We start from a shared objective and comparable conditions
We first establish the investor's objective: sale, long-term letting, own use or phased development. We define the corresponding requirements for use and quality. We assess the options at a common valuation date, using consistent area definitions and the same financial principles. One-off sale proceeds and rental income generated over several years can be compared through cash flows prepared for a common period, with consistent treatment of the value remaining at the end of that period. This makes the different development paths comparable.
We weigh the value of retention alongside the interventions required
The potential for preservation depends on architectural value, condition and intended use together. Spatial proportions, original materials and the relationship with the surroundings may also enrich the new use. Surveys and specialist opinions establish what can be retained, what needs strengthening or replacement and how the building’s usability in winter and summer can be improved. Hidden defects, building-services upgrades, downtime and site constraints are as much part of the expenditure as demolition and preparation are for new construction.
Additional area must translate into usable accommodation
Additional floor space from new construction may provide an economic advantage if it can lawfully be built, served by utilities and transport, function well and attract demand. Within the gross floor area, we separately identify saleable or lettable space, circulation areas, shared spaces and ancillary areas. We account separately for parking space requirements. We also consider internal lighting, the quality of courtyards and entrances, and the relationship with the surroundings. We compare the benefit of the additional floor space with the total expenditure required to achieve it.
Earlier income and lower peak funding can matter
A conversion that can be phased may allow earlier revenue or partial continuation of the existing use. The conditions for this — separation of the works, safety and additional operating costs — require specific assessment. We evaluate the different timing of new construction and the build-up of occupancy in the same financial model. Alongside the expected outcome, we check the peak interim funding requirement: the project can only be funded throughout if the necessary funds are available when needed.
We also account for future operation and adverse changes
Alongside capital expenditure, we compare the costs of energy and water use, maintenance, repairs and replacements over a common period. Access to systems as they wear out matters, as does the extent of demolition or operational downtime their replacement would require. We assess the effects of cost increases, weaker demand and delays both separately and together. We show which changes would reverse the ranking and the technical, cost and market conditions under which we recommend proceeding.
The examples are illustrative and do not describe client projects.
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