Property Shapers

ISSUE 132017

CHANGE AND OPPORTUNITY Susan Freeman talks to Terra Firma CEO Guy Hands

BUILD TO RENTHow build to rent is transforming the private rented sector

TUNNEL VISION Interview with Crossrail CEO Andrew Wolstenholme OBE

THE LOTTERY ISSUEHow to win in a time of change

A selection of deals our Real Estate department have recently advised on

Continued active management of Capco's retail, leisure, office and residential portfolio in Covent Garden, London. A number of beauty brands and retail stores have recently opened on the estate, including NARS, The Watch Gallery and Mulberry, and Covent Garden has announced the forthcoming arrival of a retail and restaurant concept from Petersham Nurseries and a second London restaurant from Sushisamba.

Advising on the real estate aspects of the East Village property portfolio in the £1.4 billion merger of the East Village and Elephant & Castle residential assets. The deal saw QDD (Qatari Diar Delancey) partner with Dutch pension fund asset manager APG to create 4,000 homes available to rent across both sites.

Works has commenced on the first development plot of the second phase of East Village, to construct two towers of 26 and 30 storeys (plus ground floor).

Advising on the financing of the £750 million development project, the 'Stage' in Shoreditch. The scheme includes a 37 storey, 126 metre high residential tower comprising 412 luxury apartments, two office buildings totalling over 200,000 sq ft, as well as restaurants, shops and a public amphitheatre.

Sale of two central London hotels for £180 million to AXA and ATP, Denmark's largest pension fund. The two assets, situated in St Paul's and Gracechurch Street, cover a total area of 204,000 sq ft and consist of 468 luxury bedrooms and seven retail and restaurant units.

Acting for a US investor on the sale of two mixed commercial property portfolios collectively valued at circa £200 million and totalling 37 properties. The portfolios encompassed 11 and 26 properties respectively.

Providing strategic and ongoing manage- ment advice to Blackstone Property Management in connection with a substantial part of Blackstone Real Estate's central London portfolio.

Advising on debt facilities provided to Brookfield in the £181.5 million refinan- cing of 99 Bishopsgate, London. The prime tower building covers 340,000 sq ft, and rises to 26 storeys.

Purchase of a portfolio of offices along Bath Road in Slough from SEGRO for £325 million. The portfolio, which fronts the Slough Trading Estate, contains 972,300 sq ft of office properties leased to a variety of businesses.

Acting on the 88 acre Royal Arsenal Riverside development, which will boast 5,000 new homes, an array of on-site facilities and one of the best connected developments in London once the Crossrail station arrives in 2018.

Advising on the forward funding of a 136 unit award winning build to rent scheme comprising two residential towers in Lewisham town centre from Muse Developments. The scheme forms part of one of the largest regeneration projects in south east London.

Advising a long-standing private investor client on the sale of 120 Holborn to Singaporean investor UOL Group for £229.6 million. The 2.6 acre island site comprises a 9 storey office building with ground floor retail, further separate offices at 100 Hatton Garden and three residential blocks totalling 58 units.

Advising on the real estate, planning and construction matters relating to MNKY HSE, an eclectic restaurant, wine bar, live music and DJ performance concept bringing Latin American energy and flair to Dover Street in Mayfair, London.

In the words of John F. Kennedy, "Change is the law of life. And those who look only to the past or present are certain to miss the future." With change comes opportunity so long as we recognise and act upon it. 2016 ushered in a new London Mayor in Sadiq Khan, significantly the UK opted to leave the European Union and Theresa May became Prime Minister, only the second woman to hold this office. With these changes signalling a new dawn, collaborative thought and working will become even more important. We continue to see this in the real estate sector.

This year, our Real Estate department relaunches with Estates Gazette The Collaborators initiative, focussing on the property industry's most influential collaborators. These companies are featured in Estate Gazette's 'Top 50 Collaborators Supplement'. Last year's award winner was the Government Property Unit, which has oversight of all government land and property, and works collaboratively across the civil service to boost growth and use government buildings more efficiently amongst other aims.

'Collaboration' continues to be my department's key focus. Badged as 'The Collaboratory', this initiative recognises the importance of new partnerships that are shaping our industry. Build to rent and housing; public/private joint ventures; the future of the high street; and retail/tech collaboration are key areas of interest. These and other topics have been explored through a series of roundtable debates. In the first, 'Designing London: the importance of public/ private partnerships', 25 leading developers, architects, local authority leaders and other opinion-formers discussed how we can create the conditions for successful growth.

We again hosted Property Shapers dinners at the Labour and Conservative Party Conferences, this time with London Commun- ications Agency. Our high profile guests, drawn from the worlds of central and local government, development and other key stake holders, included Deputy Housing Mayor James Murray, and debated whether confrontation or collaboration will mark the way forward post-Brexit. The debates highlighted key issues being faced by local and central government in these times of political and economic uncertainty.

We look forward to working with you on further collaborations in 2017 and to discussing how to future-proof against the changes coming our way.

CONTENTS REAL DEALS 1

ROUNDTABLE DISCUSSION 2

TUNNEL VISION 4 With Crossrail's Andrew Wolstenholme OBE EG COLLABORATOR OF THE YEAR AWARD 6 CHANGE AND OPPORTUNITY 8 Interview with Guy Hands of Terra Firma SO WHAT'S PLANNED NEXT? 11 MAKING SURE ASSETS REMAIN ASSETS 12

WANT US TO SPEND LESS TIME 13 ON YOUR BUSINESS? BUILD TO RENT: THE RISE OF A NEW SECTOR 14

SHOP TILL YOUR FINGERS DROP 16

WE’RE CONCERNED WITH 17 REAL ISSUES AS WELL AS REAL ESTATE READ NOW. RE-READ IN 2027. 18

A TOUR OF THE UK'S 20 EVER-CHANGING TAX LANDSCAPE MISHCON IN THE MEDIA 21

PROMOTIONS & NEW JOINERS 22

THE COLLABORATORY 24

THE PRE-MIPIM PARTY 25

Editorial Team: Susan Freeman, Stephen Rowe and Laura May

Nick DoffmanPartnernick.doffman@mishcon.com+44 20 3321 7015

1IMPORTANT: The information contained in this publication is only intended as a general summary and no action should be taken in reliance on it without legal advice. © 2017 Mishcon de Reya

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NICK DOFFMANAs lawyers we have to be prepared for change which comes in all sorts of guises. It can be economic or political change. It can be change which is driven by clients and the way they want to work. We all know that we are going through a period of unprecedented change at the moment and that technological change and the benefits it can bring is in the forefront of all our minds.

ANITA RIVERAWe expect change around speeding up housing delivery and clarifying the govern- ment's numerous ad hoc planning initiatives as well as those set out in the White Paper. Further details will hopefully evolve regard- ing density, the allocation of land for SME developers and proposals to enable planning authorities to take into account a developer's track record in delivery when determining a planning application. These initiatives should also recognise the need for housing delivery to be more reflective of local circumstances.

STEPHEN HUGHESWe are seeing a real sea change in the attitude to build to rent. When we were first involved for Delancey during the retro-fitting of the former Athletes Village to become East Village, there hadn't been a purpose built rental scheme in London since Dolphin Square. Now the new rental dev- elopments are starting to come out of the ground and we expect to see more happening in the next couple of years as the government embraces rental as a part of the solution to the housing shortfall.

DANIEL LIPMANYes, as Stephen says the government is now seeing build to rent as a viable way to drive housing growth and as another string to the property sector's bow along with the private market and affordable housing. The 2016 Autumn Statement mentioned that build to rent providers will have access to a £2.3 billion housing infrastructure fund and we have certainly been very busy on a number of schemes creating new built stock. The student accommodation sector has also been as busy as ever following the Brexit vote with particular demand from overseas investors.

SIMON HUNTERBuild to rent is taking off at last. I'm expecting to see growing cons- truction activity in build to rent and student accommodation. But speculative commercial develop- ment and retail schemes may continue to slow as businesses contemplate the meaning of Brexit. The weak pound will continue to put pressure on construction costs, as import costs stay high, but if demand for construction work falls generally, contractors may well absorb some of these additional costs by taking reduced margins.

