With one failed business behind him, Carl Turpin has bounced back to forge a successful career in property.

A country estate once graced by royalty and literary giants is testament to Colin Turpin’s steady rise in the property industry.

The qualified accountant has gone from buying a few residential buildings in the 1980s to running Oakdene Homes, an established residential property developer that owns one of southern England’s grandest stately manors.

Perhaps one of Turpin’s most notable acquisitions, Swaylands, is a Victorian mansion on a 50-acre site in Kent. King Edward VII frequently visited the estate for royal engagements and social events during the early 1900s, while authors JM Barrie and John Buchan, who wrote Peter Pan and The Thirty Nine Steps respectively, were other guests.

Ironically, Turpin was more interested in rival Honeygrove plc when he acquired Swaylands. In 2004, terms concerning a £9.5 million takeover of the Kent-based property developer were agreed, with Honeygrove’s management offering Swaylands as part of the deal.

With Oakdene’s board expecting high returns, Swaylands appears to be a sound investment. Along with join venture partner Heritable Bank, the company has already developed 10 apartments at Swaylands, transforming the site into a prime residential location for affluent buyers. Meanwhile, planning permission to build a further 29 units, worth up to £1.5 million each, has been secured.

Developing a partnership with the bank was an obvious move following the Swaylands acquisition, according to Turpin. “The reason for a joint venture with Heritable Bank was we needed the cash to expand our regular business,” he says. “We didn’t want to leave about £18 million tied up in Swaylands, so Heritable put the cash up, we put the expertise in and we have a profit share arrangement, which is beneficial to both of us.”

Aside from Swaylands, the company has also completed several land acquisitions and business takeovers during the past few years. In December 2005, Oakdene acquired a site with 24-acres of undeveloped land in Newhaven for £12 million.

The plan is to build 650 apartments on the land and redevelop the nearby Newhaven Marina into an attractive residential community for first or second time buyers. The area surrounding the marina will provide pedestrian only access and local amenities such as a post office, butcher that sells fresh fish and a Somerfield store. Other attractions include a ferry service to Dieppe, France and transport links to Brighton and Eastbourne.

Stumbling blocks

The deal was far from straightforward. Turpin was keen to acquire the land from Sea Containers Ltd in 2002, but agreeing terms with the passenger transport and marine container leasing company proved a major stumbling block. To complicate matters, Bermuda-based Sea Containers was struggling to pay off reported £339 million debts, with the company eventually filing for Chapter 11 bankruptcy protection in the US last October.

Nevertheless, Turpin’s perseverance paid off with the deal completed in December 2005. “We stuck with it for a long time,” he says. “Sea Container was in some difficulty, but we went to the wire and managed to get Newhaven at the last gasp.

“It’s a good deal for us. The land is by the coast and has a natural marina, which was crying out for redevelopment. People like living by the water, it’s only 15 minutes from Brighton by car and is one of many developments along the south coast.”

Turpin is considered a leading player in the house building industry, having developed an extensive property portfolio during the past 27 years. But like most entrepreneurs he has encountered several obstacles along the way.

An accountant by trade, Turpin started out at the lower end of the market with a few minor residential property purchases. He soon developed a passion for the industry and eventually quit his day job. “I qualified as an accountant in 1976, but it wasn’t a profession I enjoyed. I’d built up a reasonable practice and didn’t want to take it further – I much preferred property.

“The risk/reward is much greater; as an accountant you can earn a good living but you are never going to be particularly rich, whereas if you have a successful company you can float it and have a much greater wealth – and it’s more exciting. Accountancy isn’t known for its off-the-wall attitude to anything, so it’s more enjoyable being involved in property or business generally.”

By the late 1980s, Turpin had built up a moderately successful business, but like many directors he was a victim of the recession that lasted until 1993. The company subsequently went bust, forcing Turpin to cut his losses and start again.

Friends and relatives rallied round, raising a combined £750,000, while Turpin secured a further £250,000 from a bank. Oakdene Homes was up and running in 1996, giving Turpin a second chance at the property industry. “We had a great recession from 1989 to 1993 and shortly after that the property market started to revive. House building has never been the flavour of the month on the stock exchange, but it moved from being in the doldrums to a point where it was a good time to start another business.”

No such luck

Market conditions and unfortunate timing contributed to the first business’s demise. But Oakdene Homes has avoided similar problems, having developed into a leading house building company. The Reigate-based business operates in southern England, with an extensive portfolio of land and properties in Sussex, Surrey and Kent.
Each year, Oakdene builds some 200 units and is constantly searching for new development sites. Within the next two months, the company will have started building 63 residential properties on the Isle of Wright and 125 in various locations across southern England. It’s a far cry from the early days when the company had a modest portfolio.

“When we first started the company only had one unit here or there, but we are now at the point where there are more than 200 units being built each year. It’s moving along quite rapidly.”

A good eye for development sites with untapped potential has long been the key to Oakdene’s success. But other factors have contributed, such as hitting the acquisition trail and launching on AIM. In May 2004, some 4.54 million shares were placed at 10p each, raising £5 million before expenses. The share price has since climbed to 210p, while profits were up 165% in last year’s opening half compared with the same period in 2005. Oakdene’s market capitalisation has also jumped to some £70 million from £15 million on admission.

Meanwhile, Turpin and his management team have continued to strengthen the company through acquisition, with Chequer Homes Ltd the latest addition to the group. The Kent-based housing developer was bought for £3 million, expanding Oakdene’s coverage in the south of England.

The company’s growth has not gone unnoticed, with other property developers reportedly interested buying Oakdene. Most recently, Gladedale Group was linked to a takeover bid last August, although Turpin was quick to deny the rumours in a press statement. Selling the company is not on the agenda, although Turpin admits the board would consider at the right price.

“We are company with good staff and shareholders and if somebody made a bid, which I thought was worth recommending, I would tell the shareholders. Until that day comes everyone here is on a firm footing.”