No Bull – Kamikazee Purplebricks loses CEO Sam Mitchell
Some things in life are a raging certainty, Purplebricks and Purplebricks (2) burning huge amounts of cash, with a regular turnover of CEO’s, for example, with Sam Mitchell falling on his sword, having overseen ‘Strike’ pour over £73,000,000 down the drain, followed by a year of the New Purplebricks replicating this trend. The biggest question for me – if year after year Strike (great name by the way I wonder what genius thought of that) loses multi-millions, why would you not eject the CEO sooner? We see this trend time after time in the estate agency world, YOPA also has a sterling performance in burning cash, also it has pivoted its model so many times that it would have been better to have closed the doors half a decade ago and just set up a franchise business instead.
The big thing I never understood with Purplebricks (2) is that when it was acquired for a £1, a deal that looks very expensive now, its CEO Sam Mitchell had two choices, continue with the cash generative business model of the Bruce Brothers, where every instruction was around £1,000 in the bank sale or no-sale, OR adopt the kamikaze Strike model of offering a free sale to vendors, hoping that the income streams from residual business would get you to profit. And of course in its first year of trading which ended four months ago, Mr Mitchell decided the freemium model was a great idea, after all who would not want to sell for free?
But of course to run an agency is expensive and that is why to balance the books over 100 bright eyed Purplebricks (2) people ‘left the business’ after its first year of trading much like Mr Mitchell.
Roome focuses on the biggest issues in UK student accommodation
Owen Redman Co-founder of Roome has experienced student accommodation first hand as an undergraduate, and then when setting up Roome with James Buck, explicitly to solve its pain points. Recently Owen asked three different stakeholders, Students, Universities and Parents what the big rocks in the road were for them in 2024? As expected they all came at it from a different perspective.
An Undergraduate’s view
‘Many may not realise it but student accommodation to a very large extent colours and shapes the university experience, yet for many undergraduates in the UK, it is often an overwhelming challenge. Affordability, location, quality, and community are words that came up time and time again when engaging with students, and all are in the mix to either promote or lessen the years spent studying and building lifetime bonds with others.
Specifically budgetary concerns with spiralling accommodation costs loom large with students who rely on a mix of student loans, family support and part-time work. Rents in the PRS are rising annually and the student sector is no different. In cities like London or Bristol, students continually juggle rent with other essentials, such as food, transport, and study materials. Which often dampens the university experience.
From analysis we know that 50% of students investigate housing options before applying to university. Which is why Roome explicitly makes that process of understanding the housing market as easy as possible for students and their parents in their decision-making process. Where universities will have all of the data and information on hand to share directly with prospective students
Maintenance or lack of it was also a recurring theme with students grappling with sub-standard rooms to live in, mold, inadequate heating, poor insulation, and delays in basic maintenance issuers being carried out. Problematic for students with health or respiratory issues. Again making it hard for students to feel at ease and focus on their studies.
A big topic for students, was the proximity of where they lived to where they studied, if housing is far from the university, the commute is an added stress factor, especially with the demands of a busy class schedule, late-night study sessions. Living on the periphery making it difficult to form friendships or stay connected to campus life, which can impact their social integration and overall satisfaction with their university experience.
Living in housing where it’s difficult to connect with other students or participate in social activities can feel isolating, especially for those new to the area. Students value environments that foster connection, whether through communal spaces, organized events, or shared facilities.
RO Real Estate retrofits commercial asset securing two new tenants
RO Real Estate announces that Scottsdale Lifetime Partners and Tickets.com have signed up as new tenants in its flagship office Silbury House, in Milton Keynes the most sustainable office building in the city. Built in the 1990s, Silbury House exemplifies the transformative potential of existing office buildings becoming models for energy efficiency. The building has now achieved an Energy Performance Certificate (EPC) A rating, showcasing what can be achieved through careful refurbishment, and demonstrating the calibre of tenants attracted to modern and sustainable offices.
The refurbishment of Silbury House is also targeting an Outstanding BREEAM rating, which represents the top 1% of UK buildings. It is also targeting NABERS 5 stars through its energy efficiency measures, a rating it would share with only two other buildings in the UK. As well as sustainability; wellbeing was also a key consideration for the refurbishment which includes a communal breakout/workspace to promote cross-tenant relationships and interactions and a shared city garden for outdoor relaxation space. Air quality is monitored and maintained to the highest level and there is also on-site workout facilities and cycle storage.
Scottsdale Lifetime Partners and Tickets.com are the newest occupiers of Silbury House, and for nearly three decades, Scottsdale has helped people across the UK achieve their financial goals. Since 2017, they have been members of the Lifetime Group, one of the UK’s leading wealth advisory firms. The other new tenant Tickets.com has its HQ in California, with other offices in New York, Colorado, and the UK, and is the technology provider for over a million live events around the world, and supports its clients in selling over 95 million tickets annually. (Picture – Silbury House, Milton Keynes)
Ed Davidson, Asset Management Director at RO Real Estate, said: ‘The Silbury House project navigated the complexities of modernising an older building to meet contemporary standards, incorporating architectural modifications, building services upgrades, and energy-efficient technologies. The integration of extensive solar panels, innovative construction methods, advanced energy systems, and sustainable materials has established Silbury House as a leader in energy performance, and we are delighted to welcome Scottsdale Lifetime Partners and Tickets.com, who recognise the importance of sustainability, not only as a value demanded today by employees, but also as a means to reduce energy costs and impact on the environment.’
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Andrew Stanton Founder & Editor of 'PROPTECH-X' where his insights, connections, analysis and commentary on proptech and real estate are based on writing 1.3M words annually. Plus meeting 1,000 Proptech founders, critiquing 400 decks and having had 130 clients as CEO of 'PROPTECH-PR', a consultancy for Proptech founders seeking growth and exit strategies. He also acts as an advisory for major global real estate companies on sales, acquisitions, market positioning & operations. With 100K followers & readers, he is the 'Proptech Realestate Influencer.'
