Build to Rent Services Developing homes for the rental sector Real Estate and Infrastructure
BEYOND We create tomorrow s prosperous and connected places. We start by understanding our client s business and how we can deliver beyond traditional real estate and infrastructure services. We deliver the homes we live in transforming our places and organisations by utilising real estate as a catalyst. We share upside and risk by identifying surplus and accelerating disposals to generate income. We deliver the infrastructure that connects us and see beyond the physical presence of buildings and infrastructure to release and create value in what we do in partnership with our clients. Beyond is about being a leading property and infrastructure business that promises and delivers the very best experience to everyone who comes into contact with us. 2
Introduction Build to rent is one of the fastest growing sectors in the UK. With increasing demand for high quality rented accommodation, the build to rent model has emerged as a popular solution for housing delivery. Deborah McLaughlin We create tomorrow s We continue to see growing appetite for investment from national and international funds. Our special relationship with Capita Asset Services (who administer funds on behalf of over 150 asset managers) means that we are able to connect you to the abundant availability of institutional capital for investment in residential property. We have a highly experienced skilled team with specialist knowledge who can provide an end to end Build to Rent service for you or your clients. This guide has been created with you in mind to demonstrate our specialist knowledge and experience and how the wide range of services we offer can help unlock sites to enable the delivery of the new homes we know the UK needs. I hope that you find what we offer useful and would be only too happy to help you with opportunities in this growing market. Deborah McLaughlin Chair, Capita's Housing Delivery Board 3
The future of build to rent Boost supply Build to Rent can boost housing supply in a number of ways: the availability of institutional investment creates a source of capital to support housing development. On larger sites, Build to Rent schemes can be developed faster than homes built for sale because of existing demand for rented accommodation. Modern methods of construction are often employed such as offsite construction. Economic growth By speeding up development on sites that might not otherwise come forward, Build to Rent schemes can contribute to town centre regeneration and accelerate local authority revenues in the form of council tax, new homes bonus and business rates and creating economic value for surplus public land. Also a number of cities see Build to Rent as a way to attract and retain the all-important skilled labour force that their local economy needs Quality and choice Build to Rent schemes are built and professionally managed on a scale that typically allows a higher level of services (e.g. on-site concierge) and amenities (e.g. communal space) to be offered to their customers. In addition many build to rent schemes are introduced by a single ownership or management which results in more attractive public realm spaces surrounding the development. For apartments, investors tend to maintain not only the apartment itself, but also the building and the wider public realm; which is more likely to encourage continuity of tenancy and a retained income stream. This income-driven model also means that Build to Rent landlords offer longer terms. 4
Our national network National network of offices across the UK Bath, Belfast, Birmingham, Blackburn, Breckland, Bristol, Cambridge, Cardiff, Carlisle, Cheltenham, Colwyn Bay, East Grinstead, Edinburgh, Glasgow, Leeds, Livingston, London, Manchester, North Tyneside, Nottingham, Oxford, Plymouth, Preston Brook, Redditch, Salford, Sheffield, Southampton, Sunderland, Sussex, Teforest, Warrington, Watford 5
Market Challenges Creating the right product Modern Methods of Construction With the right location and planning in place, ensuring the right product is created for your target market is crucial to its success. Understanding what potential residents want and creating a cost-efficient specification with the features and amenities the end-user wants. This is where we can help. Our multi-disciplinary teams include urban design and state-of-the-art architectural services led by ESA Architecture and Design which is part of Capita Real Estate and Infrastructure. Capita are experts in modular building design. We have applied our knowledge to the development of student residences for a range of clients in cities across the UK. We ve helped clients such as Victoria Hall and CRM Students to develop modular, high-rise student residences in cities such as London and Newcastle. We use specialist software in order to engage pre-fabrication installers which reduces the on-site construction period. Capita has a track record in delivering design for steelwork to mechanical, electrical and public health design in the production of pre-manufactured pods. 6
