WISE LIVING has backed predictions that Single Family Housing Build-to-Rent (SFH BTR) real estate investment will continue to grow. Based on Wise Living’s own involvement with 50% of the UK’s existing SFH BTR stock, the experts agree with the JLL 2023 Investor Survey’s strong SFH BTR growth forecasts. However, Paul Staley, managing director of
Harworth Group plc, a leading regenerator of land and property for sustainable development and investment announces the launch of “Project Spur”, a single family Built to Rent (“BTR”) portfolio of around 1,200 homes across 10 of its development sites. Harworth is today publishing marketing materials for the scheme, which represents
Birmingham will be Get Living’s eighth neighbourhood and marks their growing presence across the UK with a portfolio of over 10,000 homes The scheme is Watkin Jones’ largest build to rent development to date Get Living, the UK’s pioneer of large-scale build to rent neighbourhoods and Watkin Jones, the UK’s
CACI, the consumer and location intelligence specialist, has revealed the top 20 areas best to invest in for build-to-rent (BTR) schemes across the UK. The research highlights developments are proving increasingly popular with residents, as more and more consumers are attracted to BTR schemes because of the ease and convenience
A HISTORIC development in the West Midlands has moved one step closer to completion following a topping out ceremony held by contractor Clegg Construction. Located in Great Hampton Street, Birmingham on the edge of the Jewellery Quarter, the scheme comprises four different buildings, one of which is listed. The scheme includes
Metropolitan announces today the award of a 25-year contract to adopt and operate a large-scale district heating network for Quintain’s Wembley Park development: the major regeneration project that is transforming the area around the National Stadium. The heat network will serve 5,200 new homes, developed by Quintain at the site,
BDC 319 : Aug 2024
WISE LIVING has backed predictions that Single Family Housing Build-to-Rent (SFH BTR) real estate investment will continue to grow. Based on Wise Living’s own involvement with 50% of the UK’s existing SFH BTR stock, the experts agree with the JLL 2023 Investor Survey’s strong SFH BTR growth forecasts. However, Paul Staley, managing director of Wise Living, queries the relatively low confidence expressed by real estate investors – with JLL reporting just 20% of those asked expecting SFH to provide the greatest opportunities over the next five years. Paul, said: “It is surprising that only 20% of real estate investors surveyed by JLL expect SFH to provide the greatest opportunities over the next five years. For me, the changes in the BTR space have been undeniable over the past decade, and increasingly we are seeing SFH being spoken about in its own right, and for good reason. “This talk has translated into real results, with the number of deals agreed in the UK’s Single Family housing market in Q1 2023 valued at £450m, surpassing the full-year 2022 investment total of £330m, according to the Knight Frank Single Family Housing Report. “The question now is can this be sustained and will it continue? My answers is yes. Our existing work and current development pipeline points to a flourishing SFH sector. Suburban family rental homes are replacing home ownership and with many private landlords exiting the industry due to economic pressures, institutional investment opportunity is only growing.” Wise Living has seen a 93% increase on new SFH BTR tenancies starting in 2022 compared with 2021, with 2023 set to surpass this figure. The business has also reported strong occupancy rates of over 98% and low arrears of 0.6%, which points to the success of the model as a reliable investment option going forward. Paul, continued: “The opportunity now lies in the hands of institutional investors. To truly unlock this sector’s potential, a forward-looking and long-term perspective is needed. As the industry continues to flourish, we are working with investors to align their investment strategies with this momentum.” For more information about Wise Living, visit: www.wiselivinghomes.co.uk Building, Design & Construction Magazine | The Choice of Industry Professionals
Harworth Group plc, a leading regenerator of land and property for sustainable development and investment announces the launch of “Project Spur”, a single family Built to Rent (“BTR”) portfolio of around 1,200 homes across 10 of its development sites. Harworth is today publishing marketing materials for the scheme, which represents a unique forward funding and long-term investment opportunity for a prospective partner. Harworth announced plans to develop a single family BTR product in September 2021, as part of its strategy to grow its business to £1bn of EPRA NDV1 over five to seven years. This new product will be complementary to Harworth’s existing Build to Sell products developed by housebuilders at its residential sites and will support the Company’s ambition to double its residential plot sales to around 2,000 plots per annum over its strategic plan period. Project Spur will be an opportunity to acquire a single family housing portfolio of significant scale across 10 established sites in Yorkshire, the Midlands and the North West. The sites are in strong locations which are in close proximity