Fair Acres affordable housing, Dunbar

Robertson Capital Projects has developed an innovative delivery and funding method to allow 60 affordable homes to be built in Dunbar.

Robertson Capital Projects (RCP), working in partnership with Ross Developments and Renewables (RDR) worked with ELC to create an innovative delivery and funding mechanism, that would allow the homes to be delivered using the Council's long term affordable rental income to underpin a private sector funding solution.

In order to procure the project, RCP and RDR formed a Special Purpose Vehicle (SPV) to firstly acquire the land then enter into a £6.5m design with build contract with Robertson Partnership Homes to construct the homes. RCP provided construction phase finance, with the SPV undertook a range of project management services to ensure successful delivery of the new homes.

The SPV also introduced an exit investor – The Co-operative Pension Fund (Co-op) – which agreed to acquire and hold the 50 mid-market affordable homes under a 40-year lease as a long-term investment following practical completion.

ELC will charge the Co-op for letting, marketing, management and maintenance costs over the 40-year lease, with all 50 properties reverting to Council ownership at the end of the lease period.

• the private sector takes responsibility for acquiring land, procurement, programming and funding;
• the Co-op holds the properties as a long-term investment;
• the council receives revenue from the Co-op for the right to market, let, manage and maintain the houses;
• the local authority lets to qualifying residents at agreed affordable rents;
• local residents get new, high-quality homes, at affordable rates in a location with good schools, public transport links, amenities and facilities;
• there is a reduced reliance on grant funding to build new affordable homes;
• the Council can accelerate its programme for much needed projects where no alternative funding solution exists;
• and the council acquires the homes at the end of the lease for a nominal fee resulting in ownership of a significant asset with no corresponding lease commitment.