By the Save Waterloo Dock Team
11 August, 2019
Development Crisis and Fractional sales.
Some development crises have been caused by a combination of established ‘failures'-mismanagement, corruption; embezzlement but todays developer is 85% reliant on ‘fractional sales’, according to local journalist.
Basically, ‘fractional sales’ rely on selling units before they are built, mostly abroad to big investment pension organisations. Developers are particularly vulnerable to this business ‘model’ and more importantly the communities who suffer from ‘fractional sales’ are being let down.
Alan Bevan, (city residential), describes the situation as winners and losers. Mr Bevan has also stated there will be an oversupply issue and the market will be swamped.
Developers need planning permission to sell these units. There are currently 27,500 permissions in Liverpool granted or in the pipeline. Of this number, the amount actually built could be less than 30%. So developers sit on these permissions until the global economic market conditions are favourable leaving local communities anxious/unsure of whats happening in their community. Totally unfair.
Mayor Anderson has set a panel headed by Mark Kitts (Foundations), to explore the market, an indication of uncertainty on his part?
Richard Kemp, CBE, liberal democrat has been a consistent critic of ‘fractional sales’.
It has failed. Our City, politicians, architects and developers are all divided on the issue.
Adam Hall, (Falconer Chester Hall,) a leading architect firm active in the City’s development believes these units are for RENT.
Greg Malouf (Romal Capital), a recently arrived developer believes these units will SELL, yet they are being advertised by estate agents for rent.
At Save Waterloo Dock we are going to focus on Greg Malouf (Romal Capital). Mr Malouf has submitted a planning application to construct six blocks of flats/units on the historic West Waterloo Dock. We believe his business model will be fractional sales. Mr Malouf is currently everyones favourite developer described by the Echo as very enthusiastic and our own councillor Joe Hanson, (who is actually on LCC planning committee) says he's a very nice enthusiastic guy. Joe takes a nice photograph with Malouf at the construction site (conflict of interest?) but can't talk to local residents due to 'impartiality'.
We have no reason to believe Mr Malouf or any of the other five companies (companies house) Mr Malouf is involved with are anything less than a well funded reputable group of companies. However we are extremely concerned with the development crisis and being ‘enthusiastic’ is not on our criteria list for developers.
Mr Malouf has pledged to bring ‘Little Amsterdam’ to Liverpools renowned river front (skyline) . To most, unfortunately, ‘Little Amsterdam’ is associated with illegal drugs and the normalisation of prostitution.
Mr Malouf’s development next to waterloo dock, (park central), which we didn’t object to because it was not a threat to our heritage is a clear indication of how communities will suffer due to “fractional sales”. These units are now proving difficult to let and are already re-advertised with a significantly reduced rental cost.
They are now offered as furnished accommodation with wifi throughout. They have all the characteristics of student accommodation. Alan Bevan, (city residential), believes any student developments north of Leeds Street will prove difficult to let.
So the question to the politicians and the Local Planning Authority, as yet unanswered - who is actually going to live in the 27,500 1 and 2 bed units .
Latest economic forecast indicates a downturn and a significant fear of recession in the UK. The global economy is also heading for recession. Our development crisis is about to get worse.
So despite Mr Malouf's enthusiasm and visions of 'Little Amsterdam" in the heart of our Liverpool Home.
SAVE WATERLOO DOCK SAY - ‘No Thanks Greg’