Development Appraisals L3

Question 1

Project Gasworks - explain your advice given to the client.

Answer 1

I advised to my client the best approach to take when weighing up multiple options for potential development.

Question 2

Project Gasworks - Why did you consider testing three housing density options?

Answer 2

To determine the maximum viable level of affordable housing the scheme could deliver under different scenarios, considering location and viability constraints.

Question 3

Project Gasworks - Why did you use two scenarios for each option?

Answer 3

To assess the financial viability of the scheme under different conditions, one being policy compliant and the other involving nil affordable housing.

Question 4

Project Gasworks - Talk me through the outcome.

Answer 4

it outcome of the options and scenario testing underlined that options 1 and 2 were not financially viable with the scenarios that did offer affordable housing.

the low density option demonstrated the potential for some affordable housing which was recommended to the council.

Question 5

Project Gasworks - What was the best option in relation to the affordable housing provision?

Answer 5

The low density option

Question 6

Silvertown - what did you consider to be the best way to progress with the multiple unit scheme over 5 different phases and why?

Answer 6

As Silvertown was a large development over multiple phases and plots, I decided that conducting the financial appraisal using excel was the best approach to take.

Question 7

Southwick - talk me through your development appraisal and explain the advice given to the client.

Answer 7

I had done a development appraisal to assess the financial viability of the scheme split into 4 different options:
Do nothing
Refurbishment
Part redevelopment
Full redevelopment

I advised the client that the full redevelopment option would generate a greater development cashflow than the other options.

Question 8

Tell me about how you have used a sensitivity analysis to produce a reasoned analysis of risk.

Answer 8

I used sensitivity analysis to measure a range of potential outcomes due to market changes. Undertaking a +/- 5% on private values and build costs.

Question 9

Tell me about a development appraisal you have used to advise on the acquisition/disposal of a development site.

Answer 9

A client needed to understand how much they was able to purchase developments for. I then used revenue figures like rental values, service charges, tenure mix, unit sizes and bedroom mix to determine the cost of the site. This was done using an programme called podplan

Question 10

Tell me about an example of when you have provided reasoned advice on an appropriate source of development finance.

Answer 10

I recommended a combination of traditional bank financing and private equity investment for a mixed use scheme which was determined after analysis of the projects financial requirements, risk factors and timeline.