Development Appraisal Example - Salford
of 55
-
Upload
adam-turner -
Category
Documents
-
view
215 -
download
0
Transcript of Development Appraisal Example - Salford
-
8/18/2019 Development Appraisal Example - Salford
1/55
Annex 1 – Building Cost Information Service (BCIS) residential
build cost data
-
8/18/2019 Development Appraisal Example - Salford
2/55
Average prices
Rebased to Greater Manchester Edit
© 2013 Building Cost Information Service of the Royal Institution of Chartered Surveyors. A ll Rights Reserved.
Results
Description: Rate per m2 gross internal floor area for the building Cost including prelims.
Last updated: 27-Jul-2013 12:19
£/m2 study
Maximum age of results: Default period
New buildHousing, mixed developments (15) 799 398 670 779 898 1,633 645
Estate housing
Generally (15) 791 375 666 772 886 1,675 1143
Single storey (15) 870 457 744 841 985 1,389 230
2-storey (15) 772 375 659 753 867 1,500 824
3-storey (15) 764 481 636 714 839 1,675 87
4-storey or above (25) 1,037 793 - 947 - 1,370 3
Estate housing detached (15) 821 618 666 795 940 1,227 11
Estate housing semi detached
Generally (15) 788 400 670 774 897 1,389 243
Single storey (15) 906 570 782 909 1,000 1,389 48
2-storey (15) 763 400 666 751 865 1,183 184
3-storey (15) 675 571 589 645 715 898 11
Estate housing terraced
Generally (15) 813 397 676 783 947 1,675 258
Single storey (15) 864 533 713 814 1,002 1,320 52
2-storey (15) 802 397 684 782 935 1,317 169
3-storey (15) 792 481 635 699 904 1,675 37
Flats (apartments)
Generally (15) 909 453 757 878 1,019 2,667 639
1-2 storey (15) 887 494 749 867 1,000 1,685 173
3-5 storey (15) 891 453 749 872 1,008 1,923 418
6+ storey (15) 1,158 689 873 1,071 1,329 2,667 41
Building function
(Maximum age of projects)
£/m² gross internal floor areaSample
Mean Lowest Lower quartiles Median Upper quartiles Highest
Page 1 of 1Average prices - results
29/07/2013http://service.bcis.co.uk/BCISOnline/AveragePrices/Results
-
8/18/2019 Development Appraisal Example - Salford
3/55
Annex 2 – Appraisals 1 to 13
-
8/18/2019 Development Appraisal Example - Salford
4/55
-
8/18/2019 Development Appraisal Example - Salford
5/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 1 - High sales value area, high density apartments (2.0ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 600 units
Total Number of Open Market Units 600 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 36,300 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 300 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 18,150 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 36,300 £3,000 £108,900,000 9.52
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 36,300 - £108,900,000
Average value (£ per unit)
Open Market Phase 1: £181,500
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£108,900,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
6/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
300 £10,000 £3,000,000
£3,000,000
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £1,384,615
£1,384,615
£113,284,615
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £113,284,615
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £50,307,529 1,178-
£50,307,529
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £271,800 453
£0 £0
Infrastructure £3,000,000 5,000
£0 £0
Other site costs
Building Contingencies 4.0% £2,012,301 3,354
Fees and certification £4,708,785 7,848
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £60,300,415 100,501
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
7/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £4,356,000 7,260
Legal Fees (per Open Market unit): £600 £360,000 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £4,716,000
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £65,016,415
1,600,000 per Gross ha 1,600,000
Land Value £3,200,000 5,333 per OM home 5,333
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £32,000
Legal Fees £24,000
Stamp Duty £224,000
Total Interest Paid £654,135
Total Finance and Acquisition Costs £4,134,135
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £21,780,000 36,300 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £21,780,000
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/6/2019 £22,354,065
Present Value of Surplus (Deficit) at 1/8/2013 £14,652,267 £24,420 per unit
Scheme Investment IRR 105.8% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 2.8%
Site Value per hectare £11,177,032
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
8/55
-
8/18/2019 Development Appraisal Example - Salford
9/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 2 - Low density houses, mid/high sales value area (2.0ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 70 units
Total Number of Open Market Units 70 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 7,825 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 35 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 3,913 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 7,825 £2,600 £20,345,000 3.50
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 7,825 - £20,345,000
