CBRE PRS SERVICES A DIFFERENT PERSPECTIVE

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1 CBRE PRS SERVICES A DIFFERENT PERSPECTIVE

2 2 CBRE PRS Services A Different Perspective 3 OUR RESIDENTIAL SERVICES FOCUSED ON RESULTS OUR NATIONAL RESIDENTIAL PRESENCE IN NUMBERS CBRE provides the complete range of residential funding and consultancy services Number of CBRE staff working exclusively on residential projects 170 Aberdeen We operate nationwide through our network of 12 UK offices Total number of CBRE UK staff Edinburgh Glasgow Where we don t have our own presence, we have good relationships with local agents who will subcontract for specific projects We will assist at any stage of a residential or mixed use project 1,900 Total GDV of development sites CBRE currently advising on 25bn Ireland Belfast Leeds Liverpool Manchester Birmingham Bristol London Southampton Jersey OUR START-TO-FINISH SERVICE Site acquisition Funding or JV Partners sourced Planning and site optimisation including affordable PRS consultancy Post-planning optimisation Target market analysis Development appraisals Working with team of consultants Agreeing routes to market

3 4 CBRE PRS Services A Different Perspective 5 INVESTMENT FUNDING AND PRS CONSULTANCY Private Rented Sector Residential Funding CBRE has succeeded in funding 3bn worth of PRS deals in the last year alone. We are at the forefront of structuring the optimum funding solution either for schemes that are to be broken up and sold, or turnkey and forward funding structures in the private rented sector. We pride ourselves on our ability to understand the requirements of developers and investors and thereafter create a deal structure and business plan that works for both. CBRE will provide: National Coverage we are one team with our Regional Land agents and provide local expertise and unrivalled access to opportunities. Global Reach CBRE s knowledge of the global capital market is market leading. Best Possible Deal Structure we have experts that specialise in debt, equity and mezzanine finance. PRS Development Consultancy delivering the best PRS product for the market through an analytical research based approach to design, specification, management and leasing. PRS consultancy Our team offers an holistic PRS service, ensuring our client s schemes drive maximum value. This includes PRS consultancy advice, making sure schemes are optimised for the investment market; increasingly important in an emerging market. CBRE take an analytical, research based approach to PRS advice. This includes: Co-ordinating the design team Developing the design brief In depth knowledge of the end users, and their requirements Apartment design and specification Tenant amenity Management and leasing Values and rents What drives premiums? The team has a unique position in the market; one team providing advisory as well as transactional services. Our global knowledge of the investor s demands, and local market insight through the regional CBRE teams, mean the team is able to add value for developers looking to build PRS. Investment The CBRE residential investment team is located throughout the UK and has vast experience in advising on acquisition, disposal and general consultancy on all types of residential investment assets. We draw on our extensive experience and multi service offering within CBRE to ensure scrupulous and innovative recommendations to our clients. This includes: Desktop appraisal and valuation Full scenario financial modelling Full strategic review and recommendations We advise on all forms of residential assets including: Income and non-income producing freehold, head-leasehold, leasehold blocks and portfolios Reversionary and non-reversionary freehold, head leasehold ground rent blocks and portfolios Off plan forward commitment to purchase opportunities Houses in Multiple Occupation (HMO s) Serviced apartments Change of use opportunities Angel Gardens Manchester Chris Lacey Executive Director chris.lacey@cbre.com Ian Blake Senior Director ian.blake@cbre.com Andrew Screen Senior Director andrew.screen@cbre.com Client: Moda Living Type: Build for rent residential Deal Structure: Forward Funding of Development - Private Rental Sector (PRS) GDV: 128m / 5% NIY Property Detail: 458 residential units, 149 car parking spaces, retail / amenity space including gym, cinema room, onsite management suite Platform: Joint venture with Apache to fund, secure and develop a 1bn pipeline of PRS

