Business is to be conducted with cold reason and logic – not with emotion and heart. Or so they say. But, Sanjay Shah is not just a businessman. Friendship and trust comes first to him and the story of the Sim Chem House deal in Cheadle Hulme, Greater Manchester stands out in the dog eat dog world of today’s real estate business.
This tale of friendship between Sanjay and Martin Skinner, CEO of Inspired Homes and parent company Inspired Asset Management, dates back one and a half years. Martin urgently needed £5m GBP to complete a project and reached out to Sanjay – who managed to find £3m at short notice. The money was not enough but Martin remembered the gesture and the effort Sanjay put in. Nine months later, Martin returned the favour by offering a few flats to Sanjay in the same property at heavily discounted rates. While the transaction was not insignificant, the real benefit to the two seasoned businessmen was the bonds of friendship and trust this created – a bond that has endured to this day.
So when Sanjay approached Martin with the idea of redeveloping a former office building in Cheadle Hulme, all that he needed to know was that Sanjay believed in the project. Although, Inspired mainly focuses on Greater and commuter London, Martin decided to take the plunge and immediately grabbed the opportunity – banking on Sanjay’s acumen and the prospects of the UK’s Northern powerhouse. The deal was far from straightforward and without Sanjay’s personal intervention at the critical times the acquisition of Sim Chem House would have fallen through.
Martin is not alone in placing this trust with Sanjay. Mirasa’s true strength lies in the complete faith that Sanjay’s partners have in him. Pavan Batavia (also of Synergy Properties in Dubai) and Rajesh Virani needed little proof beyond their mutual respect, carefully cultivated over the years, to invest in Mirasa.
Property details
Sim Chem House, now called Fabrick, is located in the sought-after Greater Manchester suburb of Cheadle Hume on Warren Road and has an estimated GDV in excess of £25m. The development will provide impressive features and details including Smart NEST thermostats, 1 Gb broadband by Hyperoptic, granite worktops, and designer kitchens and bathrooms. There will be a concierge service, WiFi ready residents’ lounge and a roof top terrace with seating and a bbq area. As a developer, Inspired typically focus on high specification fixtures and fittings to ensure longevity and minimise maintenance costs for the purchaser, whether they are a first-time buyer with little disposable income or a buy-to-let investor looking to maximise their returns.
"What we aspire to do is to provide affordable but high-spec, high-tech solutions for young professionals typically between 20 and 40. We like to build a community within the developments we produce and encourage some tech-led growth," said Martin.
Inspired are able to offer high quality homes at lower prices by using space more efficiently. Their micro-apartments are designed to feel more spacious than the square footage suggests by incorporating hallway-free design and uniform open-plan living spaces. At Fabrick, studio apartments are 280sqft and cost £119,000; one bedroom apartments range from 334sqft to 409sqft and are priced between £129,500 and £155,000; and the two bedroom apartments range from 527sqft to 639sqft and are priced between £195,000 and £215,000.
"There's a lot of money coming into Manchester from London. For returns on pounds per square foot, Manchester is the place to invest," said Sanjay. "Prices in Cheshire are going higher, whether you’re buying residential or commercial, you cannot get an opportunity here – house prices just go up, there is an acute housing shortage and a lot of people who want to live here."
The team have already sold 22 apartments before construction has even started and the development will be ready to move into within 15 months, that is, by the summer of 2018.
Fabrick sits conveniently for commuters just moments from Cheadle Hulme railway station, with direct trains to Manchester Piccadilly in just 16 minutes and Stockport in only six minutes. Additionally, Manchester Airport, now boasting direct flights to China, is only around 10 minutes drive away by car and is home to the new £800m Airport City Manchester development and its £130m 'China Cluster' set to be UK's first airport city and a leading business hub in the region.
Sanjay and Martin do not know how Brexit will impact property prices when the UK does finally leave the EU, however both agree that the ‘Project Fear’ predictions made in the wake of the vote have failed to materialise. "Brexit can be good if the country follows their policies to deregulate and reduce taxation," said Martin.
“The weak pound has boosted overseas interest, particularly from China and India,” adds Sanjay.
Dream for Greater Manchester
Sanjay and Martin keep the purchaser's interests in mind when embarking on new developments. "Martin is giving you a luxurious apartment where there is a wow factor as soon as someone walks in," said Sanjay.
"It's a catalyst for their lives, they are stepping up and making their first home purchase. It feels nice to be able to help people take that step and provide that solution in the most efficient way possible," said Martin.
It takes courage to dream in today’s property market – but it takes much more to build those dreams on friendship and trust alone. Sanjay and Martin’s dream for Greater Manchester could well be a precursor for a new approach to bricks and mortar – cemented with the warm human touch.