A significant weight of capital will be chasing limited stock in 2021, according to new research from leading independent property advisory firm, Lismore Real Estate. Three quarters of investors surveyed by Lismore plan on being acquisitive during 2021, with the majority of those being funds and property companies. Stock is
Heat delivered by heat networks will require a ten-fold increase in volume if the sector is to fulfil its potential in contributing to the UK’s net zero commitment by 2050. Development of this scale cannot be afforded purely from public funding and up to £22bn of private capital will be
Aberdeen Standard Investments and development partner Graftongate are toasting the success of a multi-let urban logistics development in north London, where a new craft brewery is fully operational. Independent British brewer, Beavertown Brewery, has launched its state-of-the-art Beaverworld facility at Enfield Distribution Park (ENDP), having signed a 25-year lease on
IP Investment Management (“IPIM”), a Hong Kong-based boutique real estate investment manager and Maven Capital Partners (“Maven”), a leading UK property and private equity manager, have partnered to build Manchester’s first Hampton by Hilton hotel. The venture is Maven’s first hotel collaboration with IPIM, having already worked together on eight
National proptech firm, MakeUrMove, has secured a £1.3 million funding package from shareholders to achieve its ambitious growth targets. Since the launch of the UK’s first subscription service in 2019, MakeUrMove has transformed its innovative platform to focus on addressing landlord’s specific needs and putting them back in control of
Funds advised by Hilltop Credit Partners, a specialist funding partner for SME residential developers, have completed a £2 million loan to Pars Developments to fund a private residential development in the Wiltshire village of Latton. The development sits on the edge of a National Nature Reserve and is a short drive
Network Space Investments Limited has completed the off-market purchase of a modern single let industrial building on Hellaby Business Park, Rotherham, for £2.45million. The building, Unit 6, is situated in the heart of the Hellaby industrial estate, immediately adjacent to J1 of the M18 and within easy access of the
Fund seeded with 1.9 million sqm of prime European logistics real estate assets GLP’s second pan-European income logistics fund closed within 30 days of GLP JIF, Japan’s largest private open-ended logistics real estate income fund GLP announced today the first close of its newly established pan-European logistics fund, GLP Europe
Sales activity in the £1m+ property market is storming ahead according to the latest Rightmove data, as wealthier buyers race for more space and leafier locations in the wake of the Covid-19 pandemic and changing lifestyle preferences. This, according to Hilltop Credit Partners, makes it a perfect time to support
If it is the first time that you are buying a home, the process may seem increasingly tough. There are many things to keep in mind so that you can get the best. There are house and land packages that provide benefits for those buying a house for the first
A significant weight of capital will be chasing limited stock in 2021, according to new research from leading independent property advisory firm, Lismore Real Estate. Three quarters of investors surveyed by Lismore plan on being acquisitive during 2021, with the majority of those being funds and property companies. Stock is likely to be limited, as only 6% anticipate being net sellers and 20% remaining neutral. The research confirmed an appetite for more secure assets and, not surprisingly, the top three favoured sectors were distribution, followed by multi-let industrial, with food stores and residential in joint third place. More interesting is the tier below with both retail warehousing and offices receiving good interest. Private equity was the strongest supporter of retail warehousing. In the office sector, support came from private equity and investment managers. Funds surveyed do not view offices as a prime target next year. Hotels and high street retail, which have felt the full force of the pandemic downturn. were the two lowest ranked sectors. Opinion is split on bank appetite for lending to real estate in 2021, with funds and property companies being more bearish with 25% indicating a decrease against 15% indicating an increase. The overwhelming majority of private equity respondents were supportive of an increase. Lismore had a significant number of comments confirming that the increase in lending was from a fairly conservative base, and would be focused on the safer sectors of distribution, industrial, food stores and residential. Colin Finlayson, Director of Lismore, said: “Against the backdrop of the global pandemic, our research clearly illustrates that there still remains an appetite to invest in resilient sectors in 2021. The weight of capital towards real estate remains strong and much of it has been patient this year, waiting for some certainty to return. Outside of the most resilient sectors, transaction underwriting has been challenging this year which has curtailed activity. But with a successful vaccine roll-out, we expect more confidence and transparency in the market in 2020, leading to an increase in activity.” The research was undertaken by Lismore during November 2020, with more than 80 insightful and qualitative interviews with a wide range of investors, including funds, property companies, investment managers and overseas/private equity. It forms part of the Lismore Quarterly Review, which also features two in-depth interviews, one with a leading high street lender (RBS) and the other with Aberdeen Standard Investments. The full Lismore Quarterly Review is here