4 6 CBRE PRS Services A Different Perspective 7 NATIONAL LAND AGENCY Whether you re selling land for profit or buying land for development, deliverability is crucial. The CBRE National Land Agency team can be on your side. Getting a deal sealed on the best possible terms takes creativity, expertise and a finger on the pulse of the market. CBRE s land agency team is immersed in the market, day-in, day-out. We don t just know where the land is and what it s worth; we know the people who will decide its future. Extensive links with corporates and agents nationwide help us find sites that offer the right opportunities for development, with the greatest potential to add value. We also represent major land and portfolio owners, packaging and marketing development sites to achieve the maximum possible value. Development land sales and acquisition services Identification of opportunities, both on and off market Advice on both individual sites and large scale portfolio acquisitions Development consultancy and financial appraisals Bespoke and targeted marketing campaigns Securing development partners and structuring agreements This year, the National Land Agency team will market over 100 residential development sites across the UK The team is currently advising on land capable of accommodating over 30,000 residential plots Wellesley, Aldershot Hampshire Jasper Masters Executive Director jasper.masters@cbre.com Chris Georganas Associate Director chris.georganas@cbre.com We were successful in advising Grainger in becoming the preferred development partner to the Ministry of Defence Aldershot Urban Extension, part of the Aldershot Garrison, is one of the largest brownfield development sites in the south-east Now known as Wellesley, we have been giving development consultancy and place-making advice in support of a comprehensive masterplan and subsequent planning application In June 2013, Grainger successfully achieved planning permission for 3,850 residential plots, schools, a neighbourhood centre, commercial and community uses We have successfully sold Phase 1 of Wellesley, comprising of 228 residential units and are currently marketing Phase 2 comprising of 270 units Steven Verity Senior Director steven.verity@cbre.com Adrian Willet Senior Director adrian.willet@cbre.com

5 8 CBRE PRS Services A Different Perspective 9 PLANNING PRS is one of the fastest growing sectors in the residential market. CBRE Planning is playing a major part in that growth. Housing supply across the UK is struggling to keep up with demand and there is currently a significant deficit in housing stock to accommodate the current and future population. PRS is recognised across the whole of the UK as a means of delivering some of this essential new housing in the sector. Our team has a proven track record of securing planning permission and advising developers and investors on the delivery of some of the largest PRS schemes in the UK. Our experience We can utilise our PRS track record to achieve commercially deliverable PRS consents, working alongside our wider development team to ensure the best strategy and outcome for our clients. The geographic spread of the schemes that we have worked on and relationships we have built with various authorities has given us valuable insight into the wide range of planning issues, challenges and opportunities. How we can help? We can: Identify strategic opportunities for PRS and prepare appraisals for the prospects of securing planning permission. Review and analyse existing residential consents, advising on possible amendments to permissions for PRS development. Manage pre-application consultation, delivering key messages around the benefits of PRS to planning authorities, key stakeholders and communities. Lead and manage development teams through to submission of planning applications. Assist with the negotiation of planning obligations. Why CBRE? We can: Advise on PRS opportunities across the UK, with our Planning teams based across the country and with recent relevant experience in both Scotland and England and their respective planning systems. Utilise our knowledge and experience in negotiation to deliver successful, commercially attractive schemes, focusing on design and layout requirements in addition to S106 and affordable housing provisions. Anticipate and advise on particular PRS nuances as a result of our broad range of discussions with local councils, consultees and stakeholders throughout the planning process. Draw on the experience and expertise of our colleagues specialising in the funding of PRS schemes, the assessment of the viability of those schemes and their practical delivery. Plot G Arena Central, Birmingham Detailed permission granted for 322 PRS development with 673 sq m commercial floor space within the key development area of Arena Central in the heart of Birmingham. City Wharf, Glasgow Permission secured for 942 PRS units and circa 2,000 sq m commercial floor space across two separate riverside sites in Glasgow. Sweet Street, Leeds Permission secured for 774 PRS units, 713 sq m of flexible commercial floor space with associated car parking, landscaping and amenity space at a stalled development site operated as a temporary surface level car park. Iain Jenkinson Senior Director iain.jenkinson@cbre.com Teri Porter Planning Director teri.porter@cbre.com Jonathan Stoddart Planning Director jonathon.stoddart@cbre.com Chapel Wharf, Salford Permission secured for 995 PRS unit residential-led mixed-use development with commercial ground floor uses and parking, public realm and landscaping within a core city centre site in the Manchester City Region, fronting onto the River Irwell next to the Lowry Hotel. Berkshire House, Maidenhead Permission secured for the refurbishment, extension and change of use of a landmark office building in Maidenhead to provide 68 PRS units.

