Small company, big history. Cyril Leonard is in it’s 80th year and today represents many major international corporations and investment funds from around the world as well as private clients in connection with their property assets and investment interests. The Firm is fully engaged in the macro economic sectors of Energy, Infrastructure, Climate Change and Transport investment, development and operations. It is recognised as one of the UK’s major brokers in the real estate investment market

and undertakes a significant portfolio of project management assignments. This is a story of how, from humble origins in a miserable economic climate back in the 1930s, a refugee from persecution and his two sons created a business that has endured against the odds and which as a model illustrates how a small business team can provide the best in class service to some of the great names in business.

A guiding ethos of Cyril Leonard has always been entrepreneurship with professional integrity on behalf of its clients and this was built into its origins in 1934 – 80 years ago. These 80 years have seen a roller coaster of ‘booms and busts’ in the property market, of fortunes made and fortunes lost by entrepreneurs and businesses of all shapes and complexions. It has seen the country go through a major world war, severe bombings, terrorist attacks and two near catastrophic economic slumps.

The last twenty years has seen London regain its place as one of the World’s most exciting capitals, a stark and welcome contrast to the misery of the 1930’s economic collapse. As the property ‘boom and bust’ cycle follows a step behind the economic cycle, almost by tradition, it is surely remarkable that a professional business that was founded with virtually no working capital by the sons of a refugee from Eastern Europe, has with only one short period of difficulty, successfully survived and prospered with a sense

of continuity and stability. It is, at this point of time in 2014, mimicking the very best of times in its history that it progresses on a path of succession planning to preserve its integrity for its clients – for the future.

1898 So, how did it all start… In 1898 Ansel Blaustein came to London at the age of 18 from Zloczow, in the Province of Lvov (now Lviv) in Poland (now Ukraine) as a refugee from the anti Semitism in Eastern Europe. He came with nothing and found a room in Brushfield Street in Spitalfields Market in the City of London. Brushfield Street, Spitalfields in 1898

He brought 19 members of his family over and set up a barrow in the market selling fruit and vegetables. He paid to send his family to the United States but ran out of money and remained in London. He tried many businesses, some failed, some prospered including property development. He settled in North London where he started developing properties.

1930s In 1933 at a time when the fascist Movement of Sir Oswald Mosely was rampant Ansel Blaustein developed a site he acquired, amongst others, with his cousin through their company Angel Properties, at the Angel Pentonville Road – Angel House. The architect was Leonard Blaustein (age 22) and the site foreman Cyril Blaustein (age 18) and the Contractor was Leonard’s Builders owned by Ansel and established that year.

On completion in 1934 Ansel gave to Cyril and Leonard an Olympia Typewriter and one month’s rent free on a shop unit in the building – working capital – in order for them to start in business as Cyril Leonard & Co – Surveyors, Valuers and Estate Agents of Angel House, Pentonville Road, London N1.

This period followed the worst recession of 20th Century after the Great Depression of 1929 and so was a tough and formative era depending on strong entrepreneurial nerve to build businesses. The two brothers took to the challenge and for the next 5 years they built a business based around Islington and the City of London fringes, themselves, in addition, working to develop properties in the commercial and residential sectors.

Shown here are Cyril ( aged 18), Leonard (aged 22) and Ansel Blaustein.

With the outbreak of the Second World War both Cyril and Leonard were refused military service and were consigned to Air Raid and Home Guard duties. These were lean years indeed as they struggled to run the business. In 1944 the Firm opened its Mayfair Office at 52 Brook Street, opposite Claridges Hotel where it remained until 1982. After the war, the drive to rebuild Britain’s crippled infrastructure was slow, not least because of the restrictive Attlee Government’s

Building Licence policies. Nonetheless during this period Ansel and the two brothers found sites, obtained licences and developed their skills in the property world. They were not alone. Harold Samuel (Lord Samuel of Wych Cross and Chairman of Land Securities ), Max Joseph (Sir Maxwell Joseph and founder of Grand Metropolitan Hotels now Diageo) were north London friends and clients.

1940s

Post-war East London ruins

The brothers worked together with the likes of Louis Scott and Edward Erdman and were part of the engine room of deals, management, development and investment. Indeed in this period the late Lord Weinstock (then Arnold Weinstock) in his formative years, used to act as a ‘runner’ taking deals from Cyril Leonard to Edward Erdman often for his clients Charles Clore (of Sears Group and Selfridges) and Isaac Wolfson (of Great Universal Stores).

