Westmoreland House and Carriageworks I Bristol
Prepared by Upside London Ltd I November 2014
Economic Viability Appraisal Report
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Bristol(City(Council(Westmoreland(House(and(The(Carriageworks,(Bristol(BS1(Economic(Viability(Appraisal(Report(Marc(Pennick(Fifth(Capital((18(November(2014((!Private(and(Confidential((((! ! ! ! ! ! ! ! ! ! ! ! !!
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Contents(
Appendix(1(–(Schedule(of(Accommodation(((Appendix(2(–(Build(Cost(Model((EC(Harris)(–(September(2014((Appendix(3(–(Argus(Developer(–(Appraisal(Summary((
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1( Upside(London(Limited( Page(03(
2(( Report(and(Policy(Background( Page(04(
3( Project(Details( Page(07(
4( Cost(Assumptions( Page(08(
5( Income(Analysis( Page(10(
6( Benchmark(Land(Value( Page(16(
7( Summary(of(the(Appraisal( Page(18(
8( Conclusions( Page(19(
9( Appendices( Page(20(
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1( Upside(London(Limited!
(Upside! London! is! a! property! services! company! specialising! in! development! consultancy,!affordable!housing!and!economic!viability.!!The!company!aims!to!find!viable!solutions,!which!facilitate! development,! while! at! the! same! time! supporting! the! reasonable! mitigation! of!development! impact.! ! In! so! doing,! we! operate! at! the! centre! of! development! economics;!assisting! developers! and! Local! Planning! Authorities! reach! effective! solutions,! against! a!challenging!financial!background.!!This!report!has!been!prepared!by!Andrew!Esam!MRICS!and!Richard!Ashdown,!who!have! in!excess!25!years!experience!in!residential!development!and!consultancy,!and!currently!advise!house!builders!and!developers!on!property!assets!valued!in!excess!of!£1!billion.!Richard!held!the!position!of!National!Director! in! the!Residential!Team!at! Jones!Lang!LaSalle! for!5!years,!before!starting!Upside!London!Limited.!!The!Upside!London!team!holds!in!excess!of!25!years!experience!in!residential!development!and! consultancy! and! currently! advises! house! builders! and! developers! on! property! assets!valued!in!excess!of!£1!billion.!
(
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2(( Report(Contexts(and(Policy(Background!!
This!report!is!provided!in!connection!with!the!current!planning!application!for!development!of!a!site!located!at!Westmoreland!House!and!Carriageworks,!Bristol!BS1!(the!“Site”).!!
!The! applicant,! Fifth! Capital,! has! instructed! Upside! London! Limited! (“ULL”)! to! provide! an!independent! assessment! of! the! economic! viability! of! the! project! in! respect! of! Bristol! City!Council’s!(“BCC”)!current!policy.!!
( (Planning(Policy,(Affordable(Housing,(Financial(Contributions(and(Viability(
(The! Bristol! Local! Plan! is! a! set! of! planning! documents! produced! by! BCC,!which! contains! a!range!of!policies! to!guide! future!development!decisions.! It!was!previously! called! the!Local!Development!Framework.!The!Core!Strategy!(adopted!June!2011)! is!an! integral!part!of!the!Bristol!Local!Plan.!!!Policy!BCS17!of!the!Core!Strategy!states!that:!!Affordable*housing*will*be*required*in*residential*developments*of*15*dwellings*or*more.*The*following*percentage*targets*will*be*sought*through*negotiation:**
• 40%*in*North*West,*Inner*West*and*Inner*East*Bristol;**• 30%*in*all*other*locations;**
