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Investment case

Supporting economic, technological and social change

The opportunity is huge

There were 18,000 brownfield sites in England in 2019, with capacity for over 1 million new homes (CPRE). 

There is an urgent need to sustainably reinvent our towns and cities to become thoughtful, efficient, enjoyable places, that allow everyone in society to prosper. In London alone, there are c.6,700 acres of unused brownfield land, and c.24,000 commercial buildings sitting empty – mostly for long periods of time.  Our focus is on underloved and overlooked land and buildings, which are bristling with untapped potential and character. In the right hands, they can address the need for inspiring, convenient and affordable mixed-use places for local communities and a depth of capital looking to invest in sustainable assets for the future.  Our ability to find and deliver value from these complex sites sets us apart and gives us a competitive edge.

We have the trusted relationships, nurtured over 25+ years to be selected as partner of choice on major new regeneration opportunities and the brand distinction that has allowed us to build a pipeline with visibility for the next 15+ years. As one of a small group appointed on the GLA’s London Development Panel, which we believe will be used to procure and bring forward up to £20 billion of development land in the next four years, we have an opportunity to support the public sector in creating the mixed-use accommodation London so urgently needs.

Operating in a long-term growth market

Operating in a long-term growth market

We operate in three core geographies – London City Region (within one hour’s commute from London), Manchester and Dublin – where we see the greatest growth potential. They are expected to see a sustained increase in population, above national average, and lower unemployment in the coming years, whilst also benefitting from being well advanced in our four economic growth drivers of talent, tolerance for diversity, transport and tourism.

We focus on mixed-use regeneration where there is a recognised shortfall. Covid-19 has accelerated the need for more agile, flexible spaces where people can safely live, work and socialise:

  • Current housing, offices and community spaces are unsatisfactory
  • 300,000+ new homes needed in the UK every year and an urgent priority for government and local authorities
  • Flexible living and working habits driving demand for quality mixed-use spaces as affordability, flexibility, space, wellbeing and infrastructure are prioritised over postcode
  • Growing pressure on local authorities to deliver with shrinking resources

Clear competitive advantage

Clear competitive advantage

Our track record of over 25-years, our intimate understanding of our three core markets, our long-standing relationships, and trust in our delivery, give us a competitive edge:

  • Mix of regeneration/development, trading and investment portfolio activity gives several routes to value creation
  • The PPP market has high barriers to entry – trust, reputation and quality are key
  • Strong, long-standing partnership network – including membership of GLA’s London Development Panel and TfL Property Partnerships Framework – provides privileged access to new opportunities
  • Vision to find and deliver value from complex, overlooked, underloved places, brimming with potential and character opens up opportunities for us

Delivering sustainable financial returns

Delivering sustainable financial returns

Substantial pipeline of >£10.8 billion GDV with visibility for the next 15+ years:

  • Targeting an average of £50+ million development and trading gains per annum and 12% average post tax total return in the medium term – driven by large scale regeneration projects balanced with shorter-term trading activity and underpinned by investment portfolio returns
  • NAV driven by cash returns from management driven development, trading and investment activity, not accounting revaluations
  • Long-term capital partnerships to fund multiple regeneration projects provides business efficiencies

Optimal capital allocation

Optimal capital allocation

Strong cash generation allows us to build up strong cash reserves to protect the business for the future, reinvest in the business, whilst aligning shareholders with our success.  We have paid a supplemental dividend almost every year since we were formed in 2015.

Clear purpose

Clear purpose

We exist to unlock long-term value for all through regeneration.

  • Creating great places that bring long-lasting positive social, economic and environmental change for communities is at our core
  • Through Worthwhile Use, we connect with communities – creating jobs, driving productivity and boosting local economies
  • People matter. Talking and listening to our partners and communities lead to greater engagement and support in planning
  • Values of imagination, intelligence and audacity are ingrained in our approach and culture

Effective senior management team

Effective senior management team

Industry-wide Board expertise brings fresh thinking and innovative approach: 

  • Experienced team with strong track record, motivated by delivering on the huge potential of a young company
  • Passion, curiosity and ambition to keep challenging in an exciting, fast-changing industry
  • Merging two businesses brings the best of analytical due diligence with creativity and entrepreneurial flair

How we measure our progress

£ 50m+

average development and trading gains target per annum

12%

average post tax total return target

10%

average investment portfolio total return target

40-50%

gearing on balance sheet target

90%+

employee satisfaction with U+I as a place to work

Non-financial KPIs

100%

target for BREEAM Excellent/LEED Gold rating or above across all new developments

13%

year-on-year target for reduction in Scope 1 and 2 emissions compared to the FY2020 baseline; become net zero carbon by 2030

0.1%

lost time to accidents/incidents across U+I's sites

3

locally employed people across the project portfolio for every £1 million of project spend

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