We’ve put our heart and soul into enhancing Caley House’s inherent charm and character. We’ve stayed true to the estate’s Edwardian heritage, while creating a collection of residences that epitomise the best of contemporary living.”

PROPERTY OF THE MONTH | 69

70 | PROPERTY OF THE MONTH

T

he early 20th century property is composed of the Coach House and five other apartments.

Of those, three have already been sold.

Public Relations

72 | PUBLIC RELATIONS

Kickstart your 2020 growth with robust PR planning Successful PR is all about setting objectives, and what better time to do that than at the beginning of the year? By Hanan Kandili

I

t is now you should be taking a step back to evaluate how this year has gone – what’s worked and what hasn’t – and to start thinking about how you can make next year even better.

Many business owners have a misconception about PR; that it’s a ‘nice to have’. But that’s not how Hanan Kandili, Director of The Double Unit, and her clients see it. For them, PR means business growth – and so it should.

Hanan says: “It can be frustrating when we speak to prospective clients that have had a bad experience with PR. There are too many agencies out there that work towards building a media profile for their clients without any understanding of the client’s market positioning or objectives.”

There. That’s the first step in planning your PR for next year. Ask yourself: What’s your market position? Who’s your audience? These are both questions The Double Unit ask when meeting prospective clients, and you should train yourself into a position so that you know how to reel them off. After all, that’s what makes good business.

Hanan added: “For our clients, PR and business growth go hand in hand. The way we work is underpinned by business development; we wouldn’t even consider having a conversation about PR that didn’t talk about how to make sure our actions will help our clients to win more work and grow. And our clients know that, which is why we have so many that we’ve worked with for years, that understand what the right approach to PR and business achieves.”

figure, an employee count or a dream project in mind, now’s the time to take note.

Don’t worry if you haven’t got it all figured out just yet – a good PR strategy is flexible. You do, however, need to make sure you have a vision for your business, which you absolutely will have; it might just take a bit of digging.

“

The question of where you see your business in five years’ time might be a cliché, but it’s crucial if you’re to successfully plan and implement a PR and business strategy.

Once you’ve familiarised yourself with the positioning of your business and how you envision its growth, you’re ready to call on a PR specialist like Hanan. They will tidy up your vision, conduct further research and mold an achievable strategy that will help you to get there.

Hanan Kandili is a member of Qandor. Her PR agency, The Double Unit, specialises in architecture and property, and works with several Qandor members.

Next, ask yourself: Where do you see your business going? The question of where you see your business in five years’ time might be a cliché, but it’s crucial if you’re to successfully plan and implement a PR and business strategy. So, whether you have a turnover

PUBLIC RELATIONS | 73

RELATIONSHIPS

Is this the most important word in property?

Building long lasting relationships with relevant people will hugely accelerate the growth of your business That’s why Qandor is the most connected, supportive and potent community in the industry With a robust membership of founders and principals of dynamic SME’s in property, our range of membership options suits businesses in all stages Benefits include: Accelerated quality, relevant networking and introductions Access to people with complementary skills and similar objectives A dedicated Relationship Manager to connect you with people who can help you Access to wide range of club events Proactively managed digital community for efficient communication and management Access to workshops – subject to availability / membership type Access to special offer products and services from affiliate members Public speaking opportunities - raise your profile

Forum Membership from £195pm. Find out more at qandor.org

Together, we can do great things

®

Qandor.

Retail

82 | RETAIL

HOW ONLINE HAS AFFEC

RETAIL PROPER Equity partner of CWM, Andrew McDonald talks about the current state of the retail property industry

Y

ou would have had to have emerged from a lengthy hibernation to not be aware of the travails on our high streets. Rather than a national pastime, shopping is now increasingly squeezed into a convenient moment over the internet as our busy lives get busier. Improvements in infrastructure and faith in the process has seen a boom in internet sales with approximately 20% of monies spent attributed to online purchases - an upward trajectory is almost inevitable.

High street and shopping centre property, once the darling of the Pension Funds, is now as toxic as debates in the House of Commons. Hitherto bullet-proof retail investments with long leases to rocksolid retailers offering rental growth have witnessed a 180 ‘flip’ to ever-shorter flexible leases, questionable covenants and rental depreciation. Homogenous 1990s high streets with the usual names look dull and uninteresting with expensive parking and evermore crowded roads further adding to the problem. Much better to pop onto Amazon while catching up on Netflix from the comfort of your sofa?

