Matt on LinkedIn25 Nov 2024 07:59
“We’re all in the risk-taking business. Success often correlates to the risks we take, and our luck along the way. We all have “sliding doors” moments in our stories, each putting us where we are today.
Over the weekend, the media picked up on the sale of our Manchester Tech campus by my family office for £180m. On the face of it, it looks like a straightforward story, but there’s much more to it.
In 2018, THG was spilling out of our rented offices at Manchester airport. We already occupied all available office space in the area and needed solutions. We’d identified nearby land where we could build an office complex, but it would take years and needed funding.
One of many sliding door moments at THG was deciding to not only press ahead with the office build, but to go further and build Europe’s largest content studio and robotic distribution centres on the same site. In early 2020, we’d started plans for an IPO and I’d agreed to fund the campus build.
At the same time, we announced plans to launch a commercial airline – originally named “THG Air”. We were in late-stage discussions to acquire a profitable commercial airline which would allow THG to turn our ever-growing freight costs into a profit centre. We had a lot on.
Then came Covid. Passenger planes, which carry most of the world's freight, were grounded. Commercial airlines suddenly made huge fortunes, forcing our acquisition off the table, and THG Air with it. Given the lack of air freight space, THG was suddenly forced to spend an extra £55m per year shipping goods to Asia – it was painful.
At the same time, lockdown led to offices being declared a draconian way of life, with WFH set to be the new norm. Businesses raced to announce WFH as here to stay, cancelling office space faster than 1990s comedians 🤣
If the world wasn't uncertain enough, Russia invaded Ukraine, with wider global conflict round the corner. An energy crisis, rabid inflation and high interest rates became the norm.
The world had officially turned on its head. Global office and commercial property values plummeted, and unsurprisingly WeWork and many other property groups quickly went bust.
Despite these unsettling times, we ploughed on. Almost 7 years since the first ideas for the site came to mind, our campus is now a hive of activity. 2,000 jobs have been created, bringing c£150m to c£200m of annual income to the region.
Lockdowns are a distant memory, with most businesses reversing plans and now desperate to get staff together in offices. Logistics buildings are once again seen as the future, especially robotic ones! Phew….
And so, with the global property market stable once again, I agreed to sell the campus, which will continue to be home to THG for many years to come.
An uncertain world brings opportunities. Maybe it's time to create some new sliding doors moments. Watch this space 👀
(pics are with family celebrating on signing the deal)
#Entrepreneurs #Ro
Sign In
Follow the stocks
