Fresh Start chief mulls private equity options

FRESH Start Living chief executive Charlie Cunningham says the company is in talks with private equity buyers about selling a stake in the business.

Mr Cunningham, who joined Salford-based Fresh Start Living from London-based finnCAP two months ago, had previously indicated that the company would seek a flotation on London Stock Exchange’s Alternative Investment Market.

Speaking to TheBusinessDesk.com Mr Cunningham said Fresh Start was continuing to work towards a float, although it is “aware that it’s not the only option open to us”.

“Obviously, there have only been about four or five companies that have floated on AIM this year and they haven’t been at great valuations. So if somebody comes to on a private equity platform and offers us a lot more…then we be mad not to look at it,” he argued.

Mr Cunningham said that both he and new finance director Oliver Lightowlers had been brought on board “to increase transparency and to open the company up to scrutiny.”

He said: “Whatever happens, the plan is still (to be) in a position to do an IPO. We’ve done as much as we can already. We’ve made it very clear on the website about which properties we own, how people invest, what the structure is, what the timetable is on completion of buildings that people have bought off plan and all that sort of stuff.

“We are in the process of making the company as transparent and open as quickly as possible. We will continue to do that.

“I would expect in the autumn this year to have the same amount of information in the public domain whether or not we are a public company.”

Until recently, Fresh Start Living Ltd and at least 25 other active firms with a Fresh Start Living or FSL Properties prefix were being run by sole director Philip Wright, who was previously a director of Salford-based developer Wrightchoice Developments which collapsed with debts of around £4m last year.

Until last year Fresh Start Living Ltd and several sister firms were run by Salford businessman Andrew Camilleri. He resigned in January 2011 three months prior to being declared bankrupt. Companies House records show that ownership of the businesses then transferred to Alan Pierce, who is related to Mr Camilleri.

Mr Cunningham has said that customers who had reserved properties on schemes that stalled have all been offered the opportunity to switch to other Fresh Start schemes.

He also said that “the bulk” of those customers to whom it recently sold a portfolio of Greater Manchester properties, which it had failed to purchase from receivers, had now had their reservation fees returned.

He said that a final decision on whether to float the company or nor depends on “if we can bring a partner on board who can add more value”.

“There are private equity firms out there – specialist investors – who can add value to the firms they invest in other than just adding cash.”