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Posted on 18th December 2017 by Adam Mackrell

Monday, 18 December 2017

It seems a little strange to be writing the last post of the year it has gone so fast, on one level it seems that the last quarter only recently started and on the other Christmas is most certainly upon us.

So much has happened and it has been a good year with great success thus far for Oxford Spires REIF LP. Accounts are in on this one and we are sat at a capital gain of over 30% and a NET yield of just over 6% which; I am told is a very nice bit of festive cheer for our limited partners. Looking back this year we have achieved some of our core beliefs. We are still not charging full market rents to end users of our products – which means our occupancy is solid and additionally – now that – rents are dropping keeps our projections solid when many others are coming back not as good as expected (we are being polite)!

The end of the year does bring some other “endings” as such as Non Executive director William Addis is stepping back after helping guide us through the first three years and has proved invaluable, it has been emotional my friend. Nothing less than I expected after 25 years experience as MD of the number .1. private housing developer! His legacy here will live on and his contacts have now become ours too. Many, many thanks Bill!

I sincerely hope that all partners, suppliers and end users of our products have a wonderful end of the year and a very enjoyable festive period and thank you all for your support and business.

I very much look forward to continuing to deliver in as many areas as possible in 2018.

Adam Mackrell

Director

Oxford Spires Group

Posted on 17th November 2017 by Adam Mackrell

Posted on 4th October 2017 by Adam Mackrell

You cannot travel far in Oxford without coming across signs for “Beard”? This is not because the people here in Oxford have a fondness for facial hair… No, but because the well known construction company Beard is adding yet more beauty to the skylines of Oxford with a wonderful new addition to Oxford’s extraordinary array of buildings.

There is a lot to learn from Mr. Mark Beard who is the managing director of what is still family run firm going on past the 125 year mark. Upon a recent meeting i was keen to learn what and how longevity such as this can be achieved. The key thing i learnt was not that a great grandfather had been in the Guinness book of records or that another had been honoured by the queen for efforts during the world war but that the key is simple – to meet its promises and deliver to its clients satisfactorily and taking care of them. Taking care of something always seems to and should matter greatly. The best ideas are always simple ones! Beard’s latest work at Worcester college here in Oxford is a beauty and seems to epitomise all things that help to make this city such a beautiful and amazing place and most importantly where details are cared about. Like many buildings here in Oxford they have worked with an eye to posterity instead of short term gain.

I would like to think that we here at OSG look towards the future and medium to long term gain as opposed to short term gain and recklessness  – which seems to be the unspoken “motto” of many or our peers in our business of fund management. By paying attention to detail and taking care of our clients and the end users of our assets we can take great privilege in helping to build a sustainable and profitable portion of our clients portfolios with a clean conscious, peace of mind and a smile on our faces.

Welcome to OSG.

Director

Adam Mackrell

Oxford Spires Group

Posted on 12th September 2017 by Adam Mackrell

Tuesday 12 September 2017

After a lovely summer break with family and friends I learnt some good reminders about energy, commitment and enjoying life but also to try and create that same environment in a professional experience for both stakeholders and limited partners and the realisation that the results will take care of them selves.

I was reminded of children’s adeptness for play over the summer and it never ceases to amaze me. Playing is something they seem to do without anyone having to encourage them. They are, when given the chance to play, full of energy and enthusiasm, and know exactly what to do. This was obvious when watching my daughter and friends playing on the beach. Running down to the sea, back again with the buckets, over to the rocks with the nets and back again, aware of where each other is, avoiding contact here, dodging sideways there. Meanwhile, by the play area a beach ball appears. Teams form, the ball is thrown and caught, people join, people drop out – everything seems to regulate itself without or with very little adult intervention. I suspect at the heart of all this action is something hardwired namely that children seem to enjoy play of many kinds and it seems to me that in all aspects of work life we should try to create situations like this, where we all can enjoy everything that we become involved at OSG with each and every project and that our enjoyment will provide the energy and commitment which we need to succeed for our limited partners and stakeholders alike.

