JLL Residential

Peabody Trust - Affordable Housing Valuation

Peabody Trust - Affordable Housing Valuation

Project: Valuation of a large affordable housing portfolio for a bond issue
Client: Peabody Trust
Date: Q4 2013


situation

JLL provided a robust valuation report of security underpinning £350 million of bonds issued by Peabody Trust and bought by a number of investors.  The purpose of the issue was to help finance Peabody’s future development.  The portfolio comprised just over 2,100 affordable homes in Greater London, including the former Crown Estate housing portfolio in Westminster and Hackney.

brief

To provide formal Red Book valuations of the portfolio, including external inspection of all properties and internal assessments of a representative sample.  The report was to be delivered within a short timescale with a fixed deadline for a draft for an investor roadshow in advance of the issue.

outcome

  • Instructed October 2013.
  • Valued each of the schemes in the portfolio on the basis of Existing Use Value for Social Housing.
  • Worked with solicitors to establish which properties could be sold outside of the sector and valued those units accordingly.
  • Prepared full detailed valuation report which was included in the offering circular.
  • All deadlines for the investor roadshow and bond issue date were met.