Average value (£ per unit)
Open Market Phase 1: £290,643
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£20,345,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
10/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £0
£0
£20,345,000
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £20,345,000
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £5,610,525 717-
£5,610,525
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £31,710 453
Plot specific external works £0
Infrastructure £945,000 13,500
£0 £0
Other site costs
Building Contingencies 4.0% £224,421 3,206
Fees and certification £525,145 7,502
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £7,336,801 104,811
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
11/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £813,800 11,626
Legal Fees (per Open Market unit): £600 £42,000 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £855,800
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £8,192,601
1,350,000 per Gross ha 1,350,000
Land Value £2,700,000 38,571 per OM home 38,571
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £27,000
Legal Fees £20,250
Stamp Duty £189,000
Total Interest Paid £231,186
Total Finance and Acquisition Costs £3,167,436
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £4,069,000 58,129 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £4,069,000
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 £4,915,963
Present Value of Surplus (Deficit) at 1/8/2013 £3,361,260 £48,018 per unit
Scheme Investment IRR 168.1% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 13.3%
Site Value per hectare £2,457,981
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
12/55
-
8/18/2019 Development Appraisal Example - Salford
13/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 3 - Mid density apartments, mid/high value area (2.0ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 250 units
Total Number of Open Market Units 250 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 14,960 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 125 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 7,480 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 14,960 £2,600 £38,896,000 6.41
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 14,960 - £38,896,000
Average value (£ per unit)
Open Market Phase 1: £155,584
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£38,896,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
14/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £576,923
£576,923
£39,472,923
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £39,472,923
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £16,121,600 916-
£16,121,600
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £113,250 453
Plot specific external works £0
Infrastructure £1,250,000 5,000
£0 £0
Other site costs
Building Contingencies 4.0% £644,864 2,579
Fees and certification £1,508,982 6,036
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £19,638,696 78,555
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
15/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £1,555,840 6,223
Legal Fees (per Open Market unit): £600 £150,000 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £1,705,840
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £21,344,536
1,350,000 per Gross ha 1,350,000
Land Value £2,700,000 10,800 per OM home 10,800
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £27,000
Legal Fees £20,250
Stamp Duty £189,000
Total Interest Paid £396,376
Total Finance and Acquisition Costs £3,332,626
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £7,779,200 31,117 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £7,779,200
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 £7,016,561
Present Value of Surplus (Deficit) at 1/8/2013 £4,797,531 £19,190 per unit
Scheme Investment IRR 100.5% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 6.8%
Site Value per hectare £3,508,281
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
16/55
-
8/18/2019 Development Appraisal Example - Salford
17/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 4 - Mixed type scheme, mid-high value areas (2ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 106 units
Total Number of Open Market Units 106 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 10,875 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 53 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 5,438 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 10,875 £2,576 £28,015,000 3.79
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 10,875 - £28,015,000
Average value (£ per unit)
Open Market Phase 1: £264,292
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£28,015,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
18/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £48,462
£48,462
£28,063,462
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £28,063,462
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £8,217,491 737-
£8,217,491
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £48,018 453
