Illustrative development situations
We use four fictional development situations to show how an assessment proceeds: what data are required, which matters need specialist input and what recommendation can be prepared for the investor. The examples illustrate the method; they do not document completed client assignments.
Residential development of an existing property
In this example, disused buildings occupy the site and the owner wishes to develop homes for sale.
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We compare three directions: retaining the existing buildings, partially altering them and constructing new buildings after demolition. The comparison uses prices as at the same date, consistent area definitions and the same cost scope.
From permitted development capacity to achievable dwellingsPlanning requirements, structural findings and layout studies establish the residential area that can actually be delivered.
We compare the recorded and surveyed conditions, local planning rules, protection status and the specialist assessment of the structure. Permitted floor area alone does not establish the number of homes. The design study must also account for circulation, building services, daylight, escape routes and parking. We treat the estimated residential area and number of homes as assumptions until supported by designs and specialist investigations.
Costs, revenue and financing timingWe calculate total expenditure, the sales programme and peak funding requirements together.
The cost estimate includes demolition or strengthening, utility upgrades, design, preparation, construction and a contingency linked to identified risks. We estimate revenue from saleable area, the dwelling mix and supported prices. The cash flow accounts for the timing of expenditure and expected receipts, together with tax and financing conditions. We show separately when and how much external funding or equity may be required.
Recommendation for the investorWe identify the preferred option, supportable investment limits and conditions for proceeding.
The recommendation identifies the option proposed for further design and the purchase price and development budget that can be justified under the assessment's assumptions. We also show which technical or market changes would alter the conclusion. To support the decision, we jointly assess the scheme that can actually be delivered, the cash flow over time and the funding required in a less favourable scenario.
Phased development of a larger site
In this example, a partly brownfield site can be developed in phases.
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However, substantial expenditure on roads and utilities is required before the first receipts. We therefore assess the possible phasing alongside the site’s legal and technical divisibility, the expected rate of sales or lettings and the finance available.
An independently operable first phaseWe plan independent operation, access and utilities for the first phase in relation to the whole site.
With the designers and specialists, we establish how the part completed in the first phase can be accessed and used independently, and what utilities and changes to land parcels it requires. We distinguish works serving only that phase from investments serving the whole site. Shared costs are allocated between phases on a reasoned basis. In the cash flow for the whole project, however, every expenditure is recorded when it is actually due, regardless of the cost allocation.
Revenue and funding requirements for each phaseWe test market absorption, cash flow and the timing of additional capital for each phase.
For each phase, we estimate the saleable or lettable area, market launch date, revenue profile and operating costs. Shared investment is counted once in the model for the entire site. We show when incoming receipts are sufficient and when further funding is needed. We separately assess slower sales in the first phase and the deferral of later phases.
Conditions for releasing each phaseEach subsequent phase depends on confirmed capacity, required approvals and available capital.
We provide a development timetable and a funding plan for each phase. We identify the conditions for starting: the necessary authority decisions, confirmed utility capacity, the required level of pre-sales or lettings and available funding. The investor uses these to decide on the next phase. We also establish the stage that must be reached for the completed part to remain independently usable if work is paused or the project is redesigned.
Converting an institutional building for housing
In this example, a former institutional building could be converted into student accommodation, rental housing or housing with additional services.
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Each requires a different layout, operating approach and revenue model. We therefore assess the architectural brief alongside the needs of future users and the operating requirements.
Change of use and architectural suitabilityWe test layouts, structure and specialist requirements against the intended housing model.
The design assessment starts with the structural system, the depth of the building wings, ceiling heights, window positions and vertical circulation. Together with the appointed specialist designers, we clarify the requirements for accessibility, fire safety, sanitary facilities and building services. We also allow for the space required by shared facilities. The number of rooms or dwellings that can be created is determined jointly by a workable layout and the applicable requirements.
Whose income, whose costs?Demand, occupancy and operating costs are assessed against the chosen contractual model.
We assess the level of charges at which demand can be supported by customers' ability to pay, and how occupancy may vary during the year. We calculate the owner's rental income separately from the operator's revenue. Staff, utility and maintenance costs are allocated to the party contractually responsible for them; refurbishment expenditure and contingencies are shown separately. We reflect the effects of vacancy and tenant turnover in both revenue and the additional costs incurred.
Requirements for the brief and operationWe connect achievable capacity, required interventions and the conditions for selecting an operator.
The recommendation delivered to the investor includes the target users, capacity substantiated by the investigations, the ratio of shared to income-generating areas and the works required. We define the criteria for selecting the operator and the conditions for further design. We examine how changes in occupancy and operating costs affect operating income. Refurbishment needs are also included in the longer-term cash flow.
Reusing a former industrial site
In this example, existing industrial halls and land assumed to be developable are available, but the environmental consequences of the former industrial activity remain unknown.
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We assess letting, phased conversion, new construction and sale. A reasoned recommendation on the direction can only be made once the environmental condition, technical suitability and market demand are known.
Environmental condition and responsibilitiesInvestigation requirements, liabilities and restrictions on use are clarified before the investment decision.
We review previous activities, official records and observations from the site. The appointed environmental specialist uses these to determine the investigations and sampling required. Separate assessment topics include the condition of soil and groundwater, hazardous substances in the buildings and the documentation of previous environmental works. Based on the specialist findings, we work with the appointed lawyer to clarify liability, contractual obligations and any restrictions on use.
Buildings, infrastructure and occupier demandWe assess retained buildings and confirmed utility capacity against the requirements of target occupiers.
With the necessary specialists, we review the usability of the halls in terms of clear height, load-bearing capacity, structural condition, fire safety, loading arrangements and heavy-vehicle access. We check the utility capacity actually available: an existing connection alone does not establish that the intended new use can be served. We develop the conversion brief and the scope of cost estimation around the space and energy needs of the target tenants.
Appraisal and conditions for proceedingEnvironmental obligations are treated as separate cost and timing items, with explicit conditions for proceeding.
The model separately identifies remediation, demolition, infrastructure improvements and expenditure required before use can begin, together with the expected timescales. Targeted investigations are needed to clarify environmental liabilities; a general contingency does not resolve the uncertainty. We identify the missing investigations and the prerequisites for approving the purchase or investment. The delivered material compares the use options, presents cash flow over time and records the further tasks and those responsible.
Let’s discuss where your development project stands.
At our first meeting, we review the characteristics of your project and the decisions you face. We discuss which investigations have already been completed, what data are missing and which specialists need to be involved. On this basis, we define the scope of the appointment and the material to be delivered.
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