Property Focus: The Interview – Mark Hawthorn

How difficult is it currently to operate in the property sector?

We have been very fortunate in that we switched asset class into ground rents as the market turned. Admittedly, this was luck rather than judgement. Since then, there have been a lot of new companies trying to break into our market who tend not to last. As for prices…

Looking into your crystal ball, what are your predictions for the industry over the coming months?

In general, I have noticed a change in attitude over the past few weeks from the banks and large developers.

One thing I have been pleased to note is that the vast majority of amateurs who tried their luck when the market was booming have almost all faded away.

This makes our day-to-day dealings a lot more straightforward as we are only now dealing with professionals. There is a willingness to do business and we have seen many people adapt in order to generate business for themselves or their companies.

If you could improve anything in the region what would it be?

As fantastic as Manchester has become there are still many improvements to be made in the wider Greater Manchester area – for instance,  the integration of the satellite towns, especially north of the city, into something more tangible than simply being bit parts in the Greater Manchester area. This is clearly not an easy task.

How does the North West commercial property scene compare to other regions in the UK?

With the clear exception of London, we are way out in front.

The schemes being developed and planned in the North West are far more ambitious than in other regions and once completed will enhance our position. You only need to look at Wirral Waters, Media City, Trafford Centre/Park, Co-op, Spinningfields, Liverpool One, First Street etc.

What has been your biggest business mistake / achievement?

I used to consider my biggest mistake was being too cautious in the early 2000’s before the market took off. However, in retrospect our sensible view on prices is what allowed us to survive.

Historically, we were big traders of property and had a core portfolio of rental stock. Although we did quite well, it wasn’t ever really a business  – more just me with a mobile phone, laptop and desk.

As we have evolved, especially with the move into ground rents, we have become a “real business” with thousands of tenants, a number of offices and proper staff, processes and structure.

I believe we now have a very robust model with multiple, unconnected income streams.

What is the best project you’ve been involved in?

Our field is niche one and has historically attracted negative press due to a small number of unscrupulous operators.

We took the decision early on to aim to build a recognised brand as the majority of our dealings are with very large housebuilders.

When we buy from them, their customers become our tenants and have to be treated with respect, despite them only being worth a small amount of money to us each year.

The feedback we get from developers and landlords we act for leads me to believe we are on our way to achieving this. This is most certainly an ongoing project which requires daily monitoring to prosper.

What drives you to be the best in your field?

I might not be here tomorrow so I need to make every day count.

Name the person who has most inspired you and the one who has had the biggest influence on your career.

My father died, very suddenly, when I was 19 and I quickly realised life is short and if you want anything to happen you have to get up and make it happen. This drives me on to achieve the best that I can.

I am, by my own admission, a little too tenacious and intense sometimes, which I am hoping will mellow with age.

What are the best and worst pieces of advice you’ve been given?

The best advice I was given was to start treating what I was doing as a business, which at the time I thought I was.

As for the worst, there appears to be a culture of failed business people who reinvent themselves as consultants and charge for their time and advice. I would prefer if these people used their experiences of losing money and companies to help others but instead they dispense advice which they have already proven doesn’t work.