Residential developer sets out ambitious growth plan after investment boost from Singapore shareholder
Fairbriar has embarked on an ambitious expansion plan, aiming to increase annual profit to £10m in the next three years.
The quoted residential developer is to restructure the business and management after one of its long-standing shareholders, a Singapore vehicle called CPL (UK), increased its stake to 29%.
Chairman Kevin McCabe, who is also the chairman of Sheffield United FC and head of property companies Scarborough and Teesland, said that the aim was to increase profit to £5m over the next year and to double that to £10m within three years. The company made a profit of £400,000 in 2003 on a £4.8m turnover.
“We will go for growth and profitability,” said McCabe, who has a 30% stake in Fairbriar. “We will not be content until we’ve built this into a big company.”
“We are not trying to be foolish about expansion; we are saying that we should be more aggressive than we have been in the past.”
Fairbriar plans to increase its number of joint-venture schemes, which already include the 442-unit Wandsworth Riverside Quarter in south London.
We will be more aggressive than in the past
Kevin McCabe, chairman
On Thursday, Fairbriar will officially open a 133-unit serviced apartment scheme in the La Défense area of Paris. McCabe said that he also hoped to extend the network to Barcelona, Madrid and Prague.
He added that developer would also focus on mixed-use schemes: “They’re becoming the norm and I see Fairbriar as being a joint-venture partner in that area.”
It is expected that two individuals from CPL, which is a subsidiary of Singapore group Fraser & Neave, will be appointed to Fairbriar’s board.
It is also expected that a chief executive will be appointed as part of the restructuring process.
Fairbriar parted company with former chief executive Philip Van Reyk in April.