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KIER PROJECTINVESTMENT

KIER PROJECT INVESTMENT

INTRODUCTION

Kier asset manages for local authorities and other public bodies to obtain maximum value from property holdings whilst providing improvements in day to day real estate management. Kier is the strategic asset manager for a diverse property portfolio and actively manages a growing number of public sector assets.

Our history also gives our customers the certainty that Kier is a long-term business partner who can be relied upon. Kier’s financial strength underlies our performance with further and continued investments being made across the property sector to expand our current activities.

We look forward to discussing future opportunities with you.

In KPI our focus has traditionally been on structured finance schemes to provide new public sector infrastructure projects such as schools, libraries, blue light and developments in the healthcare sector. The company’s experience gained through these numerous projects allows the team to seek new opportunities in new markets especially Student Accommodation and Healthcare.

Kier is in a rare position to deliver major property solutions through a fully integrated development structure. As one of the UK’s largest combined property, construction, and services companies, we have access to a wealth of resources and expertise. Kier can manage all aspects of projects, ensuring they are delivered on time and to budget, whilst achieving the highest standards.

Bringing together the skills and expertise from across the group we are able to enhance returns on property assets and work in partnership to create value and deliver regenerative schemes. Kier’s strong cash position also offers flexibility in the type of financial transaction that we can offer.

Pip Prongué, Director of Kier Project Investment

Kier Project Investment (KPI) sits within Kier’s Property Division which undertakes investment, development and asset management across a broad spectrum of property assets. This brochure highlights KPIs successes to date, introduces you to the team, gives an overview of our projects and sets out our current requirements.

KIER PROJECT INVESTMENT

Our Team 3

Case Studies:

01 Student Accommodation 05

02 Healthcare 07

03 Partnerships 09

04 Joint Venture - Commercial Development 11

05 Innovative Structures - Mixed Use Development 13

06 Structured Finance - Education 15

06 Structured Finance - Emergency Services 17

07 Residential Development 19

08 Renewable Energy 21

09 Construction Finance 23

Gallery 25

CONTENTS

OUR TEAM

Kier Project Investment’s strength is its people. Our team bring together a magnitude of skills, professions and experience in order to achieve our goals. Consequently, we have established a team of the brightest people and through close collaboration we offer our clients bespoke solutions across diverse fields.

With proven expertise in procurement, structured finance, developments and joint venture working, Kier is a partner you can trust.

N I G E L T U R N E R

M A N A G I N G D I R E C T O R

A F T A B R A F I Q

S E N I O R C O M M E R C I A L M A N A G E R

C H R I S H A Y W A R D

S E N I O R B I D M A N A G E R

G R A H A M F A I R B A N K

A S S O C I A T E D I R E C T O R

J A N E P A R T R I D G E

S P V M A N A G E R

A N N A P I G O T T

G R A D U A T E S U R V E Y O R

I A N B E N S O N

F I N A N C I A L A N A L Y S T

03 KIER PROJECT INVESTMENT

I A N C H A P M A N

F I N A N C I A L C O N T R O L L E R

P H I L W O O D S


S T E P H E N W A R D

S E N I O R B I D M A N A G E R

B O B G O R D O N - S T E W A R T

F I N A N C E D I R E C T O R

A L E X C A R R

S E N I O R F I N A N C I A L A N A L Y S T

C H R I S M c C R A V E

S E N I O R C O M M E R C I A L M A N A G E R

S H A H I D M E H M O O D

M A N A G E M E N T A C C O U N T A N T

L E E Z A O L D L A N D

T E A M S E C R E T A R Y

P I P P R O N G U É

D I R E C T O R

D U N C A N M A C D O N A L D


N I C K S H E P H E R D S O N

S P V M A N A G E R

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G I L L I A N S C A R T H

S E N I O R D E V E L O P M E N T M A N A G E R

D A R R E N K E N N E T T

P R O J E C T M A N A G E R

01 _STUDENT ACCOMMODATION Kier Project Investment is seeking prominent city sites for investment and development opportunities in student accommodation through its Joint Venture with Amber Infrastructure. Known as AK Student Living Ltd, the partnership aims to deliver 3,500 beds over the next five years, building on their recent successes including the 264-bed scheme in Glasgow which will open for students in time for the 2015/16 academic year.

