Trust, knowledge and relationships in a digital age

BY Peter Deeley

In a world which is increasingly digital, and where reality can be virtual – we are currently working on a £15 million project which has underlined the slightly older values of trust, knowledge and relationships.

We finished a very nice project for Warwickshire College Group at Pershore last year, and off the back of that picked up an enquiry from the College in Leamington as it had a contract to provide training to more students and therefore provide additional student accommodation.

The college was looking to a development team in the private sector to fund such a scale of operation. So we put forward a structured package of funding, designing and building of the units.

After talks with the college, the fund we introduced purchased 100 existing student units, we are building 100 now and there is an option on a final phase of 64 units.

So the funder will end with an investment of 264 student units in a very good location in the centre of Leamington.

The significance is that it really shows what local companies can provide when it comes to need. In short, if you have the requirement for housing there are always ways of providing funding and the ability to deliver.

It is a specialised area but we understand the way the funds need to be structured. We believe we have an overall view of development that allows us to structure packages so all requirements are met:

The college has its student accommodation

Deeley Group are completing a sizeable building contract

…..and the funder has a good investment!

Literally win, win, win!

Our size and our experience are key. We are local enough to really know the market yet large enough to be attractive to these types of property fund investors. Part of our ability is to comprehend how much the funds have to invest in property.

Knowing that and knowing the client’s needs, we agreed a formula which would be attractive to all sides.

This was not a banking property proposition in this post-recession climate. The figures would not have worked with a conventional banking arrangement.

Over the last decade, we have consciously developed an expertise in how funds work and how investors operate.

Construction, like all other industries, has moved with the times but it is interesting that in arrangements such as this, relationships and trust in those relationships, is fundamental. Without that element, nothing would work.

There are matters of confidentiality from all sides, and all parties have to have faith that the others have the ability to deliver what they are promising.

The funds are out there – not necessarily with banks – but you have to find the right ways to invest it and the right people to work with. If you can do that, the results can be mutually beneficial.