Welcome back to the UK Build to Rent Q&A series. Join us this week as we share our design focused Q&A with Alastair Mullens, Managing Director of Vertus at Canary Wharf Group.
Vertus is part of the Canary Wharf Group. Over the last 30 years the Group has serviced the world’s blue-chip corporate and retail tenants whilst undertaking the design, construction and management of the ever-growing Estate.
Canary Wharf Group has built this reputation by providing exceptional service through estate management, building management, public space management and security.
Canary Wharf’s new neighbourhood, Wood Wharf, will provide up to 3,600 new homes, 2m sq ft of office space, 350,000 sq ft of retail and leisure space and over nine acres of public spaces, squares and parks.
There will also be a GP surgery and a two-form primary school for 420 children.
Vertus manages all aspects of the build-to-rent developments on the Estate. The Vertus portfolio currently consists of three buildings, 10 George Street, 8 Water Street and Newfoundland, totalling 1,137 build-to-rent residential apartments.
Vertus manages the residential leasing and management of the buildings and the individual apartments. Vertus is dedicated to meeting the needs of its customers and residents by providing a superlative service, 24 hours a day and 365 days per year.
About
Alastair joined Canary Wharf Group in 2018, to establish the Canary Wharf Group’s (CWG) Build-to-Rent platform, Vertus. He is currently overseeing the delivery of three seed assets totalling 1,137 units, all based on the Canary Wharf Estate. The first new residential tenants moved in in February 2020. He is now working closely with CWG’s development team to design and envision the future phases of private rental product for the Estate. Over the last twelve years Alastair has gained a broad experience of the UK residential property market; initially in Residential Management before moving into Residential Development and then centering on the emerging Build-to-Rent market.
He spent 9 years with Hamptons International & Countrywide Group based in London and Hong Kong. In 2015 he returned from Asia to focus on Build-to-Rent lease-up delivery for various clients across London. His final role at Countrywide was as National Director of Corporate PRS & Build to Rent, during this time he oversaw the delivery of the group’s operational management platform. This included the delivery of two Build-to-Rent assets in the north-west totalling 488 units for the Vista fund, The Cargo Building in Liverpool and Pomona Wharf in Manchester.
Q: Given the unprecedented 24 months we’ve seen, how do you think the future of BtR design changed due to COVID?
AM: The pandemic has brought the importance of high-quality outdoor spaces to the forefront. We’re expecting to see higher-quality designs and more imaginative layouts of outdoor areas given how much difference they make to people’s day-to-day experiences and how indispensable they’ve become.
Q: What are the first design steps you take when trying to ensure a BtR development contributes to its wider community, as opposed to segregating tenants from it?
AM: It’s important to create physical links between the development and the surrounding area in the form of open green spaces, public art, as well as infrastructure, such as bridges connecting different parts of the neighbourhood.
Commercial elements can turn residential-led schemes into a community asset, a destination that’s open to both residents and the wider community.
Integrating commercial elements within residential schemes is another way of achieving that. A recent example would be the opening of Emilia’s Crafted Pasta in Wood Wharf, which now occupies the ground floor of our development 10 George Street. Commercial elements can turn residential-led schemes into a community asset, a destination that’s open to both residents and the wider community.
Q: BtR development design is forever evolving to match the current trends of today’s tenants. What do you see as being the key design trends that will emerge for the BtR sector over the next 5 years?
AM: I think we’ve entered a period of consolidation, where there’s a good selection of BtR properties that have stabilised in the market and are working successfully.
Part of this consolidation will concern the amenity offer and reaching the right balance. We’re already reviewing workspace provision in our buildings to ensure we have the right amount of space.
Parcel storage and parcel delivery management are two areas that will continue to evolve and be improved, particularly as more people shop online post-pandemic.
Many BtR buildings were designed four or five years ago, when no one expected there to be the number of Amazon parcels or Deliveroo deliveries that we have now!
I don’t see too much change inside of an apartment, but we would expect there to be a continued demand for greater internal space for desks and working from home areas.
Q: We have seen a rise in health & wellbeing amenities being offered to tenants. How do you think these can be provided at a manageable cost to the investor? And how do you think we can measure this?
AM: Firstly, health and wellbeing spaces and amenities don’t have to be huge. Of course, they have to be big enough that they’re not overcrowded every time a resident wants to exercise, but they don’t need to be enormous. The key to successful delivery is having these spaces managed by a professional gym provider, who then offers classes to residents for free. You can also maximise outdoor spaces for health and wellbeing activities, such as yoga classes, where associated costs are minimal.
Health and wellbeing can also be driven through the events programme. We have a resident that runs wellbeing sessions for other residents in the buildings.
For us, the Club Vertus app is an important tool in promoting health and wellbeing initiatives.
Q: We’re seeing an ever-increasing demand from the government, investors, and local councils for the BtR industry to contribute to handling the climate crisis. How do you see the design of a BtR evolving to match this requirement and is it possible to design a carbon positive building?
AM: The design of BtR buildings has been adapting to accommodate climate-friendly solutions.
Canary Wharf estate, for example, has the highest number of green roofs across its buildings than any other UK developer.
Green roofs have a number of benefits – they provide a rainwater buffer, purify the air, reduce the ambient temperature, regulate the indoor temperature, help save energy and encourage biodiversity – all of that in addition to being visually appealing
Q: Given then events of the past 24 months (i.e. the Covid pandemic), what have been the biggest lessons you’ve learnt both as an individual and with regards to your company?
AM: The pandemic has shown us the importance of community and made us discover a new appreciation for accessible day-to-day amenities – such as shops, restaurants, cafes – that many of us took for granted before. That explains why so many people have been flocking back to London after an initial rush to the countryside – we are social beings, who value the convenience that comes with living in established neighbourhoods.
A Big Thank You… to Alastair Mullens for taking the time to respond.
If you have any other questions regarding this interview, you can reach out to Vertus at Canary Wharf Group here.
Our content calendar has enough free space for one or two more contributors to this series. If you feel you would offer value and have experience in build to rent investment, design, management or ESG – contact us here.
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