In Conversation With…Steve Parry

NEPTUNE Developments, the Liverpool-based property development firm behind the city’s Mann Island scheme, is no fan of competitions.

Managing director Steve Parry said that the firm had entered a number of development competitions set by local authorities in order to gain the right to redevelop them.

“But we had a few decisions which we felt were wrong in that people who were appointed didn’t have the best or the most deliverable scheme, so we took a decision about four or five years ago to stop bidding.

“We pulled out from three things which had our names against them, and that was probably the best thing we ever did,” he said.

Since then, the firm’s strategy has been to work with its own partners more closely, and to create its own opportunities.

“We decided that we should focus on things where we could effectively negotiate deals, preferably in partnership with landowners.”

The £45m Baltic Triangle scheme is an example of this, where 201 apartments and a 180-bed hotel are planned. Some 129 of the apartments have already been pre-let to serviced apartments company Staycity and it is close to agreeing a deal for a further 43 units with a social housing landlord looking to offer purpose-built, open-market lettings.

“We’re also in negotiations with a couple of other users for  the site, including a four star-plus operator.”

The site, which is opposite the Kings Dock development next to the Baltic Fleet pub, has lain empty since the collapse of its previous developer, Windsor Developments, in 2007.

“I used to drive past it every day and think ‘that needs to get sorted’,” said Parry.
Which is what he did.

Parry said that the firm has a good relationship with Barclays, which had been the lender to Windsor Developments, and was working on its own flagship Mann Island scheme further along the waterfront so decided to offer its services.

“To be honest, that’s almost our approach to life. As opposed to doing competitions, If we see something and we’ve heard on the grapevine that someone has a requirement or we feel there’s a latent demand, we’ll do it.

“It makes things a bit more interesting, and it means we end up doing some random things.”

For instance, the firm is shortly due to submit planning to redevelop a site at the base of Chester’s 18th Century lead shot tower.

The Grade II*-listed tower was built to make shot for muskets used in the Napoleonic Wars.  Molten lead would be sieved through the top of the tower and by the time it fell to the base it would have cooled into balls used for rifle shot.

The site is once again in Barclays’ hands following the collapse of a company which previously announced plans to develop it known as Property Regeneration (Chester), but a new housing-led scheme at the base of the tower will see more than 50 new apartments, leisure and retail units being built. The bulk of these have already been sold to Chester & District Housing Trust.

Parry described the Shot Tower as “one of the most important structures in Chester”, and it is believed to be the oldest surviving shot tower in the UK.

“At the moment, there’s a fair amount of things to do,” he said. “The biggest issues for all developers is  securing lettings in an uncertain market – and we’re seeing certain areas where people are still very reticent. But we’re seeing others where things are moving.”

At Mann Island, the company has signed a deal to let a unit at Mann Island to restaurant chain Prezzo.

Mann Island, which is a 50:50 joint venture with Countryside Properties, should complete by the end of 2012.

“It’s been affected by the recession  – the values are a bit down on where it should have been – but because it’s the premium product in Liverpool in terms of residential and quality leisure and office, it’s done quite well.

“The apartments are continuing to sell, we’ve agreed a letting of the whole of block 3 to Merseytravel, who are about to move in at the end of March, and we’ve pre-sold that.”

Prezzo will take a unit at block one where it will join fellow restaurateur Brasserie Blanc. A mezzanine level in the building has been taken by the Royal Institute of British Architects for its regional headquarters.

Prezzo has also taken a unit at Neptune’s £60m New Brighton redevelopment, which is anchored by a Morrisons supermarket and an independent eight-screen cinema known as The Light. Both opened prior to Christmas and are trading well alongside Starbucks and a local independent restaurant, Brooklyns.

“New Brighton is part of Wallassey, and in the north of the Wirral there’s no other offer up there. Wallassey itself has 170,000 people, but there’s only one or two restaurants and no other leisure offer. So there’s a latent demand. And because it’s a seaside resort people like to go there from the rest of the Wirral and Cheshire.

“Before it was completed, there were some people who didn’t get it and weren’t sure if people would come there. But the trading in Morrisons, at the cinema and at some of the existing restaurants have proven that they will. We’ve got another national operator that’s just exchanged, so it’s all good news.”

He added that the Floral Pavilion theatre which was redeveloped as the first element of the improvements has seen its annual admissions increase from 70,000 to 270,000.

“It’s an example of a regeneration scheme working in the way it should.

“We’ve carried on in our own way, with a niche of regeneration and trying to deliver the best quality schemes we can.

“We’ve found that tends to bring repeat business. While we’ve spent a lot on schemes, there has been a payback.”