Crown Estate Property UK Estate manages a diverse range of urban, rural and marine Investor estates on behalf of the crown and is valued at c.£8.1bn. £5.9bn of this comprises the urban portfolio with a focus on core estates in and St James’s, which includes 650 residential properties occupied on a mixture of long and short leases. This portfolio is gradually growing through the Estate’s commercial development activities, but this is very much as a consequence of planning requirements rather than a concerted PRS strategy. Delancey REAM Investment UK Delancey is a specialist investment and advisory company. Manager The company is involved in four major residential development projects in London the most notable being their JV with Qatari Diar (see below) at the East , E20. The JV company Qatari Diar Delancey is acquiring 1,439 PRS units at the former Olympic Athletes’ Village as conversion works complete. The completed units will be let and managed via the Get London Living brand, launched in May 2013, and the first units are due to be launched in late summer 2013. It has also recently been announced that Delancey has formed a JV with APG (see above), reportedly to deliver rental schemes in 600 unit clusters across London. The JV’s purchase of the Elephant and Castle Shopping Centre next to Delancey’s existing 373 unit Tribeca Square development is touted as the first big step for the initiative. Delph Property Group Residential UK Delph was established in the 1950s and is a privately owned company Investor that specialises in acquiring residential property for its own and other investor’s portfolios. We are told that the company has 1,000 units under management including a number spread across 36 blocks in London. Delph has not divulged its future plans to Molior but much recent activity seems to be of a “quick turn” nature. The company’s website expounds the virtues of capital growth and in recent years it has bought a number of distressed developments around the UK, many of the units in which have subsequently been sold on the retail market, rather than retained as investments. Dolphin Square Registered UK Dolphin Square describes itself as an “Affordable PRS” landlord. Its schemes Foundation Provider are intended to be competitive in product terms with the best private offerings but most units will be let as ‘Intermediate Rent’. Through forward purchase and in-house development the company is looking at a current pipeline of 600 units across both private and intermediate tenures. Dorrington PLC Residential UK Dorrington has been operating since the 1930’s and has a portfolio of more Investor than 2,000 residential units. The company acquires standing blocks, usually in a messy physical and tenure condition and then repositions them in the market over a period of time via a process of proactive management. This strategy is unlikely to change although the company has indicated its interest in working with an institutional investor to create a build-to-rent portfolio. In May 2013 it was announced that Dorrington had entered into a 50:50 JV with Grainger (see below) to hold a 598 unit portfolio in South London. East Thames Group Registered UK East Thames Group is a major provider of affordable homes in East London Provider and Essex. The group holds a small portfolio of PRS units, assembled on an ad-hoc basis. In the future the group will consider PRS as an integral part of the potential tenure mix for each new development. Rather than being driven by a headline PRS target East Thames will consider the financial and social needs of each site on a case by case basis. Essential Living Residential UK Essential Living is a new company set up in 2012 through a partnership Investor between Essential Land LLP, a London based developer, and M3 Capital Partners, a US based fund raiser. The JV is being funded by the Washington State Investment Board and intends to develop 5,000 PRS homes across London and the South East over the next decade. To date the JV has secured six sites in London and one in Maidenhead. Four of these already have planning consent but some form of application will be required in all cases to provide the Essential Living specification. As such Essential Living is the only entity currently exposed to planning risk on PRS development. Evenbrook Capital Residential UK Evenbrook was established in 1994 and owns 800 PRS properties across Investor the UK managing them all in-house. However, the company has recently sold its two remaining blocks in London and has no current plans to replace them because its yield based business model works better in the regions. First Base Property UK First Base has announced its intention to incorporate PRS units within Developer forthcoming developments. The Silvertown Quays regeneration project, a JV with the GLA, Chelsfield and Imagine Europe, is the obvious first candidate. We are told to watch this space.

PRIVATE RENTED SECTOR : NOVEMBER 2013 | MOLIOR LONDON | WWW.MOLIORLONDON.COM 19

Hamlets.