NICK MINKOFFThere's been no change in the seemingly endless appetite of overseas investors for UK property. That doesn't show signs of changing anytime soon and has, if anything, been enhanced by currency exchange benefits. There's also no change in the fundamentals of providing legal services. We have to look after our clients' best interests and pull out all the stops to get the deals over the line for our clients.

SIMON HARTFollowing the initial uncertainty around Brexit, we're busy and

are pleased to be advising on the speculative development which is continuing in the City. Activity is being encouraged

by the swing in the value of currency and the stronger dollar. There's a wall of money looking to invest

but finding stock is a challenge. As a result we're seeing an increase in appetite for alternative

real estate investments. We've been particularly active with student accom- modation and PRS acquisitions as they

provide a good yield. Clients are comfortable with the market and are now looking beyond London.

IAN PAULAs Simon says, student accom- modation has been very active.

We're working on student portfolios in all parts of the UK.

England, Scotland and Northern Ireland. These have been

forward funded which some- times includes complex SDLT

planning and acquisition structures.

JONATHAN LEGGI agree; the purchase of student

accommodation offers opportunities but also pitfalls from a tax perspective.

VAT is always an issue as the wrong acquisition structure can potentially leave

either the seller or the buyer with an unwelcome and unexpected VAT charge. SDLT

is also key – the right structure can reduce the SDLT down to 1% with multiple dwellings relief,

but you've got to know the rules (including the clawback rules, which can bite if certain things happen within three years

of purchase).

SONAL THAKRARContrary to the view portrayed by press headlines, we've been seeing

record levels of high value residential transactions and the team has been

kept very busy on these. There's a real demand in the market for good quality residential property coupled with a lot

of lending activity as savvy international buyers take advantage of beneficial

exchange rates. London in particular continues to be a magnet for overseas

investors as its dining, shopping, culture and education contribute to a lifestyle

unequalled by other European capitals.

NICK STRUTTAfter the initial shock of the referendum,

we've been very busy acting for borrowers and lenders on funding transactions. Brexit and the initial

related uncertainty has not dampened the enthusiasm of developers,

overseas investors or the debt funds. A lot of the debt funds are capitalised by overseas money, and the continued

strong returns – enhanced by the favourable Forex – is ensuring that this side of the market continues to thrive.

DANIEL LEVYYes, we're seeing a lot of change but

strong asset management, a clear vision and the tenacity to effect change are

fundamentals in any market and all the more so in turbulent times. Strategic

and assertive property litigators continue to have their place in any

team seeking to deliver change.

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to them as in the cockpit of a jet. Strong collaboration has led to many ideas being brought to bear in in the pursuit of a single objective.

Why does the construction sector spend less than 0.5% of its revenues on R&D compared to the automotive and aerospace industries' spend of 3-5%? Wolstenholme puts this down to the construction industry's model. "Where you have single clients who only ever build one building at a time, you tend to see an industry that doesn't as a norm bring in innovation." He believes the lack of incentive to reinvent the way we

develop buildings hasn't encouraged innovation. Conversely, the Crossrail team actively look for innovative ideas that can be shared. Wolstenholme sees "a direct correlation between the performance of suppliers and the number of innovations they bring forward". He believes that the organisations that perform best are those that bring the most innovation. "You could also deduce from that", he says, "that if you put forward innovations, you can expect to make a better economic return and probably improve your profits – it's that simple."

To Wolstenholme, the Crossrail project is "the embodiment of collaboration". Sponsored by the Department for Transport and Transport for London, its delivery requires collaboration between some of the UK's top supply chains as well as working closely with local authorities and property owners. He cites Canary Wharf as a good example as Canary Wharf Group built the station box and won the opportunity to deliver a world class retail outlet facility at Crossrail Place (it might be called Elizabeth Place one day!). "Without everyone working in one single team environment", he says, "it’s unlikely that you could ever deliver a project as complex as Crossrail".

Wolstenholme believes passengers will be impressed by the new state of the art, walk through, air-conditioned, wifi enabled trains built by British based Bombardier in Derby, who put in a huge amount of innovation. They are light, which gives a small carbon footprint over their life cycle. Rolling stock is digitally analysed and managed in real time by Orbita, a similar system to that used by Rolls-Royce to monitor its jet engines.

Wolstenholme concludes: "I would like to surprise Londoners, even at this late stage, with a fantastic transformation asset that London is going to receive and that can act as a benchmark for future programmes." I am quietly confident that Londoners will be both surprised and delighted.

Susan FreemanPartner, Real Estatesusan.freeman@mishcon.com+44 20 3321 7017Twitter: @Propertyshe

Some months ago, dutifully wearing a hard hat and high visibility orange, I was led five levels beneath London's busy West End for a preview of the awesome Crossrail project at Bond Street station. Having followed Crossrail's progress closely, I knew about the 42 kilometres of tunnels and 10 new stations, costing some £14.8 billion, but nothing had prepared me for the sheer majesty of the tunnels, platforms and trains, which will be on a grand scale that dwarfs our existing tube lines.

After my whirlwind tour, I was whisked onto the Jubilee line (toy-like in comparison to what I had just seen!) to Canary Wharf to meet Crossrail CEO, Andrew Wolstenholme OBE, the man responsible for delivering this colossal project. I went straight to his (reportedly) favourite interview question: "Why are you here and what inspires you?" He explained that he is passionate about delivering construction projects that are complex and that matter.

"I think Crossrail really matters to London, the South East, the UK, to the industry and to the sector," he says. When he arrived at Crossrail over five years ago, fresh from delivering Heathrow's £4.3 billion Terminal 5, Crossrail's vision was to deliver a world-class railway. Wanting an even bigger vision, however, he changed this to "Moving London Forward". Crossrail, he says, will not only be a world-class railway but will leave a fantastic legacy and the capability to deliver many future Crossrails.

Wolstenholme saw that, unless they challenged the norms, the project was unlikely to be delivered on time and on budget. A core Crossrail value is inspiration, which Wolstenholme sees as being about great leadership and innovation. In a first for a public sector programme, they launched a strategy with Imperial College London in 2012 to bring innovation to Crossrail, involving their supply chains in emulation of the auto motive and aerospace sectors.

Wolstenholme describes it as about creating a culture where "it's ok to steal people's ideas with pride".

From a low level attempt to make the construction industry innovate and think differently, this initiative is now to be launched as an industry platform.

In another important innovation, Crossrail is being delivered twice, first physically, and a second time digitally. Wolstenholme talks proudly of the digital technologies being employed by Crossrail on a scale never really seen before. Innovative digital solutions range from using hand-held iPads in the tunnels to give real-time information, through to testing smart visors so workers can be hands-free and have information presented

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TUNNEL VISION

Susan F reeman meets Crossrail CEO,

Andrew Wolstenholme OBE

Photograph © Ed Telling Photography

Jace TyrrellCEO, New West End Company

"Collaboration is at the core of everything we do. We bridge the gap between occupiers, landlords, investors and the public sector to deliver a shared vision and tangible results. In establishing one of the UK’s first Property Owner Business Improvement Districts, we worked closely with policy makers, civic supporters, business associates, property developers and numerous management groups, strengthening the West End and creating a true 'West End powerhouse'.

Collaboration has been important in bringing forward key public realm projects. Work is due to start on a programme to rejuvenate Bond Street’s public realm. This collaboration between Westminster Council, New West End Company, Transport for London and West End Partnership will create a world-class retail environment. The opening of the Elizabeth line in 2018 will bring an additional 60 million visits to the district each year – a 30% increase on the 200 million visitors currently welcomed annually. New West End Company’s collaborative approach will ensure the West End is well placed to capitalise on this opportunity."

Susannah WilksDirector, Cross River Partnership

"Cross River Partnership (CRP) was formed in 1994 to deliver London infrastructure projects such as the Millennium Bridge and the Golden Jubilee Bridges. It has since diversified to deliver a range of regeneration projects, including Greening the BIDs, with and for 30 public-private sector partners in the central London area.

