Property Market Analysis

Hither Green Ltd

Outline

AspinallVerdi was instructed by Hither Green Ltd to undertake a Financial Viability Assessment (FVA) for an employment led mixed use residential development. The development comprised 978 sqm of flexible commercial space and 40 apartments on an island site in the River Thames.

The proposals involved demolishing the workshop units to make way for the mixed-use buildings with commercial space on the ground floor and apartments above. We liaised with Cost consultants Tompkins Robinson to determine the level of abnormal costs associated with the proposed development. It was concluded that there were substantial costs relating to the provision of specialised cranage and also the numerous river crossings required to move all the building equipment and supplies to the site.

Services Provided

AspinallVerdi provided the following services:

• Property market research
• Planning policy review
• Cost and Value Analysis
• Benchmark land value analysis (Existing Use plus Premium method )
• Development/viability appraisals (including sensitivities)
• Delivery  

Outcome

Following a thorough review, it was concluded that the scheme was unviable and could not provide any affordable housing due to substantial abnormal costs related with its island location and the need for market housing to cross fund the delivery of the commercial units. It was agreed with the client, as they would hold onto the commercial units, they could accept a reduced profit level to ensure the scheme could be viably delivered.

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