Wirral and Cheshire luxury apartments developer Blueoak Estates sees proposed planning reforms as a growth opportunity as it reports annual revenues close to £30m. Tony McDonough reports
Luxury apartments developer Blueoak Estates is hoping the new Labour Government’s planning reforms, plus falling interest rates, will accelerate its future growth.
Chester-based Blueoak focuses on the higher end of the apartments market with its developments in Wirral and Cheshire. In its latest accounts, just published on Companies House, the business reports revenues for the year to December 31, 2023, of £29.3m.
This was around £1m higher than 2022. Pre-tax profits for the 12-month period were around £1.28m. This was lower than the £1.32m reported in 2022. Blueoak’s margins are impacted by site purchase costs for its future development pipeline.
In July’s King’s Speech, Prime Minister Keir Starmer started to put meat on the bones of his pledge that his administration would be “builders not blockers” by unveiling a raft of planning reforms.
They include streamlining the planning system to make it easier for developers to get schemes approved and to reduce the power of so-called NIMBY (not in my back yard) power. It is likely there will be more homes built in Green Belt areas.
These pledges were welcomed by Iain MacLean, managing director of Blueoak, who wrote in the annual report that planning delays was one of its biggest obstacles.
He said: “The operating climate remained challenging with ongoing main impacts being felt from the delays and complexities of the planning system, the continued availability of cost impacts and resources, the delays being experienced in the selling and legal processes and also the ongoing high levels of interest rates.
“The recent focus by Government on tackling the planning challenges is welcome and interest rates have started to slowly improve, and we anticipate seeing some benefit from both of these going forward.”
In Early October Blueoak unveiled plans for its latest scheme – the conversion of two former bank buildings close to Chester train station, totalling 105,000 sq ft, into 176 apartments.
In July its scheme to convert a former 1970s office building in Chester city centre, Centurion House, into 28 luxury apartments was almost complete.
Other ongoing developments include a £14m scheme to convert the former West Kirby fire station in Wirral into 32 apartments and, also in West Kirby, a new-build development that will see the construction of 10 apartments.
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Iain added: “We remain committed to sourcing sites in line with our strategic plan, focusing on a combination of large-scale office-to-residential conversions and alongside premium rightsizer apartment units in strategic locations.
“We will also look to develop any opportunities presented by the strong build-to-rent sector.”