Morgan Sindall Group Plc · LSE:MGNS
Morgan Sindall — Corporate Update (July 2012)
37 slides from Morgan Sindall's corporate update, Jul 3, 2012
Slide 1: Regeneration
Regeneration. Morgan Sindall Group plc Presenta4on to City Analysts – 3 July 2012
Slide 2: Reviving a community
Reviving a community • Stewart Davenport – Managing Director − What regenera4on means to Lovell • Bruce Lister – Regenera4on Manager − Regenera4on in the North West • Nigel Yates – Regional Director − Added value in the community
Slide 3: What regeneration means to Lovell
What regenera4on means to Lovell Stewart Davenport Managing Director, Lovell Partnerships
Slide 4: What regeneration means to Lovell
What regenera4on means to Lovell • We rejuvenate run down and derelict estates by building homes for ‒ open market sale ‒ shared ownership • Building and refurbishing homes for ‒ social rent ‒ affordable rent ‒ market rent • Adding value and leaving a las4ng legacy
Slide 5: Traditional procurement
Tradi4onal procurement LAND INVITES BIGGEST START ON SITE OWNER BIDS CHEQUE WINS 6-‐24 MONTHS? BIGGEST CHEQUE Gross Development value VARIABLE Less Build cost FIXED Development expenses FIXED Profit VARIABLE Equals Land value FIXED EXAMPLE £ £ GDV 20m The market drops 10% 18m Build Cost 11m FIXED 11
Slide 6: So what's different about regeneration?
So what’s different about regenera4on? • The investment profile; we control the land, we don’t own it, we only pay for it by plot comple4on, by phase, by draw down • The method of procurement • The stakeholders; local authori4es, public bodies, HCA, registered providers • Added value; community engage
Slide 7: Regeneration – not solely a price driven process
Regenera4on – not solely a price driven process PROCUREMENT OJEU PQQ INVITATION TO BID BODY NEGOTIATE SUBMISSION Local authority Government body etc Price and quality LONG-‐TERM FINAL PRESENTATION DEVELOPMENT NEGOTIATION AGREEMENT AND AWARD EXAMPLE £ £ GDV 20m The market drops 10% 18m Build Cost 11
Slide 8: Benefits of a Development Agreement
Benefits of a Development Agreement It defines • mechanism for valuing future land at current market condi4ons • method and quan4ty of draw down • market collapse and associated relief It allows for • prevailing market condi4ons • flexibility of build and mix • con4nuous build • grant funding • variabl
Slide 9: Benefits of regeneration
Benefits of regenera4on • Scale -‐ long-‐term projects, create an environment, variable terms • Flexible tenure to suit market condi4ons • Government funding -‐ regenera4on akracts grant funding, Kickstart -‐ £716m, Get Britain Building fund -‐ £570m, Regional Growth Fund -‐ £1.4bn Growing Plac
Slide 10: Regeneration in the North West
Regenera4on in the North West Bruce Lister Regenera4on Manager, Lovell Partnerships
Slide 11: Current North West regeneration projects
Current North West regenera4on projects • Seven major regenera4on projects under contract • 1,200 plots delivered to date • 2,400 plots in pipeline ‒ to be drawn down in phases ‒ all on residual land value terms ‒ to be built out at the pace of sales ‒ most with mixed-‐tenure opportuni4es for contr
Slide 12: Toxteth Street, Openshaw (Manchester)
Toxteth Street, Openshaw (Manchester) • 730 obsolete ‘back-‐of-‐pavement’ terraced houses • 30% owner-‐occupied/40% rented/30% void • Lovell selected through design compe44on and tendered margin • Development Agreement with Manchester City Council signed August 2007 July -‐2012
Slide 13: Toxteth Street, Openshaw (Manchester)
Toxteth Street, Openshaw (Manchester) • ‘Text book’ consulta4on exercise • Masterplan -‐ 432 new homes in four phases • Phase 1:114 new homes: 96 completed, last 18 in pipeline • Rehoused 25 ‘displaced’ owner occupiers and 50 RSL tenants
Slide 14: Sevenoaks, Rock Ferry (Wirral)
Sevenoaks, Rock Ferry (Wirral) • Demoli4on of 300 low-‐demand terraced houses and redundant industrial premises • Circa 40 exis4ng households to be rehoused (predominantly RSL tenants) • Development Agreement: Wirral Council and Lovell -‐ April 2008 • Extensive consulta4on exercise
Slide 15: Sevenoaks, Rock Ferry (Wirral)
Sevenoaks, Rock Ferry (Wirral) • Masterplan -‐ 283 new houses • All to CfSH Level 3 (plus 10% on-‐site renewables) • Phase 1:114 mixed tenure houses • Appren4ces appointed from local area • 44% local labour employed • 40% locally-‐based supply chain
Slide 16: Church Road, Tranmere (Wirral)
Church Road, Tranmere (Wirral) • Series of cleared infill sites • Boarded up retail premises and low-‐demand housing • Development Agreement: Wirral Council and Lovell -‐ October 2009
Slide 17: Church Road, Tranmere (Wirral)
