Case Study for Real Estate
Written by: Ben Ingram & Samantha Williams
Our client was a well-established European Real Estate investor and asset manager, with their HQ in the Nordics but with interests throughout the Continent. The business had grown considerably over the last decade through M&A and, as a result, became a group with separate national entities.
The benefit of this was that origination of deals and servicing of assets and clients’ assets were done locally with those ‘on the ground’ who have strong reputations and considerable experience of their own regions. The challenge has been trying to bring the entities together in terms of best practices, processes etc. and making the most of the whole group in terms of cross selling, sharing of ideas and referral of business.
The new CEO decided a new group Head of Investment Management/CIO would help in this regard. With a significant track record and network (historic and current) across UK and European Real Estate, Armstrong has deep and long-term relationships with the appropriate leaders in Investment Management and so were immediately able to identify suitable talent, discuss the opportunity with them and compile a strong shortlist for the client to meet and, ultimately, select from. It was the speed of the process, the manner in which we approached the market and the depth of our industry knowledge and relationships that stood us apart from our competitors.
The reputation of the client being a slightly disparate group of separate operations across Europe was something that needed to be confronted with talent in the market. Armstrong spent time with the various stakeholders (group and entity level) to understand the reality and the opportunities so both could be communicated clearly and accurately to the market.
We were also up front and honest about the reputation of the business in the market – almost providing a reality check which was difficult for the client to hear but important that it was communicated. Considering the market conditions at the time and lack of investment activity in European Real Estate, it was important to ensure it was the highest calibre of talent that were considered as many individuals were looking for the right role in the next cycle.
There was a significant ‘pay gap’ in what the client was budgeting and what the market rate was for top CIO talent in Europe. Armstrong were upfront about this from the outset, and insisted that evidence would be provided to back the compensation we suggested to attract the appropriate talent.
The depth of relationship Armstrong has with the talent in the market meant these business leaders took time to listen, and trusted what they heard, around the opportunities. Armstrong’s Real Estate specialist consultants are taken by their word, giving clients access to talent that would otherwise be difficult to infiltrate.
Knowing the talent in the market as well as the Real Estate Team do, means the ‘best in class’ are already identified and in conversation with the firm, shortcutting the sifting process. It also means Armstrong’s knowledge about real time compensation and availability is unsurpassed.
