Case Study

London & Devonshire Trust

21st July 2017

Summary

PRSim’s Data & Consultancy service helped London & Devonshire Trust (LDT) explore the relative strengths and weaknesses of three potential PRS development sites in the South West. Taking full advantage of the LSL Property Group’s national data network, PRSim conducted in-depth viability studies to assess each site’s suitability.

Context

LDT is a private property company delivering asset management, property development and placemaking across London and the South West of England, with a focus on developing PRS schemes of between 150 – 400 units specifically in the South West. As such, three possible sites were identified in Exeter, Bristol and Plymouth.

LDT needed a PRS partner with true plc credentials, as well as access to a wide range of data to guide their decision making process. LDT appointed PRSim to provide detailed reports on each site, delivering valuable insight into the viability and feasibility of the potential schemes.

Our Service

For each site we undertook a comprehensive viability report that included the following:

  • Site Analysis

Utilising LSL’s Land & New Homes division, we delved into the each of the proposed sites to assess suitability for development; access and proximity to the city centre and transport links, crime levels, planning issues, flood risks etc.

  • Demographic Review

Drawing on our vast data network, we undertook a detailed review of each location and its local demographic to better understand the tenant base and potential demand. From average earnings to major employers in the region, local rents and sale values to planned infrastructure changes.

  • Configuration Advice

Working alongside the appointed architect, we reviewed each site’s scheme drawings to advise upon optimal layout, unit mix, choice of amenities and communal space to help maximise operational management efficiencies.

  • Financial Planning

We carried out detailed financial analysis to identify gross to net rental yield and leakage, and provide thorough estimates for the running and maintenance costs of each scheme.

Outcome

After much analysis only the Exeter site was found to be viable, LDT have now entered into further discussions with architects and planners to move this scheme forward. The reports produced have provided LDT with all the necessary information to state their case to potential funders and investors, and lay the groundwork for a successful project.

With a further three possible PRS sites identified in Exeter and PRSim now engaged as LDT’s go-to property services partner – watch this space!

Daniel Stephenson, Managing Director at London & Devonshire Trust, had the following to say:

The support of Katherine and her colleagues has proved invaluable – we continue to be impressed by their extensive knowledge, expertise and flexibility. I know the team is always on hand should we need them and that more importantly, their advice can always be relied upon. We’re hugely excited to see what the future holds for LDT in the PRS sector, and see PRSim playing a pivotal role in our success.