The momentous economic change of recent years has rewritten the rule book for UK property.
Power is moving from the old establishment to a new coterie of men and women, finding new ways of wielding it post-credit crunch.
The Estates Gazette Power List, a guide to the individuals exerting influence – through economics, politics and even reputation – is back for a second year.
Compiled by an influential panel of experts, it has ranked what we consider to be a definitive list of those exerting power across the industry.
The panel, comprising former EG editor and Evening Standard columnist Peter Bill, BPF chief executive Liz Peace, Credit Suisse’s European real estate investment banking group chairman, Ian Marcus, former Quintain deputy chief executive Nick Shattock and former Jones Lang LaSalle England chairman John Stephen, spent hours debating who (or what) is likely to exert the most influence on the UK market in 2012. Here’s what they decided
Leader of the SNP
Salmond has the potential to go down in history as the man who sparked the dissolution of the United Kingdom. His supporters in the Scottish business community, however, seem to be more keen on his drive for fiscal autonomy and general cheerleading for their country, rather than his desire to see an independent Scotland. The future of the Crown Estate may be a test case.
49 Mike Slade
Chief executive, Helical Bar
The original Captain LandAid, Slade has turned his role as president of the property industry charity into a vocation. For all his comic front, Slade still has a reputation for not being afraid to tell it like it is, planning being a prime example. The affable 63-year-old sailing fanatic also doubles as the Conservative Party’s property fundraiser-in-chief.
Managing director for Europe, Carlyle
Carlyle has big bucks to spend. Managing director for Europe Robert Hodges is busy sourcing opportunities for its third European property fund, which was launched in June 2008 and has raised €2.2bn (£1.8bn) of equity. It has invested close to €2bn in offices, hotels and student housing and is now embarking on an upmarket residential project in London’s St James’s after a deal with, them again, the Crown Estate.
Chair, Investment Property Forum
Property lawyer Howard is head of law firm Nabarro’s funds and indirect real estate team. In June, she will become the first female chair of IPF, an organisation respected for its objective and in-depth research into the commercial property sector, helping to improve the efficiency of property as an investment.
46 John Burns
Chief executive, Derwent London
Burns can add securing a prelet to Burberry, submitting plans for an Oxford Street redevelopment in partnership with Crossrail, and joining up with Grosvenor to redevelop 1-5 Grosvenor Place, SW1, to Derwent London’s list of credentials – and that’s just in the past five months. Burns proves again and again that his business is an important and stylish London player.
AXA Real Estate
Watch out for this experienced duo. Lopez has been chief investment officer of AXA since 2009 and has 25 years’ experience. Before AXA, he was CEO of Sun Real Estate. Kavanagh is global head of asset management and has 27 years of industry experience. She was previously managing director of real estate at Lazard.
Chairman, Cushman & Wakefield
Italian-American Sant’Albano is determined to boost profitability for Cushman & Wakefield’s 70% shareholder, the Agnelli family. He became chairman of the largest privately held real estate agent on the globe last year, having previously been chief executive of the family’s holding company, Exor. With news this week that much-needed talent has been recruited to C&W’s London business, early signs look good.
Chief executive, CBRE
White, 51, is chief executive of the world’s largest agent, with 31,000 staff, more than 300 offices and revenue of $5.9bn. Last year’s $1.2bn acquisition of ING’s property management division completed his mission to make CBRE number one in every service it provides – until the next opportunity emerges. The deal pushed CBRE’s total net debt back up, to $1.6bn, but means it has almost $100bn assets under management.
42 Pieter Hendrikse
Chief executive, EMEA, CBRE Global Investors
The former chief executive of ING REIM Europe played a key role in integrating the business with CBRE last year. There has been minimal fallout. The Dutchman now leads the rebranded CBRE Global Investors in Europe, where it is the largest property fund manager, with €28.9bn of assets under management, 15 offices and 650-plus staff.
40 The King’s Cross Consortium
The Argent-led King’s Cross Central Limited Partnership is well under way in transforming 67 acres of this once notoriously run-down area in N1 into an 8m sq ft mixed scheme. Tenants that agreed leases in 2011 include engineering firm Hoare Lea, while Google is thought to be in advanced talks for space. Just who will be next?
39 Bill Hughes
Managing director, Legal & General Property
Bill Hughes has overall responsibility for the influential LGP, which has funds under management of £9.8bn (as at end of 2010). It’s this and his chairmanship of the Green Property Alliance that makes him one to watch.
38 Peter Pereira Gray
Managing director of the investment division at the Wellcome Trust
As the man in charge of the investment decisions made by the £14bn medical charity, Pereira Gray has been behind some audacious property bids of late. The fund is currently bidding with the Berkeley Group to develop Silvertown Quays in the Royal Docks after its £1bn bid to take over the entire Olympic Park was turned down last year.
