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PROPERTY

PROPERTY. Pain or Gain By David Parsley BSC, FRICS. 4th March 2008. Property Slump! Sub-Prime Crisis Yield Crash Funding Dries Up Property Values Fall. SUB PRIME. The value of your Church has fallen by between 10 – 20%. As the Managing Director of a

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PROPERTY

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  1. PROPERTY Pain or Gain By David Parsley BSC, FRICS 4th March 2008

  2. Property Slump! Sub-Prime Crisis Yield Crash Funding Dries Up Property Values Fall SUB PRIME

  3. The value of your Church has fallen by between 10 – 20%

  4. As the Managing Director of a Methodist Property Company It matters to you !!

  5. No. 1 Shareholders

  6. No. 2 Customers

  7. COMPLIANCE…… DDA Fire Asbestos Health & Safety - Building Control Planning

  8. City Centre LocationRetail & Leisure

  9. Retail’s economic role • Retail provides a vital link between production and consumption • More 25% increase in retail sales in last five years • Significant employer – 11% of total UK workforce • Contributes almost a quarter of GDP • 270,000 shops • 200,000 businesses • 111 million sq m of retail space

  10. The importance of shopping centres • There are approximately 2,000 shopping centres in the UK, 742 of which are bigger than 5,000 sq m in size • More than £700m is estimated to be spent annually on shopping centre and retail park development and redevelopment • Retail development will only take place where supply and demand conditions dictate it is necessary • Having established a need, the key question determining whether development can proceed is the balance between land-use, land value, build cost, rent and end capital value

  11. CITY CENTRES Planning Policy PPS6

  12. Government’s Key Objectives • Planning for the growth and development of existing centres, and • Promoting and enhancing existing centres, by focusing development in such centres and encouraging a wide range of services in a good environment, accessible to all.

  13. Sequential Approach to Site Selection • First, locations in appropriate existing centres where suitable sites or buildings for conversion…….. • Edge of centre locations, with preference given to sites that are well connected to the centre; then… • Out of centre sites, with preference given to sites which are well served by choice of means of transport….

  14. The proportion of new* retail development in town centres is likely to reach 40% of total new development by 2015. This is up from 14% in 1995. • Medium to local towns will see 64% of the new development happening within their domains. * New build only Source: BCSC

  15. PPS6 at Risk! Barker Review Planning White Paper May 2007

  16. Drivers for City Centre Change • Developers • Local Authorities

  17. Compulsory Purchase Process Council Agreement Referencing Prepare Order Acquisition by negotiation in advance Planning Permission Public Enquiry Time Scale Compensation

  18. How does the Development process work? • Opportunity • Concept • Outline Scheme • Valuation Appraisals • In Principle Works • Outline Planning Application • Anchor Tenant (s) • Funding • Development Agreement • Surveys • CPO Orders • Road Closurers • Highways • Full Planning Application/Grant • Section 106 + 278 Agreements • Ready to commence on site BUILD

  19. A Developer Calls! Options: Outright Purchase Relocate off Site Relocate on Site Retains Part Only Refurbish/Alter Retain

  20. How to React! • With Caution • Do not commit • Need to confer • Need specialist advice – legal & property • Get commitment on fees.

  21. Issues for You! • Temporary relocation • Loss of presence • Like for like replacement/Space • Specification • Energy saving • Maintenance free? • Loss of freehold? • Timing • Dust/noise/disruption • Restricted access • Vibration • How much will it cost you to deal with? – Fees and Church time. • Do you fully understand the proposal? • Are you getting full value? • What do you bring to the development? • What do you lose – What do you gain? • Developers profit/your share! • ? Build in income streams. • Destination • Out of hours activity • 24 hour access • Weddings/Funerals • Car parking-loss/replacement

  22. If in principle agreement, enter into an Exclusivity Agreement Heads of Terms Key Deliverables

  23. Detailed Negotiations Leading To Development Agreement

  24. So, what should you do to prepare for the inevitable? -Be part of civic life mix -Understand the planning process and local plans -Get close to Local Authority key players -Support regeneration

  25. Why? Potential for new facility Like Worksop! Better Dividends Higher Profit

  26. Why not be the Instigator of your own development scheme??!!

  27. How? People like Knight Frank • Experience in all types of development, residential and commercial. • Offices near you (through UK) My telephone number: 020 7861 1547

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