Next Generation Student Living

I’ve just got back from London after attending the LD Events Student Housing Conference at the Congress Centre. I’ve been to this annual property conference for the last four years. This year however was slightly different as I was asked a few months ago to deliver a talk on ‘Design and Innovation‘ in the sector. This was a great opportunity for me and Lewis and Hickey to demonstrate our extensive experience and understanding of this impressive and mature asset class.

We have delivered over 11,000 bedrooms to date and have around 5000 bedrooms in development. These are pretty big numbers for us and it puts us in a small group of other Architects who have delivered this much.

P1Last night we had a great dinner with close colleagues from Jones Lang LaSalle, Savills, Interhospitality, HG Capital Investments, Balfour Beatty, Regal Property, Kaplan Colleges, Bouygues/ ULiving and Campus Living Villages. It was a good blend of people and backgrounds, with some informed and stimulating discussion on current opportunities in the sector.

The mood at the conference was pretty upbeat overall. The sector has been a bit ‘down’ following a perfect storm of challenges in 2012 which resulted in a reduction in student numbers and occupancy. For the sector this was a worry as suddenly national operators were reporting 85-90% occupancy when 98%+ had been the norm for a number of years. In the wider context, these dips were minimal, especially when you consider 100% asset voids in retail, industrial and office at present. Student Living is still attracting growing and significant investor interest with strong yields to be enjoyed.

The other big news, and recurring discussion today, was about Opal’s recent demise. I blogged about Opal a few weeks back (click here to see it). It was really good to hear both Bob Crompton and Charles Marshall reinforcing that Opal is/ was a strong and well respected business, and that their assets have never been distressed. Their problem was around their funding model and there was a genuine disappointment that Opal have paid the ultimate price. The impact of Opal seems to be strengthening the sector, rather than compromising it as some people were concerned about. Their operator brand strength though has suffered because of all the media coverage. As a result; Universities, Parents and Students will probably avoid Opal accommodation this coming year. This is unnecessary, but people will have their view on this. It was also good to see so many (ex)Opal people at the conference, all still working in the sector in different ways.

In my talk I focused on Branding and “student experience”, the evolution of interior design ideas/ products and the progression of design quality in the architecture. Student Living design has changed significantly in recent years and I believe we are now firmly in a second generation of design/ product.

Following my talk, I was a little overwhelmed by how many people acknowledged and thanked me for my summary. I didn’t anticipate this and I was humbled by the kind words. A couple of people have asked me for a copy of the presentation so I thought I’d post a link to it on here.

CLICK HERE TO VIEW MY PRESENTATION (it’s 7mb and in PDF format).

It was good to see so many close contacts at the conference, the sector has a real property ‘community’ and I feel privileged to be part of it, both personally and of course for my business Lewis and Hickey Architects.

In conclusion; it was a great event to be part of, and of course even better to meet many established contacts and also make some new ones. If you are looking at Student Living development and need some advice, or want to explore some design ideas, please don’t hesitate to get in contact with us. Some of our recent projects can be seen here.

You can also contact me directly by email nick.riley@lewishickey.com, I’d be delighted to talk to you.

Lego. Six decades and Building

My three year old daughter has recently discovered Lego. I remembered I had an old box of it in the loft and she loves playing with it now. I loved Lego; it may well have been an early influence in my career as an Architect. The principle of Lego, in relation to architecture, bears many similarities – especially today, where we are increasingly constrained by standardised components. I have also recently been reminded just how painful it is to stand on one of those minute pieces of Acrylonitrile Butadiene Styrene!

Lego has an impressive history – especially for a toy; which more commonly tend to come and go with children’s trends. It was founded, and is still manufactured, in Billund Denmark. Its roots go back to wooden toys built in the late 1800’s, but the plastic Lego bricks we know today have been around since the late 1940’s. “Lego” comes from the Danish phrase leg godt, meaning “play well”.

Legoland LondonThere is a Legoland theme park in Windsor, but I didn’t realise that there are two more in America, one in Germany, one in Malaysia and, of course, one in Billund. Windsor also has a Lego Hotel. In theory this surely has the potential to be an amazing building, but the reality is a real disappointment – imagine a Travelodge with a Lego clad entrance.