They thrived together in a competitive entrepreneurial environment of growth, risk taking and investment. The Firm prospered from the development boom and built, over the next 20 years, a thriving and well regarded Surveying and Estate Agency business balanced well between the Commercial and Residential sectors and in particular, building a major position as one of London’s leading Industrial agents.

The brothers joined this development boom also in their own right, as principals, firstly with their father – building the first new post war office building in Islington at the Angel and then a swathe of new buildings on the fringes of the City of London with many residential developments again around Islington, Highbury and West Hampstead. Whilst in this period the Levy brothers and Robert Clark were building up a large portfolio around Euston, the Blaustein brothers were quietly, through Cyril Leonard, buying up large amounts of property around Kings Cross, both sets of brothers presaging the future redevelopment of these important transport hubs. The Property Management Department also grew, as a backbone of the business notably taking on the management of large ground rent portfolios and whole squares such as Milner Square in Islington. This was an era of the official five and a half day working week with Post War Rationing still in place and a massive shortage of building materials requiring developers to be innovative, the emphasis was on rebuilding Britain.

But a change in Government Policy in 1954 with the removal of the Building Licence regime changed all this with values exploding in a way not seen for several decades and suddenly large scale development became an attractive proposition. With Gabriel Harrison and Harry Hyams taking the lead and Joe Levy benefitting from astute observation of bomb damaged sites from the Blitz, there grew up a burgeoning ‘fraternity’ of property developers on a large scale. In the same way as many of their contemporaries the brothers Cyril and Leonard joined with these and with the likes of Harold (Lord) Samuel, (Sir) Nigel Broackes, Sam Chippendale, Fred Cleary, Barry East, Gerald Glover, Lew Hammerson, (Sir) Max Rayne, Bernard Sunley, Maurice Wohl, Felix Fenston and Harold & Maurice Wingate in the development boom of the post war era. On the back of their entrepreneurial skills the Firm of Cyril Leonard grew and developed as did its reputation.

John Lewis Headquarters, New Cavendish Street, London, W1

1950s The Development Boom begins In the late 1950’s the brothers acquired a public quotation on the Stock Exchange through Singer & Friedlander (to become Kaupthing SG in much later years) by way of reversing a major site in London’s New Cavendish Street into an Indonesian Rubber Company, the name being reduced to Simo Securities Trust. With the development of the site completed, Cyril leonard let the entire office space to the John Lewis Partnership as their headquarters for 35 years.

This Public Company took off as a developer of large commercial and residential sites in London and the South East all with Cyril Leonard & Co as its agent and asset & project manager in that first post war regeneration. Between 1958 and 1962 the number of public property companies grew by 68 from 111. As Oliver Marriott wrote “Almost all of these newcomers were companies built from nothing since the war by one man...” In the history of Cyril Leonard – it was two men! 40% of the pioneers from that time were estate agents.

1960s Developers Flourish – the Golden Age As Cyril Leonard & Co’s reputation and place in the real estate agency world grew so too did the aspirations of the partners. Cyril Blausten (the family name had been changed at the beginning of the 1950’s) on his own and with his brother carried out substantial development and investment acquisitions all over Central London and in the South East. Jointly with Wimpey,

Taylor Woodrow and Wates they undertook major joint venture developments in London with the Firm providing essential services – project and asset management and lettings and sales agency. In Mayfair, Belgravia, Kensington, St John’s Wood and Hampstead they developed over 40 acres (16 hectares) of land and built many 100’s of high class homes primarily in a neo-Georgian style together with offices and retail units that have proved the test of time.

Grosvenor Hill, Mayfair, London

The 1940 Barlow Report predicted the congestion of office development in London and urged an Out of London Development plan. The problem came to a head in 1963 and with the advent, in 1964 of a Labour Government and an imminent ban on office development in London. The Firm secured a major and much heralded Office Consent at St Mary-at-Hill in the City of London in defiance of the Brown Office Ban (named after the Secretary of State for Economic Affairs, George Brown MP) which came into effect in November 1964.

The Ban created a ‘bonanza’ for developers and the Government introduced the Land Commission in a Bill in the House of Commons in 1967. At that time W.G Nutley was a partner at Cyril Leonard and he was constantly called upon, as an expert on Betterment Levy to advise Ministers and to be interviewed by the BBC and the Press. Cyril Leonard’s office in Brook Street was constantly used for these national interviews.

