Tag Archives: thames valley housing

Fizzy Living picks up £32.4m refinancing

Private rented sector landlord Fizzy Living has agreed a refinancing of its four current projects in its portfolio. Pricoa Mortgage Capital has agreed the £32.4m package that will fund its current live projects, freeing up capital to further grow the business.

The deal shows how strong the demand is from funders, for well let private rented homes. “This portfolio offers a compelling combination of excellent quality assets, good locations and stellar sponsorship,” said Aaron Knight, director of European debt obligations at Pricoa Mortgage Capital. “For the foreseeable future, our appetite for portfolios like this one will exceed the supply and we look forward to seeing more opportunities in this space and to the expansion of our relationship with Fizzy over the coming years.”

Julian Turner, deputy finance director and head of treasury at Fizzy’s parent company Thames Valley Housing, revealed that the deal provides low rate finance over the medium term: “With interest rates at historic lows, this debt funding has been put in place at under 3% over ten years. This is made possible as Fizzy has already established a solid track record and is generating performance that not only satisfies but attracts the senior debt market. Its portfolio is operating at optimum level in a market that is poised for further substantial growth.”

Geeta Nanda, chief executive of TVH, commented, “This is another great first for Fizzy and Thames Valley Housing. Having first shown that PRS is deliverable in the UK, this demonstrates that the strength of the Fizzy model is extremely attractive to equity and third party debt investors alike. We are delighted to have conducted this debt package with Pricoa Mortgage Capital who are a new player in the market, and hope that it will be the beginning of a long term partnership.

It was in March 2014 that Fizzy agreed a £200m funding package from Silver Arrow, part of the Abu Dhabi Investment Authority, to support its expansion. To date, the brand has flats to rent at sites in Poplar, Epsom, Canning Town and Stepney Green.

Mayor signs off two major new rental projects

London mayor Boris Johnson has selected developers for two residential sites in east London, with 40% of the proposed new homes destined for private market rental.

The sites at Silvertown Way and Pontoon Dock will deliver around 1,200 new homes, of which 480 will be for private rental. The land is owned by the Greater London Authority, and is part of a tranche of sites taken on by the GLA in 2012, with the aim of bringing them into use quickly.

“These schemes will be built faster than conventional methods, by providing a US-style private rented model alongside traditional tenures,” said mayor Johnson. “It’s important for London’s economy to support the growing rental market, providing top quality homes and management, together with the reassurance of longer term tenancy agreements. I also want to entice more institutional investors to come forward and invest in quality homes for Londoners.”

The developments will include a restriction to ensure that the private rented homes cannot be sold off for a minimum period of ten years.

The larger of the two sites, at Silvertown Way in Canning Town, will accommodate 1,000 homes. It has been awarded to Galliford Try, working with Opal Land, itself a joint venture between Thames Valley Housing Association and Linden Homes. The project split will include 347 private rented homes, 232 for affordable rent, and 154 for affordable home ownership, along with 86,000 sq ft of commercial space. Thames Valley’s PRS specialist Fizzy Living is to manage the private rented homes within the development.

AA Pontoon Dock 1

Homes for rental at Pontoon Dock have been designed by Assael Architecture

At Pontoon Dock the development will include 137 private rented homes, 42 affordable rented and 31 shared ownership homes on a site next to Thames Barrier park. Here, the project will be delivered by Bouygues Development, Grainger and funding partner the London Pensions Fund Authority.

The Pontoon Dock project will be majority funded by the LPFA. Said the authority’s CEO Susan Martin: “Investing directly in the redevelopment of the Pontoon Dock site will not only deliver essential housing for London, but will also provide LPFA with the attractive, liability matching, long-term returns we need to provide for our pensioners.”