The two companies entered a strategic partnership in 2019 and are working together to set a new standard for development on the 19.3-acre site.
The development, which will be named Abbeville Park, includes a range of apartments and a mix of two, three and four-bedroom properties. The houses will be constructed using modern methods of construction, and all the homes built will provide affordable homes for rent and for sale through Shared Ownership.
Some 219 of the 307 homes will be manufactured offsite at ilke Homes’ factory, where the company uses artificial intelligence and digital design to create homes that are high-quality and energy-efficient – helping to keep residents’ bills down at a time when household costs are increasing.
Alongside the modular construction, three traditionally-built wheelchair accessible homes will be constructed, together with a further 86 apartments.
The partnership – which starts on-site in summer 2022 – expects the development to be completed by 2025. ilke Homes will be developing the site as part of its full turnkey offering. This means the modular housing firm is responsible for identifying and securing the land, gaining planning permissions, manufacturing the homes and developing the site.
An increasing number of local authorities and housing associations are turning to modern methods of construction (MMC) – which include modular housing – as a means of speeding up the delivery of much-needed housing.
Places for People’s group development director, Adrian Bohr, says: "The delivery of this new neighbourhood at Burgess Hill forms an integral part of Places for People’s strategy to deliver high-quality affordable homes which provide choice and meet people’s needs.”
“Working alongside partners such as ilke Homes allows us to combine expertise and supports our aim of creating well-designed, sustainable mixed-tenure communities.”
Places for People has a Strategic Partnership with Homes England. In 2018, the company was one of the first organisations to be awarded a grant from the Government’s national housing agency and will deliver circa 6,000 affordable homes over the next 10 years through this partnership.
Homes England has also been championing modular housing as a solution to speeding up the delivery of affordable housing across the UK. In 2020, the Government’s national housing agency announced that housing associations looking to sign deals under the new £11.5 billion Affordable Housing Programme will have to commit to using modern methods of construction (MMC) to deliver at least a quarter of their pipelines.
Bohr continues: “Abbeville Park will be developed as part of our strategic partnership with Homes England. This key partnership plays a pivotal role in the delivery of affordable housing, enabling us to further increase the provision of affordable homes across mixed-tenure neighbourhoods.”
“It is a testament of how well such collaborations work and how we can swiftly increase the creation of places in which everyone can live.”
Tom Heathcote, executive director of development at ilke Homes, adds: “This latest milestone demonstrates the strength of our long-standing relationship with Places for People.”
“The Burgess Hill scheme is the latest of our sites to achieve planning consent ready for a site started in the early Summer. The size of the opportunity marks a significant achievement for our modular housing offering, and points to yet another proof of concept moment for the business.
He concludes: “The new development will deliver a well-designed, sustainable, mix-tenure community that will provide residents with precision-built quality homes, open space and strong links to the town centre. We are very excited to deliver this brownfield regeneration scheme in partnership with Places for People and look forward to collaborating on future projects.”
New £5m apartment block to be developed in Taunton
Property investment platform Sourced Capital has announced the opening of its new £5,055,000 facility that will be used to support the development of 1 Tangier Central, Taunton into 55 apartments.
The former office building has planning permission to be converted into 55 self-contained residential units in a ‘highly desirable’ area where planning permission for residential development is notoriously hard to secure.
There has been huge demand from investors in the most recent loans launched by Sourced Capital, an established peer to peer platform that recently received direct authorisation from the Financial Conduct Authority (FCA).
The two most recent deals launched on the Sourced Capital investment platform were funded in record time. The first of these being a £2.1 million loan funded in just 24 hours, and the second being a £267,000 loan funded in less than 60 seconds.
The new facility represents the largest development opportunity to date that Sourced Capital has made available for funding via their peer to peer platform. The loan has a term of 18 months, with a loan to gross development value of 67%.
The loan is presented to qualifying investors with a targeted interest rate return of 12% per annum for investments over £20,000.
Derek Pratt, commercial director at Sourced Capital, comments: “With strong demand demonstrated from both established and new investors, we are very aware that many of our registered investors were unable to participate in the most recent loans presented to the platform due to the speed the opportunity was filled.”
“We are, therefore, delighted to be able to launch this new investment opportunity so soon after the last project and pleased that this will give more of our qualified investors the chance to back this increasingly popular asset class.”
Pratt says this next loan will help satisfy that growing demand from investors who are looking for rates of return that are capable of staying ahead of the rapidly increasing inflation rates.
Investors have achieved an average return approaching 12% per annum and, to date, there have been no losses on any loans, with 100% of all capital and all interest due returned to investors on loans which are no longer active.
Sourced Capital has returned over £15 million of capital and c.£2.6 million of interest to investors and funded more than £25 million of loans for property developments across the UK.
In addition to standard cash wallets, investors with Sourced Capital can also look to invest using an IFISA or Pension (SSAS or SIPP) to receive any interest returns tax-free.
Pratt was keen to stipulate that peer to peer lending is not a suitable investment for everyone and clearly stated that all investors on the Sourced Capital platform will need to demonstrate appropriateness.
Peer to Peer investments do not have protection from the Financial Services Compensation Scheme, so there is a risk of loss to investors’ capital, even with the loans benefitting from security.
He also reminded investors of the regulatory warning that past performance cannot be assumed to be a definite indicator of future returns.
“As a peer to peer platform, our clearly stated intention is to provide facilities that benefit both investors and borrowers,” Pratt continues. “We are lending to support a wide range of property transactions including ground-up developments, conversions, and refurbishments.”
“Whilst our sweet spot for lending is typically between £250,000 and £3 million, we always assess each proposal on its individual merits, with the current pipeline demonstrating our willingness to support quality transactions both above and below this range if they provide the right calibre of opportunities for our investors.”
Sourced Capital pledged it will continue to increase funding for viable residential property developments in the UK, and with a specific focus on more sustainable housing. It only funds projects below 70% loan-to-value.