Smart developers will grow stronger as rivals go bust

Aug 20 2008 by Bill Gleeson, Liverpool Daily Post

VERMONT Developments has become the latest Liverpool property firm to succumb to the harsh climate presently affecting the world’s property market.

On the face of it, Vermont took the right decision when it decided to mothball its £40m Foundry Wharf residential scheme in Salford. Now is not the time to proceed with yet more residential construction projects.

Yet that decision appears to have got them in trouble with one of their funders, London-based Downing Corporate Finance. Downing wants its £4m back. The problem is that some of the work was started at Foundry Wharf and so the money has been spent.

At the same time, there are plenty of other developers who haven’t gone bust. Instead, they have remained alert to the fact that market conditions can and do change, quite dramatically and rapidly. These developers have not overstretched their finances, allowing them to cope with the leaner times.

Who are these wise players? We will see that in about a year’s time, when the worst of the troubles are behind us. Those that are still in business will be the stronger for it, ready to make the most of low property values and ride the next wave upwards.

In the meantime, however, there may well be more casualties to follow.

BRANDING consultants Saffron, who have a track record of advising on the branding of cities, has placed Liverpool at the top of its table of places that have done the most to promote their image.

Saffron places Liverpool third out of 72 European cities.

It ranked cities by three criteria. First, it looked at their assets – the real stuff on the ground such as shops, restaurants, galleries and museums, transport and whether the people are friendly and helpful.

Many locals would expect Liverpool to do well in most of these categories. After all, scores of new shops and restaurants have opened in recent months and years, and the Walker, Tate and our museums are excellent and we like to think we are a friendly, welcoming bunch.

But Saffron disagrees. The consultancy ranks Liverpool seventh from bottom in its table of assets.

However, in a second table, Saffron ranks Liverpool 28th out of 72. The table looks at whether, for example, people recognise pictures of the city and how many column inches are written about it in the newspapers.

Saffron then uses the first two tables to derive a third listing which evaluates how well the city’s promoters are doing in selling the city far and wide.

Liverpool’s low ranking in the assets table and its relatively high ranking in the image table means those that are promoting it are doing a good job at making the most of the material at their disposal, says Saffron. Liverpool finishes third in this last table. Only Berlin and Stockholm are doing better.

Yet, how should we take this analysis?

First off, we should say well done to the likes of The Mersey Partnership, the body responsible for market- ing the region to tourists.

On the other hand, Saffron’s assessment amounts to a bit of a back-handed compliment. It is saying you are marketing the place well, but it’s not really got all that much going for it – which doesn’t sound right either. Saffron tells us that Cardiff and Belfast have better assets, yet many of us wouldn’t swap what they have to offer with the likes of the Tate or Walker.

There is a third way to take this survey – as just a bit of nonsense dreamed up by a self- publicist to sell his expertise at a slow time of year.