Private Rented Sector
The case for PRS
The UK residential market is subject to rapid transformation. Top priority for renters is affordability, then location. Due to the historical absence of institutional housing developers in the UK, there is no housing stock available for institutional investment. Large scale professional housing development is a young but rapidly growing industry in the UK.
Our investment strategy
Cording is focused on the lower to mid mainstream tier of the Private Rented Sector, in areas that people need to live in rather than ‘aspire’ to live in. We take advantage of solid opportunities in outer London and in selected regional cities – where affordability is key.
We pursue a fully integrated management approach with our service ranging end-to-end from development and acquisition, asset and property management to leasing and sales – ensuring the ‘gross to net’ leakage on income is managed efficiently and delivering better performance to our investors. Cording influences the development specification to ensure it is fit for purpose.
Housing developed by Cording includes value add features that really make a difference to tenants e.g. caged storage. We also focus on the durability and sustainability of the product e.g. pod bathrooms and centralized plumbing.
‘Saffron Court’ in Nottingham
Cording’s first development under this scheme started in November 2017. The development, called Saffron Court, is located near Nottingham’s central train station and close to the city’s centre. There is planning consent for a mix of 350 studio, one and two-bed apartments and 130 car parking spaces. Cording has entered into a forward-funding agreement with the Cassidy Group and Regency Project Management Limited for this development. Project costs exceed £40 million.
Over 300,000 people live in Nottingham, of whom 48% are under the age of 29, including a thriving student population. According to the ONS, the local economy, supported by its expanding healthcare and biotech sectors, will grow much stronger than the national average.
‘Merlin Works’ in Leicester
The build-to-rent development at the Merlin Works site in the Waterside regeneration area in Leicester comprises more than 380 one and two-bed apartments. Construction will commence on site in November 2018 and is expected to be completed in autumn 2020. The development has been assembled by the developer, CODE, and will be built by Winvic Construction in its second built-to-rent project with Cording.
Charlie Miller, Director of Residential Acquisitions at Cording, said: “Leicester is a fantastic location for the fund’s first build-to-rent investment. It is a vibrant city which features prominently in the East Midlands with a high demand for affordable new build-to-rent accommodation in line with the fund’s strategy. Leicester’s population is forecast to grow at a rate in excess of the national average, while the current supply of rental stock in Leicester is limited and relatively dated”.
Our team on the ground
In 2016, Cording Real Estate Group launched its UK Private Rented Sector (PRS) platform with the acquisition of specialist PRS company, CapRes. CapRes’ founders, Tim Holden and Charlie Miller, who have a combined 30 years’ experience in the PRS sector, head up Cording’s new PRS platform. Tim Holden and Charlie Miller have been involved in directly acquiring, developing and managing numerous schemes. Between them, they have acquired and managed over £1 billion of new development in over 25,000 residential plots.