Scarborough Property Group International has launched a new management services division as it seeks to take advantage of rising demand from property owners exploring alternative avenues to maximise value from underperforming, distressed or complex real estate assets.
The new division – Scarborough Management Services – is something of a flashback for the group, which previously offered similar services through its Teesland business.
The new business, to be led by Scarborough chief executive Simon McCabe (pictured), will provide financial institutions, property owners, international investors, local authorities and occupiers with a range of services spanning development management, project management, asset management, property management and serviced office management.
McCabe said a number of conversations with potential clients were already ongoing.
Scarborough chairman Kevin McCabe said the firm had decided to return to the management business because it had recognised the increasing demand from property owners wanting to maximise the value of their assets and that many would “probably appreciate working with a partner who knows the game”.
“We’ve done this before,” he said, referring to the Teesland business, which was built up from a few million pounds of funds under management in the early 1990s to ultimately boasting a portfolio of funds under management across Europe with a value in excess of £5bn. The business was sold to Valad in 2007 for more than £800m.
“Never stand still in business,” he said. “And sometimes you’ve got to look backwards to go forwards.”
Simon McCabe said the firm’s geographic spread, coupled with its ownership and development expertise across its portfolio, plus its serviced office capabilities, uniquely placed Scarborough to offer solutions unlike the competition.
“By amalgamating SGI’s extensive experience and established track record in delivering large-scale regeneration projects with the prestige of Teesland iOG’s legacy, we are strategically poised to address the multi-faceted challenges within today’s dynamic real estate landscape,” he said. “With the launch of Scarborough Management Services, where we have established offices in Leeds, Manchester, Sheffield, London and Edinburgh, our goal is to curate a comprehensive suite of management services tailored specifically for property owners and investors seeking to unlock the latent value within their property assets.”
“We like to be where the action is. We have offices where the action is, and we have people in the business that are extremely commercial. We’re not spreadsheet managers,” he added. “We’re a get your hands dirty propco.”
Unlike Teesland, the new Scarborough Management Services business will likely remain focused on the UK and largely on regional assets – without discounting Central London – and promises to deliver “aggressive and shrewd asset management” services to help reposition distressed assets.
Scarborough Group International currently has a development portfolio of more than 9m sq ft of commercial space and 4,000 homes, plus 3.9m sq ft of commercial space and 1,600 homes in its long-term development pipeline.
If you’re interested in how Kevin McCabe grew Scarborough Group from a £10,000 loan into the £2bn-plus business it is today and want to hear more of his insights on how to “never stand still”, make sure you listen to the first episode of EG’s School of Hard Knocks podcast here.
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
