Founded in 1978, Barteak Developments Ltd will see its 2007 development portfolio grow by 60 per cent to £40million thanks to the acquisition of a number of new mixed use sites.

In 2006, the developer made a noticeable impact on the region, building 250 apartments throughout the Midlands, alongside 25,000 sq ft of offices, and a number of retail units as a crucial element of mixed-use schemes. It has gone about its ambitious expansion programme by acquiring sites which are suitable for a mix of at least three uses, such as licensed and non licensed retail, offices, new homes and care home facilities.

David Back, managing director of Barteak said:

"PLC housebuilders have had to jump on board the mixed-use bandwagon, but they have only chosen to do so with large sites offering at least 10 acres of developable space. However, we have identified a number of sites between two and five acres that demand the same strategic planning and development approach, yet can deliver a lucrative profit return.

"We are pioneering the development of care home facilities as part of suitable mixed-use sites, which are likely to also include new homes, street level retail and business units, and potentially an element of licensed retail as well, such as a local pub or restaurant. In doing so, we have been able to acquire a number of sites which simply don't appear viable to large national developers who generally adopt a very black and white approach to development appraisals."

Barteak has acquired five mixed-use development opportunities in the East Midlands, alongside Stourbridge and two sites in East Birmingham. The company is also in discussions to acquire a site in Bournemouth for a proposed care home facility, a number of new homes, and at least one other building use.

The Dorridge-based developer is also on track to achieve a 60 per cent growth in annual turnover through its expansion into central Birmingham, with a strategic gateway site located on Edward Street/Sand Pits Parade. And, in addition to its first mixed-use opportunity in the East Midlands, Barteak has already acquired a further four sites in recent months within Nottingham for residential development, one of which is already on site. Barteak expects to generate £15m of gross development value in 2007 through its expansion into the East Midlands.

David Back continued:

"Barteak's last significant growth surge was during 2000/1 when we carved a niche in the regional market by targeting secondary locations, predominantly in the Black Country and East Birmingham. These were tailored for apartment schemes of circa 25 - 50 units that were aimed at the booming investment market. Always selling well in advance of build completion, and not disappointing in any aspect of build quality and specification, we have established a loyal following of buy-to-let investors who have become serial buyers.

"Whilst this is a market that we are still very active in, there has been considerably more competition for modestly sized sites in secondary locations in recent years, due to the growing number of regional developers who have witnessed the recent successes and want to stake their claim on new opportunities.

"Expanding into complex mixed-use schemes is therefore a new turning point for us. We have been planning our entry into this market for several months and as a key aspect of our due diligence, we have carefully researched the stringent demands of corporate care home operators. We have established that market leaders such as BUPA demand a turnkey solution to acquiring a new facility, but do not actually seek to develop out sites themselves.

"This is why, having acquired a site that we know demands a mixed-use approach, we are putting together the entire development appraisal and planning application, and then actually following through with the construction phase of each element of the site, rather than packaging up smaller opportunities to sell off to specialist firms.

"We expect that as we develop a name for ourselves in this comprehensive mixed-use market, we will be able to build our annual turnover to well in excess of £70m by 2010."

ENDS

Press release drafted by Charlotte Crossley at Core Marketing on 0121 643 8151 www.barteak.co.uk