Development appraisals

Question 1

How do you verify the costs provided by a colleague?

Answer 1

• How to caveat them
• How to use more reasonable costs

Question 2

Why have you chosen those percentages for the sensitivyt analysis?

Answer 2

(Client driven? Client wanting standardised approach compared to other projects?)

Question 3

Is the traditional S curve of costs still applicable today?

Question 4

What type of finance is the scheme using?

Answer 4

Debt or equity

Question 5

Overage / Claw back agreements - what are the trigger points?

Question 6

Tell me about Stokes v Cambridge 1961 case

Answer 6

This case from the 60s that advised that ransom strips should be valued as a % of the increase in value of the adjacent land

(Cambridge Corp. used CPO powers to purchase ransom strip off Stokes)

Generally 33% - 50% of the increase in value of the adjacent land

Question 7

What is the difference between a Development Appraisal and a Viability Assessment?