Case Study Flashcards
What are Starwood Capital?
Private Equity company investing in companies that are not publicly traded (like JV into TSP). Starwood act as the private equity.
What is Plot 78 comprised of?
4 finger blocks
599 units
- 423 BTR
- 17 affordable
SoS in March 2026
What is Silvertown comprised of?
27 hectares / 66 acres
- 700,000 sqm resi
- 80,000 sqm office
- 14,000 leisure
- 5,500 cultural
- 6,500 retail
Who are the GLA?
- Govern London through Mayor and London Assembly
- Mayor is Sadiq Khan (Labour)
- Priorities of GLA are AH, affordable transport, air pollution, arts & culture, economy, safety & security, diverse communities coming together
- GLA Land and Property own
- Act as a Dev / Investor so go into JV to unlock development and AH
- Own 635 hectares
- Tom Copley is Deputy Mayor
- Rokhsana Fiaz is Mayor of LBN
Who would a target investor for this plot be?
- Living by Lendlease
- Quintain
- Grainger
- L&G
- Greystar
There is 30% less BTR in the market than in 2018/19, but the demand is higher (24 days typically to let, quicker than pre-pandemic)
What do you mean by exit deal?
- Amenity shows brand, whether it be fitness / convenience / wellness
- Operational costs like gym equipment maintenance / pool are expensive / repairs / running costs / promotional offers / launch events / marketing
What is guidance for comparable evidence?
RICS Guidance on Comparable Evidence in Real Estate Valuation (1st Edition, 2019)
What is Category A evidence?
Direct Comparables
- Identical transactions for which full and accurate info is available / offer available / asking prices
What is Category B evidence?
General Market Data
- Guidance rather than direct indication / databases / indices / historic evidence / demand & supply
What is Category C evidence?
Other Sources
- Transactions from other types / locations / other background data (interest rates, stock market returns cam indicate yields)
What are Obstacle Limitation Surfaces?
- Consented building heights under extant permission
- 19.9 AOD (above ordnance datum)
- If higher than this, breaches 171A Town & Country Planning Act (1990)
Why couldn’t you switch tenure?
Master Agreement states that 721 (10% buffer) must be delivered in Phase 1.
Have to deliver AH in Phase 1, it’s cheaper to do it now while building costs are lower than they are predicted to be in years to come.
The deal including grant for each plot, unit and size is determined (£200-£400k).
What is BCIS?
Building Cost Information Service
- Building costs predicted to increase by 15% in next 5 years
- Tender prices also predicted to increase by 19% (copper increasing due to its demand in data centres)
What value engineering did you undertake?
- Aluminium to composite windows
- Bespoke to standardised balconies
- Cheaper façade treatment
How would you improved?
- I would have undertaken qualitative feedback (higher level of service in line with Rule 2 of Conduct)
- Sensitivity analysis (looked at other development costs)
