You have now identified a site, drawn up a broad proposal for its development and prepared a development appraisal to show how much the market can afford to pay for the site.
You now need to cast your proposals with more certainty, with a report in which you bring together proposals for the site.
Having undertaken your appraisal with estimated rental and capital values for the various parts of the development, you now need to research values in the market and provide proof which supports your figures. Your report will give details of these ‘comparables' and will analyse them in the context of your development. Once you have the analysis of the comparables you may need to amend your appraisal. Now you can confidently produce a market value and final bid for your development site. You can now further develop the proposals for the disposal of the parts of the development and this will enable you to propose a timetable for the development from agreement of the site purchase to final sale of the completed building. Your proposals will contain adequate sensitivity analysis (see below). Your final report will demonstrate how the development process will be managed throughout and a portion of the report needs to critically analyse the process.
Your report should include a development cash-flow for your development; this will derive the amount of profit you will achieve for undertaking the development based on the assumption that the price you can afford to pay for your chosen site is that derived in the development appraisal (in Coursework 2). The answer (the profit per development cash-flow) will be close to the result in the appraisal in Coursework 2 but not the same. Your report must also include a ground rent calculation for the site to be used as a base for identifying a basis for partnership opportunities.
Attachment:- final.rar