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

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3. Why did we do it? Housing Strategy 2008 Market downturn
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

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

6. 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
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