The former Crown Dilmun managing director who quit last November has set up his own rival property investment and development company.
Nick Sutton, the entrepreneur who established residential specialist Crown Dilmun in 1995, is setting up a range of companies under the umbrella Imperial Property Company.
Sutton owns 60% of the new company, while the remaining 40% is split between the Middle Eastern United Gulf Bank and a number of private high net worth individuals.
The company has secured £20m in equity funding, and Sutton is confident of further investment, as and when he finds opportunities.
Sutton quit Crown Dilmun in November after an acrimonious review of strategy with the companys 100% backer, Bahrain International Bank.
He said IPC’s strategy would be to buy commercial buildings of around 30,000 to 100,000 sq ft (2,787 to 9,290 sq m), which could then be redeveloped as medium-term investments.
Sutton plans to buy town-centre buildings and divide his portfolio between residential, hotels and office use.
This week, IPC signed its first deal, the purchase of Elgin House, a 30,000 sq ft (2,800 sq m) office building on St Mary’s Street in Cardiff city centre.
The company plans to redevelop the building as 50 flats and 23,000 sq ft (247,578 sq m) of offices.
The company is looking at development opportunities in Glasgow, Norwich and Newcastle. Sutton already owns a small portfolio in Bristol, which he built up before and during his time at Crown Dilmun.
Sutton will target old three-star hotels in central locations in London and the regions. He expects to achieve a gross yield of 7% for residential investments and between 8% and 8.5% for commercial investments.
He said: “The business will focus on income rather than speculative development. This is not a good time to be relying on the value side.”
EGi News 20/01/03
