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A change in consumer habits and investor appetite for more ethical
returns is driving a distinct evolution (or is it revolution?) in the
real estate industry.
Having attended numerous real estate conferences towards the end of
last year, I was surprised to learn that trust, contribution and
experience were becoming the key emerging themes underpinning real
estate at the moment. Where was the demand for yield?
Yield, as it turns out, is not to be compromised, but there is a
growing sense of responsibility in real estate and that requires trust.
Investors want to see that their money is actually making a difference;
genuinely contributing towards improving society. They care more that
they invest in a way that is sustainable and future focussed and this
cultural shift is evidenced by the rise in social impact investment,
smart buildings (which links to experience too) and ESG policies being
adopted by asset managers (even if they are notoriously difficult to
monitor from a compliance perspective – robust governance can help with
As for experience, this theme reflects the changing way we want to
live, work and shop. If we do have to leave our homes to go to work or,
heaven forbid, go out and actually walk up and down the high street, it
had better be worthwhile. The quality of our overall environment and the
enjoyment we get out of the limited amounts of free time we have, are
more important than ever.
So how can we build trust in the real estate sector and in asset
managers in particular? A robust governance framework can help to start
with and it is essential to be operating within a jurisdiction where
there are high standards of governance, regulation and supervision. This
is why, at Ogier, we are anticipating a shift in structuring away from
the UK and into territories such as the Channel Islands, which are
renowned for their strong regulatory frameworks.
Despite the changing real estate landscape and regardless of the
sector, good governance means that you are able to manage risk better,
maintain a strong investment strategy and stay true to your investors on
the promises that you make – and Jersey provides excellent solutions on
all these fronts.
For more information get in touch with your usual Ogier contact.