1. Regeneration Investment Organisation UKTI
Government Support to Major Regeneration Projects

2. Chair, RIO & UK Special Envoy for Sustainable Urbanisation - China
Sir Michael Bear
Chair, RIO & UK Special Envoy for Sustainable Urbanisation - China

3. UK Government Mandate for RIO
..“A new one-stop-shop has been set up (RIO) to help international investors identify and fund regeneration opportunities in the UK.
These projects won’t just mean new jobs in London or the South East - but right across the whole country”
The Prime Minister at the Lord Mayor’s Banquet
(11th November 2013).

4. UK Government Mandate
“We have a really strong supply of regeneration projects in the UK - over £100 billion in capital value. But currently the offer is fragmented with delays and it’s difficult for investors to navigate. The Regeneration Investment Organisation provides a great opportunity to announce a radical new approach to helping boost investment into the UK”.
“RIO acts as the “honest broker” and provides a fantastic way of helping investors find and invest into a credible range of UK wide pipeline of regeneration opportunities. It does this by having a dedicated regional team and development experts, set project criteria in determining an “investible project”, and by working with UK partners through a high level advisory board. It will therefore build on the success of the investment secured at Battersea Power Station, by creating an easier point of entry for investors. By creating stronger links with local and national partners, RIO will help to remove some of the barriers faced by partners to project delivery, which will enable sustainable jobs and growth across the regions within the UK”.
Sir Michael Bear, RIO Chairman

5. 4
UKTI: Who we are …
UK Trade and Invest Strategic Relations and Investment Team:
High level relationships with the largest institutional investors globally
Access to UK based expertise and across Whitehall
Access to global network of UK Embassies
Supporting key UK regeneration projects. Aim to promote growth and jobs
Under Lord Livingston
Team of industry Experts/FCO/BIS

6. Why Invest in Regeneration in the UK?8
Why Invest in Regeneration in the UK?
Building communities and accelerating jobs and growth
Pipeline could create significant jobs and positively impact on GDP
Opportunities are spread across major economic zones in UK
High quality and diverse range of opportunities
Over £100bn worth of projects, many of which are “shovel ready” 60%
Strong private-sector support
A range of equity ticket sizes
Equity, debt or mezzanine investment options
Islamic financing structures are available
Large base of international developers with local expertise, successful track-records and strong balance sheets
UK ranked in the top 3 in the European Union for dealing with construction permits1
A range of government incentives - planning/business rates
High socio-economic
impact
High quality pipeline
Flexible investment
options
Strong developer base
& government support
1. Source: 2012 World Bank Ease of Doing Business

7. Government Unlocking Growth7
Government Unlocking Growth
Removing Barriers to Growth – RIO helps to unlock growth – the how will be dealt with later
Making strategic investments to provide vital infrastructure –working with our network of UK Embassies
Ease of Permits – World Bank Ease of Doing Business 2013 ranked UK as the second best major economy G7 for dealing with construction permits
National Planning Framework - fast track economic and housing appeals – 88% major planning applications are granted in 6 months

8. Decentralising and Providing Incentives for Growth
39 Local Enterprise Partnerships – businesses & councils coming together to help determine local priorities
24 Enterprise Zones – specific areas where a combination of financial incentives and reduced planning restrictions apply
City Deals – these cities will negotiate deals with government with new powers for greater responsibility and how public money is being spent – first wave 8 Core Cities & Wave 2 involves 20 Cities
Regional Growth Fund a £3.2 bn fund supports eligible projects that are also raising private sector investment to create economic growth (round 6)
Local Growth Fund As part of Autumn Statement 2013 the Chancellor announced that £50m of the Local Growth Fund will provide targeted support
Private Rented Sector – a £1 bn fund to support development of private rented homes

9. 7
Growing Demand
Strong investor confidence in the UK and growing demand for UK projects
£1.13 Trillion firepower for the UK regeneration
Move away from trophy London assets to greater returns elsewhere
Recent successes:
London
£1bn in Royal Albert Docks - ABP China
£840m in 1 Nine Elms - Wanda (£90m purchase)
£8.4bn Battersea PowerStation – SP Setia (£400m purchase)
Outside London
£700m for residential development in Manchester Liverpool, Solihul and London

10. Chief Operating Officer RIO
Nahid Majid OBE
Chief Operating Officer RIO

11. Input and managed by local partners11
RIO Principles C
Input and managed by local partners B
Approved by industry A
Local
Authorities
City
Councils
LEPs
Devolved
Administrations
Regeneration – jobs and growth in the UK
Credible offer assessed by industry criteria – our PID Project Initiation Document
Transparency through our Advisory Board acting as the Honest Broker for industry and investors
RIO approved projects are assessed on project value, job creation and regional impact and planning status A: Shovel ready with planning
B: Early stage planning C: Concepts

