Task: DEV:elemental was approached by a team of West Midland property investors who were looking for help to jump-start a stalled project on the North Wales coast. The project was to refurbishment a listed building to create a high quality residential accommodation with a second phase of new build housing to the rear. Our team engaged the clients to fully understand their drivers and were able to propose a recovery plan for the project.
Response: Early site research identified a planning condition that required work to commence within 12 weeks of our initial engagement. It further emerged that a complex web of ownership of the site and incumbent creditors had to be resolved as a matter of urgency. The team proposed a comprehensive recovery plan, which included negotiations with the local planning authority to accept an extension on the commencement date, a design, procurement, and delivery plan with associated cash flow projection and VAT impact analysis, finance assessment options and risk schedule projection.
Detail: We also examined marketing proposals which included online virtual viewings, virtual reality marketing suite on site during the delivery, and a mix of sales and rental options for the client. In addition, a community engagement strategy was outlined to ensure that we created a wave of local support for the development, which is very important in this particular area.
Value added: DEV:elemental’s team was able to respond in an exceptionally tight timeframe to provide the client with a viable and robust recovery and delivery plan for the development. This project ultimately got sold to one of the incumbent creditors as the borrowing costs for this client, on top of existing debt against the site, made the project close to call in regards to commercial viability. Nevertheless, the clients were provided the best possible opportunity to retain the project and deliver it themselves by our team.