Presentation

Question 1

You mention local and national policy guidance.
What policy documents have you adhered to

Answer 1

National NPPF - published 2012, revised 2021
Local Policy - Knowsley Local Plan Core Strategy adpoed 2016
Earlsfield Park Supplementary Plannig Doc, adopted sept 2022

Question 2

You mention retail impact and scale and the need to review local and national policy thresholds. What are these thresholds

Answer 2

The national threshold is 2,500 sqm
Knowsley Local Plan Core Strategy there is no adopted local threshold
There is no policy requirement to address the impact test

Question 3

How would a Lidl store be appropriate with regards to design

Answer 3

Through reviewing Historic Englands building map and search list i was able to confirm that there were no listed buildings on site
Having reviewed Prescot Town Conservation Area Appraisal i was able to confirm that it was not in a conservation area. Not in a conservation area
Standards store should be achievable

Question 4

What is a s106

Question 5

What is a s278

Question 6

What is CIL

Question 7

Please can you define the use classes for the site?

Answer 7

• Class A1 (shops and general retail)
• A4 (drinking establishments premises)
  -C1 (hotels, boarding, guest houses or hostels)
• sui generis (in a class of its own)

Question 8

What are the changes with the new use class

Answer 8

-A1-3 (retail, food drink)
-D leisure
-B1 light industrial/office
ALL MERGED under class E
-A4 now sui generis
-C1 remains as is – no change

Question 9

What is a development appraisal

Answer 9

-a calculation/series of calculations to establish the value /viability of a proposed development
-it can assume a site value or calculate a site value

Question 10

How did you work out the GDV and what is it?

Answer 10

-MV of completed proposed development at the date of valuation
-Comparable method of valuation used to establish rents and yields
-New Lidl store
15 yr term certain
MR
6% yield
£7,000,000
-an allowance of rent-free period and vouds can be assumed
-purchasers costs are usually deducted from commercial valuations

Question 11

How did you undertake development method

Answer 11

-GDV
-Site perp
-planning costs
-building costs
-professional fees - architects
-finance
-no contingency?
-no developers profit

Question 12

What was the SDLT payable here?

Answer 12

A = 5% of purchase price

Its a rateable value so you pay..
0% on the first £150,000
2% on the next £100,000
5% on £250,000 +

Question 13

What is the current use class order in England

Answer 13

Town and Country planning use classes amendment England Regulations 2020
-Overhauled the 1987 Use Class Order

Question 14

Can you list the former use classes

Answer 14

-A1 - shops
A2 - financial and professional services (banks)
-A3 - restaurants and cafes
-A4 - drinking establishments (pub)
-A5 - hot food

B1- business (offices), light industrial
B2 - general industrial
B8 - storage

C1 - hotels
C2 - residential institutions (care homes)
C3 - dwellinghouses (resi)
C4 - HMO

D1 - non-residential institutions (nurseries, schools, libraries)
D2 - Assembley and leisure (cinema)

Sui Generis - retail warehouse nightclubs, taxi business

Question 15

Can you state the current use classess

Answer 15

Class B - industrial
Class C - resi
Class E - general retail
(A) display or retail sale of goods, other than hot food
Class F - community and learning

Question 16

Can you state the changes to the use class

Answer 16

new class F1 - for community and learning
-Class D removed
-sui generis - A4, A5, D2
Biggest change - new class E…
merging of class A1-3, B1, D - leisure

Question 17

You only state 1 Aldi comp- is this enough for you to base your offer on?

Answer 17

Id advised by client that this comparable should carry the greatest weight
- I considered a series of Aldi comps e.g
-Rice Lane
-Aldi Tarbock - 7.3m for turnkey development in 2021

Question 18

Why is this a Lidl bespoke development appraisal, what are the differences?

Answer 18

-Dont include developers profit.
-HO work out developers profit on a seperate calc
HB Prescot - £1,175m

Question 19

How did you work out build costs?

Answer 19

-A mixture of methods including Main Contractor Browns and BCIS

Question 20

What is BCIS

Answer 20

-Building cost information service
-cost and price information is collected from construction industry and collated analysed and modelled.

Question 21

What is an overage?

Answer 21

-An overage agreement relates to a seller’s right to receive additional payments from a buyer at some point in the future, triggered by an event which increases the value of land
-ie planning permission
-also known as claw back

Question 22

how did you calculate legal fees and developers profit

Answer 22

legals- fixed costs
developers profit - HO calculation

Question 23

Did you take your comparable at face value?

Answer 23

-No
-I analysed source of information
-Analysed
- Got Line Manager to sense check info
-i also considered conditionality of deal

Question 24

What’s been included within professional fees

Answer 24

-Architect
-Planning consultant
-H&S consultant
-Principle designer
-Highways consultant
-Utility consultant

Typically 10-15% of

Question 25

What do purchasers costs break down to

Answer 25

Agency 1.5
Legal 0.5
SDLT - 5%

Question 26

Talk me through step by step of development appraisal

Answer 26

1. GDV using comps
   2.TDC
   -site prep
   -planning
   -building costs
   -professional fees
2. Figure lidl can afford to purchase price for (including acquisitions fees)
3. Viability

Question 27

What have you not included in your development appraisal

Answer 27

• No developers profit or calculation on finance

Question 28

What is VAT payable on

Answer 28

-Purchase price
-All professional fees

Question 29

What are the three forms of sensitivity analysis

Answer 29

-Simple sensitivity analysis - changing of key variables
-Scenario analysis - varying scheme
-Monte Carlo Simulation - using probability theory

Question 30

How did you successfully negotiate here

Answer 30

-meetings with landowner were in person and over teams, as the intention here was to develop a partnership approach to the project and build a good working relationship.
-so although site was lost to Aldi, we recieved information as to why they were progressing with Aldi
-Prior to further meetings I had prepared a best case scenario and fall back positions should we be unable to agree upon price, this also included deciding what is and isnt negotiable
-this included providing not only an uplift in costs, but stating quicker timescale for exchange and completion than aldi
-the team of planning consultants we have on board to overcome planning concerns