Lego remains a huge and diverse company. The limitless range of different assemblies ensures it can keep producing new ideas. It’s a globally recognised brand and turned over £2.65bn in 2012. It’s probably reasonable to assume that most people in the UK have owned/ played with it at some point. Lego believe that they have produced some 600 billion Lego elements to date.They currently produce approximately 36 billion elements per year. If all the Lego bricks ever produced were divided equally among the world population, each person would have 62 Lego bricks! Its also been said that Lego produces the most tyres in the world – small ones of course! They produce 318 million tyres a year, nearly half of all Lego sets feature tyres on them.

Lego Volvo XC90There have been many one-off constructions using Lego, these include; a full sized Volvo XC90 car and several towers, one reaching 32m high (around 9-10 storeys!) and utilising 500,000 bricks. In 2009 James May built a Lego house – as in a full size one. It was an impressive achievement, but not a great looking dwelling – hence why it was later demolished.

Lego people (or miniFigures as they are called) have become very popular in their own right. Last year, while at the Olympics, I saw a superb cutaway model of the Olympic stadium using 100,000 bricks, all the seats were then filled with 10,000 individual Lego people. Impressive!

Lego Olympic StadiumIn 2010 Lego launched a new sub-brand (I’m amazed they haven’t done is sooner). It’s called ‘Lego Architecture’. These are models of famous buildings/ landmarks from around the globe. There are eighteen models in the series now which includes; The Empire State Building, Solomon Guggenheim Museum, The Sydney Opera House,  The Burj Khalifa and Big Ben. My favourite is probably Le Corbusier’s Villa Savoye house in Poissy on the outskirts of Paris. Take a look at the Lego Architecture collection, click here.

So Lego has enjoyed six decades of building. Its an impressive story. I hope Lego has many more years of evolving and will continue to inspire children with simple, creative and imaginative play.

Nottingham can’t see the wood for the trees…

I have worked for Lewis and Hickey Architects in Nottingham for over 13 years now. I like Nottingham a lot (even though I grew up in Derby and still live there now). In my early years working in the city I always perceived Nottingham to be ambitious and leading – especially as it’s the largest ‘urban area’ in the East Midlands (Leicester is the largest city). However in recent years I think it’s lost its way a bit, and this view seems to be shared by a growing number of fellow property professionals I talk to. I’m now the managing director of our Nottingham office and therefore have a very strong interest in the city’s economic growth and property investment/ development.

monopoly_NottinghamWhen you consider what Nottingham is ‘famous’ for, there are many positive things, but how relevant are these today in terms of promoting the City?

  • Robin Hood and Sherwood Forest
  • Nottingham Castle and the Caves
  • Its Retail offer (?)
  • Two Universities
  • The Industrial Revolution and Lace Making
  • Bicycles (Raleigh cycles)
  • Tobacco manufacturing
  • Boots the Chemist
  • Trent Bridge Cricket
  • Torvill and Dean (and the national Ice Centre)
  • Goose Fair
  • A football club (with a sorry looking stadium)

Attracting people to Nottingham is very important on many levels, not least of which to promote inward investment for our economy and employment. Of the brief list I’ve stated above, I don’t believe many of those headings are properly celebrated in terms of the city’s offer. A couple of exceptions would be the two Universities and Trent Bridge Cricket Ground who all work hard to progress and support the city in different ways. In fact the University of Nottingham’s Jubilee campus continues to expand (on the old Raleigh cycles manufacturing site) and is a showcase for contemporary learning facilities and architecture (including our Si Yuan New China building). Nottingham’s 60,000 strong student population brings diverse and significant economic benefits to the city – from all over the world! Is this properly recognised?

It’s very easy to come to Nottingham and not really get any sense of Robin Hood or the Castle/ Caves – is this a good thing or a bad thing?

Nottingham’s major manufacturing focuses on Medicines, Cosmetics and Tobacco. Other big employers include Experian, Capital One and E.ON UK. The largest employers are public sector based – this can’t be sustainable?

Compare the above with neighbouring Derby who have a strong focus on “Planes, Trains and Automobiles” through manufacturing at Rolls Royce, Bombardier and Toyota. Derby is looking to lead innovation in these areas as part of their economic sustainability strategy, working in partnership with these companies and others.

Nottingham’s retail offer remains a historic thing I think. With both Derby and Leicester offering newer retail centres, the continued need for the Broadmarsh development to happen is hugely important and it needs to be impactful.

