VERTICA Realty Group - News - Details - Business Journal Interview with The Managing Director, Mohamad S. Sinno

1. Who are you?

Carrying more than 20 years of professional experience thanks to senior positions in the Real Estate Development and Investment, Marketing, Communications and Sales fields, today I am the Managing Director of VERTICA Realty Group - a company established 8 years ago, whose mandate is to market and sell real estate in the Lebanese market - and the Chairman of VERTICA Investment whose mandate is to promote international real estate investment.

I am a board member and the Vice President of the Real Estate Syndicate of Lebanon (REAL) and a
Member of:
1- The Lebanese Food Bank
2- The National Association of Realtors (NAR)
I am inspired by Rafic Harriri, late prime minister of Lebanon, and HH Sheikh Mohammed Bin Rashed Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai.
Life Quote: What doesn’t break you makes you stronger
International Recognition:
When you work hard and keep raising the bar, you get rewarded. So it all started with the prestigious London-based OPP Awards for Excellence in 2014 where we were recognized as the Best Real Estate Agency in the Middle East, followed by the International Property Award for Real Estate in 2015. In 2016, we made it a double victory by winning the International Property Award for Real Estate in Lebanon 2016-2017 in addition to being recognized for having the best real estate agency website.
To be recognized as one of the best in the Middle East is a huge accomplishment, considering how competitive the real estate market is in this part of the world. This is the outcome of our consistent hard-work and continuous focus on delivering the highest quality of services to our clients/investors.
How much did your personal connections with influential people and VIPs help you in achieving your goals?
Networking is one of the most essential tools in the business world and it is extremely important for entrepreneurs.
Communication and strong presence in the entrepreneurial ecosystem are productive approaches which will help to open new doors, build strong relationships with different age groups, nationalities and fields of interest.

What are the parameters of your success?

Success is relative and each person is the only real evaluator of his success. So my parameters of success are as follows:

1. Lead by example.
2. Keep raising the bar: I am never satisfied with “average”, because average expectations bring average results. I always aim to raise the bar higher with every record I put out in order to reach levels of success never I attained before.
3. Keep learning and developing your skills (be up to date).
4. Make sure to always add value.

• What’s REAL?

REAL was founded as an association in 2009, and then became a Syndicate early 2013. Having started with 20 members, REAL has today more than 200 members who make one of the most important economic sectors run more efficiently and trustily in the country.
Congratulations for being recently elected as a REAL board member and Vice President, what are your plans for that?

Thank you; it was indeed an interesting step. I have always understood the importance of our business and its impact not only on the economy but on the reputation and image of Lebanon as well. Therefore, I have seen a great opportunity in REAL, so I started by being an active member and today I am one of its board members and its Vice President.

I highly appreciate the fact that the previous President Mr. Fares Massad voluntarily resigned from the Syndicate to give the opportunity for new blood to come in, which is something very rare to see in Lebanon.
As for the future plans, we still have a long way to go. I am working closely with the President Walid Moussa and all the board members towards clear objectives in order to take REAL to the next level.
We have a lot of potential and I encourage all related businesses to be under the Syndicate as we all share the common interest of making it stronger. Our plan is to organize the sector in a professional way through education, training, legal support and eliminating the unprofessional brokers who give a negative image; hence, offer a negative experience.

2. What’s the story behind VERTICA Realty Group?

VERTICA Realty Group was launched in 2010 with the core mission to provide professional and transparent real estate services that were missing in the Lebanese market, as well as to foster the confidence of foreign investors in the market and attract the Lebanese expatriates to invest in their home country.
The company ran its business and operations from Beirut and our vision has been focused on being one of the region’s leading companies specialized in the Real Estate industry.
The services we provide at VERTICA Realty Group are brokerage & consulting (property valuation, financial structuring, mortgage advisory in addition to sales and marketing strategies).

• Lebanese real estate market status and the way forward
For the past 5 years or maybe a bit more, we have seen a dramatic slowdown in the real estate market in Lebanon. So the market went through a correction and prices eased, which is normal during tough times.
But Lebanon has been proven to be resilient and survived even during the worst times. For example, during the global financial crisis, the Lebanese real estate sector was not affected at all, but on the contrary, it was booming when big global cities were falling down.
For that reason, and in comparison with other regional markets, we always believe in the great potential of the Lebanese market and how it can attract both foreign investors and Lebanese expats. In addition to that, having approximately over 15 million Lebanese expats versus only 5 million Lebanese residents is a very big opportunity for our real estate business.

