InsightCommentissues will undoubtedly affectdelivery and timing in all sectorsof real estate development. A
genuine worry is a downturnin new schemes as projects
are cancelled or postponed,
because owners are wary of
could be the final nail in the coffin. market sentiment or are unable
to secure builders, their builders
With many quoted property
are banned from working on
companies looking ’cheap’, I
non-essential projects or theirbelieve it will not be long before
own employees are unable tothe vultures start circling.
work because they have to selfI dare say, over the coming
isolate or fall sick.
weeks, we will see many PLCs
Tenants are going to startand major industry professionals
feeling the pinch pretty soon,
issuing warnings as to theirtoo. Many
performancetenants are
and revenues.
really going to
In recent
The property
struggle now
years, weindustry will prove
they are closed
have seen ahuge influx of
how robust, diverse for businessfor theinvestment
and competitive
foreseeable
into the UK
it can befuture.
from China,
We areKorea andalreadyMalaysia. They
getting feedback from ourmay well now focus on theirhotelier clients whose trade has
local markets for a while.
dwindled to nothing. The loss
The construction industry
of income is affecting tenants’is beginning to see its supply
ability to pay rents. This could
chain interrupted and to havelead to lending covenants being
concerns over labour. These

Economic outlook

JRaed Hanna

ust as we were moving awayfrom the turmoil of Brexit,
we find ourselves facing
a new hurdle: Covid-19. I say
hurdle and not wall because realestate is a resilient industry andit will overcome this.
It is a huge hurdle, though.
The usual rules of economics
seem to have disappeared
and we have been left in aplace of contemplation andbewilderment. We have seen
our marquee event Mipim
postponed and many otherinterruptions to business.
So how will this latest crisis
affect real estate? I think thequoted property companies
are going to face the biggest
challenges. With monumental
falls in the stock markets acrossthe world, REITs and PLCs alikeare seeing their share prices
plummet. For already struggling
players such as intu, coronavirus

breached. Despite the welcome
reduction in base rates, I think
we are going to have to seesome collaboration between
tenants, landlords and lenders
to work through this.
But property is a toughindustry used to dealing withhuge challenges. It may well bethat this unfortunate event will
be an opportunity for many towork in a market that has beencrowded and highly priced forthe past few years.
Uncertainty leads toopportunities and the chance towork in a marketplace that has
some distress, creating openings
and a slightly more liquidenvironment with willing vendors
and an abundance of cash looking
to invest. Every property cycle
will always have opportunists
looking to take advantage.
Ultimately, while the pain will be
prolonged it will be finite. We will
get through this and people will
look back on this time with somepride as once again the property
industry proves how robust,
diverse and competitive it can be.
Raed Hanna is managing
director of Mutual FinanceWe must retain heritage buildings
Regeneration gameRichard UptonB

rowsing through a junkshop one weekend, I found
an old shield with a mottoemblazoned across the bottom,
Respiciens Prospiciens: ’Looking
backwards, looking forwards’.
That shield once belonged to theTennyson family. Now it hangs on
the wall at U+I because it’s striking
and the motto encapsulates our18

27|03|20

approach to regeneration.
Some think regeneration should
start with a wrecking ball. Almostby definition, the places that
we focus on are neglected andunloved so the temptation is toknock them down and start again.
It’s tempting and easy but
invariably, it’s the wrong decision,
not only because retainingbuildings is more environmentally
sustainable, but because when
you tear down the old without asecond thought, people often feel
as if something has been lost.
Tired, old buildings may not lookthat great on the surface, but dust
them down and something special
can be found. Call it a sense ofplace, call it belonging, call it soul;
it matters and it provides a degreeof authenticity that the shiny, newstuff just can’t replicate.
That’s why we think it’s better toadopt a different mindset: one that
focuses on keeping what’s there.
There’s a fine balance between

the soul of the old and the lureof the new. There are often
competing interests too – andplanning requirements to consider.
But just because it’s difficult
doesn’t mean we shouldn’t try.
In fact, we have to try, because
stitching together old and new
creates better places. Families
who have lived there forgenerations know this is still theirplace. Newcomers feel as if there
is a history to their new home.
That’s what heritage is all about– not just the grand, well-fundedsites but the smaller, dirtier assetsthat can still generate interest andpropertyweek.com

