Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance and disclosure
• Responsible investment
• Working collaboratively
• Meeting our legal obligations

Environmental Achievements

• Develop a mechanism for estimating and understanding our greenhouse gas Scope 3 (“GHG”) emissions, as well as further documenting GHG emissions within our control, to identify potential reductions and support the development of our approach towards carbon neutrality.
• Seek opportunities to reduce the environmental and social impact of our developments throughout construction and their operational life and embed opportunities to enhance the surrounding environment and communities.

Social Achievements

• Regularly engage our stakeholders on ESG risks and opportunities, providing support and guidance where possible, in order to create sustainable outcomes for the benefit of our stakeholders, the communities in which we operate and the environment.
• Engage regularly with the communities in which we operate in order to understand their changing needs; encourage architects and designers to focus on enhancing the living environment for our communities, thus designing spaces that promote diversity and inclusion to create vibrant communities; and work to ensure the health and safety of the community which is a fundamental consideration of every decision we make.
• Strong employee engagement through regular team meetings and informal discussions; fair employee remuneration practices which mean our staff receive competitive pay for the same or similar jobs, qualifications and experience within the market; implementation of robust health and safety procedures to manage our key risks in order to create a proactive safety culture; and commitment to being an equal opportunities employer and ensure the recruitment, selection, training, development and promotion of individuals is on the basis of their qualifications, experience and performance.

Governance Achievements

• Robust and effective governance is the foundation for operating in line with our fiduciary duty and the applicable regulations. It is also fundamental for meeting the commitments we make to ourselves, the environment and to all our stakeholders.
• Carry out our business fairly, honestly and openly by combating bribery, corruption and fraud; recognise and proactively manage the risks we face in relation to data protection, privacy and cybersecurity by implementing robust systems and regular staff training; respect our shareholders’ rights by operating transparently and ensuring we communicate openly and in a timely manner; and ensure fair executive compensation which means our executives receive pay arrangements in line with market standards.

Climate Goals & Targets

Environmental Challenges

• Impact of a sharp uplift in interest rates and increasing investor caution has resulted in a reduction in property values across all sectors, with yields increased to reflect the higher interest rate environment.
• Delayed completion of the development, due to various material and contracting issues, resulted in the events operation being unable to take advantage of the late summer and Christmas trade in 2022. This delay, when compounded by the phased opening, intentional overstaffing as operations were fully tested and margins being squeezed as a result of continuing inflationary pressures limited the gross profit in the year.
• Planning delays, increased finance costs and construction cost price inflation particularly associated with the marine infrastructure works have detrimentally affected the residual value of the proposed development at Holyhead Waterfront.

Mitigation Strategies

• The construction of the student accommodation development is now fully funded. The development is progressing on-time and on-budget, with completion planned for May 2024 to enable its letting to the September 2024 Nottingham university intake.
• The Group has incurred net operational and administrative losses, excluding depreciation, of £4.2 million in the year as we seek to continue the transition of our initially consented development plots at The Island Quarter to income-producing assets.
• The Group entered into a new facilities agreement with Barclays Bank PLC in December 2022 comprising a development facility and an investment facility (together the “facilities”) up to £47.5 million in aggregate. The facilities will enable completion of the construction and subsequent letting of the 693 bed student accommodation development.
• The cash deposits of the Group were £2.7 million at 30 September 2023. However, the liquidity of the Group has materially increased since the balance sheet date by way of the placing in October 2023 of 5 million ZDP shares of £1 each in addition to the signing in November 2023 of a £12 million debt facility with A.S.K. Partners Limited (“ASK”), of which £5 million has been drawn at the date of signing these financial statements.

Supply Chain Management

Responsible Procurement

• We will constantly work on improving indoor environmental quality, and minimising energy and water demand and embodied carbon, investigate onsite renewable energy and promote sourcing of sustainable materials in our property acquisition and management activities

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance and disclosure
• Responsible investment
• Working collaboratively
• Meeting our legal obligations

Environmental Achievements

• Winfield Court is expected to achieve a “very good” classification under the BREEAM green building sustainability rating system.

Social Achievements

• Regular engagement with communities to understand their needs.
• Focus on inclusive design in developments.
• Commitment to fair employee remuneration and robust health and safety procedures.

Governance Achievements

• Regular review of Board composition and skills by the remuneration committee.
• High ethical standards and compliance with relevant codes of conduct.
• Robust systems for data protection, privacy, and cybersecurity.

Climate Goals & Targets

Environmental Challenges

• Unexpectedly competitive local lettings market for student accommodation.
• Significant reduction in international students attending UK universities.
• Increased operating costs at Winfield Court.
• Higher employment taxes.
• Higher construction costs.
• Softening of yields in PBSA, BTR, and life-sciences sectors.
• Delayed reduction of interest rates and subdued investment market.

Mitigation Strategies

• Working with managing agents to improve lettings for Winfield Court.
• Creative expansion of operations and offerings at 1 TIQ.
• Material improvement of margins at 1 TIQ.
• Close monitoring of overheads and plans for further reduction.
• Credit approval from Barclays to restructure and extend the development loan for Winfield Court.
• Discussions with potential investors to secure funding for TIQ development.

Supply Chain Management

Responsible Procurement

• Promoting sourcing of sustainable materials

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events