Property Focus: The Interview – Marty Gallagher

THE Property Interview this week meets Marty Gallagher, a director of the Gallan Group in Birmingham.

He is the third generation of the Midlands family businesses – JJ Gallagher Ltd – which specialises in property development and construction.

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?

My father and grandfather once told me “Remember, they’re not making any more land”. It is a maxim I have always remembered and as a result see the benefits of property as a preferred investment medium.

However, there are fundamental issues that still need to be worked through the system before the excesses of the last five years are behind us. Access to finance for development is still incredibly difficult, if not impossible, with banks effectively pricing themselves out of the market.

Having said that, an old Chinese proverb reflects that ‘every crisis throws up new opportunities’. In the last 12 months, and despite the wider economic troubles, Gallan has been successful in getting on-site with £60m worth of development opportunities. I consider us being one of the few who are relatively well placed to ‘dig out’ dome of those hidden gems!
 
2. What are the key challenges and pieces of legislation you think will most affect your sector over the coming months?

Where do I start? I would say access to finance is paramount. The Basel requirements for banks, bank recapitalisation and effective nationalisation of certain banks’ property books will also cause on-going issues.

Void rates will continue to inflict pressure onto landlords, restricting rental growth and speculative development and generally adding to the considerable drag on the property industry.

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

The central location of course, which gives companies like ourselves a superb base from which to access and serve our development sites and car parking business around the UK.

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

The proposed redevelopment New Street Station where work has now commenced, not least because many years ago Gallan made a strategic investment decision to be part of the wider redevelopment area.

More importantly however, I believe that the redevelopment of New Street is a prime example of how the worst of Birmingham’s 1960 brutalist architectural regime is metamorphosing into to a new iconic statement of architectural design that must be a pre-requisite to making Birmingham a true destination of choice rather than necessity.

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

New Street Station and Birmingham International Airport. Improvements are essential for the longer-term aspirations of the region. First impressions count and I can’t help feeling a twinge of embarrassment every time I meet an international investment partner flying into BIA or arriving at New Street Station in its current form.

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

The biggest barrier I have had to overcome is the turbulence around the globe and related issues that all businesses have had to deal with over the past 20 months. We have weathered the storm relatively well in that we have always focused on the fundamentals and steered a very cautious business path, even in the generous and plentiful lending environment of years gone by.

We are in business for the long term and being privately owned and family run we can take strategic decisions for long-term continuation rather than short-term cash flow. This cautious approach has served us well to date.
 
7. What was your first job and how did you enter your current line of work?

My first job was during the school holidays, working as a hod carrier in the family construction business. I took the opportunity to learn about the various disciplines in the development industry before qualifying as a chartered surveyor and working with Phoenix Beard and Gooch Webster.
 
8. What do you most enjoy about your job?

The variety. One day I can be working in the office with the team on a multi-million pound development. The next I can be out on site looking at a new location and assessing its potential for development or to operate and run our car parking business.

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

When the going gets tough, the tough turn pro.
 
10. And the worst?
 
Trust me, it can’t fail!