PROP LAUNCH: Property Q&A with Paul Morris

PAUL Morris is development director at Leeds-based St James Securities.

Mr Morris recently joined the Leeds-based business to source and deliver development opportunities for the group.

St James Securities is aiming to return site acquisition and development mode after a period analysing the market.

1. Looking into your crystal ball, what are your predictions for the industry over the coming months?

“The bad news is that the occupational market will remain flat and the investment market outside London is equally slow.

“Property company insolvencies will continue to rise due to lack of (re)finance on loan maturity or breach of loan-to-value covenants.

“The good news is that it is a great time to acquire development or investment opportunities at rock bottom prices if you have the cash.”

2. How difficult is it to operate in the property sector at this time?

“The biggest difficulties are the lack of occupational tenants in most markets other than retail and the lack of funding.

“Many property businesses are spending more time working their existing assets than having the time or funds to progress new schemes.

“We are fortunate that we stopped developing in 2007 and have continued to sweat our assets during the downturn, thus putting us in a great position to bring forward retail-led schemes now.”

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

“Transport: Leeds is now so far behind Manchester, Newcastle and Sheffield. It is a total disgrace that we have been through the 1990s and 2000s and still have no integrated system.”

4. How does the Yorkshire commercial property market compare to other regions in the UK?

“All the regions are suffering compared to Central London, which is positively booming by comparison.

“Yorkshire will, however, fair better than many other regions due to its diversified economy. We have a good mix of manufacturing and financial services without being over-dependent on the public sector.

“Generally office take-up will be relatively flat this year. However, it will only take a couple of sizeable deals and the newly-built Grade A pipeline will be much reduced, leading to an upward trend on rents and lessening of incentives.”

5. What has been your biggest business mistake / achievement?

“My biggest mistake was rushing into a deal with a certain bank to buy £20m of distressed assets in early 2009, only to find banks and administrators don’t always keep to their word and being personally tens of thousands of pounds out of pocket at the end of it.

“My biggest achievement on a personal level is having survived the collapse of a business in 2008 and coming out stronger the other side. On a business level it was a ‘dream deal’ I orchestrated at the height of the market in 2007, needless to say I doubt I’ll ever repeat it!” 

6. What is the best project you’ve been involved in?

“It’s very hard to define the best project. However, the one I really enjoyed being involved with was relocating the BBC from Woodhouse to Quarry Hill. Not only is the BBC’s building a fantastic design, but it also houses the Leeds College of Music auditorium.

“The decision to move to Quarry Hill provided much-needed activity and regeneration to that area, but it also reinforced the area’s identity for the arts and culture.”

7. What drives you to be the best in your field?

“I have a real passion for property; I always feel a need to do everything to the best of my ability to make sure a project succeeds no matter what obstacles are thrown at me.”

8. Name the person who has most inspired you or has had the biggest influence on your career.

“I don’t think any one particular person has inspired or influenced me. I was definitely influenced by the many developer clients I had when in private practice, I yearned to cross the table from consultant to principal.”

9. What are the best and worst pieces of advice you’ve been given?

“The best piece of advice: be honest, it may not always be what people want to hear but you can never be criticised for it.

“The worst advice: just ‘wing it’, it’ll be fine.”

10. What do you most enjoy about your work?

“The challenge and no one day ever being the same as the last.”