Development Strategy
Appraise sites, develop business cases, streamline decision gateways and progress developments efficiently using our project strategy services
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Development Strategy

Appraise sites, develop business cases, streamline decision gateways and progress developments efficiently using our project strategy services

Where DEV:elemental can Help

At DEV:elemental, we have seen a wide range of property development projects struggle to get off the ground because of lack of momentum behind the development, as well as inconsistent advice from a wide range of stakeholders, including planning officers, finance brokers, vendors and agents

To help overcome these roadblocks and maintain impetus, we have developed 2 key project strategy products that will help investors streamline their decision gateways and deliver the early stages of their development projects more effectively and efficiently

Express Service Viability Appraisal

At the beginning of a project, DEV:elemental can undertake a high-level review of a potential opportunity to derive a ‘go / no-go’ recommendation as to whether to continue or terminate the development

Business Case Development

For projects whose viability is clearly established, DEV:elemental can support the creation of a detailed business case report to attract and secure the investment capital necessary to progress the development

Where DEV:elemental can Help

At DEV:elemental, we have seen a wide range of property development projects struggle to get off the ground because of lack of momentum behind the development, as well as inconsistent advice from a wide range of stakeholders, including planning officers, finance brokers, vendors and agents

To help overcome these roadblocks and maintain impetus, we have developed 2 key project strategy products that will help investors streamline their decision gateways and deliver the early stages of their development projects more effectively and efficiently

Express Service Viability Appraisal

At the beginning of a project, DEV:elemental can undertake a high-level review of a potential opportunity to derive a ‘go / no-go’ recommendation as to whether to continue or terminate the development.

Many investors have access to sites that they are considering as potential investment opportunities, but which may benefit from a professional viability appraisal from a team of experienced and independent property professionals before significant capital and resource is committed.

This is especially true if the developer is based overseas and therefore unable to independently evaluate the site, timescales are short perhaps because full planning permission is about to expire, or expertise levels dicatate that a third party opinion is desirable to mitigate investment risk and establish alternative uses and costs not previously determined.

Best undertaken early or at the start of the development process once a potential site or opportunity is first identified, DEV:elemental’s ‘Express Service Viability Appraisal‘ supports developers by providing a rapid and detailed overview of a site’s viability and development potential, to evaluate whether it matches the client’s specific investment risk and return criteria.

The report is a high-level yet comprehensive consideration of a site approached from a number of perspectives deemed critical to a project’s technical and commercial success.  The aim is to rapidly derive a ‘go / no-go’ recommendation as to whether to progress the opportunity in greater detail, or discontinue interest.

Each opportunity is unique but typically DEV:elemental’s ‘Express Service Viability Appraisal’ service investigates and summarises the following factors:

Detailed review of client’s brief for redevelopment requirements
Site & situation appraisal
Past, current and potential use of the site
Existing outline, full or expired planning approval review and impact appraisal
Site capacity appraisal and / or technical appraisal of incumbent design solutions
Buildability appraisal and cost-relevant site factors
High level development cost projection
Market projections for disposal or rental market

Our standard charge for this report is £960+VAT, although should more detailed design input or site visits be necessary, then this is subject to adjustment accordingly by prior agreement.

Viability Appraisal Case Study #1

CS1_Mob

Task: DEV:elemental was appointed to undertake a Viability Appraisal for a potential development site in Flintshire that had been on the market for some time. The site was for sale with a prior planning approval in place, but with proposals which were not in keeping with the area. High level cost analysis of the existing design confirmed that they were not in any way commercially viable for development.

Response: Site and planning history research confirmed that the site was in a designated flood zone, and this implicated the design concept strategy which was developed. Our partner design team quickly developed a concept which responded to this, along with local housing needs and relevant planning policy to come up with a scheme which would deliver 16, 1 bedroom affordable homes. Initial interest for lease or purchase of these units by the Local Authority and RSL organisations was highly positive.

Detail: Concurrent with the design concept development, further research into the site and its legal situation revealed that part of the land was unregistered, and shouldn’t actually be for sale in the first place. As such, the recommendation was made to renegotiate based on the revised designation of ownership with the vendor and review the design concept solution or drop the site from consideration entirely.

Value added: As a result of this work, DEV:elemental was able to remove the risk from the process for the client before any major expense or investment of time was incurred.  Ultimately, the client moved on to look at alternative sites rather than progress with the purchase.

Viability Appraisal Case Study #2

CS2_Mob

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.

Business Case Development

Once a potential development has been appraised and its viability established, the focus turns to developing a thorough and robust project business case.  This work forms Phase 1 of DEV:elemental’s 5-Phase Development Process.

This step involves a much more in-depth consideration of a site’s potential, a task made more straightforward if DEV:elemental undertook the original initial viability appraisal.  Areas such as design solutions or optimisation (where an incumbent design is featured) are addressed, as well as wide range of complimentary aspects considered critical to developing a credible business case and advancing the project.

The aim of this phase is to prepare a document that be used to attract and secure the sources of investment capital required to progress the project to completion, and form the backbone of the project moving forwards.

As with our ‘Express Viability Appraisal‘ service each opportunity is unique and addressed on its own merits but typically DEV:elemental’s ‘Business Case Development‘ service addresses the factors below:

+ Funding options analysis and recommendation (if required)
+ Procurement options analysis and recommendation based on known factors such as client or funder requirements, but to reflect market situation, best practice and best value solutions
+ Design team scope and fees
+ Detailed programme of activity
+ Cash flow projection
+ Outline design solutions
+ Advice on surveys / reports needed to progress
+ Planning Pre-Application Advice (if appropriate or necessary)
+ Buildability strategy
+ Development cost projection and cash flow analysis
+ Market projections for disposal or market rental along with pre-let negotiations where appropriate

The cost for this report is dependent on scale, complexity and depth required for a scheme.  Detailed quotes can be provided upon request by submitting our enquiry form.

