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Methods to enhance site viability 16.02.12

Methods to enhance site viability 16.02.12. Some examples. Joint venture approaches/risk sharing Local investment models – e.g.TIF Value engineering – tenure, mix, phasing affordable delivery Deferred land receipt. What is deferred land receipt?.

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Methods to enhance site viability 16.02.12

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  1. Methods to enhance site viability16.02.12

  2. Some examples.. • Joint venture approaches/risk sharing • Local investment models – e.g.TIF • Value engineering – tenure, mix, phasing affordable delivery • Deferred land receipt

  3. What is deferred land receipt? • Deferred land receipt is taking payment for land later in the development programme • This might be staged payments or a lump sum consideration • Payment could be made at the end of the development period or at a given point during construction

  4. How can it assist? • Potentially offers a larger land receipt to the landowner • Allows payment to be structured to tie in with land owner priorities – works well with sites with large infrastructure outlays/abnormal costs • Allows developers to avoid large capital outlay and substantial finance costs early on the programme • Allows developer to concentrate on developing infrastructure/public realm/other key outputs earlier, rather than just accelerating house building • Can work well with phased development

  5. Benefits • For land owner: • A larger receipt and in some instances on very marginal sites, a receipt • Key regeneration priorities phased to be delivered early in project • For developer: • Avoids substantial capital outlay at start of project • Avoids finance costs of the large outlay • Allows sales revenue to be captured before land payment • Allows more flexibility in cashflow

  6. Breakout Questions • What are the political competing pressures/financial constraints on land? • What would make it easier to be creative with land disposal? • What opportunities can deferring receipts bring? • Are there marginal sites where deferring receipts may positively impact on delivery? • How might HRA flexibilities work with these models to deliver? On surplus and existing developed land.

  7. BREAK

  8. Finding a Development PartnerThings to consider … • Getting the timing right • De-risking the site to make it attractive • Disposing of sites in geographical packages • Choosing attractive contract and payment terms • Value for Money

  9. Disposal Routes • Unfettered Open Market Sale • Joint Ventures • OJEU compliant procurement • - Competitive Dialogue • - Restricted OJEU • - DPP

  10. A Delivery Partner Panel • A fast and efficient ‘one stop shop’ for the procurement of development and construction-related works • Works can be procured via a mini tender process as opposed to a fully OJEU compliant procurement process • Available to partner organisations like Local Authorities • & Registered Providers • Re-procurement of new panel

  11. 3 Stage Mini-Tender Process

  12. Breakout Questions • What is your current approach to procuring partners and the disposal of land? • How have OJEU, JVs and partnering through development assisted delivery in your organisation? • What is you experience of using delivery panels? • What criteria would you use to procure a delivery panel? • What are your views on a pan-London register of public land holdings?

  13. FEEDBACK

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