Outside of London, prime retail property yields hover at c.5% as opposed to a market peak of c.3.5%. Transaction levels have plummeted, and Institutions are overwhelmingly ‘sellers’. Historically, this would be the time for the canny purchaser to dip their bread. Scenes like this were familiar post the 2008 Credit Crunch when the brave swept up swathes of retail

E SHOPPING CTED THE

RTY INDUSTRY

83 | RETAIL

84 | RETAIL property which revalued positively once liquidity re-entered the market only a few years later. This time it feels different: ‘retail’ and the high streets are going through a structural change and, some argue, the entire process could take a generation to play out. Shops will slowly morph into showrooms and exciting in store ‘experiences’ will be sought. Expect the new craze of ‘competitive socialising’ (think: Canadian axe throwing; crazy golf; trampolining) to mature. Large vacant retail floors may become the cool streetfood courts and beer halls of the future.

In the shorter term, sentiment should slowly return after retailer Administrations have lessened and investors become more confident that their 300 branch national tenant isn’t going to push for a CVA to shift unprofitable stores. Until only the last few years, a retailer would’ve been wholly embarrassed to apply for a CVA, but with ever increasing numbers the stigma has abated and a number will see this as a bona-fide route to portfolio performance.

This may change as landlords increasingly collude to challenge the route, with the poorest of retailers already having hit the wall. Purchasing high street property is increasingly an exact science.

Previously, knowing your tenant was a solid household brand may have been comfort enough. Nowadays, it’s more about the actual performance from the individual shop in question. Ironically, some may consider more security in a well-run local retailer who rely on their shop to provide a livelihood to a canny multiple tenant with a CVA at their disposal. You sure as heck (yet!) can’t cut your hair, share tapas, take a HIIT class, buy a quick coffee or have a young tech-whizz show you the finer workings of your new Smartphone satisfactorily over the internet. So, look closely at the ‘use’ of the retailer, not just their financials.

Do they fulfil a local need and are they providing a satisfying experience? Historical towns and cities with pleasant architecture and a good level of leisure provision still make a good day out. On a larger scale: Winchester, Cambridge, Guildford, Bath, Oxford, etc. On a more micro level, there are chocolate-box towns which still pull in the visitors. The Stamfords and Ludlows of this world are just two examples which spring to mind.

So where are the opportunities for the developers? Well, high streets will almost certainly contract as retailers have the pick of vacant shops and turn their attention to prime and central locations at far lower rents. This will lead to greater vacancy in tertiary pitches and these locations will bear fruit.

Department stores with failing tenants are still worth looking at, despite canny developers having already picked over the carcasses of the likes of Debenhams and House of Fraser. Some of these freeholds changed hands at an early stage, but more will as landlords face their stresses and conclude they don’t have the appetite or skillset to turn their ‘big store’ into multiple residential units or perhaps a hotel. The private family office who once looked upon their Majestic Wine Warehouse investment as a steady income stream may now sweat at the prospect of owning an empty box, leaking vacant Business Rates.

Others will see these as prime edge of town sites and excitedly wonder how many flats they can get on there? Solus retail warehouses may be the new blocks of flats, and larger retail parks the housing or industrial estates of the future. The opportunities will be out there, it just requires evermore careful analysis and outof-the-box thinking. Happy shopping!

Short Term Accommodation

86 | SHORT-TERM ACCOMMODATION

How to make the most of the short-lets industry

I

Merilee Karr is the CEO and founder of short-term accommodation provider, Under The Doormat.

She is also the chair of the Short Term Accommodation Association

t’s not just private homeowners and landlords that are benefiting from the short-lets industry; there are all sorts of ways that property professionals can work with short lets to earn additional income, buy some time while the market turns, or create a more welcoming ‘lived in’ feel to a property that is for sale.

Discover all the ways that working with a short-lets company can help your property business.

1

interim accommodation. You’ll want them to receive a service delivered to the highest standards which is insured, reducing risk for the company and your clients.

Flexibility for vendors For agents, clients can earn an effortless income from short-letting until a sale goes through. If viewings occur during a guest stay, we will arrange an interim clean of the home to make sure it’s immaculately presented within a short time frame.

A new offering for your agency Short let benefits for Property Agents

You can easily work in partnership with a short-lets company without a conflict of interest. Usually, you’re after two different opportunities which can work in harmony, creating a partnership that benefits both companies.

Increase your cash flow The average property in London is estimated to take three to six months to sell in the current environment. For vendors who have already moved out and awaiting a sale, this can put immense pressure on their cash-flow. Shortletting can help to generate a flexible income until a sale goes through for the right price.

A new revenue stream for property agents Partnering with a short-lets company offers your agency a new revenue stream by referring customers who are in need of

You will be able to add short-lets, which are increasingly popular, to your agency’s offering, earning you commission with every home or guest request which today you would likely turn away.

