Monday Interview: Peter Garrett, Managing Director of Keyland Developments

As the managing director of £6.5m-turnover property firm Keyland Developments, Peter Garrett oversees numerous active schemes of varying sizes at any one time and says that the firm thrives on embracing risks to regenerate key sites across the region.

The firm, a subsidiary of Kelda Gorup and sister company of Yorkshire Water, is responsible for taking plots of land that need remedial, often complex, work though the planning stages before then selling them. A large proportion of the land sold is former Yorkshire Water sites that are no longer in use and can be re-purposed. This includes plans to develop the 32-acre Esholt Waste Water Treatment Works into an industrial and residential development; for which a consultation is ongoing, a planning application is due to be submitted and a development partner is being sought.

But the firm has also focused on diversifying its revenue streams in recent years by also concentrating on a series of JVs with other property firms on a major schemes. This includes the 170-acre former colliery site at Skelton Gate in Leeds Aire Valley, which is being led by Templegate Developments – the joint venture partnership of Evans Property Group and Keyland Developments.

Keyland also now works with third party owners in the same way, which Garrett said has now built up a healthy pipeline “from a standing start four years ago.”

Garrett added: “We have hit turnover and profit targets and things have been much busier than previously expected.”

He said the property sector had had to continually respond to changes in the market over the course of his career in order to successfully navigate fluctuations in the economy and pricing. Garrett added: “Years ago, retail used to beat everything – residential, industrial, commercial. But now the values have dropped.

“We are still seeing good demand for residential sites. But prices for industrial sites is where things have rocketed; a very interesting sector to see grow with order fulfilment space needed for the online shopping demand.”

Garrett, who joined Keyland in 2007 and become MD in 2011, said that while he feels the residential market will “remain strong” he added that there is an in-balance between supply and demand. On how Keyland Developments is prepared for the changes in the market, he added: “It’s about spreading risk across all sectors and sizes.

“It’s also about doing the right level of due diligence and getting the best teams involved.”

The firm’s biggest site, in Wakefield, is for 2,000 units plus industrial space; while it also has a 15-unit scheme on its books in East Yorkshire. Overall, Keyland has around 85 lives sites that it is working on for Yorkshire Water, the smallest of which is a pumping station. Garrett added that the pace of sale was fast as assets become available, which is happening because of advancements in technology and environmental legislation which is leading to the de-commissioning of certain assets.

He added that it was great for him and the team members to be able to play their part in seeing areas being regenerated and “being brought back into productive use. We have a very collaborative approach to the planning process and actually quite dogged in our approach which has led to us securing a 98.3% success rate with planning. They key for us is to always do the right thing.”

Garrett added that while value was important, he genuinely felt that adding something new to a community or re-purposing land so it could be used once again was at the heart of all schemes. As such, the firm is “having a big push” on sustainable developments and are looking to work with contractors and builders who can deliver schemes in such a way once the sites have been sold. This includes factors like reducing water and energy consumption; even if it meant less of a financial return for Keyland Developments, he added.

“There are then rewards from a site way down the line, beyond any financial return,” said Garrett.

The firm is also currently working with seven landowners across Yorkshire, including farmers, which it takes all financial risk on for while it is going through the planning process “so there is no fundamental risk to the landowner.” It also has several £5m plus sites on its books. Garrett added: “It is about having that stock to replenish as soon as well sell sites.”

Garrett said: “It’s really exciting and incredible to be regenerating sites and assembling teams to make it happen. It’s great seeing the whole process complete.”

Whoever, he added that while there is a plethora of land available around Leeds, there was currently “a shortage of good, well promoted land.” The firm works all across the Yorkshire region but Garrett says that it was now looking at sites beyond – both further North and also in the East Midlands.

He said: “The biggest risks to our business is the supply of sites and the planning process. But they’re risks we embrace and the market is doing well.”

“I really enjoy what I do because it’s strategics, but also tangible. It’s good to be playing part in these developments – creating spaces, places and jobs.”