Boss of property group Vermont expects ‘significant increase’ in revenues for 2024 despite a ‘challenging marketplace’ with work on 31-storey Liverpool tower under way. Tony McDonough reports
Vermont Property Group founder and chief executive Mark Connor expects the Liverpool firm’s revenues to continue rising in 2024 despite strong property sector headwinds.
In November, LBN revealed Vermont’s latest accounts which showed revenues of £44.5m for the 12 months to March 31, 2023. This was higher than the £41.7m reported the year before. Pre-tax profits were down from £1.3m to £800,000.
However, Mark is bullish about the firm’s prospects for 2024 with multiple projects in Liverpool and Manchester adding up to a “fantastic pipeline” of work.
His upbeat message is in contrast toconstruction sector forecasts that showed output falling in 2023, and remaining flat across 2024.
He said: “2023 has been a strong year for Vermont. There is no doubt that political and economic uncertainty has influenced the marketplace, providing inflationary pressure on construction costs across the supply chain on all current developments.
“Despite these challenges the team started 2023 with strong momentum. In February, works on Liverpool Waters for X1 Developments commenced following an agreement with Starlight Investments to fund and operate the impressive waterfront development.”
That project, worth around £50m, will see the construction of a 31-storey residential tower. The development, comprising 278 apartments, stalled on two previous occasions after Your Housing Group pulled out.
In September LBN reported Canadian investor Starlight Investments had secured a £45m loan from Maslow Capital to complete the build. Starlight, which has a North American property portfolio worth more than £20bn, has retained X1 as development manager.
Comprising a mix of studios and one, two and three-bedroom apartments, the scheme is being acquired by a Starlight-led institutional partnership as part of a forward purchase agreement.
Commercial and leisure space will be catered on the ground floor of Patagonia place which will join a row of existing residential towers in Princes Dock. These include Moda Living’s £82m, 34-storey skyscraper, the Lexington, and the £21m 16-storey Plaza 1821.
Starlight Investments also agreed a deal for the initial phase of Michigan Avenue in Salford. Vermont started work on site in March 2023.
“Those deals agreed with Starlight Investments, will contribute over £120m in revenues over the next few years,” added Mark.
Building on this success, Vermont also started work on site at the redevelopment of Farnworth Town Centre with Capital & Centric to provide a range of residential accommodation, including high quality commercial and retail space.
In addition, and as part of its partnership with X1 Developments, Vermont also completed Tower 3 at Media City in Q2, 2023, marking the completion of a further 275 apartments at the development.
Vermont expects to start building the remaining Tower 4 at Media City in Q2, 2024 which will see the completion of more than 1,100 residential units and 20,000 sq ft of commercial space in total across the wider Media City development.
In the final quarter of 2023, Vermont also completed a third block at X1 Developments Manchester Waters scheme, comprising a further 190 luxury apartments successfully completed by the Vermont team.
Mark said: “Whilst the sector continues to wrestle with increased costs driven by the recent inflationary cycle and significant regulatory changes, we do see a continuing appetite within the residential market across major North West cities for good quality BTR (build to rent) projects.”