26 Feb 2008
Two major Scottish property companies have joined together to launch an assault on the UK mid volume housing market in a unique, £40 million business venture.
Applecross and Premier Property Group (PPG) aim to create at least 100 new homes this year under a new joint venture company titled “Freespace” which will commit to “unlocking bonus space” in every new home.
The business is founded on the principle of ‘intelligent space engineering’, which will enable households to maximise every square foot of space in a creative and innovative way.
The venture sees Applecross take its first steps to diversify its product offering which in recent years has dominated the top end of the market in Edinburgh.
Craig Hall, Marketing Director of Applecross commented:
“We have long-planned the launch of an additional product to meet the mid-market demand for cleverly crafted homes which are more than the standard house designs that litter the market. The opportunity with PPG was too good to miss when we realised the powerful combination of the Applecross expertise in the market together with the PPG land holdings, UK-wide network and financial muscle.
“Freespace will be marketed at the high end of the mid market and aimed firmly at young professional buyers. We are trying to put the joy back into housing via the little victories in design. We know from our research that there is a primary desire from design-aware house buyers for space and the design commits to unlocking ‘bonus space’ in a creative and innovative way. This could be cupboards, floor space, roof space or ceiling space. In any case, the end result will be that every home will be created to make every opportunity of the space available with an eye to its possible expansion in future years. This is a first in the market. We’re very confident about Freespace, we’ve designed it from scratch, and in PPG we’ve found a perfect partner to deliver it with.”
Jestyn Davies, Director of PPG commented: “This venture brings together two highly reputable well established companies which share common goals. We are both expanding and with our pooled network and resources can help Freespace develop to its full potential across the UK. In Applecross we have a partner to help us return long term value from our land assets.”
Mr Davies said that Freespace had been launched after intensive market research. Each Freespace house would come with potential internal or external improvements (e.g. converting roof space or creating a conservatory) “built in” to the original design. This would greatly cut the cost and time involved in future home improvements.
The joint venture, which is a 50:50 arrangement, will see three sites in Scotland developed this year with the concept introduced to England in the following two years. Sites in Central Edinburgh, North Lanarkshire and Fife have already been earmarked with a typical development taking in 50 units, with an average size of 1,200 sq ft per unit.