Moda Living (Moda), the leading developer, operator and owner of private, build-to-rent (BTR) homes, and its joint venture (JV) partner Apache Capital Partners (Apache Capital) have taken the final step towards realising their 824-home vision for Hove, with the signing of its Section 106 community legal agreement valued at over £10 million GBP. The community agreement is one of the largest planning contributions to public amenity by a private company in Brighton & Hove in a decade and is set to be invested locally in infrastructure, education, public art and helping the local community.
Under plans approved earlier this year by Brighton and Hove Council, Moda will deliver 564 new homes for rent delivered alongside 260 senior living homes, with 10% of the BTR homes offered as affordable housing and charged at a 25% discount to Local Market Rent. The signing of the agreement will see the Sackville Trading Estate, a largely rundown, brownfield site adjacent to Hove station, soon transformed into a thriving inter-generational community.
Moda hopes to begin developing the site in 2021, with over 560 full-time jobs anticipated to be created – helping drive economic growth in the vicinity. Family-backed Moda and Apache Capital currently have £850 million of live schemes under construction across the UK – the first phase of the JV’s £2.5 billion pipeline of over 7,500 rent-only homes.
The Sackville Trading Estate had been identified for development and the approved plans will transform the site into a truly multi-generational community, raising the standards for rental housing in Hove, introducing public amenity spaces and social infrastructure for residents and the wider community, plus features to promote integrated healthy living.
Moda and Apache Capital will invest into recreational amenities and sustainable transport initiatives, including a bike scheme at the development, giving residents access to an environmentally friendly, healthy and economical means of transport in and around town. For those who prefer to drive, or need a car for the day, there will also be a Car Club, provided by Brighton & Hove. This will allow residents to hire or share a convenience car, minimising the need for keeping their own vehicle.
The scheme will also include communal lounges with events and wellbeing workshops, private dining areas, restaurants, shops, a village hall, 50,000 sq ft of office and co-working space to foster emerging businesses/SMEs, five communal roof terraces, gardens and open spaces – all designed to enhance community living.
For those living in the senior living accommodation, the section 106 agreement guarantees that they will be provided with 24/7 availability of emergency care onsite, security, a minimum of 4 hours of personal care to those who need it, regular reviews of the residents care needs, and the provision of at least one daily meal.
James Blakey, Planning Director, Moda Living, said: “As an Operator first and foremost, we’re looking to invest and grow in the communities we seek to create. Hove will be as much a home for Moda as for our residents. That’s why we’re so happy to be able to invest in the ways set out in this Section 106 agreement – that’s £10m into the local community, including over £4m on projects spanning education, employment, sport, public art and green spaces, alongside the creation of over 560 full-time jobs.
“Our build-to-rent neighbourhoods are introducing a completely new way of living and working. We provide more opportunities, amenities, options and facilities than ever before, all built sustainably with an especially strong commitment to their local communities, something that is even more important at difficult times such as this. At Moda we are certain that service and support for residents must be at the core of what we do.”
Richard Jackson, co-founder and managing director, Apache Capital Partners, said: “The Hove site with Moda marks one of our largest and most ambitious projects to date, and the signing of the section 106 agreement will see a large brownfield site transformed into a new, genuinely inter-generational community that will help meet two pressing housing needs.
“Both the UK build-to-rent and senior living sectors are two sectors in demand from institutional capital as they are structurally supported by long-term demographic growth drivers and a demand-supply imbalance, with a lack of high quality, professionally managed, purpose-built properties set against a growing number of privately renting households and an ageing population. As a result, for institutional investors wanting to access resilient, long-term income streams to match their liabilities, the two sectors hold huge promise.
Peter Kyle MP for Hove said: “This is great news as our communities will now be able to see the benefits of the regeneration of this tired area. I’m particularly looking forward to seeing nearly £1.8M spent on outdoor/indoor sports, parks and gardens, children’s play space, allotments and our greenspace. With Council budgets slashed and the residents of Hove needing enhanced outdoor space in our Covid-19 era, this money will fulfil this need.”
Moda does not require deposits or levy service charges from residents, while the monthly rental payments include access to an extensive range of amenities including a gym, wellbeing zones, shared work space, lounges, internet and reduced electricity costs – all improving the affordability of the homes when compared to conventional private rental accommodation from other landlords