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Buyer's market
Property tycoon who wrote £35m cheque for 209 flats in Leeds declares it's still a...buyer's market
by Geoff Fox
ONE OF the UK's most successful property investors has predicted booming Leeds has "seen nothing yet".
Manoj Raithatha believes the finance capital of the north can buck the boom-and-bust trend hitting other cities and go on to even greater things.
He said the city's strong economy was secure – as he signed a cheque for 35 mILLION worth of new homes. And he dismissed fears of an overheating of the construction industry in Leeds, which has seen billions invested in waterfront developments.
As managing director of London-based Summertime Properties, the biggest property investment company operating in the region, Mr Raithatha has bought up huge chunks of the new flats coming onto the market.
Investment
"The labour force is increasing and the Leeds economy is growing," said Mr Raithatha. "It has a huge finance sector and the Bank of England. You need to house all of those people."
His company, launched five years ago, has just made the biggest single investment in the Leeds property market, buying up 209 apartments worth 35m at Clarence dock.
He has also bought up 120 flats in the La Selle block next door, and a further 103 at Cartier House.
The scale of Leeds's redevelopment has prompted fears of overheating, with Northern Ballet's 22m headquarters thrown into jeopardy because of spiralling construction costs fuelled by increased demand.
But Mr Raithatha, who is also involved in the re-development of Victoria Mills in Saltaire, near Bradford, claims the market in Leeds is strong.
"Good stock still moves pretty swiftly and Leeds has got some very good stock.
"Developers are still very keen to buy buildings in Leeds. The rental market is strong.
"Leeds is slightly different to other cities in that the labour force and the economy are expanding. Leeds is almost immune to what might be going on elsewhere in the country.
"I don't think the property boom there is over by any means. Property has gone up a lot in value, but it is sustainable growth."
The Federation of Master Builders's regional director Ron Wilson admitted labour costs had risen 25 per cent in the last three years but said the city had "never had it so good."
According to research by property agents Knight Frank, there are around 86,000 young professionals in Leeds while only 2,300 city centre flats and homes were completed in the four years up to April 2004.
geoff.fox@ypn.co.uk
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Friday 25 May 2012
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