00:00So just set the scene here for us as we were sort of laying out really ambitious in scale,
00:05really ambitious when it comes to construction financing. How did it all come together?
00:10Well, firstly, thank you for having me. And it's obviously a big moment for us to have brought
00:15together the financing, strong support from JP Morgan and Vici. But I think ultimately the reason
00:22that we've been able to do that is because we have a differentiated product. We have great
00:27location, great products, and hopefully great execution over the course of the next few years.
00:32And what it shows is that even in challenging markets, there is a flat quality where you have
00:38a clear path to distinction, genuine differentiation, then capital will support you at scale.
00:46Yeah. So that's what I'm wondering about. I mean, obviously, this project I have to imagine is
00:51unique, but give us a sense of the real estate market overall, and especially maybe the more
00:56luxury side of things where you're used to operating. Well, again, I think, you know,
01:01it's about quality. It's about quality, location, products, and execution. You know, we've been
01:07supporters and shareholders in Amman for a number of years. And what we're continuing to see is very
01:11strong, you know, room growth, room rate growth over the course of the last few years, but as people
01:17seek out great experiences. And what we're doing in Beverly Hills is that we will be delivering the next
01:23level of experiences, privacy, luxury, security, the great amenities. And I think if you continue to
01:30double down and do this, then you have a great opportunity. And as you said in your introduction,
01:36you know, we have a site here that has been vacant or fallow, effective for over 20 years,
01:42but it's anchored by real history and cultural relevance in the Beverly Hilton, the iconic Beverly
01:49Hilton, the host of the Golden Globes and the home of the Milky Global Conference. And what we're
01:54bringing together with that real history and cultural relevance is a new product, high quality
02:00product, backed by the strongest hotel brand in the world in Amman. And we think that's going to
02:06produce real dividends for the local economy, for Beverly Hills, and for our clients and partners.
02:12So, Jonathan, I mean, we've actually seen, obviously, finally, to see this structure get to the point
02:17where it starts to rise. But when we talk about having this ready by the 2028 Olympics,
02:22you think that target can actually be met?
02:25So we have clocks now remain in every single one of our offices focused on the LA Olympics.
02:30So we're, you know, our commitment is to seek to deliver the hotel and the retail and the park areas
02:36by the LA Olympics. And that's what we're all focused on trying to achieve.
02:41As we start to talk about sort of the demand for these types of properties, and obviously,
02:46you're dealing with a very high-end consumer, obviously, one that's going to be a little bit
02:50less affected potentially by any sort of economic shifts, if you will. But this is also becoming a
02:55more competitive space as well. And I am curious as to how you think you can differentiate yourself,
03:02not only, of course, with one, Beverly Hills, but with the additional projects that you'll be
03:06working on in the future.
03:08I think what you're looking to do is to attach yourself to the right brands and the right
03:12partners. You know, we obviously have Amman in Beverly Hills together with the Beverly
03:17Hilton. We're also about to reopen the Delano in Miami Beach and South Beach over the course of the
03:22next four to six weeks. And we've seen, you know, real, real excitement about the Delano coming back
03:28to the market, that iconic piece of South Beach. We've acquired the Dominic in New York to rebrand
03:35that as the Delano Soho. And what you're seeing here is a consistent theme of great location,
03:42great quality product with the top brands in their sectors in the marketplace. And if you can
03:48bring those things together and execute, you know, at the top level, then you have great opportunity
03:54of succeeding.
03:55I want to talk a little bit about, you know, where you see opportunity right now. Obviously,
04:00hospitality, residential, retail, that all makes sense. But I mean, what do you think is an
04:06underappreciated area of opportunity that, you know, you're looking at right now?
04:11Well, I think if you look more generically, I think over the last few years, it would be fair to
04:15say that real estate has been somewhat of an unloved asset class. We've seen great, you know,
04:22booms in technology and AI and crypto and other marketplaces. But we've also seen over the course
04:28of the recent period, great volatility in those markets. And I think what you're going to see is
04:34a return of a flight to quality in the real estate world, because people actually will feel more
04:39comfortable with the more consistent returns they will get from real estate. And I think what we have
04:44believed as agreed, Todd Bowley and myself and developing this business, is that if we focus
04:52on quality and the best in the marketplace, we'll do well. We acquired and we developed the 830
04:57Brickle office block in Miami, and we've achieved record rents in a fully leased up office block.