Heat delivered by heat networks will require a ten-fold increase in volume if the sector is to fulfil its potential in contributing to the UK’s net zero commitment by 2050. Development of this scale cannot be afforded purely from public funding and up to £22bn of private capital will be needed to if this target is to be achieved. The Department for Business, Energy and Industrial Strategy (BEIS) with Triple Point Heat Networks Investment Management – their delivery partner for the £320m Heat Network Investment Project (HNIP) – has announced a new Dynamic Purchasing System (DPS) for heat networks today. The BEIS Heat Investment Vehicle (BHIVE) will allow Public Bodies, including NHS Bodies and Local Authorities, to access funds and funding-related services for heat network projects from a portfolio of potential funders. BHIVE is open to all Public Bodies looking to finance a heat network including, financing the expansion of a new or existing network or facilitating the sale of part, or all, of an investment in a mature heat network. The role of private capital in unlocking the potential of heat networks To meet the UK’s legally binding commitment to net zero by 2050 in the most cost-effective manner, heat networks will need to provide 17-24% of the UK’s heat (currently just 2%)[1]. Achieving this objective requires the development of a self-sustaining market with a sufficient volume of strategic, low carbon heat networks which are economically attractive without direct Government subsidy. Development at this scale cannot be afforded by public funds alone. The Institute for Public Policy Research has estimated that up to £22 billion of private investment capital needs to be levered in if the sector is to fulfil its potential[2]. At the same time, institutional investors are seeking high class infrastructure assets with good quality counterparties and predictable long-term revenues underpinned by strong environmental, social and governance (ESG) principles. Prior to BHIVE’s launch, investors and investees had come together too infrequently and only on an ad-hoc basis. Funding Providers can apply to join BHIVE at any time by expressing their interest in funding heat networks; demonstrating their access to funds and their capability to deliver the associated services to execute funding. Finance options available will include equity finance and asset finance. HNIP was launched in 2019 to kick-start the market and has to date awarded £125 million to successful schemes across England and Wales. BHIVE will further support the work that has already been achieved by HNIP in ensuring a sustainable market which is not only economically attractive to investors but supports job creation and environmental benefits. Richard Turner, Amberside Advisors, part of Triple Point Heat Networks Investment Management said: “BHIVE has the potential to deliver significant benefits to the heat networks market, which is essential to meeting the net zero emissions target while sustaining green jobs and delivering economic benefits. It will make for a more efficient and effective fundraising process from the perspective of Funding Providers looking for funding good quality opportunities in a high-growth sector, and Public Bodies looking for value for money.” https://www.gov.uk/government/publications/clean-growth-strategy https://www.ippr.org/files/publications/pdf/piping- hot_summary_Mar2017.pdf
Aberdeen Standard Investments and development partner Graftongate are toasting the success of a multi-let urban logistics development in north London, where a new craft brewery is fully operational. Independent British brewer, Beavertown Brewery, has launched its state-of-the-art Beaverworld facility at Enfield Distribution Park (ENDP), having signed a 25-year lease on a 126,595 sq ft warehouse/production unit last year. The brewery was delivered on a pre-let basis with a tight delivery programme enabling brewing to commence within 12 months of the start of construction. Now up and running, Beaverworld comprises a bespoke five vessel Krones Steinecker Brewhouse, packaging space, warehouse, logistics hub and offices. It is expected to produce 90 million pints of beer every year and will eventually incorporate a 20,000 sq ft visitor centre with bars, tours and a restaurant, creating up to 150 new jobs. The brewery, founded by Logan Plant, the son of Led Zeppelin frontman Robert Plant, has been funded using a £40 million minority investment in the business by Heineken in 2018. It is the latest success at ENDP for ASI and Graftongate, where five of the six new warehouse/production units are already occupied. The joint venture partners recently announced the letting of a speculative 85,000 sq ft building to two-person home delivery specialist, ArrowXL, who join a strong list of occupiers including Cook’s Delights, Farmdrop and DFS. A planning application has been submitted for the final remaining plot at ENDP on a 2.5-acre site fronting A1055 Mollison Avenue, that can accommodate a unit of up to 50,000 sq ft on a design and build basis. Colin Beasley, Director at Graftongate, said: “We’re thrilled that Beaverworld is now fully operational. It has been a real pleasure working with Logan and his team to develop this exceptional facility, which promises to deliver one of the world’s best brewery experiences just a short distance from north London. Beavertown’s arrival secures another excellent company to ENDP, where we have concluded over 375,000 sq ft of lettings in six units over the last few years. We are expecting strong demand for the final unit of 50,000 sq ft which we intend to start building once planning consent in received.’’
