Examples Flashcards
Haringey valuation
Residual Internal purposes Development site Yet to obtain planning 17.5% PoC increased to 20% \+ 6 months
135 units
MV £850 psf
Build cost £250 psf
Bow LS valuation
Residual LS purposes development site checked build costs with BCIS/building surveyors Sensitivity analysis
79 units MV - £675 psf Build cost £200 psf BCIS median £175 UQ £210 psf 30% fall at worst
Romford internal valuation
DA Internal purposes 2 developments - 109 and 121 units (more 1 beds, better for market) SA of planning permission 121 scheme had higher IV
GDV changes: £575 vs £600psf Build cost: £190 vs £200psf Fees: 8% v 9% Rate of sale increased slightly All other same (PoC 17.5%, contingency 5%)
Tooting valuation
Residual LS purposes Development site Construction yet to commence Raised contingency from 3% to 5%
75 units
£240 psf build cost
Wimbledon valuation
Valuation
LS purpose
Development site
Comparable method for GDV
47 new build town houses
Bow internal valuation
Quarterly valuation
Internal purposes
New build development
Downvalued
23 apartments
Tottenham valuation
Internal purpose
Desktop basis
New build development
Advised of implications in ToE and report
135 apartments
Romford LS valuation
LS purpose
Development site
Investment method
BTR asset
120 apartments
Bow valuation in ethics section
Valuation of mixed use site
LS purpose
Passed on commercial element to commercial team
Soho valuation ethics example
Valuation
Development site
LS purposes
Borrower wished to discuss figures before reporting
Made client aware and told borrow about my duty of care
Croydon valuation ethics examples
Valuation
Internal purposes
Desktop basis
Informed client of risk, put in ToE and report
Poplar valuation client care example
Valuation
Internal purposes
Speak to client’s architect to get most up to date plans
Wimbledon valuation communication example
Valuation
LS purposes
Development site
Comps -> Clear and effective communication with agents
Croydon valuation H&S example
Valuation
Development site
LS purposes
Arranged full suite of PPE
Tooting Inspection
Valuation
LS valuation
Development site
Arranged PPE and inspected local area and comps
Highgate inspection
Valuation Internal purposes Older block of mansion flats Damp Was minor at the point of investigation Advised specialist advice be sought and agreed SA of remediation with client
Kew inspection
Valuation LS purposes Development site Next to railway line Impacts the flats - used comps nearby to estimate impact
Hampstead measurement
Valuation
Portfolio for internal purposes
Mansion blocks/completed units
Used GIA
Felixstowe measurement
Valuation
Internal purposes
Development site
Check measurements on scaled plans
Harringey why 20%? Why add 6 months?
1) Planning risk
2) Sales risk / Size of scheme (135 units, quite large)
3) Location - away from transport
Considered the returns an incoming purchaser would expect from the site when considering the relative risks
6 months to reflect planning. confirmed with planning team to be reasonably attained and 6 months an appropriate time estimate
Tooting why 5% contingency? Why did you then allow for contingency?
1) Had third party environmental report
2) Had third party detailed build cost analysis
Discussed both at length with internal building team
Still need to reflect potential risks during construction phase e.g. weather, late deliveries, cost of goods
Bow development appraisal, what was the build cost and BCIS? How many units?
Build cost £200psf
BCIS 3-5 storey in tower hamlets
Median £175 psf UQ £210 psf
79 units
Romford development appraisal - what changes did you reflect between the schemes?
1) GDV - £575 vs £600 psf
2) Build cost - £195 vs £205 psf
3) Fees - 8% vs 9%
4) Rate of sale - 3 per month
Other inputs remained consistent / provided by developer PoC 17.5% Finance 6% Contingency 5% Agents legals 1.5% / 0.25% Land agents legals 1% / 0.5%
Wimbledon valuation, which comps? What values? Why look at second hand?
My value: £575 psf
47 town houses
Ram quarter - £700 psf
Cambium - £600 psf
Smaller schemes on A24
The Grid - £600-750 psf
Second hand to provide useful indicator of immediate surrounding market. New build not always better.
Modern renovations attract similar purchaser profile.
Tottenham valuation - key figures
Internal val, completed scheme
135 units
£850 psf
Key comps - Hale Works, Lock 17, Apex House.
Bow valuation. What factors? Which comps? Which agents? How much of a fall?
23 apartments Pre-2019 election, brexit uncertainty Fish Island, Aberfeldy, Ropemakers Yard JLL, Winkworth, Savills, KFH 5% fall from £675 to £650 on average
Romford valuation - key figures? What did you report?
120 units PD MR £31psf MV £575 Cap rate 4.25% Purchasers costs 5% 21% Opex + 2% void 5% discount to VP / IRR 6% MV stabilised and sold
Land value using development appraisal 9 month let up - calc rent received less costs PoC 17.5% Build £200 psf Contingency 5% Fees 7.5% Finance 6%
Client care examples?
1) Nine Elms sales - contact with vendors
2) Poplar val internal purposes - contact with other advisors e.g. architects, cost consultants
Communication & Negotiation examples?
1) Nine elms sales 8% to 5% - evidenced rationale
2) Wimbledon communicate with agents for comps
H&S examples?
1) Croydon site inspection - arranging PPE
2) Nine Elms - lone worker policy
Inspection examples?
1) Tooting site - arranging PPE/access
2) Battersea - Market appraisal, south facing terrace
3) Highgate - Damp
4) Kew - railway line
Measurement examples?
1) Hampstead GIA
2) Felixstowe scaled plan error
Lettings examples?
1) Discount of 3%
2) Letting to student with different payment terms
Bedford example details? Conditions on bids?
Sale by private treaty moved to informal tender
BTR asset for developer
Looking for investors - FF or FC
Did DD, prepared marketing docs
Set up dataroom
Bids - price for the land, development agreement value and breakdown, how funded, conditions (e.g. exclusivity period)
Windsfor example details? Pricing details?
16 private apartments Development site Provided DD on site in report MV=£175psf MR=£11psf GDV £1m IRR 6.5% - Hurdle rate of 6%
What was the PTAL of the Battersea Site? What does this mean for density?
PTAL of 4
Central location
Delivering 2.7-3.0 hr/unit (i.e. 1 and 2 bed flats)
215 - 405 units per hectare could be delivered
Romford BTR purchasers costs after capitalisation at 4.25%?
SDLT
Agents 3% Legals 1.25%
What was the density of the battersea site before and after your advice?
0.53 hectares
PTAL of 4
Decrease habitable rooms per unit, can increase units per hectare
From 125 units to 180 by adding more smaller units
Move from a maximum of 175-355 units per hectare to 215-405
