Development Strategy

It is crucially important to have a clearly defined strategy for progressing a development proposal, whether to realise the development itself or to increase land value in advance of disposal of an asset. Such a strategy is likely involve a number of steps which will involve assessing suitability and viability (including understanding whether planning permission is achievable); identifying a strategy for securing a partner or disposing of an asset; and negotiating a deal which is financially acceptable.

TCP Limited is able to assist landowners and others in understanding the processes and realising the full potential of development assets.

Assessment of market suitability and demand

The assessment of what is possible and where there is a market is the first step in identifying the potential of land for redevelopment.

We can help establish the suitability of the range of alternative uses and report on prevailing market conditions and consider these against existing and emerging local planning policy.  From there an indication of the relative financial attractiveness of options can be considered.

Development Viability

Detailed appraisals of development proposals is a key area of our work.  Development appraisals can be used for a range of purposes:

  • To determine values to inform strategic direction
  • To assess financial proposals made by third parties
  • To support in negotiations (such as in respect of Section 106 Agreements)

We use industry standard software (Argus Developer – formerly Circle Developer) in this area of our work and our experience enables us to quickly understand the development economics of a particular proposal or site.

Project Team Management

Progressing development aspirations or preparing the way to maximise value as a landowner can be quite complex requiring the skills of a range of professionals.  We are experienced in co-ordinating and assimilating the information that these specialists produce to focus in on implications for a disposal or development strategy.

Marketing and Disposal

We have extensive experience of marketing development property including informal and formal tender, either full open marketing or a more restricted marketing approach.

We are also conversant and experienced in undertaking developer selection through OJEU procedures.

Negotiating Sales and Development Agreements

The nature of the disposal of an asset can take a number of different forms and includes:

  • An option to buy land within a specified timescale for a specified price (Option)
  • Disposal without any material conditions (Unconditional Sale)
  • Disposal subject to planning and other matters (Conditional Sale)
  • Disposal by way of a development agreement – whereby land is drawn down over time within the parameters set down in an agreement between the landowner and a developer
  • Disposal by way of joint venture – typically where a landowner contributes land which is match funded by a developer and both parties share in the risk and reward of a project

We are experienced in all these methods of disposal.

Joint Sale and Joint Venture Agreements

We act for landowners who are seeking to dispose of land or develop in conjunction with others.

Joint sale agreements bind two or more parties together in a disposal and specify how the combined properties will be sold and how the proceeds from any sale will be distributed between the parties.

Joint ventures involve the transfer of assets into a specially established legal vehicle. Commonly these are used where a landowner transfers land and their partner, a developer, contributes equity funding to an equivalent value and expertise. The financial return (as well as any liabilities) in such a situation would be distributed equally between the two parties.

Section 106 Agreements

Once the principle of development appears to have been established through the planning committee’s vote to grant a planning permission there is often still a lot of work to do in securing an actual permission.  With larger developments there will be a resolution to grant planning permission  subject to the signing of an acceptable Section 106 Agreement.  Such an agreement is a legally binding document which will contain obligations enforceable on the implementation of the planning permission and will include the making of certain payments, related to highways improvements, the provision of affordable housing and so on.  It is important that the expectations of the local planning authority are understood early in the process as these may impact on financial viability and making a financial case can be central to reducing obligations in respect of affordable housing in particular.

We can help you in the following areas:

  • Understanding the impact of a local authority’s requirements on your scheme
  • Making a case to the local authority for a reduced requirement based on viability grounds