Everybody in the M27 agency world is talking about it – the exodus of three directors from BNP Paribas Real Estate in Southampton.
The departure of Steven Williams, David Ferriman and Robert Haynes is the latest example of the city’s agency merry-go-round. In October, word spread that the BNP PRE threesome were bidding farewell and, as a consequence, the future of the entire office was in doubt.
Over in Portsmouth, for example, Holloway Iliff & Mitchell took a call from someone already making enquiries about alternative employment.
While talk of closure by Christmas is on many lips, BNP PRE in London stresses nothing has been decided. “In response to three senior directors… leaving to set up on their own, a proposal has been made to close the office,” says a spokesman at BNP PRE HQ. “We are still discussing this proposal with our clients to ensure they are satisfied with our coverage.”
The departing team will join forces in the New Year with former colleague Stuart Cook, who set up his Winchester-based business Real Estate Strategies, trading as Realest, following redundancy.
“I had to choose to either work for another firm or decide to go for it by myself,” he says. “Having worked for major clients for many years, the market timing seemed right to see if there was demand for my services.”
His niche involves advising clients on property strategies that marry with company strategies – and so far, he says, he has had a busy diary.
“Now, with three former colleagues joining me it gives the opportunity to take the company to another level,” he says.
The game of musical chairs goes on despite some blustery economic conditions that are making the recovery less healthy than predicted earlier in the year.
At CBRE, where Southampton managing director James Brounger says the company’s national modus operandi is continued growth, its local team of 27 remained stable through the recession. Now there are new faces there, too.
Building surveyor Simon Wilmot-Wilkinson joined in a company job swap, but additions include Craig Powell, who joined asset services from Holloway Iliff & Mitchell, and Tej Singh and graduate Callum Paddock, who have boosted the valuation team.
Brounger believes that while some markets are still not that strong – new, speculative development being one of them – others are healthier. Investment is good, speculative refurbishments are in prospect and, he says, landlords are seeing opportunities for rental growth.
“The market is well poised for considerable new opportunities,” he says. “That is having a knock-on effect on bigger companies’ expansion plans. There may also be situations where people are not content with their existing firms and they are now taking the plunge to set up niche practices.”
No bad thing, he stresses, as “the marketplace needs to refresh itself”.
Michael Green, lead director for JLL in Southampton, agrees. “It’s healthy to push the refresh button on the agency world every few years,” he says.
Market conditions are still not great, he adds, and there remains too many people chasing too little business. But people are putting together stronger teams, he believes, to capitalise on a growth phase “that will come”.
JLL, like others, downsized during the recession and, according to Green: “We kept a lean, mean ship.” Now it is in growth mode and in Southampton its medium-term ambition is to double its 25-strong team.
Newcomers have included business space director David McGougan, who joined from Hughes Ellard, and office agency expert Nella Pang, who joined from BNP PRE earlier this year.
Firms, large and small, experience the merry-go-round. Holloway Iliff & Mitchell has taken on associate director Peter Dalby from Fareham-based Daniells Harrison. Director Tom Holloway says: “There has always been some movement, but it seems to be accelerating.”
He has also witnessed a sea change away from entire smaller firms being swallowed towards a more micro approach of bringing in individuals who can “bring something with them”.
Take Fareham-based Hughes Ellard, where director Russell Mogridge says: “We are strong in core areas and we continue to look for stars in those areas.”
Under the stewardship of Tim Clark, a retail expert who joined from Portsmouth’s Garner Wood, he says they want to build their regional retail offer, where they have already become the “go to” practice.
Ambition at Primmer Olds
At Southampton firm Primmer Olds, head of commercial agency Duane Walker says there are ambitions to expand both agency and professional services.
Its asset management business “ticked over” during the recession, according to new head of department, David Lealan, who joined from CBRE. Now there are signs of market recovery Lealan’s initial role will be to expand the property management business over the coming 12 months and double turnover.
“I sit in the heart of the agency team and hear all the activity,” says Lealan. “That’s very different to the larger practices where I’ve been before – and it’s refreshing.”
Former JLL agents Matthew Poplett and Jason Webb, left to launch a new Southampton office for Fareham’s Hellier Langston in the summer.
Rather than start up their own company, they opted to become shareholders in an established company. “We preferred to go to a company where there was an existing client base but where we could use our experience of working for a large corporate,” Poplett explains. “I have known Hellier Langston’s directors for many years and the decision followed a conversation at a Christmas party – it was simply time and place that led to this.”
Webb is confident it was “better than starting from scratch”. He says that one of the advantages is that “it was not so much of a leap of faith for clients”.
Webb adds that he is not missing the admin for a London HQ.