Church Road, Tranmere (Wirral) • Masterplan -‐ 228 new houses and 10,000 sq u of retail development • 56 houses built with HCA ‘Kickstart’ funding -‐ completed summer 2011 • Neighbourhood retail development currently under construc4on
Slide 18: Raffles Estate (Carlisle)
Raffles Estate (Carlisle) • Cleared site of former hard-‐to-‐let council houses • Development Agreement with Carlisle City Council -‐ May 2004
Slide 19: Raffles Estate (Carlisle)
Raffles Estate (Carlisle) • 475 new plots in six phases • 226 houses completed, 249 houses remaining • Mostly open market, but includes 49 houses to local social landlords • Achieved transforma4onal change; established Raffles as neighbourhood for owner-‐occupa4on
Slide 20: Bowlee Park, Langley (Rochdale)
Bowlee Park, Langley (Rochdale) • Stock transfer of former Manchester overspill estate to Riverside Group • Lovell appointed as Riverside’s Development Partner -‐ November 2002 • Development Agreement extended by further 10 years -‐ June 2012
Slide 21: Bowlee Park, Langley (Rochdale)
Bowlee Park, Langley (Rochdale) • 605 new homes being developed on six large infill sites • 318 new homes completed, principally for owner-‐occupa4on • HCA ‘Kickstart’ funding obtained in 2010 to fund 20 ‘social housing’ units and 30 for open market sale • Further 237 plots remaining, to be built to
Slide 22: Miles Platting (Manchester)
Miles Plawng (Manchester) • 30-‐year PFI concession awarded to Renaissance Miles Plawng Ltd (RMPL) in March 2007 • RMPL Consor4um comprises: − Morgan Sindall Investments Ltd − Adactus Housing Group − Mill Asset Group / IIC • Senior debt provider/lender -‐ Dexia Credit Control
Slide 23: Miles Platting (Manchester)
Miles Plawng (Manchester) • Lovell roleworks contractor to RMPL, delivering: − 1,523 fully refurbished exis4ng homes − 250 obsolete proper4es demolished − 62 new homes for social rent − Construc4on of a new community facility − 1,000 new homes for open market sale − 6 new/refurbished parks and play
Slide 24: Miles Platting (Manchester)
Miles Plawng (Manchester) • Investment amounts to: − £81m of property repairs in Years 1-‐5 − c.£135m of open market housing development from years 4-‐17+ • Delivering transforma4onal change: − Reversal of ‘sink estate’ reputa4on − Adactus now maintaining a wai4ng list − Genera4ng posi4ve market i
Slide 25: Beswick (Manchester)
Beswick (Manchester) • Development Agreement: Manchester City Council and Lovell -‐ December 2003 • Former council homes and ‘back-‐of-‐pavement’ terraces -‐ 12.8ha • Mixed-‐tenure development of 550 new homes: − 97 for social housing reprovision − 453 for open market sale
Slide 26: Beswick (Manchester)
Beswick (Manchester) • Project awarded through design compe44on and tendered margin • Sustainability -‐ MMC off-‐site fabrica4on • Sustainability -‐ Eco Homes to CfSH Level 3, MVHR • Open book appraisal/residual land values were secondary • Contemporary design/marketed as affordable alterna4ve to c
Slide 27: Beswick (Manchester)
Beswick (Manchester) • Developed in three Phases (each on separate residual land value appraisal): − Phase 1: 147 units -‐ completed 2007 − Phase 2: 226 units -‐ 183 completed, 43 remaining − Phase 3: 177 units -‐ to be drawn down on demand • No obliga4on to proceed un4l phase delivers margin hur
Slide 28: Added value in the community
Added value in the community Nigel Yates Regional Director, Lovell Partnerships
Slide 29: Added value
Added value Communi4es Consulta4on Training Educa4on Lovell legacy
Slide 30: Communities
Communi4es Giving a voice to residents Working with elderly residents Celebra4ng successful refurbishment with tenants
Slide 31: Communities
Communi4es Mentoring young people Inspiring young minds in Manchester
Slide 32: Consultation
Consulta4on Engaging the community Consul4ng with residents in North Wales
Slide 33: Training and employment
Training and employment Providing work and training opportuni4es Building careers through appren4ceships Professional roles through employing management trainees
Slide 34: Training and employment
Training and employment Appren4ceships and long-‐term employment HCA Academy Award won though recruitment of 18 Miles Plawng residents
Slide 35: Education
Educa4on Changing percep4on of the industry Helping young people consider careers in North Wales
Slide 36: Lovell legacy
Lovell legacy Making a difference Crea4ng Primary School planters in Toxteth Pitching in for BBC DIY SOS in Liverpool
Slide 37: Morgan Sindall Group plc contact details
Morgan Sindall Group plc, Kent House, 14-‐17 Market Place, London W1W 8AJ Tel: 020 7307 9200 [email protected] @morgansindall morgansindall.com