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7 12 CBRE PRS Services A Different Perspective 13 VALUATION AND ADVISORY CBRE s Residential Valuation team is market leading in providing valuation and advisory services in the Build to Rent Sector. Our deep market insight, coupled with our consistent and transparent approach to the sector, provides best in class advice to clients. We provide valuation and advisory services across the full plethora of investment opportunities including Build to Rent sites, forward commitments, forward funding and standing investments. Our Build to Rent (PRS) track record is unrivalled and includes clients such as: Legal and General M&G LaSalle Grainger/APG Essential Living Delancey Fizzy Living Delancey Hermes Our innovative culture includes the establishment of the UK s first Build to Rent yield index which is widely recognised as the benchmark of pricing in the sector. Over the last 12 months we have provided valuation and advisory services to the effect of: Over 23,000 units Completed value of 9 billion Over 50 instructions Our residential valuation team services also include: Mixed use developments Large scale residential-led developments Prime Central London Strategic land Ground rent portfolios Residential investment portfolios East Village London Client: Delancey/GetLiving London Retained to provide annual valuations of the private residential element of the scheme comprising 1,439 units Provided strategic advice on the rental pricing of the scheme Purchase price reported to be 557m Jason Hardman Executive Director jason.hardman@cbre.com Kate Brennan Director kate.brennan@cbre.com James Castle Director james.castle@cbre.com

8 14 CBRE PRS Services A Different Perspective 15 BUILDING CONSULTANCY We create vibrant developments for our PRS clients that enhance rental returns and reduce voids. From experience this is one that has apartment layouts, amenities and back of house facilities which best suit the requirements of the likely tenants. We also aim to ensure that efficient construction delivery is considered in the design to minimise construction costs and reduce risk to ensure the project as appealing as possible to contractors. The Masterplanning and Mixed-Use Development team acts as project and development managers with a unique focus on the management of projects through the ever more complex planning process. Since 2008, the team have advised on over 6,000,000 sq ft of development, generating a value of over 2 billion. Our aim Our aim is to ensure that every project we manage is delivered in accordance with our client s specific requirements but ultimately in such a way to allow a variety of value add exit or delivery positions. The majority of our work therefore involves the management of projects through the planning process or where the risk profile is appropriate through to construction completion. Our strengths Meticulous understanding of the development process Highly informed market knowledge and detailed comprehension of future trends Clear and impartial advice on risk and opportunity Single point of accountability creating continuity throughout the project Trust and a passion for maintaining long term relationships Ability to develop flexible delivery strategies which can respond intelligently to changing project circumstances Positive in the face of change Our services We manage projects from inception to completion or at specific stages: Initial site feasibility studies Appointment of design and consultant team Management of planning applications Coordination of stakeholder, third party landowner and public consultations Technical advice in respect of third party agreements e.g. joint venture partnerships, funding agreements Project monitoring (for joint venture or funded projects) Corporate governance structures and reporting Independent certifier (for pre purchased/funded schemes) Site due diligence Preparation of the project brief (including programme and budget) Management of design, procurement and construction Management of all development approvals, e.g. building control, rights to light, neighbourly agreements OJEU bid management Risk management Project audit and recovery Since establishment in 2008, we have delivered or gained consent for: 6,000,000 sq ft of development 10,000 residential units 500 acres of masterplan based opportunities 30 major planning applications West Hendon Hybrid Planning Application for Barratt Homes including 2,000 units, community uses, commercial uses, open space and detail for 358 units Two form entry primary school inclusion in to the masterplan Site of scientific interest adjacent to site and major highway improvements to the A5 added particular sensitivities to overcome Ferry Lane Industrial Estate Appointed by Legal & General to project manage the redevelopment of Ferry Lane Industrial Estate providing circa 400 PRS units as well as commercial and amenity space We led completion of a feasibility study to assess the need for a new application and resolve viability shortfall, followed by preparation and submission of the hybrid application which has received resolution to grant consent We are providing project management services on the site to oversee obtaining a planning consent, the demolition of the existing industrial units and the construction of the new development Engagement beyond a projects end-point Capitol Way Stephen Fox Senior Director stephen.fox@cbre.com Philip Earnshaw Director philip.earnshaw@cbre.com Amir Gadwah Director amir.gadwah@cbre.com 460 unit mixed-use scheme above A1 retail Appointed by Royal London to discharge pre-commencement planning conditions, procure team and deliver to completion Full scheme instructed for completion due in 2016, we are acting as employers agent, project managers and principal designers

