Barratt London 19 May 2011 1
2 Mark Clare Group Chief Executive Dalston Square, Dalston Units: 553 GDV: £171m
3 Clive Fenton Executive Director, South St Andrews, Bromley by Bow Hortham Village Units:964 GDV:221m
4 Leading expertise in London • Over 30 years experience in the capital • Wealth of knowledge within the London team • Created more than 25,000 new homes • Broad product range from large urban regenerations to niche boutique residences • Long standing relationships with all key London stakeholders • Investing in attractive new land opportunities Optimistic about growth prospects for London business
5 Barratt London key statistics Financial year ended 30 June 2010 (1) Total completions 1,011 - Private 55% - Social 45% Total ASP £249.5k - Private ASP £322.4k - Social ASP £161.4k Revenue £261.4m Average net private reservations per site per week 1.38 Total employees 300 Notes: (1) Includes JV completions (FY2009/10: 4)
6 London requires a unique skill set • • Product Customer – Bespoke – Higher income – Technically complex – Investors – UK & overseas – High rise – Typically higher % social – High % regeneration – Community uses – Commercial • Capability – Planning – Health & Safety – Building standards – Stakeholders – Sales & marketing – PR
7 The London team Alastair Baird Regional MD Kevin Wotherspoon Sri Balakumaran Greg Tillotson Gary Patrick Operations Director Operations Director Regional Sales and Marketing (West) Development Director Director (East) West London East London Division Division
8 The London team presenting Alastair Baird Greg Tillotson Gary Patrick Regional Managing Director Regional Development Director Regional Sales Director • • • Joined Barratt in 1987 Joined Barratt in 1997 Joined Barratt in 1998 as an engineer as a Senior Planner as part exchange manager Over 60 years experience in the London residential market
9 London housing market - historic supply 180,000 18.0% 170,000 17.0% 160,000 16.0% 150,000 15.0% 140,000 14.0% Units 130,000 13.0% 120,000 12.0% 110,000 11.0% 100,000 10.0% 90,000 9.0% 80,000 8.0% 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Completions in England London as % of total England completions Source: Communities and Local Government (Feb 2011). Data based on fiscal years (April 1 – March 31)
10 London housing market - historic supply GLA targeting at least 33.4k additional homes across London p.a. 30.0 25.0 London completions – 000’ 20.0 15.0 10.0 5.0 0.0 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Private Social Source: Housing targets - The London Plan consultation draft replacement plan (October 2009). Completions – Communities and Local Government (Feb 2011) Data based on fiscal years (April 1 – March 31)
11 Staying close to the London plan….. Stonegrove – 11 th April 2011
12 London housing market – demand Key growth drivers • Latent demand from historic under-supply 2011E 2026E % change • Projected growth in households Population (1) 7.8m 8.6m +10% – Additional 500k households forecast by 2026 (+15%) Households (1) 3.3m 3.8m +15% • Forecast employment growth Employment (2) 4.8m 5.3m +10% • Significant investment in infrastructure Source: (1) GLA Intelligence Update, August 2010 (2) GLA Employment Projections, November 2099 – Transport – Cross Rail, Underground, Cycle network – Olympics, Thames Gateway Development
13 Historic pricing trends in London & the UK 900 800 Halifax House Price Index (rebased to 100) 700 600 500 400 300 200 100 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Greater London UK Source: Halifax House Price Index
14 Forecast pricing trends in London 8.0% 8.0% 7.5% 7.0% 6.0% 6.0% 6.0% 5.0% 5.0% 5.0% 4.0% 3.0% 3.0% 2.0% 1.5% 1.0% 0.0% 2012 (f) 2013 (f) 2014 (f) 2015 (f) UK London Source: Savills Q1 2011
15 Relative scale 4500 4,197 4000 3500 3000 2,549 2500 2000 1500 910 1000 695 216 500 0 Note: Estimated units under construction within greater London for period March – September 2010 Source: Drivers Jonas Deloitte Crane Survey, Winter 2010
16 Strategy for growth • Focused on value • Capability / capacity to deliver 2,000 homes p.a. • Working in partnership with selective blue chip organisations Exploiting strong track record / partnership credentials to access first class development opportunities and minimise cash lock-up