One positive thing that is emerging from the City is the Local Enterprise Zone, called D2N2 (“The postcode to be at” according to Peter Richardson, the recently appointed Chairman of the LEP who I met recently). It will be located on the edge of the Boots site, to the south of the City. My concern with this is whether Boots might then further diminish its presence in Nottingham under its new American ownership perhaps? I genuinely hope that D2N2 does generate some positive progress for the City and, importantly, that is can be realised. Another ‘Eastside’ or ‘Broadmarsh’ that have largely failed to materialise to date would be disappointing.

Another good thing for the economy is the current Infrastructure investment. This includes the NET tram expansion and the long overdue A453 dual carriageway. Super fast broadband is also a must. Connectivity, both physical and digital, is fundamental. But you have to want/ need to go there.

I know all this sounds quite negative and I guess it is on the face of it. However, my point here is that Nottingham needs to move forward and I’m not so sure it is . It needs strong leadership and vision that will maximise promoting investment into the city. If I don’t really understand what Nottingham is about, then how are people who don’t know the city meant to understand?

I think the future focus/ differentiators that should make Nottingham stand out are;

  • The Universities (and their student population)
  • Promoting a stronger cultural message (More Arts and Museums; especially Robin Hood and the Castle). Create a new leisure destination – to complement a new retail destination!
  • Provide a stronger message as to why major employers should consider investing in Nottingham.

I will continue to support Nottingham in any way I can, I genuinely want it to positively address these concerns – that’s why I’m writing about it. However watching other regional cities move forward, whilst Nottingham lacks a clear message, will not provide a sustainable economic future.

The Opal Property Group Legacy

Opal Property Group are hitting the Press daily/ weekly at present as more and more of their SPV development companies are being put into administration. First to fall was the Construction arm of the business, Ocon Construction. There has been speculation over Opal’s position for many months, but I have resisted commenting too much to date. Until very recently we were working with Ocon on major projects at the University of Liverpool and Loughborough University.

Stuart Wall founded Opal and over the last 25 years has built the business up to 20,000 student bedrooms, amounting to a £1bn property port-folio. They are a major player in the Student Living sector alongside Unite, UPP, Liberty Living and others. Its no secret that they have suffered major financial problems over recent years with their lending facilities. The crux of the problem is that they have fallen into a trap where their property loan to values are in excess of 100% and the banks wont support them any longer. Despite the fact that their operational business is still strong and generates a lot of annual income, probably around £100m.

I have personally, through our business, worked with Opal since 2006 and our work with them became the platform that we have built our strong student living profile on. I know Stuart personally and have built many strong business relationships with past and current Opal people. I am therefore personally saddened by recent events. I wish everyone who remains part of the business at this time the very best for the future and I hope to work with some of those people again.

chettlesSo what will become the legacy of Opal?

From my perspective I am in no doubt that my work with Opal created a personal profile for me and our business in the sector. I would even go as far as to say that my career progression can be linked to Opal. Today we work with many public and private clients in the sector and have delivered around 11,000 student bedrooms and counting. Off the back of our sector profile I have been invited to talk at the forthcoming LD Events Student Housing conference in London on the 15th May. I will therefore always owe a debt of gratitude to Opal and their people, past and present. We continue to work with a number of people with previous links to Opal, and I am a firm believer in maintaining positive relationships with everyone I do business with. Profile and reputation are both hugely important, especially in these continuing challenging times.

The big question on everyone’s mind though is what will happen to Opal going forward. They are a high profile operator of Student Accommodation. Will their 20,000 beds be sold? Who will buy them? Is there an appetite to buy them? Could this potentially devalue the asset class in some cities/ regions? I don’t know the answers to some of these questions at the moment, but it will be important to understand what the wider implications of this will be.

The Student Living sector is in a time of change. Universities fees, entry requirements and affordability are key challenges the sector faces. The International H.E. sector is growing as well which is interesting and potentially poses a risk to the UK. I met Prof. Brian Cox last week at MIPIM and he was talking about the importance of our H.E. sector, in both academia and research. I believe the government need to focus much more on the economic value of Higher Education in the UK. It should be a key component to sustaining our economy going forward and at present the Government are not properly supporting this.

So we will see what becomes of Opal and indeed the wider Student Living and Higher Education sectors in the coming months. I wish Stuart and all of the Opal Group people the very best at this tough time and thank them all for some very positive business in previous years.