Plot specific external works £0
Infrastructure £1,252,500 11,816
£0 £0
Other site costs
Building Contingencies 4.0% £328,700 3,101
Fees and certification £769,157 7,256
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £10,615,865 100,150
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
19/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £1,120,600 10,572
Legal Fees (per Open Market unit): £600 £63,600 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £1,184,200
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £11,800,065
1,350,000 per Gross ha 1,350,000
Land Value £2,700,000 25,472 per OM home 25,472
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £27,000
Legal Fees £20,250
Stamp Duty £189,000
Total Interest Paid £261,045
Total Finance and Acquisition Costs £3,197,295
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £5,603,000 52,858 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £5,603,000
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 £7,463,101
Present Value of Surplus (Deficit) at 1/8/2013 £5,102,850 £48,140 per unit
Scheme Investment IRR 160.1% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 9.6%
Site Value per hectare £3,731,551
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
20/55
-
8/18/2019 Development Appraisal Example - Salford
21/55
HCA Development Apprasial Tool Printed 28/08/2013
SCHEME
Site Address Appraisal 5 - Low density houses, mid sales value area (2.0ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 70 units
Total Number of Open Market Units 70 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 7,825 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 35 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 3,913 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 7,825 £2,200 £17,215,000 3.50
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 7,825 - £17,215,000
Average value (£ per unit)
Open Market Phase 1: £245,929
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£17,215,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
22/55
HCA Development Apprasial Tool Printed 28/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £0
£0
£17,215,000
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £17,215,000
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £5,344,475 683-
£5,344,475
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £31,710 453
Plot specific external works £0
Infrastructure £945,000 13,500
£0 £0
Other site costs
Building Contingencies 4.0% £213,779 3,054
Fees and certification £500,243 7,146
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £7,035,207 100,503
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
23/55
HCA Development Apprasial Tool Printed 28/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £688,600 9,837
Legal Fees (per Open Market unit): £600 £42,000 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £730,600
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £7,765,807
1,100,000 per Gross ha 1,100,000
Land Value £2,200,000 31,429 per OM home 31,429
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £22,000
Legal Fees £16,500
Stamp Duty £154,000
Total Interest Paid £201,882
Total Finance and Acquisition Costs £2,594,382
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £3,443,000 49,186 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £3,443,000
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 £3,411,811
Present Value of Surplus (Deficit) at 1/8/2013 £2,332,805 £33,326 per unit
Scheme Investment IRR 153.1% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 12.8%
Site Value per hectare £1,705,906
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
24/55
-
8/18/2019 Development Appraisal Example - Salford
25/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 6 - Mid density apartments, mid value area (2.0ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 250 units
Total Number of Open Market Units 250 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 14,960 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 125 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 7,480 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 14,960 £2,200 £32,912,000 6.41
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 14,960 - £32,912,000
Average value (£ per unit)
Open Market Phase 1: £131,648
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£32,912,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
26/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £576,923
£576,923
£33,488,923
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £33,488,923
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £15,347,200 872-
£15,347,200
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £113,250 453
Plot specific external works £0
Infrastructure £1,250,000 5,000
£0 £0
Other site costs
Building Contingencies 4.0% £613,888 2,456
Fees and certification £1,436,498 5,746
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £18,760,836 75,043
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
