Big store and homes scheme may bring 200 jobs

York-based S Harrison Developments is behind a plan to bring a new Tesco eco-store and petrol filling station to Whitby.

The proposed scheme would provide 93 homes, and accommodation for the elderly on a site at High Stakesby in Whitby.

Martyn Harrison, the company's chairman, believes it will help to ease the town's "chronic shortage" of affordable housing.

S Harrison is working with Tesco and Broadacres Housing Association to propose a scheme that would feature an "eco-store" using a low-carbon timber structural frame, roof ventilators and roof lighting to reduce the amount of artificial light.

It's one of a number of schemes which Harrison has in the pipeline.

Mr Harrison said he had a "cautiously optimistic outlook" for 2010.

He told the Yorkshire Post: "This year is going to be sleeves rolled up and hard work."

The company recently secured a 1.2m investment in its Grade II listed HQ building at the former Terry's chocolate works. Work will be completed in September this year.

"It makes sense to use our own HQ to pilot green technologies and set an example of how to bring old buildings back into sustainable use," said Mr Harrison, whose group delivered post-tax profits of 5.07m and 1.74m in 2007 and 2008.

The company expects to deliver "modest profits" when its 2009 figures are published later this summer.

The company has around 17m of net assets, of which 5.5m is held in cash.

Ann Scott, the company's finance director, said: "Banks remain reluctant to lend and we've all seen developers with no reserves forced into fire sales of stock to raise capital.

"We have cash at the ready to provide equity to capitalise new schemes."

Harrison sold its construction business in 2007 to focus on developments.

Mr Harrison added: "Market conditions will remain tough for some time as the UK repairs its economy.

"One very real fear is that Government spending cuts may impact negatively on the social housing sector, which is already falling a long way short of delivering the housing numbers required."

He said this would have a "serious impact" on the lives of some vulnerable people.

He added: "A quick scheme might take two years whereas larger-scale projects may take between three and five years to deliver. The key thing is to have a mix of work in a range of sectors spread across the pipeline cycle."

At Escrick near York, the company's 8m office and warehousing business park has attracted UK and international inward investors.

This September, Harrison will hand over 232 student accommodation units to York St John University, in a 12m deal.

Progress on S Harrison's 110m town centre retail and leisure scheme in Lichfield, Staffordshire, depends on the funding market "re-discovering its appetite" for major schemes.

Mr Harrison said he was confident that "when it does, Friarsgate will be one of the first projects to get back on track".

A second scheme there, to provide car parking, a hotel and sheltered housing, is anticipated to start on site later this year.

In York, S Harrison's joint venture partnership with national property group Buccleuch Property is providing the new headquarters and customer centre for City of York Council.

The 32m land and building scheme will see West Offices, York's former railway station, undergo redevelopment.

FIRM STARTED SMALL AND GREW

The S Harrison Group was founded by the late Stanley Harrison in 1952. Originally a small local building company, the business expanded and opened a headquarters at Malton Station in 1998.

Under the leadership of Stanley's son Martyn, the group grew construction and development businesses in parallel until 2007, when the decision was taken to sell the construction arm to Rok.

The group now has its headquarters at The Chocolate Works – the former Terry's site in York.

For the third year, Harrison is sponsoring the Trek for Children in Nepal – at Castle Howard on June 20. For information visit www.challenge4nepal.org