The launch of specialist real estate advisory business Mount Kendal will plug a significant gap in Sandaire’s proposition and the family office believes it can become a key source of new clients.
Mount Kendal was established late last month as a joint venture between Sandaire and property consultancy Delancey. The new firm will provide a range of services from identifying direct UK property opportunities, to development and asset management.
Alex Scott (pictured), chairman of Sandaire, said that rather than launching an in-house property division, partnering with an existing specialist in the field would ensure the offering is much better resourced.
‘We’ve known and respected Delancey for quite some time and we’ve had a lot of conversations and reflected on opportunities. We haven’t been able to facilitate direct property exposure for our clients so at the moment our clients get access through LLPs or funds,’ he said.
‘Through the joint venture we’ll have the necessary breadth and depth of expertise to fulfil direct property investment. We know there are families, some which are not necessarily clients yet, who want access
Delancey will be the majority shareholder in Mount Kendal, based on the level of resource it is committing to the business, with Sandaire effectively acting as an introducer.
Paul Goswell, managing director of Delancey, said: ‘This is a broadening of our platform and like all good business ventures, it is demand-led. The demand comes from the importance of private and family wealth in the property market.’
Mount Kendal, which takes its name from the seat of the Scott family’s former business, Provincial Insurance, will initially only provide advisory services on UK direct property, but this could be expanded in time.
However, the domestic market retains its attractions to international clients, with Goswell pointing out that three quarters of the property transactions in London last year were carried out by overseas buyers, with Asia in particular a strong source of demand.
Scott added: ‘We are starting to talk to people about this now and with us having an office in Singapore, it will be interesting for us to engage with local families.’
Goswell noted that despite the concerns around Brexit, core defensive assets, such as well-let London offices, are in demand, although he said the more risky development market is more muted.