3. HIF 1 Success HIF 1 complete with the model performing well
Considerable experience has been gained and lessons learnt, by both the Council and the Pension Fund
The sales of the homes has progressed well and demand has been strong across all sites with properties being released on a phased basis
Demand has also been strong for the rental properties
Pension Fund is keen to work with the Council again…

4. HIF 2 objectives Build more homes with greater control of development
Create a financial return
Share the return from day 1
Build homes that are affordable to households on average incomes
Use the Matrix brand

5. Investor Soft Market Testing
To find out what the financial market would offer in terms of an investment structure - several large institutional investors were contacted and discussions took place with 4 organisations
Establish what kind of model the market would be interested in developing with the Council
Along with the expected investment returns for their financial models
To ensure the best possible investment return for the Council, along with sufficient control over the lifecycle of the model

6. Soft Market Testing – Outcomes
The HIF 2 proposal - not of sufficient scale
The return required by some investors was higher than that required by GMPF under their proposed model
Partnership model not fully realised – at the concept stage
Lower return rates for the Council
In some cases investors not interested in the Council holding the site as an investment (want to pay the value of the site at day one)