Our aim is to deliver cost effective, high quality and innovative accommodation, and with the strong cash and resource capabilities of Kier and Amber we are well positioned to enhance our stake within this sector.

Our remit includes direct-let schemes and University procured accommodation projects that are secured through the OJEU and the competitive dialogue process.


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CASE STUDIES ▼SALFORDThis £78m University procured student accommodation project at the University of Salford’s Peel Park campus will provide over 1,300 student bedrooms. The facilities include single ensuite units with shared kitchen and common spaces and self-contained family units for postgraduates.

The new student village will offer a ‘home from home’ student experience within a sustainable environment. The proposal allows for the opportunity to give students a variety of social and academic spaces – including informal and formal learning areas; communal space that contributes towards promoting social interaction and the building of friendship; and open and private courtyards that allow for outdoor recreation, learning and socialising.

GLASGOWThis direct-let Student Accommodation project involves the conversion of two office buildings in the West End of Glasgow.

Comprising a total of 135 en-suite cluster bedrooms and 129 self-contained studio units, Clifton House and Stewart House are being refurbished by Kier Construction, with Practical Completion for both sites planned before the start of the 2015/16 academic year.

Kier Project Investment will appoint an operator to market and manage Clifton House and Stewart House on a direct-let basis.

02_HEALTHCAREKier Project Investment (KPI) is actively seeking investment opportunities within healthcare in order to build on our sector experience, supported by health expertise within the Kier Group. This includes investment opportunities in Private Patient Unit schemes, Care Homes and Strategic Estates Partnerships.

Private Patient Units/Services (PPU) offer KPI the opportunity to work in partnership with successful NHS Trusts in order to procure a specialist healthcare service whereby customers can receive the best in patient care and facilities. Working alongside specialist healthcare providers in the private sector enables KPI to complement a Joint Venture or consortium proposal by bringing a wealth of investment, structured finance, and public sector partnering experience.

With an ageing population throughout many parts of the UK, KPI is seeking opportunities to invest in private care home projects, in addition to any public/local authority partnership schemes. With a variety of delivery models available to public and private companies, KPI takes a flexible approach to investment opportunities and can adapt our proposal to suit the needs of a particular scheme.


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CASE STUDIES ▼GARRETT ANDERSON CENTRE, IPSWICHThe Garrett Anderson Centre provides a 9,000 sqm extension to the existing acute Ipswich Hospital. The four-storey building provides a new Accident and Emergency department, consisting of treatment rooms, resuscitation rooms and x-ray rooms; a Critical Care department; a Day Surgery and a Short Stay Ward.

The facility was built by Kier Construction, with Kier Services providing 24/7 Engineer Support, Hard FM, a Helpdesk Facility, a Lifecycle Management Programme and Utilities services.

HINCHINGBROOKE TREATMENT CENTREThis project involved the provision of a state-of-the-art treatment centre at Hinchingbrooke Hospital, providing a full range of diagnostic and clinical support services. The Centre provides diagnosis and treatment for 50,000 patients each year, and won the ‘NHS Innovation Award’ in the Design & Build category.

The two-storey, 91,800 sq ft facility was built by Kier Construction, with Kier Services providing a full range of non-clinical services, including cleaning, catering and portering.

GREENWICH CARE HOMESGreenwich Care Homes provides three Neighbourhood Resource Centres for the elderly population of Greenwich. It comprises the provision of fully serviced care accommodation at three sites, with a total of 167 beds, intermediate care and day care facilities for the residents. The care and hotel services are provided by Sanctuary Care Ltd, with the maintenance and lifecycle services being provided by Kier Services for a 30-year concession period.

03 _PARTNERSHIPS Kier Project Investment is looking for future partners who require equity and development expertise to help realise the potential value of their disposable assets.

With access to Kier Group cash, the covenant to secure cost effective debt, and a proven track record of developing successful, market facing schemes, KPI is well placed to maximise outcomes in terms of regeneration or estates rationalisation.

We can also bring the extensive experience of the wider Kier Group to bear in order to provide fully integrated partnering solutions, including construction delivery and facilities management. At the same time we recognise, particularly with our public sector partners, that full market testing of our joint venture supply chains is an effective way in which to demonstrate value for money. We are happy to lead the procurement process.