Cyril and Leonard Blausten first started in the late 1950’s and through to the mid 1960’s major residential and commercial developments on three of the London Landed Estates – Grosvenor, Eyre and Ilchester. These were amongst the largest London urban regeneration developments of their time. During this period Cyril Leonard operated from its Islington and Mayfair addresses (the latter being taken towards the end of the Second World War). The Firm capitalised on its Mayfair office acquiring sites for a range of clients in St James’, Mayfair and Belgravia (Grosvenor Hill, Reeves Mews, Dover, Queen and Little Chester Street) undertaking the Project Management and Leasing Agency and then Asset Management work.

When the last surviving partner Solomon died, Sidney, still young,took over the practice and then began a remarkable career designing the refurbishment of the Manchester Corn Exchange for the Blausten brothers (as the possible first Arndale Centre) with the London Hilton, the 1960’s brutalist Euston Tower and the Hearts of Oak Building in Euston amongst his lasting designs. For Cyril Leonard and the Blausten’s the relationship lead to many collaborative projects whilst Kaye worked for Levy on the Euston estate. Indeed there is the story of how Cyril Blausten together with Charles Clore and Sidney Kaye, on the opening night of the London Hilton, were trapped in the Hotel’s lift together!

The 1960’s saw the development in the Firm of a knowledge and strength for Mergers and Acquisitions on behalf of clients which has become a niche hallmark for the Firm and which it understands and enjoys to this day.

Not only did the work of the Firm expand in London but with a drive to develop in the regions and regenerate Cities and Towns Cyril Leonard were involved in major development projects and proposals in Manchester, Cardiff, Bristol, Hull, Ipswich, Havant, Taunton, Hastings and Felixstowe whilst in the South East of England in Sevenoaks, Aldershot, Bromley, Guildford, Richmond, Farnham and Hayes.

Sidney Kaye was one of the leading influential architects of 1960’s in London. For a short while he worked for the Firm as a draughtsman before joining the architecture practice of Lewis Solomon which designed the Europa Hotel (Marriott) on Grosvenor Square for Max Joseph.

1960s Cyril Leonard builds its reputation for high class Central London residential developments and sales Major developments with Taylor Woodrow, Wimpey and Wates in London and the start of out of London urban developments. St Mary Abbots Terrace and Abbotsbury Road Kensington and Holland Park – part of an 11 acre development on the Ilchester Estate.

Michael Faraday was an eminent surveyor and author of ‘Faraday on Rating’, the standard legal work on the subject for decades. Having written the first edition in 1896 at the age of 21 he took up a career in writing operas and plays, the most successful being The Chocolate Soldier which had a long West End run.

Fairfax Road, Swiss Cottage, London

The 1974 Oil Crisis devastated the Property Market leaving major property companies over exposed and consequently falling into Receivership and Liquidation. The Firm weathered this storm with some difficulty but unlike most others remained debt free – in fact throughout its 80 years of history it has never drawn down an overdraft facility with its Bankers. The crash and the stress it created, brought its toll on individuals. Sir Eric Miller who started his career at the Firm and went on to run the Peachey Property Corporation shot himself dead.

He also wrote one of the last Savoy operas. However many of his productions made losses and he took up surveying again after being declared bankrupt in 1914 and having to sell his interest in the Lyric Theatre. Whilst rebuilding his fortune as a surveyor he retained his position of Grand Organist of England awarded to him by the Freemasons.

However, coming out of the crisis the Firm acquired the long established professional practice of Michael Faraday and Partners which had been established in 1896 and with it clients including The Port of London Authority, The Racecourse Betting Levy Board and industrial groups in the pharmaceuticals (Ciba Geigy) and soft drinks sectors (Cantrell & Cochrane, now C&C).

1970s Boom, bust, boom South Lodge Court, St John’s Wood, London.

1970s Yanchep, Perth, Australia As markets recovered the Firm took advantage of opportunities and was awarded a contract with Alan Bond’s The Bond Corporation of Australia as Sole European Agent for the 20,000 acre (8,100 hectare) Yanchep Sun City project near Perth.

Developed around the 1977 America’s Cup Race the project eventually faltered as Australia first lost the race and then Bond encountered financial difficulties. The Firm helped negotiate a transfer of the project to Tokyu Development Corporation of Japan, the original JV partner.

