Housing Investment Fund Project Kent Housing Partnership 19

Housing Investment Fund Project Kent Housing Partnership 19 th September 2016 Paul Beardmore Director of Housing Manchester City Council

Why did we do it? • Housing Strategy - Need more homes - Focus on owner occupation – not social rent • 2008 Market downturn - PRS coming to the fore - Pressure to build • Housing Investment Model - Consultants model

Business Case • • • Aims for partnership – Build more homes and MCC and GMPF to take revenue return. Two Investment partners: • Council with land to invest (+ HCA contributing 1 site) • Pension Fund with cash to invest Revenue return is generated through market rentals and capital return through house sales. Slide 4

HIF 1 5 key elements: 1. An investor (GMPF) to fund the construction costs 2. A landowner = the Council with 4 sites & Homes and Communities Agency with 1 site 3. A development contractor to design and build the properties 4. A head tenant (Management Company) to manage the rental properties 5. A Sales and Marketing team to publicise and sell the homes for home ownership

Housing Investment Fund Model MCC/GMPF form partnership Partnership appoints contractor, sales team and property mgr Design and Build price obtained Land Value transferred to equity % Annual returns paid to partners Scheme Built, units sold and Let Management lease secured Design and Build cost transferred to equity % Lease period complete and exit strategy enabled Slide 6