Hackney - Stanmore, Harrow - Saffron Square, Croydon - Caspian Wharf, Tower Wharf, Tower Caspian - Croydon Square, Saffron - Harrow Stanmore, - Hackney

Hounslow - Marine Wharf, Lewisham - Beaufort Park, Barnet - Woodberry Down, Down, Woodberry - Barnet Beaufort Park, - Wharf, Lewisham Marine - Hounslow

the end of March 2015 and they will be spread across seven sites: Kew Bridge West, West, Bridge Kew sites: seven across spread be will they and 2015 March of end the

and add another 140 homes into the portfolio. Berkeley is due to complete the units by by units the complete to due is portfolio. Berkeley the into homes 140 another add and

Building programme to acquire 140 new private rented units to be built by Berkeley Homes Homes Berkeley by built be to units rented private new 140 acquire to programme Building

a £90m PRS portfolio. Notting Hill will receive a £45 million loan from the Get Britain Britain Get the from loan million £45 a receive will Hill portfolio. Notting PRS £90m a

The HCA announced that Notting Hill, the GLA and the HCA had signed a deal to create create to deal a signed had HCA the and GLA the Hill, Notting that announced HCA The

E14. We are told the units are destined for the PRS. the for destined are units the told are We E14.

L&Q exchanged to forward purchase 51 units in ’s development on Carmen Street, Street, Carmen on development Bellway’s in units forward to 51 purchase exchanged L&Q

in Kingsbury, HA3. We are told the units are destined for the PRS. the for destined are units the told are We HA3. Kingsbury, in

L&Q exchanged to forward purchase 55 units in Bellway’s Kingsbury Central development Kingsbury development Central Bellway’s in units forward to 55 purchase exchanged L&Q

2015.

the units which have been specifically designed for the PRS and are due for completion in in completion for due are and PRS the for designed specifically been have which units the

14-42 North Street development in Barking. Grainger will pay a total of £13.7 million for for million £13.7 of total a pay will Grainger Barking. in development North Street 14-42

Grainger confirmed that it has agreed to purchase all 100 residential units at Bouygues’ Bouygues’ at units residential 100 all purchase to agreed has it that confirmed Grainger

residential tenants and all outgoings during the lease term. term. lease the during outgoings all and tenants residential

RPI linked rent of c.£7 million. Genesis will be responsible for sub-letting the properties to to properties the sub-letting for responsible be will Genesis million. c.£7 of rent linked RPI

Genesis is leasing back the units on institutional 35 year FRI terms and paying an annual annual an paying and terms FRI year 35 institutional on units the back leasing is Genesis

Stratford Halo in a sale and lease-back transaction with Genesis Housing Association. Association. Housing Genesis with transaction lease-back and sale a in Halo Stratford

It was widely reported that M&G SPIF is paying £125 million for 401 PRS units at at units PRS 401 for million £125 paying is SPIF M&G reported that widely was It

Asian investor. Asian

Merchant Square in Paddington Basin, for a price in excess of £47 million to an un-named un-named an to million £47 of excess in price a for Basin, Paddington in Square Merchant

The Crown Estate announced that it is selling its block of 60 residential apartments, at at apartments, residential 60 of block its selling is it that announced Estate Crown The

defined property acquisition opportunities consistent with GRIP’s investment criteria. investment GRIP’s with consistent opportunities property acquisition defined

c.£9 million of new equity. In the future Grainger will give GRIP a first right of refusal over over refusal of right first a GRIP give will Grainger future the In equity. new of million c.£9

£59 million - comprising its proceeds from its original stake in G:res and an additional additional an and G:res in stake original its from proceeds its comprising - million £59

Grainger UK PRS fund established in 2005. APG has invested £158 million and Grainger Grainger and million £158 invested has APG 2005. in established fund PRS UK Grainger

Grainger announced the formation of the GRIP with APG. GRIP is to acquire G:res1, a a G:res1, acquire to is GRIP APG. with GRIP the of formation the announced Grainger

of £11.95 million. £11.95 of

Green, E1 and Welford House in Purley, CR8. In total 60 units were purchased at a price price a at purchased were units 60 total In CR8. Purley, in House Welford and E1 Green,

Akelius purchased two new residential blocks in London - St Peter’s Court in Stepney Court Stepney in Peter’s St - London in blocks residential new two purchased Akelius

respectively.

Peony Court (19 units) and Chantrey House (28 units) in South Kensington and Belgravia Belgravia and Kensington South in units) (28 House Chantrey and Courtunits) (19 Peony

residential blocks through its partnership with Residential Land and Apollo. The blocks are are blocks The Apollo. and Land Residential with partnership its through blocks residential

Ivanhoé Cambridge announced the purchase of majority ownership interests in two two in interests ownership majority of purchase the announced Cambridge Ivanhoé

be submitted before the end of 2013. 2013. of end the before submitted be

Properties for £33.5 million. A planning application is currently being prepared and will will and prepared being currently is application planning A million. £33.5 Propertiesfor

Essential Living has bought the prominent office block from an SPV called Dunning Dunning called SPV an from block office prominent the bought has Living Essential

Deal

51

55

60

60

47

140

100

401

162

2,170

PRS Units PRS

Berkeley seven site portfolio site seven Berkeley

Carmen Street, E14 Street, Carmen

KingsburyHA3 Central,

14-42 North Street, IG11 North Street, 14-42

Stratford Halo, E15 Halo, Stratford

Merchant Square, W2 Square, Merchant

Welford House, CR8 House, Welford

St Peter’s Court, E1 and Court,and E1 Peter’s St

Chantrey House, SW1V House, Chantrey

Peony Court, SW10 and and Court, SW10 Peony

100 Avenue Road, NW3 Road, Avenue 100

Property

GRIP.

