Veteran Nottingham developer unveils fresh plans for major city scheme
Property development is “a great game of pass the parcel being played on the proverbial decks of the Titanic.”
Those were the words of the Ken Grundy, one of the East Midlands’ most experienced and successful developers, at TheBusinessDesk.com’s exclusive property lunch last Friday 22 November.
Over 35 professionals assembled at the Park Plaza in Nottingham to hear Grundy offer invaluable advice on how to succeed – or how not to fail – in the volatile, “iceberg-inhabited waters” of the property market.
The event also saw Grundy reveal further details of his latest development, a major residential and student accommodation scheme on Cowan Street in the Eastside of Nottingham city centre.
Throughout his 50-plus years in the property industry, Grundy says he’s seen people repeatedly make the same mistakes. The key to success, he says, is learning how to avoid the icebergs.
He said: “I’m 75 now and I started in property in 1961, when I was 22 years old. In 1991 the crash all but wiped me out. Nobody sets out to be an unsuccessful property developer, but some set sail and find themselves in iceberg-inhabited waters.
“Certain events, such as economic crashes, happen time and time again. You need to be able to recognise when they’re coming. It’s relatively easy to make money in the property market when the banks are lending more and when there are more buyers than sellers. The icebergs start to melt day by day and the band plays on.
“However, seven years of greed took seven months to crash the whole thing in 2007. It was different to the previous crash because banks were made to bear the brunt rather than individuals. This inevitably had an impact on the property market, and it’s taken ten years for it to return to a buoyant state. In Nottingham this has been led by growth in the student accommodation sector.”
Nottingham’s professional community gathered to hear Ken Grundy
Grundy revealed that his original plans to create a huge development of student accommodation on Cowan Street have been altered due to an issue with the structure of the building.
Revised proposals for the site near St Mary’s Rest Garden have been put before the planners.
He said: “The plan has changed from a refurbishment job to a demolition and new build because the steel frame of the building was too problematic to provide student accommodation.
“We’re now looking to build an amalgam of residential apartments and student flats. The building will include 143 apartments, 330 1-bed student flats and 126 car parking spaces.”
Wrapping up a lively lunch which saw Grundy engage his audience in a literal game of the pass the parcel – the prize being lunch with Ken Grundy – the developer struck a note of caution.
He said: “People who make a lot of money often think ‘I’ll get into property’, but they’re going into a business they don’t really understand. If you lack the knowledge base it can be dangerous. You need to be able to recognise when the market is overheated. Don’t forget property is an illiquid asset and it’s massively affected by legislation as well.
“My advice for people looking to get into property development is this: get a partner who knows what they’re doing! Do a joint venture with somebody. There’s also still a market for light industrial property, so I’d recommend putting up a few small sheds which you can let.”
