Successful places with homes and jobs A NATIONAL

Successful places with homes and jobs A NATIONAL AGENCY WORKING LOCALLY Custom Build Serviced Plots Loan Fund November 2015

What we will talk about today § What is the Custom Build Serviced Plots Loan Fund (CBSP)? § Who is eligible to apply? § What does the fund provide? § A brief overview of the bid assessment process § An example – French Fields (Westward UK) § Continuous Market Engagement (CME) – how it works.

What is the Custom Build Serviced Plots Fund? § A £ 150 m Government initiative designed to help address the primary difficulty faced by many custom builders – i. e. securing a suitable building plot for their project. § CBSP fund provides short-term loan finance to bring forward sites of 5 or more ‘shovel ready’ plots for further development. § ‘Shovel ready’ means sites with planning permission, where plots or parcels are laid out and the land is ready for construction. § Loans are for residential projects only. § Completed serviced plots once sold can facilitate either custom build or self-build projects.

Who is eligible to apply? § Applicants must be an appropriately constituted body of good standing with the capability to deliver their project § Private sector developers (particularly small and medium-sized) including those carrying out site infrastructure/servicing work and then offering design and build. § Housing associations (registered with and regulated by the HCA) § Community Land Trusts or community groups recognised under the 2011 Localism Act § Public sector bodies are not eligible to apply unless they partner a third party who meet the eligibility requirements

Who is eligible to apply (continued) § Proposals for schemes without planning consent may be initially considered where: Ø land is controlled by the applicant; or Ø where the site has been designated in an adopted development plan. § However, projects must have outline planning permission (with reserved matters) as a minimum to qualify for loan funding. § And…. . result in the construction of new residential custom build.

What does the fund provide? § Recoverable loan funding of up to 75% of eligible qualifying costs. § Eligible qualifying expenditure includes: Ø on-site infrastructure costs relating to the construction of the homes – access roads, footpaths and cycleways Ø provision of on-site utilities which are provided to the plot Ø land preparation required to prepare the plot (including remediation) Ø costs associated with demolition of existing buildings on the site Ø fencing and landscaping to secure the immediate site boundary (excluding fencing or structural landscaping for individual plots) Ø professional fees directly associated with works funded through the CBSP fund. § A £ 3 m cap for funding any single project.

Bid assessment process § Two-stage assessment process: 1. An initial eligibility assessment leading to shortlisting 2. Due diligence to verify the suitability for funding. § Successful completion of due diligence formal negotiations to contract terms before a loan is made. § An applicant can also apply for funding from other HCA programmes (for example, Builders Finance Fund) providing: Ø it is not for the same work Ø any outstanding HCA loan is repaid ahead of any further funding

French Fields - Overview § Westward (UK) Ltd – an SPV with secured services of Kingspan-Potton and Buildstore Ltd. § 2 acre site owned freehold in the North-West (local authority is St. AERIAL VIEWS Helens), accommodating 4, 000 sqm derelict commercial buildings. § Contracted with HCA on 27/3/15. Providing 18 remediated and serviced plots for custom build customers.

French Fields - Partner Roles § Westward (UK) Ltd – coordinate provision of serviced plots and provide general selfbuild advice to customer. § Kingspan-Potton – produced site masterplan, work with customer on individual house designs, manufacture, supply and erect units on site. § Buildstore – coordinates marketing and plot sales, provides financial services to the customer – specialist in self-build mortgages, warranties and insurance.

Continuous Market Engagement (CME) § CME began on 30/1/15. Prospectus and supporting information on the Gov. UK website. Submitted bids will be assessed/decisions made on a rolling basis. § Funding is available to 30 March 2020 or until the fund is fully allocated § ‘Long-stop’ date for repayment of loan (with interest) is by 31 March 2025 § The fund supports the Government’s forthcoming ‘Right to Build’ requirement on LAs to hold a register of demand for custom build; and to have regard to that demand in carrying out their planning, housing, land disposal and regeneration functions.

CME: how it works? § Promoted locally and nationally: Ø Engagement with local partners, trade bodies and intermediaries Ø Engagement with SMEs and other developers Ø Media briefings § Local support from HCA to support prospective bidders § Bids can be made through the HCA Partner Portal at: https: //partners. hcaonline. org. uk/ (Note: from 1 April 2015 onwards bids received for the Greater Manchester area will be forwarded to the Greater Manchester Combined Authority). § Further advice and support available via servicedplots@hca. gsi. gov. uk § Bidding guidance available online www. gov. uk/government/publications/custom-build-serviced-plots-loanfund

Any questions?