Our model has a two-pronged approach. Not only do we source land opportunities for ourselves and our key clients, we also have the capability of providing a funding stream for the acquisition of land directly on behalf of our developer partners. We then work in partnership with them to progress the technical and planning due-diligence needed to make the project ready for immediate use.
Crucially, we can also move quickly. Our culture is entrepreneurial, and once a suitable opportunity is identified we move quickly and decisively to tailor a deal to suit all parties.
Early in the due diligence process we configure the optimum funding stream.
Depending on the profile of a project (whether it be an option, a conditional contract, a joint venture or an outright unconditional purchase), funding may include a combination of shareholder funding, third party investment, recycled capital, loans by third parties or bank funding.
Property Capital has access to the required funding level for any sized project provided it is deemed to fit the right risk profile (whether planning or technical) for the business. We are able to make quick, informed decisions to commit to a project and take it forward.
Our key client base lies in the volume speculative house building sector. Since the availability of land is one of the keys to mobilising house building in the volumes targeted by government, we are well placed to maximise the considerable opportunities that are on offer to all house builders.
In addition, commentators agree that the UK is showing signs of recovery in the market in respect of both land transactions and property sales, so growth is inevitable. However, risk and payment profile will remain key considerations for the house building industry for years to come. Property Capital will remove technical and planning risks from the equation and may facilitate deferred payment structures for onward sales wherever possible. This partnering approach will take full advantage of a clear gap in the marketplace.
By acquiring the right sites in the right locations, with a clearly thought-through exit strategy in partnership with the end user, Property Capital is in a strong position in the market place.
Our key aim for the next few years of trading is simply explained: we will focus on turning our land assets through the planning system and completing on our exits, typically within a 12-24 month cycle, with land sale profits reinvested into future opportunities.
A significant number of brownfield sites are being sold on an unconditional basis. This is driven by companies and landowners who are looking to receive instant capital returns for their land, or who need to remove environmental liabilities.
Developers use Property Capital’s purchasing power to acquire sites that they’re unable to bid for on an unconditional basis, due to the risk and timescales involved. When such a development opportunity is identified by a developer, Property Capital after full assessment, will bid for the site and enter into an agreement to sell it to that company, if the bid is successful.
Following the acquisition of land, Property Capital PLC will progress a remediation strategy for the site. In parallel, we would jointly persue a detailed planning approval and once this has been successfully achieved, the sale of the site to the developer can be completed and development started.
In this way Property Capital PLC can be a valuable partner to developers, at a time when there is substantial requirement for new housing in the UK, and the need to develop brownfield land is greater than ever.