37 Alison Nimmo
Chief executive of the Crown Estate
In January, Edinburgh-born Alison Nimmo became the first female chief executive of the Crown Estate since it was created in its modern form in 1961. She joins after spending five years as director of design and regeneration at the Olympic Delivery Authority, where she was part of the bid team that brought the Olympics to London. The industry is excited to find out what Nimmo has in store for the Crown’s extensive property holdings.
36 Andy Haldane
Executive director for financial stability, Bank of England
Described as a “deeply invisible man”, Haldane is responsible for developing Bank policy on financial stability issues and is one of the key decision makers within the Old Lady of Threadneedle Street when it comes to issues affecting the property industry. He has a crucial role to play in setting interest rates.
Chairman and CEO, London & Stamford
Mould, 72, and Vaughan, 65, have a hard-won reputation for perfectly judging property cycles. The pair are in the process of selling their 50% stake in Sheffield’s Meadowhall shopping centre, which could fetch up to £1.6bn – not bad for something they picked up for £588m in 2009.
34 Gerald Ronson
Chief executive of Heron International
Ronson, 72, who received a CBE this year, is busy letting his new Heron Tower, EC2. So far, tenants include the Partners Group, City Credit Capital and Chicago Trading Company. The success of The Heron, his residential development in the City, may convince the Corporation to relax its resistance to homes in the Square Mile. His thoughts on the state of the market remain a key litmus test for the industry.
33 Michael Gutman
Managing director for the UK and Europe, Westfield
Last year, Gutman presided over the successful opening of the 1.9m sq ft Stratford City shopping centre. Since then, he has rolled up his sleeves in a bid to secure a controlling interest in the redevelopment of Croydon town centre. Elsewhere, Gutman is selling a trio of shopping centres to Hermes Real Estate as part of Westfield’s strategy to focus on the big stuff.
32 Ian Marcus
Chairman, European real estate, Credit Suisse
As property’s banker, Marcus’s is a trusted voice of 30 years’ experience. Alongside his day job at Credit Suisse, where he is responsible for leading the bank’s property-related activity across its asset management, private banking and investment banking businesses, he has a number of other key roles. Most recently, he became a non-executive director of the £7bn Crown Estate.
Portas, the so-called Queen of Shops, makes her Power List debut after she launched her government-commissioned 28-point guide to reinvigorate the high street three months ago. Housing minister Grant Shapps has been tasked with implementing it, while the first “Portas pilots” have been launched.
Chairman, John Lewis Partnership
Representing one of the UK’s most respected retailers, Mayfield continues to open more of the John Lewis At Home and flexible department store formats despite the struggling retail market. However, the industry was taken aback last year when the retailer pulled out of plans to anchor the Tithebarn development, forcing Lend Lease and Preston council to scrap the scheme.
Chief executive, Brookfield Asset Management
The chief executive of Toronto-based Brookfield has been dubbed the Warren Buffett of Canada. The company manages more than $100bn of property, renewable power and infrastructure assets and has a significant war chest. It is keen to spend in London, where it plans to extend its office portfolio to 5m sq ft and may look at corporate opportunities.
Managing director, Almacantar
Hussey is no stranger to significant iconic buys, snapping up the Marble Arch Tower, W1, and Centre Point, WC1, last year with backing from Italian giant Exor, among others. Described by the panel as “the next Gerald Ronson”, the former London head of Land Securities has been appointed development partner by Chelsea FC to work up plans for a potential move to Battersea Power Station. But a possible legal battle with the MCC over plans to redevelop Lord’s may be distracting.
Chief executive, Delancey
Like his father in earlier cycles, Ritblat emerged from the 2008 recession hoping to reshape the property industry with a plan to unwind distressed assets and develop ambitious projects. Last year, he led a consortium of wealthy investors to buy listed property company Minerva and successfully bid to develop the 2,818-home Athletes’ Village in Stratford.
Co-managing partner, Brockton Capital
Fittingly, given the current low in property lending, 42-year-old Marks will be the British Property Federation’s first president from a private equity real estate fund when he takes the helm next year. Marks co-founded Brockton Capital in 2005. He is busy spending its second £500m fund on assets such as Camden Lock market in north London.
Housing minister
After 11 years of Labour government, which saw nine housing ministers, Shapps’ five years covering the brief in opposition and now as a minister has been a welcome continuity. He has been popular with the industry, repealing Home Information Packs and promoting plans to reward councils for backing new housing through the New Homes Bonus.