The recovery post 1974 was slow but many new developers, and some old, rebounding from huge losses, took hold of major new developments and the Country benefited from Margaret Thatcher’s Enterprise Zones. There was a niche in the market place for those dealing with Receivers’ of failed property companies and their assets. To know Cork Gully was to know ‘opportunity’. The famous Marine Ice Cream Parlour in Chalk Farm, north west London on a Saturday afternoon, may not seem the most obvious place for Cyril Blausten to broker the purchase and sale of one of London’s most prestigious apartment blocks, South Lodge Court in St John’s Wood; nor to sell three Property Companies with advantageous tax structures, and an Hotel in South Kensington. However such was the rebirth of opportunism for the likes of Cyril Leonard’s clients. The 1980’s saw a further development of the Firm’s Corporate work advising on the acquisition of the multi branch Laski’s Hi Fi business, a major corporate sale to Estates and Agency Holdings which it still retains as one of its major assets, Kings Court in Tottenham Court Road,

and the co investment of the Cardiff based Wyndham Group and John Williams of Cardiff PLC in Cyril Leonard’s private client Oakburn Properties PLC. For both those investors the Firm became solely retained to build a substantial set of property portfolios primarily based in Wales. At this time though the centre of Corporate Consultancy attention was on the Texan Ross Perot’s Electronic Data Systems Corporation which established its first ever overseas office in Cyril Leonard’s headquarters building in London. The Firm worked with the corporation over the next 14 years in the UK, Belgium, Holland, Germany, Spain, France and Singapore as they advised on real estate acquisitions, strategy, corporate acquisitions, and a major sale to General Motors. By the mid 1980’s Cyril Blausten and Douglas Blausten (who joined the Firm from the City in 1978) were joined in the equity of the Firm by Andrew Hogge (joined in 1980 from a public property group) and Simon Blausten (who joined from a City Firm in 1982).

1980s After 46 years as a founding equity partner Leonard Blausten, who pioneered and led the Firm’s project management practice, retired from the Firm in 1980. He died in 1990.

The property market crash of 1989/1992 was an opportunity for the Firm to build and develop its Corporate Real Estate work. The concept originated out of the USA market and the Firm successfully adopted it here both in the UK and other European countries.

Work for EDS and First Group, West Coast Mainline, General Motors, Gallup,Steelcase, Ciba Geigy, Moores Business Systems, Reliance Industries, Invesco, Alstom, M.A.N. Industries, AEA Technology, Abbott Laboratories and other major Transport and Pharmaceuticals groups has enabled the firm to establish niche specialisations and maintain these into the 21st Century.

1990s US corporate culture This North American client activity led to a host of other USA corporate client instructions and a major exposure to US Corporate culture which has been developed and nurtured ever since.

Not least was our involvement with Getty Images as they acquired our client Tony Stone Associates and there developed a 15 year relationship in the UK and Germany as the company acquired the BBC Hulton Picture library.

1990s Cyril Leonard’s Corporate Real Estate work has taken the Firm to advise corporations on strategies, projects and mergers & acquisitions in the UK, Spain, Italy, Belgium, Holland, Czech Republic, France, Switzerland and Germany and advise as team members on corporate real estate on M & A transactions ranging from €25 million to €60 billion over the last 20 years.

If Corporate Real Estate Strategic Consultancy work is a way of knitting the varied specialist disciplines of the Firm together such work has been no bar to Cyril Leonard building on its other core work of Investment & Development Consultancy and Building Consultancy & Project Management. As our Corporate work covered cross border portfolios we opened an office in Munich and formed an association in Paris. Stockley Park, Heathrow, London

In 1996 Cyril Blausten retired after 62 years to become a Consultant for two years. He died in 2007.

As boom and bust cycles go the 2008 Post Lehman economic mayhem was as bad as it could get – worse some say than the 1930’s crash. No one was immune from the effects but in that post crisis period the Firm continued on a debt free path notching up notable transactions across its various disciplines.

Today we undertake about £300 million of investment and development sales and acquisitions and Project Manage over £250 million by value, of development and refurbishment instructions each year. We manage assets in 17 countries in Europe from property management to asset management contracts – about 100 properties from single units to industrial estates, business parks to high quality apartment blocks the concentration being in the United Kingdom and Germany.

2000s Munich office 13 years ago we established a presence in Germany and have maintained a thriving office in Munich for over 10 of these years, it’s largest investment deal being a €240 million portfolio investment transaction. The office project manage facilities for clients in 17 European countries and has a strong Asset Management and Corporate Advisory base.

2000s The growth of Corporate Real Estate Consultancy work – winning awards In 2003 in perhaps our largest instruction to date we advised the Anglo French industrial group Alstom on a €700 million pan European disposal and sale and leaseback project in 7 countries – unique of its kind. Our work won a major industry award.

2010s The Firm’s Munich office was instructed by the World Monument Fund to advise on a structural and restoration project and then project mange the building works to this fine “World Heritage” building in St Petersburg, Russia.

