The Big Interview

Whenever we talk to a construction company here at Northern Insight, it’s usually about a new development. However, that wasn’t the case when we went to see Gary Morton at the Morton Group.

Yes, his company has various construction plans in the pipeline and yes, they have a stunning housing development in Gosforth, but that was to come later in our conversation. “We are shaking-up the way the construction industry does business and how they go about property development,” said Gary. “We operate an ‘open book’ approach where we show potential investors absolutely everything about what we intend to do, how we intend to do it and what sort of return they can expect. We engage with them.”

Of course a big plus point for Gary and the Morton Group is that they have a proven track record. Although the company was formed only three years ago, this is a family firm which has its roots back in 1980. In terms of what you can expect from them, all you have to do is go to All Saints Church overlooking Newcastle’s quayside to see the standard of workmanship and attention to detail which potential investors can expect in all future developments.

It also helps if you’ve been there and done it, when it comes to the construction business. Gary comes from a family of builders. His father, Brian, is one of the directors of the Morton Group.

“I’ve been working in the building industry since I was eight, helping out my family on various schemes. I studied at Northumbria University, graduated as a Quantity Surveyor and then went to work for several well-known firms who were involved in major projects like Crossrail in London. I was with Arcadis Group for the rebuilding of London Bridge Station which necessitated keeping London’s fourth busiest station open for the 50 million passengers that use it each year while also undergoing a massive construction programme. The experience I gained was invaluable, but I always knew there was a better way for construction and development companies to operate. I also wanted to make sure that any new company would do things the right way in terms of how we look after our staff and how we treat investors and suppliers.”

So in December 2016, Gary formed the Morton Group. There are now three companies within the group;

Kapex Construction is the building arm of the company, the principle construction partner responsible for the delivery of both group developments and third-party client projects. LOK Developments specialises in acquiring land or buildings and then coming-up with highly creative ideas and solutions to produce a valuable asset and unlock the potential. This can include new build properties, challenging refurbishments or identifying and taking over a project that has stalled.

Regents Gate Homes is the residential side of the company, a customer facing brand selling the homes delivered by LOK Developments. Their vision is to provide homeowners the highest-quality living spaces in the most striking of locations. This is all part of Gary’s 15 year plan.

The first part of the jigsaw was Kapex Construction. The name comes from Capital Expenditure which means adding value or improving existing projects. This is exactly what the company did with their first major project…the Grey Street Hotel. By the end of their first year in business, turnover had reached £1.4m and they were responsible for the management of projects worth almost £10m. Gary had also brought together a highly experienced management team.

Up next was LOK Developments. Their first major project was the multi million pound acquisition of Eagle Star House in Gosforth which had stood empty after the DVLA moved out. The plan was to convert the office block into seventy apartments. “Eagle Star House, which we’ve now renamed Regents Plaza Apartments, is a classic example of the way we operate here at the Morton Group. I viewed the building on a Wednesday, agreed a deal on the Friday, immediately started organising planning applications, drawing-up designs and raising £6.5m of finance and, within the space of fourteen weeks, I was handed the keys.

The following day we had a team from Kapex Construction beginning work.” Apartments will be ready in 2020 and are now on sale via Regents Gate Homes. It won’t surprise you to read that Gary is not easing off. “We have momentum within the business. The LOK Developments team is currently working on £60m worth of schemes which represents a combination of 184 houses and apartments. There are developments either underway or at the planning stage in Durham, Gosforth, Gateshead and Hexham. In addition, Kapex Construction has £61m worth of contracts secured to deliver between now and October 2021. As a group we have already brought around £45m of inward investment into the North East and use local suppliers and contractors whenever possible. But we can always do more!”

One thing is certain, Gary and the Morton Group are making life extremely difficult for some of the big boys in the construction industry. This is purely down to the way they do business. They like to form partnerships; their ‘open book’ approach means potential investors don’t get any nasty surprises and, because everyone is working together, Morton Group can move things along quickly. It’s all a matter of everyone having confidence. Put it this way, the fact that the Morton Group has a 75 per cent success rate when they tender for business, proves that Gary’s decision to do things his way…the right way…has paid off.