Description
The build-to-rent sector (BTR), or private rented housing sector (PRS), is an emerging property investment asset class in the UK and Scotland. You are advising an institutional property investor which is considering the potential to diversify its traditional property portfolio into the Build to Rent / PRS sector. To support your advice: a) Assess the history of Build to Rent / PRS as a property asset class overseas. Appraise the developer’s and investor’s positions in this market sector. (20 marks) b) Assess the background to Build to Rent / PRS in the UK from both policy and property market perspectives. (30 marks) c) CriticallyappraisetheinvestmentpotentialforBuildtoRent/PRSasa property asset class, using the investment qualities approach covered in the module and including the potential investment returns and risks. Compare the returns with the returns achieved by the main vehicles available for investing in commercial property over the last 10 years. (30 marks) d) Critically assess a Build to Rent / PRS case study of your choosing and make your investment recommendation to the investor. The case study should be a development project which has either been completed or is proposed1. Your appraisal should consider potential development costs and rental income / returns for the proposed scheme, based upon general, publicly-available data. (20 marks)
