Time for North to fight back, says veteran

Alistair Russell, whose previous roles include European and English main board director at Jones Lang LaSalle, has been appointed director of investment at commercial property and rating specialists Dunlop Heywood in Leeds.

Mr Russell said a more “creative” approach was needed to deal making and the industry needed to work harder at re-balancing the North-South divide.

“The market itself has been turned on its head in the past three years, but it hasn’t stopped,” he said. “We need to do things differently and be more creative in our strategies and deal making. In my time in London you would hardly think there had been a recession.

“We need to work harder at re-balancing the perception of North and South. I want to promote the North aggressively in these difficult times; to push the market on and help our clients achieve their ambitions and objectives.

“The lack of finance continues to be a challenge and while this is unlikely to change in the immediate future, it is incumbent on us locally to create the business environment and confidence to attract what investment is available.”

Mr Russell’s appointment comes after a strong period of growth at Dunlop Heywood which has seen staff numbers grow from 12 to 28 in six months, as well as a new office in Dublin.

The Leeds team has doubled in size since it opened in 2010 and the Manchester team is in the process of searching for larger offices in the city to accommodate rising staff numbers.

Large commercial property consultancies are starting to consolidate but Mr Russell believes this has left a gap in the middle ground between global and niche operators.

He said: “The market for professional property services is consolidating with the big getting bigger and the choice of suppliers reducing.

“The opportunity for Dunlop Heywood is to own the middle ground as a national player focused on the UK.”

He added: “In the professional property services industry the weakness in the market has had the effect of the larger firms becoming more London centric and consolidation of choice through merger and takeover.

“This follows on from the virtual disappearance of the mid size ‘national’” firms who have either sold out or merged to go ‘global’.

“Behind the rhetoric of merger, this consolidation is about securing turnover in a market of low activity, no organic growth and weakening margins.

“New revenue lines are purchased with the sole intention of enhancing margins by efficiencies of bringing two organisations together, namely, duplicate office and central costs and, of course, the main overhead, reducing staff numbers.”

However, Mr Russell warned that the “enlarged, global monoliths” had to consider the consequences of fewer providers, which he said would lead to less competition; a reduction in the quality of service; and the priority their provider places on that client and their business.

He said: “We believe that Dunlop Heywood can occupy that middle ground between global and niche operators where the focus is domestic, the client is key and overall service is of quality and highly personalised.”

Mr Russell has over 30 years’ experience in the investment and commercial property sectors throughout the UK.

After leaving Jones Lang LaSalle in 2005, where he was also a director in the Leeds office, he worked as consultant to the Evans Property Group and Town Centre Securities before joining GL Hearn as investment director based in London. He said: “I have been looking to find a base back in Yorkshire for some time.”

He added: “For those of us involved in the business we have responsibility to change perceptions, go forward with confidence in our markets and be more creative in delivering property solutions.

“There are investors with funds available. At present, the focus is on the South East, however, that is progressively being seen as expensive. Our confidence will shape investor attitude to our markets. We also have to build perception for the future rather than being too retrospective and stuck in the past.”

Mr Russell believes property remains key to economic recovery and the efficient use of property, either physically or financially, is crucial to corporates in delivering shareholder value.

He said: “We have all been through a hellish three years and are all feeling a bit battered and bruised with life and as a region we probably feel we are languishing. But we have to keep people positive about what we do.”

He added: “The hope and anticipation is that as we move to the next two years, the economy will have dealt with the deficit and that growth will come back.”

Stuart Hicks, managing director at Dunlop Heywood, added: “Alistair brings a wealth of experience with him at a time when we are managing our expansion nationally. He was keen to get back to the coal face of deal making and be involved in a company where the client comes first and the business is driven by overall client service, not disparate business lines. And that is exactly how we work.”

A knowledge of the sector

Alistair Russell has almost 35 years’ experience in commercial property, with particular expertise in the North of England, London & Scottish property markets.

Prior to joining Dunlop Heywood, he was investment director for GL Hearn with special responsibility for national investment business.

Before that, he worked in a number of senior consulting and director roles including European director, national investment, for Jones Lang LaSalle. Between 1994 and 2005 he worked on many significant investment deals in Leeds, including: 1 Park Row (Bastionen), Princes Exchange (Teesland), Bridgewater Place (CPPI Partnership), Lawnswood (Evans Group), and Wellington Place (Hermes).