In* residential* developments* below* 15* dwellings* an* appropriate* contribution* towards* the*provision*of*affordable*housing*may*be*sought*(either*as*a*financial*contribution*or*as*on*site*provision)* in* accordance* with* any* relevant* policy* in* the* Site* Allocations* &* Development*Management*Development*Plan*Document.**The!policy!further!states!that:!!*Where* scheme* viability* may* be* affected,* developers* will* be* expected* to* provide* full*development*appraisals*to*demonstrate*an*alternative*affordable*housing*provision.**‘Diagram!4.17.1:!Affordable!Housing!Percentage!Requirements!by!Strategic!Housing!Market!Assessment!Zone’!shows!the!subject!site!to!be!allocated!in!“Bristol!Inner!East”!zone,!which!targets!40%!affordable!housing!provision!for!new!developments.!!With!regards!to!tenure!split,!we!have!had!regard!to!paragraph!4.17.6!of!the!Core!Strategy,!which!indicates!that:!!The* tenure*and* type*/* size*profile*of* the*affordable*housing*will*be*guided*by* the*Strategic*Housing*Market* Assessment* and* other* local* housing* requirements.* An* indicative* citywide*tenure* split* of* 77%* social* rented* affordable* housing* and* 23%* intermediate* affordable*housing*will*be*sought.*
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We! have! further! considered! the! ‘Affordable! Housing! Practice! Note’,! produced! by! BCC! in!April! 2014.! Section! 3,! ‘Addressing! financial! viability! issues! and! agreeing! base! viability!position’,!states!that:!!It*is*accepted*that,*in*some*circumstances,*due*to*financial*viability,*it*may*not*be*possible*to*meet* affordable* housing* requirements* in* full.* In* such* circumstances,* the* applicant* will* be*required*to*submit*a*viability*appraisal*in*support*of*their*planning*application*and*agree*to*a*process*of*validation*in*order*to*determine*the*viability*of*the*proposed*scheme.***Determining(Viability(and(the(Purpose(of(this(Report!!The!purpose!of!this!submission! is!to!provide!an! independent!assessment!of!the!viability!of!proposed! development,! and! in! so! doing! to! assess! the! level! of! obligations! which! can! be!provided!to! the! local!planning!authority,!while!sustaining!an!appropriate! land!value! to! the!landowner!and!profit!to!the!developer,! in! line!with!the!principles!of!viability!set!out! in!the!National! Planning! Policy! Framework.! ! Assessing! the! viability! of! a! proposed! development!involves!comparing!the!residual!land!value!of!the!site,!on!the!basis!of!the!proposed!scheme,!with!an!appropriate!benchmark.!!!!The!Homes!and!Communities!Agency!(HCA)!good!practice!guidance!manual!‘Investment!and!Planning!Obligations:! Responding! to! the!Downturn’! states! that! “a! viable!development!will!support!a!residual!land!value!at!a!level!sufficiently!above!the!site’s!Existing!Use!Value!(EUV)!or! Alternative! Use! Value! (AUV),! to! support! a! land! acquisition! price! acceptable! to! the!landowner”.!!!!As!such,!where!a!development!proposal!generates!a!residual!value,!which!is!greater!than!the!appropriate! benchmark! value,! by! a! sufficient! margin,! it! is! deemed! financially! viable! and!therefore!likely!to!proceed.!!Conversely,!if!the!residual!value!is!lower!than!the!benchmark,!it!is! deemed! financially! unviable! and! therefore! unlikely! to! proceed.! ! This! is! based! on! the!accepted!assumption! that!a!developer!will! always! seek! to!bring! forward! the!highest! value!scheme.!!!In! assessing! the!Residual! Land!Value!of! the!proposed! scheme,! full! account! is! taken!of! the!following!inputs:!!
A:(Costs( B:((Revenue(Build!Costs!(Construction!Costs)! Private!Residential!Unit!Sales!Planning!and!Development!Fees! Ground!Rent!Portfolio!Investment!Sale!Planning!Contributions! Affordable!Housing!Investment!Sale!Marketing!Costs!! Commercial!Portfolio!Investment!Sale!Land!Purchase!Costs! !!Development!Finance! !!Land!Holding!Finance! !!Developer’s!Profit! !!
!
B!F!A!=!Residual!Land!Value.!
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It!need!not!be!the!land!value!that!is!the!target!residual.!!A!fixed!land!price!can!be!input!as!a!cost,!and!a!residual!developer!Profit!assessed.! !Alternatively!the!residual!target!can!be!the!planning!contributions.!!
