In his first interview, the new chief executive of prime London residential developer Northacre talks about his unknown status in the UK, his plans to raise his firm’s profile and venture overseas
You would be forgiven for falling down on the spelling, but Niccolò Barattieri di San Pietro is one name well worth adding to your contacts list.
The Italian property man is something of an unknown entity in the UK market, thanks to a six-year stint mostly developing homes for the rich and famous in LA in general and Bel Air and Beverly Hills in particular. But three weeks into his new role as chief executive of prime residential developer Northacre, he is on a mission to raise his profile on this side of the pond.
“I have been here three weeks and I am one month behind work-wise,” he laughs in Northacre’s riverside Battersea offices. “We have to be quite evangelical at this point. I am talking to financial institutions, agents and any other people who can position us in the right way.”
The meetings might be limiting his time in the office, but they will be crucial if Barattieri di San Pietro is to fulfil his ambitious remit. He has been tasked with re-establishing Northacre as the number-one residential developer in prime central London and raising its profile and reputation overseas.
In his first interview, Barattieri di San Pietro explains just how he intends to do this in one of the most competitive markets in UK property.
We’re back
Barattieri di San Pietro is well aware – and totally unruffled by the fact – that he is pretty much unknown within the London residential development market. “I don’t think it will be difficult to get to know people,” he says. “There will be many more difficult aspects to my job than that.”
Indeed, he has an ambitious strategy to implement – taking Northacre from a position he describes as having become “a bit dormant” over the past few years to being one of the best-known developers in the sector. He was recommended for the job by a contact close to shareholder Abu Dhabi Capital Management after proving his mettle on the international scene. He joined Northacre from London-based international property developer Estate Four, where, since 2009, he focused on high-end development in New York and Los Angeles for local and international buyers from as far away as Nigeria, China and Malaysia.
He says the role at Northacre, which has a current market capitalisation of £19.2m, and the vision of what he wants to create in London were “perfectly aligned”, based on the company’s recent moves to reposition itself with the market.
ADCM entered the frame earlier this year, taking a 66.8% stake in the group. And Northacre has wasted no time in securing new development opportunities in prime central London to put it back on the map.
In August, it agreed to develop . The property was bought for £8.6m by Bassemey, an SPV financed by investors arranged by ADCM. And just one month later the group committed to invest £10m in an SPV, financed by a variety of institutional investors, to acquire .
These deals have laid the groundwork for Barattieri di San Pietro’s grand plan for Northacre to have £1bn of flats to sell in the next few years. And he is under no illusion that actions speak louder than words.
“There is only so much I can say to the outside world – that we’re back and we want to buy – if it’s not backed by facts,” he says. “The acquisition of Palace Street puts Northacre in a different light, so the market knows we’re back.”
Combating the competition
Barattieri di San Pietro goes on to tackle the issue of his firm’s stiff competition. He is taking the reins at a tough time for a developer wanting to make inroads back into the market, as institutional and foreign investors try to grab a piece of the action.
He explains that Northacre is now considering developing sites in areas it previously would not have ventured into, as the area known as prime central London expands, and refers to The Lancasters, W2, as an example.
“We tried to intercept Palace Street before it came to market and use our knowledge of the market slightly more astutely than someone who is not based here all year. But it is very difficult to acquire sites. I think people know we are serious now because we bought an incredibly big and expensive site, Palace Street, in central London and did the transaction in three weeks. It is not just a question of money, it is a question of know-how, due diligence and closing the deal on a very complex site in a small timeframe.”
While Northacre is on the acquisition trail, Barattieri di San Pietro is also positioning the group as a development manager to take advantage of the tide of investors interested in London but lacking local development experience. It is a “perfect fit” to bring the Northacre brand and premium to investors, he says.
He adds that there will ?be a focus on overseas property for the first time but says that the company will act as a development manager only on international schemes. The group is already in discussions on a project in Abu Dhabi, but Barattieri di San Pietro is guarded about which other markets might be targeted.
“There are so many international buyers in London. They now know what to expect in the high-end market and often they cannot get it back home,” he says. “I had a fantastic experience in Los Angeles, so that could be one area in which to expand.
“There are a few forgotten and unloved cities in Europe that could be worthwhile ?too – cities that people don’t look at because they have ?been depressed by the economic times. Places ?like Madrid or Paris could ?be of interest.”
In a final move away from past business plans, Northacre, which has traditionally focused on redeveloping and refurbishing existing buildings, is now likely to venture into the new-build market in a bid to penetrate the central London residential market once more.
Calm confidence
If Barattieri di San Pietro is fussed by wider concerns about the sustainability of the London residential market, he certainly does not show it. “Prices are rising in general but not at bubble speed and the amount of leverage is less than it used to be,” he says calmly and confidently.
“If the conditions continue, we will have a few more years of a stable to slowly rising market.”
And unlike many housebuilders and developers, ?he says he is “very happy” ?that planning is a challenge because it gives Northacre a competitive advantage. “If everything was so easy, there would be more and more players with the skills to deliver schemes. One of our skills is planning, so thank god it is complicated. It keeps the supply what it is and prices high,” he says.
It is this sort of bold statement – along with his ambitious strategy – that suggests it won’t take long for Barattieri di San Pietro to explode onto the London residential market’s radar.
And no one is more sure of that than the man himself.
“Work will stem from the ?fact that someone has a site ?and wants to create a premium asset, and that is why they should be calling us.” ?Regarding the mechanics ?of it – a joint venture, sale, ?or development-only agreement: “We are open-minded,” he says.
“There are certain ingredients here that mean Northacre will have continued success. Otherwise, I would have continued to go to Los Angeles and get some sun.”
From Italy via england, Paris, Hawaii and los Angeles
Niccolò Barattieri di San Pietro was born in Washington DC before moving back to his family’s native Italy as a child. He went to boarding school in England before graduating from the American University of Paris with a BA in international economics. He also has an MBA in finance from Hawaii Pacific University.
He started his career in equity sales at Merrill Lynch followed by a stint in the asset allocation team at Barclays Global Investors in the US. He was also the head trader for Theorema Asset Management, a $600m European equity hedge fund, and Newman Ragazzi, a $1bn European equity hedge fund.
He then had a stint at ?Estate Four, where he ?helped expand the business internationally, working on developments in Milan, New York and Los Angeles.
annabel.dixon@estatesgazette.com