CRP’s vision is centred on 'Delivering Regeneration Together', with local authorities, with Business Improvement Districts (BIDs) and with landowners. As public sector finance becomes ever more scarce, the need to embrace change and develop innovative funding models in partnership with the private sector is paramount. There is no more 'business as usual'. Instead business needs to be unusual, and take up the challenges posed by public sector policy makers, for the benefit of everyone. We can all agree on many facets of the built environment regardless of political persuasions: quality buildings, green spaces, clean air, walkable streets, less traffic, efficient journeys, safe neighbourhoods. CRP welcomes the challenge of the potential changes afoot."

Graeme Craig Commercial Development Director, Transport for London

WINNER OF THE 2015 AWARD

"We were surprised and delighted to win the first Collaboration Award: surprised because it was the first recognition we had received for commercial activity; and delighted because collaboration is central to our philosophy. We have huge daily footfall and a priceless asset base in the best city in the world – and yet for decades we had been seen in the commercial marketplace as an organisation to avoid. We had to bring in new leadership, but more importantly we had to persuade leading companies across a range of industries to work with us. We remain grateful to those like Capco and Appear Here who partnered with us in the early days.

Collaboration is not a route to an easy life. It does not mean always agreeing. Above all, it requires integrity and trust, alignment of interest, and a commitment to deliver a shared vision. With those – and competence – you can build anything. Working with the Mayor, we want to be the capital's most important engine for growth, building thousands of affordable homes, helping hundreds of new businesses and generating billions of pounds to reinvest in transport. We believe in collaboration because we could not do all that by ourselves."

A CELEBRATION OF COLLABORATIONProperty Shapers speaks to some of the shortlisted nominees and wi nners of the Estates Gazette Collaborator of the Year AwardCollaboration is a key Mishcon de Reya real estate initiative. Under our umbrella brand, The Collaboratory, we pursue a full programme of debates, dinners and events, including our celebrated annual pre MIPIM party on which we have collaborated with New West End Company, Bee London, the Department for International Trade and London Chamber of Commerce.

We have also partnered with Estates Gazette for the last two years on The Collaborators, which aims to encourage and reward collaboration in the real estate sector. For the second year, and amongst strong competition, the award has gone to a public body. In 2015, our first award winner was Transport for London for its work with the property sector transforming the retail offering at Old Street station. In 2016, the award was scooped by Government Property Unit for its efforts across central and local government to consolidate and effect cost savings within its huge estate.

Collaboration, particularly between the public and private sector, is essential to effecting change by unlocking some of the issues currently facing the built environment.

Sherin AminosseheExecutive Director, Government Property Unit, Cabinet Office

"Collaboration is at the heart of what we do within the Government Property Unit (GPU). From encouraging the public and private sectors to work together as part of One Public Estate, to engaging government departments to form Government Hubs, our success at ensuring that the government estate runs efficiently and effectively depends upon collaborative relationships.

The GPU has a busy year ahead, as we roll out the Government Hubs programme across the country, further expand our One Public Estate programme, and oversee the creation of a new body for managing the government estate more commercially. As we realise our ambitious plans, the relationships we have with stakeholders within and outside govern- ment become more important. Our ability to collaborate with stakeholders to achieve common goals is something that we pride ourselves on."

Steven BageStrategic Infrastructure Advisor, City of London Corporation

"Recent improvements in the delivery of broadband infrastructure have been the product of collaboration with figures from across the property and telecoms sectors, led by the City of London Corporation. To the City’s surprise, we discovered that the disparate elements representing those involved in property development, telecoms, professional standards, membership bodies, occupiers and landlords had not been brought together to discuss how the market could be better served.

This meant that processes were not standardised, leading to protracted negotiations, high costs and unhappy clients on all sides. Recognising the importance of digital infrastructure to London’s position as a hub for global business and professional services, the City launched a project to gather views from interested sectors to encourage negotiation and build acceptance among competing positions. Following around two years of work with 25 key stakeholders and a wider group of over 100 interests, this guided collaboration resulted in the ‘Digital Infrastructure Toolkit’, which has started to simplify and speed up the provision of broadband."

WINNER OF THE 2016 AWARD WINNER OF THE 2015 AWARD

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Sitting in picturesque Guernsey over-looking the sea and the French coast beyond, I recently had the opportunity to catch up with larger than life serial entrepreneur Guy Hands, CEO of private equity fund Terra Firma.

His business career started during his schooldays and continued unabated during his four years reading PPE at Oxford University. He admits that he was once a punk – or, at least, once liked punk music. An early foray into property ownership came to a sudden end in 1982 when the cost of remedying subsidence in his art gallery caused him to abandon long harboured dreams of owning a chain of wine bars or art galleries to become a trader at Goldman Sachs.

Real estate was always a focus and Hands moved swiftly into real estate securitisation. Whilst the timing was less than ideal, one of his early deals was the securitisation of Saks Fifth Avenue in New York just before the first Iraq war. "It could have been a disaster," he says, but “we held our nerve and sold at a profit some months later”.

Having spent a lot of time on franchised real estate in the US, Hands recognised an opportunity to invest in UK pubs. In 1994, he decided to risk everything and accepted an offer from Nomura to start from scratch and set up the first Europe-based principal finance business for them in London. It was "anything but plain sailing," admits Hands. They hadn't done deals of this type at Nomura and it took months to go through due diligence. His strategy was that the pub industry was going through enormous change and he could react more quickly and more successfully than the incumbent owners.

Their first deal was almost scuppered by a Wall Street Journal article the day before proclaiming the death of the British pub. Fortunately, Nomura recognised the opportunity and the 2,200 pub portfolio purchase went ahead regardless. Some pubs were kept and securitised while others were sold on for alternative uses. Starting with this successful deal, Hands bought 8,800 pubs in all whilst at Nomura, before finally exiting in 2002.

Hands admits to "a fascination with real estate" although he isn't sure where it came from, as none of his family are in either real estate or investment manage- ment. Of his many and varied deals, one highlight for him was the acquisition of Annington, which controls almost 40,000 Ministry of Defence homes, making it one of the largest private owners of residential property in England and Wales. Meanwhile, Deutsche Annington was created in 2001 when Terra Firma acquired 64,000 residential properties from the German

Federal Railways. Through add-on acquisitions, Terra Firma tripled the size of the company, building the largest private residential landlord in Germany, with nearly 180,000 owned units.

I asked Hands if, as one of the UK's largest private residential property owners, he had thoughts on a solution to the housing crisis. "It would be easy if there were no politics," he says. He believes that planning laws are the obstacle to solving it. But he admits that balancing economic prosperity and the environment isn't easy. "Politicians have to deal with the art of the possible. As an entrepreneur I deal with trying to achieve the impossible."

He regards housing in the UK as politically more difficult than Europe. He reasons that in the UK people have a greater percentage of their value and more personal debt secured against their houses. "Our lifestyle is supported by higher levels of private debt than in Europe."

Hands is old enough to remember the 1970s and what Great Britain was like after having just entered the European Union. "We had to go cap in hand to the IMF and couldn't afford to run our factories or light our homes," he recalls. Yet by 2010 "we had become the most desirable place in Europe to live." Hands believes that we need to look at our leaving the EU as "a completely new beginning" and that we will very soon be in the position Singapore was in when it left the Malaysian Federation in 1965. "Today it's one of the best economies. When they left they couldn't see how

The pessimist sees the change.The entrepreneur sees the opportunity.

Guy Hands tells Susan Freeman why change will always be an entrepreneur's greatest asset.

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So what’s planned next?

Anita Rivera and Daniel Farrand examine how new planning policies change the landscape

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they would survive. This is for Britain a completely new reality. A complete change. This is something many Brits will find it difficult to come to terms with."

He cautions against assuming that commercial documents have to be drafted under English law for European property transactions. He is currently documenting a deal under Swedish law, as he feels this is more likely to be recognised in the Nordic countries post Brexit. In his view, "the rule book will need to be ripped up and Britain rebuilt." Speaking as someone who has spent his whole career spotting change before it happens, Hands adds that "change always takes longer and is more painful than expected but the rewards can be huge."

