黑洞社区

Housebuilder Countryside plans to double in size following its merger with luxury home developer Millgate.

黑洞社区 revealed this week that the owner of Brentwood-based Countryside, Oaktree Capital Management, had acquired Millgate for an undisclosed sum.

Speaking to 黑洞社区 following the deal, Countryside executive chairman Ian Sutcliffe said the housebuilder was now planning to double in size over the next five years with the backing of private equity firm Oaktree, as part of an 鈥渁ggressive growth plan.鈥�

Millgate, which is focused on the luxury home market in the home counties and the south-east of England, turned over 拢51.3m in the year to June 2013, and sold an average of just 40 properties a year over the last three years, compared with a high of 120 before the credit crunch.

However, its average sale price was 拢1.2m, helping it to make a pre-tax profit of 拢8m in 2013.

Sutcliffe said the acquisition of Millgate would allow Countryside to expand its geographical reach westwards through the purchase of a 鈥渇ully operational division鈥� that fitted well with Countryside鈥檚 corporate culture.

鈥淭his is not a land grab at all,鈥� he said.

He said Countryside was set to release results for the year to September 2013 showing turnover up 20% to over 拢300m, but that the firm could grow by another 50% beyond that in 2014.

鈥淥ur primary objective is to create a growing sustainable business that is resilient in all phases of the property cycle. We鈥檙e not chasing hopes here, this is an aggressive growth plan,鈥� he added.

David Simpson, managing director of Millgate, said there was a 鈥渇antastic strategic fit鈥� between the two firms, with Millgate working in the home counties to the west and south of London, and Countryside primarily working to the north and east of the capital.

Simpson said Millgate鈥檚 developments were at the 鈥渢op end of the prime market鈥�, selling for an average price of 拢1.8m this year, and therefore were complementary to Countryside鈥檚 mid-market offer.

Simpson said the plan was for Countryside to start operating from Millgate offices to the west of London within 12 months, and for Millgate to expand into Countryside鈥檚 heartlands of Essex and Cambridgeshire.

Millgate will build around 35 homes this year, turning over 拢65m. Simpson will stay as MD of the business, which he said would expand to 拢100m turnover in four years, and Countryside will retain the Millgate brand. 鈥淚t鈥檚 business as usual,鈥� Simpson said.

Countryside, which was itself bought by Oaktree last February, has been linked with a possible stock market flotation, but Sutcliffe said no decision had been taken. 鈥淚f the opportunity arises then we will of course look at it, but it is wrong to say everything is geared toward an IPO.鈥