to major conurbations and employment centres, as well as local amenities and transport connections. The sites have also benefited from Harworth’s investment, as well as its masterplanning and placemaking expertise, which have delivered extensive green space, recreational facilities and a well-deigned public realm. The introduction of the BTR product is expected to further add to the vibrancy and attractiveness of these communities. The housing type composition for the portfolio has been optimised for the single family BTR market, with a focus on two- and three-bedroom homes, all built to a high-quality design which is centred on sustainability. The project has an anticipated delivery timeline of three years, with phased handovers of the sites during this time. There will be the potential, subject to further agreement, for the partner to work with Harworth to introduce the single family BTR product to additional sites as part of future phases of development. Project Spur is being marketed by Allsop on behalf of Harworth. 1 European Public Real Estate Association (“EPRA”) Net Disposal Value: an adjusted net asset value metric that is one of Harworth’s Key Performance Indicators. “Harworth’s extensive portfolio is particularly well suited to delivering institutional quality single family rental homes at scale. Project Spur is part of our strategy to accelerate the development of our residential sites, providing a range of homes for local people and enabling diverse communities. We look forward to working with partners aligned to our purpose and ambitions, to continue delivering places where people want to live and work.” Lynda Shillaw, Chief Executive, Harworth Group “Project Spur is a rare opportunity to partner with one of the UK’s leading land and property regeneration specialists. Located in suburban communities across Yorkshire, the Midlands and the North West, these units provide a diverse and defensible portfolio of properties that benefit from close proximity and strong transport links to nearby employment and amenity centres.” James Crow, Head of Mixed Tenure, Harworth Group
Birmingham will be Get Living’s eighth neighbourhood and marks their growing presence across the UK with a portfolio of over 10,000 homes The scheme is Watkin Jones’ largest build to rent development to date Get Living, the UK’s pioneer of large-scale build to rent neighbourhoods and Watkin Jones, the UK’s leading developer and manager of residential for rent homes have agreed a £136 million forward funding deal to deliver 551 new homes at Sherlock Street, Birmingham. Representing Get Living’s first acquisition in Birmingham, the development will provide 551 beautifully designed one, two and three-bed apartments, 47 of which will be affordable. Residents will be able to enjoy social lounges, a gym and co-working space in the scheme, which will also benefit from double-height reception areas, a landscaped podium, and a double-height sky lounge. Located within 500m of the iconic Bull Ring shopping centre, in the heart of Birmingham City Centre, Sherlock Street (currently known as Maker’s Yard) is Watkin Jones’ largest build to rent development to date and will be ideally placed for residents to benefit from the city’s extensive retail, restaurants and bars, as well as public transport from Birmingham New Street Station. Alex Pease, Chief Investment Officer of Watkin Jones, said: “Our teams have done a superb job developing this scheme and we’re very pleased to have secured an investor with the knowledge and commitment of Get Living to take it through delivery with us. Sherlock Street is perfectly located on a brownfield site in the centre of Birmingham and will offer its residents an amazing lifestyle in a highly sustainable place that offers real long-term value to the wider community. “Institutional investment like this makes a real difference for places with a significant shortage of rental homes. We have a strong record in Birmingham and are actively looking at new opportunities across the Midlands.” Rick de Blaby, CEO of Get Living, added: “Birmingham, the UK’s second largest city has always been on Get Living’s wish list and so we are very excited to have secured this key city centre location with Watkin Jones for what will be Get Living’s eighth large-scale neighbourhood. “This transaction for such an attractive scheme takes our secured development pipeline to circa 6,500 homes supporting our ambitious strategy to grow our portfolio to 15,000 homes within the next five years. “It is our responsibility, as long-term owners and custodians, to ensure we provide a sustainable neighbourhood for people in Birmingham, not just to call home and put down roots, but also to set the stage for a community to thrive. We look forward to working with Watkin Jones as they deliver the scheme.” Sherlock Street is located on a 2.47-acre site and will feature a new pedestrianised public square that connects the city centre with the wider Rea Valley Urban Quarter, as well as giving access to the scheme’s circa 16,500 sq ft of ground floor commercial space that will enable local employment opportunities. The neighbourhood will be managed and operated by Get Living on behalf of its investors, with the final phase of the scheme expected to complete in 2025. Get Living was advised by BCLP and Colliers. Watkin Jones was advised by Addleshaw Goddard.