The! next! task! is! to! arrive! at! an! appropriate! Benchmark! against! which! to! compare! the!Residual!Land!Value!of!the!proposed!scheme,!to!determine!whether!the!proposal!is!viable;!this!is!assessed!further!at!Section!6.!
Our!approach!has!been! to!understand! the!development!economics!of! the!proposal! at! the!Site,!to!assess!the!viable!level!of!affordable!housing!contribution,!and!to!present!the!results!using!proprietary!appraisal!software.!(Information(relied(upon(
(We!have!been!provided!with,!and!relied!upon:!!
• A! schedule! of! accommodation! (dated! October! 2014),! prepared! by! Assael!
Architecture!Limited!(“Assael”).!!
• Scheme!floor!plans!(dated!October!2014),!prepared!by!Assael.!
• A!Build!Cost!Model!(dated!September!2014),!prepared!by!EC!Harris.!!Limitations((This! report! does! not! constitute! a! valuation! and! should! not! be! relied! upon! for! valuation!purposes.!!
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3( Project(Details! The!existing!site!comprises!the!derelict!Grade!II*!Listed!Carriageworks;!Grade!II!Listed!no.4!Ashley! Road;! and! Westmoreland! House.! The! latter! two! buildings! are! proposed! to! be!demolished! as! part! of! the! new! development.! This! application! proposes! comprehensive!redevelopment! of! the! site! for! a! residentialFled! mixed! use! development,! including! the!provision! of! ground! floor! nonFresidential! accommodation! in! the! Carriageworks! and! along!Ashley! Road;! provision! of! residential! floorspace! (C3)! on! the! upper! floors! and! across! the!remainder! of! the! site;! the! reinstatement! of! the! historic! Carriageworks! roof;! a! new! public!realm;! and! new! communal! landscape! garden! area.! The! Grade! II*! listed! Carriageworks!building!will!be!sensitively!restored!as!part!of!our!proposals.!
!This!application!proposes!to!build!118!homes!comprising!59!x!1!bed!flats;!32!x!2!bed!flats;!15!x!3!bed!flats;!3!x!2!bed!duplexes!and!9!x!3!bedroom!houses.!!A!summary!of!the!proposed!units!is!provided!below:!!!!!!!!!!!!!!!
!!
Unit(Type( Bedrooms( No.(of(Units(
Smallest(NIA((sq(ft)(
Largest(NIA((sq(ft)(
Average(NIA((sq(ft)(
Flat! 1! 59! 495! 635! 544!Flat! 2! 32! 678! 915! 757!Flat! 3! 15! 840! 947! 881!
Duplex! 2! 3! 797! 840! 825!House! 3! 9! 1,098! 1,098! 1,098!TOTAL( (( 118( (( (( ((
!The!scheme!proposes!to!provide!7,093!sq!ft!of!commercial/community!space,!on!the!ground!floor!of!the!existing!Carriageworks!building.!!A!full!schedule!of!accommodation!can!be!found!in!Appendix!1!of!this!report.!!In! addition! to! the! information! contained! in! this! report! and! appendices,!we!will! provide! a!copy!of!the!application!drawings!and!accommodation!schedule!to!the!Council’s!advisors.!!
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4( Cost(Assumptions(!
We! have! provided! an! Argus! Developer! appraisal! in! order! to! analyse! the! development!economics! for! this! scheme.! Argus! Developer! provides! a! clear! cash! flow! and! is! generally!accepted!and!widely!used!in!the!property!industry!for!development!and!viability!appraisals.!!Listed!below!are!the!development!costs!with!a!short!explanation!where!required.!
!Construction!–!a!cost!plan!provided!by!EC!Harris! (dated!October!2014)!has!been!provided,!which! is! submitted! with! this! report! in! Appendix! 2.! ! The! cost! estimate! reflects! the!specification!required!to!achieve!good!sales!pricing!in!the!surrounding!area.!(
!The!build!cost!sum!of!£17,738,360!has!been!apportioned!across!the!private!and!affordable!residential!units!and!reflects!£158!per!sq!ft!on!the!Gross!Area.!(Professional(Fees(/(Contingency!–!professional!fees!have!been!included!in!the!appraisal,!at!a!rate! of! 10%! of! construction! costs,! whilst! contingency! is! accounted! for! within! the!Construction!Cost!Model.!!
