It’s not everyday that a multi-millionaire serial entrepreneur asks you to his office for advice and ends up offering you a job on the spot as the director of a new company.
But in 2002, that’s exactly what happened to Andrew Dickman, then an industrial director at Savills in Manchester. The entrepreneur in question was Sale Sharks RUFC owner Brian Kennedy, who at that time also owned the Everest double-glazing empire and Stockport County FC.
“A mutual friend said that Brian wanted to set up a property business, and I came and spoke with him about how Savills could help,” recounts Dickman. “I was a bit shocked when he finished the meeting by asking when did I want to start.”
The company is Patrick Properties, which Dickman has been running from the outset. The firm currently has a £38m investment portfolio, £25m tied up in development, and plans to grow further.
The right match
Southport-born Dickman and Kennedy, a Scot, have a good rapport. Sipping tea at Patrick’s offices in Wilmslow, Cheshire’s leafy playground for the rich and famous, Kennedy occasionally gently mocks his right hand man.
But it’s clear that Kennedy, who according to the Sunday Times Rich List is worth £208m, has respect for Dickman. Why else would he trust him with the smooth running of his burgeoning property empire?
On the eve of the company’s third anniversary, Kennedy, dressed casually in jeans and a short-sleeved shirt, explains for the first time what drew him into the world of commercial property.
“Every businessman says the same – if you have liquid cash, property is a nice business to go into,” he says. “It’s perceived by entrepreneurs and industrialists as ‘softer’ but, in the long term, it’s the kind of business you can create a legacy with.
“But, like every business I go into, I don’t do it without someone who has proven expertise in the field.”
Step forward, Dickman. In contrast to his boss, he’s sharp-suited and feeling a little stiff after completing the Great North Run a couple of days earlier. He explains that the company is keen to forge a strong reputation on the North West scene.
“We’ve tried not to boast about what we’re doing until we’ve done it,” he says. “Reputation is important and we’ve always tried to do what we said we would do.”
By way of explanation of his decision to jump the fence from agency to development, he adds: “Having spent many years as an agent offering advice to clients, this was an ideal opportunity for me to test my own judgment, as well as take on board the good advice available from other agents in the market place.”
Seeking diverse development
Patrick is in a position to make a mark. Following a series of smaller industrial developments in Winsford, Crewe, Oldham and Burnley, the company is getting into its stride. Last month, in a joint venture with Glasgow-based LNC Properties, it won permission for Galaxy, a sizeable 475,000 sq ft warehouse development in Knowsley, Merseyside.
The firm is also plotting a 345,000 sq ft industrial and warehouse development in Glossop. The scheme, called Graphite, and sited close to the end of the M67 not far from Hyde in Greater Manchester, is not a traditional location for sheds. But this fits in with Dickman’s stated strategy of “buying off-pitch and making it prime”.
So far, Patrick has an unapologetic focus on sheds – but this could change. “At present, we’re comfortable with what we’re doing, but we are looking towards more diversity,” says Dickman. “We will be looking more at offices, and some retail opportunities.”
Dickman refuses to rule out city-centre mixed-use development, but admits he is “cautious” regarding that sector because of what he sees as limited growth opportunities. “We have to acknowledge that, sometimes, there are others better than us,” he says.
But Kennedy stresses that it isn’t Patrick’s aim to do things by halves, and says no limit has been placed on the size of the company’s growth. “Like any business,” he says, “you lay the foundations. You need to learn the business, which we have done. But if you’re going to do something, you do it properly. You don’t waste time on small businesses.”
He adds: “We want to be a substantial property player. We aim to have a significant portfolio, and will be as big as the opportunities that present themselves. We haven’t said we will build a £100m portfolio and then stop. If it’s the right opportunity, there’s no limit to where the company will go.”
Meanwhile, Kennedy’s non-property interests remain diverse and acquisitive. Despite having sold Everest as part of a management buy out in 2003, he retains a stake in the business. His Latium Group owns Weatherseal windows, its subsidiary Supreme O Glaze and conservatory systems specialist Wendland. During the summer, Latium completed the purchase of HW Plastics, which supplies window components.
Then there’s Sale Sharks, which is owned by Kennedy through his Cheshire Sport outfit. Until recently, that company also owned Stockport County FC, but the club — which finished bottom of England’s League One last season – was handed to a supporters’ trust free of charge this summer, along with the gift of a 25-year lease at its current ground, Edgeley Park, which is owned by Cheshire Sport. Kennedy says that he did it in the club’s best interest, having decided against recouping some of his losses by selling it to a third party.
Although Patrick has already sold off some small property assets, the firm’s overall strategy is to build a business based on both development and investment. “The firm is set up as holding company with a development vehicle and an investment vehicle underneath,” Dickman explains. “When schemes are let, they are pushed into the investment portfolio.”
Under Dickman’s supervision, and with Kennedy’s words about legacy-building, there’s no reason why Patrick won’t continue to grow and grow.
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Born 1961, Edinburgh Education Tynecastle High School, Edinburgh. Left aged 17 to join the Royal Bank of Scotland as a trainee manager. Also trained as an accountant Career 1980 Moben Kitchens. Appointed branch manager at the age of 20 1984 Operations director and shareholder, Farouche Kitchens 1989 Set up the Weatherseal Group, buying the assets and trading name of Weatherseal Windows. Subsequently formed Space Kitchens and purchased Supreme-O-Glaze, St Helens Glass and Scotplas Plastic Distribution 1995 Formed Genesis Communications, a mobile airtime service provider 1999 Raised £42m funding to buy Everest and the CDW Group from Caradon 2002 Formed Patrick Properties. Purchased Sale RUFC, established Cheshire Sports Promotions to include both the rugby club and Stockport County FC. Sold Duraflex, part of CDW, for £30m and Genesis to the Dixons Group for £31m 2003 Sold Everest for £62m and reinvested equity capital to retain majority equity 2004 Sold Scotplas for £6m Young Entrepreneur of the Year 2000, awarded by the North West region of the Institute of Directors. Ernst & Young Master Entrepreneur of the Year award (2000) for the North of England Lifestyle He lives in Cheshire and is married with five children. Born 1968, Southport Education 1986-89 Nottingham Trent University (Urban Estates Surveying) Career 1989 Graduate surveyor, Lambert Smith Hampton 1990 Surveyor, J Trevor & Sons 1995 Associate director, Innes England 1996 Partner, Fuller Peiser 1998 Director, FPDSavills 2003 Director, Patrick Properties Interests Completed the Great North Run this year for the third year in a row, placing 6,737th. Has raised more than £13,000 for charity by competing in the race. |
