The KBI approach

A route to property income built to outlast a private tenancy.

We acquire homes that others overlook, in Hull, across the south and in Kent. We bring each one to the standard a housing association or care provider inspects for, then lease it to that organisation rather than to a private tenant. It is the familiar discipline of buy, refurbish, refinance and rent, applied with more rigour at every stage.

Before works begin, we establish which energy-efficiency support and reliefs apply, and we never price a deal on them: nothing is counted until it is confirmed in writing. Every opportunity must clear the five gates below before capital is committed. Most do not.

The right counterparties, the right standards, and a long view on every home we buy.

The capital cycle

Five stages, in order, every time.

  1. 01

    Acquire

    Source overlooked homes and negotiate from evidenced value.

  2. 02

    Improve

    Deliver a scope fixed before the offer, to the standard the counterparty inspects against.

  3. 03

    Let

    Lease the home to a housing association or care provider, on terms we have underwritten.

  4. 04

    Refinance

    Have the lender value the finished home, and release capital within our limit.

  5. 05

    Reinvest or exit

    Recycle capital only when the next home clears the same gates. If none does, the capital waits.

The KBI standard

Every deal has to earn its place.

Five gates. If one does not hold, we walk away.

  1. 01

    Price

    We buy below evidenced market value, never below an agent's opinion of it. The discount is measured against sold comparables on the same street type, and must exist before the refurbishment adds anything.

  2. 02

    Works

    The refurbishment is scoped and costed before the offer, not after, and includes everything the leasing counterparty's own inspection standard will require.

  3. 03

    Income

    The property must meet our income threshold on a rent the counterparty has quoted in writing. Until that quote exists, the number is unknown and the deal does not proceed.

  4. 04

    Cover

    The income must cover the borrowing with a margin, and do so twice: on the structured rent, and on the lower rent the home would achieve as an ordinary private let. Were the arrangement to end, the deal must still stand.

  5. 05

    Capital

    After refinancing, the capital left in the property must sit within a fixed limit, so that it can be recycled into the next home. Refinancing is not guaranteed at any loan-to-value.

Investor enquiry

Two ways to start.

Request the investor overview, or begin with a conversation with Kelly. Either way, the next step is the same: Kelly replies personally by the next working day.

Request the overviewGrant Bailey, Founding PartnerKelly Edge, Founding Partner