As Hands sees it, "every single business has gone through fundamental change in my lifetime. Real estate is probably the industry in the UK that has managed to resist change the longest, but change is coming." By way of illustration, Hands spends five hours a day video linked to the UK for meetings. "Today you may not be able to share a sandwich," he remarks, "but otherwise with up to five people you can read body language as well as if you were meeting face to face." What advice would Hands give to a young entrepreneur? Without hesitation, he says be prepared to take a substantially reduced income as he did when starting out. What would Hands do if he was starting again in real estate today? He would be looking

at a tech incubator where start-ups would rent by the day and he would take a percentage of seed equity. Ideally this would be achieved in conjunction with the government's surplus brownfield sites. He would aim to have centres of excellence across UK and then into Europe.

In terms of challenges he hasn't yet taken on, Hands would relish the opportunity to turn around a large bureaucratic govern- ment department or public company. But, he says, "they won't ask because I would be radical and I don't dance to anyone's tune". It will be interesting to see what comes next. Hands admits he finds it almost impossible to do anything that isn't work. On a recent Antarctic trip he spent time watching the way penguins use teamwork to succeed in an inhospitable environment. They take it in turns to dive into unsafe waters for the success of the project. "Occasionally the 'jumper' gets eaten," he casually remarks.

Hands philosophises that sometimes in business you have to take risks to succeed. "Risking failure is more admirable than always doing things that succeed," he says.

"Too often we reward success and punish failure. People don't realise how difficult it is to risk failure but if someone didn’t, we wouldn't move on. It's an important lesson." And his mantra is "stay positive. Change brings opportunity."

Susan FreemanPartner, Real Estatesusan.freeman@mishcon.com+44 20 3321 7017Twitter: @Propertyshe

Properties from the Terra Firma Annington Homes portfolio.

The ever-changing planning regime continues to contribute more than its fair share to a changing property environment. Planning is often seen as the scapegoat for a system that has failed to provide sufficient housing to meet current and future demand.

More recently, as each new local or national government takes the helm, one of the very first changes made is to gnaw, bite, or tear away at planning policy. Over the past five years we have seen a raft of new planning policy and legislation that seeks to devolve planning control to a local level, remove red tape and create a default position which is 'yes', rather than 'no' to development.

While some may say that localism still exists, there needs to be a political environment that expects housing to be delivered and creates a policy framework to ensure that it does. But the lead-in time to secure a change in previous directionstakes time. Whilst the manifesto commit- ments and good intentions remain fresh, the policy tools with which to implement them remain blunt until new policies that support the new vision have been adopted. This is true at local as well as central government level.

Notwithstanding the new London Mayor Sadiq Khan's election on the back

of a strong housing platform, until a revised London Plan is adopted, the policies upon which housing decisions are made will remain those of his predecessor, Boris Johnson. He has wasted little time in initiating change through his consultation draft guidance on affordable housing. The guidance expands on and supplements the London Plan policy. It can't change the policy, but it is more quickly adopted and allows him to use and personalise Boris's plan as best he can. His aim is to support the provision of housing and to increase the number and speed of houses provided.

Ultimately, a new London Plan is already taking shape. The nature of a directly elected mayor, and the strong influence of their personal agenda on politics, means this will happen much faster than a local plan is ever likely to following change of the controlling party of a local council. The effect of personality will be felt more keenly in planning as more areas of the country are given 'metro-mayors' throughout 2017.

However, change will take time. Boris took over three years to adopt his planned changes. Some local planning authorities take decades to deliver policy and some never do. The Housing White Paper contains a variety of consultations

continuing to look for ways of delivering the government's 2015 election promises. However, the ability to make planning policy is a valuable tool for facilitating economic growth and creating sustainable communities. These benefits, of course, must be measured against the market uncertainty that changes bring. Hence, while the White Paper and new London Plan policies may take time to crystalise, the lead-in time will give some comfort to the market as participants will be able to try to position themselves in anticipation.

Anita RiveraPartner and Head of Planning anita.rivera@mishcon.com+44 20 3321 7901

Daniel Farrand Managing Associate, Planning daniel.farrand@mishcon.com +44 20 3321 6764

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The pace of technology adoption continues to increase exponentially, with excitement about machine learning and Artificial Intelligence (AI) reaching new highs. Until recently the legal industry has been perceived as being at the back of queue when it comes to adopting new technology. But times are changing. The rumblings caused by the AI and data science revolution are starting to impact the field of law. Here at Mishcon, we are investing significant time and effort in changing how we work. We have recently launched an incubator programme for tech start-ups in the legal space, MDR LAB, as part of our commitment to technologically transforming our practice. Our Real Estate department is at the forefront of these changes. We are developing a suite of tools that speed up the way our lawyers work. For example, we use data manipulation tools to push and pull data automatically from public sources including the Land Registry or Companies House at the start of a transaction, or HMRC at the end of it. And using machine learning technology, our lawyers can scan through real estate documents and extract relevant information quickly and accurately. Tasks that take a human days to perform, can now be undertaken in mere hours. Another central theme for us is 'structured data'. Every legal document contains nuggets of information which are invaluable to our clients.

Using technology, we are able to unlock that value by creating databases of structured data, which can be presented visually and can be passed to our clients – for example, we can automatically upload key lease terms to our clients' lease management systems at the end of transactions. Not only do these technologies help us work faster and more efficiently, they also allow us to reach more pragmatic and commercial view- points at an earlier stage in a transaction. For example, most large rights of light issues involve trawling through hundreds of documents, often with no way of quickly assessing which buildings might be problematic from a legal perspective. Using technology we can automatically review documents looking for key provisions that will give a good initial view of where issues may arise, allowing problem properties to be prioritised for review at an early stage. We are a long way from the day when you will be able to ask Siri whether you should buy a property but we are fast progressing towards using this suite of tools to significantly improve and streamline our real estate work. Professionals will then have more time to spend adding value in commercial terms and interacting with the client. Property has always been about people and these tools will ensure we spend less time in front of a computer, not more.

For more information on MDR LAB please see: https://lab.mdr.london/

Nicholas KirbyManaging Associate, Real Estatenicholas.kirby@mishcon.com

+44 20 3321 6707

Nick WestChief Strategy Officernick.west@mishcon.com +44 20 3321 7934

Nick West and Nicholas Kirby explain how technology is dramatically speeding up the pace of real estate work.

WANT US TO SPEND LESS

T ME ON YOUR BUSINESS?

12

2016 was a turbulent year of unexpected events including the EU referendum result and Donald Trump's election as US President. The resulting volatility in the financial markets is likely to continue as Brexit talks play out against the background of upcoming European elections. This unpredictability has a knock-on effect on investment. Outlined below are some key pointers for property owners wanting to protect their assets in uncertain times.

Maximising assetsMany property owners will consider redev- eloping and/or enlarging property rather than expending capital on new additions.

RecommendationAlthough there are numerous issues to consider, one of the biggest inhibitors to development in a built environment is rights of light. The last thing a property developer wants is to be faced with an injunction preventing further works or worse, requiring the removal of already completed works. It is imperative that rights of light are considered sufficiently early to enable a cohesive strategy to be put in place, usually involving an insurance policy.

Raising depositsSellers may be tempted to demand larger deposits (the norm is generally accepted to

be 10%) and/or include a mechanism for the payment of further deposits. This may be particularly appealing when developers are selling off-plan new-build properties.

RecommendationThere is a risk that such clauses will be self- defeating as they are likely to be construed as 'penalty' clauses, meaning that if the buyer defaults the entire deposit will be repayable to the buyer. Unless there is a good reason to ask for more than the 'normal' deposit, it is risky to do so. Developers should consider incentivising buyers to continue with the purchase in other ways, for example by offering a price reduction or the payment of stamp duty, by giving 'free' service charge for a set period after purchase and/or fixtures and fittings.

Taking breaksIn challenging times, companies may look to reduce the premises they occupy by exercising break clauses in their various leases. Conversely, landlords will be keen to keep their portfolio occupied in order to maximise income. Immediately there are competing interests in play.

RecommendationThe effective exercise of break clauses is a key battleground in uncertain economic times;

there have been over 500 cases (including two trips to the Supreme Court) and these figures are continuing to increase. Break clauses can be very hard to get right and the approach of the courts can seem extremely harsh to outside observers. The effective exercise of a break clause entails the proper service of a valid notice and, in some cases, can also require compliance with stringent pre-conditions, so the notice may take significant preparation. It is imperative for both parties to be properly prepared; landlords and tenants should take early advice and plan ahead.

