Euro Vision

Miller Developments is part of the Miller Group, the UK’s largest privately-owned housebuilding, property development and construction company. Established more than 30 years ago, Miller Developments has been active in Europe for almost 10 years and is currently operating in nine countries. The focus, to date, has been on retail projects in EU and EU accession states, with a preference for development projects over investments.

Retail development
All developments are undertaken in joint venture with local partners (see table), preferably on a 50:50 equity basis. Development functions are typically shared, but the local partner is invariably responsible for land assembly and the procurement of building permits.

Miller is a trader-developer and, as such, typically approaches each project on the bass of an investment sale 12 months after completion, subject to the prevailing market conditions. Miller’s development pipeline currently stands in the region of 1.9 million sq ft (175,000sq m) of retail space, with an estimated end value of €400m (£260m).

Investing in retail
Although retail development remains at the core of the firm’s activity, also of importance is Miller’s considerable retail trading investment portfolio, currently valued in excess of €200m (£154m).

Investments are normally only made where there are added-value opportunities such as extensions, refurbishments and reconfigurations etc. Alternatively, Miller acts on a forward-commitment basis, where it can exploit its considerable accumulated pan-European expertise to influence and assist in the delivery of the development. Miller will invest on a solo basis or, where the size of the project makes it preferable, in joint venture.

Land speculation and residential schemes
Although separate from Miller’s obvious strengths in retail, the firm has started looking for land speculation and residential schemes throughout central Europe. Inspired by the success of the UK change-of-use team and the clear opportunities that central Europe has to offer, this new line of business will again be undertaken in joint venture with local partners. Potential acquisitions in Romania and Bulgaria are currently being progressed, with further opportunities in countries such as the Czech Republic being considered by Miller’s European team.

Going forward
So what does the future have in store for Miller Developments? The firm is actively seeking to double its retail development pipeline over the next two years and is keen to consider any opportunity that meets the broad criteria outlined above. With simple and direct reporting lines, the company is in a position to move quickly if it feels an opportunity fits in with its overall strategy – another of the many benefits of being privately-owned.

Miller Development’s approach can be neatly summed-up as ‘opportunistic’ and the firm works towards a culture where no ideas or proposals are dismissed out of hand. Potential projects in new markets will always be considered as long as a suitable local partner can be identified.

All new business in Europe is dealt with by Neil Johnston (neil.johnston@miller.co.uk) and Mark Hewett (mark.hewett@miller.co.uk).

Further information about Miller Developments can be found by visiting the website at www.developments.miller.co.uk.

Country Development
JV Partner
Denmark

Premier Outlets Center, Ringsted
TK Development
Hungary
Premier Outlets Center, Budapest
Raiffeisen Ingatlan RT
Portugal
Coimbra Retail Park, Porto
Sonae Sierra
Lima Retail Park, Viano Do Castelo
Sonae Sierra
Sintra Retail Park, Lisbon
Sonae Sierra
Spain
Las Pulianos, Granada
Sonae Sierra