Raviv Dozetas : ESSENTIAL LIVING infinity towers

M AND G

M and G were bought in part by the prudential group in 1997, and still operate under their own brand, by in largethey operate a plethora of funds,that range in most categories horizontally across the capital markets and have various funds vertically within each category,by quantum they are valued in the billions and must therefore be seen as a step up from the Essential Living group.

What is of interest to this paper is the M and G property funds, these are aimed almost exclusively at the commercial property of all types, a closer analysis of their balance sheets shows they are invested in accommodation providers like Travel lodge, which although are not residential renters, it does show that funds of this magnitude are not investing in residential property, but are investing in almost all other classes except residential property! A closer look at their balance sheet shows that in 2015 their trades detail hundreds of millions of Pounds in property acquisitions and disposals, all of the commercial type.

Pertinent questions need to be asked why these funds are not deploying their funding to the residential markets.

At this scale even a small percentage invested into residential schemes,(and it is proposed that these would be developed for onward sale –and not retained to rent out),would result in thousands of additional units per project, this must  be multiplied by the large amount of companies of this size each capitalizing on sizable opportunities. 

Grey Star

Grey star are an American based provider of rental accommodation,they are market leaders in their various fields and offer specialised rental accommodation for over 55s, students, regular families and other sectors.

They offer 10s of thousands of apartments all over the United States, and in foreign countries to, their recent entry into the UK market has primarily focused on the student markets where they provide smart, upscale accommodation and modern hi tech facilities to include gyms, cinemas, conference facilities, restaurants etc.

The pre-existence of the rental models by Grey Star would make progression to capture market in the UK a relatively easy move for them, and obviously provide a solution to a real demand. Companies of this nature are able to undertake many projects simultaneously and as they have done to date.

Raviv Dozetas :A view from one of Grey stars student accommodations

REITS –Are an investment vehicle that allow members of the public to buy shares in UK listed property companies that collectively manage many billions of pounds.

Much legislation exists around REITS and residential property investment, but currently residential investments are single digits percentages of Reits funds, thus much potential exists to increase Reits participation the UK.

MASS PRODUCED, MODULAR HOUSING SYSTEMS.

All the housing listed below is currently available, all able to be produced and assembled in weeks, all have low carbon/zero carbon foot prints, exceed energy efficiency standards, of good design and use high quality materials.

It is safe to say they exceed traditional ‘bricks and mortar’ construction build quality and are guaranteed the same if not longer. (NHBC guarantees or equivalent are available on these homes) The below list showcases the international approach to locally produced, low cost, high quality ,small floor plate housing, and thus while we are examining  the UK only ,we must be sure we are competitive against technologies and the latest production techniques.

United States:Rural Studio is an off campus ,design build program of the University of Auburn, they  offer a full hi-tech, eco-friendly home for under $20 000.00 (materials of $12000 and labour, assembly installation of $8000.00,The project is mainly aimed at underprivileged members of  society in less affluent areas, to date they have serviced 3 states and have created over 600 projects ,this is a collaboration between the  University of Auburn , students and society ,many students spend many  years on the program going on to teach and use these concepts In their careers and lives in construction, it is therefore an organic, evolving approach to eco-friendly, design led house building techniques that infiltrates society.

These techniques together with the recently introduced relaxed planning approach in the UK, and the introduction of more land to build on is a viable solution to create a grass roots, eco-friendly self-build program.

The requirement for housing could be achieved using the above model as families can be homed for a fraction of the current UK model cost, with the added benefit of always being able to change if required to rebuild, renovate or extend accordingly.

It must be stated that this must not become a shanty town approach, rather a structured, building regs approved program, but clearly the 600 homes built to date do thus far stand to testament of this approach.

Raviv Dozetas :home produced by Rural Studio.

Japan: Muji:A Japanese company that produces a specially designed house over three floors, designed in response to requiring high quality, assemblyhome that can be assembled in the small confines of inner city small streets, consistent with Japanese inner city housing Muji offers comparatively the same space as traditional homes, but with all the advantages of factory quality build.

MUJI housing offers open plan high quality housing, which is panel based in construction(Ward)

UK.

A further advancement in this regard is the UK government’s initiative through The Homes and Communities Agency's (HCA's) Custom Build Serviced Plots Loan Fund which provides a £150 million fund for schemes of between 5 and 200 housing units. Funding will be made available to support the development of serviced plots to help the growing number of people who want to custom build their own home.(User)

The funding is available until 2020 and is aimed at shovel ready sites to assist with the purchase and finance of this form of housing One of many producers is Dwelle ,Manchester based the firm produces what seems like high quality sheds, but that’s as far as it goes, every aspect of the houses are high tec, and very high quality .The supply chain ensures  the component producers from the carpets to the cladding are themselves energy efficient ,low carbon manufacturers. The houses start as a basic one or two bed formats but can have pods added at any time to create up to large 5 bed family homes, as families grow, with specifications such as Boche kitchen appliances, or Homes are ordered online in a clear 10 step process, the entire production process is factory based, and ensures precision manufacturing, this has clear advantages amongstothers: Less production material waist, efficientuse of labour, reliable delivery and assembly times,

While the home is being produced the site can be prepared with foundations, services, waste waters etc. Homes in this fashion can be produced and assembled on site ready to move into within weeks.

Dwells housing offers high quality,above two or three ‘pods’   can be linked together to create double or larger houses-this can be done anytime as families grow.

Raviv Dozetas :References

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