Brothers expand property business after new finance package
TWO Black Country brothers are expanding their property company after the business secured a six-figure financing deal from Lloyds TSB Commercial.
Philip and Mark Stewardson launched Stewardson Developments after purchasing their first investment property in Cradley Heath in 1995.
Their initial goal was to buy 10 run down houses, refurbish and rent them out for their own retirement fund.
After realising the potential of the property market in the West Midlands, the brothers have expanded their business considerably, and now own a portfolio of 120 properties – both commercial and residential – within a 15-mile radius of Cradley Heath.
In 2002, the business diversified and concentrated on buying run down pubs which they have converted into a diverse range of commercial properties from chip shops to office blocks, while continuing to renovate a steady stream of residential developments to satisfy growing rental demand in the region.
The new financing deal has allowed the firm to purchase a further three residential houses, each worth between £100,000 – £150,000, and the business expects to purchase a further 10 over the next year.
Phillip Stewardson said: “We started the business over 15 years ago in the hope of having a small nest egg for our retirement, but it has gone from strength to strength.
“While the property market itself has slowed down since then, we are selective about those that we add to our portfolio and are confident that the value we add by carrying out the refurbishment will allow us to continue our success.
“Working closely with Lloyds TSB Commercial has been instrumental in being able to grow the business. They have been incredibly supportive over the years and genuinely show an interest in what we do.”
He said it was important to the firm to reinvest profit back into the business and the bank had been supportive of its aims.
“Occasionally we have to react very quickly to an unexpected opportunity and the bank has been extremely flexible and quickly laid out the options open to us to achieve our goals. These next three projects are an exciting addition to our portfolio and we aim to continue expanding at the same rate,” he added.
Paul Atkinson, relationship manager at Lloyds TSB Commercial, said: “Having worked with Phillip and Mark over the years, it’s clear that they have a strong business model and the industry experience that is required to continue to grow in a challenging market.”