These are just a few key points but the overriding necessity is to seek early strategic advice on the advantages and disadvantages of all available options in order to protect your assets in uncertain times.

Karen MitchellAssociate, Property Litigationkaren.mitchell@mishcon.com+44 20 3321 6536

MAKING SURE ASSETS REMAIN ASSETSHow to protect yours in unpredictable times

How build to rent is transforming the private rented sector

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The private rented sector (PRS or build to rent, as it is sometimes known) is one of the fastest growing real estate asset classes in the UK. It has been quoted that a further 1.1 million households will be renting privately in the UK in the next five years and the value of the sector is expected to rise from £15 billion to over £50 billion by 2020. In London, all but three of the London boroughs have seen PRS units constructed and invest-ment in PRS has been pouring into the regions, especially the North West.

The PRS sector offers a professional, viable alternative to the ownership model for 'generation rent' (and, indeed, for older 'empty nesters') and is now being

viewed by Theresa May's government as part of the solution to the housing shortage and as an affordable tenure in its own right.

The main problem, however, is not a lack of developers, operators or institutional investors, but a chronic lack of supply of land for housing, particularly for a specific PRS use. One of the ideas which, we believe, will play a significant role in assisting the industry is the release of public land for housing projects, allowing public bodies to collaborate and work with the industry to drive it forward. Since the 2016 Autumn Statement, PRS providers will now have access to the £2.3 billion Infrastructure Fund to help

the Get Britain Building mandate and, interestingly, an additional £1.7 billion will be used for the construction of new homes on public sector land.

We have already seen the public/private inspired initiatives in practice, having had the opportunity to work with Fizzy Living (the specialist PRS operator founded by Harry Downes) on the GLA-backed residential-led development scheme at Silvertown Way in Canning Town. Regeneration plans have now been submitted by Opal, a joint venture partnership between Thames Valley Housing and Galliford Try, for 975 new homes – 339 for private sale, 293 for private rent and 343 affordable units.

A part private sale, part build to rent, part affordable approach will accelerate delivery of much needed housing. Mayor Sadiq Khan's housing manifesto encourages this strategy, but what we really need is a legal obligation on local authorities to provide PRS as part of these develop- ments, rather than non-binding guidance on the possible use of PRS.

These multi-tenure schemes do often, however, raise some tricky legal issues to resolve in the transaction documents including security for the performance of the developer's obligations, estate structuring (including forfeiture on insolvency clauses in any head leases prior to practical completion), tax (both SDLT and VAT), onerous conditions as part of the planning process, design development, construction issues arising

from sectional completions of parts of the estate, energy schemes, rights to light (and possible use of appropriation rights) and there are many more. All of these issues can be overcome, but it requires some considered thought and careful drafting in the legal documents.

On a final note, how do we see Brexit affecting the sector? It will probably result in easier access to institutional money, as the devaluation of sterling since the 2016 vote has meant overseas investors (particularly from the US) are starting to invest heavily in the UK markets. The next 12 months may be challenging and uncertain in light of the Brexit vote, but the generally held view is that Brexit provides even more opportunities for PRS and that the sector will continue to thrive.

Daniel LipmanPartner, Real Estatedaniel.lipman@mishcon.com +44 20 3321 7441

Ed Hughes-PowerManaging Associate, Real Estateedward.hughes-power@mishcon.com+44 20 3321 7051

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13

How technology keeps transforming retail. Dr Pippa Malmgren asks “What next?"

Global economist and former economic adviser to President George W Bush, Dr Pippa Malmgren, recently addressed an audience of top retail and technology experts at our new Mishcon HQ to discuss the technological challenges facing retail and whether we are ready to cope with the many changes hurtling down the track at breakneck speed.

Dr Malmgren set the global scene, pointing out that we are in the middle of a populist uprising, the result of which is that we are generally spending less on consumer products and more on experiences, which is very relevant to the retail sector.

Change is apparent when we look at the physical retail landscape and how the line between the physical and the digital is becoming increasingly blurred. Our retail landlord guests commented on the challenges of creating retail centres that appeal to the senses and the human side of shopping. It was suggested that we question the future role of digital and technology in retail as customers also want to be around other people.

The role of technology is to make shopping easier and create better experiences. One guest suggested that there are three currencies: money, time and energy. Retailers have to help the customer save one of these in order to show value.

The blurring of physical and digital requires us to consider consumer trends and the way customer demand is changing fast. Increasingly, the successful new retailers don't need retail ware- houses and don't carry stock. These businesses are creating a direct link between the supplier and the customer. There is a growing demand from customers for instant gratification with

more and more wanting their products to be delivered the same day, if not immediately. The constant innovation in technology has left some brands struggling to keep pace and feeling disconnected from technology. The recently announced Google Instant Apps is seen as a game changer as it can power the gap between retail and apps and makes them more easily accessible to the customer. It is therefore seen as an exciting new development by fashion tech apps.

Our group was clear that there would still be a place for bricks and mortar retail but it would be more about providing an experience for customers that is not available online. 'Ask, listen and advise' would be the way forward for in-store service.

In conclusion, Dr Malmgren pointed out the importance of blockchain as it will lead to transparency and a cashless society which will have huge implications for retail.

16

In November 2013 we launched our new social impact programme, developed to inspire our lawyers to use our skills, funds and ideas to effect the changes they want to see in our local community and more broadly. Our annual £250,000 budget supports UK registered charities including: Place2Be, a charity that provides mental health support through in-school counselling; the Lewa Education Programme supporting schools in Kenya; and Kiva, an international micro-financing charity. Importantly, as part of the strategy, we run an Innovation Fund for projects that deliver social impact. This includes a partnership with Southbank Centre on the annual WHY? (What's Happening for the Young?) Festival.

In 2016, the Real Estate department selected The Lewa Education Programme, to support a primary and secondary school in Kenya, funding teacher salaries and bursaries. The department successfully committed to raising £10,000 of the Firm's overall pledge of £42,000 in 12 months to build a new girls' dormitory for the Ngare Ndare Secondary School, part of the Lewa Wildlife Conservancy, Kenya. This was the Firm's biggest fundraising challenge to date and we are delighted to confirm that the new dormitory build has been completed. This will allow the students to study without the fear of making the long journey to and from home.

A school dormitory in rural Kenya. A mental health programme for teens. An arts festival on the South Bank.

We're concerned with real issues as well as real estate.

91www.estatesgazette.com

THE WEEK PRACTICE & LAW WORK:LIFETHE MARKET

19 November 2016

Property agents and clients put their architectural skills to the test at Mishcon de Reya’s Jenga tower-building competition.

After 24 teams had their five minutes to build the tallest Jenga tower, the creative skills of pop-up firm Appear Here became apparent as the firm claimed first place. LandSec and Gymbox came joint second.

Appear Here team towers over rivalsThe event raised £6,000 towards the

£42,000 total that Mishcon de Reya has pledged to raise for the Lewa Wildlife Conservancy in northern Kenya.

The money will help build a girls’ dormitory at Ngare Ndare Secondary School as part of the Lewa Education Programme. Donate at www.justgiving.com/fundraising/lewa-dormitory

Poker players lend a handThe industry’s card sharps gathered recently for Palmer Capital’s charity poker tournament in aid of LandAid.

The event, co-sponsored by Forsters, took place at the Clermont Club, W1, and was attended by more than 60 property professionals from CBRE, Savills, Deloitte, GVA and other firms.

Rapley’s Jonny Doulton’s winning hand brought the evening to an exciting finale and boosted the prize fund to £1,750.

The event raised just under £9,000 for LandAid.

Doncaster-based firms Tembé DIY and Building Products have raised £11,000 for Children with Cancer UK.

The businesses donated 50p for every promotional pack of HIPPO heavy duty trade wipes sold.

The firms’ employees also took part in runs throughout the UK to raise money.

All cash raised will support Children with Cancer UK’s research and help care for children affected by the disease.

HIPPO weighs in with £11,000 for the kids

Sentinel Housing’s community chest

Pick Everard man takes builders’ award

Sentinel Housing Association has this year built on its successful 2015 Making it Happen Fund, awarding just under £30,000 to 11 groups that aim to deliver community-based projects in Hampshire.

