Welcome to your weekly round-up of residential stories from EG.
The biggest developers in build-to-rent are fighting a profit tax that seeks to raise £2bn for cladding remediation, which they deem to be “unfair and nonsensical”.
Announcing the Residential Property Developer Tax in the House of Commons in February, Robert Jenrick said the mechanism would “make the industry pay for the faults of the past”. But the BTR industry argues that it pays for its own remediation and does not derive a profit in the same way, meaning any tax will be a dry tax based on a subjective valuation and notional profit.
The British Property Federation has written to the Treasury, calling for the sector to be excluded from the tax. In a letter seen by EG, the BPF said: “We are deeply concerned that this tax could stymie the potential of this sector to continue to grow and contribute to our housing supply.”
Looming levies haven’t deterred a number of new movers in BTR – with commitments from John Lewis, which has confirmed plans to develop 10,000 homes over a decade, and Lloyds Bank’s new Citra Living business, with a slightly tamer target of 400 this year, doubling to 800 next year.
The launch comes hot on the heels of Australian bank Macquarie’s sector debut – aiming to deploy £1bn via new business Goodstone Living. Macquarie has teamed up with BTR veterans Martin Bellinger and Darryl Flay. In this interview, Macquarie’s European real estate co-head Dana Gibson and Bellinger lay out the strategy for the new business.
It’s been a week of launches, with another notable player joining the market. The UK’s largest independent student operator, Homes for Students, has teamed up with Navana Property Group to launch adviser VervLife, with Katherine Rose leading the business as managing director.
In other people news, M&G Real Estate has appointed APG’s Martijn Vos to lead its living funds in continental Europe; single family housing platform Immo Capital has brought on board Oxford’s real estate strategist Andrew Baum as it seeks to deploy €1.2bn in Europe; and Manchester City Council has shipped in Wigan’s Becca Heron to take over development, following the departure of Louise Wyman earlier this year.
After weeks of grabbing the headlines with fund after fund, and new site acquisitions, Greystar announced a surprise expansion – with a $1.2bn (£870m) joint venture with CPPIB to invest in life science office and lab space in major US markets.
EG has it on good authority that life sciences is not currently on the European agenda. But, as Wes Fuller says: “Never say never”. Check out our interview with Greystar Europe’s co-heads Mark Allnutt and Angela Russell for more on that strategy.
And finally, EG’s deputy editor Tim Burke debates the moral opinions of money in Bristol. Or rather, he is channelling film director Abraham Polonsky’s musings as he explores rising demand for South West resi.
Listen to the podcast, view the magazine, download the app (iOS and Android), and read on for more of the week’s headlines.
Headlines
Knight Dragon ramps up Greenwich Peninsula with resi plans
Westminster readies for 1,200 homes at controversial estate regen
Plans in for Selfridges owner’s co-living debut
Ilke launches UK’s first mainstream net zero homes
Legal & General acquires £40m affordable Kent scheme
Urban Splash invests £26m from rental fund
Brum tower gets £30m boost
Unite reservations climb to 83%
Countryside to split off private housebuilding business
Persimmon revenue tops pre-pandemic levels
Vistry reports strong demand as sales rise
Redrow forecasts turnover rise on ‘very strong’ order book
MJ Gleeson sells record number of homes
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