Property People: Caddick and Brooks of Moda Living on PRS potential in the regions
“THERE’S an outcry for rental property products. We’ve identified the problem and come up with a solution to the problem,” said Johnny,Caddick of Moda Living, a joint venture between the Caddick Group and Generate Land specialising in the Private Rented Sector.
A true family business, Moda has some serious property pedigree behind it, including joint managing director Tony Brooks, chairman Paul Caddick and acquisitions manager Oscar Brooks.
And they are getting their wish, as Harrogate-based Moda has recently secured some major PRS developments in Liverpool, Birmingham and Glasgow.
The team have announced plans for a £154m PRS residential tower for Birmingham city centre on Broad Street. The 37-storey tower will contain 466 high-spec apartments as well as 30,000 sq ft of community space and 35,000 sq ft of retail, office and leisure space.
An £82m waterfront project in Liverpool followed hot on the heels of the Birmingham site – The Lexington. As part of the Peel Group’s £5.5bn Liverpool Waters regeneration plan, it will deliver a 305 apartment, 34 storey building.
Moda Living is also set to redevelop the former Strathclyde Police HQ in Glasgow into Scotland’s first major build to rent development. The £105m development of 365 apartments will deliver more than 20,000 sq ft of ancillary ground floor space including cafes, restaurants, workspace and gardens.
Moda Living is already working on a 520,000 sq ft site at Angel Gardens in Manchester, comprising of 428 apartments. It will include four restaurants, a cinema roomand a multi-functional roof terrace.
Johnny Caddick and Oscar Brooks and spoke to TheBusinessDesk.com after its most recent announcement.
Mr Brooks said: “There’s a lot of competition in London for PRS schemes and less so in the regions. We want to deliver proof of concept then focus further on London – there are so many nuances to this model and we want the version with all the bells and whistles on which provides long term value.”
Mr Caddick agreed. He said: “London is getting heated. There has only been piecemeal development in Leeds since 2008 so for nearly ten years there has been little development of new residential sites, which is pushing up rents.”
With major investors such as Hermes and M&G coming into the sector, the team at Moda Living may be onto a winner, and already have Apache Capital Investments on board, who support Moda Living’s PRS ambitions.
The problem with the UK’s rental system, apart from patchy supply and demand is that there’s been no “duty of care” with private landlords, said Mr Caddick. “The quality is getting worse,” he said.
“With PRS the amenities are great, what we want to build are sites with a sense of arrival, a safe environment and a community.
High end student property has been a precursor to the PRS sector, regularly outperforming on rents and becoming the accommodation of choice for investors.
“There are too many lower spec and lower quality accommodation for the mass market. But the funder believes in our model.”
With an £850m pipeline, Moda is on track. “There’s no other property firm in the North doing that.
“It’s still a very new concept and there’s no stock yet to prove it will work in Leeds.”
Moda’s vision for PRS is a bright one with integrated technology, concierges, cinema rooms, gyms are all part of a premium offering it is hoping to deliver.
But Mr Caddick and Mr Brooks are confident it will, and this region is soon to follow if this pair of Yorkshiremen have anything to do with it. While Leeds may be first on the list, York and Sheffield have potential too, they said.
Mr Brooks said: “There are weaker rents here than in Manchester and it’s an immature marketplace for us in Yorkshire, but it’s time to take that step.”
