Property developer seals £25m funding deal

MANCHESTER property developer PlaceFirst has agreed a £25m five-year debt funding deal with ESO Capital Group.

This cornerstone investment will support the company’s ambition of delivering 1,000 affordable private rental properties across the North by 2020 and will form part of a £90m development programme.
 
PlaceFirst established its reputation re-modelling empty properties to create aspirational, high quality rental homes aimed at working families.

It now works with local authorities and other organisations on the wholesale re-planning and transformation of neighbourhoods through both conversion and new build.
The funding will drive the next stage of the company’s growth and PlaceFirst MD, David Smith-Milne, said: “We are delighted to have secured this funding from ESO.

“PlaceFirst is creating a new benchmark for affordable private rental homes in urban areas.

“We are very proud of what we are delivering and the significant difference that we are making to communities.

“We are very pleased to have now attracted significant institutional investment to our business and to help finance our innovative developments in places like Accrington, Morecambe, Hartlepool and Liverpool.”

PlaceFirst is currently working in the Woodnook area of Accrington, converting over 200 empty ‘2-up 2-down’ terraces into a mix of two, three and four bedroom homes complemented by new public spaces.

The company has just launched the second phase of lettings at its West End One project in Morecambe, a 51-unit scheme that has brought former guesthouses back into use as family homes through innovative re-modelling.

The first phase release was launched earlier this year and sold out rapidly. This second phase includes a mix of one, two and three bedroom homes.

In the North East, work is about to start in Hartlepool to transform the Carr Street area. The scheme will bring over 100 properties back into use as spacious family homes set around a new garden square.

Most recently, PlaceFirst has entered into an exclusivity agreement with Liverpool City Council to develop a comprehensive masterplan for The Welsh Streets that will see over 300 empty homes brought back into use alongside new homes and complementary public realm.

With the new funding secured, PlaceFirst is now actively seeking other local authority partners across the Northern Powerhouse region to deliver more high quality family homes for the private rented market.

Smith-Milne said: “We have a target of 1,000 properties by 2020 and we are confident that this funding arrangement with ESO will help us achieve that objective.

“What we have discovered is a solution to the housing blight that still challenges many Northern towns and which can deliver not only quality new homes for people to rent but also a secure long term investment model for investors.”
 
David Christie, managing director and head of Real Estate at ESO Capital, said “The private rental sector in the UK is a fast evolving space with a growing emphasis on addressing the acute housing shortage which affects many families.

“Driven by affordability constraints and a shift in lifestyle preferences, we expect this segment to undergo a period of strong growth over the next five years.”

Head of new business & innovation, Martin Ellerby said: “We take an alternative approach to housing regeneration which delivers wholesale change at a speed and scale that makes a real difference.

“We are keen to work with more local authorities across the North to explore options for challenging neighbourhoods and help deliver high quality new housing and renewed community confidence.”