Member Article

Fractional-investment sales model has helped continue Liverpool’s regeneration renaissance, Legacie Developments boss says

Legacie Developments boss, John Morley, says fractional-investment sales has helped Liverpool continue its regeneration renaissance despite a number of stalled developments in the city.

Mr Morley – whose company Legacie has delivered major residential schemes across Liverpool, including Reliance House in Water Street – believes the finance model has helped the city produce strong redevelopment results. The company is using it to fund a number of projects it has in the pipeline, such as Parliament Square where it will build 500 high-end apartments in the Baltic Triangle and a luxury four-star hotel on the site of a current car park in Duke Street.

The developer has also used the finance structure for its Ropemaker Place scheme, which is nearing completion.

However fractional-investment sales, whereby deposits from off-plan buyers fund much of the development, has attracted heavy criticism after a number of development schemes in Liverpool stalled and investors were left out of pocket. Individuals are promised yields in return, including interest on their investments and rental income, once the buildings are finished.

Many of the city’s developments have been successfully financed using fractional sales, particularly after the global financial crash in 2008 when high street banks put the brakes on lending.

Now, the Legacie Developments boss believes Liverpool, which has seen a number of ambitious property projects delivered in recent years, would be foolish to move away from the finance model.

John Morley said:

“Fractional-investment sales have helped our property portfolio to expand rapidly, which has resulted in Legacie building the first-class accommodation Liverpool needs and deserves. We are on-site with major developments across the Liverpool city region which have created jobs, apprenticeships and training opportunities.

“Liverpool’s economy is booming, with overseas investors seeing the property market as a prime opportunity to invest. I believe the model is fit-for-purpose, though to protect developers and investors alike it does need some regulation. It would help instill confidence and credibility and mean even more investment is pumped into the city. We would be happy to work with other developers to assist the Council with a plan to move forward with regulation to ensure we future-proof not only the development community but also Liverpool’s regeneration.”

This was posted in Bdaily's Members' News section by Liam Kelly .