Of course every decent business should look at often; the way it communicates and how it communicates internally and externally but there is no question that if we can try and simulate, through good communication and through personal connections made between stakeholders and limited partners this enjoyment and engage fully with activities and projects, then we will create the satisfaction which will lead to the commitment necessary for real success. Of course sometimes we need to lean on our team, our partners and prospective partners in order to get them to complete necessary tasks and get in to action, but by far the best approach we can take to all aspects of our functions and responsibilities, particularly investment and security work, is to create the same conditions as those observable on the beach, an atmosphere of joyous activity and commitment based upon love of progress, growing and securing our futures. That ultimately will lead all of us here to achieve most both now and in the long term.

Looking forward to a strong, positive end of year ahead .

Adam Mackrell

Director

Oxford Spires Group

Posted on 8th August 2017 by Adam Mackrell

Posted on 19th June 2017 by Adam Mackrell

Since the Scottish referendum on independence on September 18th 2014, we have not had a straightforward election and one, which I recently spent; much of the night watching has been as extraordinary as the Brexit vote and the recent presidential election in the US, completely defying expectations. I wonder what our children think? I wonder if they are going to imagine that all elections are as extraordinary as the ones, which they have experienced over the past two and a half years. If politics ever reverts to the more predictable, will they feel cheated? Will they always demand high-octane elections?

Posted on 26th May 2017 by hellodesign

May has passed without much time to notice, maybe its all the school holidays? It has ended with beautiful weather here in Oxford and indeed most of Europe it seems. Oxfords beautiful and lush gardens are more evident than ever with the rain that we have had at the beginning of the month and in contrast the heat and sun ever since.

I hope that clients and partners can visit – those that haven’t yet – to appreciate this unique city and its beauty. Only here can you walk just a few minutes to tranquility and be so far away but yet so close to so much.

Thinking about that, further afield and close by there are common patterns in our favourite subject. In Australia recently Tim Gurner a major Australian property developer  said  – controversially – that millennials and even centennials are too busy wasting money and living the high life instead of saving to get on the property ladder and this is one of the majority reasons as to why getting on (the property ladder) is “harder” than it has been before – this is not just something we have been seeing here close by in the UK but further away, all around the world. We believe this comment has some substance but we believe it is not of course the whole story for our younger generations.

Are modern lifestyles unworkable with sacrifices and savings needed to be able to buy this asset class in the UK today?

We don’t think so but we have certainly experienced some of the evidence for this together with other research that suggests that a lot of the younger generational views are that there is less interest in owning land and property and ultimately its upkeep and expense and are more interest in living life on a more flexible and mobile basis for multiple reasons. Whether its streaming music instead of buying it or leasing or hiring a vehicle instead of buying one this pattern goes right the way through to property itself.

This is partly why OSG’s assets are set up so that end users can save through rents that are not too high while maintaining a more than reasonable return on investment for partners and at the same time being set up in a way where end users have those things that are important to them, flexibility in contract, space to be communal but also space to retreat when needed and relax, study and work.

Just like the beautiful city of Oxford itself, always around the corner is so much or so little depending on what you need and when you need it.

Adam Mackrell

Director

Oxford Spires Group

Posted on 26th April 2017 by hellodesign

I once watched a movie some time ago about two groups of people whose task it was to get to the top of a high mountain. One group was given a guide whose approach was perpetually encouraging; when the group started to lag she would paint a glorious picture of the top of the mountain and the triumphant feelings which would occur when it had been successfully arrived at.

The other group were given, as their guide, a burly ex – marine whose approach was punitive – if they didn’t get to the top they would have him to deal with.

Towards the end of the programme, we were shown a picture of the summit of the mountain devoid of people. As the camera focussed on the rocky scene, we heard in the near distance, the sound of group of climbers being berated by a furious leader and, sure enough, the first group to appear was the one which had been abused by their commander. The group which had been encouraged were by this point feeling totally discouraged as they learnt that they had been pipped to the top. I felt very disappointed by this movie as I had, until that moment, always believed that encouragement was a much better and more effective way to get people to do something than an approach which promoted fear.

