A change in consumer habits and investor appetite for more ethical

returns is driving a distinct evolution (or is it revolution?) in the

real estate industry.

Having attended numerous real estate conferences towards the end of

last year, I was surprised to learn that trust, contribution and

experience were becoming the key emerging themes underpinning real

estate at the moment. Where was the demand for yield?

Yield, as it turns out, is not to be compromised, but there is a

growing sense of responsibility in real estate and that requires trust.

Investors want to see that their money is actually making a difference;

genuinely contributing towards improving society. They care more that

they invest in a way that is sustainable and future focussed and this

cultural shift is evidenced by the rise in social impact investment,

smart buildings (which links to experience too) and ESG policies being

adopted by asset managers (even if they are notoriously difficult to

monitor from a compliance perspective – robust governance can help with

that).

As for experience, this theme reflects the changing way we want to

live, work and shop. If we do have to leave our homes to go to work or,

heaven forbid, go out and actually walk up and down the high street, it

had better be worthwhile. The quality of our overall environment and the

enjoyment we get out of the limited amounts of free time we have, are

more important than ever.

So how can we build trust in the real estate sector and in asset

managers in particular? A robust governance framework can help to start

with and it is essential to be operating within a jurisdiction where

there are high standards of governance, regulation and supervision. This

is why, at Ogier, we are anticipating a shift in structuring away from

the UK and into territories such as the Channel Islands, which are

renowned for their strong regulatory frameworks.

Despite the changing real estate landscape and regardless of the

sector, good governance means that you are able to manage risk better,

maintain a strong investment strategy and stay true to your investors on

the promises that you make – and Jersey provides excellent solutions on

all these fronts.

For more information get in touch with your usual Ogier contact.