Lending a hand

Uncertain times give pause to those future-minded people among us. Inevitably, thoughts turn to financial security, a factor many believe they can control. In an age where wealth takes a different shape from person to person, however, control over one’s financial stead has become more than a matter of money.

According to George Gadallah, Co-Founder and CEO of Sydney investment house Princeton Financial Services, it’s a matter of trust.

“When you’re a part of this industry, you’re ultimately responsible for people’s money. They’ve invested and entrusted you with their fortunes,” he tells The CEO Magazine.

It’s a responsibility Gadallah and the Princeton team take seriously, and one they understand implicitly after years of experience in the field. A former property finance executive at ANZ and St. George, Gadallah saw an opening to branch out on his own during a time of great upheaval in his industry.

“It became abundantly clear to me following the wipeout of non-bank lenders during the 2008 global financial crisis that there was a niche,” he recalls. “Whenever you start any business, you’ve got to be sure there’s a niche for you.”

With this niche in mind and the concept of trust firmly at the helm of the enterprise, Gadallah focused on executing his plan.

“I put my blinkers on and didn’t worry about the competition. They’ll do what they do. Provided your idea and execution are good, if you focus on your game, the results will come off at the back end,” he says.

Building a brand

That result came in 2012 with the establishment of Princeton, which specializes in commercial property lending.

“When you look at Princeton, you’ve got a lending business, a development business and a fund management business, and each has its own target audience,” Gadallah says. “As we built our brand, there was always a relentless pursuit of innovation and better living.”

One of the company’s key strengths is the ability to identify trends.

“We could see the amount of developments coming on in the market. Dwellings were falling short of demand and we saw that over a number of years,” he adds.

To Princeton, this was a prime opportunity to create a Sydney portfolio that was uniquely diversified.

“The property market isn’t some homogenous thing. There are different segments: the upper-end luxury market, prestige, the middle market and the first home buyer. Even within those there are different classes,” he points out.

“We have hit every segment as well as different target audiences. There are the western suburbs, which are recession-proof. Our Rockdale project is aimed at first and second home buyers. At Blakehurst and Botany, we’re focusing on downsizers.

“There was a baby boom during COVID-19, so we focused on those moving from units to townhouses in South Sydney. You see where your market is and the available supply, and you make a call on the demand.”

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“Princeton is a forward-thinking asset management group that brings and manages sound property investments and property developments for its investors. Quality returns, combined with quality assets and a sound approach, are the cornerstone of the Princeton way. The group is not afraid to get involved in challenging projects, where the outcome is always unique and a great satisfaction.” – Tim Carrick, Managing Director, Primus DMS

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Initially, Princeton found itself in a niche all its own, but Gadallah says eventually the competition came calling.

“By 2019, competition was tougher than anything I’d seen before. It’s one thing getting in first, but staying in business or staying on top or having a lot of people go past you is something else altogether,” he says.

The crowded marketplace drowned out Princeton’s voice, leading to a time of reflection and renewal for the company.

“In that first iteration, we didn’t have strong enough branding,” he admits. “I promised myself I’d never allow that to happen again. Today, our branding comes first.

“A business has got to innovate and rejuvenate at different times. You’ve got to keep adding water for that plant to grow.”

Navigating challenges

For Princeton, that growth is a matter of differentiation and a strong outcome rather than quick wins. Gadallah and his team have carefully considered the current situation – high inflation, high interest rates, high cost of living – and crafted a product that speaks to those pressures.

“Creating competitive tension in such an economic environment isn’t the way to go. You have to create an environment that’s based on mutual respect and collaboration,” he advises.

“You incentivize to reach a common goal and that’s what propels your organization forward. There is merit to the manufactured competitive tension, of course, but not during, as the Reserve Bank calls it, restrictive times.”

In doing so, Gadallah believes he has gotten to the heart of Princeton’s promise and, through its strong partnership with McCann Australia, built a digital footprint for a business still able to fill a niche without any outside pressure.

“We’ve never wanted to be the biggest or the best; we just want to deliver a very good outcome for our stakeholders, our staff and ourselves,” he explains.

“You’re growing organically in a disciplined way because that’s longevity. Whatever sprouts up quickly comes tumbling down just as quickly.”

Other partners, including Primus DMS, are equally vital to the company’s success.

“There is a whole big, wide group of service providers and strategic partners that keep this show on the road,” he confirms.

As the head of an aspirational brand such as Princeton, Gadallah still believes there’s always a better way; finding it just takes time and focus.

“The only way you can do things better is with research. Ask a lot of questions, talk to different people and then form your own view,” he advises. “The foundation of anything is research and understanding.”

He adds that’s just as much an internal matter as a branding exercise.

“I’ve had my successes and failures, high points and low points,” he admits. “I park my ego and treat people as humans. A lot of people feel the need to patronize and condescend or play power games. I find that an absolute waste of time.”

Instead, Gadallah – and by extension, Princeton – operates on principles of understanding and trust, streets that go both ways.

“As a business owner, it’s my first and most important responsibility to promote Princeton’s achievements,” he says. “Ours isn’t a fake it till you make it story.

“And if somebody else can learn from the things we’ve done or provide some insight into how they did things differently, that’s when real innovation occurs.”