Capital advised advised Capital

APG. Macquarie Macquarie APG.

Capital advised advised Capital

Macquarie Macquarie

Savills and and

Akelius

CBRE advised advised CBRE

Agents

HCA, Notting Hill Hill Notting HCA,

Berkeley Group, GLA, GLA, Group, Berkeley

Bellway, L&Q Bellway,

Bellway, L&Q Bellway,

Grainger

Development, Development,

Bouygues Bouygues

Genesis, M&G SPIF M&G Genesis,

Crown Estate Crown

APG, Grainger APG,

Akelius

Ivanhoé Cambridge Ivanhoé

Apollo Global and and Global Apollo

Residential Land with with Land Residential

Dunning Properties Dunning

Essential Living, Living, Essential

Parties

April 2013 April

April 2013 April

March 2013 March

February2013

January2013

January2013

January2013

January2013

December 2012 December

November 2012 November Month

PRIVATE RENTED SECTOR : NOVEMBER 2013 | MOLIOR LONDON | WWW.MOLIORLONDON.COM 28 Site Name : Address : Developer Monthly Rents: 1-bed 2-bed 3-bed Elizabeth House Minimum: £1,050 £1,300 341-345 High Road, HA9 Maximum: £1,200 £1,450 Octavia Housing Typical: £1,100 £1,350 November 2013: A good position, good development and nice views mean that 1-bed units let rapidly. 2-bed units are very price sensitive with less demand and agents groan at the thought of clients with over ambitious rental aspirations. Kilburn Wells - Bourne Place (Roundabout Site) Minimum: £1,408 £1,842 Carlton Vale, NW6 Maximum: £1,517 £2,167 London & Quadrant Housing Trust Typical: £1,430 £2,031 November 2013: The development is well located for three stations and whilst the design, inside and out, is described as functional the units rent well. Bromley Site Name : Address : Developer Monthly Rents: 1-bed 2-bed 3-bed Kings Quarter (Ravensbourne College) Minimum: £1,100 £1,300 Walden Road, BR7 Maximum: £1,250 £1,700 SW Thames Typical: £1,167 £1,500 November 2013: The development is very convenient for Elmstead Woods Station and 2-bed apartments apparently let quickly. Houses are a bit harder to let and tend to come up for rent less often in any case. The standard spec is basic and one agent commented that a bathroom he had seen looked decidedly “institutional”. Government incentive schemes have slightly taken the heat out of the lettings market in this area and on this scheme. Ramsden Estate - 3 - Evolution Quarter Minimum: £900 £1,100 Tintagel Road, BR5 Maximum: £1,025 £1,200 Linden Homes South East Ltd Typical: £950 £1,100 November 2013: The development is a long way from anywhere - Orpington station is more than a mile away. Therefore sharers are not part of the equation and tenants tend to be couples and small families of all ages. 2-bed houses are reckoned to be the units to let out as we are told that additional bedrooms do not attract much of a premium. Scholars Court - Block ABC Minimum: £950 £1,100 (Former Anerley School For Boys), SE20 Maximum: £970 £1,300 Taylor Wimpey South East Typical: £962 £1,200 November 2013: The development is convenient for Crystal Palace and benefits from being the newest stock in the area. Trinity Village - Phase 2/3/4 Minimum: £901 £1,148 Crown Lane, BR2 Maximum: £1,001 £1,300 Barratt Kent / Ward Homes Typical: £979 £1,183 August 2013: Although houses within the development seem to feature little in the lettings market there is a regular turnover of apartments. We are told that prospective tenants seem willing to add 15 minutes to their commute in return for the new spec on offer, which gets a glowing write-up and is apparently rare in Bromley. Balconies or Juliet balconies are sought after features in the apartments and have the potential to add £100 to £150 per month to the rent of a 2-bed unit. As ever 1-bed units let quicker than 2-bed units.

PRIVATE RENTED SECTOR : NOVEMBER 2013 | MOLIOR LONDON | WWW.MOLIORLONDON.COM 38