Strategic Real Estate (L3)

Question 1

What are the different funding structures?
(submission L1)

Answer 1

Equity finance (forward funded).
Debt finance.

Question 2

What are the different debt structures?
(submission L1)

Answer 2

Senior debt (first level of borrowing and takes precedence)
Mezzanine funding is additional debt (paid back second)

Question 3

What is strategic real estate?
(submission L1)

Answer 3

It’s ensuring all assets within a portfolio are as efficient and profitable as they can be.

Question 4

Why did you approach seven agents for the managing agent tender at Canning Town? (submission L2)

Answer 4

It’s important to show the range the market has to offer and it was agreed in the scope. In this tender two dropped out so only reviewed five ITT questionnaires. Ultimately three were taken to interview.

Question 5

What is a SWOT analysis?
(submission L2)

Answer 5

Strength, weakness, opportunity and threat analysis

Question 6

Give examples of a SWOT analysis in a tender response?
(submission L2)

Answer 6

Strength - Customer service, staff with hospitality experience and good track record with high-end scheme residents.

Weakness - Fees were not the cheapest

Opportunity - ‘Lifestyle concierge’ who would be able to offer more than off the shelf service. eg. partnering with local businesses.

Threat - Outsourced their H&S, with new legislation on the Building Safety Act its important for their PM’s to be trained on this.

Question 7

What is a joint venture?
(submission L2)

Answer 7

A deal between multiple parties to work together and combine resources to develop a real estate project.

Question 8

What are some potential challenges of private and public partnerships?
(submission L2)

Answer 8

Procurement process in local authorities can be lengthy.
Difference in goals for the scheme (developer most interested in profit etc).

Question 9

What is a Community Development Trust?
(submission L2)

Answer 9

CDT’s are community owned and led organisations, providing a service that aims to regenerating their local area, such as managing community buildings or improving the environment.

Question 10

How do you set up the Community Development Trust?
(submission L2)

Answer 10

Normally register as a company limited by guarantee but can also register as a charity. The board is made up from representatives from the public.

Question 11

What are the benefits of a Community Development Trust?
(submission L2)

Answer 11

Looks after the communities long term interests.
Brings the community together socially.
Can provide skills and workshops to the community.
Environmental benefits - many look after the area in a sustainable way.
Charity Commission

Question 12

Can you name some successful CDT examples?
(submission L2)

Answer 12

Hackney Wick and Fish Island
- Support a critical local eco-system of cultural and community activities that provide enterprise, jobs and skills opportunities for local enterprise and residents.
- Secured ownership of, or long-term leases on, current and future community and cultural assets.

Question 13

Name some initiatives a CDT can do?
(submission L2)

Answer 13

1. Save local cultural assets
2. Public realm strategy
3. Creative housing report
4. Waste research
5. Re-use hub
6. Young sustainable people program

Question 14

What is a design for management report?
(submission L3)

Answer 14

It’s a report that considers the scheme from an operational design perspective. Specifically how to design it to make it is as efficient as possible to operate.

Question 15

What did you advise in the design for management report?
(submission L3)

Answer 15

I advised the podium courtyard should have addressable access control and limiting hours from 10pm-6am (to ensure residents were not woken up by noise in surrounding flats)

I advised as the access ramp to the carpark was single lane that the client consider safety measures such as a traffic light system or convex mirrors to avoid collisions.

Question 16

Define Build to Rent.
(submission L3)

Answer 16

Purpose-built housing designed for rent rather than sale. Schemes usually offer longer tenancy agreements and are often professionally managed by the owner or operator.

Question 17

What is going on in the Build to Rent market right now.
(submission L3)

Answer 17

• Investment is still increasing but not at the rate you would expect as a lot of investors are struggling with scheme viability.
• SFH housing investment has increased.
• Lettings market demand is starting to even out to pre-covid rates.
• The rental increases we have seen in recent years aren’t sustainable due to affordability to we are seeing a shift in the market.

Question 18

Please speak about the opportunities and threats in the student accommodation market in Brighton.
(submission L3)

Answer 18

Opportunities
Surging Demand (2 universities and expensive housing means more renters) and Limited Supply (Lack of land availability, stringent planning regulations, and a focus on short-term tourist rentals)
Threats
Development viability - land, planning, costs, etc
For students: Affordability issues, displacement, and potential homelessness.

Question 19

Speak about the BTR market in Brighton.
(submission L3)

Answer 19

The market in Brighton is relatively undeveloped. At the time of writing the report there were two live BTR schemes with less than 10 in the pipeline.

Question 20

Talk me through the advice you provided in your Brighton Market Report
(submission L3)