Principal-agent issues in asset acquisition: UK institutions and their investment agents

This paper explores principal‐agent issues in the stock selection processes of institutional property investors. Drawing upon an interview survey of fund managers and acquisition professionals, it focuses on the relationships between principals and external agents as they engage in property transactions. The research investigated the extent to which the presence of outcome‐based remuneration structures could lead to biased advice, overbidding and/or poor asset selection. It is concluded that institutional property buyers are aware of incentives for opportunistic behaviour by external agents, often have sufficient expertise to robustly evaluate agents’ advice and that these incentives are counter‐balanced by a number of important controls on potential opportunistic behaviour. There are strong counter‐incentives in the need for the agents to establish personal relationships and trust between themselves and institutional buyers, to generate repeat and related business and to preserve or generate a good reputation in the market.

The organization of construction research in British universities

The paper provides details of the size and scope of construction research carried out in a number of architecture, civil engineering and building related departments in British universities. After considering the level of funding, the type of research projects undertaken and the resulting outputs, especially how these benefit industry, the paper focuses on the careers of academics and researchers and the way in which research is organized at university, departmental and team levels. Finally, the paper suggests that whilst the construction research community in universities has many strengths, there is a danger that in responding to recent opportunities it may overreach itself. The end result may be disappointing for all parties involved. Some of the factors which would contribute to an effective approach to the development of links between universities and industry are discussed.