IP Investment Management (“IPIM”), a Hong Kong-based boutique real estate investment manager and Maven Capital Partners (“Maven”), a leading UK property and private equity manager, have partnered to build Manchester’s first Hampton by Hilton hotel. The venture is Maven’s first hotel collaboration with IPIM, having already worked together on eight purpose-built UK student accommodation (“PBSA”) developments. Hampton by Hilton, Manchester, is Maven’s eighth UK hotel development and expands a hotel portfolio which includes brands such as hotel Indigo, Ibis Styles and Travelodge. The £24.6 million newly built hotel was designed by Tim Groom Architects, with Create Construction as the main contractor, alongside its sister company Create Developments, both part of north-west development experts, Create Group. The 221-room, nine storey hotel is the latest to join Hampton by Hilton’s growing portfolio, which includes 31 existing properties in the UK. Hampton by Hilton is one of the fastest growing global hotel brands, offering a consistent hotel experience at a competitive price point to business and leisure travellers alike. There are over 2,500 Hampton by Hilton hotels in 29 countries worldwide. The hotel is operating under a Franchise Agreement with Hilton, one of the largest hotel companies in the world with nearly one million rooms in 6,300 hotels worldwide, and a Hotel Management Agreement with RBH, a leading independent hotel management and services company operating a diverse collection of branded and private label hotel properties across the UK. RBH currently manages more than 45 hotels across the UK, including three on behalf of Maven. Located at 41 Rochdale Road, the property is well-situated to serve business and leisure travellers staying in Manchester’s vibrant Northern Quarter, which features colourful street art, independent record shops and some of the city’s most iconic cultural venues. Manchester’s popular Arndale Shopping Centre is a seven-minute walk away. The AO Arena (formerly The Manchester Arena) is a 12-minute walk from the hotel, which has the highest seating capacity of any indoor venue in the UK. Furthermore, the National Football Museum is located nearby, the Etihad Stadium is located 1.5 miles to the east and Manchester United Football Club is located 3.5 miles to the southwest. The Printworks, which is home to restaurants, bars, nightclubs, a cinema and a gym, are located 0.5 miles to the south. Colin Anderson, Partner at Maven, said: “We are delighted to continue our partnership with IPIM and are thrilled to add Hilton to our brand stable for what is our first development in Manchester. The new Hampton by Hilton is situated in a superb location with a host of attractions close by, and it will cater for the rising number of visitors coming to the area for leisure and business, as well as assist with the further enhancement of the city’s vibrant Northern Quarter.” Selina Williams, Executive Director, IP Investment Management, added: “I am very pleased to be furthering our relationship with Maven by partnering with them on our first hotel development. Despite opening in the midst of what is one of the most challenging years on record for the hospitality sector, we are optimistic about the future. Manchester is undoubtedly the UK’s second city with a bright future as part of the UKs northern powerhouse.” Graham Dodd, Managing Director of UK and Ireland Development at Hilton said: “It is a pleasure to see Manchester’s first Hampton by Hilton property completed and one step closer to welcoming its first guests. The city’s Northern Quarter is thriving and the addition of this hotel will further boost the area’s growing economy. We’re confident the high-quality accommodation, value-added amenities and thoughtful service the Hampton brand is known for will prove popular with locals and visitors alike.” Adrian Tottey, Managing Director of Create Construction commented: “Congratulations to all involved for completing this outstanding hotel project. The Covid-19 pandemic created a challenging environment during the build and it is a credit to the professionalism and expertise of the team that the hotel has been finished to such a high standard.”