12. RIO Advisory Board Government Industry, Finance & Commerce
Sir Howard Bernstein, Manchester City Council
Phillip Cox, Steven Quartermain, DCLG
Stephen Dance, HM Treasury
Damian Nussbaum and Michael Boyd, UKTI David Prout, Department for Transport - HS2
Industry, Finance & Commerce
Bill Oliver, St Modwen
Jonathan Harris, Macquarie
Duncan Sutherland, Sigma InPartnership
Jon Milward, Deloitte David Partridge, Argent
John Herbert, HSBC,
Regional Representation
Neil McIvor, Office of the First Minister and Deputy First Minister of Northern Ireland
Greg Ward, City of Edinburgh Council, Scotland
James Price, Welsh Directorate of Economy, Science and Transport
Urban Planning & Design
Peter Geraghty, Royal Town Planning Institute,
Sir Edward Lister, Greater London Authority,
Chris Murray, Core Cities
Michael Newey, Royal Institute of Chartered Surveyors
Michael Parkinson CBE, Liverpool University
Chaired By Sir Michael Bear

13. Delivery Model
Strong pipeline of credible projects backed by industry, championed by government - Supply Side confidence through our technical assessments Project Initiation Document PID
User-friendly online platform for promoting and showcasing projects
Build and maintain strong relationships with international investors understand the demand side
Utilisation of UKTI’s network of UK embassies and 270 posts globally
Intelligent matching of supply, assessed projects though an industry technical team PIDs and a demand audit of “investor asks”
Cross-Government Sounding Board and Expertise _ Quarterly reviews with the RIO Advisory Board - Risks managed and mitigated
Reactive  Proactive  Risk Mitigation  Delivery Model  Review & Success

14. Project Selection Criteria – PID Project Initiation Document13
Project Selection Criteria – PID Project Initiation Document
Background information: project, size, location & development partner
£100 million threshold – £3 plus billion (£50 million where substantial regional jobs will be created) invetsment scale
Market Demand - Appraisals
Economic – likely Jobs and growth/supply change
Key Timings. Messaging and transparency
Land assembly and stage of planning
Investment type – JV, developer partner, passive or active
Potential Commercial Returns

15. What we can offer Project Promoters?20
What we can offer Project Promoters?
Identifying key sites and packaging of proposals – capacity and scale
Defining type of investment opportunity – Joint Ventures, full acquisitions, developer partnerships
Assessment against industry and Government backed national criteria
Inclusion on the online RIO Project Pipeline and in the pitchbook
Reaching out internationally to raise profile – through overseas posts
Attracting/marketing inward investment – match making as the honest broker
Partnering with developers and investors
Sharing Learning and Best Practice
Continuous Dialogue through the UKTI team and RIO

16. Investor Portfolio and Asks17
Investor Portfolio and Asks
A range of investors and a range of requirements / investment type / risk appetite.
£100m + / project and scale
Clear commercial returns across a range of diverse finance options
Relationships JV and legacy
Skills transfer to home markets
Strategic positioning within a sector or market
Finance and developer partnerships
Interest shifting out of competitive London market
Central and Local Government support or incentives/guarantees/messaging and transparency
Publicity
Challenges:
Understanding and differentiating UK regions
Reaching the preferred project scale (£100m)
Project timings - Procurement, Regulations

17. Investor Asks
Q1 Which areas of the UK Regeneration space does the investor have an appetite for?
Greenfield | Brownfield Land | Projects with or without planning permission
Q2 Which sectors does the investor have an appetite to invest in?
Q3 What type of role does the investor seek?
Passive to active | Sole or Partnerships | Development | Joint venture to full acquisition
Q4 What is the Investors preferred project status?
‘shovel ready’ or ‘opportunity to shape concept’ | Long or short term investment.
Q5 What is the Investors preferred project scale?
Preferred GDV (Gross Development Value) of project, minimum GDV to be over £100M
Q6 What are the investors preferred locations? Across all of UK
Q7 What is the Investors previous track record?
Previous investments in the UK and Globally in Regeneration real estate sector
Q8 What are the target returns of the Investor?
Mandated returns the fund needs to secure from its Capital | Targets | Return on Capital (ROC)/Internal Rate of Return (IRR).

18. What we can offer Investors?19
What we can offer Investors?
Understanding key markets, regulatory regimes and investing in the UK
Help for overseas investors navigating routes to market in UK
Raising awareness of specific opportunities
Building relationships and legacy with all stakeholders to understand agendas, facilitate introductions and hold bilateral discussions
Unblock key investment obstacles in the UK & with Overseas Posts and UK Embassies

19. The RIO Project Pipeline - Online Portal
Dynamic online platform showcasing all RIO Projects actively seeking investment
Viewing by registered users only
Users prompted to submit enquiries to the RIO team for further follow-up

20. Our Achievements to Date & Going Forward
Strong partner relationships with private developers, LEPs and LA’s
Project pipeline totals £100bn GDV of projects (90% outside London) - potential 550,000 jobs. 
By asset class the projects break down by 90,000 residential units, 67m ft2 of Commercial space and 39m ft2 of industrial space. 
Supply Side: We have over 100 projects being assessed PIDs
Demand Side: A RIO Investor Strategy in Place – Priority Markets
Our ‘shovel ready’ (those actively looking for investment) projects currently total 38 with a value of £30bn and 170,000 potential jobs.
There are a number of active commercial dialogues and MOUs in place with over £10bn potential investment into the UK
Next Steps for RIO – RIO Local and Regeneration Investment Vehicle
Working alongside our expert partners will further enable RIO to support and unlock major regeneration projects across the UK

21. A One-Stop-Shop for Regeneration Projects in the UK