This year’s project beneficiaries include Dove House School Academy; Hart Voluntary Action, for Volunteer North Hampshire’s promotional materials; Basingstoke in Bloom, for its annual competition; Picket Piece village hall for the family Christmas party; Popley Spotlight Centre, for its Child Support Programme; Destination Basingstoke for the Sitting with Jane school programme; Basingstoke Mencap, for the Greenfingers Community Gardening Service; Rooksdown Community Association, for its drop-in sessions for young people; and Sherborne St John village hall, for improving the building’s storage space.

Pick Everard’s Mike Reader has picked up the Young Achiever of the Year award at the 2016 Constructing Excellence National Awards, which recognise the top achievements by construction industry firms, individuals and clients. At the awards ceremony at Marriott Grosvenor Square, W1, he said: “The support and development opportunities I’ve been given at Pick Everard have been amazing.”

GET INVOLVED

ATTENTION, TRIATHLETES If you have put your fitness to the test in the JLL Property Triathlon over the past 10 years and have enjoyed the exhilaration of the competition, this is your opportunity to nominate the triathlon for the Race of the Year award at the 220 Triathlon Awards.

Voting closes on 30 November. To help the event to the shortlist, go to http://www.220triathlon.com/

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Pat BrownCEO, CentralThe sector has responded splendidly to change in the past 10 years. As both a tool and an economic driver, tech has recalibrated the look of workspace and occupiers’ expectations, heralding the ‘gig’ and sharing economy, including co-working space and the move towards renting. This shift will continue, and savvy real estate companies will create or exploit platforms to deliver services, drive down costs and focus on sustainability. City authorities and developers will need to work together to futureproof places, so that new bits of ‘kit’ – like AVs – bring benefits to the cityscape, not erode the importance of spaces between buildings. Here’s hoping that the sector will have learnt that focusing on place and design quality is essential to achieving growth, helping make change a more attractive proposition for the communities that are reshaped by it.

Sir Terry FarrellFounder, FarrellsThe sector will need to think innovatively and think beyond the obstacles of today. London’s growth and housing crisis will mean our work on mid-rise, high-density will be of greater importance, as will our advocacy and practice of transport-oriented development. The private sector must lead with these initiatives. In east London, the next 10 years provide a historic opportunity for the city and the country – the riverfront and riverside communities could be transformed by low-level lifting bridges across the Thames whilst a revived docks will be central to an outward-looking UK. There is also a real need to plan intensification and landscape together – development can go hand in hand with the creation of more and improved public realm and public access. To weather the change of the coming decade and thrive, the sector must work with professionals within and beyond the built environment industry to build adaptive and sustainable communities.

Rohit TalwarCEO, Fast FutureIn many large cities, we could see more people working for multiple employers from home or public drop-in locations. The emergence of vertical farming, synthetic biology, human augmentation and autonomous cars will create new sectors – whose property demands have yet to become clear. Buildings will need to be built or converted for more flexible use. We will be in the heart of the transition to smart cities and smart building infrastructure, so every person, chair, desk, floor panel and brick could contain sensors, continuously monitoring para- meters from temperature to stress. Buildings will incorporate advances from materials science, there will be more widespread adoption of flexible solar panels and solar conductive paint, and buildings will draw on wind power and kinetic energy captured from people and vehicles. Drone technology will be widespread – cleaning and repairing buildings, and deliver- ing parcels. Ten years is a long time – a decade ago we were not using smartphones. We need to think the unthinkable and prepare for a range of scenarios so that we can navigate a rapidly changing reality with confidence.

18

Darryl FlayCEO, Essential LivingOne of the biggest growth areas of UK real estate has been student housing, attracting record levels of investment. We see this as being in part a trailblazer for our own build to rent sector, at least as far as structures and operations are concerned. But our ambitions and those of the sector are far more main- stream. Therein lies the opportunity for build to rent to overtake not just student accom- modation, but listed commercial real estate investment, as it has done in the US. Getting on the “rental ladder” is about wanting an easier life, with better customer service and in more enviable surroundings. Our challenge is in being able to offer a genuine level of service – not simply a physical living space – that lifts renting into a life-affirming experience where people identify with the brand.

Paul GallagherConsultant, JLLThere will be a dramatic increase in the number of electric vehicle/hybrid vehicles on our roads which will turn the traditional world of car parking on its head. Current predictions are that sales of these vehicles will account for 25% of new vehicle sales by 2027. Car parks and infrastructure will need to change to accommodate the required charging bays. At JLL, we predict that 75% of car parks will have electric charging points by 2025. The car park experience will be revolutionised through innovation: automatic number plate- recognition systems will connect to pre-paid parking methods and loyalty cards; car parks will become ‘homes’ for driverless cars, with users summoning them by smart phone or tablet app; and contactless payment will lead to cashless car parks.

Brandon WeberCo-Founder & Chief Product Officer, VTSWe will see the integration of technology and data analytics into all sectors of the property market. It will change the face of property transactions. Industry leaders will move quickly to leverage this as a competitive advantage, implementing modern technology platforms and standing up their own R&D teams. Roles such as those within agency will become more consultative and data driven, with leading brokerage firms leveraging their massive data and geographic scale to provide predictive insights into market opportunities and risks. This will help with the globalisation of the property industry, and the overall property asset class will become more efficient. In essence, the industry will reflect the rapid change seen in the financial industry through the advent of Fintech.

19

Here, experts give their view on the key changes expected in the built environment over the next 10 years.READ NOW

RE-READ IN 2027

Astrologer Shelley von Strunckel foresees a positive year ahead for the property sector. Her top cosmic predictions for 2017 are:

1. Increased power wielded by the ‘working classes’, who’ve become well-informed players across the property, financial and political spheres.

2. Within the private sector, wealth becomes a tool to benefit others (the plus being tax advantages). Shared assets support then bring profits to the working population.

3. 'Excess' profit – profit created at a cost to area, region and local businesses or residents – is recognised as counter to collective well-being or ‘conscious’ profit.

4. A marked shift in ownership takes place from individual to collective; think Airbnb versus hotels and Uber versus taxis, but in business and personal property.

5. Is it right/is it ethical? Yes, watch as, gradually, spiritual values become a normalised part of business, economic and political conversation.

But what are the longer term forecasts proffered by the property industry?

20

Tax is one of those areas that always changes. But it is fair to say that the rate at which the changes are occurring, and the nature of them, seems to have an almost unstoppable momentum at the moment. Traditionally the Budget has taken place in March, setting out the policy and legislative proposals for that year's Finance Bill. Gordon Brown then introduced the Autumn Statement, a sort of mini Budget which occurred in late November/early December. Coupled with changes in the international climate – leading to the so-called BEPS (base erosion and profit shifting) proposals by the OECD – and the public perception of what is 'tax avoidance', this legislative opportunity for change has led to quite a startling shift in the UK tax landscape, even compared to a few years ago. One of the big anti-avoidance drives in recent years has been against 'enveloping' residential properties in companies in order to avoid stamp duty land tax (SDLT) on a future sale. Together with the complicated rules applying the new 3% SDLT surcharge on the acquisition of 'additional' residential properties, this

has made the acquisition of residential property a complex legal area. It is difficult to see how HMRC expects high street conveyancers with no access to specialist tax advice to be able to cope with the new rules.

We have seen major changes – the long- standing exemption for non-residents from capital gains tax (CGT) on property investments in the UK has disappeared for non-resident investors in residential property (with a few exceptions). And the new more restrictive inheritance tax rules have rendered many traditional holding structures redundant. What about commercial property? It is clear that the traditional CGT exemption for non-residents investing in UK commercial property – the last real tax incentive for non-resident investors – is under siege. The government will also consult on bringing rents received by offshore landlords within the scope of corporation tax rather than income tax next year. This is certainly likely to mean non-resident investors will be caught by the new rules restricting the amount of interest that can be deducted

for tax purposes when calculating rental profits – but on the plus side means that they can benefit from the falling rate of corporation tax (17% by 2019). Perceived loopholes for non-resident developers operating in the Channel Islands or Isle of Man have also been closed through the new beefed up 'transactions in land' rules. However, the rules are so wide that they cannot be ignored by groups based wholly in the UK. For example, the so-called anti-fragmentation rules can deny deductions for interest on loans which are not plain vanilla ones. Inevitably the new few years will continue to keep the tax practitioner busy!

