This article is an extract from Transmission Private’s monthly newsletter, The Lede, which tracks the world of reputation management for private clients. You can sign up for the newsletter on our website via the tab at the bottom of this article or by completing the form here.
It’s not just landed estates that have property on their minds, according to Knight Frank’s Wealth Report. In fact, despite the pandemic, 1 in 3 family offices and private investors are now looking to invest in commercial property. 🎓
Why are private investors looking at property? The pandemic has redefined the way we work. Offices may soon seem like distant relics of the past, but the same cannot be said for all types of property. Care homes, student accommodation, and healthcare developments all seem to have shrugged off the property crisis. Demand for these development assets will be high.
What challenges do private investors face? Competition is fierce and everyone wants a piece of the pie. Lucrative development schemes often get awarded to powerful, established corporate property investors who have decades of experience and a public track record of completing sophisticated property deals. Unnamed and invisible investors are little fish in a very big pond. The only way they will have a fighting chance is by playing to their strengths and standing out from the rest.
How does reputation help?
- Track record. Specialist developments, like care homes and student housing, have many moving parts. Stakeholders, councils, and business partners are only looking to work with investors who have a visible track record. If individual investors want a fighting chance, the crucial first step is giving visibility to profitable past investments — both in and out of property.
- Family values and strong ethics. Councils and local communities are more welcoming to investors who care deeply about a project’s mission and purpose. Family offices and private investors can use their family-driven values to give them an edge by demonstrating their principles are aligned. Making sure family branding is given careful and selected visibility.
- Ability to attract partners. A development scheme’s success is only as good as the partners you manage to secure. If it’s a student development, it might mean getting the buy-in of a prestigious university. If it’s a residential development, it might mean partnering with a leading architect. But in-demand third parties have their choice of developers, and reputation is key to attracting the right partners.
The takeaway... money is not everything. Private investors must deploy every asset in their reputational arsenal to stand as tall, if not taller, than the rest.