APEX AIRSPACE

Val Bagnall – Managing Director

‘Unlocking New Value from Assets’

JUNE 2019

Overview

Apex founded in 2015 , pioneers of the airspace development market

• 2016 – Carried the most comprehensive research in to London’s Rooftops - £54bn

market

• 2017 – Invited to No.10 to roundtable discussions with the PM and the Housing Minister

• 2017 – won the World Architectural News Award for Innovation

• 2018 – influenced national planning policy with inclusion of the term ‘airspace’ in the

National Planning Policy Framework

• 2018 - Apex feature on BBC1 prime time programme on homes and innovation

• 2018 – BGF invests first part of £9.25m into Apex

• 2019 – Homes England invests £9m into Apex

• 2019 – Greater London Authority invests £10m into Apex

• 2019 - Apex featured in international documentary on how world cities are responding to

using space creatively

• 2019 – Apex named ‘Best Newcomer’ in Property Week Resi 2019 Awards

• Shortlisted in Evening Standard Business Awards ( 28th June)

• Shortlisted in Estates Gazette ‘Residential Innovator of The year (Oct 19)

What do we do?

We build on top of existing assets to create new

homes: private sale and affordable

Key benefits

• Produces new value from existing assets

• Create new homes

• Generates balance sheet leverage

• Reduces costs of maintenance

• Innovation

• Reduced service costs

• Ground rent income

• Improvements to the building kerb appeal

Airspace as a solution

• New form of land supply- 180,000 homes -£54bn• Re purposing of assets/ sweating of assets• Reduction of planned maintenance expenditure• Political –– supported by MHCLG and GLA• Opportunity to create funding and new homes• Creation of balance sheet leverage• Innovation – embracing offsite construction

Our Review process

5

✓ Optimal value/return

✓ Good planning chance

✓ Implementable

✓ Good return✓ Some challenges but

do-able

✓ Low value return✓ Range of construction

and legal hurdles✓ Planning difficult

Gold

Silver

Bronze

•What are legal hurdles?

• Can scheme be

developed?

• Legal documentation/

contract

• Rights of leaseholders/

neighbours

• Legal View

• Conduct full scheme

financial appraisal

•What is preferred

construction process?

•What surveys are

required to progress?

• Specific construction

constraints?

• Project Delivery plan

• Views of professional

team

•What are key planning

policy considerations?

•Optimising design value

• Impact of CIL and 106

on costs

• Potential areas of

objections

•What is likely impact on

project delivery time?

Planning

• Massing/ Density

• Parking

• Tenure

• Rights of Light

• Listed buildings

• Skyline

• Whole site or partial ?

Apex influencing direction

• 2016 – DCLG/Major of London joint consultation

• 2017 – Housing White Paper• 2018 - Draft London Housing

Strategy/ London Plan• July 2018 – First mention in NPPF• October 2018 – new consultation on

PD rights for airspace?• 2019 PD rights Autumn

Funding airspace

• New market

• New risks

• New approach/ modular

• New processes – monitoring role

• Apex have £60m capability

Buildings /construction

• Structural integrity

• Typologies

• Access issues and lifts

• Services capacity

• Nature and scope of works

• Type of contract

• Costs

Apex has developed a comprehensive delivery platform with an experienced in-

house team that is complimented with strategic partnerships in the supply chain,

and an extended team of ‘ best in class’property professionals.

Apex’s focus on offsite manufacture reduces reliance on an over stretched

construction labour market whilst enhancing the overall speed of delivery, process and

quality/consistency of airspace development.

Apex believes that scale is critical in creating the most efficient delivery of the product.

Apex has agreed partnerships with three manufacturers who have a combined output

of 100 complete homes a week. End to end design, delivery and installation period

is 24 weeks. This results in a total typical delivery timeline for Apex schemes of 53

weeks from start to finish.

To optimise the delivery chain, Apex has established a robust framework of architects

and consultants who are experienced in offsite manufacturing, design and installation

APEX DELIVERY Timeline

CASE STUDY

ANTONY & RODERICK

• Scheme with Lambeth & Southwark HA

• Pitched Roof would need replacement over next 3 years at cost of £400k

• New scheme will provide a total of 30 additional apartments for affordable

housing - in effect doubling the density

• Two storey extension to the existing blocks, with two book end developments of

six apartments each

• Improvements to the elevations, and amenities of the buildings, including a new

lift for the benefit of all residents

• Scheme will offer balance sheet leverage of some £5m to a small housing

association to fund more new housing supply

• Scheme to be approved

• Scheme is planning policy compliant

London Borough

CASE STUDY 3 : London

Borough

• New scheme will provide a total of 12 or 24 additional apartments for affordable

housing

• One or two storey extension to the existing blocks,

• association to fund more new housing supply

• Scheme designed by Studio Partington architects

CASE STUDY – South London

• Scheme proposal with G15 player

• New scheme will provide a total of between 24 & 48 additional apartments

for range of affordable housing tenures

• One or two storey extension to the existing blocks,

• Balance sheet leverage of some £6m

• Significant improvements to the existing blocks

CASE STUDY : Housing Association

site London

• We can deliver the units as either 100% affordable, a Capital Receipt or a

mix of both. Apex will finance the whole scheme from feasibility to

completion and take all of the project risks.

• Apex will design the scheme with the agreement of the organisation and

residents, liaising throughout the process and incorporating a ‘Planning for

Real’ approach.

• Use offsite modular constructed units to enhance speed of delivery, and

minimise disruption, whilst delivering a product that will be NHBC (or similar)

warranty backed with high levels of energy efficiency and consistent with

the London Design Guide.

• ‘Open Book’ approach working in true partnership.

• Indicative viability assessment of options c.£200-220k per unit TSC,

however, we would anticipate that costs will reduce once technical due

diligence has been concluded:

Case Study - London Local Authority

Creation of 96 flats - £38m GDV – new lifts and elevational upgrades