New Residential Funding Criteria

Please see below, detailed criteria from an overseas fund just entering the UK marketplace.

RESIDENTIAL BUILD TO RENT REQUIREMENT

- Multifamily housing

- Lot size - between £30-£50m 

- Typically 100-300 units

- NIY of greater than 4.25%

- Targeting regional locations such as Nottingham, Leeds, Sheffield, Newcastle, Edinburgh and outer M25 locations

- IRR 5.5%-6%

- Strong ESG credentials

- Operational / Forward Funding / Forward Commitment

RESIDENTIAL STUDENT REQUIREMENT

- Strong regional locations with Russell Group Universities

- Lot size – Between £15M - £50M

- Gross yield of greater than 6%

- Operational / Forward Funding / Forward Commitment

- 3.5% direct return

RESIDENTIAL LAND REQUIREMENT

- Strong regional locations – preferably commuter locations within proximity to railway stations
- Pre (preferably) or post planning opportunities
- Consider short term income or vacant possession of office buildings
- Preferably with a car park
- Redundant industrial or tertiary sites misplaced in town centres
- Scale – ability to deliver between 100 to 350 units
- Land value or existing use value of £1 - £10M