Integrated Financial Services Integrated financial services for Build to Rent Link Asset Services is one of Europe s leading providers of corporate and fund services and Europe s largest independent loan servicer connected to almost every major lending institution. This means we can source, structure and secure financing for Build to Rent investors. In our experience, Build to Rent sites are acquired through a variety of corporate structures such as a special purpose vehicle company, JPUT, GP/LP etc. It is also not unusual to see a combination of structures to suit multiple investor requirements. Our financial services at a glance Our corporate and fund solutions are tailor-made to suit your structuring needs and include the following: Whatever your structure we are here to help. With offices in key strategic locations including UK, Jersey and Luxembourg amongst others, we are well placed to support Build to Rent investors and deliver an integrated solution. Incorporations & company /fund administration Registered office/domicilation services Company secretarial, meeting support and statutory record keeping Registrar services Real Estate Finance Management and financial reporting London Stock Exchange, TISE listing & compliance support AIFM services Custody and depository Transfer agency For more contact Richard Geary Head of Business Development T+44 (0) 1543 847443 E: Richard.geary@capita.je 7
Why choose us? Understanding build to rent residential markets We combine our technical services with specialist skills linked to our understanding of residential markets, local authorities and housing associations. That means we can provide technical services rooted in deep knowledge of the markets we operate in. Our case studies show the breadth of residential experience we have from working with property developers to social landlords, central and local government and more. We bring all of this expertise to our relationship with clients. From planning to delivery We provide a total solution for our build to rent clients, offering a wide range of services from design to masterplanning and securing viable planning permission, to project and cost management to lifecycle real estate and asset management; our teams of specialists work together in multi-disciplined teams or as a single service according to the requirements of our client. A key consideration will be viability services. There is potential flexibility in terms of design for a build to rent scheme. Our experienced advisors can guide you through this process. We are doing it As simple as it may sound, Capita has been spearheading the sector as one of the first construction consultancies to set their sights on Build to Rent. We have been supporting a range of developers to deliver purpose-built, private rented units for a range of clients over the past few years. This is helping us to develop a solid track record that will ensure confidence for our current and future clients. 8
A tried and tested approach Capita s capability spans the full range of the build to rent lifecycle. We seek to help our clients to add value to projects at every stage of the process. Our master planning, monitoring services link to the Real Estate arm of our Real Estate and Infrastructure business. This means the right product and solution for the site is factored in throughout the process of securing and acquiring. With the support of Capita Asset Services to help clients implement the corporate structure for the site aquisition we are able to help you, our client, with an integreated end to end solution. Land search Site acquisition Planning Funding Capita Real Estate and Infrastructure undertake bespoke site find finding instructions for Build to Rent developers. Using our Major Opportunity Site Tool (MOST), together with our on the ground knowledge, we identify new site opportunities for clients. MOST allows us to use a clients locational requirements (for example proximity to existing/planned transport infrastructure, planned investment or town centres) and marry this with opportunities in terms of current site use optimisation and planning. In addition, we bring our knowledge of the varying approaches for Build to Rent seen in Local Authorities, high level contacts in Local Planning Authorities and Estate Departments, together with our commercial expertise to refine searches. Having established deliverable site opportunities our Development Consultancy team will assist in site acquisition and delivery. Capita Asset Services is Europe s largest independent loan servicer and connected to almost every major lending institution which means we can source, structure and secure financing for Build to Rent investors.and service their corporate vehicle. 9
Our projects We are working on a number of build to rent projects across the UK for a range of new clients and through our long-term partnerships. Greenford Green Location: Greenford Green, West London Client: Greystar Europe Holdings Ltd. This is a most prestigious project and unique to the UK market and is being delivered by Greystar Europe Holdings drawing on their experience as the largest Build to Rent operator in the United States to deliver a vibrant, rental-led neighbourhood, which will pioneer UK Build to Rent living in Greenford, West London. We are delivering the Principal Designer role, and CDM Advisor to the Client under the Construction (Design and Management) Regulations 2015 (CDM 2015), for this 500m redevelopment. The project comprises of a mixture of medium and high rise residential buildings with retail and residence parking within the curtilage of the buildings. On completion the project will consist of 1,965 purpose-designed, purpose-built apartments, new local amenities and a new public space. 10