9 16 CBRE PRS Services A Different Perspective 17 AFFORDABLE AND VIABILITY From the very first planning stages, right through to exit routes, we can advise you on every aspect. Our aim is to make sure your scheme is viable and deliverable. We regularly act on behalf of developers, housebuilders, registered providers, local authorities, housing associations, funders, investors, and landowners. We understand that the business drivers for housing associations are very different to commercial developers, so we adapt our approach according to your business needs. Whether you require viability advice in support of a planning application, negotiation of S106 obligations, or ongoing value engineering on schemes, our team of experts can help. Pricing of affordable housing on residential schemes value add, understanding of mix and tenure and its effect on enhancing or diminishing value Affordable housing advice for planning policy affordable housing statements and other associated reports Viability appraisals and reports for planning Finding donor sites for affordable housing through our long and well established trusted relationships with Housing Association partners to deliver an all-inclusive solution Negotiation of S106 affordable housing through our expert knowledge and commercial acumen we understand how to achieve a mutually beneficial outcome with Local Authorities Sale of on-site affordable housing finding the best possible Housing Association Partner to extract the best contractual terms and value (i.e. funding of development via stage payments) Advise our clients on the ever changing AH policies on a national, regional and local level and their impact on specific site development proposals Isabella Rosssi Associate Director Head of Affordable Housing isabella.rossi@cbre.com Reyane Smart Senior Surveyor t: e: reyane.smart@cbre.com

10 18 CBRE PRS Services A Different Perspective 19 RESEARCH DRIVING DECISIONS THROUGH DATA Effective strategy is based on exemplary market intelligence. The CBRE research team produces bespoke market analysis for specific projects and a wealth of ongoing, more generalised forecasts and reports. In London, as across all our 300 offices, our strategic advice is built on solid research that informs and corroborates our local, on-the-ground insight. Research gives our clients the competitive edge and the confidence to make decisions that reduce costs, create value and improve performance. Research skills Market analysis and forecasting Occupier targeting Sector reviews Economic analysis Research is playing a particularly crucial in the evolving professional private rented sector. Still in its embryonic stage in the UK, there is little in the way of track record, and the industry generally acknowledges that there is a lack of transparency and data. This is where research capabilities become essential in order to inform sensible strategic decision making. At CBRE, we are constantly finding innovative ways to close the knowledge gap, drawing on a range of economic, demographic and marketfacing intelligence. This feeds into our analysis and enables us to inform clients accurately and confidently. Jennet Siebrits Head of Residential Research t: t: e: jennet.siebrits@cbre.com Frida Skytt Analyst t: e: frida.skytt@cbre.com

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