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MAR
07

Understanding developers and development finance

Date:
Tuesday, 07 March 2017 at 9:30AM - 4:30PM
Venue:
Prospero House (etc Venues), 241 Borough High St, London SE1 1GA
Price:
£399 for RTPI members (From £199 with a season ticket)
 
£199 for licentiate members and independent consultants; £140 for students, unemployed and retired; £499 for non-members
Organiser:

Some planners become developers and to make this transition you need more than lectures to understand the business, in particular how to value development land.

The planning system largely depends on private development companies to implement its forward plans, and a better understanding of the process will help planners to negotiate successful outcomes.

This masterclass uses lectures, workshops and exercises to help you think like a landbuyer. Enjoy a varied day and discover the practical application of development economics.

Key issues covered in this masterclass:

  • Schemes different developers want
  • The principles of a development appraisal
  • Mistakes that developers make
  • Land contracts & options
  • Development finance

Benefits of attending

  1. An overview of development finance, development firms and the jargon used
  2. Practical experience of working up a development appraisal from inception to land valuation
  3. Understand the risks which face developers and the profits they seek
  4. Demonstrate that "Planning Gain" in one form or another is usually achievable

Who should attend?

  • Development control
  • Forward planners
  • Consultants
  • Implementation
  • Councillors

 

Programme 

9.00 Registration and coffee

Morning session

9.30 Explaining the language of development

  • The different types of developer
  • Sources of finance & their security
  • Joint Ventures and overage and clawback
  • Contingency and profit

10.30 Assessing sales values from market evidence

  • Published data
  • Discovering what others are doing

11.00   Coffee break

11.15 Build costs & build contract

  • How to assess build costs
  • The developer/contractor building contract
  • Time taken to build out a scheme

12.15 Designing a scheme for a small urban site

12.30 Lunch break

Afternoon session

1.30 Translating the designed scheme into key floorspace data

2.00 Property valuation

  • Investment value, current use value, hope value, ransom value
  • Residual value

2.15 Residual valuation of the designed scheme

2.45 Taxation of development

  • Overview of taxes which apply
  • Planning Gain - s.106 and the Community Infrastructure Levy
  • Considering requests to relax these requirements

3.00 Afternoon break

3.15 Timings of a development scheme

  • The key stages and how long they take

3.30 Types of land contract

  • Unconditional contract, conditional contract and option contract

3.45 Strategic land development

  • The principles & some examples

4.15 Close

  

Notes

  • The timings may vary during the course of the day to allow time for questions as they arise.
  • We provide calculators & scale rules 

 

Run by Tristram Reynolds, Associate Director for an NHS Trust & former developer