Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

APC 3 > Case Study Questions (Refer to APC 1) > Flashcards

Case Study Questions (Refer to APC 1) Flashcards

1
Q

How big is the Silvertown Masterplan?

A

27 hectares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Did you formalise the instruction in any way?

A

Written confirmation in an email

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How many units are there in the project?

A

599

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How many BTR units are there in the project?

A

423

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How many affordable units are there in the project?

A

176

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What was the affordable tenure split?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is RIBA Stage 2?

A

Concept Design

  • Architectural concept developed and approved by the client
  • Aligned to the Development & Project Brief
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a RMA?

A

SAALL

  • Scale
  • Access
  • Arrangement
  • Layout
  • Landscaping
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How many phases are there in the masterplan?

A

5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the role of the GLA in the scheme?

A
  • GLA are the landowner
  • Strategically, GLA are responsible for the strategic administration of Greater London, including regeneration
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is a Registered Provider?

A
  • Organisations that provide social housing
  • Three types
  1. Not for profit (housing associations)
  2. For profit
  3. Local authorities

Overseen by the Regulator of Social Housing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the different types of affordable housing?

A

RENT:

  • Affordable / Intermediate Rent (20% lower than market rent)
  • Social Rent (50%lower than market rent)

E.g. London Affordable Rent (20% lower than market rent)

BUY:

  • Affordable / Intermediate Sale (20% lower than market value)

E.g. Shared Ownership (20% lower than market value)

Also First Homes Scheme (30-50% lower than market value)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How can an amenity offer support rental values?

A

A rental premium can be charged where developers have a suite of amenities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How did you determine what rental values would be attractive to target tenants and the investor market?

A

Tenants:
- As can be seen in the appendix, I undertook thorough investigation to understand what demographic the plot should be looking to attract
- I also referred to residential agents

Investors:
- Investors will look at the financial performance of an asset, so ensuring there is strong revenue and cap value, it ensures the IRR is higher

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are key metrics that investors would look at?

A

IRR

(Check with James??)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Why did you discount Option 1 - No / limited amenity offer?

A

Positives:
- Reallocate amenity spaces to units

Negatives:
- Not attract target tenants who would expect onsite amenity
- Not attract investors if rental values weren’t attained

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Why did you discount Option 3 - Premium amenity offer?

A

Negatives:
- Not attractive target tenants due to unaffordable rent
- Not attract target investors due to increased operational expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why did you advise to proceed with Option 2 - Standard amenity offer?

A

Positives:
- Attract target tenants who are likely to be working a desk based job and could utilise the co-working space / enjoy the convenience of an onsite gym, but not be willing to pay higher rent for amenities they wouldn’t utilise
- Attract target investors as operational expenditure would not be increased through additional amenities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is operational expenditure?

A

Typically 21.5 - 24.5%
Void of 4%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What does op ex include?

A

Op ex:

  • Staff costs
  • Security
  • Cleaning and refuse
  • Utilities
  • Repairs and maintenance
  • Property admin expenses
  • Health, fire and security
  • Lift servicing
  • Landscaping / external management
  • HVAC
  • Insurance and fees
  • Property manager fee
  • Individual flat refresh allowance

Leasing ex:
- Leasing staff and admin
- Advertising, website and promotions

Capital ex:
- Sinking fund provision
- Total capital expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Please explain the comparable method of valuation?

A

The comparable method can be used where there is a good body of recent, reliable comparable rental, yield or sales evidence

  1. Find comps
  2. Find headline rent to give a net effective rent (as appropriate)
  3. Assemble in schedule
  4. Adjust using hierarchy of evidence
  5. Opinion of value
  6. Report value and prepare file note
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Please explain the hierarchy of evidence?

A

A - Direct comps (completed transactions / asking)
B - Market data (commercial databases/indices/historic evidence/market demand)
C - Other sources (locations/assets)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Why did you discount option 1? Achieved rents within 2 miles

A
  • Royal Wharf - 2020, comparable location, but more premium offer, higher rents due to premium amenity offer
  • Fizzy East 16 - 2022, less comparable location, limited amenity offer, higher rents due to location

Negatives:
- Insufficient to base market rents on two sources with different amenity offerings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Why did you discount option 3? Expand search area and utilise achieved rents within 5 miles

