How Costas and Yiannakis Polycarpou Identify Properties With Long-Term Development Potential

Posted On Thursday, 04 February 2021 21:56

Many of the world's wealthiest people have built their wealth on the ability to identify investment properties not just with short term returns, but with strong long-term development potential. Choosing these types of properties takes insight and skill.

I recently had the chance to chat with two people who have the insight and skill required for identifying these types of properties. Costas Polycarpou, founder of Polyteck, one of the U.K's leading building services and construction company, and his father Yiannakis Polycarpou, chairman of Polyteck, believe in building their company together as a family.

Said Yiannakis, "The Polyteck Group has grown significantly whilst maintaining our family values and can-do approach." I spoke with both father and son about how they have been able to achieve that significant growth through identifying the right types of properties …

So how do they do it?

Innovative Developments

Polyteck is a company that is known for its innovation. The Polycarpous look for development properties that are similarly innovative and forward-thinking. These types of properties have shown to be a good fit for their dynamic company.

Costas Polycarpou spoke about when the company decided to expand into Dubai, a city known for its groundbreaking buildings. He said, "We wanted to extend the already successful model based in London to the international market, and to explore further opportunities by working on prestigious and renowned buildings."

Costas' father, Yiannakis expressed a similar sentiment: "We are an ambitious, visionary company. The group has always embraced changes within the industry and thrives on innovation, continuous improvement, and best practices. This approach has forged us into a dynamic and forward-thinking company."

Investing In Top Markets

Polyteck knows that investing in the right market is essential for long-term profitability. This is why the company chose London as its headquarters when it first opened its doors in 2005. That choice has led to massive growth and opportunity.

On the topic of choosing where to invest, said Costas, "Since I started my business with my father over a decade ago, the group has grown to revenues in excess of 30 million pounds. My business has developed property in the last 5 years with GDV's of up to 100 million pounds. None of this happens by accident. We've achieved revenues of this amount by looking for investments in the right places."

The choice to begin a facilities management and development company in London has led to great success for Polyteck. London has the 8th most expensive housing prices out of 35 global cities, according to the CBRE Global Living Report. The report outlines the resilience of London's market. After the financial crisis in 2009, prices were able to return to pre-crisis levels by early 2012. The average property values are now some of the highest in the world.

This resilience makes London properties attractive long-term investments. Not only are property prices high, but London also has a high number of renters, both residential and commercial. This demand has caused the price of rent to rise, making rental properties highly profitable.

Although Polyteck began as a London-based company, it has since expanded and now also has offices in Dubai. The 2020 Global Wealth and Lifestyle Report stated that Dubai offers exceptionally good value for luxury property. Some of the most prestigious buildings in the world are in Dubai, including the Burj Khalifa, the tallest building in the world. 

Qatar is also an emerging market. As landlord and tenant laws change in Qatar, it provides immense opportunities for growth. Being based out of London and Dubai, two of the strongest markets for global real estate is sure to lead to continued success down the road for Polycarpou's company.

Proven Value-Creating Potential

One way to be sure a property has long-term potential value is if it already has a track record of providing value for over a century. One of Polyteck's institutions, Academy Gardens, is over one hundred years old.

Academy Gardens is also Grade II listed, meaning it has been placed on a list of historically important British buildings for its architectural interest, historic interest, or close historical association with significant people or events.

When a property has remained valuable for over a century, it's reasonable to assume that it will continue to be valuable for at least another century, and likely much longer. Investing in the development of properties that have already shown their long-term value takes away some of the risks in choosing the right property. 

Remaining Flexible 

Polyteck has an ability to enter and exit projects more easily than most ventures because of the multi-faceted nature of the company. They rely on in-house solutions, which greatly assists control and value. 

Costas spoke about his brother, George Polycarpou's newly established estate agency, which assists with the leasing and sales of Polyteck's developments, along with others in the greater London marketplace. This allows Polyteck the opportunity to start from inception with strong foundations, but also exit projects fairly easily. This makes the company an open and more attractive opportunity for mutually-beneficial joint ventures and partnerships. 

Consulting With Experts

Not all success has to be built on your own. Polyteck has built its success on working with top-quality people who can help with analysis and forecasts in order to choose the right investment properties. Both Costas and Yiannakis emphasized the importance of working with the right specialists that complement our business and add significant value.

Said Yiannakis of the topic, "We thrive in investment in our people. We like to find excellent people and encourage them to become even greater experts than before. The more experts we have around us, the more likely we are to succeed."

Often these experts are external. Costas said, "Meeting other investors and developers in our sector and sharing ideas, challenges, and experiences can be of huge value." Other times these experts are their own employees.

Costas explained, "In order to be a successful business you must be blessed with effective individuals. I believe in finding those people with the right attitude and adding training to that attitude to create excellent employees. We encourage continual professional development to improve in the areas that are crucial to the business and its people."

Because Polyteck is a company filled with experts who are constantly learning how to be better, they are able to rely on those experts to help watch for the next great investment, run proper and thorough analyses on potential investments, and give insight into any important details related to the investments. It's important to make informed decisions with the help of experts in order to obtain success.

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