1. West of England Growth & Delivery Event - 13th October 2010 Business Development Workshop James GibsonRegional Development Director Simon ParksRegional Head of Development

2. Purpose of workshop To consider ways in which we can deliver the holistic housing aspirations of the West of England Partnership: Increased supply of housing – private and affordable Sustainable growth High quality Efficiency Wider economic benefits What can we collectively do better to achieve these aspirations? Aim – workshop feedback to WoE Partnership

3. An RP’s perspective Changes to Government and planning system Reduction in available HCA investment Limited ‘oven ready’ land opportunities Suppressed values - viability issues Limited mortgage availability/difficult lender constraints Limited private finance for some RP’s? Market conditions have ‘forced’ RP’s to take one of two routes: 1.Take foot off accelerator 2.Think more innovatively Some Sovereign examples:

4. Joint Ventures….. Joint Venture with Linden Homes 50:50 investment to develop 100+ homes for outright sale Establishment of LLP company Sovereign represented as Board Members on LLP Decisions made jointly to maximise return Loan arrangements concluded to loan to LLP Driver is to maximise profit Sovereign will reinvest its profit into more affordable housing

5. Better use of private finance… Utilising existing cash position commercial loan to be made to National Star College College wish to construct specialist student accommodation block Sovereign to finance development and project manage construction National Star College to lease building for 30yr term with options to acquire Monies secured by way of charge over land Commercial return over and above borrowing rate Surplus for reinvestment

6. Cross subsidy models… Mount Pleasant Farm Farm acquired for speculative housing development Planning submitted for 70 home development 23 affordable dwellings to be constructed in accordance with South Gloucestershire policy Profit from sale of speculative houses to be used for the development of further affordable dwellings 60 acres of farm land also generating income

7. Commercial investment models… Broad Quay, Bristol 71 Serviced apartments Let on a purely commercial basis Full repairing lease with Serviced Apartment provider Administration sale acquired within 4 weeks of offer acceptance Acquired to generate profit Profit to be used to generate additional affordable housing Potential for market rent or outright sale

8. Mixed tenure investment models… Wichelstowe Village centre Mixed retail, speculative and affordable development New satellite office created Retail units to be let on long lease basis to national foodstore and local businesses Speculative dwellings to be let on market rent basis Affordable dwellings for affordable rent Attractive to the developer as whole lot is sold off plan

9. QUESTIONS & DISCUSSION TIME!

10. Question 1 – Current issues If you’re a developer (or agent/consultant): What are the barriers to delivery of housing? Can RP’s help you overcome these? Are you approaching your business differently i.e. diversifying? If so what are you doing? If you’re an RP: What are the barriers to delivery of affordable housing? What can you do to help developers? Are you approaching your business differently i.e. diversifying? If so what are you doing? If you’re a Local Authority: What can you do to assist?

11. Question 2 – Partnership working If you’re a developer (or agent/consultant): Can you see the benefit of early involvement with RP’s? As a business do you/would you/could you take this approach? What are the barriers/obstacles? If you’re an RP: Can you see the benefit of early involvement with developers? As a business do you/would you/could you take this approach? What are the barriers/obstacles? If you’re a Local Authority: Would you welcome this approach? What can you do to help?

12. Question 3 – Financial capacity/risk If you’re a developer (or agent/consultant): Is there a benefit in working with/using RP’s capacity? Would this help your capacity go further? Is this worth exploring? If you’re an RP: Do you have ‘sufficient’ current capacity to take this approach? Will this change going forward? Would you have the appetite for this approach? If you’re a Local Authority: Can you bring anything to the table?

13. Question 4 – Joint Ventures If you’re a developer (or agent/consultant): Can you see the benefit of JV’s with RP’s? Would you consider doing one? Are you doing any? What are the barriers/drawbacks for you? If you’re an RP: Can you see the benefit of JV’s with developers? Would you consider doing one? Are you doing any? What are the barriers/drawbacks for you? If you’re a Local Authority: Can you bring anything to the table?

14. Question 5 – Wider Economic Benefits If you’re a developer (or agent/consultant): Could you work with the RP to develop training and job opportunities for local people in the construction phase? If you’re an RP: Could you see (or develop) longer term job opportunities in (e.g.): Maintenance? Security? Small scale enterprise? If you’re a local authority: Could you facilitate this through: Your own resource? Use of Section 106 agreements? WEP employment and skills team?

15. Question 6 – Next steps? Collectively: Where do we go from here? (Housing Delivery Panel & LEP) How can we work with the WoE Partnership and Local Authorities to agree next steps? How can we work with the WoE Partnership and Local Authorities to agree the right partners? Individually what can you offer to take opportunities forward? How is this going to be done? (realistic & deliverable)

16. Thank you