Urban Splash announces portfolio sale to Places for People, restructure and future plans

Highlights of the announcement include:

• The sale of 654 apartments to Places for People
• The retention of Urban Splash by Places for People as managers on the portfolio
• The establishment of a number of new Urban Splash businesses including:
  • Urban Splash Holdings Limited
  • Urban Splash Management Limited
  • A number of Urban Splash asset holding companies
• A number of these new companies are entirely free of bank debt
• All of the Urban Splash companies remain 100% owned by Urban Splash directors
• Urban Splash looking into new JV opportunities

Places for People and Urban Splash collaboration

Urban Splash has been retained as property managers by Places for People, one of the country’s biggest property management, development and regeneration companies. The company will continue to manage the portfolio it has sold, meaning there is minimum impact for occupiers.;

David Cowans, Group Chief Executive at Places for People – a company which already owns and manages 143,000 units and has assets of £3 billion, said: “Places for People has invested in acquiring these properties from Urban Splash as part of our continued commitment to high quality, affordable and sustainable housing. Adding these properties to our portfolio enables us to provide even greater choice and more access to homes for sale, rent and part ownership across the UK.”;

Added Tom Bloxham MBE, Chairman of Urban Splash: “We are very pleased to be working with Places for People. We are two organisations who share many values, a belief in the power of placemaking and mixing up uses and tenures. We both have enviable track records in developing award winning regeneration projects, private rental stock and affordable housing.

“We are confident that that our design flair, marketing and lettings skills combined with Places for People’s reputation, skills and experience will make this collaboration a great success.”

The portfolio acquired by Places for People includes stock from Urban Splash schemes in Manchester, Plymouth, Bristol, Bradford and Leeds, which have seen investment through the Homes and Communities Agency, including its Rent to Homebuy Scheme.

<p">Tom Bloxham said “The sale of this portfolio marks a significant turning point for Urban Splash and the funding from it will be used to reduce debt while our corporate restructure will allow us to undertake future development projects.”

Urban Splash Restructure

Urban Splash has announced a corporate restructure including the creation of a new ultimate holding company; Urban Splash Holdings Limited, a new management company; Urban Splash Management Limited and a number of new asset holding subsidiaries.

The new management company and a number of the asset holding companies are entirely free from bank debt and will be the entities via which Urban Splash will undertake new projects going forward; both on their own and in joint venture partnerships.

Urban Splash Management Limited will provide residential and commercial property management, sales, marketing and development advice services to other Urban Splash companies as well as to Places for People and a number of other third parties.

All of the Urban Splash companies remain 100% owned by the directors.

Background to Urban Splash changes

The restructure, portfolio sale and setting up of a management agreement with Places for People were led by Urban Splash directors Julian Curnuck and Simon Gawthorpe alongside advisors from Deloitte and Eversheds.

Closing statement from Tom Bloxham MBE

“This restructure, sale of the residential portfolio and setting up of a sales and management agreement with Places for People signals the start of a new beginning for us.

“It has been a tough five years but during that time we have delivered some great award winning projects including the Royal William Yard in Plymouth, Lakeshore in Bristol, Longlands in Stalybridge and Park Hill in Sheffield. We are pleased that we have now been able to undertake a corporate restructure and place individual properties and relevant debt into new legal entities.

“Over the last 20 years, we are very proud of our track record for transformation, which has been recognised with 342 awards. We hope that this restructure will allow us to continue helping to regenerate the UK.”

ENDS

Notes to editors:

Urban Splash

Award winning property developer Urban Splash is the country’s leading regeneration company and has delivered over 60 mixed-use schemes including residential property of all tenures, commercial office, retail and a hotel.

Founded in 1993 by Tom Bloxham MBE and Jonathan Falkingham MBE, the company is based in Manchester with regional offices in Liverpool, Leeds, Birmingham, Bristol, Sheffield and Plymouth.

Urban Splash has delivered challenging and exciting regeneration projects across the country including Park Hill in Sheffield, Fort Dunlop in Birmingham, Chimney Pot Park in Salford, Castlefield and New Islington in Manchester, The Midland Hotel in Morecambe, Saxton in Leeds, Longlands in Stalybridge, Lakeshore in Bristol, The Royal William Yard in Plymouth, Lister Mills in Bradford, Rotunda in Birmingham, Matchworks in Garston and the Ropewalks in Liverpool.

The company has invested over half a billion pounds creating thousands of new homes and jobs in over four million sq ft of space.

The company has received 342 awards to date for its commitment to architecture, design, regeneration and business success including 51 RIBA Awards the most won by a property developer. The company’s Park Hill scheme is also on the 2013 RIBA Stirling Prize shortlist.

Places for People

Places for People is one of the largest residential property development, management and regeneration companies operating across the UK in areas from strategic land, master planning, development and property management. The Group owns and manages 143,000 homes and provides housing including homes for sale, market and affordable rent. Uniquely the Group manages residential properties in all tenures and is one of the UK’s largest managers of private rented homes and leasehold properties.

As one of the leading registered provider groups in the country it works in 205 Local Authority areas and is a not-for-dividend organisation, which means that the profits it makes are reinvested back into its core business of creating and maintaining sustainable places.

Places for People is committed to creating successful places and enabling people to reach their potential. Places for People makes a long-term commitment to its communities and works to provide what they need to thrive; not only today but for future generations. Its developments are not just about housing but new schools, shops, leisure facilities, employment, access to training and specialist services.

This is the approach that Places for People has taken on its award-winning developments - and the company’s long-term commitment and investment it makes in places has been recognised, by winning this year’s Building Awards Housebuilder of the Year, Landlord of the Year and the Homes for Scotland Award 2013

www.placesforpeople.com