Jonathan LeggPartner, Real Estate Taxationjonathan.legg@mishcon.com+44 20 3321 7092

Jonathan Legg takes a tour of the UK’s ever-changing tax landscape.

21

MISHCON IN THE MEDIA

WHO’S TAKEN MURRAY TO LUNCH?"Oh, and for those interested in business as well as pleasure, the first in the door for the new deputy in June: Mishcon de Reya [and the LCA]."

Government announcements on Starter Homes and Garden VillagesDaniel Farrand on BBC North-West Tonight"The Starter Homes initiative is somewhat controversial. There is a real question as to whether it will actually en-able affordability – it’s a one-time discount. It may be that it gets distracted into arguments about suitability of starter homes rather than the delivery of the houses."

Forty Under 40: Claudine AdeyemiWhere do you hope to be in five years?I hope to have a lot more property litigation experience under my belt, and to know the law inside out - to the extent that that is possible.

Imperial march: university set to build 700 student flats in west LondonRebecca Taylor, managing associate at Mishcon de Reya, who advised Essential Living, added: “This deal under-scores the level of demand for well-connected sites in London. Developing one of the country’s largest build to rent schemes side by side with Imperial will create a truly diverse new community that will no doubt attract further investment into Old Oak Common.”

Chinese sued in brewery fight over ‘owed’ millionsLeading property litigators from Mishcon de Reya, for Delancey, and Ashurst, for Greenland, will attend a hearing on Thursday regarding document discovery in advance of a trial scheduled in 2017.

Rich London homeowners face paying £8,000 'tax' to dig mega-basements Daniel Farrand, a managing associate at law firm Mishcon de

Reya, said: "It is difficult to argue against the principle of a

council working harder to ensure that its rules and standards are

followed but Westminster will have to be careful when tightening

its standards."

"Beyond a certain point, the cost of marginal gains in noise

reduction can be huge. Reduced working hours have to, by simple

mathematics, result in longer build periods and increased costs of

holding the property while it generates no income."

ONE TO TREASURE?Manchester United’s former star player Gary Neville continues to entertain off the pitch with his property development initiatives. Having faced forthright opposition to two skyscrapers proposed for his home city, Neville’s latest venture will see the opening of a Mahiki nightclub around the corner from the town hall. Just 11 years after the original Polynesian-themed club was opened in London’s Mayfair, Mancunians can now enjoy its famous £100 Treasure Chest cocktail on home turf. In typically pared-back style, Neville announced the new venture on Instagram with a photo of an exotic cocktail, saying: “Coming to Manchester.” We can only guess what cutting-edge establishment Neville might lure in next…

NEW EDITIONOver Christmas The Economist vacated its home of 52 years, 25 St James’s Street, SW1. The Grade II listed Economist Plaza will be

redeveloped by Tishman Speyer and the magazine will move to Blackstone’s Adelphi, WC2. Unsurprisingly, there will have been few such well written eulogies to an office than that which appeared in the last edition to be produced in St James’s. Journalists at the “weekly newspaper that improbably decided to become a property developer” did not doubt their home’s architectural importance, nor the origin of the title’s coolly authoritative tone. The height of the 16-storey building gave the team “greater

confidence in handing down Olympian judgments on world affairs”. But a questionnaire sent to staff asking what they wanted in a new building turned up some more prosaic requests – such as better bike sheds and yoga facilities. Above all, though, people said they wanted offices “much like the ones many have occupied for the past 50 years”. Plus ça change, as Economist columnist Bagehot might say.

BACK AND FORTHRIGHTJanuary is a time to make resolutions, property’s finest included. Head of real assets at Legal & General Bill Hughes is aiming to “remove the stabilisers on my roadbike, even though I keep falling off”, while Almacantar chief executive Mike Hussey is “focusing on investment

fundamentals and giving up on retrospective market analysis. In other words: I’m going to drive my business looking out of the front windscreen, not the rear.” Wise words indeed.

NEW YEAR CHEERSThe real estate industry can be rightly proud of its ability to put its hand in its pocket and dig deep for charity, writes Samantha McClary. This is why I have hijacked this spot to say a massive thank you to all those in the industry who once again helped me raise more than £5,400 for Coram and the Duke of Edinburgh’s Award by sponsoring one of my crazy challenges. Read all about it (and maybe add a little more to the total) at www.samanthamcclary.wordpress.com.

Diary

Down a gear

WORK:LIFE DIARY

www.estatesgazette.com74 7 January 2016

WORK, PLAY, BUT NOT MUCH RESTIt has been a busy six months for London mayor Sadiq Khan and his team at City Hall – as is made clear by the Greater London Authority’s declaration of gifts and hospitality. While the mayor’s inventory includes such fun and games as tickets to the Proms, the Wimbledon men’s final and even three boxes of mangos, spare a thought for his hard-working deputy James Murray (pictured). Since starting in June, the deputy mayor for housing has received almost no gifts and been taken to only two events: one of which was the theatre production of Cathy Come Home. He has, however, attended 34 meals: including one breakfast, nine lunches, 21 dinners and even one “supper”. For those who think there might have been a few more relaxing interludes in that, think again: he went out for “drinks” just once. Oh, and for those interested in business as well as “pleasure”, the first in the door for the new deputy in June: Mishcon de Reya (and the LCA).

More bad news for the BBC’s Top Gear. Not only has the show flopped following the departure of Jeremy Clarkson et al, it seems it has now lost its famous test track. The site – Dunsfold Aerodrome in Surrey – is to be turned into a mixed-use development of 3,400 homes, shops, cafés, a school, health centre and, of course, transport improvements. Well, at least the area’s housing need is being revved up.

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ONE TO TREASURE?Manchester United’s former star player Gary Neville continues to entertain off the pitch with his property development initiatives. Having faced forthright opposition to two skyscrapers proposed for his home city, Neville’s latest venture will see the opening of a Mahiki nightclub around the corner from the town hall. Just 11 years after the original Polynesian-themed club was opened in London’s Mayfair, Mancunians can now enjoy its famous £100 Treasure Chest cocktail on home turf. In typically pared-back style, Neville announced the new venture on Instagram with a photo of an exotic cocktail, saying: “Coming to Manchester.” We can only guess what cutting-edge establishment Neville might lure in next…

NEW EDITIONOver Christmas The Economist vacated its home of 52 years, 25 St James’s Street, SW1. The Grade II listed Economist Plaza will be

redeveloped by Tishman Speyer and the magazine will move to Blackstone’s Adelphi, WC2. Unsurprisingly, there will have been few such well written eulogies to an office than that which appeared in the last edition to be produced in St James’s. Journalists at the “weekly newspaper that improbably decided to become a property developer” did not doubt their home’s architectural importance, nor the origin of the title’s coolly authoritative tone. The height of the 16-storey building gave the team “greater

confidence in handing down Olympian judgments on world affairs”. But a questionnaire sent to staff asking what they wanted in a new building turned up some more prosaic requests – such as better bike sheds and yoga facilities. Above all, though, people said they wanted offices “much like the ones many have occupied for the past 50 years”. Plus ça change, as Economist columnist Bagehot might say.

BACK AND FORTHRIGHTJanuary is a time to make resolutions, property’s finest included. Head of real assets at Legal & General Bill Hughes is aiming to “remove the stabilisers on my roadbike, even though I keep falling off”, while Almacantar chief executive Mike Hussey is “focusing on investment

fundamentals and giving up on retrospective market analysis. In other words: I’m going to drive my business looking out of the front windscreen, not the rear.” Wise words indeed.

NEW YEAR CHEERSThe real estate industry can be rightly proud of its ability to put its hand in its pocket and dig deep for charity, writes Samantha McClary. This is why I have hijacked this spot to say a massive thank you to all those in the industry who once again helped me raise more than £5,400 for Coram and the Duke of Edinburgh’s Award by sponsoring one of my crazy challenges. Read all about it (and maybe add a little more to the total) at www.samanthamcclary.wordpress.com.

