Urban&Civic: in its own league

The principle difference is that it operates as a master developer, whereby it grants a licence for housebuilders to construct homes. Having completed all the ground work, Urban&Civic lets housebuilder move in and start constructing very quickly. In doing so, it is driving a horse and cart through the planning process and is working towards halving from seven years the timescale between a planning application and the first delivery, or in the case of its Wintringham site, just 24 months.

There are other key advantages as well, including a close relationship with the Homes and Communities Agency (HCA), which provides finance at a relatively low 2.9 per cent coupon rate. Another attraction is that the interest element is rolled up with the principal to be paid only out of realisation proceeds.

It gets better because, of the six sites it operates on, three are close to Cambridge and within the Cambridge to Oxford arc supported by the National Infrastructure Commission review. It has taken a long time to reach the current stage whereby revenue from more advanced schemes is helping to finance the capital outlay at sites where expenditure has yet to peak.

One of the key sites where building has already started is Alconbury, a former Ministry of Defence (MoD) property near Huntingdon covering nearly 1,500 acres and with room to build 6,500 homes, of which 5,000 already have planning consent. On a phased basis, this includes three primary schools, a secondary school and other infrastructure such as surgeries and community centres. Working closely with local authorities pays off, and working with the existing local community (such as placing new facilities as close as possible to existing housing) also helps to oil the cogs.

As well as land for commercial use, within the portfolio there is room to build around 40,000 houses. As master developer, the company retains project responsibility, and licenses fully serviced plots of around 150 plots at a time. Urban&Civic receives a third of the cash when completed homes are sold, with an agreement for a minimum annual amount based on assumed fixed-price sales of 35 to 40 homes. Output is only just starting to gather momentum, but while there were just 52 plot completions in the year to September 2017, this is expected to jump to 315 in the current financial year and to 720 the year after.

And at Waterbeach, Urban&Civic has been appointed development manager by the MoD, and capital commitment is limited to £9.3m for the planning application. In return Urban&Civic will receive a licence agreement that could be worth as much as £42m, as well as an option to build up to 35 per cent of the residential element (2,275 homes) plus the entire commercial element.