Presentation on theme: "Voluntary Action Camden Open Book Presentation. The Proposal – Open Book Policy To sell land owned by Camden Local Authority to generate funds to reinvest."— Presentation transcript:
The Proposal – Open Book Policy To sell land owned by Camden Local Authority to generate funds to reinvest in Community Investment Programme. Funds will be used to rebuild the Edith Neville Primary School and St Aloysius Nursery plus funds for the refurbishment of the Ossulston Estate and Godwin & Crowndale Estate. There are other projects that may be allocated funds out of this sale. By understanding how much the council might make from the sale you can appreciate how much might realistically be available for reinvestment in the Somers Town local community.
Valuation of Development Land There are two approaches to the valuation of development land: comparison with the sale price of land for comparable development; or assessment of the value of the scheme as completed and deduction of the costs of development (including developer’s profit) to arrive at the underlying land value. This is known as the residual method. In practice it is likely that a valuation would utilise both approaches, and the degree to which either, or both, are relevant depends upon the nature of the development being considered, and the complexity of the issues. Valuation Information Paper 12 Valuation of development land RICS (2008)
Residual Appraisal Having established the development potential a residual valuation can be expressed as a simple equation: (value of completed development) – (development costs + developers profit) = land value Valuation Information Paper No. 12 Valuation of development
Savills Research on development viability of Private Rented Stock
Assumptions and main input variables Site area of 1,100 m2 or 0.27 acres Building footprint of 730 m2 or 7,860 sq ft One level of commercial space and 8 levels of residential 63 residential units (average 890 sq ft) Income Residential sale price - £950 psf Affordable housing – 45% of Market Value Retail rent - £25 psf pa. Retail yield – 7% Net to Gross of 90% used for both retail and residential Costs Site surveys - £500,000 Build costs Retail - £160 psf Residential - £300 psf Marketing - £150,000 Professional fees – 13%
Sensitivity on scheme with 15% of units being affordable
Sensitivity on scheme with 30% of units being affordable