Ian Barnes Wates Residential Pushing Boundaries : Working in Partnership with RMBC The Rotherham Site Cluster Model Ian Barnes Wates Residential

About Wates The Wates Group, established 120 years ago, is one of the leading privately owned construction, development and property services businesses in the UK. It employs approximately 4,000 people and generated turnover of £1.53bn in 2016. Wates Residential, part of the Wates Group, is one of the UK's leading developers.  Operating across the UK it is focused on working with local authority and housing association partners in their local communities to build more and better homes.  Wates Residential is also a member of the Rotherham Pioneers, a programme to unite and develop business, organizations and individuals across the area to change perceptions of Rotherham and raise its profile. Wates has been involved in numerous projects for Rotherham over the years including the Borough’s Heating Energy Saving Scheme, the Breathing Space Project and a number of key Residential developments. 

Background The Council utilised HCA Delivery Partner Panel 2 for procurement The Council received 3 competitive developer offers Wates Residential selected on “Qualitative/Value” selection criteria Wates offering a Development Agency Model – new concept Wates tender accepted via the Council Cabinet Approval, granted in September 2016 Enabling works completed Planning Approval granted in March 2017 Cabinet approval granted for the implementation of the development programme in July 2017 Enabling works: site investigations, draft Development Agreement and works contracts etc

Concept A programme of housebuilding across 7 Council owned sites Increase the number of new homes built and making the best use of public land for residential development A new and innovative delivery route The Council retains ownership of the sites as the developer Works managed by one company – Wates Developer Agent model – Wates design, build and market the homes. Ordinarily only one viable site if delivered separately The Council funds all the development costs

Development Agency Model Retain all development surplus after payment of cost and margin The Council Sales Revenues Open Market Sales to Individuals Retain Affordable Units Sale of private units Design Team Build Contract Sales Contract A development agreement between the Council and Wates to deliver 217 units. Wates providing development services and expertise to maximise the Council’s returns. Construction Sales and Marketing Financial Planning Developer After Care Services Costs Project Balance Council Fees Construction Costs Marketing Costs. Project Completion Negative cash met by the Council Positive cash drawn by the Council to keep negative cash position to a minimum. Financial surplus Open-Market Sales The Council funding for Affordable Housing and Specialist Housing. Maximised Value for Money Revenues

Benefits for the Council: Housing growth Meeting specific housing needs Tenure diversification, ensuring greater choices for Rotherham’s residents Creating more sustainable communities A new and innovative delivery approach, which can be replicated Economic benefits, job creation and social value 217 new properties – more than double the numbers if delivered without the cluster approach: Achieves the Councils ambition to develop unviable sites for much needed housing New homes for specialist housing provision True Partnership Approach with collective Skill Base from all Partners The Council to retain control and influence over design / quality and rate of delivery The Council remains the land owner Wates manages the sales and marketing of open market homes on behalf of the client.

“Delivering the Promise” Driver Outcome Success of overall programme: Demonstration of what Rotherham Council and Wates can achieve Reputational gain National recognition Increased confidence in Rotherham Delivered on budget Happy council!! High quality and low maintenance End user satisfaction Improved health and wellbeing Reduced pressure on Council’s maintenance budgets Exemplar health and safety record Zero harm  Ensuring right tenure mix Housing needs met Diverse and sustainable communities Profit / value for money / revenue Re-investment of sales profit into future schemes Regeneration Employment and training opportunities More attractive neighbourhoods Stronger communities Model for future delivery Future projects / outputs Opportunity for individual development Huge learning curve for everyone  Contributions to Education & Green Space through S106 contributions Positive impact on community infrastructure (e.g. schools) Achieves the Councils ambition to develop unviable sites for much needed housing New homes for specialist housing provision True Partnership Approach with collective Skill Base from all Partners The Council to retain control and influence over design / quality and rate of delivery The Council remains the land owner Wates manages the sales and marketing of open market homes on behalf of the client.

Proposed Scheme

Proposed Scheme

Proposed Scheme – Braithwell Road

Specialist Housing 5 properties in total provided: MC4 – Conway Crescent – 1 Children's Services property for a foster care family and 2 Adult Services properties for those with autism or learning disabilities. MC7 – Shakespeare Drive – 2 Children's Services properties for foster care family and leaving care

Council Rent inc specialist* Tenure Mix 217 new properties – more than double the numbers if delivered without the cluster approach: Site Ref Address Open Market Sale Shared ownership Rent to Buy Council Rent inc specialist* Total units Comment MC1 Braithwell Rd, Maltby 83 15 98 MC2 Rother View Rd, Canklow 22 MC3 58 MC4 Conway Crescent, East Herringthorpe 4 6* 14 *Of which 3 are specialist MC5 Farnsworth Rd, East Herringthorpe 5 8 3 16 MC6 Gaitskell Close, Maltby MC7 Shakespeare Drive, Dinnington 5* *Of which 2 are specialist

Next Steps Phase 1 Phase 2 Phase 3 Phase Name Start Finish Tenure Phase 1 Braithwell Rd: 33 properties Autumn ‘17 Spring ‘19 33 OMS   Sales Commence Summer 2018 MC4 Conway Crescent 14 properties Autumn ‘17 Spring ‘19 4 S/O, 4 RtB and 6 Council rent (inc 3 specialist) MC5 Farnsworth Road 16 properties 5 S/O, 8 RtB and 3 Council rent MC6 Gaitskell Close 4 properties Spring ‘18 Autumn ‘18 4 Council rent – S106 Phase 2 MC1 Braithwell Road 30 properties Autumn ‘19 15 OMS 15 S/O apartments – S106 Sales Commence Summer 2019 MC7 Shakespeare Drive 5 properties 5 Council rent (inc .2 specialist) Phase 3 35 properties Summer ‘20 35 OMS Sales Commence Autumn 2019 MC2 and MC3 Canklow Rd. 80 properties Summer 20 80 Council Rent