Fizzy, the wholly owned subsidiary of Thames Valley Housing (TVH), and the first company in the UK designed specifically to service the needs of young professionals seeking accommodation in the private rented sector (PRS), announced that it has received a new capital commitment of up to £200m. The capital commitment has been made by Silver Arrow, an investment entity ultimately owned by the Abu Dhabi Investment Authority (ADIA).
John Garrity, Group Chair of Thames Valley Housing commented, “As the PRS market is growing quickly with new players emerging all the time, it was a specific objective of ours for Fizzy to have access to a larger capital source within the first two years of operation. To have achieved this is rewarding as it means that that profits generated from this venture are invested back into the association to meet our social purpose. We now look forward to Fizzy proceeding rapidly towards its goal of building a large portfolio of quality private rental accommodation”.
Geeta Nanda, CEO of Thames Valley Housing commented, “Being one of the first to identify the potential of the PRS, we are naturally delighted to know that the Fizzy concept is as attractive to institutional investors as it was to us when we made our initial investment. This, we believe, is largely to do with the clarity of Fizzy’s focus, which delivers a great solution to the housing needs of a defined demographic.”
Following the capital commitment from Silver Arrow, Fizzy has capital available to significantly increase the speed at which it can grow its portfolio. Fizzy will continue to purchase new buildings from developers, as well as undertaking the development of its own apartment buildings.
Fizzy was launched in February 2012 with seed capital of £30m provided by TVH. In January 2013 Fizzy secured a further £40m of debt funding from Macquarie Capital who have since assisted Fizzy to identify a suitable institutional partner.
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Notes to editors:
Thames Valley Housing Association:
Thames Valley Housing Association (TVH), based in Twickenham, South West London, was founded in 1966. The association owns, manages and administers loans for over 14,500 properties in London, Berkshire, Surrey, Hampshire, Oxfordshire, Buckinghamshire, Wiltshire and Sussex and has approximately 1000 properties under construction. TVH provides affordable rented homes, shared ownership, market rent, student and key worker accommodation, working with eight NHS Trusts. In year 2012-13 the association provided homes for over 1000 households and generated a financial surplus of £14.8 million.
Fizzy is wholly owned by TVH who, on behalf of the new company, will collect the rents and cover management fees, service and maintenance charges from this income.
Secure rental income streams make the project very attractive to developer and bank investors. Developers will have the opportunity to invest into the scheme through offering rental stock assets in return for equity, which will generate an income.
Brand marketing of the property portfolio will be financed by Fizzy. The aim is to provide a brand associated with high-quality private rental accommodation.
Fizzy flats offer a range of facilities and packages geared towards the ‘rentysomethings’ living in rented accommodation. Among the stand out features offered, tenants will benefit from the following:
- An onsite dedicated property manager who will be able to sort out any tenancy or maintenance problems.
- An online portal for all residents.
- Fizzy flatmates for those looking to flat share. Log on to www.facebook.com/fizzyliving to find like-minded people who are looking to live in the same location quickly, easily and securely.
- Fizzy furniture packs which cater to all budgets are available to tenants as an optional extra.
- Utility bills will be separately charged at a fixed monthly rate which will allow tenants to manage their monthly budget efficiently and effectively. Any under/over spend will be reconciled at the end of each year or tenancy.
- All flats come with free 2GB broadband package, freeview TV and a cable phone for cheap landline calls. Contract free upgrade media packages are also available from Fizzy.
In Spring 2012, Fizzy acquired its first residential tower of 75 apartments at ECf’s Vermillion scheme in Canning Town.
Close to Canary Wharf and within a few minutes’ walk from Canning Town station, Vermilion is developed by ECf (English Cities Fund), a joint venture between Muse Developments, the Homes and Communities Agency and Legal and General. The apartments at Fizzy Living’s residential tower comprise 38 one-bedroom, 35 two-bedroom and two three-bedroom apartments.
All Fizzy apartments at Canning Town were let within three months of its launch.
Following the success of the launch of its first apartment block in Canning Town Fizzy acquired its second development in Epsom, offering 63 one and two bedroom apartments.
The Epsom apartments offer an outstanding location, adjacent to the station and with a Tesco Metro, Costa Coffee and Virgin Active health club either within the building or just moments away. With a train to Waterloo every 15 minutes, which stops at Clapham Junction and Vauxhall for connections to overground and the tube, the area is extremely popular with commuters.
All the apartments were let within six months of its launch in late February. As well as proving popular with its target market of young professionals, the Epsom development has attracted families and divorcees as well.
Fizzy acquired its third site, purchasing 45 units from Bellway Homes within a single building at the New Festival Quarter development in Poplar.
The scheme is scheduled for completion in February 2014 and will comprise a range of one, two, and 3 three bedroom flats, with rents starting at £1,300 pcm for a one bed flat, and £1,733 for a three bed. On-site facilities will include a gym, concierge, underground parking and landscaped gardens. The site offers outstanding transport connections with Langdon Park and All Saints DLR stops less than a 5 minute walk away, and a 15 minute walk to Canary Wharf. Attractions such as Westfield shopping centre, the O2, and Excel Exhibition centre are all within easy reach by public transport.