Affinity Launches Regenerate London plc To Tackle London’s Growing Housing Crisis

Posted on 21st March 2017

‘Regenerate London Bond’ seeks to address London’s desperate housing plight

Hot on the heels of the Government’s newly published housing white paper ‘Fixing our broken housing market’, and with the UK’s housing crisis never higher on the political agenda, Regenerate London plc has launched an investment initiative targeting London’s desperate housing plight.  The Company announced today the launch of the Regenerate London Bond – offering investors an opportunity to play their own small part in solving London’s worsening crisis.

IMPORTANT NOTICEThis website is for property professionals only. The video belongs to Regenerate London plc and is hosted on their website where retail investors must self qualify before being able to access content. It has been posted on this site for informational purposes only as it tells the story of the bond, The video does not constitute an offer to invest, advice or solicitation of any kind.

The problem

London’s borough councils have been set challenging housing targets and many are failing to meet their own local development plans, with the latest reports from Savills suggesting that London needs as many as 64,000 new homes a year……. 1.9% of all London stock, every year!  The Greater London Authority’s ‘London Plan’ has placed further pressure on councils, to deliver new and affordable housing – but many have neither the land or the capability to develop land, so regeneration in partnership with a commercial entity is the only feasible option.

Focus of the initiative

Chaired by John Wheeler, who founded Regus (the World’s largest provider of flexible workplaces), Regenerate London plc will work closely with borough councils, helping to build new communities by purchasing sites (greenfield and brownfield) and making unutilised or under-utilised land ‘development-ready’, with fully optimised planning permissions for sustainable and regenerative high density, mixed-use developments.  The land will then be sold to developers, or where the planning permission demands it and/or where it makes good business sense, the Company may seek a development partner.

Regenerate London plc has secured a pipeline of potential deals within the Crossrail footprint, target schemes including vacant sites or existing sites with some commercial element such as leisure facilities, municipal buildings, pubs, former pubs, petrol filling stations, tertiary and secondary retail parades.

“An exciting opportunity”

“We will be focusing on development opportunities which help to address the chronic housing shortage in London, and are fully committed to the creation of a legacy for future generations”, says Wheeler. “We want to deliver real benefits to the communities involved, and that makes Regenerate London plc one of the most exciting companies I have been involved in since founding Regus, some 30 years ago.”

The proceeds of the new Bond will be used to fund the acquisition of land, options on land and the development of land in Greater London and the Home Counties, with a focus on areas impacted by major transport infrastructure initiatives and future transport hubs like Crossrail, where demand for new housing is expected to soar.  Crossrail is connecting the outer boroughs with high-speed links to Central London and this new infrastructure revolution will lead to rising prices and planning gains in these areas.

Mayor of London Introducing New London Plan

Sadiq Khan has already outlined his concerns over London’s housing crisis and made clear his intention to address the issue, beginning with the proposed introduction of the new London Plan in 2018/19; this will set guidelines to increase the density of housebuilding in the capital, an initiative Wheeler very much welcomes.

“There is not just a housing crisis”, he says, “but a real estate crisis.  Government policy and sociological trends – particularly high levels of immigration and population growth – continue to support the case for accelerating the development of residential property.  At the same time as most London boroughs are failing to meet their own development plans, the London Plan doubles most of those targets.  High-density development on brownfield sites is rapidly becoming an imperative, not an ideal.  Regenerate London plc will focus on development opportunities which address the chronic housing shortage in London, provide tangible community benefits, and an attractive rate of return to those investing in our new Bond.”

How does the new Bond work?

The Bond offers a fixed rate of return of 7% gross interest per annum over five years, paid quarterly, with capital returned in full at maturity.

Other key facts

  • Issuer: Regenerate London Plc
  • Structure: Unlisted Corporate Bond
  • Early bird incentive: a bonus representing an annualised 8.0% interest will be paid, equal to the interest calculated from the date the investors’ application is accepted (if prior to the Early Subscription Date) to the relevant Closing Date
  • Closing date: the Bond is perpetual in series, end each quarter, with the first closing on June 30th (or before at the Directors’ discretion)
  • Minimum investment: £1,000 (multiples of £1,000 thereafter, with no upper limit)
  • Adviser: Affinity Global Advisers Ltd

Investor security 

Regenerate London plc wants to leave a legacy to be proud of, and understands that the business must be viable and be built on the foundations of strong decision making and maximum investor security.  The following measures have been applied:

  • A debenture over the assets of Regenerate London plc, and
  • The appointment of NCM Fund Services Limited to act as Security Trustee

Those wishing to invest in the Regenerate London Bond can apply online at www.regeneratelondon.com or download an application form and post it to Regenerate London Bond, 41/43 Brook Street, London W1K 4HJ.  Those seeking further information can visit the Bond website, telephone 0203 369 0769 between the hours of 9.00am and 5.00pm Monday to Friday, email helpdesk@regeneratelondon.com or write to Helpdesk, Regenerate London Bond, 41/43 Brook Street, London W1K 4HJ.

– ENDS –

 

Journalists seeking further information on the Regenerate London Bond or who wish to receive the Invitation Document should contact:

Gordon Puckey
Phoenix Financial PR
07799 767 468
gordon@phoenixfinancialpr.co.uk

NOTES TO EDITORS

About Affinity Global Advisers Ltd
Affinity Global Advisers Limited (AGA) is part of the Affinity group of companies, which includes Affinity Global Real Estate Limited, Affinity Global Advisers Limited, Affinity Developments Plc, Affinity Land Plc and Regenerate London plc.

Headquartered in Brook Street, Mayfair, AGA provides guidance, support and advice on investment and development management, asset management, hospitality development and regeneration projects.  The Company will be advising Regenerate London plc on the purchase of options on land, real estate and properties, applications for planning permission as well as real estate development.

The deeply experienced Affinity team has been directly involved in more than £3.5bn of real estate transactions, over a 20-year period.  Affinity and/or its principal currently co-own and manage a real estate portfolio with values totalling more than £129m and regeneration projects exceeding £1bn.

About NCM Financial Services Ltd and NCM Fund Services Ltd
The content of the Invitation Document has been approved for the purposes of section 21 of the Financial Services & Market Act 2000 (FSMA) by NCM Fund Services Limited (NCM), which is an authorised person within the meaning of FSMA.  NCM is entered on the FCA register with registration number 183732 and can be contacted at 7 Melville Crescent, Edinburgh EH3 7JA.

NCM Fund Services Limited has been appointed to act as Security Trustee.  If the Company defaults on any payments due to bondholders, the Security Trustee can enforce the debenture over any assets of Regenerate London plc, acting solely in the interest of bondholders.