Within all of our partnerships, whether or not they are public or private sector, we work collaboratively and transparently in order to achieve shared goals.


CASE STUDIES ▼WATFORD HEALTH CAMPUSThis major mixed use project will be delivered through the local asset backed vehicle (LABV), which was formed in June 2013 to deliver the £240m Watford Health Campus.

This is a 20 year partnership between Kier, Watford Borough Council and West Hertfordshire Hospitals NHS Trust.

Utilising Kier Group’s development expertise, ability to invest equity and strong covenant to secure cost effective debt, Kier is working with its partners to regenerate 70 acres of land in west Watford.

Developing a flexible, market facing masterplan with a mix of uses will maximise public sector land value and LABV returns which in turn will support much needed reinvestment in infrastructure and land remediation.

The partnership will see the delivery of 375,000 sq ft of mixed use including: 680 homes; 150,000 sq ft of office space; a 25,000 sq ft foodstore; 50,000 sq ft of neighbourhood retail; 117,000 sq ft of light industrial space; a 80 bed hotel, and new road and green infrastructure.

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04_JOINT VENTURECOMMERCIAL DEVELOPMENTIn addition to our ability to invest and offer structured finance solutions to partners, our position within Kier’s Property Division enables us to deliver a range of property lead services from development management and project delivery through to asset and estates management on our larger joint ventures.


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CASE STUDY ▼FOUR ST PETER’S WATERSIDE, NORTHAMPTONKier Property has been selected by Northampton Borough Council as development partner to deliver the regeneration of the St Peter’s Waterside scheme as part of the Northampton Enterprise Zone.

FOUR Waterside is a 225,000 sq ft development of high quality office buildings which will create a new business quarter in central Northampton and stand as a landmark scheme in the town for many years to come.

The site will be redeveloped to offer occupiers and their staff a great working environment, close to all public transport links and amenities. The ‘FOUR’ buildings ranging from 27,000 sq ft to 87,500 sq ft will provide high quality offices in an attractive waterside setting creating an environment where businesses can excel.

The FOUR Waterside development is central among Northampton’s ‘Big Six’ regeneration projects under the banner of Northampton Alive, creating a positive economic impact for new and existing businesses, landowners and residents. The site will be part of an enhanced gateway into Northampton complimented by the ongoing regeneration of Northampton railway station, and the University’s adjacent Innovation Cubebuilt by Kier Construction.

05 _INNOVATIVE STRUCTURESMIXED USE DEVELOPMENTKier has the ability to deliver mixed use solutions for our customers to ensure that they achieve the best value for their assets. This allows the returns made to be used to fund and deliver completed property solution for occupiers. Often a mixture of uses can bring more value and the higher value users can pump prime the rest of the site. Part of Kier’s attraction in this market is our ability and experience to work across all sectors whether it be offices, retail, industrial or residential. In today’s market it is becoming more important to create mixed-use communities.


CASE STUDY ▼ORDNANCE SURVEY In 2010, Kier delivered a new freehold 175,000 sq ft headquarters for Ordnance Survey in Southampton.

The new headquarters achieved a BREEAM ‘Excellent’ rating and enabled Ordnance Survey to introduce new working methods for its staff. The Kier team worked very closely with Ordnance Survey and its advisers to ensure that the new building met all the necessary occupational requirements, and utilises the space available in an efficient manner.

The development included an acoustic wall parallel to the buildings front elevation, to minimise noise from the adjacent M271 motorway. Whilst this feature increased build costs, it reduced background noise, thus allowing a more sustainable form of mixed mode ventilation. The cost was offset against there being no need for a fully integrated air conditioning system.

A key factor of financing this development was the ability of Kier to maximise value from the existing estate to part finance the new headquarters building. By concluding a single transaction with Kier for both the new headquarters and disposal of their existing site, Ordnance Survey were able to avoid ‘value leakage’.

The existing estate had office and industrial buildings and Kier managed to secure planning permission for a residential led mixed use scheme.

Kier also explored life cycle costing and long-term maintenance with the occupier, in order to influence plant and equipment specification ahead of occupational fit out.

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06_ STRUCTURED FINANCEOur financial strength and diverse business streams enable us to provide investment for ambitious public sector projects.