A

Negatives:
- Discounted due to less comparable locations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Why did you advise to proceed with option 2? Utilise achieved and asking rents within 2 miles
- Millet Place - 2002, comparable in terms of location, inferior amenity offer, inferior rents to project Positives: - Achieved rents in Option 1 - Asking rents from additional scheme
26
What were the projects rents in the end?
Studio: £1,670 3b6p: £3,350
27
What were the projects rents per sq ft?
Studio: £40psqft 3b6p: £32
28
Have these rents increased from the time of instruction?
By about £100pcm (£6/7 more psqft) Studio: £1,772 (£47) 3b6P: £3,481 (£38)
29
What yield did you apply?
4.5%
30
What void period did you apply?
2%
31
What purchaser's costs did you apply?
1.8%
32
What inflation did you apply?
2.2% at the time
33
What was the GDV of the scheme?
£327m
34
What was the value of the BTR?
£251m
35
What were the total development costs?
£287m
36
What was the profit of the scheme?
£40m
37
What was the MoC of the scheme?
14.19%
38
What is a planning risk?
Potential issue or uncertainty that can arise during the planning / implementation stage. - Unrealistic programme / budget - Lack of stakeholder buy in (insufficient engagement or agreement) - Regulatory / legal issues (changes in regulation / unforeseen legal challenges) - Other challenges include misunderstandings, misinterpretations, incomplete applications, payment of fees, timing of committee meetings
39
What is compliance?
Alignment to legal and regulatory standards
40
Why does your client use MoC, what else could they use?
41
Talk me through Option 1 - Increase massing
- Add storeys to increase number of apartments to improve GDV - Reviewed max building heights plan, dictated by safeguarding of LCY, to establish project already at its max height - Breaching consented parameter plan is failure to comply with S171A of T&P
42
What does the Town and Country Planning Act (1990) set out?
Act of Parliament that regulates land development in England and Wales - it is planning law
43
What does Section 171A of the Town and Country Planning Act (1990) set out?
"carrying out development without the required planning permission, or failing to comply with any condition or limitation subject to which planning permission has been granted constitutes a breach of planning control"
44
Talk me through Option 2 - Switch tenure
- Switching affordable to private to improve GDV - Reviewed MA with the RP to understand commitment - Certain number of AH have to be delivered in Phase 1 - Not delivering this would breach MA
45
How many homes have to be delivered in Phase 1?
721 Actually stipulates how many per plot
46
Talk me through Option 3 - Value engineering
- Work with quantity surveyor to undertake VE - Identified: 1. Switching to aluminium to composite windows 2. Switching from bespoke to standardised balconies 3. Cheaper façade treatment - Reviewed RPs design spec to check these were acceptable, which they were - Engaged with DP9 to check if they posed a planning risk, which they did not - Reduced CC which increased MOC to 14.19%, threshold is 14%
47
What is included in a Cost Plan?
48
How did you adhere to the Rules of Conduct?
Seeking advice from: - Residential agents - Quantity Surveyor - Planning Consultant
49
What does the PS: Comparable Evidence in Real Estate Valuation (1st Edition, 2019) set out?
- Principles of comparable evidence - Sources of comparable evidence - Recording of comparable evidence - Recording comparable evidence - Analysis of comparable evidence - Dealing with a shortage of comparable evidence
50
What else would you have considered in the sensitivity analysis?
Other development costs: Reviewed: - Marketing fees - Planning fees
51
What are key things an investor would look for when investing in a property?
- Location - Asset Class - Valuation - Cost implications (mortgage / tax) - Expected cash flow and profit
52
Why would location be important to an investor?
How the area is expected to evolve over the investment period
53
Why does an investor look at the expected cash flow and profit?
- Cash flow from rental income - Expected increase in value due to appreciation - Depreciation considerations Be careful of loans in adverse market conditions
54
Are there any specific requirements in the TGP Design Guide that differ from the BTR Guide?
TGP made no specification to any of the below, so there was no risk: - Windows - Balconies - Façade TGP Spec: - Kitchen kit: Bosch - Wardrobes: Bisley - Bathroom kit: Vitra BTR Spec: - Kitchen kit: Bosch - Wardrobes: Bisley - Bathroom kit: Roca
55
What are headings you'd typically see in a Cost Plan?
- Substructure - Frame - Upper floors - Roof - Stairs - External walls - Windows and external doors - Internal walls and partitions - Internal doors - Internal finishes - FF&E - Services - External works - Civils / infrastructure - Utilities - Prelims - OHP - Contingency - Inflation to contract award - Inflation to construction mid-point
56
What are headings you'd typically see in a VE schedule?
- Architectural (Façade, bricks, balconies, staircase balustrade, bike store) - Structural (Piles, transfer beams, brick support brackets, roof slab) - MEP - Landscaping (Passive irrigation to reduce attenuation tank, concrete pavers in lieu of clay) - Other (windows, doors, kitchens, wardrobes)
57
Did you look at any other VE options?
Yes many: Architectural: - Reducing number of bathroom pod types - Reducing number of kitchen types - Removing the painting to staircase balustrades and handrails MEP: - Removing TV in all bedrooms
58
So how many stair cores, lift cores, car parking spaces and cycle parking spaces did you have in the project?
Car parking spaces: 17 blue badge
59
What is the build programme?
36 months SoS Q1 2026
60
Is inflation built into the cost plan?
- 3.5% until MC contract awarded - 4.5% to construction mid-point
61
What is the GEA, GIA and NIA of the project?
GEA - 60,000 GEA GIA - 56,000 GIA NIA - 40,000 NIA
62
What is the typical net to gross?
69% (overall) 76% (typical floor) - LL targets 76-78%
63
What is the typical dual aspect?
42%
64
What is a typical floor to floor height?
3075mm 2500mm
65
How many apartments and lifts should you have per core?
8 apartments 2 lifts per core

APC 3 (25 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions