National H Home melessness Property F Fund AG AGM th July 2 18 - - PowerPoint PPT Presentation
National H Home melessness Property F Fund AG AGM th July 2 18 th 18 2017 Agenda 1) 1) Introductions & & Admini nistrative Matters - In Introductions & & Di Disclosure of of Co Conflicts ts - AG AGM Pr
th July 2
1) 1) Introductions & & Admini nistrative Matters
Introductions & & Di Disclosure of
Conflicts ts
AGM Pr Procedures & Rules 2) 2) Revie iew of
NHPF Performance to to Da Date
Investment O Objective
Fund Stru ructure re
Current t Investo tors
Performance to Date
Nominations Ta Target
Portfolio Valuation 3) O ) Out utlook f for NH NHPF
Social Impact
Related Fut utur ure Ini nitiatives 4) 4) AO AOB
Go Governin ing document: Limited Partnership Agreement (Schedule 2) At Attendees: The Partnership (ie Limited Partners and the General Partner) Meet Meetings: s: first AGM within 18 months, no more than 15 months between subsequent Pu Purpose: se: (i) provision of information only (not direction or advice); and (ii) voting on resolutions Quor Quorum um: two Partners, present or by proxy, one of whom the General Partner Ch Chair irman: General Partner representative, unless resolutions to be passed, in which case Limited Partner representative; minutes signed by Chairperson are record of decisions Vo Voting: by show of hands unless poll requested, each Partner voting its number of Capital Contributions Pa Passi ssing of
ution
Invest in Properties Ta Target fu fund nd size of f £6 £60m m - £1 £100m Cu Curre rrently £3 £32.5 mi million (first t close e Dec Dec 15, , sec econd close e Feb eb 2017) Bu Building a UK UK wi wide po portfolio (e (excluding Lo London) In Initial ar areas as of
Bristol, Ox Oxfo ford & Mi Milton Ke Keynes Cu Curre rrently co commit itted to to 18 187 pr prope perties of
an in init itia ial ta target of
195 Targeting IRR of 6% 2 elemen elements to to th the to tota tal re return rn ov
the 7 ye year fu fund nd
Cash yie yield of
fund nd is is in invested (o (over 2 ye years)
Share in in ca capit ital ap appreciat ation at at th the en end of
the fu fund nd de delivering to tota tal IR IRR of
around nd 6% Cu Curre rrent ne net in init itia ial yie yield of
versus in init itia ial ta target of
for fi first th three ar areas as, and and fl floor
(except pt MK MK wh where fl floor lo lower ered ed to to 2.5% by by sp speci cial re resolution) Ex Expanding in into ot
areas as wh which is is ex expec ected ed to to en enhance ne net in init itia ial yie yield cl close ser to to fu fund nd ta target of
Impact To To br break do down ba barriers in in ac access to to Pr Private Re Rented Se Sect ctor fo for th those on
the jo journey ou
homelessne ness 1. 1. Im Improving housi sing opportunities s 2. 2. Pr Progressi ssing towards s work 3. 3. Im Improving resi silience ce against st homelessn ssness ss Fo Four urth social impact report for RLPF F (London) showing continue ued progress towards th this goal. The first t social imp mpact t report t for NHPF will be available July/Au August t 2017.
* * Cu Current nt data ta as of
ne 2017
In Investment Us Use of pro prope pert rty (5 y (5 year l lease) No Nomination of te tenants ts & payment t
acement fee
Predictable pi pipe peline of su suitabl ble pro prope pert rties s for r th the Ch Charity ty Partn tner (St t Mu Mungo go’s in existi ting g areas)
Standard lease in place with Charity Partner taking on risk of bad debts / voids etc.
Investors ob
ain a a yie ield an and cap apit ital al ap appreciat iation ion on
ir in investment
Local Au Authori rities s who invest st also so gain ri rights s to nominate tenants s into the se serv rvice
Identical s structure t to s successful a award w winning R RLP LPF (Lo (London f fund) w ) which i is n now d distributing pro profits
£30m
£2.5m £0.5m £5m First Close (Dec 2015) Second Close (Feb 2017) £5m £5m £15m £1m = £32.5m portfolio £0.5m
Project S Snowball L LLP
£250k £200k
High N Net W Worths
£125k
KPI 18 months trading (Dec 2015 - June 2017) Total number of properties approved by the Investment Committee (IC) 296 (109 units lost before or after instructing solicitors - 37% attrition rate in line with
vendor withdrawal) Total fund committed £33.4m (103% of current fund size) Calculated over-commitment of funds to allow for anticipated attrition rate Number of properties 187 (143 acquired / 44 conveyancing) Nominations to Local Authorities (LA’s) 133 (versus target of 143)
Committed Acquisitions £ Current Property Type (all areas)
Nominations Agr greement betwe ween St Mu Mungo go’s and each Local Auth thority ty
Target t to d deliver 1 195 p 5 properties (B (Bristol 7 75 / O 5 / Oxford 50 50 / M / MK 7 70)
18 month period from May 2016 16 to Oc October 2017 17
Slightly behind in all areas in first 3 mo months s (May to July 2016) due to co conveyanci cing proce cess (now re rectified). A A sl slight dip p acro ross ss the Ch Christm tmas period due to to con
actor
an and sol
icit itor
avail ailab abil ilit ity.
Currentl tly at t 133 nominati tions versus ta targe get t 143.
Currentl tly on tr track to to deliver 93% of no nomina nations ns to LAs prior to raising ng fu furth ther investm tment t (Bristo tol 71/ Oxfo ford 46 46/ MK 65)
20 40 60 80 100 120 140 160
Local,Authority,Nominations
Target Actual * * Cu Current nt data ta as of
ne 2017
annual Fund valuation
Fund, valuation methodology has moved to a more industry standard “Market Value” approach taking into account leases in place at the valuation
discount to the equivalent “Vacant Possession” valuation at the same date
£1m higher than purchase price
equating to purchase price after taking into account the discount outlined above
costs are £1.95m or 9% book value with transaction costs representing £850k or 4%
£18.7 £21.5 £19.7 £18.7 £0.0 £5.0 £10.0 £15.0 £20.0 £25.0 2016/17
Purchase Price Book Value Vacant Posession Market Value
What we measure ? 1. Improving housing opportunities 2. Progressing towards work 3. Improving resilience against homelessness
When do we report on this ?
which will cover the financial year 2016/17
report last summer, and fourth due July/ August 2017
Up Up until the end of the financial year 2017 17, the NHP HPF ha has provided ho housing ng for 102 02 ho househo holds, of wh whom two wo have since moved on. Of the remaining hundred, forty-si six are re in Bri rist stol, twenty-fo four in Mi Milto ton Keynes and th thirty ty in Oxfo ford. To To d date (e (end o
Jun une 2 2017), ), t this n num umber h has i increased t to 1 133 h hous uses a and 3 313 t tenants.
Tenants housed
Temporary Accommodation (77) Private Rent (8) Other (7) Bed & Breakfast / Hotel (1) Family (7)
Routes to NHPF properties 77% of tenants were previously in temporary accommodation. This figure is lower in Oxford (63%), compared to 83% in the other two areas.
Da Data t taken f from f first N NHPF S Social Im Impact R Report
1) Of Offer ering stable e and suitable e accommodation to one e hundred ed househ eholds, most
gle mot
g children mov
g from
unsui uitable co conditions, typica cally in temp mporary ac accommodat ation 2) 2) He Help lping th the new te tenants ts to to settl ttle in well and d susta tain th their te
te tenants ts have eith ther conti tinued d to to sta tay in th the property ty or moved d on positi tively in th the first t year of th the Fu Fund nd 3) 3) In Inte tensive su support given en to ten enants s to hel elp them em set settle e in, , with 1700 actions s re recorde rded d on tenant monitori ring systems by the Real Lettings team last year. r.
1) 1) Ar Around a a quar arter of tenan ants report being in rent ar arrear ars, rising to 47% in Milton Ke
roximate tely half of th these are re minor r arre rrears
rrears rs are re du due to to a ra range
uding g tenants in wor
g person
fr from previ vious accommodation n and nd delays in n Uni Unive versal Credit or ho housing ng bene nefi fit. Re Real L l Lettings s staff w work c k clo losely ly w with t tenants r regarding t their a arrears a and n new ad administrat ative processes ar are now being implemented. 2) 2) Si Single e paren ents s face e additional challen enges es to em employmen ent due e to thei eir caring re responsibilities, the costs of childc dcare re and, d, in some cases, the availability of help fr from fa family and nd fr friend nds, particularly if f the hey ha have ve move ved some distanc nce to a ne new w ho
needs to take account nt of f the hese cha halleng nges, inc ncluding ng wha what type
gement is likely to
3) 3) So Some e ten enants s have e problem ems s with nei eighbours, s, esp espec ecially when en they ey live e in close se pr proximity in a bl
ne neighb hbours and nd the he same nu number ha have ve ha had ne neighb hbour complaint nts, wi with h most of f th these in th the last t six month
d be te teeth thing tr troubles th that t will settl ttle do
roblems should d be monito tore red; d; if th the tre trend d conti tinues it t would d be co conce cerning.
Income LH LHA fr freeze ze lo looks ks se set to to co continue un until 20 2018-9. Th This sh should no not ef effec ect pro projected re return rns as as 0% an annual al in increas ase wa was in in th the fi financial mo model.
Costs ts wi will ri rise se in in li line wi with ac acquis isit ition ions bu but re rema main co
For ex example, e, se serv rvice ch charge av averag age is is £56 560 ag again ainst UK UK av averag age of
863 fo for ol
stock. Fire Risk
Following th the tr tragi gic ev even ents at at Gr Grenfell ll To Tower, Re Resonance an and St
Mungo go’s ar are re reviewing al all fi fire ri risk sk as assessments fo for NH NHPF pro prope pert rties an and wh where ne necessary ha have fu furth ther ti tigh ghte tened th the pro process ss fo for en ensuring th these ar are up up to to da date.
Internally, al all un units ar are re refurbi rbish shed to to a hi high he health an and sa safety st standard rd wi with; CO CO2 det detec ectors ar are fi fitte tted, 30 30 mi minute fi fire do doors, el elec ectric ho hobs ra rather th than ga gas, no no be bedro rooms ms le leading of
from ki kitchens, ga gas an and el elec ectricity ce certifica cates an and re regular ch check cks. Other Initiatives
Opportunities ar are be being so sought to to pu purc rchase se fr freeholds fo for im improv
block ma manageme ment to to re reduce co costs an and op
up fu furth ther in incom
generati tion op
itie ies.
Warwick Es Estates es, a na nationw nwide pro prope pert rty ma manageme ment co company ha have be been in instructed to to im improv
ma manageme ment of
buildings wh where ma maintenance is is th the re respo sponsi sibi bility of
the le lessees ra rather th than th the la landlo lord th through gh a se serv rvice ch charge.
1) NATIONAL HOMELESSNESS PROPERTY FUND (NHPF): launched Dec 2015
London (initially Bristol, Oxford, Milton Keynes)
period and do third close after summer to expand to new areas 2) REAL LETTINGS PROPERTY FUND 2 (RLPF2): launched January 2017
3) FOLLOW ON VEHICLE: 2018
non London areas
2 2 bedroom flat in in Ston
atfor
Mi Milto ton Keynes 2 2 bedroom flat in in Wantage, Ox Oxford 1 1 bedroom flat in Wantage, Ox Oxford 2 2 bedroom flat in in Warmley, Br Bristol 2 2 bedroom flat in in Neath Hil ill, Mil ilton Key Keynes es 2 2 bedroom flat in in Bi Bishopsworth, Br Bristol
Kay O Orlopp Deployment Manager
kay.orlopp@resonance.ltd.uk
Simo mon C Chisholm Investment Director
simon.chisholm@resonance.ltd.uk
Connell G Grogan Portfolio Manager
john.williams@resonance.ltd.uk
Resonance i is c commi mmitted t to s supporting t the d developme ment o
f a robust a and a accessible s social i investme ment c capital ma market www.resonance.ltd.uk # #resonanceltd 0 0345 0 0043432 John W Williams ms Senior Investment Manager
john.williams@resonance.ltd.uk