27/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £1,316,480 5,266
Legal Fees (per Open Market unit): £600 £150,000 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £1,466,480
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £20,227,316
1,100,000 per Gross ha 1,100,000
Land Value £2,200,000 8,800 per OM home 8,800
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £22,000
Legal Fees £16,500
Stamp Duty £154,000
Total Interest Paid £391,485
Total Finance and Acquisition Costs £2,783,985
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £6,582,400 26,330 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £6,582,400
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 £3,895,223
Present Value of Surplus (Deficit) at 1/8/2013 £2,663,335 £10,653 per unit
Scheme Investment IRR 80.9% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 6.6%
Site Value per hectare £1,947,611
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
28/55
-
8/18/2019 Development Appraisal Example - Salford
29/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 7 - Mixed type scheme, mid value areas (2ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 106 units
Total Number of Open Market Units 106 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 10,875 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 53 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 5,438 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 10,875 £2,200 £23,925,000 3.79
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 10,875 - £23,925,000
Average value (£ per unit)
Open Market Phase 1: £225,708
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£23,925,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
30/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £48,462
£48,462
£23,973,462
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £23,973,462
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £7,825,624 702-
£7,825,624
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £48,018 453
Plot specific external works £0
Infrastructure £1,252,500 11,816
£0 £0
Other site costs
Building Contingencies 4.0% £313,025 2,953
Fees and certification £732,478 6,910
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £10,171,645 95,959
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
31/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £957,000 9,028
Legal Fees (per Open Market unit): £600 £63,600 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £1,020,600
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £11,192,245
1,100,000 per Gross ha 1,100,000
Land Value £2,200,000 20,755 per OM home 20,755
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £22,000
Legal Fees £16,500
Stamp Duty £154,000
Total Interest Paid £231,801
Total Finance and Acquisition Costs £2,624,301
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £4,785,000 45,142 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £4,785,000
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 £5,371,916
Present Value of Surplus (Deficit) at 1/8/2013 £3,673,015 £34,651 per unit
Scheme Investment IRR 146.1% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 9.2%
Site Value per hectare £2,685,958
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
32/55
-
8/18/2019 Development Appraisal Example - Salford
33/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 8 - Low density houses, mid/low sales value area (2.0ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 70 units
Total Number of Open Market Units 70 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 7,825 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 35 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 3,913 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 7,825 £1,800 £14,085,000 3.50
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 7,825 - £14,085,000
Average value (£ per unit)
Open Market Phase 1: £201,214
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£14,085,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
34/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £0
£0
£14,085,000
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £14,085,000
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £5,344,475 683-
£5,344,475
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £31,710 453
Plot specific external works £0
Infrastructure £945,000 13,500
£0 £0
Other site costs
Building Contingencies 4.0% £213,779 3,054
Fees and certification £500,243 7,146
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £7,035,207 100,503
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
35/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £563,400 8,049
Legal Fees (per Open Market unit): £600 £42,000 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £605,400
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £7,640,607
850,000 per Gross ha 850,000
Land Value £1,700,000 24,286 per OM home 24,286
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £17,000
Legal Fees £12,750
Stamp Duty £85,000
Total Interest Paid £178,069
Total Finance and Acquisition Costs £1,992,819
