Tycoons plough millions into Select Property

RETAIL moguls Lord Rose and Terry Green have made a combined multi-million pound investment into Cheshire-based Select Property Group, a global developer, retailer and operator of investment property brands.

The duo join a host of retail names involved in the business including Angus Monro, former chief executive of Matalan and Instore, and Trevor Moore, former CEO of Jessops and HMV, who both hold board-level positions at Select.

Pivotal to the decision was the Group’s retail-led approach which is unusual within the property sector but gives Select control over every aspect of the property investment lifecycle.

Select create end-user focused brands, develop the schemes, sell them to investors, and finally find the tenants prior to operating the buildings.

This approach ensures a strong, long-term product which is bound by exceptional customer service.

It includes the Group’s Vita Student brand, the UK’s only experience-led student accommodation provider which delivered 100% occupancy across its six schemes in 2014/5 academic year despite rental prices being 15% premium to market.

Select has completed 969 Vita Student units, with 366 due for completion in September for the 2015/2016 academic year.

Across the Group’s portfolio of brands, a further 1647 units are under construction with 871 due to start construction in 2016.

Lord Rose is best known for his time as chief executive and chairman of Marks and Spencer and, until recently, he sat on the board of Land Securities, the UK’s largest commercial property organisation.

Speaking about the investment, Lord Rose said that the property market could learn a lot from the retail industry: “Select’s unique approach to the property market makes the company a particularly interesting investment. While other providers focus on development, with the sales and operational activity often outsourced to third parties, Select’s control over the whole process allows it to manage every aspect of the investment lifecycle.

“The years I spent at the heart of retail means that I deeply appreciate the value of great customer service, and this is closely reflected in Select’s philosophy. This retail-led approach has enabled them to deliver an exceptional product in the student accommodation sector, a formula which I believe they will go on to replicate across multiple markets.”

Terry Green made his name in retail during his time at Debenhams in the 90s and met Lord Rose at the Burton Group before undertaking further board-level positions at BHS and Tesco.

Green added: “The company and its board have a clear vision to develop and maintain brands that understand the end user and cultivate customer loyalty, all of which equates to a high-performing investment.”

Mark Stott, chief of Select, said: “We’re delighted such prestigious retail leaders have invested in the business. This adds further validation to our approach to investment property and marks an exciting time for Select Property Group.”

Select Property Group has six fully operational student schemes in the UK under its Vita Student brand with three more in development.

The group is also in a JV partnership to deliver the residential aspect of a £750m mixed-use scheme on the former BBC site in Manchester which will launch a brand new private rental sector brand yet to be announced.

The flagship site of its CitySuites brand aimed at the business traveller is also in development at another Manchester city centre site.