The
chief executive of Brookfield Asset Management has cast doubts on whether
workforces will turn away from city centres and offices after the coronavirus
pandemic passes.
“People are social
beings and have, for centuries, increasingly chosen to live with others,” Bruce
Flatt wrote in a letter to shareholders alongside the company’s quarterly
results. “We do not think that the current situation will reverse the
urbanisation trend that has been underway for a long time.”
Flatt compared the
current discussions about video-conferencing encouraging remote working to
arguments made around the inventions of the car, telephone and internet.
“None of these has
changed the fact that people favour being in cities and in offices,” he added.
“In fact, quite the opposite has always been true in past. These communication
tools historically enhanced great cities and offices rather than supplanting
them. We think this will play out the same way this time as well.”
He continued: “Offices
and cities have been designed to ensure that people can meet with others; that
offices incubate the culture of a company; and that they are important tools in
training and growing younger talent. While we have seen these interactions
constrained in the short term, we don’t believe this will alter the long-term
trend in any meaningful way.”
Brookfield posted a
loss of $656m (£500m) during the three months to 30 June. The company recorded
its best period yet for fundraising during the quarter, securing $23bn and
taking its total amount of unspent capital to $77bn.