New property developers on the block: Introducing Zunikh

Journalist Emily Whitehouse speaks to Lily Martin and Sean Gough from Zunikh, a new property development and investment company, about their efforts to break into a sector that has arguably faced its worst year in over a decade.

When it comes to the UK property sector, 2023 has arguably been one of the most challenging years to date. Increasing inflation rates, severe social housing issues and an affordable housing shortage, have caused uncertainty in the market. Not least in light of the recent news that the Bank of England has once again hiked up interest rates, causing them to reach the highest they’ve been since 2008. However, these factors have not stopped Zunikh breaking into the business at full force, unflagging in their efforts to improve the sector.

The foundations of Zunikh were created in 2019 after the company was incorporated by CEO and Founder, Shakeel Adli, Zunikh enjoyed a successful marketing launch in April of this year. Shakeel previously worked at CMS as the global head of Islamic Finance but left the firm at the end of last year to give Zunikh his undivided attention. He was joined by former associate solicitors, Lily Martin and Sean Gough who headline the roles of Chief Operating Officer and Chief Commercial Officer respectively. Between the three of them, the team has in excess of 30 years of legal and real estate finance experience, which shines through the achievements they have made so far.

‘We approach things from the perspective of what’s bankable and what’s not’, said Lily. ‘Our portfolio currently consists of 14 sites with a GDV of around 85 million and in terms of what we’re aiming for externally, our target is 300 million GDV by the end of the year, but we actually think that’s pretty conservative, and we hope to surpass that.’

‘In terms of how we achieve that, we’ve got six founding pillars that we believe will help us reach that target’, Sean added. Ranging from property investment to contracting, the organisation covers a wide range of real-estate offerings, however, one approach Zunikh has adopted makes them stand out from any other company. Labelled its ‘Foundation’, which will be set up later this year, Zunikh has pledged to donate 50% of their gross profits to charity, targeting communities and families that are the most in need of assistance.

Sean said: ‘The foundation is one of the key things that we’re looking to put together this year, because ultimately, real estate is a great way to help people who are in the most need within a community. If someone has a place to stay, a warm environment and a place in which they feel safe, then they’re much more likely to be a productive member of society.’

Challenges

Notwithstanding their positive outlook, Zunikh, like every other real-estate organisation in this day and age, will face inevitable challenges if the sector and economy continue to show no sign of improvement.

Research that was published in March this year found the average UK house price has climbed from £213,000 to £281,000 and data from Statista shows the average price to rent in the UK has risen across all regions in 2023 with costs soaring to over £2,000 in Greater London and £1,150 in the East of England.

Regardless of these figures, Sean noted , ‘The US have released data that shows inflation isn’t as high as they originally thought, which is some progress. Hopefully within the next year or two the UK will follow suit and inflation should come down, which should in turn, see interest rates decrease.’

‘Following COVID-19 and the Russian Invasion of Ukraine, we are probably at the pinch point for it all. At the moment, we’re in a position where there are a lot of sites available as people are uncertain whether or not they should take them forward because they’re fearful of what might happen in the future,’ Sean continued. ‘But our outlook is positive. We’re fairly bullish in that we think within the next two or three years, we’ll see a resurgance of property prices and development – at the end of the day, there’s still a housing shortage, and you’re not going to deal with that by failing to deliver and failing to develop.’

Considering the housing shortage, a report published by the Centre for Cities at the beginning of this year found that compared to the average European country, Britain has a backlog of 4.3 million homes that are missing from the national housing market as they were never built, showcasing the dire need for more determined individuals to deliver properties.

Starting a conversation

With the government taking their foot off the pedal when it comes to prioritising housing in the UK – in December Michael Gove announced authorities would no longer pursue a mandatory target of producing 300,000 new homes a year to help with the shortage – Lily and Sean have outlined Zunikh’s approach to helping communities in critical need of new homes.

‘So far, we’ve spoken to Prestonand Stockport Council with a view to working with them on certain areas most in need of regeneration,’ Lily said. ‘We also have a particular interest in social housing, so we’re really keen to get involved in that aspect of local authorities’ development.’

Additionally, Sean adds that to have an ‘open dialogue’ with councils is key to making sure Zunikh delivers schemes and developments that are going to actually change the built environment for the better. Sean said: ‘We want to deliver a scheme that leaves a bit of a legacy. Something that adds value to the community and the best way to do that is to speak to the local authority because at the end of the day they know their area better than anyone else.’

At the moment Zunikh are currently completing their first ‘’ground-up’ development, which is situated in Croydon. Known as Newgate Mews, it is comprised of six three bed houses and is due to be completed in August this year.

Following on from this, Lily said, concluding the end of the interview, that if the business remains as successful as it is now, hopefully Zunikh ‘will have developments across the UK, built various schemes and continued giving as much to charity as possible.’

Images: Tierra Mallorca and Zunikh