黑洞社区

Housebuilding is in such a state of flux that experts have taken to trying to predict the next company up for sale and the ones that will disappear altogether.

Bruce Anderson is one of the reasons for this guessing game. He is head of joint ventures in Halifax Bank of Scotland鈥檚 corporate division, which has built up stakes in eight housebuilders. At present, he is leading the team that is poised to take over Crest Nicholson for 拢713m. The consortium includes Sir Tom Hunter, who鈥檚 often cited as Scotland鈥檚 richest man.

Anderson鈥檚 phone is the first to ring when a housebuilder is put on the market. He is also one of the last people housebuilders want to hear from if they are not keen to sell. Anderson鈥檚 prognosis of the sector will make nervous reading for chief executives who want to retain their independence. 鈥淚n a few years鈥� time there will be just three major housebuilders,鈥� he says confidently.

Which ones? Anderson chuckles. 鈥淵ou know I鈥檓 not going to tell you that.鈥� But whichever firms are left, Anderson is likely to have a stake in at least one of them. He shows all the signs of a seasoned deal-maker. After turning up late for this meeting with 黑洞社区 he apologises, dispenses with the small talk and says: 鈥淪o, are we ready?鈥� So many deals, so little time ...

To be fair, he is a busy man. Since 1998 when Anderson set up the joint ventures division, HBOS has acquired stakes in Countryside Properties, Fairview, Octagon Developments, Ashwell Homes, Banner Homes and Cala Group. 鈥淲e got into property when nobody was interested but we liked it because it was backed by assets,鈥� he says.

He has two projects presently under way in housebuilding, and Crest Nicholson is likely to be third. With all these stakes, it is not surprising that he speaks highly of housebuilding investments: 鈥淚t鈥檚 an exciting time to be in the sector. Profits have been incredible and there are lots of opportunities.鈥�

One of those opportunities was Wilson Bowden. It was a prey that unusually they failed to capture 鈥� Barratt鈥檚 拢2.2bn offer was accepted by the board on Monday. It is believed that HBOS鈥� bidding partner, Hunter鈥檚 West Coast Capital, was worried it might end up paying over the odds.

Hunter is HBOS鈥� regular partner. Under the name of Castle Bidco, they teamed up to buy retirement homes specialist McCarthy & Stone in the sector鈥檚 biggest deal of 2006, and they are now, after two years of stalking, taking aim at Crest Nicholson. The housebuilder鈥檚 board has recommended the offer and the buyers are presently going through the due diligence process.

The relationship with Hunter is important to HBOS鈥� expansion plans. HBOS likes to share the risk 鈥� the parties tend to bid 50:50. And it has a cap on its investments, which is less of a problem for Hunter, who鈥檚 personal wealth is about 拢800m.

Anderson鈥檚 second deal, after Crest, is the sale of its 35% stake in Linden Homes. HBOS has been involved with the company for nearly six years and has been trying to sell it since September. Galliford Try announced this week that it was in talks with Linden. 鈥淚t has taken longer than expected but it should come to a conclusion soon,鈥� says Anderson.

A frequent criticism of private equity firms like HBOS is that they take a short-term view of acquisitions. But Anderson launches a robust defence of HBOS鈥� strategy, pointing out that Linden鈥檚 turnover has grown by more than 30% since HBOS bought its stake in the company: 鈥淟inden鈥檚 been a fantastic success story.鈥�

He adds that HBOS cares about the long-term security of housebuilders, and accordingly looking for those with strong landbanks. Not that that seemed to apply to McCarthy & Stone 鈥� Anderson鈥檚 final deal is the prospective sale of HBOS鈥� 58% stake five months after it bought it, the better to pursue Crest Nicholson.

Anderson adds that HBOS also cares about the housebuilders鈥� management: 鈥淲e give management an upside. What we look for is good management as we will not be involved in the day-to-day running of the business.鈥�

That鈥檚 not to say that once HBOS buys its stake, it leaves the company to run itself. Rather, it takes 20-50% of the business, with the board retaining a share and the parties sharing the benefits.

But not all housebuilders want HBOS鈥� help 鈥� it is still perceived as a predator and Anderson admits that not all approaches are successful. He shrugs his shoulders: 鈥淲e do enough deals in the sector.鈥�

Throughout the interview, Anderson remains unfazed, even when pushed on the financial details of the business. But when he is asked about his love for golf, he gets a bit edgy. 鈥淲ho have you been talking to?鈥� he asks. Maybe golf is seen as pass茅? 鈥淧roperty guys don鈥檛 play golf anymore; everybody goes shooting these days,鈥� he laments. But the next moment he鈥檚 rattling away about his passion and talking proudly of winning the 2005 RICS golf day, when he teamed up with Jason Dalby, the managing director of Rosemound Developments. Then, as if realising he is let his guard down, he

shoots me a look and says: 鈥淣ot too much on the golf, okay?鈥� Clearly, a man of Anderson鈥檚 abilities doesn鈥檛 like to think in terms of handicaps.