CACI, the consumer and location intelligence specialist, has revealed the top 20 areas best to invest in for build-to-rent (BTR) schemes across the UK. The research highlights developments are proving increasingly popular with residents, as more and more consumers are attracted to BTR schemes because of the ease and convenience they provide. CACI’s data has unearthed significant opportunities outside London, with both Coventry in the West Midlands and Central Bedfordshire in the East of England achieving total ranking scores of 71% each for BTR investment potential. The complete top 20 is: 1 Coventry 11 Cardiff 2 Central Bedfordshire 12 Maidstone 3 Aylesbury Vale 13 Arun 4 South Gloucestershire 14 West Lothian 5 Colchester 15 Barking and Dagenham 6 Milton Keynes 16 Manchester 7 Swale 17 Wealden 8 Sandwell 18 Peterborough 9 Ashford 19 Sheffield 10 Leeds 20 County Durham In London itself, Barking and Dagenham are the highest-ranking boroughs, largely driven by the rental income and quantity of potential customers. The data also reveals there is a geographical pattern in London, with the biggest opportunity for BTR in the capital to the east and north of the city, largely driven by the underlying demographic of the area. More than £1.2 billion was invested into the UK’s BTR market in Q1 2021, the highest first quarter on record*. To reflect the growing popularity of the sector, CACI’s BTR index has reviewed factors including rents, affordability, yields, volume of potential customers and population growth to create the ranking. Commenting on the research, Tolgar Necar, Managing Consultant at CACI said: “It’s clear from our ranking that the UK BTR market has established itself in a wide range of locations. The market is growing rapidly and destinations within the London commuter belt are becoming more appealing than ever for this younger generation looking for convenience and high-end schemes to live in. For more and more of these consumers, it is all about the ability to socialise as opposed to the size of the property, kerb appeal and having a garden are less important, which is reflective of their life-stage.” Managed services and facilities contribute hugely to the attractiveness of the schemes to prospective tenants, allowing developers to stand-out from the competition and achieve premium rental values, creating a win-win for developers seeking higher yields and renters happy to pay for these features. Such premiums tend to gear developments towards higher-earning groups, often falling within CACI’s ‘rising prosperity’ Acorn segments, with aspirational ‘starting out’ groups also attracted by the ease and convenience that these managed schemes provide. CACI’s research has also identified the factors most relevant to such consumers when choosing a BTR location: proximity to friends, proximity to work, transport links, proximity to green space, the quality of local amenities (shops and F&B); and access to high-speed internet. BTR schemes also typically offer high-spec units, with managed amenities and services – the best of which are highly targeted to the needs, wants and lifestyles of specific user groups and audiences. This latest index from CACI follows their latest research revealing the scale of demand for staycations in the UK this summer. * https://www.savills.co.uk/research_articles/229130/312837-0
A HISTORIC development in the West Midlands has moved one step closer to completion following a topping out ceremony held by contractor Clegg Construction. Located in Great Hampton Street, Birmingham on the edge of the Jewellery Quarter, the scheme comprises four different buildings, one of which is listed. The scheme includes the regeneration of the grade II* listed former J. Ashford and Son jewellery factory building, which is being revitalised, with three further distinct blocks each with their own innovative and contextual architectural style. The three and four storey build-to-rent (BTR) development will provide 158 new high-quality rental homes and 10,000 sq ft. of ground level commercial space. Clegg Construction was appointed to complete the BTR project, which includes the grade II* listed former factory, with works due for completion in early 2022. Dave Swift, operations manager at Clegg Construction, said: “We’re really excited to have reached this significant milestone as it’s a great scheme to be involved in. We very much enjoy working on projects that combine heritage buildings with new development to create something really special. “We are therefore proud to be part of scheme that offers much needed residential and commercial space in the city centre. We’ve made excellent progress to reach this point and we’re very much looking forward to seeing the scheme progress to a finished product, delivering high quality rental homes in this vibrant part of the city.” The scheme aims to address the national housing shortage and boost the West Midlands’ residential offering, as well as contributing towards economic growth with the inclusion of 10,000 sq ft of commercial space that can be utilised by local businesses.
Metropolitan announces today the award of a 25-year contract to adopt and operate a large-scale district heating network for Quintain’s Wembley Park development: the major regeneration project that is transforming the area around the National Stadium. The heat network will serve 5,200 new homes, developed by Quintain at the site, alongside a capability to serve 90,000 sq. ft of retail and Grade-A commercial buildings. The flexibility of Metropolitan’s approach has enabled a new service framework for Quintain’s innovative heating solution to serve the majority of Wembley Park. Wembley Park is a landmark urban transformation, occupying an 85-acre site, which is a residential led, mixed-use development and when complete will consist of 8,500 homes, shops, leisure facilities, a seven-acre park, nursery, ‘super-gym’ and 0.7m sq. ft. of Grade-A offices. Wembley Park will be the largest Build to Rent (BtR) development on a single site in the UK with over 6,000 of the apartments managed by award-winning rental management platform, Quintain Living. The remaining homes are, and will be, a mixture of tenures including discount market rent, affordable rent and key worker homes from the London Borough of Brent, and for sale properties. The BtR model required a fresh solution. Metropolitan will be on site seven days a week to deliver exceptional levels of customer service. Metropolitan has a direct relationship with homeowners alongside a wholesale agreement with the landlord for the BtR customers. This includes high service standards for individual residents and commercial tenants with enhanced response times. The large plant room at Wembley Park contains two 1.5MWe CHP engines and three 10MW gas boilers, which will be brought into use as the development grows. The heating design has no individual Heat Interface Units (HIUs) in any of the apartments, releasing much valued space for the occupier. Andrew White, Managing Director of Metropolitan, commented: “We are delighted to be involved in such a prestigious, ground-breaking project. Developing the framework to serve Quintain’s mixed-use development at Wembley Park has required a very flexible approach and considerable attention to detail to ensure that the district heat service lives up to the high expectations of Quintain’s team. We are looking forward to a long-term relationship with Quintain and delivering the highest possible quality of service for all the residents at Wembley Park.” James Saunders, Chief Executive of Quintain commented: “The exceptional level of service offered by Metropolitan to all working and living in Wembley Park, mirrors that of our in-house Quintain Living team. After a competitive tender process, we chose Metropolitan because their team listened and understood what we needed and worked tirelessly to deliver to our brief.” www.metropolitan-uk.co.uk www.quintain.co.uk