My MIPIM in numbers

Last week I was out in Cannes for the annual MIPIM property conference. This year I attended as part of the Manchester at MIPIM Partnership – an extremely well organised delegation of public and private sector partners, led by Sir Howard Bernstein at the City Council.

“Welcoming Lewis and Hickey Architects into the Manchester at Mipim partnership this year demonstrates how the City can achieve great exposure through collaborative working. It also shows that our team is a strong partnership which is inclusive. We want to engage with and support businesses who are established in the City, alongside those who are looking to increase their profile and grow.” Sir Howard Bernstein, Chief Executive, Manchester City Council.

It was a very successful week for me and I believe I achieved a number of key objectives. These were; to raise our profile in the Manchester property community, to spend time with colleagues from Team Nottingham (part of Invest in Nottingham) and to make as many new contacts as possible through one-to-one meetings and numerous events I attended.

Cannes2Despite some of the perceptions about MIPIM being all very nice on the Cote D’Azur, it is a tough week. I went with the sole objective of maximising outcomes – I think most people now go with this ethos. I did three back-to-back 18 hour days (from leaving my hotel to returning again). I don’t think I could have pushed myself much further. My feet/ legs took a battering.

Here’s a quick numbers overview of the three main days of the conference (Tuesday-Thursday);

  • Over 60 new contacts made.
  • 2 Breakfast events attended.
  • 2 Lunch events attended (one private).
  • 3 Evening Dinners (all private).
  • 5 Evening Drinks events attended.
  • 8 Private meetings held.
  • 5 Stand events/ sessions attended.
  • At least 25-30 leads to follow up on (most of which are project related).
  • High profile personalities I met included; Mayor of London Boris Johnson, Prof. Brian Cox, Tom Bloxham MBE, Nicholas Cowell (brother of Simon), Sir Richard Leese and Sir Howard Bernstein.

One of the highlights was listening to Brian Cox on the Manchester stand. It was a very smart move getting him involved as it attracted a lot of media attention. Brian spoke in a very informed and engaging manor; he’s a superb public speaker. He emphasised how important it is for the Government to invest more into leading innovation research, especially through our Universities. I think this is a very good point. You can see Brian Cox’s presentation at the link below (its worth a watch). I’m one of the two blokes at the front with a bald spot. I will refrain from naming the other one!

Click here for the Brian Cox at MIPIM video

Brian Cox

You can see all of the Manchester stand presentations and also a large section of photos from the Manchester events by clicking here.

So now I have the important task of following up the leads I have, to ensure we can realise value from being at MIPIM this year. I have already secured one major University opportunity from a meeting there, and have also been asked to look at another development opportunity.

MIPIM. Let the Business begin…

As you will know already if you follow my blog or @LewisandHickey on twitter, we are at (#)Mipim again this year. Most people who read this will probably also know what Mipim is, but for anyone who doesn’t; its the European annual Property conference. Its attended by around 20,000 delegates including, Investors, Developers, Agents, Consultants, Contractors, Local Authorities…and a few others! Its a big deal and is essentially three days of intense meetings and networking events. Its hosted every year in Cannes in the Côte d’Azur.

This year I am attending with the Manchester at Mipim Partnership – a delegation, led by Sir Howard Bernstein at Manchester City Council, which brings together 45 partners, mainly from the private sector. Its a diverse mix of companies and people – but all are here to discuss property and in true Manchester style, everyone is friendly, has a ‘can do’ attitude as is patriotic in promoting everything that is great about Manchester. Manchester really go for it at Mipim, they recognise the value it has – and this year is another impressive line-up. Click here to see the full line-up of the stand events. Tomorrow we welcome leading physicist Professor Brian Cox to our stand;

380416-briancox

“Acclaimed Physicist Brian Cox will bring international attention to opportunities for growth and progression across Greater Manchester during his keynote speech on the first day of MIPIM in Cannes.”

“The 15:30 (14:30 GMT) presentation at stand B1.00 will explore how the connections between people and places have the power to change the world. It forms part of a day of stand events focused on innovation and Manchester as a city that is leading the way and setting new standards across research, arts and entertainment, science and technology sectors.” click here for full press release.

Tim Hall from our London office is also attending Mipim this year to promote our London team/ work – especially our growth in mixed-use developments and retail led development. Tim is currently en-route to Cannes in a London Car Rally which will go over the Millau Viaduct tomorrow, before arriving in Cannes.

