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Funding Due Diligence

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We carry out due diligence on business cases and financial models for public sector funding. We act for central government, Homes England, Combined Authorities and National Lottery Heritage Fund / Historic England. We have acted on some of the largest infrastructure and regeneration projects with funding worth billions of pounds.

Market Failure

For any public sector intervention in the market, it is important to identify the market failure. The main market failures (from Homes England) are:

  • Coordination failure – for example, breakdown in relations between multiple scheme promoters / stakeholders preventing or delaying development. Are there multiple owners or ransom strips?
  • Public good / free rider problem – for example, the Local Planning Authority requires a significant amount of off-site infrastructure benefiting multiple scheme promoters.
  • Market power – for example, up-front infrastructure costs are of a scale such that the rate of return is not sufficient to attract large developers and prohibitive to smaller firms.

Institutional failure at local government level (planning inflexibility / uncertainty) – for example, uncertainty around the risk of securing consents prevents the site from being promoted through to consents.

Imperfect information (lack of first mover / price maker / market creator) – for example, sales and rental values in a particular submarket are unproven, preventing (or slowing) development despite demand for the scheme.

It is important to understand the business-as-usual case and explore robust options to ensure additionality in any public sector funding.

Due Diligence

Due diligence can be relatively ‘light-touch’ or a ‘deeper-dive’ depending on the circumstances. We always take time to familiarise ourselves with the business case and to understand the need for funding. We will inspect the site and the environs to check the facts on the ground. In order to ensure the business case assumptions are robust we engage in dialogue with the scheme promotor and raise written clarification questions to create an audit trail. We have carried out due diligence on various funding programmes for Homes England including due diligence on various Housing Infrastructure Fund (HIF), Brownfield Housing Fund (BHF) and Brownfield Infrastructure Land (BIL) projects.

We are retained on the Sheffield City Region JESSICA (Joint European Support for Sustainable Investment in City Areas) Fund which was established in 2013 and have carried out due diligence on over 20 schemes across the Sheffield City Region economy.

We have also provided due diligence on Heritage projects including for the National Lottery Heritage Fund and Historic England.

Finally, we provide due diligence services to Combined Authorities. We have experience of the various Regional Growth Funds, City Deals / Devolution, Local Growth Funds, Growing Places Funds, Business Growth Programmes, Brownfield Land Fund etc. Our work involves advising on the cashflow and loan/grant funding and conditions.

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 streams simultaneously to ensure there is no double counting of match funding.

Sensitivity Analysis

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.

Business Plan Monitoring and Evaluation

The monitoring and evaluation of projects against the business plan. This includes the ‘draw-down’ of public sector funding as work progresses on-site. We have experience of monitoring complex urban regeneration projects on behalf of both the private and public sectors.

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Other Core Services

We offer fully integrated planning, economic and development services covering all aspects of property regeneration from concept stage to start-on-site.

Our Clients

We advise a wide range of clients including:

Private Developers & House-builders • Landowners • Local Authorities • Combined Authorities • Homes England & Registered Providers

On behalf of Amber Valley, I would like to express grateful thanks to you all, for your hard work and expertise throughout the process and ensuring that we compiled a robust application, providing us with the best possible business case to secure funding for the town.

You have all been very professional and worked with our sometimes challenging set of Consultees and not least myself to provide a timely service and keep the project moving. I know that the changes to the extended project timeline and supplementary requirement to respond to the Covid situation has been protracted and I appreciate you sticking with us and maintaining your service and good humour throughout. Please pass on my thanks to your teams.

Joanne Bamford

Growth & Town Centres Manager  Amber Valley

Wirral Metropolitan Borough Council has employed the services of Aspinall Verdi, as lead contractor on two significant contracts that will form part of this evidence base. Specifically, these were a detailed housing market review of Birkenhead and a Whole Plan Viability Review.

All of this work has been to a very high standard, with excellent quality work. I have found the company to be excellent in the execution of all aspects of their contracts.
Aspinall Verdi provided us with information and advice that was at an appropriate level of detail to not only meet the requirement of a planning inquiry, but was also commercially realistic.

I have no hesitation in commending Aspinall Verdi as an Outstanding Small Practice of Chartered Surveyors.

Keith Keeley

Head of Regeneration Strategy  Wirral Metropolitan Borough Council

Aspinall Verdi has provided for us a range of property market, viability and delivery related advice on a succession of our development projects. All this work has been to a very high standard, carefully considered with excellent quality work.

I have found the company to be excellent and exceptionally diligent in the execution of all aspects of their work with us. The Aspinall Verdi staff, with whom I have worked, are extremely thorough, diligent and professional and have tailored their work to the needs of ourselves the client.

The advice provided is also mindful of the evolving sustainability agenda and the social impact of planning and regeneration policy. I have no hesitation in commending Aspinall Verdi as an Outstanding Planning and Development Consultancy.

Mark Kitts

Managing Director  Tawd Valley Developments

Tamworth Borough Council have employed the services of Aspinall Verdi, as lead contractor on two significant contracts over the past 3 years. Specifically these were a viability focused Masterplan on a large Town Centre regeneration site and the completion of a HM Treasury Green Book Compliant business case, for the Future High Street Streets Fund.

In my experience and that of my team I have found Aspinall Verdi to be excellent in the execution of all aspects of their contracts. The output delivered in both of our specific cases was carried out to the highest standard and quality. Aspinall Verdi also provided us with information and advice that was relevant, realistic and commercial and both contracts focused on what was actually deliverable and achievable under the market conditions.

Matt Fletcher

Head of Economic Development and Regeneration  Tamworth Borough Council

Working with Aspinall Verdi provided a good service and high quality technical data. Written material from Aspinall Verdi was good, with a number of addendums of the main assessment required to satisfy the Council as client and the local plan examination inspector in short time.

The Craven Local Plan was adopted in November 2019 and Aspinall Verdi has recently assisted the Council by providing important text on viability and procedures for the consultation draft supplementary planning document on affordable housing. I also oversaw this work.

In conclusion, I have no hesitation in recommending Aspinall Verdi, as a reliable, conscientious and ‘fit for purpose’ consultancy to provide a very good product on local plan viability assessment and related matters.

David Sykes

Planning Officer  Craven District Council

Working with Aspinall Verdi has been a transformative experience. Their true expertise in site development management coupled with a deep understanding of the local market, made a significant difference in our project. From the initial consultation, then acting as site agent all through to the final execution, their attention to detail, innovative solutions and collaborative support were evident in every step of the way.

They not only helped us maximise the potential of our site but also ensured that the project aligned with our vision. We would highly recommend Aspinall Verdi to anyone seeking a sound professional approach, stakeholder engagement and timely delivery from start to finish on any property planning or development type.

James Bolton

Langho Resale 

AspinallVerdi played a pivotal role in this commission, providing a Red Book valuation for our purpose-built schemes, which comprise a mix of cluster rooms with shared communal facilities and self-contained units of varying sizes. Their analysis considered the legal position of each scheme and assessed the impact of various investment scenarios on asset values. In addition, detailed marketing advice was provided, enabling us to make informed decisions that align with our strategic objectives.

AspinallVerdi showed professionalism, the ability to work collaboratively, and delivered to a high standard. The team was approachable, thorough, and highly knowledgeable throughout the process.

I would not hesitate to use AspinallVerdi services again or recommend them for any Red Book valuation, particularly those involving Strategic Asset Management Support.

Claire Ruff

Portfolio Analyst  Clarion Housing