Mactaggart Heritable Holdings Ltd. - Sir John Mactaggart65 Bath Street
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Mactaggart Heritable feels heat of slowdown - Sir John Mactaggart
MARK SMITH, Deputy Business Editor October 07 2008
Mactaggart Heritable Holdings, the family property business of millionaire Labour MP Fiona Mactaggart, suffered another slide in profits last year as the global economy began to slip into a funk - but the group also said it was waiting for the market to deteriorate further before jumping on the acquisition trail.
The company, which trades as the Western Heritable Investment Company and owns a string of high-priced commercial properties mostly in London and Manhattan, revealed pre-tax profits of £2.2m for the 2007 calendar year, down from £3.7m the year before.
The vice-like squeeze on Western economies' lifeblood of lending to households and businesses has been traced back to August 2007 - eight months into Mactaggart's last financial year - and no let-up is yet in sight for the depressed property market.
Asked how the company was coping with the ongoing slump, Tom Roland, Mactaggart's company secretary, said: "Well, being a property developer, I have to say we'll be lucky if our bottom line is quite as rosy this year as it was last year - especially because a lot of business last year was conducted before the credit crunch.
"Most of our properties are in London and in Manhattan's Diamond District, and property values have been hit on both sides of the Atlantic. All we can do is try to keep people in their leases and keep prices steady."
The Diamond District, located on West 47th Street between Fifth Avenue and Sixth Avenue in midtown Manhattan, remains one of New York's most expensive commercial-rent areas. The company also owns and manages some residential property in Glasgow.
Roland said: "We haven't had to lower any rents yet - and we're hoping we can keep it that way. Despite the downturn, the letting market is still quite buoyant."
Asked about potential acquisitions, Roland added: "We've sold a few things, but we haven't bought for a while. Our plan is wait about 12 months. We think the market will be ripe for acquisitions then, when the market drops even further."
The company's last acquisition is understood to have been a freehold investment property in London, for which it paid almost £5m.
Mactaggart's 2007 accounts were not yet available at Companies House. However, Roland said the group had turned over £16.1m last year, including its share of joint ventures, compared with £15.6m the year before.
In 2006, the company's shareholders shared a £1.9m interim dividend. No dividend figure was available for 2007.
The company traces its roots back to the great-grandfather of the Labour MP and her older brother and company chairman, Sir John Mactaggart. Also Sir John, he started building tenements in Springburn, Glasgow, in 1898.
Over the next few years he built more than 2000 middle-class homes in the south and west of the city.
In 1925, Sir John's son, Jack, set up the Mactaggart & Mickel construction business with Andrew Mickel, while Western Heritable was established to handle rental property.
The current Sir John, 56, has a personal fortune estimated at around £90m, according to 2008 Sunday Times Rich List. His firm is headquartered in Bath Street, Glasgow.
base2stay announces second property in Liverpool - Sir John Mactaggart
30 March 2009 16:35 GMT (London) - sleepermagazine.co.uk
Lloyds TSB Corporate Market confirms commitment to second base2stay hotel
base2stay have announced that construction of a second property in Liverpool is underway, with the hotel due to open in September 2010. Sir John Mactaggart
The base2stay concept was created by property entrepreneurs Sir John Mactaggart and Robert Nadler, and is backed by Sir John’s Western Heritable Investment Company. Lloyds Banking Group is providing development finance for the Liverpool regeneration project, having already funded the original Kensington base2stay, which opened in April 2006.
base2stay, a brand that offers hotel guests four star comforts with no hidden charges or unnecessary services, is also considering a number of management contract opportunities, whilst it assesses the potential to convert two further properties within Western Heritable’s Central London property portfolio from offices into base2stay hotels.