Chief executive, Capital & Counties
CapCo is making real headway on its plans to transform Earls Court, bringing the Hong Kong-based Kwok family on board in December by selling a 50% stake for £65.6m. Hawksworth’s dream for a 1m sq ft redevelopment of the site now looks likely after the group received planning consent last month. Its Covent Garden Estate remains resilient, helping it to secure £300m of debt.
Chief executive, Hermes REIM
Taylor has been leading Hermes’ real estate division since 2010. It is one of the largest real estate fund managers in the UK, controlling £5.8bn of gross assets, including the BT and Post Office pension funds. Hermes has had a busy start to the year, taking control of three shopping centres from Westfield last month.
Chief executive, British Land
Former banker Grigg has been heading BL since 2009. It has been a tricky time for the UK’s second largest property firm, but Grigg has brought a steady pair of hands. With its London office development programme now 50% prelet, BL is powering ahead with schemes such as The Cheesegrater, EC3, and Broadgate, EC2, while Grigg will become BPF president later this year.
Mayor of London
Whoever wins May’s mayoral election will become the most powerful local politician in the country, with key planning powers and the new Mayoral Development Corporation in their charge. If it is Boris, look out for his chief of staff Sir Edward Lister, who will be doing much of the day to day running. If it is Ken, watch out for running mate Val Shawcross.
With Baroness Ford stepping down as OPLC chair this summer, the hunt is on for her replacement. Whoever it is will not only take charge of the 500-acre Olympic Park, E14, but a vast portfolio of surrounding sites and development opportunities because the OPLC is being extended to become the Mayoral Development Corporation from April.
Chief executive, William Pears Group
Much admired but seldom heard, great things are expected of Pears this year. He has the ear of the banks, Nama and, through William Pears’ outsourcing company Telereal Trillium, government. In a rare interview, he told Estates Gazette last week that the UK will be a difficult place to succeed in business in the coming years. Pears may prove to be an exception.
Head of real estate acquisitions, Starwood
Starwood Capital is expected to be active on both the debt investing and lending side in 2012. It has plans to raise a £1bn fund, targeting the provision of senior debt for non-prime property – a sector everyone knows is in desperate need for assistance but an opportunity few have taken up. Dishner relocated from Connecticut to London last August to increase the company’s European presence.
Chief executive, British Property Federation
Peace, a former civil servant, continues to act as a vital mouthpiece for the UK property industry, lobbying the government for policy and legislative changes. This year she is continuing her battle to help push through the National Planning Policy Framework, despite fierce opposition from groups such as the National Trust.
Chairman and chief executive, Canary Wharf Group
Knighted in the New Year, the charming Romania-born developer continues to shape the eponymous Docklands estate into London’s second financial district, buying the remaining interests in Wood Wharf, E14, from Ballymore and British Waterways in January. And, with interests now in the Shell Centre, SE1, and the Walkie Talkie, EC3, his influence extends well beyond.
Chief executive, PRUPIM
Appointed to head insurer Prudential’s £13bn property portfolio in January in the place of long-serving predecessor Martin Moore, Jeffrey has big shoes to fill. A former global chief investment officer for MGPA, his credentials look strong as he takes on management of the 279-strong team involved in redeveloping 30 Berkeley Square, W1, extending thecentre:mk and selling off Parkhouse, EC2.
Founder and chairman, Lone Star
Private equity fund management houses are enjoying fresh influence as the recession throws up opportunities to buy distressed assets for those with cash-rich backers and an eagle eye. Massachusetts-born Grayken’s $24bn Lone Star has been among the most prominent in the past 12 months, investing in both UK and German debt. He founded the firm in 1995 and is on the hunt for more deals.
Senior managing director and head of real estate Europe, Blackstone
Like Lone Star (above), private equity behemoth Blackstone is proving to be aggressively acquisitive, with billions at its disposal to invest in real estate. In the UK last year, Blackstone won the race to team up with RBS on the £1.4bn Project Isobel loan workout. Expect more of the same in 2012.
Chief executive, Great Portland Estates; BPF president
Courtauld was appointed GPE chief executive at the age of just 33 and this April celebrates a decade at the helm. Courtauld can celebrate with the thought that in the three months to December, GPE secured two major West End lettings to Savills and UBM, which helped to push up the value of its portfolio by 2.6%.
11 John Whittaker
Chairman, Peel Group
Whittaker’s deal to sell the Trafford Centre in Manchester to rival Capital Shopping Centres in return for a 20% stake in CSC is still talked about in property circles. It was another coup for the tycoon known for bringing the BBC to Salford and for the sheer scale of projects such as the £5.5bn Liverpool Waters. But its ambitious plans for Pinewood Shepperton hang in the balance after planning consent was refused.
