PRS Club MeetingLondon, June 19th

The State of Play for UK & Irish PRS

GRI UK Club members gathered with a selection of the UK’s most senior PRS developers and asset owners for a closed door and frank discussion on where the asset class was evolving and the wealth of investment opportunities available. 

Hosted at UNCLE, Elephant & Castle (a new build serviced apartment brand by Realstar Group) and moderated by Ryan Prince, Vice Chair, Realstar Group, the venue reflected the growing popularity and tenant demand for hotel operated style rental accommodation for millennials especially. Members were joined by Gareth Blacker, Head of Transactions, Homes & Community Agency who shared insights into the state of finance for all gradients of rented living and working with investors and developers; social, affordable, multifamily, retirement, mid market and luxury. 

Questions on planning, availability of debt and government policy steered much of the earlier discussion; how are we to address the overwhelming supply and demand issue for residential in a climate where the consumer and the government aren’t completely bought into ‘generation rent?’ Whilst it was felt that there were billions of capital to deploy, the debate centred on getting the right mix of affordable, mid-market and luxury products. Co-Working, Micro and Serviced Apartment products were explored, especially whether they could be built to cost and scale. More could be done at a local level through releasing land for development, building to cost in the right place and having a cohesive plan from government to attract long term investment into the sector. 

Building to cost and scale and when we would see a robust pipeline develop was cited by financiers and institutional investors as a main barrier, and possibly why we have yet to see much activity in PRS, especially as the fundamentals point to a sector that should be flourishing! However, it was encouraging to learn, most institutional investors are very prepared to move up the risk curve and take on planning and development risk in order to make the numbers work.

Affordability costs of the entire lifecycle to buy land, invest, build, operate and gain stable long term rental returns brought home the message that the PRS sector has a long way to go in the UK before it catches up to more established and liquid markets such as Germany, USA and Canada. The simple fact is that while demand is critically high for places to live across the UK, the asset class will remain slow to pick up because the market has no way of testing the revenue growth. Most agreed that until the government take some control and use some form of rent benchmarking and viability testing to help pave the way for a liquid pipeline, PRS will remain a business for the brave and innovative few; not an asset class to the many debt and equity investors waiting to enter into the UK & Ireland PRS BTR market.

Timetable

Tuesday, June 19th

08:30 - 09:00 Registration / Arrival


09:00 - 10:00 Discussions


10:00 - 10:30 Leaving Refreshments


CRITERIA TO BECOME A CLUB MEMBER

Membership is subject to approval by a committee of peers and is reserved exclusively for senior investors, lenders and developers*.

Qualified individuals (C / Director Level) that believe they could benefit from being part of such a global community are welcome to further details.

*Some leniency is given to those outside this category up to a maximum of 10% ratio of the Club.

Venue

UNCLE Elephant & Castle, London

Sky Lounge 45th Floor Uncle Elephant & Castle 9 Churchyard Row
London SE11 4FE


Hosted by: Ryan Prince, Vice Chairman, Realstar Group & Uncle

Situated in one of the most well-connected inner-city locations, UNCLE Elephant & Castle is a Londoner’s dream. Our one and two bedroom apartments offer generous and modern living spaces with your own private balcony to enjoy uninterrupted views across London. Combine this with a 24/7 onsite resident manager, 45th floor sky lounge with 360° views, exclusive residents gym plus more, and you’ve found the perfect place to call ‘home’.

Thiago Alves

Thiago Alves

Portfolio Director

+44 20 7121 5096

[email protected]
Kirsty Stevens

Kirsty Stevens

Head of Research - Europe

+44 (0)20 7121 5095

[email protected]
Thiago Alves
+44 20 7121 5096
Portfolio Director
GRI Club
Kirsty Stevens
+44 (0)20 7121 5095
Head of Research - Europe
GRI Club
Biography:

Kirsty has seven year’s experience in conference production globally. Her previous role included Conference Producer for RICS, fostering events in Corporate Real Estate, Residential, Industrial and Regional Investments across UK, Middle East and Europe. Kirsty is passionate about industrial and logistics, residential alternatives, distressed Investing, as well as connecting investors and developers with focused discussions in her core markets of the UK and Europe.

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