Corporate overview

Long Harbour is a specialist real estate investment, development and management firm. Uniting market leading expertise across a range of asset classes, Long Harbour generates attractive returns for investors whilst seeking to create buildings of lasting value through thoughtful design and exemplary stewardship. Long Harbour has a proven track record of AUM growth across its three investment programmes: secured income, multi-family and opportunistic.

Long Harbour’s approach to asset management is to make a positive impact in the communities in which it operates, whilst delivering long-term value to its investors through platform based, thematic strategies.

Long Harbour currently employs over 180 staff across its offices in the UK, Europe and the US.

For more information, please see Longharbour.co.uk and follow us on LinkedIn.

Sector forecasts

RESIDENTIAL: The positive trajectory for residential and specifically build- to-rent (BTR) is set to continue over the next 12 months. The extent of the acceleration of investor and lender appetite for BTR has been confirmed by the latest agent data which shows record levels of investment.

Investor interest is driven by attractive demographics and supply/demand ratios, the sector’s resilience, as demonstrated through the pandemic, and potential granularity of income. Regional markets are the fastest growing, driven by more attractive returns, a better planning context, and favourable demographic shifts. As a result, secondary cities such as Bristol, Southampton, Liverpool and Sheffield will see prices increase.

Another significant geographical shift is a growing demand for a more suburban, larger BTR properties, with access to family associated amenities such as community space, fitness facilities and cafés.

Furthermore, BTR is benefitting from the challenges facing other asset classes across real estate. A prime example is the demise of retail, which has left for- mer department stores a particular focus for BTR conversion.

BTR has an important role to play in the sector-wide ESG push, particularly in supporting key worker housing and creating energy efficient homes, drawing on modern methods of construction.

As BTR renting escalates in consumer consciousness, branding will come even more to the fore, with operators working alongside experts to build brand rec- ognition, loyalty, and trust. Customer service and lifestyle offer are some of the many benefits of renting a BTR home and these attributes are already being used increase consumer awareness. 2021 saw the British Property Federation lead the launch of Love to Rent, the first online portal exclusively designed to market BTR developments directly to consumers.

OTHER: The pandemic and resulting focus on health and well-being has boosted mixed-use development and the concept of the 15-minute city, where everyone is able to meet most, if not all, of their needs within a short walk or bike ride from their home. The move is supported by a growing body of research confirming the health and lifestyle benefits that can be achieved from shorter or fewer commutes, more time for family and friends and greener, more walkable neighbourhoods.

To support this approach, investors in this space will need to consider a deferred approach to financial returns, measuring the success of developments through social and environmental gains and a focus on longer-term value.

This approach fits with the sector’s increasing emphasis on ESG, which calls on the industry to build more sustainably and resiliently and with the needs of community in mind. As such, we anticipate that legacy and placemaking will continue to rise up the agenda with even more flagship examples of 15-minute cities popping up across city, suburban and rural locations.

Investment principles & strategy

Long Harbour’s investment approach has three key pillars:

  • Funds are allocated following a vigorous examination of key investment fundamentals to measure opportunities in real estate markets against a wide range of city criteria, including factors such as population, economy, infrastructure and employment. Adopting a strong research-led approach enables us to be strategic and create accurate return/risk profiles on a project- by-project basis.
  • The management of Long Harbour’s assets is brought in-house to deliver better customer service and maximise the value and performance of the buildings and investments. For example, Way of Life is Long Harbour’s dedicated property management platform for the BTR portfolio and our ESG strategy is delivered in partnership with Longevity, the leading global sustainability consultancy that we seed funded in 2015 and maintain a 50% stake in.
  • Identifying favourable social and economic characteristics helps us to be confident that funding is underwritten based on solid market data. This is supported by stringent risk control measures in the execution of asset development and management, working within the limits set by each investor and at the appropriate level for each product.

Strategic corporate development

In 2020/21, Long Harbour stayed nimble, pursued new opportunities, and performed strongly across all three investment programmes: multi-family, secured income and regeneration:

  • We brought together international investors PSP Investments and Cadillac Fairview to create a £1.5bn BTR platform, one of the largest and most compelling in the UK.
  • We successfully managed c. 1,000 BTR units throughout the pandemic, with a further 668 under construction and over 300 completing during the pandemic. One development, significantly ahead of schedule.
  • We are spearheading a ground lease revolution in Europe, acquiring 473,927 sq ft of land across Dublin, Frankfurt, Munich and the Netherlands.
  • We have increased our full cycle capacity to deliver complex mixed-use developments. In July 2020, we secured planning permission for Fawley Waterside, a smart town benefiting from freeport status and with the UK’s most digitally advanced infrastructure. Our second flagship development, the 8,500-home Northants scheme, is supporting Homes England in delivering the ‘build back better’ agenda.

COMPLIANCE STATEMENT

Long Harbour Ltd was authorized by the Financial Conduct Authority in 2013 to act as a full-scope alternative investment fund manager. Long Harbour Ltd manages several real estate funds where the investment strategy is focused on providing investors with opportunities that offer attractive, risk-adjusted, long-term, and highly diversified income returns.

In line with the current UK and EEA regulatory requirements, domestic and overseas investors can pass day-to-day portfolio and risk management of their investment to us and seek comfort that funds are held in compliant structures subject to robust ongoing monitoring.

Long Harbour Ltd prides itself on its strong corporate governance structure with ESG underpinning all our investment programmes and its internal culture and operation