Cornerstone FS (AIM:CSFS) PLC has appointed a new team to market services to businesses located in Asia, with a primary focus on firms supporting high net worth individuals acquiring real estate in the UK.
This is a growing market and these appointments also support Cornerstone's stated strategy of increasing its direct business by acquisition and team hires.
The new team, which will be based in London, has joined from Vorto Trading Ltd.
Vorto provides international payment services to individuals and organisations primarily in European and Asian markets, and is Cornerstone's largest white label partner.
The appointments are expected to deliver a substantial increase in revenue and will be profit-enhancing. The team, consisting of Chen Xu, Qianjun Wang and Qian Wan, will receive compensation packages that are likely to include performance-based shares.
The UK real estate market is an established investment destination for high net worth individuals in Asia thanks to its transparent legal and tax system, relative political stability and the significant number of high net worth individuals, or their families, who come to the UK for education.
This demand has increased as a result of the pandemic, particularly for prime residential property, led by qualitative lifestyle choices as well as the desire for second homes near to family around the globe, such as children in UK boarding schools.
What’s more, this trend is set to continue as Asia is forecast to see the fastest regional growth in ultra high net worth individuals over the next five years.
"We are pleased to have appointed this new team to focus on expanding our direct business from companies servicing HNWI investment in the UK from Asia,” said Julian Wheatland, chief executive of Cornerstone.
“This is a large and growing market opportunity, which has been accelerated by the pandemic and desire for the lifestyle that is offered by prime residential property locations in the UK. This also represents the first step since our IPO towards executing on our strategy to expand our business. This team has previously driven transactions through our platform on a partner basis and will now be doing so directly, thereby generating higher margins.”