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

2. 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. 

3. 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

4. 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

5. 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

6. 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.

7. “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.

8. Proposed Scheme

9. Proposed Scheme

10. Proposed Scheme – Braithwell Road

11. 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

12. 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

13. 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