We are all reshaping how we live
Home truths

Helen Gordon

If 2019 was the year of
uncertainty, 2020 is the year thatstarted upbeat but by the end of
the first quarter we were reeling fromsomething we had never heard of.
Witnessing the emergence ofcoronavirus from a distance indisbelief, I found it impossible toimagine facing the awful situationthat other countries were in. I,
like many, have never experienced
anything that has had such a deep
impact on so many people’s lives.
Without question, these are, andwill continue to be, challenging times,
and we must pull together to support
each other, but most importantly
our employees and customers.
With the prospect of long periodsof self-isolation now a reality, formany, their homes have never beensuch a safe haven. A protective
space, a workplace, a temporary
school, a social space and more.
For the first time, we are existinglargely within our own four walls.

Our homes are being repurposed
to enable us to fulfil our many roles
in life. We do this out of necessity
rather than choice, but in doing so,
we are likely reshaping the way welive our lives for the long term.
In recent weeks, space, design
and wifi provision in the home have
all taken on even greater levels ofimportance as we navigate throughthe blur between work and home life.
As landlords, we have a
responsibility to our customers that
goes beyond bricks and mortar. Our
aim is always the highest levels ofsafety and security, but with this,
we must do more and go further toensure that through our hygienestandards, building protocol andmanagement processes, we aredoing all we can to protect ouremployees, residents and partners.
The implications of coronavirus
have forced change to working
practices. Our staff are transitioning
to remote working and the realities

of managing properties from adistance. It isn’t easy nor perfect, but
we are finding that even when wethought there was no way of doingsome things, there is. Whether it’sa FaceTime viewing or virtual home
visit, we’re making it work.
As landlords, we are fortunate to
get a real window into our customers’
lives. It’s an important and deeply
personal relationship when you’re
providing someone’s home, and webuild those relationships because
we care. We want our customers
to have a great experience and a
happy home, and we want to knowthat they’re OK. That’s why, evenwith self-isolation, and protections
in place for the vulnerable over-70s,
we will make sure we stay in regularcontact with our residents over the
coming weeks and months.

drive economic growth.
The Depot at Mayfield is a classic
example. Abandoned for decades,
this former station had become
associated with degradation, drugs
and prostitution. We were told toknock it down, but we didn’t want
to. It is an amazing space. People
walk in and say “wow”.
It costs a lot of money to makea wow and we had it right there.
So, last year, we opened up partof the space for plays, concerts
and civic events. There were morethan 220,000 visitors, generatingaround £10m of economic gain.
We were convinced Mayfieldwould be more inclusive, morerooted in Manchester and a lot moreinteresting if we kept The Depot
alive. That conviction was bornfrom experience in places like The
Old Vinyl Factory in Hayes, Preston
Barracks in Brighton and Deptford
Market Yard in south London.
They were all difficult sites, but
it seemed like common sense to
try and keep them. These are thetypes of places where hoteliers,
restaurateurs, retailers and creative
industries want to be: old buildings
with a richness that the modern
equivalent seldom provides.
That interest in the old is now
particularly important as we try andboost productivity, cut emissions
and find our mojo in a postglobalisation, post-Brexit world.
Keeping the old is also often moresustainable. These buildings wereconstructed using lots of material,
labour and energy. Why not reuse

and recycle rather than rebuild?
When we regenerate, we needto understand that civic pulse andcivic progress come from blending
the new with the old. And thatmeans respecting heritage assets.
According to Historic England,£1 of public sector spending on
heritage-led regeneration generates
an average of £1.60 additional
economic activity over a 10-year
period. And the overall gross value
add from heritage assets in the UKamounts to almost £30bn.
But it’s about more than just hardcash. It’s about creating places thatinvoke a sense of community, thatmake people happy and that tackle
climate change.
Richard Upton is chief
development officer at U+I

propertyweek.com

We care too for our neighbours
and the local communities in which
we operate, and where possible weare working with our residents tobuild support networks both within
our buildings and outside them.
At the time of writing, there is
still so much uncertainty and worry.
I am proud at the way many of ourlandlords, both commercial andresidential, are responding. As anindustry, we are innovative andresponsive, and I’m convinced we will
come out of this crisis with new skills
and relationships with our customers.
Many of our customers will
suffer hard times, and we must
therefore work together with thegovernment to limit the impact asmuch as possible for all parties.
Helen Gordon is CEO of Grainger
and president of the BPF

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