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £2,817,000 40,243 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £2,817,000
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 £1,634,574
Present Value of Surplus (Deficit) at 1/8/2013 £1,117,630 £15,966 per unit
Scheme Investment IRR 123.8% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 12.1%
Site Value per hectare £817,287
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
36/55
-
8/18/2019 Development Appraisal Example - Salford
37/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 9 - Mid density apartments, mid/low value area (2.0ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 250 units
Total Number of Open Market Units 250 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 14,960 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 125 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 7,480 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 14,960 £1,800 £26,928,000 6.41
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 14,960 - £26,928,000
Average value (£ per unit)
Open Market Phase 1: £107,712
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£26,928,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
38/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £576,923
£576,923
£27,504,923
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £27,504,923
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £15,347,200 872-
£15,347,200
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £113,250 453
Plot specific external works £0
Infrastructure £1,250,000 5,000
£0 £0
Other site costs
Building Contingencies 4.0% £613,888 2,456
Fees and certification £1,436,498 5,746
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £18,760,836 75,043
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
39/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £1,077,120 4,308
Legal Fees (per Open Market unit): £600 £150,000 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £1,227,120
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £19,987,956
850,000 per Gross ha 850,000
Land Value £1,700,000 6,800 per OM home 6,800
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £17,000
Legal Fees £12,750
Stamp Duty £85,000
Total Interest Paid £485,275
Total Finance and Acquisition Costs £2,300,025
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £5,385,600 21,542 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £5,385,600
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 (£168,657)
Present Value of Surplus (Deficit) at 1/8/2013 (£115,318) (£461) per unit
Scheme Investment IRR 46.8% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 6.2%
Site Value per hectare -£84,329
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
40/55
-
8/18/2019 Development Appraisal Example - Salford
41/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 10 - Mixed type scheme, mid-low value areas (2ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 106 units
Total Number of Open Market Units 106 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 10,875 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 53 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 5,438 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 10,875 £1,800 £19,575,000 3.79
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 10,875 - £19,575,000
Average value (£ per unit)
Open Market Phase 1: £184,670
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£19,575,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
42/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £48,462
£48,462
£19,623,462
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £19,623,462
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £7,825,624 702-
£7,825,624
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £48,018 453
Plot specific external works £0
Infrastructure £1,252,500 11,816
£0 £0
Other site costs
Building Contingencies 4.0% £313,025 2,953
Fees and certification £732,478 6,910
Other Acquisition Costs (£) £0
Site Abnormals (£)
De-canting tenants £0
Decontamination £0
Other £0
Other 2 £0
Total Building Costs inc Fees £10,171,645 95,959
Statutory 106 Costs (£)
Education £0
Sport & Recreation £0
Social Infrastructure £0Public Realm £0
Affordable Housing £0
Transport £0
Highway £0
Health £0
Public Art £0
Flood work £0
Community Infrastructure Levy £0
TOTAL CAPITAL VALUE OF NON-RESIDENTIAL SCHEME
TOTAL VALUE OF CAR PARKING
TOTAL CAPITAL VALUE OF RESIDENTIAL SCHEME
TOTAL CAPITALISED ANNUAL GROUND RENT
-
8/18/2019 Development Appraisal Example - Salford
43/55
HCA Development Apprasial Tool Printed 23/08/2013
Other Tariff £0
Other 1 £0
Other 2 £0
£0
Statutory 106 costs £0
Marketing (Open Market Housing ONLY) per OM unit
Sales/letting Fees 4.0% £783,000 7,387
Legal Fees (per Open Market unit): £600 £63,600 600
Marketing (Affordable Housing) per affordable unit
Developer cost of sale to RP (£) £0
RP purchase costs (£) £0Intermediate Housing Sales and Marketing (£) £0
Total Marketing Costs £846,600
Non-Residential Building & Marketing Costs
Building Costs
