Resi wrap: BTR in the Arc

The University of Cambridge is to see the first purpose-built rental housing in the UK at its Eddington site, after selecting Apache Capital’s Present Made for a 10-acre parcel.

Present Made will develop a £160m single family housing scheme (pictured) of 373 homes in a debut for the £1.6bn platform.

The scheme, revealed by EG, will see a mix of flats and three and four-bedroom houses, designed by Jo Cowen Architects and built using modern methods of construction, in a net-zero carbon scheme. Richard Jackson, managing director and co-founder of Apache Capital, told EG: “For us to be able to launch a flagship development on university-owned land and to sit alongside them and hopefully form the basis for a longer-term partnership and other developments in the future was very attractive.”

“There is a strong demographic,” he added. “We also felt that growth of businesses on the back of that infrastructure would continue, and as there was further inward migration of people there would be more demand for rent, which is structurally growing in the UK anyway.”

The investment comes the same week that Blackstone’s BioMed Realty committed £850m to develop 800,000 sq ft in new life science space at two sites at Cambridge International Technology Park. TV streaming company Roku this week signed the largest office letting in Cambridge for five years. The two deals seem to prove Jackson’s point. For further on Cambridge, this week’s EG includes a dive into the region with a look at how the pandemic has transformed development and now trends in residential.

Those trends will likely include short stays, or so JLL hopes. A new trend in staycations has seen the agent launch new platform Short Stays – a rival to Airbnb, but offering the luxury accommodation of giants Greystar, Blackstone and CA Ventures. The venture with Lavanda will start with 1,000 locations in the UK, but aims to grow to 35,000 cities globally.

It’s also good news for the BTR sector, which has come under pressure this week – with imminent taxes that could threaten future development viability. After campaigning for BTR exclusion from the upcoming developer profit tax, the sector is still unsure if it will be forced to pay. The British Property Federation has written to new housing secretary Michael Gove (and secretary of state for levelling up) in a last plea ahead of a decision expected in the next few weeks.

The letter said: “Building safety is an absolute priority for all of us in real estate, and the build-to-rent sector has led the way when it comes to funding remediation work and ensuring that tenants are both safe and protected from any financial impact. It would be extremely penal to suggest that these building owners and investors now be taxed additionally to enable remedial works to be funded within the build-to-sell sector.”

And, finally, Civitas Social Housing has retaliated after attacks from activist short-seller ShadowFall, branding recent accusations inaccurate, incorrect and erroneous.

ShadowFall has targeted a campaign against the £600m REIT, arguing that it has failed to disclose full details of deals where it retained an interest. The investor published a 22-page open letter detailing its accusations, with concerns over Civitas’s deals, partnerships and viability. The REIT has refuted the claims and is working up a detailed response expected in the coming days.

View the magazine, download the app (iOS and Android) and read on for more of the week’s headlines:

The rise and fall of The Collective

The EG Interview: Ingka Centres’ Cindy Andersen on Ikea’s city future

Ashford council wins injunction against landlord who harrassed council staff

Swansea selects Urban Splash for £750m regen

Millions of homes unsellable due to flood risk

Northern mills could provide 42,000 homes

Harworth’s landmark Ironbridge scheme approved

Asda wins unanimous backing for 2,000-flat Isle of Dogs scheme

Green light for Canary Wharf’s 3.5m sq ft North Quay

Harrow shutters Kodak PD plans

Plans in for £175m Titanic BTR scheme