Member Article

Newcastle estate agents eye rental developments potential

Newcastle estate agents Walton Robinson say plans to expand their involvement in purpose built developments for young professionals could treble the size of the business in the next few years.

The firm’s founder and managing director, Mark Walton says opportunities for investors in the private rental sector are plentiful in the region.

Now Mark is turning attention towards institutional investors and appetite to develop purpose built living blocks in the city for young professionals, alongside the growth in student accommodation developments.

According to national property outfit, Knight Frank, the UK’s private rented sector has doubled in size over the last 14 years and institutional investors are enjoying higher yields in cities such as Birmingham and Manchester.

Mark told Bdaily: “It’s an area that has huge potential and could give a healthy injection to the lettings and management side of the business.

“There is also scope for our sales business to benefit as developers may want to put their flats or apartments on the market.

“The challenge is not to convince funds that Newcastle is a viable place for investments, but to provide an opportunity that stakeholders will perceive to be low risk.”

Having identified a portfolio of opportunities in the region, Mark is now in the process of taking this to funds.

In presenting the opportunities, Walton Robinson stands to earn introductory fees, as well as lettings, management and sales business once the development is established.

Mark added: “There’s a number of configurations this could take. For instance, we could negotiate equity in the scheme.

“We might also structure a deal where we would employ architects to develop plans and gain feedback from cost consultants. This would then be presented to developers who could see it through to completion.”

Walton Robinson occupies the Bruce Building in Newcastle city centre and is now building capacity to accommodate a significantly bigger team, if just one of these deals was to materialise.

Mark says the increase in student accommodation developments in Newcastle has left fewer places for young professionals to live near the city centre.

He added: “Newcastle City Council is very much behind developing a mixed residential offering in the city. The regeneration of the city is a great story but it could be so much more, and that’s what we’d like to see with these type of developments for young professionals.

“It’s a concept that is perhaps more prevalent in the rest of Europe - spaces with 100-150 apartments, concierge services, gyms and coffee shops - that could really bring something different to our city.”

This was posted in Bdaily's Members' News section by Tom Keighley .