Diary

Down a gear

WORK:LIFE DIARY

www.estatesgazette.com74 7 January 2016

WORK, PLAY, BUT NOT MUCH RESTIt has been a busy six months for London mayor Sadiq Khan and his team at City Hall – as is made clear by the Greater London Authority’s declaration of gifts and hospitality. While the mayor’s inventory includes such fun and games as tickets to the Proms, the Wimbledon men’s final and even three boxes of mangos, spare a thought for his hard-working deputy James Murray (pictured). Since starting in June, the deputy mayor for housing has received almost no gifts and been taken to only two events: one of which was the theatre production of Cathy Come Home. He has, however, attended 34 meals: including one breakfast, nine lunches, 21 dinners and even one “supper”. For those who think there might have been a few more relaxing interludes in that, think again: he went out for “drinks” just once. Oh, and for those interested in business as well as “pleasure”, the first in the door for the new deputy in June: Mishcon de Reya (and the LCA).

More bad news for the BBC’s Top Gear. Not only has the show flopped following the departure of Jeremy Clarkson et al, it seems it has now lost its famous test track. The site – Dunsfold Aerodrome in Surrey – is to be turned into a mixed-use development of 3,400 homes, shops, cafés, a school, health centre and, of course, transport improvements. Well, at least the area’s housing need is being revved up.

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"And another thing, the 3% surcharge on additonal residential properties..."

22

Sonal ThakrarPartner, Head of Residential Property Sonal has taken over as Head of the Residential Property group. The group provides advice on all aspects of UK residential property and secured lending to banks.

Laura OdlindLegal Director, Property LitigationLaura leads the Residential Property Disputes practice, which she has built. She has particular expertise in relation to high value residential property litigation.

Sarah Heritage Managing Associate, Property LitigationSarah specialises in a wide range of contentious issues with an emphasis on commercial landlord and tenant disputes and high value residential disputes.

Kathryn HodgsonManaging Associate, Real EstateKathryn has a wide range of experience including acquisitions and disposals of investment property, financing and redevelopment work.

Katie ListerManaging Associate, Real Estate FinanceKatie specialises in real estate finance and corporate finance, advising financial institutions, funds, developers, investors and corporate borrowers.

Kirpal KaurPartner, Real EstateKirpal has built a practice of ultra-high net worth investors and developers both overseas and in the UK who value her personalised approach and view her as a trusted advisor.

Sarah SpurlingLegal Director, Real Estate FinanceSarah is experienced in domestic and cross-border debt finance transactions, including property acquisition and development finance, corporate acquisition finance and general corporate lending.

Domini HobsonManaging Associate, Real EstateDomini's wide range of experience includes investment property acquisitions and disposals, real estate restructurings and negotiating commercial leases on behalf of both landlords and tenants.

Nicholas KirbyManaging Associate, Real EstateNicholas specialises in commercial real estate work, dealing with investment acquisitions and sales for institutional and private clients, management work and acting for both landlords and tenants.

Ros MonkManaging Associate, Property LitigationRos is an experienced litigator in the Real Estate department. She acts for a range of clients, from large property companies, to retail occupiers, to individuals.

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Alex BarkerAssociate, Construction"I once interviewed Shami Chakrabarti."

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Adrian de Mello Associate, Real Estate"I am a distant relative of Jane Austen."

Lucy LangleyAssociate, Planning"I used to coach triathletes and organise triathlons."

Krishnan PatelAssociate, Real Estate "I am a keen skydiver."

Victoria StansfieldAssociate, Property Litigation"I am a Spice Girls megafan. When I was 12 I wrote and produced several issues of my own Spice Girls newsletter!"

Catherine BantonManaging Associate, Property Litigation"I used to live and work in Romania."

Michael ClarkeAssociate, Property Litigation "I was once mistaken for an escaped convict at Rio de Janeiro airport and taken in for questioning. Thankfully they'd got the wrong man!"

Yvonne HillsAssociate, Property Litigation"I have visited twice as many cities as my age."

Heather MacIntoshAssociate, Real Estate"I am a keen open water swimmer."

Anita RiveraPartner, Head of Planning"I spent 10 years touring orchestras around the world."

Justine AytoLegal Director, Construction"I lived in Dubai for two years and my apartment was in the hotel that famously caught fire on New Year's Eve 2015."

Kate BradleyAssociate, Construction"When I was a teenager I was on a children's television show where I had to wear pig tails, dress up in a ridiculous outfit and serve breakfast to kids whilst wearing roller skates."

Emma HerrimanAssociate, Planning"I have sung a Swahili solo live on a London stage (and, no, I don't speak the language)."

Megan LudwigAssociate, Property Litigation"I used to swim for my province, in South Africa, when I was younger."

Tom RaweAssociate, Real Estate"I lived and worked in Nigeria on an international placement."

,

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Charlie Green (The Office Group) and Rob

Heasman (Lendlease)

Nick Searl (Argent) in foregroundHarry Downes (Fizzy Living) and Andrew

Teacher (Blackstock PR)

Martyn Evans (Uncommon) and Charlie Green (The Office Group) in foreground

Martyn Evans (Uncommon) and Patricia Brown (Central)

Richard McCarthy (Capita Property and

Infrastructure)

The Collaboratory brings industry leaders together to discuss the collaborations that are shaping our built environment. The debate was chaired by Patricia Brown, then deputy chair of the London Mayor's Design Advisory Group, to discuss key recommendations to set the conditions for successful growth in our capital city.

Mishcon de Reya co-hosted the Labour Party and Conservative Party Conferences 'Property Shapers' dinners with London Communications Agency. The theme for both dinners, "From town hall to Whitehall: will confrontation or collaboration mark the way forward?", proved to be appropriate especially given the current political climate. Guests included Deputy Mayor for Housing James Murray, Shadow Brexit Minister Sir Keir Starmer QC MP and former Housing Minister Mark Prisk MP. They were joined by council leaders, property developers and leading opinion makers to discuss the important role of collaboration between the public and private sector in facilitating property development.

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The Collaboratory PartyOur annual pre-MIPIM Real Estate Party, co-hosted with New West End Company and UK Trade & Investment (now the Department for International Trade) at Avenue Restaurant in St James's Street, Mayfair, drew around 350 of the industry's leading figures.

Brandon Lewis MP (Minister of State for Policing and the Fire Service (formerly Housing and Planning))

Nick Doffman (Mishcon de Reya), Gavin Winbanks

(DIT), Susan Freeman (Mishcon de Reya), Gary

Yardley (Capital & Counties) and Paul Marsh (DIT)

Ian Paul (Mishcon de Reya), Solly Benaim, Philip Olmer (AEW)

David Tomback (English Heritage), David Pearl (Structadene), Gary Yardley (Capco)

Nicholas Marks (James Andrew) and Charlie Green (The Office Group)Kirpal Kaur (Mishcon de Reya) and Hazra Ahmed

(Smack Holdings)

Ollie Barnett (Signia Wealth), Susan Freeman (Mishcon de Reya), and Carnegie Smyth (Signia Wealth)Jace Tyrrell (New West End Company) and Sue

Brown (London First)

Tricia Topping (Carlyle Consultants) and Rajeev

Singhal (London Chamber of Commerce and

Industry)

Robert Neill (Sir Robert McAlpine), Richard Gerstein (Mishcon de Reya) and Daniel Rowe (Jackson Rowe)

Tappei Shimizu (MC Asset Mangement), Ryuta

Takeuchi (MC Asset Management), Shinsuke

Imai (ARES) and Koji Sawada (ARES) Reza Merchant (The Collective) and Susan

Freeman (Mishcon de Reya)

Welcome to The Collaboratory

It’s business. But it’s personal.It’s business. But it’s personal.

How can a private client relax with an unrelenting stream of personal, business, and family pressures?

With an unrelenting lawyer.

We cover the traditional areas. And, uniquely, reputation protection, immigration, family offices, fraud defence, residential property and art. To know more, go to mishcon.com/ftprivate

Business | Dispute Resolution | Real Estate | Mishcon Private

MISHCON_FT_300x242.indd 1 23/07/2014 16:55

A successful property deal demands an expert knowledge of the law. But the best results come from an equally strong grasp of the human chemistry at play, and the ability to get everyone involved to work together. To know more, go to mishcon.com/realestate

A good property lawyer is very single-minded.

About collaboration.