Friday April 19th, 2024 -
David Gaffney is the Owner, Chairman & CEO of Ambassador Group, the privately owned, Scottish real estate company spanning three divisions, Development, Investment and Advisory. Headquartered in Glasgow, the Group has a successful track-record across all aspects of real estate and is well-respected as an innovative and trusted operating partner committed to adding value through an entrepreneurial and forward-thinking approach.
We recently sat down with David to chat about what initially got him into the real estate industry, his greatest success in business so far, his most important mentors, as well as hearing more about the group’s latest development project at the historic Bangour Village.
What made you get into the real estate industry, and what keeps you in it??
My father’s trade was as a finishing joiner and then a construction manager in the housebuilding sector and that influence introduced me to this industry from a young age, initially as a labourer on building sites. I then went to university to train as a quantity surveyor, and then into private practice to complete my qualifications and training. What keeps me in the industry is the dynamic nature of the real estate sector and the opportunity to create value through tangible and impactful projects, which hopefully improve livelihood of individuals and society more generally. This sector offers continuous learning and growth on a personal and professional level, and no two days are the same!
Can you briefly describe the Ambassador Group?
The Ambassador Group is a trusted developer, development manager, asset manager, operating partner and advisor across a variety of real estate classes. We are known for our commitment to delivery, excellence, integrity, and long-standing relationships within the industry.
What makes the Group different when compared to other real estate firms?
We are privately owned, deeply passionate about what we do, and have demonstrable track record of delivering excellent equity returns for our capital partners over many years. What really sets us apart, however, is our remarkable team, characterised by extensive experience in the real estate sector and a distinct entrepreneurial acumen for securing and executing deals effectively.
Ambassador Group has grown considerably following its launch in 2011. What would you say have been the main drivers of this impressive growth to date?
We have maintained a strategic focus on meticulous transaction underwriting through detailed diligence and investment decision-making processes. Establishing enduring relationships has also been pivotal in expanding our business in a controlled and sustainable manner over the past 13 years. Again, the contribution and motivation of our team has been essential to this growth and diversification of our business model over the years. They are our DNA.
Can you tell us what makes the Scottish real estate market different to that of England and Wales (if anything)?
A few fundamental things; the Scottish real estate market is traditionally slower to experience market fluctuations, both in house prices and rents; and market sentiment is generally more cautious but resilient. This has historically posed challenges for significantly outperforming budgets, compared to other regions in the UK, however, Scotland offers greater predictability and dependability on budgeted returns for experienced industry practitioners and assists in underwriting assumptions, particularly if you do your homework. Whilst post-COVID challenges, such as delays in the planning approval system have affected the entire country, the impact on Scotland feels more acute. The residential build-to-rent (BTR) market has also been detrimentally affected by the impact of rent controls, which are not in effect in the rest of the UK, meanwhile student accommodation is a very sought after asset class in Scotland – so a very mixed and shifting picture.
The recent funding from OakNorth supported the development of new homes at historic, Bangour Village. Can you tell us a bit more about the site and what makes it so unique?
This development is one of the most significant projects within our business. It is a living, breathing example of creating delta by taking something with tremendous potential in its most derelict and neglected form and transforming it into something exceptional for the future. We have worked incredibly hard over the past few years on the master planning elements of the site and are delighted to now be at the development stage where we can begin to bring Bangour Village Estate to life. The setting is spectacular and spans over 200 acres including a mix of woodland, vast green open spaces and Grade A & B listed heritage properties, which are also being repurposed into energy efficient residential and amenity facilities alongside new build development. We are creating a brand new sustainably led village settlement here, complete with school, retail, leisure and lifestyle offerings. The location is only 10 minutes from Edinburgh and has excellent transport links to both the East and West making it extremely attractive to a wide market of prospective homebuyers. In my view this is one of the best, and most significant projects in Scotland.
Can you tell us a bit about your ambitions for the rest of 2024?
Our ambition for 2024 is to consolidate our position as a leading real estate management business by further expanding our footprint across the UK. We aim to remain the preferred partner for our current and future stakeholders whilst fostering a positive work environment that encourages and nurtures our team to thrive. Our absolute focus on the ‘3 C’s’ – colleagues, customers and capital will guide our growth trajectory whilst reinforcing our core values as a business.
What would you say has been your greatest success in business so far?
Building Ambassador Group from the ground up in just over a decade to achieve our current position of over £500m in assets under management, and advising on over £2bn of transactions, is a significant accomplishment for the business. We now employ over 170 staff and have established a nationwide presence that is continuing to grow with two new offices opened in England this year alone.
Who has been your most important mentor in life?
Throughout my career I have had the privilege and fortune of working with some exceptional individuals, and still do. Most notably, Duncan Davidson of Persimmon, and my former chairman Remo Dipre. They were both very different individuals, but equally inspirational and have profoundly shaped my own professional journey.
And finally, if you could give one piece of advice to those just starting their career in the early years sector, what would it be?
Don’t take no for an answer. Uphold your principles, remain patient in your endeavours and trust that steadfast determination will ultimately lead to success.