National proptech firm, MakeUrMove, has secured a £1.3 million funding package from shareholders to achieve its ambitious growth targets. Since the launch of the UK’s first subscription service in 2019, MakeUrMove has transformed its innovative platform to focus on addressing landlord’s specific needs and putting them back in control of their rental properties. The success and uptake of the subscription service, called ‘The Good Landlord’, resulted in additional funding from existing shareholders, PP Asset Management, with the aim of MakeUrMove doubling the number of landlord subscribers in the next six months. Phil Pels, Owner at PP Asset Management said: “We fully believe MakeUrMove’s vision of using people-focused technology to transform the proptech sector for the better, addresses a vital gap in the market. MakeUrMove has proven over the years that its business model is viable and we are delighted to place more support behind their innovative approach to the private rented sector.” MakeUrMove continues to lead the way in developing innovative solutions aimed at helping the private landlord, recently launching tenant pre check services, digital viewing tools, editable digital contracts and a fully compliant document sharing portal. The platform goes beyond advertising and tenant find and focuses on handling the administration and tenancy management once a tenancy begins – utility notifications, renewals, maintenance management, rent collection and safety reminders are just some of the things MakeUrMove automates for the landlord to allow them to stay in control. The £1.3m funding will enable MakeUrMove, who launched in 2008 as the UK’s first national online letting agency, to execute new ground-breaking features. Plans in the pipeline will focus on both landlord and tenant solutions as the company recognises the importance of strengthening these relationships and building tools to support all stakeholders. The market as a whole has been poisoned by too many divisive voices and is in desperate need of a coherent solution which does more than what is currently out there. Renting and letting should not be difficult but it should be fair for everyone involved, good tenants and landlords should be celebrated and supported and MakeUrMove is on a mission to do just that. Alexandra Morris, Managing Director of MakeUrMove, said: “This is a truly exciting time for the business, and this funding will enable us to focus on evolving our services so we can continue to support our landlords and tenants. We are dedicated to the creation of innovative solutions in the private rental sector with technology at its core and our new features in development are key for helping us to reach our ambitious growth targets. “While the coronavirus pandemic forced much of the housing industry to close earlier this year, thanks to our flexibility and cloud-based technology, we continue to adapt to ensure we can keep supporting our landlords and help them maintain relationships with their tenants.” MakeUrMove is a leading proptech company and the only platform of its kind aimed at landlords. It was recently recognised for its leading customer service, winning ‘Best Online Letting Agent’ at The ESTAS 2020 (The Estate Agent of the Year Awards), as well as being shortlisted in the upcoming UK Proptech Awards and UK Business Tech Awards.
Funds advised by Hilltop Credit Partners, a specialist funding partner for SME residential developers, have completed a £2 million loan to Pars Developments to fund a private residential development in the Wiltshire village of Latton. The development sits on the edge of a National Nature Reserve and is a short drive from both the Cotswolds and Swindon. The facility will be used to fund the site acquisition, development of four new detached houses, and refurbishment of an existing semi-detached house; the facility also includes a VAT bridge loan. The target audience for the development is families looking to upsize, including London-based buyers seeking more rural locations with work-from-home space, private gardens and access to countryside leisure activities. “We are excited to be partnering with Hilltop, who have worked hand-in-hand with us to get this project funded. We believe this niche development will be received well by the market, particularly given the trends that have emerged post-Covid,” said Sepehr Izadpanah of Pars Developments. Latest Rightmove data suggests that homes sales agreed nationally were up +70% y/y in September, reflecting a number of factors, including strong pent-up demand, the introduction of government stamp duty incentives, and emerging structural changes in the nation’s housing market. The regional house price statistics from Land Registry also show pricing for newbuild housing stock in Wiltshire +7.2% y/y. The project has been sponsored by Pars Developments, who have decades of experience delivering high-quality, affordable family housing in the local Swindon / Wiltshire market. “We are pleased to be working with Sep, Morri and their development team on this project. Pars has a long history of successfully developing affordably priced housing in their local market, and this development fits perfectly with the direction the post-Covid market is headed – an increased focus on indoor and outdoor space and an ability to work from home in a beautiful part of the country,” commented Paul Oberschneider, Founder and CEO of Hilltop Credit Partners.
Network Space Investments Limited has completed the off-market purchase of a modern single let industrial building on Hellaby Business Park, Rotherham, for £2.45million. The building, Unit 6, is situated in the heart of the Hellaby industrial estate, immediately adjacent to J1 of the M18 and within easy access of the M1, Doncaster and Sheffield. The building extends to approximately 40,000 sq. ft and is currently occupied by a FTSE 100 listed long-term tenant. Martin Mellor, Managing Director of Network Space Investments Limited commented: “We are delighted to have acquired this building to add to our growing investment portfolio. “The property is both well located within the South Yorkshire conurbation and has been excellently maintained by the current tenant who has been in situ for eight years. The acquisition precisely matches our investment criteria to acquire good quality modern buildings in urban areas where there is significant future value growth potential.” Network Space Investments has appointed Doncaster-based NSM property and asset management specialists to manage the property. Network Space Investments was represented by CPP.
