Development – Appraisals, Delivery Plans, Development Management, Partnerships and Regen Cos

We have a detailed understanding and experience of implementing major urban regeneration projects, acting for either the public sector or private sector.

We have key skills in bespoke financial modelling to support project development. This modelling is paramount to private developers, funding institutions as well as public sector organisations including: Local Authorities, Combined Authorities and Homes England.

Feasibility Studies

Bespoke financial modelling of all major mixed-use regeneration and development opportunities. We have a proven track record in modelling detailed cashflows with multiple funding streams over lengthy time scales using bespoke Excel and proprietary software packages such as Argus Developer.

Development Appraisals

This is the corollary of the feasibility study work where financial analysis can be provided to determine the Residual Land Value of a site for a given level of profit. The key is understanding the level of profit that is acceptable for a particular development project, together with the relevant measure (e.g. Internal Rate of Return).

Gap Funding Appraisals

We have particular expertise in gap funding appraisals based on long-term experience starting with English Partnerships in the 1990’s and working for successive regeneration agencies since.

We have bespoke cashflow models which can calculate the gap funding (e.g. conservation deficit) net of interest savings due to the grant draw-down. We can model multiple public sector funding stream simultaneously to ensure there is no double counting of match funding.

Sensitivity Analysis and Scenario Testing

Multiple variable sensitivity analysis to test the robustness of development propositions to changes in financial parameters. The analysis is based upon a detailed understanding of the advantages and limitations of the computer software and grounded in the context of ‘real’ property market risks.

Red Book valuations

Red Book valuation of development sites. We have a proven track record of residual appraisals and sensitivity analysis which is more in-depth for complex lending solutions. We are RICS Registered Valuers.

Development Funding

We work at the interface between private sector schemes and public sector investments. We have a proven track record in the preparation of business plans and the delivery of funding for both the private and public sector.

Developer selection

Acting on behalf of the public sector in order to identify and market attractive development packages to the private sector. We can advise how a development opportunity is likely to be perceived by the private sector and package schemes in order to deliver the required outcome.

Procurement

We have practical knowledge and experience of all procurement procedures working closely with eminent procurement lawyers.

Development Management and Implementation

The project management of complex development and regeneration schemes. This is at the inception / feasibility stage including planning, funding and site assembly. We hold the necessary skills and track record to understand the complex ‘critical path’ to deliver a successful regeneration project.

AspinallVerdi has a very experienced senior team in managing complex development and regeneration projects from inception through to start-on-site. This includes secondments into Local Planning Authorities and Development Director roles.

Business Plan preparation

The preparation of full business plans supported by detailed financial modelling and market analysis in order to access development funding. This can include the calculation of potential economic outputs. We have a proven track record in the preparation of business plans to access public sector funding – including the preparation of bespoke business plans for multiple funding streams in order to achieve economies of scale. We have Chartered Institute of Public Finance and Accountancy (CIPFA) accredited Business Case practitioners within the business.

Partnerships and Development Agreements

The negotiation of development agreements and shareholder agreements in order to procure development schemes and joint ventures. We have experience of handling complex negotiations including the establishment of KPI’s (Key Performance Indicators) and targets that are challenging, but achievable.

Bid/Tender management

The management and co-ordination of often complex procurement processes from a private sector tenderer perspective in order to deliver a successful proposal in the development/regeneration sector.

Development Optimisation

Our experience in development management has taught us to focus on the following aspects to optimise schemes:

• End User Focus – We focus on the end user – whether this is a residential purchaser or commercial tenant – the measure for successful projects is their attractiveness to tenants, purchasers and users.
• Sustainable Design – High quality design is integral to creating developments which will deliver economic, environmental and social returns over the long term. We work closely with architects, urban designers and engineers to deliver sustainable developments.
• Land/Site Assembly – We recognise that the value of development to landowners must be sufficient incentive to release the land for development in order for sites to be brought forward.
• Financial Viability and Funding – We work closely with the design team and cost consultants to value engineer all projects to maximise value and create commercially viable projects. We are also adept in securing public and private sector funding for projects.
• Planning Policy and Consents – We work at all levels of national and local planning to inform policy and project manage complex planning applications. We have extensive experience in making the economic viability case.
• Delivery Mechanism – We like to incentivise agreements with all parties to align interests and deliver successful outcomes. We are used to negotiating partnership agreements, joint ventures and development agreements etc. We are also keen to incentivise our development management fees.
• Community Engagement – Development relies on support from the wider community and we work in partnership with all stakeholders.