LETTER FROM LONDON (musing of a property investor)

Letter from London (musings from a property investor)

Dear UK Property World,

There is plenty going on in the markets at the moment. The political musical chairs aren't helping matters much but we are we stand, let's get on with doing our best, now this week.

My main message is to get your head up NOW and get on with what YOU can do, don't ignore the news but don't make it your focus other than brief "what's happening out there" BECAUSE it usually neither quite as bad as it seems nor will worrying about it be productive.

I'm a social impact investor and I am fortunate enough to spend time in the company of a wide range of people in all sorts of circumstances - inside third generation unemployed people's flats and quaffing wine with investment bankers at a Private Equity function.

It would be fair to say both of these groups aren't feeling like things are going as well as they would like.

The private equity function was on healthcare (which includes social housing and supported living).

The main speaker was (between the wine quaffing) was the Editor in Chief of The Health Service Journal with one of the most down cast outlooks (but well delivered) I have ever heard about anything (his topic was the state of the NHS in the coming year or two).

This was on a backdrop of the financiers having their bonuses in pieces after deals falling over in the past weeks...

The wine quaffing (only as an observer this time) with the unemployed lady in her early sixties whose Mum and adult children had never worked was equally downcast in her outlook, trying to figure out what to do as the foodbank she hobbles down to regularly is being stretched even further while her health is erroding fast.

I can see how it is easy when it all gets a bit tough to escape with a bottle of wine whether you are a banker or a bludger (and I don't begrudge either personally).

Many will pass judgement on either group (good or bad) but one of the McKinsey consultants at the heathcare bash was a bright young American guy who had changed his family circumstances coming from a very rough social housing project in Los Angeles - was very pro social justice and having a safety net in society.

His otherwise strong credentials were somewhat compromised by his slightly odd choice as he has joined numerous other sad-sack types as a Crystal Palace fan (they usually have some excuse, such as blaming their uncle).

And it would most definitely be fair to say neither group as a whole wishes the other particularly well (which is really quite sad), feeling a sense of injustice (like beauty, it is through the eye of the beholder).

We all make our own choices with investments, with spending and with ways of generating income both through work as well as investment.

I like to think that I'm giving it a go, my best shot (although regularly feel like I could have given more).

Part of this is an obsessive focus on building relationships and networks to create opportunity, connections, knowledge, access to deals, understanding of how things work from experts, connecting others without charge or expectation or obligation.

In the past two weeks I have been:

• in council offices
• council blocks
• partners in property in person networking meetings
• interviewing people like Adam Lawrence , Piotr Rusinek on my podcast
• listening to Rod Turner interview people on his
• reading reports on Health and Social Care from Marwood Group
• reviewing contracts for lease/purchase/consultancy/build works
• speaking with investment bankers about multiple current deals
• pitching to investors, private equity firms
• mapping out the merger of two social housing consultancies that will make a huge difference to all parties
• talking with property friends about their portfolios, what do as the rates shift
• watching Sarah Walker CIHCM and Christine Janaway FRICS firstly wow some property investors about a ￡10,000,000 uplift deal then have a centre stage in the private equity setting with healthcare capital markets people literally hanging off their outline of the social care sector and what the investment opportunities are
• putting together a blended debt and equity project for some overseas investors across three property businesses and analysing the underlying deals
• prodding my overqualified part-time analyst to finish a business model
• speaking with the nicest man in development Richard Little about his approach (note to self get him back on the podcast)
• booking into Richard Greenland 's one day property viewing course
• being taken to lunch at The NED by a couple of investors that want to buy more shares in one of our deals (their timing co-incided with second bottle being finished)
• following up with an accountant that brought a deal reminding him to get the autumn preventative maintenance booked in and get the plan to monetize the opportunity set in motion
• lunch with an M&A due diligence expert and a finance business owner about how to realise their value
• a beer with an old friend with plenty of great stories - he is miles more experienced with me (he is old)
• set up a meeting with a social housing fund manager (who while a fund manager doesn't know much about social housing)
• meeting some investment managers that haven't managed to invest in years...
• nominated a wonderful woman for the Liz Baitson BEM sponsored mastermind
• appointed a project manager for a big project and found out his family was from an area we have been struggling to get contractors for a block refurbishment AND he can help
• got invited to several dinners/awards/events
• been to see the wonderful people out in the Reading Property Meet Karen S. / Adam Vickers plus more (book in - I'm gutted can't make this month as have two-day road trip to North)
• found a five million plus deal that is looking like a 25% yield on total cost buying from some-one that has underinvested plus not changed their focus for so long they can't see the opportunity so just want an easy life and their money out (note deal filled with problems/opportunities risks). The trick will be setting the finance up correctly so everyone wins, looks made for 100% equity with limited partners, perhaps co-investors.

Anyway, life in London is good - yes the markets have changed but get on with it people - choose how to invest or spend your money and time.

Cheers until next time.

Will

podcasts to check out:

25% Uplift on cost DEAL SUMMARY with Piotr Rusinek

4 Ways To Grow YOUR Property Wealth in 2023 with Adam Lawrence

CAPITAL IS AT RISK IN ALL PROPERTY INVESTMENTS.

Will Mallard is a social impact investor focused on English housing portfolios.

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