2

Short let benefits for landlords and property portfolio owners

Fill void periods Deliver short-lets in between long-let tenancies to improve your overall year-round yield.

Reduce risk of tenants carrying out unauthorised short lets Allow short-letting in your tenancy agreements with the fully managed and insured service. This gives you peace of mind and a profit share from residents who travel

often and avoids the risk of them doing it behind your back in an uncontrolled way.

Maximise income by short letting at optimum times Short lets and long lets are complementary, as the peak season for short-lets is during the summer and Christmas period, which are traditionally quiet for the long-let market.

Timing the period to look for new tenants to maximise the year-round yield can make the difference of a few % uplift in yield.

3

Short lets for developers

Fill your developments Developers tell us that it is taking longer to sell properties off-plan. With a slower market and the possibility of units unsold on delivery, there is an increased risk of discounting prices and developments appearing empty. You can

“

The average property in London is estimated to take three to six months to sell in the current environment.

SHORT-TERM ACCOMMODATION |9487

88 | SHORT-TERM ACCOMMODATION

ensure the ‘brand new’ feeling is maintained for viewings by working with a company operating in the premium end of the market.

Absorption As developments go live, it is likely some of the apartments will be un-sold on the date of delivery. Short-lets create a new revenue stream while you wait for the sale at the right premium price.

Long-term income There is a good option to insert a best practice clause in new leasehold and tenancy agreements to allow short-lets when the owner is away. This allows you to generate an incremental source of income, which is then shared between the property management and the leaseholder or tenant.

So, short-lets are beneficial to many different areas in the industry. Working with a professional company means your property will attract high quality guests through world class channel partnerships. Guests are vetted, checked-in in person and photo inventories are conducted at the beginning and end of a stay. Housekeepers clean the home at the start and end of every stay. And all homes are covered by comprehensive contents, buildings insurance, as well as public liability to cover guests staying in the property.

Under The Doormat is a leader in setting standards in the sector. They are the first company to be accredited by the UK industry body, the Short-Term Accommodation Association (STAA) and Quality in Tourism and their CEO is the Chair of the organisation working closely with Government departments such as MCHLG, DCMS, HMRC and BEIS to ensure the responsible growth of the sector.

Whichever way you choose to take advantage in the rise of the short-let industry, one thing is for certain – it’s here to stay and there are some great opportunities to partner and benefit from short lets as a complement to your already successful property business.

Technology

90 | TECHNOLOGY

How technology is changing the way we design Alan Waxman, founder of Landmass, talks about the technologies that are changing our everyday lives

T

hanks to the growing expansion of technology, more and more homeowners are controlling their devices and appliances with a simple push of a button or a voice command. From home security systems to lighting, heating, and much more, home automation has become a reality. Very soon it will be an inherent part of every modern household.

Stewart Keir, Projects Director of Ideaworks – London Home Technology Specialists – says: “Perhaps the greatest impact recent technological advancements have had in the way we design homes is through lighting.

Reaching far beyond the aesthetic impact of lighting, we now have a much greater understanding of how human emotions and wellbeing are influenced by light.

Gadgets for Comfortable Living

The latest technologies enable us to deliver beautiful schemes that incorporate humancentric elements that track our circadian rhythm, helping to balance our natural energy levels throughout the day and reduce fatigue, without compromising on the aesthetic appeal of the lighting design.”

Many smart home devices are controlled via smartphone or tablet. With the growing popularity of smart assistants, people are also utilizing cloud-based integration platforms via smart speakers, such as Amazon’s Alexa. Not only are we seeing more product categories emerge but increasing competition has ensured that they come at a low-cost point of entry.

Naturally, more sophisticated, secure and robust systems are a significantly larger investment and not as widely embraced in the average home. Most low-cost smart home devices have a short shelf life and users can very quickly become caught in a cycle of perpetual hardware and software updates, a cause of constant frustration to users.

When compared to the benefits that come with tailored home technology solutions, our clients certainly find the investment worthwhile.

The Green Factor Aside from making our lives cushier and giving our homes a lifelike ability to interact with us, smart home technology is proving vital to reducing energy consumption.

Smart thermostats, which ensure optimal temperatures and preserve maximum energy, are one of the biggest selling points.

Along with temperature control, smart indoor and outdoor lighting present another set of systems that are making homes more energy efficient – and making homeowners increasingly more eager to embrace home automation.

Improving Home Security Even the least tech-savvy are willing to embrace the technology that will make their homes safer. For many clients, security is the primary motivator for embracing smart home technology.

