Dudley House case study

Peter Sherlock

Westminster / Sherlock Consultancy

Dudley House – The Property Asset

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Dudley House – The Property Asset

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Dudley House – The Scheme

• Truly Mixed use scheme in the heart of Paddington Basin area

• 197 apartments being Studio, 1B 2P and 2B 4P

• Marylebone Boys Free School – 840 Pupils (incl sixth form)

• Replacement of Church community

• Retail convenience store

• Car spaces 54, Bicycle 278, Motor bike 19 – 30% parking provision.

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Dudley House – The Context

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Dudley House – The Need

• Huge under supply of affordable housing across tenure types in WCC

• 2,100 individuals on the intermediate waiting list

• Local Hospital requirement for medical / Nursing staff accommodation

• Local Schools having difficulty with retention of teaching staff

• Other Key workers with long commutes due to affordability constraints

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Dudley House – Intermediate Rent

• Defined as up to 80% of open market rent

• Existing London Plan eligibility up to gross salary of £90,000 pa. Living in Borough 3 yrs.

• 40% of net income on housing costs (70% assumed from Gross to Net income)

• Draft London housing strategy will limit salary to £60,000 pa for London Living Rent

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Type Studio 1Bed 2 Bed

Upper range of open market rents

£550 pw £740 pw £1,420 pw

London living rent for ward

£260 pw £288 pw £317 pw

Dudley House rents(CPI + 1% increase)

£240 pw £320 pw £550 pw

Percentage Dudley to Open Market rent

43.6% 43.2% 38.7%

Dudley House – Layouts

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Dudley House – Project Funding

• Scheme cost £104m.

• EFA Grant for School

• Grant from Affordable Housing Fund

• Prudential borrowing from Public Works Loan Board

• Interest rate and minimum revenue provision

• Net rent to provide an acceptable return to General Fund

• 25 year lease on 20 units to Local Hospital + conversion cost

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Public Sector projects – Key to success

• Bold & Ambitious. Comprehensive and all embracing Plan.

• Planning Policy supportive.

• Create value from property assets + land assembly (CPO backed).

• Political support via Member briefings. Community consultation.

• Project Champion. Show leadership.

• Appropriation of land at the right time. Right Vehicle / Structure.

• Procurement. Initial design team. Two stage D&B. Operator.

• Legal team – DA, CPO, ASTs, RTB.

• Finance - Commercial yet prudent. Income is King. Be creative.

• Momentum – Momentum - Momentum

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Dudley House – School Sept 2018 Residential May 2019

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Dudley House – Current Construction

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Dudley House – Current Construction

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