Express Service Viability Appraisal

Many investors have access to sites that they are considering as potential investment opportunities, but which may benefit from a professional viability appraisal from a team of experienced and independent property professionals before significant capital and resource is committed

This is especially true if the developer is based overseas and therefore unable to independently evaluate the site, timescales are short perhaps because full planning permission is about to expire, or expertise levels dicatate that a third party opinion is desirable to mitigate investment risk and establish alternative uses and costs not previously determined

Best undertaken early or at the start of the development process once a potential site or opportunity is first identified, DEV:elemental’s ‘Express Service Viability Appraisal‘ supports developers by providing a rapid and detailed overview of a site’s viability and development potential, to evaluate whether it matches the client’s specific investment risk and return criteria

The report is a high-level yet comprehensive consideration of a site approached from a number of perspectives deemed critical to a project’s technical and commercial success.  The aim is to rapidly derive a ‘go / no-go’ recommendation as to whether to progress the opportunity in greater detail, or discontinue interest

Each opportunity is unique but typically DEV:elemental’s ‘Express Service Viability Appraisal’ service investigates and summarises the following factors:

 

+ Detailed review of client’s brief for redevelopment requirements
+ Site & situation appraisal
+ Past, current and potential use of the site
+ Existing outline, full or expired planning approval review and impact appraisal
+ Site capacity appraisal and / or technical appraisal of incumbent design solutions
+ Buildability appraisal and cost-relevant site factors
+ High level development cost projection
+ Market projections for disposal or rental market

 

Our standard charge for this report is £960+VAT, although should more detailed design input or site visits be necessary, then this is subject to adjustment accordingly by prior agreement

iphone_appraisal

Viability Appraisal: Case Study 1

CS1_Desk

Task: DEV:elemental was appointed to undertake a Viability Appraisal for a potential development site in Flintshire that had been on the market for some time. The site was for sale with a prior planning approval in place, but with proposals which were not in keeping with the area. High level cost analysis of the existing design confirmed that they were not in any way commercially viable for development.

Response: Site and planning history research confirmed that the site was in a designated flood zone, and this implicated the design concept strategy which was developed. Our partner design team quickly developed a concept which responded to this, along with local housing needs and relevant planning policy to come up with a scheme which would deliver 16, 1 bedroom affordable homes. Initial interest for lease or purchase of these units by the Local Authority and RSL organisations was highly positive.

Detail: Concurrent with the design concept development, further research into the site and its legal situation revealed that part of the land was unregistered, and shouldn’t actually be for sale in the first place. As such, the recommendation was made to renegotiate based on the revised designation of ownership with the vendor and review the design concept solution or drop the site from consideration entirely.

Value added: As a result of this work, we were able to remove the risk from the process for the client before any major expense or investment of time was incurred.  Ultimately, the client moved on to look at alternative sites rather than progress with the purchase.

Viability Appraisal: Case Study 2

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.

CS2_Desk

Business Case Development

Once a potential development has been appraised and its viability established, the focus turns to developing a thorough and robust project business case.  This work forms Phase 1 of DEV:elemental’s 5-Phase Development Process.

This step involves a much more in-depth consideration of a site’s potential, a task made more straightforward if DEV:elemental undertook the original initial viability appraisal.  Areas such as design solutions or optimisation (where an incumbent design is featured) are addressed, as well as wide range of complimentary aspects considered critical to developing a credible business case and advancing the project.

The aim of this phase is to prepare a document that be used to attract and secure the sources of investment capital required to progress the project to completion, and form the backbone of the project moving forwards.

As with our ‘Express Viability Appraisal‘ service each opportunity is unique and addressed on its own merits but typically DEV:elemental’s Business Case Development service addresses the factors below:

+ Funding options analysis and recommendation (if required)
+ Procurement options analysis and recommendation based on known factors such as client or funder requirements, but to reflect market situation, best practice and best value solutions
+ Design team scope and fees
+ Detailed programme of activity
+ Cash flow projection
+ Outline design solutions
+ Advice on surveys / reports needed to progress
+ Planning Pre-Application Advice (if appropriate or necessary)
+ Buildability strategy
+ Development cost projection and cash flow analysis
+ Market projections for disposal or market rental along with pre-let negotiations where appropriate

The cost for this report is dependent on scale, complexity and depth required for a scheme.  Detailed quotes can be provided upon request by submitting our enquiry form

iphone_business_case

Next Steps...

DEV:elemental’s ‘Express Viability Appraisal‘ and ‘Business Case Development‘ project strategy services are key steps to evaluating, initiating, and funding development projects of any scale and complexity.  These services may be accessed simply as standlone activities as and when a potential opportunity dictates.

However, should you require a professional management partner with the knowledge, experience and industry contacts to complete your risk-mitigated project to time, cost and specification, then DEV:elemental’s ‘5-Phase Development Service‘ can help bring the development forward for successful delivery.

Breaking down the development process into 5 discrete steps that each build on the other, the our 5-phases are scaleable to comfortably deliver any type of development project from £100k to £15m and adaptable to meet the differing requirements of experienced or ab initio developers.

“DEV:elemental: making property development an elemental process”

Want to Know More or Have A Question?

Contact DEV:elemental to discuss your situation and where we can help

“DEV:elemental: making property development an elemental process”

Have a Question or Want to Find out More?

Call DEV:elemental

Email DEV:elemental

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