Key Numbers

Question 1

What was the stack for your ‘Viability’ example?

Answer 1

GDV: £40m
TDC: £39m
Profit: £1m
MOC: 3.79%

(106 residential units, 4 retail units)

Question 2

What was the purchase price by TGP of the AH units in your ‘Viability’ example?

Answer 2

Effectively the revenue:

LAR:
1b: £196k
2b3p: £239k
2b4p: £274k

SO:
1b: £230k
2b3p: £280k
2b4p: £322k

Question 3

How did you work out the revenue for the grant funding?

Answer 3

£180k per LAR
£59k per SO unit

Question 4

What was the stack for your ‘Value Engineering’ example?

Answer 4

Pre VE:

GDV: £140m
TDC: £138.6k
Profit: £2.5m
MOC: 1.18%

Post VE - Total of 355k Saving:

GDV: £141m
TDC: £138.4m
Profit: £2.8m
MOC: 2%

(336 residential units, 2 retail units)

Question 5

What was the VE cost saving made by the balcony and plant screening in your L2 ‘Value Engineering’ example?

Answer 5

£175k

Question 6

What was the VE cost saving made by the windows in the second core in your L2 ‘Value Engineering’ example?

Answer 6

£180k

Question 7

What was the VE total cost saving made in your L2 ‘Value Engineering’ example?

Answer 7

£335k

Question 8

What did the MOC improve to in your L2 ‘Value Engineering’ example?

Answer 8

From 1.81% to 2%

Question 9

What did the £psqft increase to in your L2 ‘Value Engineering’ example?

Answer 9

£671 to £688

Question 10

What was the stack for your ‘Optimal Bedroom Mix’ example?

Answer 10

GDV: £327m
TDC: £289m
Profit: £38m
MOC: 13.4%

(597 residential units, 2 units)

Question 11

What were the BTR values?

Answer 11

Studio = £1,670 pcm
1b2p = £1,975 pcm
2b3p = £2,475 pcm
2b4p = £2,675 pcm
3b5p = £3,150 pcm
3b6p = £3,350 pcm

Question 12

What were the value differences between the three options?

Answer 12

A = £269,737,801
B = £242,141,705
C = £251,262,350

Roughly 10m difference between each one

Question 13

What were the other BTR assumptions?

Answer 13

Voids: 2%
Yield: 4.5%
Purchaser’s Costs: 1.8%
Regen Prem: 5%

Question 14

What is the £psqft for the ‘Optimal Bedroom Mix’ example?

Answer 14

£32 psqft

Question 15

What are retail assumptions across ST?

Answer 15

Yield: 6.5%
Inflation: 1.09%
£psqft: £32
Term:10 yrs
Rent free: 12-24 months
Cap con: £16-80 psqft

Question 16

How can you broadly calculate professional fees?

Answer 16

10-15% of Construction Costs

Question 17

How can you broadly calculate contingency?

Answer 17

5-10% of construction costs

Question 18

What are included in other development costs?

Answer 18

• Service charge
• Non-recoverable VAT
• Estate mobilisation
• Customer care provision
• Maintenance
• Warranty

Question 19

What is included in other revenue in your CA?

Answer 19

Rental stabilisation period on the BTR

Question 20

What was the stack for your Case Study?

Answer 20

GDV: £327m
TDC: £287m
Profit: £40m
MOC: 14.19% (from 14%)