FACILITIES MANAGEMENT
BANK BALANCE
VS LIFESTYLE
EBOTSE GOLF AND COUNTRY CLUB
OVER THE PAST SEVERAL MONTHS I HAVE
ENGAGED EXTENSIVELY WITH RESIDENTS,
CONTRACTORS, COMPANIES, CLIENTS,
REGULATORS AND OTHERS ON LEVERAGING
THE LONG-TERM APPROACH TO CREATING
VALUE FOR OWNERS OF PROPERTY WITHIN
A RESIDENTIAL DEVELOPMENT, WHILE
ENSURING THAT THE LIFESTYLE THEY BOUGHT
INTO IS AT THE LEVEL OF FAIR EXPECTANCY.
There is nothing inherently wrong with returning capital
to shareholders by means of lifestyle investments in a
measured fashion, as part of a broader growth strategy.
time, but to the company and its long-term owners.
Successfully fulfill ing that duty requires that the board
engage with a company’s long-term providers of capital,
who are the residents. They must resist the pressure
of short-term shareholders to extract value from the
estate if it would compromise value creation for long-
term owners and, most importantly, that they clearly
and effectively articulate their strategy for sustainable
long-term growth.
A board of directors has a tough task in response to
the acute pressure to meet short-term financial and
lifestyle goals, without the expense of losing long-term
value in an economy filled with uncertainty.
Indeed, it can be a vital part of a responsible strategy This pressure originates from several sources including
that protects the capital already invested with future the proliferation of shareholders seeking immediate
return possibilities. returns or savings on contributions, the ever-increasing
velocity of capital, a media landscape defined by the
It is critical, however, to understand that management 24/7 news cycle of political events, and public sentiment
and the board has a duty of care and loyalty, not to that often fails to encourage long-term investment if at
every investor who owns property at any moment in the cost of immediate returns and enjoyment.
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