Assignment - Two Site Assembly and Development
Assignment Brief -
You are required to base your work, on what is known as the Island Site on which Great Portland Street underground station is located. You are to assume that Transport for London has closed the current station and moved it across the road. You may assume that there are no issues regarding the demolition of existing buildings or the structural integrity of the site arising from the current presence of the station and tube lines. Essentially you are to assume that these do not exist here but a short distance away.
(For clarification, the above is to give you a site that you can easily identify and work with). Essentially it is the island site upon which the surrounding roads encircle.
You are required to undertake an investigation of suitable uses of that site. You should consider all uses that you think may give the highest residual site value. Take what you consider to be the two most 'profitable' uses and analyse these in depth in respect of the site in question. You may assume if you wish that retail accommodation can be present at ground floor with other uses over, however you do not have to do this, and you should attempt to ascertain whether this would add value or not, should you decide to put retail on ground floor. You may make assumptions about developer preference and risk as appropriate but clearly state any that are made.
You should assume that it is possible to construct circa 5 storeys on the site in question. The ground floor maybe assumed to be used for a retail use, as noted above, if you desire/think that this adds value. The remaining use of the development proposed should essentially be a single use (and it is these single uses that you should compare/analyse). You should provide market justification for your choice of uses.
For all of the uses considered you should analyse likely occupiers and market information. Provide this as part of your work.
Provide some marketing particulars/information relating to both of your two shortlisted options (as if each scheme were to go ahead). The marketing particulars should be for the space 'To Let' if commercial and for sale long leasehold if residential.
Provide full residual valuations to show the assumed land value for both of your shortlisted uses. You should use realistic inputs. These should be fully annotated and supported.
You can state what you believe the site area to be as an assumption and work with this in your work. You may make assumptions about the pavement that remains in that use and the extent of the building line, but be clear about these. You should not consider planning policy - you can assume that consent would be forthcoming (for any reasonable 'mainstream use'). You need not worry about rights to light or similar or particular issues concerning neighbouring buildings, gates, fences etc., - you can make suitable assumptions if necessary. You should also recognise that in reality the site actually given would be difficult to develop.
You should assume that instead of what actually exists on the site at present, one small 1950's office building stands. This can be assumed to be owned by the site owner. It is let on a 25 year FRI lease inside the security of tenure provisions of the Landlord and Tenant Act 1954. It was let in 1994. The rent presently being paid is £95,000 p.a. and the rateable value is £87,500. In 2008 the tenant improved the property by installing air-conditioning at a cost of £80,000.
You should state by reference to Statute and case law how and when you will obtain possession of the building in order to enable development to commence. What if any compensation will be payable to either tenant?
The work should reference the law applicable to England and Wales.
You should make what other additional assumptions you feel are necessary. As in a real world situation you have been given some material, although some of the material given may not be required.