FFT Successfully Completes Hyde’s 2019/20 Stock Rationalisation Programme

the project

Housing association The Hyde Group, working with FFT, identified a geographically diverse portfolio of around 900 social housing properties selected on the basis of strategic performance indicators. Tactical advice and a fully comprehensive service were needed to complete the sale of the portfolio against a time-stretched and geographically challenging situation.

our role

FFT was appointed by The Hyde Group as stock rationalisation consultants and project managers. Our role was to provide a comprehensive cradle-to-grave service. This included pre-marketing due diligence; marketing; the compilation and release of a sales prospectus; evaluation of competitive tenders, and managing transactions through to completion.

the challenges

FFT was first appointed in late summer 2019. The client, however, had an objective of completing the sale of the portfolio within the financial year. As this process would usually take 12-15 months, the turnaround was going to going to be tight. What’s more, the highly diverse geography involved meant that the market for the entire portfolio as a single transaction was going to be limited.

the solution

Despite the challenge of limited time to carry out pre-marketing due diligence, FFT was able to review the portfolio against the strategic rationale and identify some key substitutions of stock. This would ensure that the disposal did not conflict with other strategic drivers, whilst maintaining a clean legal and operational portfolio.

In order to work to the client’s tight timescales, we devised a proposal to replace the traditional independent stock condition surveys. This incorporated a desktop validation of client stock condition data, including a bespoke cost re-forecasting. Three purchasers were identified through a highly competitive marketing process, and the sales were completed within the project timescales, exceeding financial targets.

added value

Our approach significantly exceeded Hyde’s objectives, and delivered to an extremely tight programme despite the challenges and multiple transactions. Through understanding the client’s priorities around price, deliverability and complexity, we were able to run a “Best and Final Offer” process to secure improvements over original offers and stitch together a patchwork of bids across all lots to optimise value for the client.

For more information on our stock rationalisation services, or advice on buying, selling, or identifying opportunities, contact Stuart May, Head of Housing Consultancy – E: [email protected] T: 07815 960390.