In the days since the exposé of the behaviour of some guests at the annual – and now defunct – Presidents Club dinner, property has found itself firmly in the limelight. In reaction, people and firms across the industry have started to stand up for change, pulling their backing for firms embroiled in the scandal and pledging their support for real, culpable progress in diversity and inclusion.
One of Canada’s biggest pension funds, Ivanhoe Cambridge, announced this week that it would no longer be investing in Bruce Richie’s Residential Land as a result of the Presidents Club news.
Ivanhoe Cambridge first teamed up with Residential Land in 2012 alongside Apollo Global Real Estate for a £100m fund and then again in February 2015 with a £650m jv.
It said this week that it had been “deeply troubled” by the behaviour reported at Presidents Club dinner – Richie is a trustee and co-chair of the Presidents Club charity dinner – and that those behaviours were “clearly unacceptable and contrary to our core values as a global institutional investors”.
Alongside commenting on its distaste, the pension fund said it had stopped future investments with the company.
A spokesman for Residential Land said: “Ivanhoe Cambridge has decided to pause on making new investment purchases at this time. We fully understand the reasons for this decision. This decision does not affect our existing portfolio. Residential Land has many partners and a variety of funding lines as we continue to manage and grow our portfolio.”
Thinking differently
The firm declined to comment, however, on whether the reporting of the Presidents Club events had caused Richie to think differently about events he had been involved in or attended, or how he intends to stand up for greater diversity and inclusivity in the real estate industry.
Members of the real estate community have been more forthright in their responses to the well-publicised behaviours at the Presidents Club dinner, with pledges to EG across social media and via comment pieces to stand up for change.
GVA chief executive Gerry Hughes said the industry’s reaction to the events at the Dorchester must be one of action, not just words.
“We must move beyond the polished rhetoric of well-meaning and carefully worded policies, and start taking direct action and driving change,” he said. “We must get into schools and encourage people from all backgrounds to join the real estate sector. We must make it straightforward for women to rise through the ranks to senior management positions, and we must open our minds to the enormous value of people from different ethnic and social backgrounds, as well as different professions, working in real estate.
“For those in positions of responsibility, my message is very clear: when you have the chance to make a difference, make it.”
The British Property Federation has also publicly condemned the reported behaviours.
Chief executive Melanie Leech said: “The behaviour reported to have taken place at the Presidents Club charity dinner is totally unacceptable. I and the BPF condemn it on behalf of our member companies across the breadth of the property industry.”
“We will probably never know how any individual behaved on the night of the President’s Club dinner,” she adds.” What’s important is to use this as a stimulus to all of us that we need to redouble our efforts to effect change across the whole industry over the long term.
“The BPF’s focus is on delivering on the Statement of Principles we published last year, drawing on the commitment and leadership being shown by many of our members who are driving positive action within their businesses to create a more diverse and inclusive industry.”
The principles state that as the “voice of the real estate industry”, the BPF has a role to play in fostering an environment that promotes a culture of equality and inclusion, and which attracts the broadest range of talent from all parts of society.
“We will use our voice to influence change,” state the principles, “and to support our members in sharing best practice across our sector. We will lend our voice to those under-represented to achieve greater diversity and inclusion within the industry.”
However, with a number of property companies led by those named as attendees of the Presidents Club dinners, including Residential Land, being members of the BPF, should the group be reacting more strongly, creating a code of ethics or conduct that members must adhere to?
For Sue Ralphs, managing director of the Ethical Property Company, the highly publicised events of the Presidents Club dinner could be the catalyst that enforces more widespread ethical behaviour and investment.
The time has come
“Perhaps now at last our time has come,” said Ralphs. “Larger investors will see the merits of an explicit values-based working environment. Property investors will value the strong tenant landlord relationship, the focus on the environment and the fair employment practices, to name just a few of the factors that have led to high occupancy levels, loyal tenants and green buildings.”
Taking action and making a difference can come in many forms. It may be refusing to talk on non-diverse panels or engage with companies or people who cannot demonstrate their adoption, from the top down, of a legitimate diversity and inclusion agenda, or stopping investment, but it needs to be something.
And for Leanne Tritton, managing director of communications agency ING, it needs to start today.
“You probably already know who the dinosaurs are in your team,” she said. “You have watched them in professional and social situations and they have made you cringe. Start moving them out. Today. They are a liability and no amount of training will change them. Safeguard your company reputation by taking proactive action.”