One of the most important novels of the 20th Century, “1984” by George Orwell has as its central theme, the power of fear to control the minds of a population. Quite contrary to any notion that people are able to retain an independence from an authority however dictatorial, Orwell put forward the deeply depressing view that if people are made truly frightened, they no longer retain the ability to act independently. In fact, he contended, people are able to be controlled completely through fear. “1984” is the starkest and most effective warning to us of this…

Despite these two powerful examples, I do not believe that controlling people by means of fear or greed is the best way to encourage obedience or achievement. I have noticed that the people who have achieved most in life have been those people who have been genuinely motivated to do something. In my experience, it has been the love of an activity which has caused them to succeed in it. My nephew who most loves playing football is the one who has made most rapid progress from his brothers because he is always playing it and In a professional context I feel very strongly that our role as a fund manager and advisor to investors in that fund, as guardians of an element of their portfolio in our chosen asset class is to always bring common sense to the table and to keep what we do simplified and to respect and encourage all elements of our deals. By sticking to what we know and love and not being swayed by the headlines, by greed or by fear we can and do continue to progress and reach objectives – together with them (investors and end users) in a way where everyone enjoys the experience and the relationship and everyone has a return on their investment, their effort and their commitments.

Adam Mackrell

Director

Oxford Spires Group

Posted on 20th March 2017 by Adam Mackrell

As the clocks go forward giving us lighter evenings, we look towards what is traditionally a busy season in the world of residential property buying and selling here in the UK. However there is no doubt that this year the market will be subdued this spring and summer and we believe it will stand still in many postcode districts and will begin to retreat in some others over the course of the year.

Meaning OSG leverage increases √ Ear to the ground research value gains √

Letting agents – still feeling very hard done by after being told they can no longer rip off tenants with silly fees (like £200 to change a name on a contract?) are spared the rules on the Fourth money directive and customer due diligence (CDD) that the authorities are bringing in this year for estate agents (no more laundering of dirty money in – mainly London then). So to sum up buyers checked and landlords and agents not so!

Meaning OSG Policies in line with what is expected √

Many letting agents are raising fees this year for landlords to make up the shortfall of the easy money they have gotten all too used to and according to Home let 30% of all landlords will be raising prices this year due to an increased percentage grab of income from the letting agents… Well done Letting agents and landlords let’s pass on the cost – ultimately to the tenants again to prove what a great, sustainable business model you have?

Meaning OSG using in house agent, not charging tenants any fees what so ever and still being on average 40% less than high street letting agents with the same protections in place – a good wise move for our investors √

You’re not so humble OSG… I hear some say. Well yes, the line between humility and pompousness can easily be blurred sometimes but the line of honesty and openness trumps it all and to quote the great actor Samuel L Jackson in a great movie  “that’s the triple truth Ruth”!

Adam Mackrell
Director
Oxford Spires Group

Posted on 27th February 2017 by Adam Mackrell

As the winter slowly edges away in the UK there are green shoots appearing in the garden, in parts of the countryside and according to Phillip Hammond in the British economy. However we all know how easily data can be made to show what you want it to and although we wouldn’t for a minute suggest this has happened, we need to always keep in mind common sense, a commodity that often seems like rare earth metals.. In short supply.

Global financial and currency markets are fluctuating as one would expect in “uncertain times” and Gold is doing rather well – depending on which perspective you look at it from. This is of course normal, in reaction to “Brexit” and the mainstream medias reaction to Donald Trumps government and policies…

Much more interestingly and much closer to home we have had the “whitepaper on housing” that we have been waiting for and it doesn’t disappoint see here.  Highlights include improving the PRS (private rental sector), the gathering momentum of the “build to rent” wave picks up strength and the – allegedly crucial – issue of tackling planning delays.

We haven’t heard much of some other important factors in what we hope is not too narrow an argument like sufficient land needed for something also important – namely food and agriculture security, shortage of skills in the building sector to build what is needed, other planning issues like community and neighborhoods and the fact that once people actually get a property they generally don’t want anyone to build any more, anywhere near them… And strong human rights laws that they can use to stop this from happening to name just a sample.

The UK rhetoric is finally shifting from home ownership and back towards the pre 1950’s cycle of majority rental and even further back towards the new “version” of landed gentry.

It is worth remembering that the fundamentals underpinning the residential housing market here are still many years from being resolved – namely the supply and demand imbalance.

We believe the UK and this market is still a safe haven for investors looking for a protected place for a part of their portfolios and invested in the right way – the OSG way – will appeal to investors looking to reduce their exposure to uncertainty and help obtain what they need in the medium term.

Adam Mackrell
Director
Oxford Spires Group