Speaking at The Movers and Shakers Property Breakfast Club Peter Walicknowski, director of strategy and business development at Land Securities, said that when he joined the company last year, there was a question mark over the future of the quoted property sector.
Walicknowski said: 'The challenge is to prove to old and new investors that the property sector can compete in a low inflation market and that returns will be good.
'This means the old model is no longer appropriate — we need to think about diversifying the investor base,' he said.
Walicknowski suggested the industry consider new strategies, such as minimising tax leakage, making property companies more attractive to offshore investors, outsourcing and adding value through property-related services.
Land Securities hit the outsourcing trail last year with the acquisition of Trillium — a deal that added the Department for Work and Pensions Prime contract to Land Securities' portfolio. The company has just completed a property partnering deal with the BBC.
According to Walicknowski, outsourcing could underpin the future growth of the sector and the sector itself should evolve from 'rent collector to partner'.
'There is now a momentum behind corporate outsourcing. But the private sector has yet to be convinced,' he said. Of his company's impending deal with BT, he added: 'BT will be a marker.'
On the subject of value-added services, Walicknowski said it was all about adapting to the needs of the customer. This, however, would present increased risk and would have to be managed properly, he noted. 'Property managers need to be good capital managers as well as asset managers.'
In the long term, Walicknowski predicted the downfall of companies that refused to evolve in the face of a changing marketplace. 'Some companies have chosen to give up the battle and go private. Others still haven't responded and will face an undignified demise,' he warned.
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The Facilities Business
