Presentation Flashcards
You mention local and national policy guidance.
What policy documents have you adhered to
National NPPF - published 2012, revised 2021
Local Policy - Knowsley Local Plan Core Strategy adpoed 2016
Earlsfield Park Supplementary Plannig Doc, adopted sept 2022
You mention retail impact and scale and the need to review local and national policy thresholds. What are these thresholds
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
How would a Lidl store be appropriate with regards to design
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
What is a s106
What is a s278
What is CIL
Please can you define the use classes for the site?
- 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)
What are the changes with the new use class
-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
What is a development appraisal
-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
How did you work out the GDV and what is it?
-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
How did you undertake development method
-GDV
-Site perp
-planning costs
-building costs
-professional fees - architects
-finance
-no contingency?
-no developers profit
What was the SDLT payable here?
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 +
What is the current use class order in England
Town and Country planning use classes amendment England Regulations 2020
-Overhauled the 1987 Use Class Order
Can you list the former use classes
-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
Can you state the current use classess
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
Can you state the changes to the use class
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
You only state 1 Aldi comp- is this enough for you to base your offer on?
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
Why is this a Lidl bespoke development appraisal, what are the differences?
-Dont include developers profit.
-HO work out developers profit on a seperate calc
HB Prescot - £1,175m
How did you work out build costs?
-A mixture of methods including Main Contractor Browns and BCIS
What is BCIS
-Building cost information service
-cost and price information is collected from construction industry and collated analysed and modelled.
What is an overage?
-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
how did you calculate legal fees and developers profit
legals- fixed costs
developers profit - HO calculation
Did you take your comparable at face value?
-No
-I analysed source of information
-Analysed
- Got Line Manager to sense check info
-i also considered conditionality of deal
What’s been included within professional fees
-Architect
-Planning consultant
-H&S consultant
-Principle designer
-Highways consultant
-Utility consultant
Typically 10-15% of
What do purchasers costs break down to
Agency 1.5
Legal 0.5
SDLT - 5%
Talk me through step by step of development appraisal
- GDV using comps
2.TDC
-site prep
-planning
-building costs
-professional fees - Figure lidl can afford to purchase price for (including acquisitions fees)
- Viability
What have you not included in your development appraisal
- No developers profit or calculation on finance
What is VAT payable on
-Purchase price
-All professional fees
What are the three forms of sensitivity analysis
-Simple sensitivity analysis - changing of key variables
-Scenario analysis - varying scheme
-Monte Carlo Simulation - using probability theory
How did you successfully negotiate here
-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
