Housebuilder October 2018

THE
INTERVIEW Stephen Teagle, Galliford Try Partnerships
New Brunswick is a scheme featuring two to
four bedroom homes in Manchester
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strength from a wide range of partners. And, being
part of a hybrid operation, the business has land,
contracting and retail expertise all at its disposal. This
is the point of difference, Teagle explains.
“Ours is a capital efficient model which turns assets
quickly, creating great quality places and access to
more affordable homes,” he says. “Our business model
is exciting to me as it brings together the partnerships
ethos of a contractor and the short term acumen of a
developer. We’re leveraging in the experience of our
strong Linden Homes [housebuilding] brand. It’s an
interesting model for the 21st century – focusing on
housing supply across tenures with the ability to work
within land.” The Partnerships division complements
Linden Homes’ work, he says.
The business he heads is standalone and selfsufficient.
“As ceo this allows me to take it forward. It’s
on an exciting trajectory.”
GT has since announced its full results for the year to
June 2018. The number of completions achieved under
the Partnerships brand rose from 2,194 in 2017 to
2,751. This is split between 751 mixed tenure homes
and 2,000 “equivalent” contracting units. Combine
this with the Linden brand, and the total number of
residential properties reaches 6,193.
business progress
The Partnerships business is progressing towards
targets for 2021: 4,200-4,400 units on a revenue of
£700 – 750 million and an operating profit margin
of 6–7%. (2018’s revenue was £475 million and
operating profit margin 5%). With three years of this
endeavour to go, Teagle is buoyed by the Partnerships’
forward contracting order book of £1.2 billion. It has
carried forward mixed tenure sales of £188 million into
the new financial year. “We’re well underway with our
18 housebuilder october 2018
The Blackberry Hill hospital site in Bristol
consists of 346 homes including open sale
planned growth and it’s ambitious,” Teagle says. “Our
ethos is: sustained growth at pace.”
The Partnerships arm has lifted staff numbers – from
415 in 2016 to 845. Teagle was “really pleased” when, in
May 2017, the division bought the Drew Smith group, a
developer of a similar ilk albeit smaller scale, dealing in
contracting and mixed tenures in southern England. The
acquisition added 78 people .
What excites new recruits – they have told Teagle
– is the division’s ability to combine commercial
success with strong social outcomes. GT Partnerships
particularly prides itself on creating sustainable
communities. But what does Teagle think makes
them? “A fundamental element is the presence of
mixed tenure homes – affordable, owned and rented.
Developments should also have a strong sense of
place; that starts with a good quality realm. If you
create that and a mix of tenures you’re well on your
way to creating a long term community.” Statement
architecture is not obligatory, he says. “You can create
vibrant, enduring communities without that. But
you do need to look at stewardship to maintain the
investment value of great places.” The Partnerships
division’s employees, with backgrounds ranging
from plcs to architectural practices, have, helpfully,
“experience with creating high quality places”.
Teagle marvels at having reached his own
career milestone last year, with half spent in
commissioning and the other 50% in the private
sector. “Not surprisingly, I’m a complete evangelist
for joint ventures. I can see them from both sides –
commissioning and delivery. What the partnerships
model is about is engaging with our partners
long term.”
When asked about the challenges that partnership
work presents, Teagle highlights mainly the positives
and ingredients for success. “You need clarity of
common ambition and an appreciation of risk
appetite. If you get those right then you’ll fly. I’ve seen
more successful examples than failed ones.
authenticity
“You need authenticity to make partnerships work.
Undertaking them for short term benefit isn’t the
way to go. We get a lot of repeat business as people
understand us and have built up trust. That doesn’t
mean you don’t make difficult decisions.” A partnering
example is the division’s work with Manchester City
Council; the Brunswick PFI regeneration project will
produce 522 new homes, more than 650 refurbished
council homes and a 60-bed sheltered accommodation
facility. As part of this is New Brunswick featuring two
to four bedroom properties.
The Partnerships division also works with key private
rented sector investors. It has formed partnerships
with Sigma Capital Group and Legal and General.
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