17 Altitude – Alie Street Alie Street, Aldgate Units: 235 GDV: £105m
18 Alastair Baird Regional Managing Director London The Lockhouse, Camden Hortham Village Units: 171 Alie Street, Aldgate, Tower Hamlets GDV: £67m
19 The London portfolio COMPLETED DEVELOPMENTS
20 The London portfolio UNDER CONSTRUCTION
21 The London portfolio FUTURE DEVELOPMENTS
22 End to end approach Sales, Land Technical Planning & Marketing & feasibility & design / cost Procurement Construction development Customer acquisition planning care Very strong expertise across all areas
23 Dalston Square Dalston Square site Map • Partnership with LDA, Hackney Borough Council and TFL Dalston Junction Station • Ocean House Technically very complex Dalston Square – New train station on site Dekker House – 4 towers to be built above Burke House Existing station Development Thomas Tower • Tight design brief – High social content in Phase 1 Sledge Tower You are here – Unusually large apartments Abraham House – Winter gardens Marley House – Public square Ruffin House – CHP requirements – Commercial use Wonder House
24 Dalston Square LB of Hackney and Land source TFL Acquisition date Nov-07 Total units 553 Total GDV £170.8m Social content 11% Build start Nov-07 Total reservations (1) 67% Private ASP £308k Private revenue per sq/ft £396 (1) Private reservations to date
25 Dalston Square July 2010
26 Dalston Square Nov 2010
27 Dalston delivery team Project Director Jez Adams Commercial Technical Project Manager Manager Manager Keith May Christian Ged Jones Mathews-Jones Site Manager Site Manager Technical Surveyors Site Manager Site Manager (Mechanical (Engineer) Co-ordinator Nick Stoner Andrew Weaver Glen Liversage & Electric) Naison Moyana Steve Daley Erlinda Abraham Don Weston Assistant Site Assistant Site Assistant Site Manager Manager Manager Jamie Tye Mo Jovied Ed Delaney
28 What do we build in London? • Complete product range from very large urban regenerations to niche high value developments • Depth of expertise allows us to do this • Pursue most attractive land opportunities – not constrained by development type • Opportunistic • Balanced portfolio • Manage risk
29 Product range • Urban regeneration • Typical schemes • Niche, higher value schemes
30 Urban regeneration Barrier Point, Royal Docks, Newham Units: 252 St Andrews, Bromley-by-Bow
31 Urban regeneration Visage, Swiss Cottage Units: 166 GDV: £97m St Andrews, Bromley-by-Bow
32 Urban regeneration Renaissance, Lewisham Units: 788 GDV: £155m St Andrews, Bromley-by-Bow
33 Urban regeneration Great West Quarter, Brentford Units: 801 GDV: £ 265m St Andrews, Bromley-by-Bow
34 Maple Quays – Canada Water Southwark Land source Council/British Land Acquisition date Dec-07 Total units 900 Total GDV £267m Social content 26% Build start May-08 Total reservations (1) 314 Private ASP £330k Private revenue per sq/ft £515 Sales rate 2.4/week (1) Private reservations to date
35 Typical schemes • Approximately: – 2 years timeframe – Mainly residential – Technically less complex • Schemes designed for target customer St Andrews, Bromley-by-Bow – Typically, professionals working in central London
36 Typical schemes Kennington Park Square Units: 214 GDV: £44m Maple Quays, Canada Water
37 Typical schemes Maple Quays, Canada Water Oyster Wharf. Battersea Units: 155 GDV: £65m
38 Typical schemes Oyster Wharf The Lockhouse, Camden Units: 171 GDV: £67m Maple Quays, Canada Water
39 Putney Square – Wandsworth South Thames Land source College Acquisition date Mar-06 Total units 214 Total GDV £85m Social content 25% Build start Nov-09 Total reservations (1) 138 Private ASP £467k Private revenue per sq/ft £698 Sales rate 1.7/week (1) Private reservations to date
40 Niche, higher value schemes Oyster Wharf Allingham Court, Hampstead Units: 12 GDV: £65m Maple Quays, Canada Water
41 Niche, high value schemes Oyster Wharf Rochester Row, Westminster Units: 51 GDV: £41m Putney Square, Putney Maple Quays, Canada Water Tatchbrook Triangle, Pimlico
42 Horseferry Land source HM Court Services Exchange date Jan-08 Total units 144 Total GDV £113m Social content 0% Build start Oct-11 Private ASP £783k Private revenue per sq/ft £1,021
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