Tim Fry, Project Director at Moorfields Eye Hospital in partnership with UCL, talks about the importance of a holistic approach to the property development life cycle and how the RICS is supporting professionals develop the knowledge to support this approach
On May 25th 1961 President Kennedy said “I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.” On 20 July 1969, the Apollo 11 astronauts—Neil Armstrong, Michael Collins, and Edwin "Buzz" Aldrin Jr.—realised President Kennedy's dream.
In fact 20 July was the day they landed on the moon; they still had to explore and get back safely to earth which, thankfully, they did.
In order to do this a holistic approach was adopted, the end-to-end process was mapped (take off, fly, land, take off again, fly, land again), and a project enacted.
On a more terrestrial level, motor manufacturers have been running production lines for years. Now not only do they make cars, they also offer lifetime warranties. They have considered the whole life cycle, assessed the risks, and priced and delivered accordingly.
These manufacturers have recognised that decisions taken without a definitive understanding of the whole life cycle may lead to unforeseen challenges in the future. This also holds true for those of us who work in property: professionals must understand how each stage of the life cycle is linked, and recognise that all decisions taken have long-term implications for the value, performance and risk profile of an asset. We need to help the clients, end users, investors and boards by taking out the surprises.
In my present role I am responsible for managing the design, build, financing and operation of a new, fully integrated research, education and clinical care facility. This facility is to house the world’s best clinicians and scientists and will enable them to shorten the time from bench to bedside. The ultimate aim is to improve the eye health of patients. This is a once in a lifetime project for the hospital and the institute, so we have looked at a 60-year horizon to show the scale of the undertaking as well as its complexity and cost.
What is entailed? Buying and selling real estate, financial planning, tax treatments, advocacy to non-property professionals, fundraising support, design awareness, transport analysis, hard and soft facilities management, and viewing the building as an asset as well as a wrapper for the business to operate in so as to provide a better space in which to give patients the world class standards of care they deserve.
As Project Director, I don’t need to be an expert in all of this, but I do need to know enough to know when I am being poorly advised. I also need to be honest, to know what I don’t know and who to ask to fill the gaps, and to manage up and down to keep everything progressing at an optimal pace.
Executive Education
The RICS believe that the property and land sectors would benefit from learning the lessons from other industries and adopting a holistic approach to the property life cycle. For this reason they have developed an executive education course, written and delivered by practitioners, which will equip leaders with an in-depth understanding of issues relating to the effective management of real estate assets at all stages of the cycle.
Specifically the course will cover:
- Market analysis for real estate development
- Finance for real estate
- Project management
- Facilities and operational management
- Asset management
These technical modules are interwoven with the leadership and interpersonal skills professionals need to do their jobs and drive success for themselves and their organisations.