The Prague Post Online: Real Estate: King Sturge making waves in Prague

November 22nd, 2008

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King Sturge making waves in Prague

After 16 years on the Czech scene, real estate giant has eye on residential market

By Curtis M. Wong
Staff Writer, The Prague Post
November 21st, 2007 issue

KURT VINION/THE PRAGUE POST

Angus Wade, the managing director at King Sturge, says he wants to take advantage of "Prague's incredible residential boom."

King Sturge

Bredovský dvůr
Olivova 4
Prague 1
Tel.: 234 703 333
Web: www.kingsturge.cz

Compared with a few years ago, the Czech real estate market may no longer be wildly soaring in many directions. Yet most firms contend that having a Prague office remains a strategic move, providing an administrative base allowing them to tap into Western commercial expertise and apply it to developing markets in the East.

For Angus Wade, managing director of King Sturge, a more mature Czech market means there’s still a lot of work to be done. His company is a household name throughout the United Kingdom, and the Prague office has been involved in several high-profile commercial projects throughout the city, including the Slovanský Dům shopping center, in the nearly 16 years since it entered the market.

Just recently, the company began focusing more on the city’s residential side, hoping to ride the crest of what Wade calls “Prague’s incredible residential boom.”

Wade first joined King Sturge’s London headquarters in 1996. After several years as an investment agent, he was wooed back by his original employer in 2005 with an offer to serve as the managing director of the Prague branch.

Although his involvement with projects has lessened somewhat in his latest role, Wade hasn’t lost his knack for investments, boldly referring to Prague as “the new Dublin.” Looking back on his career, Wade shared his thoughts on the Czech real estate market with The Prague Post and explained why years of experience haven’t diminished his passions.

The Prague Post: What inspired you to enter the real estate industry originally?

Angus Wade: I’ve always loved property. I like its tangible nature — being able to go out and look at a project. I’ve always been interested in buildings, from historical buildings to the most modern shopping centers. So that’s what really got me into it. Working in office leasing in Hong Kong in 1993 made my mind up about it. It was the height of the boom, so it was an extremely exciting, dynamic market.

TPP: How would you say that the Czech and Central European real estate industries compare to that in the United Kingdom?

AW: I think we’re following a pattern here that’s been set in the UK. We’re just many years behind in terms of where the industry is. Using our best practices and applying them here has been very successful for us. So we’re not trying to reinvent the wheel, we’re following strong business practices in a new market and finding that people are willing to pay for that added value.

TPP: When you arrived in the Czech Republic, what would you say your biggest professional goal was?

AW: When I first arrived, the investment market was literally just starting, so it was to get a hold of that market and be recognized as a market leader for investment. That was my No. 1 priority.

TPP: To what extent do you feel that you’ve achieved that goal?

AW: Obviously, I’m doing less investment work than I was before, as I’m running the company, but I think I still have a market leading position and am recognized as a market leader in investment. Now, having run a company, I’ve quite enjoyed the different skills that you need to be a managing director. There’s more motivating and driving people involved. I actually get more pleasure now out of seeing people develop than cutting a deal. Of course, I don’t want to lose that, because the thrill of doing the deal is still omnipresent in any investment agent. You’ve always got to have that killer instinct. But seeing people develop and seeing them develop under your watch is very satisfying.

TPP: Given that you say your goals and priorities have shifted, how have your professional skills evolved as well?

AW: Of course, I’ve made some mistakes, and I’ve made some good decisions. I didn’t go to any courses or require any massive help. I’ve learned a lot and grown up a lot in doing it, which has been fun.

TPP: How would you say that the Czech real estate market changed during your time here?

AW: You can’t really compare it. For me, it’s a mature market now. It’s got all of the characteristics of a maturing market, and that’s happened very quickly. I think that there are still problems and intricacies. There are cultural differences that one has to bear in mind. I’ve had to adapt to the local way rather than trying to make the UK way work here. Once I worked that out, I found it a lot easier to do business.

TPP: If you compare Prague to London, how would you describe the cultural business differences that you’ve noticed?

AW: You can’t expect to come into someone’s country and say, “This is the way it’s going to be done.” Of course we work in a certain way, and people coming to work with an international company expect that. From what I’ve seen, Czechs are very enthusiastic. They’ve rallied behind me. I think that the “work hard, play hard” mentality has worked well here. I think that the Czechs are seeing the benefit of their growing economy. I’ve enjoyed watching the success of the country and sharing in it.

TPP: What do you think sets your firm apart from your competitors in the Czech real estate field?

AW: I think the fact that we cover all aspects of real estate advice, so we can advise on every single part of a transaction or product. You wouldn’t have to go somewhere else. I think we’re the only company that offers the full service. That provides people with a lot more flexibility. We’re privately owned, and we’re a bit more entrepreneurial. I think that people like the fact that we think about real estate differently.

TPP: What are your plans for the company in 2008?

AW: Last year was a huge success for us. I want to keep and maintain that position. We’re going to move offices, and obviously this will be key for us. We’re going to celebrate 16 years in Prague next year, and that’s quite an achievement really.

TPP: If you were to make a prediction about the future of the Czech real estate industry, how do you think things will progress in the next several years?

AW: I think the market’s still re-basing itself after years of communism. I think that we’ve got some way to go in terms of price improvement. I still think that the fundamentals are pretty strong, so we’re not seeing massive amounts of oversupply and we’re not seeing reduction in the demand. Personally, I think the property market is in pretty good shape. The debt market is softening, and that will obviously have an effect on the market in the short term.

TPP: Do you think that this is just happening here in Prague, or is it the same case throughout the rest of the Czech Republic?

AW: I think Prague’s obviously made the running, and if you go to someplace like Brno, you can see that it’s catching up. Obviously there is a price differential. But I think since investors are now comfortable investing in Prague, they’re comfortable to invest in Brno, Plzeň, Olomouc and Ostrava. We’ll see a lot further expansion in the regional cities in the future. We’re doing a lot of work in Brno, so we’re looking at the possibility of having a satellite office — probably on the residential side to start with. We’ll get to a point where we’ll need some regional presence.

TPP: Finally, what advice would you give to a real estate agent who’s interested in this market?

AW: Contacts are everything. The more you can go out and meet people, the better position you’re going to be in. When I first came here, I made a point of getting to know everyone, which has been hugely beneficial for me. I always say to the young guys in my office, “After work, go out with one of your clients, take them out for a beer, go and see a concert with them. Go out and meet people. Talk about real estate.” Find some mates in real estate, even if they’re working for the competition. In 10 years’ time, that guy might be a client. If you two are buddies from the beginning, guess who’s going to get the next sales instruction? You.

Curtis M. Wong can be reached at cwong@praguepost.com

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