Methods to enhance site viabilityMethods to enhance site viability

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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?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

How can it assist?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

BenefitsBenefitsFor 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

• 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.

Breakout QuestionsBreakout Questions

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Finding a Development PartnerFinding a Development Partner

Things to consider …Things 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

Disposal RoutesDisposal Routes

• Unfettered Open Market Sale

• Joint Ventures

• OJEU compliant procurement

- Competitive Dialogue

- Restricted OJEU

- DPP

A Delivery Partner PanelA 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

3 Stage Mini-Tender Process3 Stage Mini-Tender Process

• 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?

Breakout QuestionsBreakout Questions

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