Milharbour Client: Greystar Europe Holdings Ltd Location: Docklands, London As a build to rent investment, Greystar are acquiring part of the Galliard Developments Millharbour development in Docklands. The scheme forms part of Galliard s wider Millharbour Village. The Urban Village will be built on a sixacre site south of Canary Wharf featuring an array of retail, build to rent and residential buildings. Capita provided Greystar with Technical Due Dilligence prior to their investment into Galliard s scheme. Following this, Capita was appointed for the ongoing independent monitoring of the parts of the scheme acquired by Greystar. This includes 351 units within three of the five blocks on the site, with a Gross Internal Area of 40,000 sqm. Galliard Construction are about to commence construction works, with completion of the whole project forecasted to be by until 2020. 11
Bromley by Bow Client: Danescroft Land Limited (backed by Palmer Land Opportunity Trust) Location: Bromley by Bow, London GL Hearn (part of Capita Real Estate) led on the preparation of a full planning application to the London Legacy Development Corporation (LLDC) for a major residential-led mixed use scheme of circa 500 dwellings brought forward as a build to rent scheme. The proposals include a number of tall buildings up to 27 storeys in height and will also include 38,428 sq.ft of community, retail and workspace at ground and mezzanine level that will contribute to the new District Centre that is to be formed as part of the wider Bromley by Bow South masterplan. GL Hearn led the planning application process on behalf of the client, including planning, strategic communications and affordable housing and viability advice. 12
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Our team Deborah McLaughlin Head of Housing Delivery and Strategy Deborah is a highly regarded and leading professional in the arena of housing. She has a proven track record of accelerating growth and leads Capita s national approach to Housing Strategy and Delivery. She also heads up Capita Real Estate s GL Hearn Manchester office. Before joining GL Hearn Deborah was Executive Director at the Homes and Communities Agency (HCA), where she was responsible for supporting local authorities and partners meet their economic growth and regeneration priorities across the North West. Paul Clark Director, Development Agency A dual qualified chartered Town Planner and Surveyor (Planning and Development) Paul leads the Development Consultancy and Land Agency team. In 2012 Paul was voted by readers of Property Week magazine as one of the Hot 100 rising stars of the property profession and in 2015 as one of the top 40 under 40. In 2016 Paul became a retained advisor to the housing estate regeneration team at the Department for Communities and Local Government. Stewart Murray Head of Development Group Stewart has been at the forefront of planning, regeneration and development in London for over 30 years and brings a wealth of experience and expertise to the housing and PRS sector. From his recent strategic housing experience at the GLA driving the PRS sector and policy development in the London Plan and Mayor s Housing Strategy, to his previous borough directorships at Barnet and Redbridge enables him to bring insights to Build to Rent and the private rented sector. deborah.mclaughlin@glhearn.com 0 7771 861911 paul.clark@glhearn.com 0 7557 748550 stewart.murray@glhearn.com 0 7799 861377 14
Andrew Rennie Development Director Andrew has over 15 years experience on the client side giving him a deep appreciation of how to help landowners realise the maximum potential of their properties. He specialises in land and property acquisition, and development management for residential and mixed use projects which have included Build to Rent in urban and suburban environments. Andrew had the fortune of being included on the early Urban Land Institute visits to the US to learn about the success and challenges of Multi Family Housing. James Cook Planning Director, Head of Residential Planning James has over 15 years experience of planning in London and leads a team focussed on residential development in the Capital, including specialising in build to rent schemes. He manages projects for a range of residential schemes from small high value Central London developments to large scale regeneration schemes. He acts for investors, developers and housebuilders across London. andrew.rennie@glhearn.com 0 7785 527600 james.cook@glhearn.com 0 7977 589937 15
Contact us James Cook Planning Director, Head of Residential Planning Capita Real Estate and Infrastructure 65 Gresham Street London EC2V 7NQ james.cook@glhearn.com 07977 589 937 16