05:03And what you're seeing there is a great position, great quality, great asset. And I think what people
05:09are looking for is a quick road to income and a quick road to return, in addition to the right
05:17quality, the right location. If you can bring all those things together, I think people will be,
05:22you know, that's where I see capital being attracted to in the medium term.
05:26Well, Jonathan, I am curious. I mean, you know, most of the conversations we have about real estate,
05:31obviously, the interest rate environment comes into play. There's a lot of questions about where
05:35exactly the Federal Reserve will go. But when you think about where you are in the market,
05:40that luxury space, that gravitation towards quality, I mean, how does what's going on when
05:47it comes to interest rates affect your business? Well, I think the first thing that one should do,
05:52and I think, you know, is, you know, obviously a lot of people are suffering hardship at this point
05:57in time, and we hope that there is stability as soon as possible and that some resolution breaks out.
06:02And I think that's the most important point for all of us. And clearly, we've seen great volatility
06:07in inflation, you know, markers or in interest rate indexes over the course of the recent time,
06:14since the outbreak of the dispute with Iran. So I think that is a real challenge in the short term,
06:20and clearly the more prolonged period of instability than the more prolonged period of interest rate
06:28volatility. You know, clearly the Fed and also here in the UK, where I'm sitting, you know,
06:33a number of rate cuts have been priced in for 2026, which have now been taken off the agenda.
06:39But I think we have to really understand that we're in a medium to long term game.
06:43We're not in a short term world, we're looking to actually invest over a three to five to seven
06:48year period. And therefore, one needs to understand and hope that there will be that stability over
06:53that period, which will ensure that level of consistent returns that we're all seeking to
06:57achieve. Well, not to put you on clearly, clearly the sooner from an economic perspective, I'm not
07:03talking geopolitically, that we can get that level of stability within the marketplace, the best for
07:08all of us. Well, not to put you on the spot, though, would you consider if a new project came
07:12onto
07:12your table right now to invest in in the Middle East, particularly in some of the Arab states like
07:17UAE, etc. Would that appeal to you, given what we know right now? So as you may know, Romain,
07:24we entered into a partnership with Moabadala Capital in a recent time. And we've opened that
07:30office in Abu Dhabi, and we have a partner out there who's building a team. So, you know,
07:36we're big believers in the Gulf. And we don't see that this short term situation is going to affect
07:43our view about the Middle East being a significant growth engine over the course of the next 20 years
07:48for the world economy. So to answer your answer simply, we're already looking at something in
07:54Abu Dhabi. And we would have no qualms in executing that if we can reach agreement with our partner at
07:59this point in time. All right. Fair enough, Jonathan. I do. Before we let you go, I do want to
08:03ask you
08:04also just a little bit about beyond just the normal hospitality and luxury properties you're dealing
08:10with. You've made some big expansions when it comes to some of the industrial sectors, supply chain
08:16sector, as well as some interesting sports investments as well. And I am curious as to
08:19exactly where you're trying to take Cain with some of these newer projects. Well, I think what we've
08:25sought to do is that we've understood that as a younger firm, we need to create track records and
08:30have expertise in a certain number of areas and not try and be a master of all areas. So we
08:35focused
08:36obviously on the luxury area very strongly. In Europe, led by my colleague Avi Luoma, we're focused
08:41on the industrial world. We've also got a very, very strong student portfolio in the UK that we're
08:46looking to take into Europe. And together with my partner, Todd, who's obviously one of the world
08:51leaders in sports investment with his interest in Chelsea and the Lakers and the Dodgers. You know,
08:56we've taken that into areas in our investment world. So we have our sports academy, the St. James
09:03just outside of DC. We've got an investment in a cricket team in the UK. Yeah. And we've got other,
09:09you know, experiential investments that we found, you know, very, very attractive and we think are
09:14going to generate good returns. Yeah. So for me, I think it's an issue of trying to focus on the
09:21areas where we have great expertise, great people and great opportunities. And they, we think that
09:26will serve us well.