Some of the most popular security and safety devices include fire and gas alarms, home locking systems, CCTV surveillance cameras, motion sensors, as well as breakage sensors and police connected security.

Renters and homebuyers have shown a definite readiness to embrace technology, not only in regard to home automation but also during the process of choosing a home.

Smart Homes and Interior Design Remotely controlled homes are no longer a futuristic dream or a luxury for the tech-minded. With so many alluring options vying for our attention, through the help of technology specialists like Ideaworks identifying the technologies that truly add value to the modern home is an integral part of every project. We have witnessed a growing number of people embracing easy to use connected gadgets to simplify,

Smart homes Estate Trends

and

Real

Smart home technology has already left a profound imprint on the real estate market, and it is already regarded as a fantastic selling point for privately rented properties. More and more people are embracing smart technology when renovating their homes – and it’s certainly playing a fundamental role in increasing the value of the properties.

TECHNOLOGY | 91

92 | TECHNOLOGY

entertain, access, monitor, save energy and improve their quality of life.

However, all the convenience that connected or integrated systems provide will be mired in frustration if not enough attention is paid to the wired and wireless IT network. This is the communications link between all devices. It is the platform upon which music, TV, lighting, shades, heating, cooling, security, access control and the interfaces for all of these systems is carried around the home. This increasingly puts the IT network engineers front and centre in how we design solutions for the home.

Alan Waxman, Founder of Landmass – Award-winning Interior Designers – says: “Fortunately, none of this is at

the expense of interior design. A smart home is a home like any other – furnished to reflect your identity and provide a sanctuary. And thanks to growing trends in technology, our sanctuaries can now make life easier when you return home.”

Qandor Events

94 | QANDOR EVENTS

What we’v

Qandor Christmas Party 2019 The Qandor Christmas party was a blast with a record number of members gathering to celebrate – some demonstrating outstanding “stamina”!

We’re not convinced our guests needed much to entertain them but everyone enjoyed the photo-wall, the surprise opera performance and our annual Whacky Awards ceremony.

Mike Davies and Andrew Simpson from SD Structures won Best Double

Act whilst Philip Howard took home the Doppelganger Award due to his uncanny similarity to George Clooney!

The rest is confidential ;) And we raised a ton of cash for our favourite charity, 88Bikes – thanks to everyone who contributed to the auction. Legends, all of you!

Dancing was a big part of the evening and Linda Rosen and Kyriacos Androu put on a show with some pretty amazing moves!

Thanks for coming everyone. It was a lot of fun!

ve been up to Qandor Mixer - January 2020 Our delightful Qandor Mixer, where members from all forums get together to network over drinks and canapes at beautiful locations in London, happened in the beginning of January at the Home Grown Club, in Marble Arch.

Everyone is cautiously optimistic which is good news for Qandor which has already seen growth since the election!

Here’s to more growth throughout 2020, with more great people coming on board!”

Turn the page to check out all the amazing event we’ll be hosting in the next few months.

Matt Siddell, Qandor’s CEO, said: “last night was a great start to the year.

Members and guests looking to join the club gathered at our first event.

QANDOR EVENTS | 95

96 | QANDOR EVENTS

Coming u Q.TV February

Courthouse Hotel, Shoreditch 11 February, from 6-9pm

Lights, camera, action! Our main event with exceptional speakers offers members and guests an evening of high-quality networking. In this one, Simon Woodroffe OBE, founder of YO! Company, will be sharing his knowledge, together wih Qandor member Matthew Hammond, founder of Fixxa and Handy Heroes.

Founding Forum Workshop The Office Group, King’s Cross 27th February - from 1pm - 6pm The Founding Forum is led by Qandor’s founder, Matthew Siddell and takes place every month

Q.10 Meeting The Office Group Stephen St 17 March, from 4-6pm Drinks afterwards For business owners and investors participating in deals with GDVs between £1m and £10m – most deals are under £5m in value

up...

Q.10 Plus Meeting Venue TBC 19 March, from 12-3pm For members of the club who are actively involved in deals with GDVs exceeding £10m

Founding Forum Workshop The Office Group, King’s Cross 26 March - from 1pm - 6pm The Founding Forum is led by Qandor’s founder, Matthew Siddell and takes place every month

Qandor Diners’ Club Venue TBC 23 March - from 7pm - late Our regular dinners hosted by the Qandor team are a way for members to interact informally while experiencing some great culinary destinations in London

Qandor Masterclass The Office Goroup, Stanley Building 28 March - from 1pm - 6pm Qandor Masterclasses are intensive, full-day content led sessions, where members share their expertise with those looking to fill knowledge gaps

QANDOR EVENTS | 97

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