7. Finally, some challenges … and some
opportunities
CIL & S.106 receipts
13/14 - £600,000
S.106
13/14 - £ 4.8m
14/15 – £6.6m
The Telegraph
(Reuters)
8. CIL Charging Schedule
Review about to get underway in tandem with
production of Pt 2 of Plymouth Plan
Looking at greater geographical differentiation in
rates – political impetus
Sales values in Plymouth – source Land Registry
9. CIL Charging Schedule
Also considering reintroducing some ideas we
abandoned first time round as latest CIL
amendment regulations now provide for different
rates on basis of scale:
- Lower rates for tall buildings
(higher build costs)?
- Higher rates for smaller developments not
required to provide affordable housing (therefore
more viable and able to pay CIL, but higher build
costs as fewer economies of scale)?
12. Developments on the ground –
South Yard
Current Outline Planning
Application for a Marine Industries
Production Campus
13. South Yard
Land currently in MOD ownership
PCC the planning applicant
To be transferred to PCC in stages commencing April 2015
Chock full of Listed Buildings (‘liabilities’)
Many environmental constraints
‘Completely unviable’
14. South Yard
£28 million funding gap
But still a viability exercise to go
through - if we don’t we
weaken the case for asking
others to open the books, and
thus our ability to seek to
mitigate the impacts of other
developments.
20. 1
Development Appraisal -
DATE 07-Nov-14T
R D Plymouth
PURCHASE PRICE £4,700,000 PROPERTY LOAN (DEV) £4,773,150
STAMP DUTY pre 1.00% £47,000 INTEREST RATE 6.00%
AGENTS FEE pre 0.00% £0 PER MONTH 0.50%
SOLICITORS FEE pre 0.35% £16,450 NO. OF MONTHS 30
SEARCH FEES ETC pre £300
SURVEY FEE post 0.20% £9,400 INTEREST DUE 1 £715,973
PURCHASE COST £4,773,150 BUILDING LOAN £9,896,692
INTEREST RATE 6.00%
LOAN ARRANGEMENT FEE post 0.10% £14,670 MULTIPLE 48.00%
LOAN LEGAL FEES post 0.25% £11,933 BUILD PERIOD 24
LOAN BROKERAGE FEES post 0.00% £0 INTEREST DUE 2 £1,187,603
LOAN EXIT FEES post 0.00% £0 TOTAL INTEREST £1,903,575
TOTAL PURCHASE COST £4,799,753 Sales
4 Bed houses O/M £295,000
22
£6,490,000
OTHER COSTS 3 Bed houses O/M £255,000
17
£4,335,000
INSURANCE pre 0.13% £18,371 3 Bed houses O/M £230,000
26
£5,980,000
UTILITIES post 0.25% £24,742 2 Bed houses O/M £170,000
15
£2,550,000
MARKETING post 0.00% £0 2 Bed houses O/M £127,500
10
£1,275,000
OTHER - ARR FEE £0 4 Bed houses A/H £115,000
7
£805,000
PRE- PLANNING COSTS £5,000 2 Bed houses A/H £85,000
5
£425,000
CIL £368,472 4 Bed houses A/H £147,500
9
£1,327,500
S.106 £1,500,000
PRE PLANNING LOAN COSTS £0
OFFICE COST post £3,000 Gross Sales (OM)
111
£23,187,500
TOTAL OTHER COSTS £1,919,584
BUILDING COSTS Area £ PER SQ Ft TOTAL
CONTRACTOR () post 95,641 £90 £8,607,690
Contingency (5%) post - £430,385
TOTAL CONTRACTOR - £9,038,075
- Resale Costs
Prof fees 9.50% £858,617 SOLICITORS 0.20% £54,491
TOTAL BUILDING COSTS £9,896,692 AGENTS FEE 1.50% £408,680
Marketing say £20,000
TOTAL DEVELOPMENT COST £18,519,604 TOTAL RESALE COSTS £483,170
TOTAL RESALE VALUE £22,704,330 Net Sales #########
TOTAL COST AT COMPLETION £18,074,550 LOAN AVAILABLE 60% GDV
£13,622,597.81
TOTAL COSTS
£18,519,604
% LOAN AVAILABLE
74%
CASH INPUT
£4,897,006.26
PROFIT ON CAPITAL 34.18%
INPUT % PA
NET DEVELOPMENT PROFIT £4,184,726
% DEVELOPMENT PROFIT 22.02
Examples from
the coal face……
