Case Study Questions Flashcards
What is the difference between a residual valuation and development appraisal?
- Development appraisal is a tool used to value a potential development, using the clients inputs / assumptions
- Residual valuation is the process of valuing a proposal by using market inputs
When did you carry out the work?
15th October 2019 to 5th November 2019
What offer was submitted to the landowner?
£2.45 million
How did you carry out the measurement of the property?
- Prior to inspecting and measuring the property I familiarised myself with the property floor plans and measurements, provided on the agents data room.
- I used a distometer, and measured the key elements of the property, in accordance with IPMS.
- Throughout the measurement process I cross referenced the issued measurements as well as manually recording the measurements, I then cross referenced this on Microsoft excel, back in the office.
What did you take with you when inspecting?
- Phone
- Camera
- Pen and paper
- Distometer
- PPE
- Brochure, floor plans
How did you store the documents from the agents data room?
- I downloaded the documents on a secure network and scanned the documents for potential viruses.
- I then set up an appropriate sub folder for the data room documents and saved them securely, ensuring that the data was backed up accordingly.
What information was included in your design brief?
- Importance of effective and efficient spatial planning. Desks to be focussed towards 1:8 density
- Reception area to be welcoming and close to main entrance
Why didn’t you provide achieved rents?
- Achieved rents for comparable properties was not readily available and agents confirmed that discounts typically were not seen with achieved rents
- I was also mindful of the tight timescales given to me
- I was mindful of this and made it clear to my supervisor as well as considering this for a sensitivity analysis
What fit out did you intend to provide?
Grade A specification
Why is plug and play so important?
It allows prospective tenants to connect to the IT infrastructure quickly and provides high speed internet access.
Why did you apply subjective judgement to the capitalisation yield?
- There was a lack of direct comparables, due to the unusual type of opportunity.
- Having reviewed information from data sources and speaking to an investment agent, I applied my professional and measured judgement to the application of a 6.125% yield.
What was the GDV of the proposal?
£5,050,856
Did you come accross any concerns in your inspection?
Not particularly, there were two areas on the ground floor that had damp patches. After nspecting I concluded that this had come from water ingress through a cracked window sill.
There was efflourscence on some of the external brick work.
Why did you apply a 5% contingency?
I reviewed the risk profile of the proposed development works and discussed my assumption with my supervisor.
How did you establish the project programme?
My using comparable projects on the McLaren database as well as discussing the development with my construction director.
