Investment House will forward fund smaller P.R.S. schemes

"We tend to work across all of the major cities in the UK where we have a population of circa 200k +. What drives our evaluation is the granular location and proximity to the centre. Where the value of the investment is higher than the sales market this causes some problems and so from a numbers point we wouldn’t invest.

We like to be first movers rather than coming in at the tail end. 

Our schemes must have outside space, usually quadrangle areas of landscaping and paving. 

Focus on 1 and 2 beds primarily with a mix of other units. A small programme of houses. 

May consider existing stock as long as it’s off market. 

Our price point for our customers is circa £800 to £900  for 1 bed and £1,000 to £1,400 for 2 bed. Size of units no less 425 sqft and 2 beds no less 575 sqft. The majority of the 2 beds in a scheme should be 2 bedroom, 2 bathroom including en-suite. Lot size no less than 100 and if it’s 100 in a new area it will need to be considered in light of other local opportunities. 

We forward fund with and without a coupon and we can forward commit albeit we like to control the quality of the product and the problem FC is that it’s almost turnkey. In forward fund we may want to specify a contractor from our framework which helps us to get the debt in place quickly. We fund our projects with equity and the the debt piece follows."