SINGAPORE--(BUSINESS WIRE)--The following is a statement by Daniel Mark Harrison & Co.:
Daniel Mark Harrison & Co., a Singapore-based property development company founded by the scion of Europe’s oldest security printers Harrison & Sons (sold to De La Rue PLC in 1997), has agreed to take over the business activities of Absolute Living Developments (ALD), a U.K. property developer with more than 50 million pounds (SGD $110 million) of real estate developments in the North of England.
The deal makes DMH & Co. the largest developer and renovator of property in Britain’s North by projects under development and by sales. The buy-out firmly re-establishes the Harrison family legacy in the spotlight of the U.K.’s business sector and places it at the top of the country’s white-hot provincial real estate market.
The precise structure of the takeover of ALD’s business activities are due to be finalised and formalised by the 4th January 2016 by Daniel Mark Harrison, President & CEO of DMH & Co. and the controlling parties of ALD.
Harrison: White Knight
Mr. Harrison is assuming the role of a “White Knight”, after arranging financing for the deal for DMH & Co. via private equity. ALD’s previous management are in the process of moving onto new business ventures and DMH is looking to re-ignite and re-invigorate ALD’s commercial activities, in particular the construction and sales of its property portfolio. As of Friday, 4th December, 2015, Mr. Harrison is a Board member of ALD.
DMH & Co. is also in the process of administering the creation of its own development brand, set to be called Harrison Homes. Harrison Homes’ first project will be the refurbishment of the White House development in Runcorn, which it agreed to acquire in a separate deal from ALD in November this year. The deal means that DMH & Co. has more than 600 units under construction.
“It is clear from the progress we have made in recent weeks working with Mr. Harrison that investors can be assured of a positive outcome for all the sites ALD currently has under development now that DMH & Co. is taking over the business,” said Samson Law, Executive Director of Hong Kong Homes.
“Having acted as the developer’s lead sales agent for those properties currently under development, we are looking forward to working with ALD as it delivers the hundreds of units on the development sites in the U.K. it has promised to investors, including Olicana House, Alexander House and Summerberry Residences among others,” Mr. Law said.
ALD, founded in 2013, currently has 624 units pre-sold and under construction with another 248 units already delivered to investors across the North of England. The developer boasts the fastest-selling development projects in Britain’s North which stand to generate an average 8.5% yield now that construction has regained momentum following DMH & Co.’s negotiations with the company’s backers as well as Mr. Harrison’s recapitalisation of operations.
New Suite of Property Financing Products
In addition to setting in play immediate construction and completion agreements of all sites in ALD’s portfolio, DMH & Co. is rolling out a new suite of generous financing packages to its buyers such as guaranteed earnings assured rebates (GEAR) and underwritten buyback agreements (UBA). Mr. Harrison said the products, which the company trialled in Beta this year, have been a runaway success.
“Investors love deep value, and the new financing products DMH & Co. is rolling out allow an investor to realize returns of up to 13% virtually risk-free as the profits are all underwritten from the outset,” said Mr. Harrison. “When you have a product that good, the whole world wants to know about it.” Mr. Harrison added that DMH & Co. would aggressively expand the broad product range of financing products to help deliver faster sales and even faster completion deadlines.
“ALD has the backbone of a fabulous company with the very best developments in the U.K. from a risk-return standpoint,” Mr Harrison said. “Not only are Manchester developments the fastest-selling in the North of England but other areas, such as Runcorn, present significant high yielding and capital growth opportunities for real estate investors. With construction to commence shortly with DMH’s support across all sites, DMH will ensure all ALD’s investors get the unprecedented returns they signed up for”.
DMH & Co.’s Aggressive Expansion
DMH & Co.’s expansion this year has been aggressive. The property development company, which is also in talks with a major high-end brand-name realtor to purchase a franchise presence in a number of various Asian jurisdictions, has already acquired the popular White House redevelopment project based in Runcorn with a gross development value of 28 million pounds (SGD$60 million) earlier in the month. Harrison said that since that acquisition, pre-sales preceding the official launch of the development in January have been heavily oversubscribed.
“What investors are noticing is the massive value we, as a well-capitalized developer with a wide Hong Kong- and Singapore-based distribution presence, can offer in terms of innovative pricing structures, risk mitigation factors and return incentives,” Mr. Harrison said. “Now with this agreement to take over all of Absolute Living Development’s business activities, we will be able to capitalize on the highly fragmented nature of the U.K. property development industry and drive through a monopolistic sort of growth in the areas ALD has invested in.”
About Daniel Mark Harrison & Co. Pte. Ltd.
Daniel Mark Harrison & Co. (DMH & Co.) is the North of England’s largest property development company based in Singapore and Manchester with over SGD $150 million of real estate assets and sales of SGD $40 million per year. The company’s Manchester-based Orchid Point developments are the fastest-selling properties in the North of England and are yielding 8% annual returns. DMH & Co.’s founder, Daniel Mark Harrison, is the oldest of 9 generations of the founding family of Europe’s oldest security printers, Harrison & Sons Ltd., founded in 1750 and sold to De La Rue PLC in 1997.