Running A Commercial Property Family Business

Founded by John Shellabear in the 1960s, the Shellwin portfolio has remained exclusively within the family ever since. Created, managed and expanded by three generations, it has continued to evolve, weathering many economic headwinds but staying true to its core principles. 

Helen, our Managing Director, recently appeared on Realla’s Commercial Property Pioneers podcast where she explained what it was like to take the reigns of the family business, how her career up until that point had prepared her for the role, and how the family values she inherited supported the business throughout the pandemic.

If you’re interested about the ins and outs of running a commercial property family business, you can listen to the full podcast episode here. But if you’re looking for a quick summary – here are the highlights. 

How Shellwin began

Set up by John Shellabear in the 1960s, Shellwin Real Estate started humbly. With a commercial property agency on the side to generate income, the portfolio began with under-utilised, redundant brownfield land that John transformed into offices and industrial spaces. But despite the humble beginnings, there was always a long-term view for the portfolio.

He carried the business through two recessions – during which many other commercial property developers suffered busts – on the back of simple principles. The first was to operate with caution and respect for slow, sustained growth over rapid parabolic growth. Secondly, he strived to retain as many of his property assets as possible, keeping leverage low, rather than taking the flipping approach.

His management of the portfolio saw it grow and mature over the decades, until his son took the helm to steer it through the Global Financial Crisis and beyond. Then in 2019, Helen, with a broad background in surveying, banking, and private equity, took the reigns.

Inheriting the family business

Helen took control of the Shellwin portfolio, which was still made up almost entirely of properties that had been built or redeveloped by John, with an understanding that there was a certain level of obsolescence built in. That gave her the chance to asses each asset in depth and develop a business plan for the company to take it on to the next level.

Taking lessons from her father, Helen settled on a single macro goal that would influence her management style. The Shellwin portfolio had to remain resilient and should always be managed with a long term thesis. This macro goal bled out into several principles that still make up the Shellwin approach today:

1. Cash is king – Increasing volatility in market (and global) conditions mean that having cash reserves are essential to have on hand to stabilise the boat through rough waters
2. Make strategic decisions – Strategic forward-planning and backup plans that go beyond a single ‘Plan B’
3. Occupier-focus wins – Occupiers are the most important stakeholders, so focusing on their needs is the most important element for continued success

In 2019 we acquired two new properties after carrying out in-depth due diligence to make sure they were a good fit for our long-term goals and we continue to look at opportunities as they arise.

Impact of the pandemic

It turned out that inheriting the steady long-term approach and prioritising portfolio resilience and durability would pay off sooner rather than later, as less than a year after Helen took over the Shellwin portfolio, the COVID-19 pandemic struck.

The long-term thesis and lack of financial leverage meant that riding out the effects of the pandemic were more straightforward for Shellwin. The financials took a backseat, with the priority remaining on steady growth and occupier needs. Shellwin is in a strong position to navigate the next decade and the significant structural changes this will bring in the commercial market, particularly in the office sector and the drive to carbon neutrality. 

In the meantime, Shellwin properties continue to provide a safe and productive space for tenants who need one. We worked directly with our occupiers to establish COVID-safety guidelines, and have been happy to see consistent use of our office spaces throughout lockdowns.

Want to hear more about Shellwin’s history and our approach for the future? Listen to the full podcast.