ANOTHER BITE AT THE CHERRY - Property Week
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After the demise of Chesterton, long-time Docklands agent Rupert Cherryman decided to go it alone.

By Jonathan Brasse. Filed : 17.6.2005

A train thunders past the open window and it is difficult to concentrate. This is a common occurrence at this 800 sq ft (75 sq m) office at South Quay in London’s Docklands.

‘We are usually too busy to hear it,’ says Bob Ashton, former residential development chief at Chesterton and one of three permanent staff at newly formed Docklands agency Cherryman.

Ashton joined forces with Rupert Cherryman, who set up the business on the advice of clients, just a week after Chesterton went into administration in March. Cherryman recalls the speed with which his professional life turned from Chesterton to Cherryman and the leap of faith that he and Ashton were forced to make.

‘We couldn’t even get our files, unlike some offices,’ he says. When receiver Grant Thornton arrived Cherryman was given just 15 minutes to leave the office.

‘Our clients had to disinstruct before we could reinstruct them,’ says Cherryman. ‘Now we have all our databases up to speed. Almost every one of those clients still instructs us and we have won some more business besides.’

Cherryman’s gamble seems to have paid off. He has retained clients such as Irish developer Ballymore, Hammerson, Ogden, Arlington and IBM and actually extended his client base. Last month, Capital & Provident enlisted the firm’s services on its 119,200 sq ft (11,075 sq m) Discovery Dock Building 2, which will come on the market in 2007.

The firm sits comfortably in fourth place in the Focus Docklands agent availability and lettings league – and 19th in the national league – advising on a market share of about 10%. It advises on 502,275 sq ft (46,660 sq m) of commercial space from 40 instructions, the average unit size of which is about 12,000 sq ft (1,115 sq m). At the time of going to press, Cherryman had 5% of its property under offer.

Docklands veteran
The fact that the firm already has a large number of clients bodes well and Rupert Cherryman’s history in the area – he worked for Chesterton’s Docklands arm from 1989 – has enabled the firm to complete numerous ‘starter unit’ deals. Cherryman, Ashton and graduate recruit Colin Leslie have yet to attract a big requirement, and this is where the question of Cherryman’s sustainability lies.

Cherryman says: ‘It’s daunting not knowing how strong the name of the individual could be over the name of Chesterton.’ The 36-year-old is confident, however, after retaining his former employer’s clients when they could easily have gone elsewhere. It was their reassurance that prompted him not to do the same.

‘Our clients wanted us to go it alone,’ he says. ‘I had thought about joining an established team but the problem was always going to be my contract. Being made redundant without pay effectively terminated the contract and meant I could talk to clients immediately.
When under contract, they belong to the firm.’

Just a week after Chesterton’s demise Cherryman used his equity to set up his own limited company. Although he accepts it will be difficult, Cherryman believes his Docklands background will stand him in good stead.

‘I’m quite excited but the work on the ground will be like anything else. If we were in a new location it could have been daunting but we have the support of companies such as Hammerson and Ballymore. Rewards are more appreciated when you are a small business.’
Cherryman may like being on familiar territory but is nevertheless willing to expand his horizons beyond London’s E14. ‘We are happy to stretch our boundaries,’ he says.

Such a remark can be interpreted as both a plea for higher-yielding work and a statement of intent. Either way, Cherryman’s boundaries have already stretched as far as Romania.
‘If a client rings and asks for a site in Bucharest, which he did, we will see if we can do it,’ he says.

The site in question is a 3 acre (1.2 ha) mixed-use area in Central City, Bucharest, primed for redevelopment, and its owner is poised to submit a planning application for a 1,100 sq ft (100 sq m) building.

Mentioning no names, Cherryman says: The individual was looking to dispose a couple of months ago. He’s a contact we’ve known for years who knows how we work.’

"Rewards are more appreciated when you are a small business" Rupert Cherryman, Cherryman

Despite such far-reaching activity, Cherryman insists the firm is realistic in its ambitions.
Its remit stretches from the acquisition and disposal of commercial stock to leasing, investment and development agency work, and involves some residential service.

‘We’re not going to pretend we will sell new flats,’ he says. ‘We will do what we can do.’
His sentiments are modest but the support Cherryman has from his clients appears to be mirrored by the admiration of his contemporaries and competitors alike.

Robert Scull, director at Colliers CRE says: ‘If there’s room for a specialist, it’s a fantastic opportunity. He’s a good operator and has been in the market a long time.’

Rod Parker, director at Atisreal says: ‘He’s a gifted mover and shaker. In terms of the Docklands, he’s been around as long as I have, and has loyal clients.’

Bad memories
Parker sympathises with Cherryman about his treatment at the hands of Chesterton.
‘He got the short straw from the ordeal,’ he says, ‘but is stronger under his own banner.’
Cherryman’s last memories of Chesterton are less forgiving.

‘We had clues but no idea it would happen that quickly,’ he says. ‘We were having a screaming year so the receivership came as a real disappointment.’ A year of relative success could not cover up his underlying feelings of unease. ‘We didn’t feel we were getting enough out of Chesterton,’ he says.

Cherryman is still not getting what he believes he is owed from Chesterton. ‘I don’t know what is going to happen to my pension.

I was in serious bonus territory. I’ve had figures floated at me in their hundreds of thousands.’

Despite some bitterness, he emphasises that time moves on. ‘Anyone who was any good will prove themselves again,’ he says.

South Quay is regarded by commercial surveyors as part of a secondary market in the Docklands. Cherryman will have to start there to begin with, something its founder is prepared to do en route to the firm’s first big coup. ‘I’m expecting superb news in two months,’ he says.

Rupert Cherryman has taken a bold step.

His initial faith is paying off: clients have stayed and new business has come. The firm, however, is yet to complete a big deal. Although enough business has blocked the noise of passing trains thus far, a spate of inactivity will ensure Cherryman and his team hear each rail-bound passer-by and remember this is not Canary Wharf, it is South Quay.

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