讲解 DEVELOPMENT APPRISAL (URBAN 5115) 2024/25 辅导 Java编程

DEVELOPMENT APPRISAL (URBAN 5115)

Project Brief 2024/25

You are employed by a leading Planning and Property Development Consultancy and have been instructed by a client to prepare a feasibility and viability appraisal for a development site in Glasgow.

Your client, Roseview Realty Ltd (RRL), is a prominent speculative developer that typically undertakes projects by borrowing the necessary capital and selling the completed development, subject to prevailing market conditions.

RRL is considering Class 1A (retail) and Class 3 (food and drink) uses on the ground floor to enhance street-level activity, with the primary use of the upper floors being purpose-built student accommodation. However, RRL has also instructed your firm to compare the viability of this original proposal with an alternative use of your choosing.

There is no rigid structure, but your report is expected to include the following:

· An assessment of the site and the suitability of the proposed uses taking into account location, proximate developments and relevant development and planning policies.

· A simple indicative 2D or 3D illustration of the scheme should be provided to show how it fits onto the site. Regardless of the method used, floor dimensions and areas should be clearly indicated.

· A thorough review of the property market, demand and supply conditions, along with a careful estimation of key appraisal inputs based on an in-depth analysis of comparable properties.

· A reasonably detailed description of the development process, outlining the expected stages from the initial site acquisition date (on the assignment due date) to final disposal. Development timeline is best presented with the aid of Gantt chart.

· Discounted cash flow (DCF) appraisals used to estimate the maximum bid price your client should offer to purchase the freehold interest in the site. Two DCFs are required, one for the original intention of the RRL and another for your own alternative proposal.

· A reflection on how land use impacts the viability of real estate development projects and the bidding capabilities of developers. Your reflection should be based on the results of your appraisals but should also cite relevant theory and empirical studies.

· Detailed sensitivity analyses to identify and evaluate key risk variables. These analyses should only be conducted on your proposal.

Data and Assumptions

You are expected to collect your input data for the appraisals exploring secondary data sources e.g., Spon's architects' and builders' price book, CoStar, real estate market reports, professional and academic journals, newspapers, government reports, development policies and other supplementary materials available from the course Moodle, the university’s library and websites of relevant organisations. It is common to assume certain values or conditions relating to the proposed development and the appraisal, you are expected to state clearly all your assumptions and provide suitable justifications. In addition to any assumptions you might make, you should allow for the following:

· Developer’s profit at 17.5% of the development value, development finance at 7.5% per annum, 6.5% for management cost, 10% for letting fee and 0.5% for sale fee.

· If applicable, assume leases are on a Full Repairing and Insuring (FRI) basis with a 3-month fit-out period for relevant uses during which no rent will be received by the developer.

· You should also allow a maximum of £50,000 for design cost, 5% of the construction cost for contingencies and 13% for professional fees.

· Gyms/art galleries on higher floors in an office block should be treated as office space.

· Buy-to-let housing can be valued using either the income method or the direct comparison method since the units are currently empty. If there is affordable housing in the proposal, you will need to discount appropriately.

· When working out the maximum bid price for the sale, you should allow 6.5% land acquisition costs (to cover Land and Building Transaction Tax and associated legal and agent fees).

Site Details

The proposed development site (Figure 1) is 20 India Street, Glasgow, currently being marketed by CBRE. Overlooking Charing Cross Railway station, the site has been described as “a significant city centre development site”. Located on the doorstep of Glasgow’s cultural quarter, offering unrivalled access to Glasgow’s extensive transport network, as well as world-class leisure and food and beverage amenities that the submarket provides. The site is located west of Glasgow city centre in an area that has been transformed by two new major office developments, making it a viable development with several use options. The site with a total area of circa 0.52 hectares (55,757 ft²) benefits from proximity to the M8 motorway, Scotland’s busiest road and the main link with Edinburgh to the east and Glasgow International Airport to the west. The actual site is shown within the red dotted line on the map below.

Figure 1: Proposed development site

Submission Arrangement

The report should be word-processed and contain no more than 2,500 words in line with the university’s assessment regulations. "Students are required to keep within 10 per cent of the specified word count” which includes titles, tables, footnotes, and appendices but excludes references/bibliographies. However, as you might have many tables to include in your report, you are allowed to screenshot your DCF, sensitivity and scenario analyses and add them within the report or as appendices. That way, you will be able to gain additional space for textual content. However, note that any other tables will count towards the word limit and should not be screenshot.

“Assignments not submitted by the required deadline will be subject to a 2-mark deduction for each working day overdue, subject to a maximum of five working days. If an assignment is submitted after the five working days limit, the student will be awarded zero (grade H)”. Your calculations should be clearly laid out, using a font that is easy to read. You must score a grade of D3(9) or above for your submission to pass the course. The assignment is due at noon on Tuesday, 27 May 2025. You are advised to run the main body of your coursework through Turnitin as a draft before making the final submission. An electronic copy of the coversheet and guidance on how to use Turnitin can be found in the SPS Common Room. For further details about rules concerning word count, late submission and re-assessment, please consult the School or PGT handbook.

Please note that you are expected to submit your MS Excel file along with the main report, using the same Turnitin link provided on Moodle.

Marking Criteria

Your report will be graded using the following criteria:

Guidelines for enquiries regarding your project

It is normal for students to seek further clarification while writing the summative assessment, issues requiring further clarification might be generic or specific to individuals. The best way to ask such questions is to post them on the Moodle assignment forum where everyone can have a chance to see them and my responses. It will also prevent the same set of questions from being asked repeatedly unnecessarily. However, you are equally free to email me directly to ask questions that are peculiar to you.

Please bear in mind that I might be unable to respond over weekends and holidays. Accordingly, I would like to enjoin you to ask all your questions by the last working day preceding the assignment submission due date so that I can see the questions and respond in time before you turn in your work.

Additional Information

CoStar provides market reports, and area analytics and contains a transaction database for commercial properties which will potentially be useful for this project. If you do not yet have access to CoStar or have any logging problems, please contact the course coordinator or email [email protected]. Besides the CoStar database, you may also need to consult other sources for real estate data, information on other sources of the real estate market and building cost data is available on course Moodle.

Given the information already made available to you, there should be no reason for you to contact any external party (e.g., the city planning department, tenants, owners or surveyors) about this site. Any requests for material or information must be channelled through the course lecturer. On no account should you enter the areas of the site closed to the public, partly for your safety and partly for legal reasons.

This is an independent submission and not group work. While we recognise the benefits of students studying and working in groups to hone their skills at valuation, appraisal and data collection and analysis, there is a point where this becomes unacceptable. Your interpretation of market evidence and the layout of your appraisals must be wholly independent. Marks will be deducted if there is evidence that any groups of people have submitted reports with elements that show joint efforts.