Integrating Property and Leisure - The Bourne Capital Story

Integrating Property and Leisure -
The Bourne Capital Story
by Chris van Niekerk

Bourne Capital is the London-based property group run by entrepreneur Robert Bourne, well known for his patronage of the dramatic arts and his high profile bid to buy the Millennium Dome which made headlines in 2000. But how did he build up a property portfolio now estimated to be worth some £250m? And what is he doing running theatres, restaurants, markets and an ice rink?

On the surface you might assume that Bourne Capital is a traditional property investment company. However, when you dig a little deeper you uncover a much more interesting side to this business, a highly entrepreneurial spirit that lies at the very core of everything the company does.

The man behind this driving entrepreneurial spirit is Robert Bourne. Bourne first appeared in the 1980’s when the company he co-founded with his brother, Local London Group (LLG) bought up large redundant buildings and created London’s first serviced offices. Bourne took LLG public in 1986 and, following its sale in 1989 for some £120m, went on to set up Bourne Capital.

Bourne Capital started by acquiring adjoining properties across a number of locations in London to form four major property estates - in Waterloo, Queensway, Chinatown, and Islington. Using sophisticated marketing techniques to achieve full occupancy, they turned their efforts towards creating leisure businesses on each of the estates. “The idea was to actively increase the value of the estates by attracting more people to the area with our leisure ventures... whilst generating positive cashflow from the businesses to contribute towards the development of each estate”, Charles Tippet, Bourne Capital’s Group Financial Director tells us…. “as a result we don’t have to rely on a buoyant property market like other major estate owners, and we achieve higher than average returns”.

Last year Bourne Capital’s Leisure Division, responsible for running all the group’s leisure businesses, opened the latest in their growing collection of London eateries, the Waterloo Brasserie. Unsurprisingly it sits at the heart of their Waterloo estate, and perhaps even less surprising is that it is opposite the famed Old Vic theatre, yet another gem in the Bourne Capital crown. Kevin Spacey’s position as the Artistic Director has brought this once failing theatre once more into the light, drawing large audiences and feeding the area with post/pre theatre diners. No wonder the Waterloo Brasserie has already proved a runaway hit. As the theatre flourishes, so too does the restaurant and visa versa.

Similarly well positioned is Queens Ice & Bowl, central London’s largest ice rink. At the core of the Queensway estate Queens has undergone significant redevelopment under Bourne Capital, drawing in record crowds. The Queensway Market, another of the group’s ventures, neighbours the ice rink, bowling alley, and amusement centre, creating a scene not dissimilar to Piccadilly Circus’s Trocadero.

It is perhaps no surprise, therefore, that Bourne was inspired to begin buying up the Newport Sandringham estate in London’s Chinatown back in 2003. This estate has evolved significantly since Bourne Capital’s takeover but perhaps most intriguing is Bourne Capital’s ambitions to attract a new market to Chinatown - partygoers. Chinatwon Zone is their latest addition to this famed part of London. Predominantly an ultra-modern food court, it also houses Geisha Bar, a Tokyo-inspired bar managed by the group’s Leisure Division aimed at attracting across the hoards that gather in neighbouring Soho.

So what next? The upcoming opening of the new Collins Music Hall in Islington promises to be an exciting new chapter for their Islington estate, with other Leisure ventures such as the Islington Greene Brasserie planned for 2009. While other property owners are growing increasingly nervous about the current financial climate, Bourne Capital, with its full occupancy and thriving leisure businesses, seems more relaxed. Last month Robert Bourne announced his plans to head up a so-called “Special Opportunities Division” to co-invest in struggling properties with joint venture partner using their method to counteract the market. “Exciting times”, says Bourne. I watch on with interest.

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