Property Focus: The Interview – Andrew Osborne

PROPERTY Focus returns with the regional director of fund manager Highcross, Andrew Osborne, who talks traffic jams and how much he likes his office.

If you are interested in taking part in ‘The Interview’, please email tamlyn.jones@thebusinessdesk.com and click through to see all our previous Property Focus Interviews.

1. What are your views on the current state of the commercial property and property development markets?

Pricing is still relatively keen for us but we are seeing good opportunities from a variety of sources. Our recent acquisition of the Maybrook Road Industrial Estate, in Brownhills, is a good example.

There are early signs that vendors’ pricing aspirations are falling and we see this as a good indicator of opportunities ahead. However, we see limited value currently in development. Existing buildings can be bought at a significant discount to the cost of development and we believe this will continue for some time to come.  

2. What are the key challenges and pieces of legislation you think will most affect your sector over the coming months?

The low interest rate environment has meant lenders are more comfortable to take the interest payments and consequently we feel pricing is unrealistic. Until the banks start to lend more, investment volume activity will remain low.

The lack of empty rates relief continues to hold back decisions on capital investment on existing vacant buildings but we cannot see this changing for the foreseeable future.

3. Why do you think the West Midlands is a good place to do business?

The local investment market is very well informed and being based locally gets us into positions we might not be able to find if we were based elsewhere. We see the Birmingham office market as a rising star occupationally and feel that there will be good opportunities for investment here in the near future.

Additionally, the West Midlands offers one of the UK’s strongest manufacturing bases and the local industrial market is also set for improvement in rents and capital values.

4. What is your favourite building/development in the West Midlands and why?

Livery Place, on Livery Street, which is the building we occupy in Birmingham. Having acquired the property, we comprehensively refurbished it to grade A specification, and have since successfully let a large proportion of the vacant space in a very difficult market. It is also a great office to work in and we all enjoy coming to work in the morning.

5. If you could improve anything in the region, what would it be?

The national perception of Birmingham and the local area has improved over the last five years but still needs further development. There has never been a better time for inward investment and I believe local government holds the key to making further improvements.

6. What barriers have you faced during your career and how have you overcome them?

I have a very positive outlook and see barriers as opportunities.

7. What was your first job and how did you enter your current line of work?

After graduating in the early 1990s, I started out as an investment agent for Mason Philips in the West End of London, in much the same market we find ourselves in today.

It was in this market that early property companies were started and eventually prospered. I feel we are in a similar position and are excited about the prospects for the future.

8. What do you most enjoy about your job?

We are entrepreneurial in our outlook and I enjoy finding effective and safe ways to improve profitability through investment acquisitions and sales.

9. What is the best piece of advice you’ve ever been given?

To always leave the house early and avoid the rush hour traffic into Birmingham. The M6 is my second home.

10. And the worst?

To get the train.