Fund seeded with 1.9 million sqm of prime European logistics real estate assets GLP’s second pan-European income logistics fund closed within 30 days of GLP JIF, Japan’s largest private open-ended logistics real estate income fund GLP announced today the first close of its newly established pan-European logistics fund, GLP Europe Income Partners II (“GLP EIP II”), with €1.1 billion of equity commitments. The investors in GLP EIP II comprise both new and existing global institutional investor partners. GLP EIP II is seeded with a prime pan-European logistics real estate portfolio of income-producing assets, largely sourced off-market, and totalling 1.9 million sqm across 25 established logistics locations in nine countries. With an average age of less than five years, the seed assets have superior specifications and benefit from a weighted average unexpired lease term of nearly seven years. The portfolio has performed exceptionally well throughout 2020, with nearly 100,000 sqm of new leasing growing occupancy to over 97 percent. GLP EIP II will continue to acquire logistics assets across Europe’s prime locations while delivering superior risk-adjusted returns for investors. Ralf Wessel, GLP managing director, fund management, said: “Since entering the European market in 2017, GLP has tripled its assets under management and strategically expanded its presence to meet investor demand and support its disciplined growth strategy. In 2020, GLP added close to US$9 billion across our logistics strategies globally, signifying strong investor confidence in our investment and operating expertise.” Nick Cook, president of GLP Europe, said: “GLP Europe Income Partners II demonstrates the continuing strength of the European logistics market driven by consumption, e-commerce and supply chain modernization. Over the past two years, our experienced on-the-ground team has executed more than 20 off-market transactions to create a truly pan-European logistics platform and support our disciplined growth strategy.” In Europe, GLP is one of the longest-standing fully-integrated logistics investors, developers and operators and manages €9 billion (US$10 billion) of AUM across Europe’s strongest logistics markets. GLP EIP II is the company’s fourth Europe-focused investment vehicle and follows US$2.6 billion GLP Japan Income Fund (“GLP JIF”), Japan’s largest private open-ended logistics real estate income fund, which was launched in August 2020. About GLP GLP is a leading global investment manager and business builder in logistics, real estate, infrastructure, finance and related technologies. Our combined investing and operating expertise allows us to create value for our customers and investors. We operate across Brazil, China, Europe, India, Japan, and the U.S. and have US$89 billion in assets under management in real estate and private equity funds. Learn more at glprop.com.
Sales activity in the £1m+ property market is storming ahead according to the latest Rightmove data, as wealthier buyers race for more space and leafier locations in the wake of the Covid-19 pandemic and changing lifestyle preferences. This, according to Hilltop Credit Partners, makes it a perfect time to support developers and provide investors opportunities to invest in a market that has never looked more bouyant. Paul Oberschneider, CEO at Hilltop Credit Partners, said: “A common conception is that houses in the £1m+ market take longer to find buyers than the overall market because of their higher price points. But the latest data from Rightmove shows that UK’s million-pound homes are actually outperforming the rest of the property market in terms of the number of sales being agreed. The hottest millionaire markets right now are Norfolk, Wiltshire, Cornwall, Henley, Hackney, Tooting, Stoke Newington, Balham with affluent buyers willing to part with huge sums of money to buy larger homes. “A big reason for this market sentiment is the ongoing pandemic which is pushing many potential buyers to swap city apartments for bigger homes with more living spaces and gardens. With the government’s big push for work-from-home once again, many employees are also expected to spend fewer days in the office and may look to relocate to a bigger property with more outdoor space. The post-Covid market will have an increased focus on indoor and outdoor space and wealthier buyers will be the first to move to bigger homes. “Since the lockdown this year, UK’s property sector has shown incredible resilience despite the market setbacks. Demand from residential developers continues to be strong, and we are encouraged by the strength we have seen in the UK residential market over the past several months. At Hilltop, we are extremely proud of our one-stop funding solution which continues to be well received by the market, and how we have provided c. £30m in lending commitments (to date in 2020) to SME developers across England. The product offered by Hilltop has a dual pronged approach which includes both debt and equity elements. The equity raise on one side assists the developer, meet much needed final stretch and on the other, opens up these exiting developments to investors who may wish to invest and be part of the growth story. “We continue to have a growing pipeline with great sponsors. Case in point our newly increased £50m loan-on-loan facility from OakNorth Bank which is set play a huge role in supporting our ongoing development finance lending. We also provided funds for an eco-friendly residential development in North Devon as it combines high-quality construction and design, with green space, energy efficiency, and affordability – catering perfectly to today’s home buyers.” Hilltop’s management team includes former developers and finance experts, and together they have successfully originated and managed value-add and opportunistic residential deals through challenging market cycles. The fund is backed by the global real estate investment firm Round Hill Capital.
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