Property, says Irvine Sellar, is like love. It is not always constant. Not always reliable. And not always good. “You know when you fall in love, and it’s amazing?” he asks, semi-rhetorically. “But when it goes wrong? Well, then you don’t like it any more. But then, then you meet someone else and it is magical all over again. It’s just like a deal. You do a good deal and you’re in love. You do a bad one and it’s like ‘get me out of here’. Now, how is that for romance?”
For the purposes of commitment to the analogy, one could say that the chief executive of Sellar Property Group is in the midst of a tempestuous relationship with the love of his life.
“I can’t imagine anything out there better,” he says of the £1.4bn London Bridge Quarter development. “I don’t see how I will ever top what we have done here.”
He talks momentarily in the past tense before appearing to correct himself for the remainder of the interview. After all, the 74-year-old knows more than anyone that there are plenty of years – and hurdles – left in the mega-scheme yet.
The Shard, the compass of the project, as Sellar refers to it, may have completed, but with questions over lettings still largely unanswered, delays at the Shangri-La hotel and plans for a further six developments now in the pipeline, there remains “so much to be done”.
Over a cup of tea on the 22nd floor of the Shard – “We’ve got green tea. Have that. It’s better for you.” – Sellar talks LBQ, reveals plans for a potential overseas debut, and tries his hardest to brush off talk of new projects in the capital.
Beyond SE1
Sellar is quick to insist that LBQ is still right at the top of his priority list. It was announced just last month that he will be working again with the Qataris and architect Renzo Piano, the same team that delivered the Shard – to deliver two smaller residential towers by the end of 2017. The “Shard-ettes”, as they have been informally dubbed, will be the precursor to three of four additional developments as part of the LBQ scheme – though no dates on those as yet. But more on that later.
First thing’s first, as Sellar is yet to formally clarify news that he is in talks with stakeholders about plans to redevelop Paddington Station – a project that would most likely become his first major scheme since LBQ.
After so many years being Mr Shard, could this move from SE1 to W2 be part of a future reinvention? “There are a lot of exciting things happening and Paddington may not actually be the most exciting thing we have on the table right now.” So it is on the table then? “I said may. May not be…” he trails off into laughter and a resigned shrug.
A rare slip of the tongue and a bit of overzealous backtracking is about as close to a formal clarification as Sellar is prepared to go.
But he does reveal that Paddington is not the only potential new scheme being considered: “We have not pinpointed anywhere in particular yet, but we are looking at possible schemes in Canada, Colombia, Malaysia and Indonesia.”
An overseas project would be a first for the developer. Sellar explains it would be a move off the back of the global success of the Shard: “It is one of the few buildings to be completed in London that has caught the imagination of the world,” ?he says.
“We have been offered a lot of great projects around the globe off the back of it and while my focus is here in London at the moment, we are on the lookout for the future.”
And he doesn’t rule out a possible scheme in Qatar: “I wouldn’t say no. We have had a good partnership with the State of Qatar. We are partners in real estate management and partners in the new towers planned for LBQ. It’s a relationship that works well.”
Closer to home
Talk of this relationship pulls focus back to LBQ. On the day of this interview, the Shard and the Place formally completed – “We are due to reach practical completion on the Place today,” – and attention is starting to turn to the next projects on the list. News broke last month of plans for two smaller residential towers to be developed between the Shard and the Place. Sellar, the Qataris and Renzo Piano will deliver the 20-30 storey buildings by 2017, comprising 170 flats between them.
“They will be high-ish end,” says Sellar. “Mid-range resi. We will submit plans in a few months and plan to start on site by mid 2014. There will be three of four other developments to come as well as these towers. But I am not going to get into square footage or timings on all of that yet.”
As well as these new schemes, Sellar is still battling a barrage of questions over elements of the project that are already on-site, with lettings in the Shard at the top of the list.
“We have let 430,000 sq ft to News Corp [at the Place] and around 4,500 journalists should be in their seats by the middle of next year. Between the Place and the Shard – which will both be let by the end of 2014 – around 12,500 people will be permanently employed. These projects won’t be totally complete until every piece of space is fully leased at the right rent.”
The “right rent” is another detail he is tight-lipped on. He will only go so far as to hint: “If you want to say between £55 and £75 per sq ft then you can do. That’s about right.
As usual, it’s not what Sellar says but what he doesn’t say that everyone wants to know. But he won’t be pushed: “We are happy with the level of lettings. Everyone is making assumptions here. When we are ready to announce them, we will. I won’t go into any more detail before then. Why? Because I don’t want to.”
As it stands, just 16% of the 589,000 sq ft Shard is understood to be let, with EG revealing the latest tenant last week. UK infrastructure and private equity manager Foresight Group is to take 10,000 sq ft. But Sellar ?insists all is under control.
“We won’t have one type of occupier. We will have private equity firms, lawyers, energy companies, PR firms, lawyers, accountants. We are mainly talking mid-sized firms.”
In terms of the sky-high luxury flats, it has been suggested there is interest from members of the Qatari royal family keen to snap up a room with a serious view: “There is a link,” says Sellar carefully. “But we can’t presume.”
Next on the list, the Shangri-La – “It’s late,” says Sellar loudly, as if launching a pre-emptive strike.
Indeed, the Shard’s hotel element has been dogged with problems and delays. After it was reported in June that the project was running six months behind schedule, the fit-out contractor on the job was thrown off the scheme earlier this month and replaced by Chorus Group.
“It’s late but we are on track now we have got the new lot in and we will soft launch later this year and open properly in mid 2014,” says Sellar.
Falling in and falling out
You have to hand it to Sellar. His life as a former market stall trader in north London is a well-told tale, but that doesn’t make his rise to one of the UK’s best known developers and the man behind one of the most famous developments in the world any less impressive.
Now worth £190m after a career spanning over 50 years of deals – or love affairs, as the man himself might refer to them – it would be fair to say that, despite the tempestuous nature of some, most have, at least, ended well.
As for what the next deal might be – the one to reignite the “magic” – who knows? Paddington Station? A debut development overseas? He says he doesn’t know yet. He probably does. But playing his cards close to his chest is a shrewd move. After all, anything could happen.
Property, says Irvine Sellar, is like love. It is not always constant. Not always reliable. And not always good.
Sellar on…
The recovery
It has certainly been quicker in than out. But I think now we are on the way out. The attractiveness of London is powerful and it doesn’t seem to be stopping there. Interest is spreading into the regions. There is a lot more money chasing property than there is property available in the UK.
The building that hasn’t actually been built yet? Eventually it will be, but with a radically changed design I think. Ultimately, though, it will just be another building in the City.
The next big project
I don’t think like that. You just keep an open mind and take in what is offered. We are not a factory. It’s not like we have a model now that we are planning to stamp out again and again. We are developers, investors and traders.
