1. Jonathan Goring Managing Director - Lovell
Partnership Models
Jonathan Goring
Managing Director - Lovell

2. Housing-led regeneration 6 new mixed tenure developments
Lovell Today £m
2016
Average capital employed1
111
Revenue
433
Operating profit2
13.4
Housing-led regeneration
Pipeline
value
£764m
884
mixed tenure
homes built 7
1060
employees
Order
book 33 14
regional offices
national partnerships
£445m
6 new mixed tenure developments
mixed tenure schemes
1 Capital employed is calculated as total assets (excluding goodwill, intangibles and cash/overdraft) less total liabilities
2 Adjusted

3. This is what we do… Hull Ings, Hull
Mixed Tenure | Value £78m | 2012 – 2022 | 678 homes

4. This is what we do… The Mill, Cardiff
Mixed Tenure | Value £110m | 2016 – 2022 | 800 homes

5. This is what we do… Lymington Mews, Dagenham
Mixed Tenure | Value £102m | 2014 – 2018 | 416 homes

6. This is what we do… Miles Platting, Manchester
Mixed Tenure | Value £135m | 2006 – 2023 | 700 homes

7. This is what we do… King’s Lynn, Norfolk
Mixed Tenure | Value £80m | 2016 – 2022 | 600 homes

8. This is what we do… Beacon Barracks, Stafford
Contracting | Contract Value £52m | 2015 – 2016 | 357 homes delivered in under 12 months

9. What we do… Mixed tenure
Via development agreements with Housing Associations and Local Authorities
Schemes include housing built for open market sale and contracted housing for rent or other tenures
Primary performance metric is Return on Capital Employed (ROCE)
Contracting
Via construction contracts with Housing Associations and Local authorities
Contracts for new build social housing, refurbishment and planned maintenance
Primary performance metric is % margin
1 For the year ended 31 December 2016

10. How we do it – mixed tenure

11. Who we do it with…

12. Looking ahead

13. Market Drivers
c250,000 houses required per annum – still a severe shortfall
Housing very high on political agenda for all parties
Forward funding available for private and social rental
£10bn Central Government funds for mixed tenure; partnership, infrastructure and accelerated delivery
Schemes are increasing in size – Local Authorities under pressure to address all asset alternatives
Homes & Communities Agency and Local Authorities underwriting risk

14. Order book and pipeline
Order book and secured development pipeline total value of £1.2bn1
In addition, preferred bidder on six new mixed tenure developments with estimated value c£360m
Significant level of ongoing dialogue on partnering with HAs/LAs
Total value of £1.2bn
Note: Order book represents the share of future revenue that will be derived from signed contracts. The Pipeline represents the share of the development value of the open market housing part of secured mixed tenure schemes.
1 As at 31/12/16

15. Mixed tenure partnership developments
Currently 57 mixed tenure sites across 33 schemes
at various stages of construction and sales
average of 102 open market units per scheme
average site duration of 33 months
Mixed tenure sites
2017
2018
2019
2020
2021
2022
2023

16. Future success factors
Accelerated delivery – off site manufacturing and track record secures partner status with HCA
Unlocking Government land through investment in data to develop land-led partnerships
Technology platform addresses current buying patterns and secures early sales
Accessible homes target First Time Buyers

17. Questions Thank you