Our investment team manages our interests in serviced assets procured under structured finance and government partnerships, including the Private Finance Initiative (PFI). Kier acts as promoter and developer, then as equity investor and manager.

Kier offers an integrated solution that draws on our Group’s wider expertise to offer a complete package to clients: investment, construction and facilities management services.

This integrated approach has been utilised to operate PFI facilities in sectors such as: education, emergency services, health, libraries and housing, using long-term partnerships with like-minded service organisations.


CASE STUDY ▼EDUCATION

KENT SCHOOLS BSFThis project involved the delivery of 11 Secondary Schools across North Kent. Three of these schools were PFI facilities, which were delivered in parallel over an 18 month construction period by Kier Construction and are maintained by a team from Kier Services.

Within the LEP, Kier Project Investment were responsible for and delivered multiple obligations including town planning approvals, sustainability matters through design, FF&E agreements and School ICT requirements which were delivered to each school in line with each unique ICT Strategy.

Under our Strategic Partnership Agreement with Kent County Council, the LEP also delivered significant numbers of training opportunities, school curriculum sessions and community projects.

NORWICH SCHOOLSThis £79m educational project involved the delivery of six new schools for Norfolk County Council. The schools, built by Kier Construction, were delivered over a phased programme to align with Norfolk’s school estate reorganisation.

The schools were designed to facilitate community use, forming a focal point in the local communities. In addition to this, the facilities included photo-voltaic cells to generate 10% of the energy load through renewable sources.

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06_STRUCTURED FINANCECASE STUDY ▼EMERGENCY SERVICES – FIRE LONDON FIRE BRIGADEThis project involves the design, construction and maintenance of nine community Fire Stations across London on behalf of the London Fire and Emergency Planning Authority.

This project is being delivered by blue3, a consortium of Kier Project Investment and DIF. Construction work is being carried out by Kier Construction, with hand over due between autumn 2014 and early 2016. Kier Services will maintain the stations over a 25-year concession period.

GLOUCESTERSHIRE FIRE AND RESCUE AUTHORITYThis project comprised four new community fire stations in Gloucestershire. The locations of the new stations were selected to improve average response times to emergency calls.

There was a major focus on reducing and preventing accidents through a new Community Life Skills Centre. The Centre, which is used by communitiy groups across the county, provides a range of practical risk scenarios.

The project was delivered by blue3, a consortium of Kier Project Investment, Carden Croft and Reliance, and the new facilities were delivered by Kier Construction.

CASE STUDY ▼EMERGENCY SERVICES – POLICE

NORFOLK AND SUFFOLK POLICE INVESTIGATION CENTRESThe six PICs in Norfolk and Suffolk were delivered by Justice Support Services, a consortium comprising Kier Project Investment, Uberior Infrastructure Investments and Reliance Secure Task Management. Kier Construction built the six centres, with Tascor delivering the FM services.

Providing 140 detainee cells, forensic and photographic facilities, interview rooms and facilities for the Custody Investigation units, these centres allow specialist police officers, staff and investigators to question suspects and hold them in custody under one roof.

Each PIC has been designed and built with high levels of thermal insulation and external walls to reduce air leakage, and ground source heat pumps help to regulate temperatures in the buildings. Other sustainability features include roof mounted solar panels, low water use fittings and low energy lighting and equipment.

NORTH KENT POLICE HEADQUARTERSThis three storey building provided a new divisional headquarters in Gravesend as part of the renewal of the Police Authority’s old Victorian Estate. The building includes accommodation for up to 472 officers and staff and a custody suite of 40 cells.

This project benefits environmentally from a geothermal heat pump to aid space and hot water heating, and has been sensitively built due to the close proximity to a local abstraction point.

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07 _RESIDENTIAL DEVELOPMENTKier Project Investment, as developer, can facilitate the regeneration of housing across the whole of the UK through private land acquisition, OJEU procurement or as a panel member of the HCA Development Partner Panel (DPP), covering the whole of the UK but excluding London, and the GLA London Development Panel (LDP), covering London.

Kier are able to deliver mixed tenure sites – Market Sales, Private Rented, Affordable Rent and Target Rented properties acting as developer for either individual purchasers or Institutional Investors where funding or construction is challenging.


