Michael Whitney, Director of Areli Living, discusses his experience in real estate, different stages of development life cycle, assembling external teams, capital stack, plans for 2023, and his investment preferences if he had £500m of equity.
Areli Living is a private equity platform focusing on direct development and providing debt to developers in the UK real estate market.
Assembling reliable and trustworthy external team members who share the same commitment is crucial for Areli Living in delivering high-quality projects.
The role of a development manager in Areli Living involves coordinating consultants, managing budgets, understanding risks, and structuring deals based on market conditions.
Deep dives
Overview of Really Living
Really Living is a private equity platform that focuses on direct development and providing debt to developers. They offer mezzanine financing and pref equity positions for various projects across the commercial sector. The company is selective about the projects they take on and utilizes their own development expertise to assess risks and find creative solutions. Really Living is involved in luxury hotels, living schemes, offices, and other high-end developments primarily in central urban locations across Europe.
Expansion and Growth Plans
While currently consisting of a small team, Really Living is actively looking for new deals and projects. They have recently closed out successful transactions and have several deals in the pipeline. Depending on the projects they undertake, they may consider growing their headcount in the future. The company aims to continue expanding and playing a significant role in the development and financing of premium properties in the coming years.
Building Trust and Relationships
An important aspect of assembling an external team for Really Living is establishing trust and strong relationships. They value the ability to work with reliable and trustworthy external team members who share the same commitment to delivering high-quality projects. Effective communication, mutual trust, and shared expertise are key factors in their collaborations.
The various roles and skills in real estate development
The podcast discusses the different areas and job roles within real estate development. It explains that development management can come from different professional backgrounds, such as cost management or structural engineering. The role of a development manager involves coordinating the work of consultants, managing budgets, and dealing with technical issues. Development directors are responsible for making key decisions and understanding the risks involved in development projects. The podcast emphasizes the importance of having a strong understanding of finance and being able to analyze and structure deals.
Challenges and considerations in real estate development
The podcast highlights the challenges and considerations faced in real estate development. It mentions the importance of thorough planning and design stages to ensure cost control and mitigate risks. The speaker discusses the impact of inflation and rising construction costs, emphasizing the need to manage these issues by working closely with contractors and negotiating solutions. The podcast also emphasizes the importance of having reliable and competent consultants who can accurately estimate costs and provide valuable insights. Additionally, the speaker mentions the need for developers to have a strong understanding of the market and to be adaptable in structuring deals based on market conditions.
Set up in 2022 by Andrea Vanni – in a 50:50 joint venture with Invel Real Estate, Areli Living is making a push into the UK real estate market.
Michael’s experience spans direct investment, asset management, and development of both residential and commercial real estate and he also has extensive experience across equity and debt funding covering all asset classes.
I sat down with Michael to discuss a broad range of subjects which covered some of the following topics:
How he got into Real Estate
Different stages of the development life cycle
Assembling external teams
The capital stack
Plans for 2023 and beyond
Oh and one last question - who are the People, what Property, and in which Place Michael would invest should he have £500m of equity at his disposal
Catch the full episode which will be live on Spotify and Apple from Thursday this week. The People Property Place Podcast is powered by Rockbourne Who do you want to see on the Podcast?Link below in the comments
