#43 Stuart Mitchell, Managing Director, Group Property at The Jockey Club
Oct 12, 2023
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Stuart Mitchell, Managing Director at The Jockey Club, discusses topics such as his career journey in real estate, his role at The Jockey Club, transferable skills between industries, data-driven decision-making, and plans for business and property team growth.
The Jockey Club aims to diversify its revenue streams by developing complementary uses alongside its race courses, such as residential, hotels, and health facilities.
The Jockey Club plans to grow its property team strategically while ensuring developments align with the racing business and mitigate risks.
Deep dives
The Jockey Club's Focus on Real Estate Investment
The Jockey Club, one of the UK's largest race course owners, is looking to diversify its revenue streams and drive income from real estate. With a multi-billion pound portfolio and 15 race courses across the country, the Jockey Club sees an opportunity to develop complementary uses alongside its race courses. This could include residential, hotels, build-to-rent, senior living, and health and well-being facilities. The goal is to create communities and enhance the existing infrastructure to attract new audiences and retain existing ones. This strategic approach will involve extensive planning, securing joint venture partnerships, and obtaining planning consents. The Jockey Club aims to protect its core racing business while growing its real estate income to reinvest in the built environment.
Driving Income and Enhancing Race Courses
The Jockey Club's strategy is twofold: to drive income from real estate and invest in its race courses. By leveraging its built environment and developing complementary uses, the Jockey Club aims to grow its real estate revenue. While real estate currently accounts for a small portion of its overall income, there is potential for significant growth in the future. The plan involves formulating a real estate strategy, master planning each race course, securing leases or joint ventures, and obtaining planning consents. The Jockey Club recognizes the importance of protecting its core racing business while seeking opportunities to monetize existing assets and enhance its infrastructure.
Expanding the Property Team and Funding
To execute its real estate strategy, the Jockey Club plans to grow its property team. However, it will take a strategic and disciplined approach, ensuring that any development or expansion aligns with the racing business and mitigates potential risks. The Jockey Club may separate real estate operations from the core racing business by establishing new entities or property companies. Funding for property development will come from a mix of balance sheet capital and potentially third-party capital through joint ventures or leases. The Jockey Club aims to strike a balance between driving value from real estate and protecting its racing operations.
Data-Driven Decision Making and ESG Focus
Data analysis plays a crucial role in the Jockey Club's decision-making process. The organization has conducted research on catchments, demographics, supply and demand, and suitable use classes. This data supports strategic planning and helps identify opportunities for real estate development. Additionally, the Jockey Club places great importance on environmental, social, and governance (ESG) factors. By leveraging its existing community ties, engaging with local schools, and implementing sustainable initiatives, the Jockey Club contributes to ESG efforts. Balancing the financial success of its real estate ventures with responsible and sustainable practices remains a key focus.
People Property Place Podcast Stuart Mitchell – Managing Director, Group Property at The Jockey Club
The Jockey Club is one of the worlds most respected sports organisations host to some of the UK’s most prestigious races such as the Cheltenham Gold Cup and Epsom Derby.
Stuart is responsible for all real estate investment, asset and development management across The Jockey Club’s multi-billion pound portfolio.
Prior to this Stuart was a Director and Head of Third Party Asset Management at NewRiver REIT, and he started his career at BNP Paribas. I sat down with Stuart to discuss a broad range of subjects which covered some of the following topics:
How he got into real estate
Early career moves
Why he moved to the Jockey Club
Asset class transferable skills
Managing work / family life
Opportunities in the portfolio
Growth plans
Managing risk
Oh, and one last question - who are the People, what Property, and in which Place Stuart would invest should he have £500m of equity at his disposal. Catch the full episode which will be live on Spotify, Apple and Youtube from Thursday this week. The People Property Place Podcast? is powered by Rockbourne. Who do you want to see on the Podcast? Link in the comments below #podcast #realestate #property #peoplepropertyplace
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