CASE STUDY ▼WOKING HOUSINGThis project is for a single site mixed-tenure development of 373 homes. 224 homes will be new social rented homes for Woking Borough Council (WBC) under the PFI Housing contract, with 149 private sale homes part funding the development. All homes have been designed to achieve Lifetime Homes standards and Code for Sustainable Homes Level 4.

The SPV (Evolution) is a 50:50 arrangement between Kier Project Investment and Thames Valley Housing, who will be responsible for both housing management and repairs, and maintenance. The PFI contract term is 28 years.

ENFIELD SMALL SITESThis scheme, secured through the HCA DPP framework, consists of 94 dwellings to be built over seven sites to the north of the London Borough of Enfiled.

The tenure split is 37 affordable rent & shared ownership with the remaining 57 units being private rented (PRS). Kier, acting as Developer, negotiated a JCT Design and Built contract with an offsite manufacturer, Climate Energy Homes, in order to deliver all 94 dwellings in 60 weeks.

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08 _ RENEWABLE ENERGY Following the successful joint venture with Biogen, KPI continues to seek investment opportunities within the Renewables/Clean technology sector. This includes investment opportunities in Solar PV (Domestic and Commercial) schemes and financing Energy Services to generate energy savings. We are seeking partners with sector experience to Joint Venture on behalf of a range of private and public sector clients.

With the cost of power rising and legislation changing, smart investment in building design and management will allow clients to make savings across their estate. Our expertise of managing assets, delivering value from property portfolios and financing means that we can work across a broad client base and deliver best value (Public and Private Sector).

KPI is able to create assets with a significant tradable value in the secondary market. In our development role, we are able to introduce the relevant infrastructure to provide power across a large site for industrial, commercial and residential clients whilst securing income from export, power purchase agreements and standing charges.

CASE STUDY ▼BIOGENIn August 2012 Kier Group invested £24.4m in Biogen, a leading company in the anaerobic digestion industry.

Biogen designs, builds, owns and operates commercial scale food waste anaerobic digestion (AD) plants, which process food waste to generate renewable energy and a valuable biofertiliser for farmland. Biogen source the food waste from households, high-street supermarkets and food manufacturers. This food waste is then put through the AD process, generating a methane-rich biogas which is converted into renewable electricity. What’s left is a valuable liquid crop biofertiliser which is used on local farmland. Biogen currently has the capacity to process over 145,000 tonnes of food waste per year.

Since Kier invested in Biogen the number of operational plants has increased to four. In addition to the two existing plants in Northamptonshire and Bedfordshire, a plant has been built in North-West Wales for Gwynedd Council and North East Wales for Denbighshire County Council. A further three plants are under construction in Hertfordshire, Warwickshire and South Wales.

Biogen can efficiently manage the food waste element of Kier street collection contracts.

KPI has invested in photo voltaic (PV) panels which convert sun light into electricity; there are units in Harlow and Tenbury Wells in addition to panels in place on Kier offices.

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09_ CONSTRUCTION FINANCE Kier Project Investment has utilised its significant investment experience to develop bespoke in-house solutions to meet our client’s funding requirements.

Kier will provide finance to part fund development costs for Kier delivered projects which have a clear exit strategy. We can offer competitive finance based on blended returns of finance income and construction profit, enabling otherwise difficult projects to become viable.

In the past year, Kier has completed loan agreements relating to three projects with a construction value of c. £39m and lending of c. £25m across residential, commercial office and industrial developments.

In addition to Kier utilising its own cash we have also recently completed a debt wrap which provides flexible finance through the use of our equity and bank funding, guaranteed by the strength of our balance sheet.



Hairmyres Hospital

Neath Port Talbot Hospital

Bournemouth Library

Prospect Park Hospital

Greenwich Care Homes

Hitchingbrooke Treatment Centre

Oldham Library

Oldham Schools

North Kent Police Headquarters

GALLERY

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Kent Schools BSF

Gloucestershire Fire & Rescue

Watford Health Campus

Staffordshire Fire

London Fire

Woking Housing

St Johns School

Ordnance Survey

Salford University Accommodation

CONTACT_Kier Property Ltd 6 Cavendish Place London W1G 9NB

t 020 7462 2750 w kier.co.ukw trade-city.co.uk

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