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Forward funding of Extra Care apartments, Rochdale

  • Forward funding of 37 x 1-bed new build Extra Care apartments for vulnerable adults and older people at the Ladybarn site in Rochdale working with the registered provider Partners Foundation Limited (PFL)
  • Homes England grant of c.£2.3m secured by PFL to support development
  • Innovative and alternative accommodation option for older people living with care needs
  • The development will be subject to a Nomination Agreement with Rochdale Borough Council
  • Start on site was achieved in March 2018, target completion late 2019

Background

This opportunity is the first scheme to be delivered within a pipeline of schemes exclusive to FAH that make up the Appi Projects. PFL has been working with Rochdale Borough Council’s Adult Care and Support department, and Strategic Housing department to develop the plans for this Extra Care and Supported Living Scheme for older people and vulnerable adults (including people with learning disabilities).

The proposed development is for the erection of 37 x 1-bed Extra Care and Supported living apartments in two blocks in Milnrow, Rochdale. The main block consists of 31 x 1-bed apartments along with ancillary spaces (including restaurant/café and communal lounge, with staff facilities and external car parking spaces) and a separate block of 6 x 1-bed apartments along with staff accommodation for high dependency vulnerable adults with learning disabilities.

The development is being built by Engie Regeneration. At practical completion PFL will take occupation of the property in line with the signed Lease and provide housing management services. Future Directions, a local values-based support provider, will provide care and support services through a contract procured by the Council.

The scope of the project fits well with the social aims of FAH. A social screen completed in line with the FAH Social Performance Assessment Framework indicated a score of 430 out of 500, well above the hurdle level of 300. The Good Economy Partnership independently undertook a full social assessment. The report confirms that the project delivers an innovative and alternative accommodation option for people living with care needs which fulfils the social need to expand available options as evidenced in the Council’s Housing Strategy.

Deal summary

  • Acquisition through forward funding of 37 x 1-bed Extra Care and Supported living apartments in Milnrow, Rochdale.
  • Lease agreed with PFL for a term of 20 years with further 20-year extensions.
  • The transaction will be supported by an affordable housing grant of £2,273,465 from Homes England that has been allocated directly to PFL.
  • Provision of social benefit through the housing and care of older people and vulnerable adults in a Council area listed as one of the 20 most deprived local authorities in England.
  • The development will be subject to a Nomination Agreement with Rochdale Borough Council.
  • Property due diligence and property valuation completed by JLL.
  • Legal due diligence completed by Devonshires.
  • Start on site was achieved in March 2018, target completion late 2019.

Summary:
This investment facilitates the delivery of Extra Care and Supported Living apartments for older people and vulnerable adults providing significant social benefit by offering greater independence and dignity than institutional care. The Project combines excellent social delivery with an expected robust financial outcome.