Quickfire L2 and L3 Case Studies

Question 1

Supported Living – York
Acomb

Answer 1

• Development Appraisal
• 25-bed supported living development of 1- and 2-bedroom apartments
  o Only 50% saleable
  o Costings (three tender prices) – c.£200 psf
  o Homes England Grant - £1M
• GDV: (£7M)
  o Gathered comparables – McCarthy and Stone
  o Adopted values (£450 psf) (1-bed £250k / 2-bed £350k)
• TDC: (£6M)
  o Site clearance, residential property on site
  o Land cost £1M (house)
• Developers Profit 15% of GDV £1M (essentially the Grant)
• Sensitivity Analysis – different tender prices
• Only viable due to grant

Question 2

Residential Apartments – Manchester
Hyde

Answer 2

• Development Appraisal
• 91-unit retirement living build-to-rent scheme (1 and 2 beds)
• Client was local authority alongside not-for-profit developer
  o Costings - £100 psf
• GDV: (£18M)
  o Adopted values – MR (£800 pcm to £1200 pcm) c.6% ARY
• TDC: (£20M)
  o Site investigation costs and remediation works - £4M
• Developers Profit – not-for-profit
• Sensitivity Analysis
• TDC higher than GDV and therefore unviable £2M negative
• Development only just commenced recently and didn’t proceed, potentially on the back of our report

Question 3

Measurement and Valuation: Industrial Owner-Occupied Valuation East Lancashire

Answer 3

40,000 sq ft
c.5% offices
2-acres
5m eaves
£50 psf
= £2M

MV2 = £1.5M
MR = £200,000 p.a.

Question 4

Measurement: Office Property Valuation Leeds

Answer 4

10,000 sq ft
= £450,000

Question 5

Valuation: Industrial Owner-Occupied Barnsley
SPX Flow, Penistone

Answer 5

80,000 sq ft
c.10% offices
£25 psf
= £2M

Question 6

Valuation: Residential Market Rent Leeds
Elland Road, Houses

Answer 6

3-bed terrace
AST
£700pcm = £8,400 pa

Question 7

Valuation: Industrial Estate Investment Hull
Tower House Lane, Hull

Answer 7

13 units
1,250 sq ft each
Rent £150,000 p.a.
£6-£8 psf
Yield 9%
= £1.6M

Question 8

Valuation: Out of Town Retail Investment Hull
Pets at Home

Answer 8

10,000 sq ft
£95,000 p.a.
6.5 years unexpired
RR 4 months

MR = £100,000 p.a.
Voids 6 mth marketing
3 mth rent free
7.5% and 8.5% Yields

= £1.2M

Question 9

Valuation: Industrial Owner - Occupied Valuation Accrington
Former Rosso, Haslingden

Answer 9

60,000 sq ft
c.30% offices
£2M Refurbishment
Warehouse £75 psf
Offices £100 psf
= £5M

Question 10

Valuation: Trade Counter Investment Scarborough
Salter Road, Scarborough

Answer 10

10,000 sq ft
50/50 retail - workshop
3 years unexpired
£45k p.a.
MR £50k p.a.

7% and 8%
Voids 3 months both

= £500,000

Question 11

Valuation: Owner Occupied Industrial property in Huddersfield?

Answer 11

• Purpose-built commercial vehicle workshop
• 25,000 sq ft GIA
• 1.5-acre surplus
• £125 psf
  MV1 = £4M
  MV2 = £3.2M