REGENCY PROJECT MANAGEMENT
CLUB FINANCING OF DEVELOPMENT PROJECTS IN GREAT BRITAIN

Club Financing of Development Projects in the UK

Regency Project Management is a London-based company specializing on club investments in UK real estate development projects. The company is focused on the following real estate sectors: affordable housing, residential development, purpose built student accommodation (PBSA), private rented sector (PRS), and hotels.

The portfolio with Gross Development Value above GBP 600 million. includes more than 25 projects across 20 cities in England, such as Cambridge, Canterbury, Eton, Leicester, Liverpool, Manchester, Nottingham, Slough, Weymouth etc.

We consider it as a club investment rather than a fund. All our investors are free to choose their projects, and the way they wish to invest. The investor’s profit depends exclusively on the project chosen.

Regency Project Management is an Authorised Representative of Dolfin Financial (UK) Ltd which is authorised and regulated by Financial Conduct Authority (FCA).

Strategy:

  • We focus on projects spurred by growing mass demand of the average-income population: affordable housing, residential development, purpose built student accommodation (PBSA), private rented sector (PRS), and hotels.
  • Geography: various cities across the UK, including London suburbs that are backed by robust transportation infrastructure.
  • Targeted project term: 1 – 3 years.
  • Exit strategy:
    • Sales to institutional investors (including forward sale). Forward sale is a transaction involving an investor intending to purchase and receive title to a newly developed property once the development is completed.
    • Sales via local real estate agencies.
25+

Projects

20

Cities

£600+ M

Gross Development Value

4

Exits

Our approach is defined by the following trends:

Residential Real Estate & Private Rented Sector(PRS)

  • The rate of population growth in the UK was consistently above housing stock growth since 2007 with excess demand of 0.2-0.3%, which means a need for around 250,000 net additions to the housing stock per year.
  • The private rented sector has seen a whopping increase in proportion of total households, having more than doubled since 2002, reaching record high of 20% of the housing stock in the UK in 2017.
  • Population growth, net migration and a mobile younger workforce have all contributed to increased demand for homes in the PRS. Growth has also been driven by the combination of rising house prices, stagnant wages and tighter mortgage lending, which have made home ownership increasingly unaffordable.

Purpose Build Student Accommodation(PBSA)

  • According to the Knight Frank real estate agency, in university cities, on average, 50% of students cannot find housing on university campuses or private accommodation.
  • CBRE statistics show that student occupancy is usually around 99%, which means guaranteed rental income for investors.
  • The number of full-time students studying in the UK in 2016/17 reached 1.8M young people. 77.5% of all students are UK residents. In 2016/17, 6.7% of students were from other European Union (EU) countries and the remaining 15.8% came from countries outside the EU: China, US, Hong Kong, India, Malaysia, etc.

Hotels

  • In 2017 there was a record number of visits to the Uk – 39.2 million people. The number of visits has been increasing each year since 2012.
  • Domestic tourism in England is the key driver of high visitor spend, with 76% of domestic tourism expenditure taking place outside of London.
  • Occupancy rate in regional hotels moved above to 76% and continue to climb.