Bids way over asking for trophy assets. Lending up 50%. Sovereign wealth targeting the UK more than any other global market. The opportunity to deal with historic under-investment in infrastructure is there to be seized.
At this week’s London Real Estate Forum there was much talk of under-supply, intense competition among bidders and London’s continuing dominance of the global real estate market.
There was chatter around infrastructure too. Much centred on recent successes, not least the ongoing work on Crossrail. But there was frustration on housing and a nervousness too about how serious we, as a nation, are about addressing airport capacity. (I gather too that the Airports Commission report is expected to be made public by the first week in July, with Gatwick cited as at least part of the solution).
But as we seek infrastructure solutions – key to unlocking housing and office delivery – money at least won’t be a problem.
On Monday, the latest sovereign wealth fund report from TheCityUK shone a light on the size of the potential prize.
The UK attracts more sovereign wealth that any other country – five times more investment relative to the size of its economy than the US. A staggering 16% of global SWF investment went into UK companies and infrastructure. The sum invested in UK real estate represented 44% of total SWF investment in global real estate in 2014 and 73% of SWF capital that flowed into Europe.
The obstacles to infrastructure delivery won’t be financial, they will be political. The three Ps will be paramount: flexibility in planning; a willingness to be pragmatic around returns (and their timings); and an enthusiasm for genuine partnerships. It really is in our gift.
Last week’s Urbanistas third birthday event was an inspirational affair by all accounts. The network of (mainly) young women involved in urban regeneration is securing friends and influence, and deservedly so. Its current campaign is, in Twitter-speak, #FliptheRatio, a commitment to increase “the visibility of women in business, politics and all aspects of public, civic and urban life”.
One of the ways in which it hopes to do this is by ensuring there are more women on panels, especially in male-dominated fields. Wisely, the Urbanistas head off the inevitable arguments that will follow.
“Why limit yourself to a puddle of female speakers when you can have a pool of experienced male speakers?” they ask. “Firstly, because these pools easily become stagnant. Unless spaces are opened up to new talent, we are all doomed to a lifetime of sitting in front of the same line-up of panellists who we see more often than our own friends and family. Getting more women on panels is not just about redressing the gender balance, but about bringing new talent to the table.
“It isn’t about shaming all-male panels, but championing more varied panels,” they argue, correctly.
EG is often guilty – unintentionally, unthinkingly – of assembling all-male panels, or “manels” to use the modern, disparaging vernacular.
We are committing to stopping doing so. To ensure we can, we need your help. Please get in touch if you want to join our debates. We want to hear about your expertise, your boldness and your willingness to think, speak and act differently. If you are young and female, so much the better, but we want to hear from new voices whatever your age and gender. E-mail my colleague Rebecca.Kent@estatesgazette.com and help us help #FlipTheRatio.
Speaking of ideas, EG’s new international competition to tap into the creativity of property’s innovators closes soon. The Next Big Thing, in association with Cluttons, RICS and Sectorlight Strategic Marketing, is looking for your ideas on how urban development can serve soaring populations. We’ve had scores of entries, but we want more. The winning entry – 22 June is your deadline – will feature in Estates Gazette and the winner will receive £1,000. Find out more and how to enter at www.thenextbigthingcompetition.com