Also arriving tomorrow afternoon is the Broadgate Estates Cycle to Cannes team. I’ve been following these guys on Twitter and they have battled some rainy conditions as the 90 riders cycle the 1500km from London to Cannes. Joining them for the last leg of the ride is Mayor of London, Boris Johnson.

So as the UK battles another cold snap in weather, what does the outlook hold for Mipim? Well the weather here looks to be a mixture of sunshine, cloud and scattered showers. The same could perhaps be said for the property related economic outlook…I’m sure there will be lots of headlines emerging from Mipim in the coming days – its a strong platform for press coverage, especially to target International investors. However, the reality is that we remain in challenging times – especially in relation to property development/ construction activity. Having said that, the UK actually seems to be getting some positive press. I picked up a property journal today with a picture of London Bridge and a montage of huge new buildings behind it, with the headline “London’s Building”. According to CBRE, The UK led 16 other European countries in terms of Investment Activity for both Q3 and Q4 in 2012. This is reassuring, but as the title states; its very London centric.

So which sectors are people backing then for 2013? Industrial seems to be topping the asset classes across Europe generally, followed by Retail and then Offices. We’ll no doubt understand this outlook more over the course of Mipim.

I have a busy three days now, each one packed with meetings, key stand events, networking events, panel discussions, lunches and dinners. Most of my time will be spent at events with the Manchester team – these are mostly private access. You can see all the stand events on the website or the YouTube channel McrMipim. You can see my promotional video below where I talk about social media, tall buildings and our University work. Manchester is a competitive market, with some long-established and talented architects in place. However I firmly believe we have a strong offer and I’m keen to build new relationships whilst out here.

video

I will also be supporting, and spending time with, @TeamNottingham – these guys are promoting a strong message about Nottingham and the Enterprise Zone. They have some great supporters and I’m sure they will achieve a lot out of being here. I am hoping that I can help fly their flag with one of their T-shirts…

Mipim is not a race – its a marathon. You need to try and pace yourself. My objective is simple; to maximise outcomes from Mipim for Lewis and Hickey, this is serious business and I am focused on promoting our business and the regions we operate in.

Keep in touch with our progress by following us @LewisandHickey and re-visiting my blog…

New Formula one inspired cars

This week has seen some high profile new car model launches at the Geneva Motorshow. The supercar brands, it would seem, are merging closer and closer to Formula One design innovation and technology – this must be good! I’ve had a quick look over some of these F1 related models and thought I’d share some favorites;

First up is the McLaren P1 – the successor to the legendary road going McLaren F1 from the 1990′s (I’ve blogged about the new P1 previously, click here to see it). If money were no object I would buy one of these (£866k) and what an investment it would be as well. The previous version of this car is immensely rare and can trade for up to £10m!

mclaren-p1In second place; Ferrari have launched their top of the range successor to the Enzo and F40. Its is called the La Ferrari. As you might expect it is another contemporary interpretation of a beautifully crafted Ferrari. Its looks and sounds amazing. Take a look at the video here. It boasts a modest 963hp and has Hybrid technology, called HY-KERS. This adopts the F1 developed Kinetic Energy Recovery System to boost the power. The car has a lot of F1 inspired thinking in its carbon fibre chassis and bodyshell too, but to own (of even see) one might be a rarity as only 499 will be sold.

ferrari-laferrariIn third place, and to complete the top place of the podium…I should be talking about a Red Bull related car. Problem; Red Bull don’t actually make cars. They do however have a sponsorship tie-in with Infiniti cars (who?) They have been around for a while now and, in my view, are probably similar to Lexus. They have produced a ‘Vettel’ edition to further strengthen their brand link – it doesnt really shout F1 to me though…

infiniti_fx50One final mention is the quintessentially British (albeit German owned) Rolls Royce, and their new Wraith model (below), a 3-door GT/ Coupe car. This will no doubt have big road presence and exude luxury in every way. Take a look at the video here. Oddly, the doors open backwards. I sort of get this idea on the bigger limousine model, but why on this one? It seems clear to me that this is competing directly with the hugely successful British (and also German owned!) Bentley Continental GT, which is much better looking I think.

rolls-royce-wrath-14My lottery winnings are going on the McLaren P1; a British car, truly inspired by F1.