Moreover, if we go back in time and explore the history of the Lebanese real estate business, we see how we have always been an attractive and a winning business for the below reasons:
o Lebanon’s strategic location: gateway to the Middle East and Europe
o Multilingual population
o Strong education system; we have the first American university in the region
o Tourism
o Best medical services in the region
o Developing economy
o Strong banking sector

• Status of the Lebanese market today
We can see a lot of fluctuations in the market, where we can witness a good quarter V/S a bad one. That’s not surprising given the instability in the region in addition to the low oil prices.

• Conditions of success in your opinion?
Even in tough times and crises, always look for the opportunity, it’s for sure lying down somewhere, grab it.

• VERTICA Realty Group future plans
We are looking to expand our team and operations to cover more potential areas in Lebanon. In addition to that, we will explore some development projects.

• What is a “safe investment hub” in your opinion? When will Lebanon become a “safe investment hub”? How much does it need to reach that stage?

It is difficult to classify Lebanon as a safe investment hub today because of one major issue that is corruption and outdated regulations. Once we remove the corruption from our system and update our regulations, I believe Lebanon will be one of the safest and most attractive investment hubs in the region.

Elements of a successful investment environment:
1. Transparent regulations
2. Stable and growing economy
3. Foreign investment attraction and protection
4. Updated legal system – regulations
5. Facilities for local and foreign investors

3. What’s the difference between VERTICA Realty Group and VERTICA Investment?

• VERTICA Realty Group focuses on the Lebanese market while VERTICA Investment is the international real estate investment arm.

Based on market research and the demand of our investors, the idea of creating an international investment arm was born. So we established VERTICA Investment with a clear mandate that is to create innovative income generating asset products as we have seen that the future of real estate investment is going into that direction.

4. Which areas are you covering?

Initially, we are focusing on the United Kingdom market, with other markets under negotiations.

5. Why the United Kingdom?

The United Kingdom remains a “safe haven” for investment in an unpredictable world despite the Brexit.
The country has been proven more resilient than expected with transparent regulations and a legal system that attracts and protects both the local and international investors.

6. Could you elaborate more on your investment products?

Our main focus:
1- Selling residential properties in central London (ready and under construction)
2- Real Estate development and refurbishment projects in main British cities
3- Our rising star product – Income generating asset (Elderly Homes)
Elderly Homes is a fully-managed income-generating asset funded by the UK government providing 8% guaranteed net rental returns for 25 years. By investing, the owners will get a 100% legal ownership with a title deed registered in the UK Land Registry.

This is one of the safest and hassle-free investment products in the United Kingdom and until today, we have completely sold two full projects.

7. Future plans of VERTICA Investment

We are looking at other markets within Europe that could be as attractive and safe as the United Kingdom. We are also looking to structure new investment products based on the market demand.

8. How active are you on the social front?

I have always believed that if every company / person thinks about helping others, the world could be a better place for sure. At VERTICA, we looked at different options and felt that hunger is the most dangerous issue we are facing in our community these days. Therefore, we have joined forces with the Lebanese Food Bank and today I am one of its board members.
The Lebanese Food Bank is a non-profit organization established in 2011 by a group of Lebanese businessmen to eliminate hunger in all Lebanon and raise awareness on how “Not to Waste Food” by establishing partnerships and cooperating with all stakeholders.

9. What personal qualities and professional qualifications a real estate consultant should exhibit to overcome major obstacles and challenges and to facilitate his tasks?

In order to legally perform real estate consultancy in Lebanon, the consultant has to be registered first in the Real Estate Syndicate of Lebanon (REAL) in order to be a trusted broker recognized in the market, represented by a legal body and backed up by a strong experience in the field, while performing as per the standards and ethics of the business.

In addition to the above, for a real estate consultant to be classified as an expert, he / she should have the following qualifications:

1. A good educational background
2. Proper understanding of the rules and regulations
3. A basic know-how of the legal framework
4. Ability to do a proper market and property evaluation
5. Completing the real estate course at the American University of Beirut