10 Adair Turner and Hectors Sants
Chairman and chief executive of the FSA
Turner and Sants have the unenviable job of cleaning up the reputation of the banking world following its fall from grace through City regulator the FSA. And whatever they do will have a massive effect on UK property. In December, the FSA ordered banks to improve the way their internal models measure risk or switch to more standardised calculations – something that could lead to banks increasing the costs of loans and further restricting lending targets.
Chief executive, Land Securities
Noel, 47, takes the helm of Land Securities from Francis Salway at the end of March – several months earlier than many had expected when he came on board to head the London portfolio in 2010. Noel has said he plans to “inject a little bit of pace” into the UK’s largest REIT. Watch this space.
Head of real estate investment funds, China Investment Corporation
With US$410bn worth of assets, CIC is one of the world’s most active sovereign wealth funds – not bad considering it was established in only 2007. Guided by Lau, the fund has been involved in a number of high-profile deals, including backing Blackstone’s £1.4bn Project Isobel deal with RBS in December and participating in the 2009 rescue rights issue for Songbird.
7 Tony Pidgley
Chairman, Berkeley Group
The widely admired Pidgley, 65, cemented his reputation as the UK’s go-to housebuilder last year when he was hired by the government to lead an advisory group to investigate the release of public sector land. He is a member of the Regeneration Commission, spearheading EG’s Building a Better Britain campaign. Meanwhile, Berkeley, the firm he founded in 1976, continues to flourish.
6 Brendan McDonagh
Chief executive, Nama
A new entrant to the EG Power List, McDonagh has the task of managing down €72bn of loans transferred from five Irish banks in 2008-09 in what is a tightrope walk of commercial and political interests. The agency, which was created in 2009, has taken its fair share of flak for its slow-moving, bureaucratic structures, but continues to take steps in the right direction.
Planning minister
One of the key architects of the government’s controversial National Planning Policy Framework, the 44-year-old MP for Tunbridge Wells is seen as a rising star in the Tory party. Clark will have his work cut out quieting NPPF opposition from the shires as well as pressing ahead with the government’s Localism agenda.
Chancellor of the Exchequer
The politician with the most sway over the property industry is the man who holds the purse strings. Despite the parlous state of the UK economy, Osborne may well be able to give away as much as £7bn in next month’s Budget. And the chancellor has already received countless submissions and delegations from the industry hoping for concessions. What he does – and what he doesn’t – matters.
Chief executive and head of corporate real estate, Lloyds Banking Group
The Lloyds chief executive is a man whose decisions remain critical for the property industry, although he has fallen one place in this year’s Power List as the influence of the sovereign wealth funds soars. The 47-year-old Portuguese-born banker is this week one year into the job that makes him ultimately responsible for dealing with billions of pounds of legacy loans and toxic assets on Lloyds’ books. Richard Dakin is the man overseeing the restructuring of Lloyds’ £89bn global property loan book, which owes many of its problem loans to its 2008 takeover of HBOS.
Chief executive RBS and head of property RBS
The boss of the UK’s largest lender to commercial property has slipped one place down the ranks this year but his influence is still impossible to ignore. The former British Land chief executive is three years into a five-year plan to turn around the part-nationalised bank. He is making good progress: results announced last month show that the bank slashed 14% from its real estate exposure last year, which now stands at £74.8bn. He is joined in the Power List by fellow property alumnus Aubrey Adams, who in September was appointed head of property within RBS’s global restructuring group.
With Britain attracting $68bn (£43bn), or 17%, of the world’s sovereign wealth fund investment in the six years to 2011, the panel agreed unanimously that the world’s sovereign wealth funds represent the most powerful force in UK property in 2012. With bank debt scarce and many institutional investors cautious, the biggest competition these funds face is from each other. Their appetite for trophy assets in the safe haven of London, fuelled by the recent Arab Spring and the crisis in the eurozone, shows no sign of abating. And they are venturing outside the capital, too.
As well as CIC’s Lau (number 8), key names include Karsten Kallevig, who is global head of real estate asset strategies at Norges Bank Investment Management, and Qatari prime minister Hamad bin Jassim bin Jaber Al Thani, who has a stake in Qatari Diar, the country’s sovereign wealth fund.
In recent weeks alone, Malaysia’s Permodalan Nasional Bhd (PND) has been finalising a deal to buy part of £1bn KanAm portfolio in the City, while Norway’s Norges Bank is among those vying to buy a 75% stake in Sheffield’s Meadowhall shopping centre. The Qatar Investment Authority is about to buy One Cabot Square, E14, for around £330m, while in Stratford it is developing the 2,818-home Athletes’ Village with Delancey. And that is just a taste of the recent activity. Sovereign wealth cash is also seen as the most likely potential saviour for Battersea Power Station in south London, where the kind of long-term view they can afford to take will be essential.