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Professional Fees (Building, Letting & Sales)
Office £0
Retail £0
Industrial £0
Leisure £0
Community-use £0 £0
Total Non-Residential Costs £0
TOTAL DIRECT COSTS: £11,018,245
850,000 per Gross ha 850,000
Land Value £1,700,000 16,038 per OM home 16,038
Arrangement Fee £0 0.0% of interest
Misc Fees (Surveyors etc) £0 0.00% of scheme value
Agents Fees £17,000
Legal Fees £12,750
Stamp Duty £85,000
Total Interest Paid £215,385
Total Finance and Acquisition Costs £2,030,135
Developer's return for risk and profit
Residential
Market Housing Return (inc OH) on Value 20.0% £3,915,000 36,934 per OM unit
Affordable Housing Return on Cost 0.0% £0 per affordable unit
Return on sale of Private Rent 0.0% £0 #DIV/0! per PR unit
Non-residential
Office £0
Retail £0
Industrial £0Leisure £0
Community-use £0 £0
Total Operating Profit £3,915,000
(i.e. profit after deducting sales and site specific finance costs but before deducting developer overheads and taxation)
Surplus/(Deficit) at completion 1/11/2018 £2,660,082
Present Value of Surplus (Deficit) at 1/8/2013 £1,818,815 £17,159 per unit
Scheme Investment IRR 114.0% (before Developer's returns and interest to avoid double counting
Measures
Site Value as a Percentage of Total Scheme Value 8.7%
Site Value per hectare £1,330,041
Finance and acquisition costs
-
8/18/2019 Development Appraisal Example - Salford
44/55
-
8/18/2019 Development Appraisal Example - Salford
45/55
HCA Development Apprasial Tool Printed 23/08/2013
SCHEME
Site Address Appraisal 11 - Low density houses, low value area (2.0ha)
Site Reference
File Source
Scheme Description
Date of appraisal 01/08/2013
Net Residentia l S ite Area (hectares) 2
Author & Organisation Salford City Council
HCA Investment Partner (where applicable) 0
Housing Mix (Affordable + Open Market)
Total Number of Units 70 units
Total Number of Open Market Units 70 units
Total Number of Affordable Units 0 units
Total Net Internal Area (sq m) 7,825 sq m
Total Habitable Rooms 0 habitable rooms
% Affordable by Unit 0.0%
% Affordable by Area 0.0%
% Affordable by Habitable Rooms -
% Social Rented within the Affordable Hous - by number of units
% Social Rented within the Affordable Hous - by NIA of Units (sq m)
% Social Rented within the Affordable Hous - by habitable rooms
Density 35 units/ hectare
Total Number of A/H Persons 0 Persons
Number of Social and Affordable Rent 0 Persons
Number of Intermediate 0 Persons
Total Number of Open Market Persons 0 Persons
Total Number of Persons 0 PersonsGross site Area 2.00 hectares
Net Site Area 2.00 hectares
Net Internal Housing Area / Hectare 3,913 sq m / hectare
AH Residential ValuesFull term yield based
Type of Unit Social RentedShared Ownership
phase 1
Affordable Rent
phase 1
Shared
Ownership phase
2
Affordable Rent
phase 2
1 Bed Flat Low rise £0 £0 £0 £0 £0
2 Bed Flat Low rise £0 £0 £0 £0 £0
3 Bed Flat Low rise £0 £0 £0 £0 £0
4 Bed + Flat Low rise £0 £0 £0 £0 £0
1 Bed Flat High rise £0 £0 £0 £0 £0
2 Bed Flat High rise £0 £0 £0 £0 £0
3 Bed Flat High rise £0 £0 £0 £0 £0
4 Bed + Flat High rise £0 £0 £0 £0 £0
2 Bed House £0 £0 £0 £0 £03 Bed House £0 £0 £0 £0 £0
4 Bed House £0 £0 £0 £0 £0
5 Bed House £0 £0 £0 £0 £0
6 Bed+ House £0 £0 £0 £0 £0
£0 £0 £0 £0 £0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (EXCLUDING OTHER FUNDING) £0
RP Cross Subsidy (use of own assets) £0
LA s106 commuted in lieu £0
RP Re-cycled SHG £0
Other source of funding 2 £0
Land Remediation Tax Relief £0
£0
TOTAL CAPITAL VALUE OF ALL AFFORDABLE HOUSING (INCLUDING OTHER FUNDING) £0
Open Market Housing
Type of Open Market HousingNet Area
(sq m)
Revenue
(£ / sq m)
Total Revenue
(£) Monthly Sales rate
Open Market Phase 1: 7,825 £1,400 £10,955,000 3.50
Open Market Phase 2: - - £0
Open Market Phase 3: - - £0
Open Market Phase 4: - - £0
Open Market Phase 5: - - £0
Total 7,825 - £10,955,000
Average value (£ per unit)
Open Market Phase 1: £156,500
Open Market Phase 2: £0
Open Market Phase 3: £0
Open Market Phase 4: £0
Open Market Phase 5: £0
Capital Value of Private Rental £0
£10,955,000TOTAL CAPITAL VALUE OF OPEN MARKET HOUSING
OTHER SOURCES OF AFFORDABLE HOUSING FUNDING
-
8/18/2019 Development Appraisal Example - Salford
46/55
HCA Development Apprasial Tool Printed 23/08/2013
Car Parking
No. of Spaces Price per Space (£) Value
- - -
£0
Ground rent
Capitalised annual
ground rent
Social Rented £0
Shared Ownership £0
Affordable Rent £0
Open market (all phases) £0
£0
£10,955,000
Non-Residential Values
Office £0
Retail £0
Industrial £0
Leisure £0
Community Use £0 £0
£0
TOTAL VALUE OF SCHEME £10,955,000
Residential Building, Marketing & Section 106 CostsPer sq meter
Affordable Housing Build Costs £0
Open Market Housing Build Costs £5,344,475 683-
£5,344,475
Residential Car Parking Build Costs £0
External Works & Infrastructure Costs (£) Per unit
Site Preparation/Demolition £0
Roads and Sewers £0
Services (Power, Water, Gas, Telco and IT) £0
Strategic Landscaping £0
Off Site Works £0
Public Open Space £0
Site Specific Sustainability Initiatives £31,710 453
Plot specific external w
