The Executive Director Development for Grosvenor discusses the challenges facing the development sector and explains why she’s suspicious of architects who are unable or unwilling to acknowledge their own weaknesses and strengths.
Anna Bond, Executive Director Development, GrosvenorÂ
What’s your role at Grosvenor?
I’m the Executive Director Development for Grosvenor. In the UK, we’re best known for our property business where we act as an investor, developer and actively manage a range of locations, including in London’s West End and Liverpool. My team carries out the development management, executive project management and leasing functions for our development projects. Across Mayfair and Belgravia, we currently have 20 major schemes, delivering 900k sq. ft (GIA) of space with a GDV of c£1bn. One of the things I most enjoy about my role is that in addition to the real estate side of things, I’m actively involved in all aspects of the business. I love the people aspect of how you get an organisation to really perform.
What attracted you to the company?
I joined 15 years ago, and while it is a very different place now, the things that really attracted me have been maintained; our passion for creating great places and understanding how architecture is a key part of that, and developing superb assets in the heart of a global city. We have always been passionate about the communities we work with and having a positive environmental impact, and this has only become more important.
What are the main challenges for Grosvenor right now?
London has changed significantly since the pandemic. While there is still strong demand for Grade A office space, we know more generally office occupancy is still adjusting. This has a big impact on retail, restaurant, and leisure businesses. With the economy in a low growth period and uncertainty on when it will rebound, businesses are cautious about expanding. Having said that, we are still seeing competitive demand for space and vacancy rates across the London portfolio continue to sit well below prime central London averages.
Environmental issues are obviously a priority. We’re investing £90m to retrofit our London portfolio, almost all of which is in a conservation area and includes 1,500 listed buildings. Improving the performance of these properties is not only crucial from a climate change perspective, but also for us as a business. They need to continue to be commercially attractive places to live, work and spend time in.
Balancing the need to preserve their historic character while also improving their performance is a challenge. I would say national planning policy is currently too focussed on preservation and not enough on the need for these buildings to adapt to mitigate climate change. Policy that better balanced these two considerations and cut bureaucracy would greatly accelerate the rate at which we can deploy this capital and reduce carbon emissions.
Closely related to this is the skills gap in the heritage retrofit sector. This is a big challenge for the whole sector. Our own research has shown that the UK needs 205,000 people with the right skills focussing solely on retrofitting historic buildings between now and 2050 if the UK is to meet the UK’s net zero targets. Currently the UK only has around 100,000 people with the right skills. Our challenge around this has only just started.
Additionally, just like other developers, construction costs continue to be a significant challenge and the investor market is weakening. While both of these impact returns negatively, we have a long term view and try to look through cycles when making our investment decisions.
Grosvenor is targeting BREEAM Outstanding, WELL Gold and Wired Score Gold certifications for its Holbein Gardens project in London
What are you doing to improve the carbon credentials of your projects and what is your attitude to retrofit versus new build?
Environmental performance has been a key focus for Grosvenor for some time now. We were the first European property company to have both our short- and long-term carbon reduction strategies ratified by the Science Based Targets Initiative. By 2040 we will reduce our carbon emissions by 90 per cent and by 2050 we will be a climate positive business. To urgently transform how we make and manage our properties we have set ambitious goals for our developments for 2030.
We have created a Sustainable Development Brief, which is open access and sets very stretching targets for carbon, water, waste, and biodiversity. This helps our design teams understand what is required. As I mentioned, we’ve made improving the environmental performance of our existing buildings a priority. We are on track to have retrofitted 1 million sq. ft of homes and commercial space in our portfolio by the end of this year.
On the retrofit vs new build question, I always start with the presumption that we will retrofit and reuse as much of the existing building as we can. But it’s also important to take a broader sustainability view of each project to ensure the right balance across social and environmental benefits. Our first net zero office development at Holbein Gardens has been a great illustration of how an existing 1980s office building can achieve new build standards with the right approach.
How do you choose which architects to work with?
For me, it’s absolutely critical to work with architects whose sweet spot is the type of project you are actually trying to resource. That may even involve more than one architect over the course of the project. An architect who can convey the benefits of your scheme to local stakeholders may not be the same one who can design a bathroom in a super prime apartment.
What is the one thing an architect could say or do that would make you disinclined to work with them?
When architects say they do the full suite! Listed buildings, new-build towers and all sectors – they can do it all; it makes me nervous. I love working with practices who know what they are excellent at.
What is the secret to getting an architect to produce their best work?
Build rapport with their team and really explain what you are trying to achieve. Their best work will come from a deep understanding of your expectations. A written brief is one thing but explaining what you are passionate about and what great looks like from a whole project perspective rather than just a narrow architecture view is critical to get the best out of the team. I am passionate about the end-user experience and how that informs design. We develop offices, residential and retail, and more recently serviced offices. Understanding what the end user wants is so important; sometimes it’s the small things like a socket for a Christmas tree in an office reception, other times it can be more fundamental considerations, like how to ensure a building is designed so it is accessible for a diverse range of people.
What keeps you awake at night?
I’m very lucky I sleep pretty well. I recommend taking magnesium before bed to anyone who will listen!
What’s next for you?
We are hoping to start our South Molton Triangle development towards the end of the year, in joint venture with Mitsui Fudosan UK. It is directly opposite the western entrance of the new Bond Street Elizabeth Line station. It is designed to be net zero carbon in both construction and operation, the two acre, £500m mixed-use scheme will retain the unique character of Mayfair, while delivering new spaces, integrated into animated public realm. I can’t wait to get it going, I hope it will attract a broader demographic to Mayfair though a great mix of occupiers.
The new buildings forming part of Grosvenor’s South Molton Triangle mixed-use, commercial-led development in London’s West End will produce 37 per cent less carbon than ones built to current UK standards
What is the one thing an architect could say or do that would make you disinclined to work with them?
A very good question! I think for me what is vital is the architect that we work with has a passion and enthusiasm for creating something magnificent that will stand the test of time. We love an architect to come with passion, energy and a huge amount of creativity. A firm that is constantly trying to push the envelope and do something unique and special. Those are the architects who create listed buildings of the future and those are the architects who create buildings which make peoples’ lives better, and that align perfectly with our vision also.
What projects do you have in the pipeline and who are you working with?
One of our latest projects is the redevelopment of an old house on Bishop’s Avenue into a magnificent collection of apartment buildings all set in two and a half acres of beautiful gardens. We are working with Pilbrow & Partners on this one – Fred Pilbrow and his team have been a joy to work with. The passion and enthusiasm that Fred brings to every meeting is infectious and I think the scheme will break all price records when it is delivered in a few years’ time, as the quality of spaces we are producing is remarkable. The spaces are coupled with exceptional amenities, outdoor space, parking, a pool and a state-of-the-art gym which will make it highly popular with residents.
This is just one of the many projects we are working on and we always try to use the very best architects in the world today. I am often amazed by the creativity and brilliance of some of the young architects making a name for themselves, and it is a profession I hold in the absolute highest regard for the positive impact it has on society and to the places we eat, work and live in.
