|  Moorfield
Group classifies its corporate development capital business as the creation,
growth and management of a business opportunity 'in-house' i.e. managed
by Moorfield Group management. It is the
intention of Moorfield Group to create businesses of sufficient critical
mass to support their own management teams allowing for total
or partial exit through routes such as trade sales,
public flotations, re-financings etc. within a seven year period from
gestation.
This differs from private equity and venture capital opportunities
where Moorfield Group will ordinarily invest in other management teams
to establish and later realise value.
An example of Moorfield Group’s corporate development capital activity is: |
- Domain was established to focus on developing high quality affordable
accommodation for university students and key-workers (such as medical
students, doctors, nurses, and hospital workers). At many universities
throughout the UK there is an acute shortage of affordable quality accommodation.
Over recent years, the number of students in higher full-time education
has increased substantially, and university finances have been targeted
towards educational facilities and not the provision of living accommodation.
Key-workers from hospitals and other public sector bodies (eg the fire
service, the police, teachers etc) have also experienced accommodation
constraints due to the relatively low income of their profession.
- Domain was set up by Moorfield after careful analysis of the market and
the opportunity. The conclusion was that there was a significant gap
in a market where the number of students and key-workers seeking high quality
affordable accommodation was likely to increase and remain at a high
level.
- Moorfield project managed the development of all of its schemes from
identifying and acquiring the site, through design, financing, planning,
construction, marketing, opening and then operating the scheme.
- Sites were identified having undertaken detailed analysis of the cities
in which the universities and other higher education establishments are
based. This included a study of the quantity and quality of existing
accommodation, the number of students and where they currently live relative
to their place of study. The attitude of the university’s senior management
to a private sector provider of accommodation is also a material consideration
(as Domain may be in competition with the accommodation provided by the
university), as are the availability of suitable sites in close proximity
to where students study, together with the chances of success of any
development proposal in the local planning environment.
- A generic design brief was developed by Moorfield in conjunction with its
architects and quantity surveyor advisors. As a result, each scheme was
arranged in blocks of flats or apartments (clusters). Each cluster normally
comprised six fully furnished study/bedrooms, each with en-suite facilities,
and has LAN, internet and satellite TV connections. There was also a common
living area including a fully fitted kitchen. All the schemes are set in
their own grounds with full security, laundry and parking facilities.
- Domain comprised 7 schemes prior to its sale:
1. Atlantic Point in Liverpool was completed and opened in August 2000.
At 923 rooms, arranged in 164 flats in 10 blocks, it was the largest
scheme built.
2. Severn Point in Cardiff was completed and opened in August 2002.
It had 288 rooms and attracted students from four separate academic institutions.
3. Prospect Point, also in Liverpool, was completed and opened in August
2003. It had 565 rooms and is located opposite the largest teaching hospital
in the North-West of England. It had the active support of the hospital and
has been let to a combination of nurses, doctors and students.
4. Mill Point in Manchester was completed and opened in September 2004.
It had 712 rooms and is located in the city centre, close to a number of educational
establishments.
5. Trinity Point in Coventry was completed and opened in September
2004. It had 353 rooms and is located close to Coventry University.
6. Quay Point in Newcastle Upon Tyne was completed and opened in September
2005. It had 695 rooms and is located on the Quayside close to the University
of Newcastle and Northumbria University.
7. Cambrian Point in Cardiff was completed and opened in September
2006. It had 632 rooms and is located close to Cardiff University and the
Royal Welsh College of Music and Drama.
- In May 2006 the 7 schemes were sold to Liberty Living for more than £190
million, representing an IRR of 45% and a gross equity multiple of 4.5x.
- Since the sale of the business Moorfield has retained the right to the name
"Domain" and has continued to evaluate and advise schemes in various locations.
- In January 2005 Moorfield acquired a 50% interest in a scheme in Chelsea,
London for approximately £16 million and this provides some 150 rooms.
- A site in Baxtergate, Loughborough was acquired in January 2006 and
is located in the city centre. Planning permission is being sought for
a scheme of approximately 600 rooms.
- A site in Winchester, part of the former Royal Hampshire Hospital,
was acquired in December 2006. Construction has begun and the scheme
will be available for occupation for the 2009/2010 academic year.
For more details on Domain click the links below:-
Domain
http://www.domain.moorfield.com
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