The Chinese Palace Orenienbaum, St Petersburg

The Firm helped fund the redevelopment of a histroic city centre site in Edinburgh – “The Development looks at peace with the rest of this historic street.”

Cyril Leonard advised LaSalle Investment Management on the acquistion and funding of a 260 bed hotel in the centre of Edinburgh which was prelet to Accor on a 20 year lease with annual RPI linked rent reviews. . The firm also acted as development monitors from inception to completion.

The Royal Institution of Great Britain

The trustees of The Royal Institution of Great Britain, founded in 1799, instructed Cyril Leonard to advise on options for generating either revenue or capital receipts through leasing or the sale of parts of it’s Grade I Listed Heritage property. This instruction required input from the firm’s leasing, investment, construction and asset management teams.

Regent and Margaret Street, London

The firm assisted clients in taking full advantage of opportunities to buy distressed assets during the post 2008 recession including the acquisition of Marcol House in Regent Street which was redeveloped behind a retained façade by Great Portland Estates and the entire 100,000 sq.ft. office headquarters was pre-let to Savills plc who were relocating from their Grosvenor Hill property which Cyril and Leonard Blausten developed in the 1960’s. GPE reported a profit on cost of 75%.

2010s The Firm advised major European investor Meyer Bergman on the Waterstones flagship store on the south side of Piccadilly. The Grade 1 Listed Building provides 66,317 sq ft of net useable floor area. A price in the region of £67m was paid. Cyril Leonard also provided technical due diligence to support the acquisition.

Piccadilly, London

Our environment We do care about our environment and in the way we conduct our business we constantly take and refine measures to improve our sustainability credentials. In 2013 we formed an association with the new business, Heritage Futures Partnership spun off from the Cambridge Centre for Climate Change Mitigation Research’s Cambridge Retrofit Project. It specialises in retrofitting Heritage/Listed buildings to improve their sustainability.

Advising on over 60 million square feet of industrial manufacturing and research facilities across Europe.

The 21st Century has seen the Firm continue the transformation into a thoroughly modern and forward thinking professional services firm with a niche platform based around Investment and Commercial Brokerage, Project Management and Corporate Real Estate supported by Property and Asset Management and Professional Landlord and Tenant Advisory Services.

Advising on High Speed Test Tracks, London Underground, Mainline transport facilities.

We have also developed a significant presence in the UK Infrastructure development, funding and investment sector. Our work covers Offshore Wind Farm, Electrical Grid Testing & Research, Large-scale Turbine Engine, Rail Transport, Pharmaceutical Manufacturing and Research facilities in the UK and mainland Europe.

Advising on offshore energy projects.

Our commitment to work in the sustainability sector is extensive and we are partners in the specialist business of Heritage Futures Partnership which undertakes project work with Listed Buildings and in the Retrofitting of heritage properties.

Business in the community

Raising £10,000 for the Mental Health Foundation in our 80th Year.

For 80 years, long before the term ‘Business in the Community’ became a common phrase the Firm and its Partners have been dedicated to community giving both in cash and kind. In all sectors of the community have we made significant contributions – for young people, for the elderly, for those with disabilities. For a period of 15 years one of our partners dedicated time to run a programme for a national welfare charity building and developing 12 homes for the elderly.

We have helped, as a Firm and in our individual capacities and worked for over 50 charities. Many individuals have taken on tough personal challenges to achieve high levels of generous giving. This year we are proud to dedicate our efforts to raising funds for the Mental Health Foundation to help improve lives of people with mental health problems and to tackle stigma and discrimination.

Douglas Blausten

Douglas and Simon Blausten, with Andrew Hogge have worked together as partners for over 30 years and have over 100 years of service at the Firm between them. They carry on the heritage of the business, its sense of continuity and depth of experience available to clients.

Simon Blausten

On the back of this proud heritage they are building succession and developing the quality of skills to match the demands of the future. All at Cyril Leonard greatly respect and value the loyalty of their clients and friends and will continue to be proactive in serving their needs.

Andrew Hogge

Cyril Leonard Chartered Surveyors 22 Gilbert Street Grosvenor Square London W1K 5EJ, UK

Cyril Leonard Pettenkoferstr. 20-22 80336 Munich, Germany

T: +44 (0)20 7408 2222 F: +44 (0)20 7491 4292 www.cyrilleonard.co.uk

T: +49 (0)89 54 41 55 0 F: +49 (0)89 54 41 55 99 www.cyrilleonard.de

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