November 12, 2019
In an unpredictable world where risk can be hard to quantify, let alone predict, Palmer Capital looks to frame all its strategies within a small number of bigger picture themes that typically transcend short term economic or political “bumps in the road”.
Follow these key themes for a less turbulent ride:
Population Growth & Urbanisation
With the population expected to grow to over 70 million by 2026*, the UK is, by some margin, the fastest growing amongst major European countries. Coupled with a now established global theme of urbanisation, this creates an increased need to house both the growing working and living population. The solution is large scale mixed-use urban communities which can achieve these goals in a sustainable and progressive way, through the re-development or re-purposing of urban “brownfield” land. Palmer Capital has been active in this space over the past decade, recognising an emerging need to create interactive, dynamic urban communities enabling employers to recruit and retain the best talent via a young and highly qualified workforce living close-by to take full advantage of the amenities of mixed use living.
Our Finzels Reach urban regeneration project in Bristol exemplifies this inclusive approach with office, retail, leisure, hotel and residential, all co-existing within an integrated scheme arranged over 4.7 acres in Central Bristol. This has been successfully delivered over the past eight years, bringing £275m of investment into Bristol.
Technology & Real Estate
The way we live and work is being shaped by technology at a faster pace than ever before. Real estate is not immune from this speed of change and those embracing the opportunities this brings will win. Palmer Capital are achieving this through current development activity across our portfolio. Office occupier densities have fallen from 1,150 sq. ft to roughly half this within the past decade, with flexi/co-working and stripped down retro-fit refurbishments and new builds shaping the way space is occupied and utilised.
The use of “Smart” building management systems which enable buildings to benefit as technology evolves is creating a gulf between older obsolete stock and new assets that are future proofed. Building design and how technology can be incorporated within this will be the difference between benchmark performance and out-performance moving forwards.
Palmer Capital is focussed on either wealth creation (opportunistic) or wealth preservation (core) strategies. Both follow closely the above macro themes in order to navigate a path through currently challenging times.
*Data from the Office for National Statistics
Author: Rupert Sheldon, Head of Income REIM at Palmer Capital