!Community( Infrastructure( Levy( (CIL)! –! BCC’s! CIL! Charging! Schedule!was! approved! by! Full!Council! on! 18th! September! 2012! and! has! been! applied! to! all! developments! that! receive!planning!permission!from!1st! January!2013.!The!Charging!Schedule!states!that!“the! level!of!CIL!payable!will!be!calculated!based!on!the!net!increase!in!floorspace”,!with!rates!calculated!in!accordance!with!the!following!table:!!
!(Source:*Bristol*City*Council*Community*Infrastructure*Levy*Charging*Schedule,*Sept*2012)*!The!Site!is!situated!in!the!“Outer!Zone”,!meaning!that!CIL!will!be!charged!at!£50!per!sq!m,!calculated!as!follows:!!
8,828*sq*m*(net*increase*in*residential*floor*space)*x*£50*per*sq*m*=*£441,400*!We!have!assumed!that!CIL!will!not!be!chargeable!to!the!proposed!Affordable!Housing!floor!space,!totalling!721!sq!m.!!!
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The! proposed! development! provides! commercial/community! accommodation.! For! the!purposes!of!CIL!charging,!we!have!assumed!the!retail!rate!of!£120!per!sq!m,!as!follows:!!
659*sq*m*(net*increase*in*retail*commercial*floor*space)*x*£120*per*sq*m*=*£79,080**
s106(and(s278(planning(costs(–!an!allowance!has!been!made! for!£118,000! for!a! s106!and!s278!contribution,!reflecting!£1,000!per!unit.!This!will!cover!contributions!to!highways!and!other! identified!needs! in!preliminary!discussions!with!the!Council!and! it! is!anticipated!that!much!of!this!money!will!be!allocated!towards!art!and!culture!in!the!surrounding!community.((Purchase(costs!–!Agents!fees!have!been!incurred!at!1.2%!(inclusive!of!VAT)!of!the!purchase!price;!legal!fees!at!0.6%!(inclusive!of!VAT),!and!Stamp!Duty!is!included!at!4%.!
!Marketing(and(disposal(costs!–!we!have!assumed!marketing!costs!of!1.5%!of!sales!values,!sales! agent’s! fees! are! included! at! 1.0%! of! sales! values,! plus! 0.5%! per! of! sales! vales! for!associated! legal! costs.! ! For! the! commercial! units,! agents! fees! are! included! at! 10%! of! the!rental! income! for! the! units,!whilst! associated! legal! costs! are! included! at! 5%! of! the! rental!income.!!
!Finance(costs! –!7%! interest! is! assumed,!as!a!blended!cost!of! capital.! !We!have!not!added!arrangement!fees!for!such!a!small!sum.! !We!believe!this!to!be!at!the!lower!end!of!funding!costs!for!a!project!of!this!nature.!!
!Profit–! profit! is! included! at! a! rate! of! 19.35%! of! the! GDV! of! the! scheme,! representing! a!weighted! average! of! 20%! of! the! GDV! for! the! private! units,! 15%! of! the! GDV! for! the!commercial!units,!and!6%!of!the!GDV!for!the!affordable!units.!!!In! our! recent! experience,! developer’s! returns! in! the! prevailing! market! conditions! are!typically! appraised! at! 20F25%! on! GDV,! which! reflects! onFgoing! uncertainty! relating! to!economic!conditions!and!the!associated!lack!of!development!funding!available!for!marginal!schemes.!The!appraisal!has!been!modelled!at!20%!profit!on!GDV!for!the!private!element!of!the!scheme,!being!at!the!lower!end!of!this!range,!in!the!interest!of!reasonableness.!!!!
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5( Income(Analysis(
The!majority!of!the!revenue!for!the!proposed!development! is!derived!from!the!sale!of!the!110!private!residential!units,!and!associated!income!from!the!ground!rents.!Further!revenue!is!derived!from!the!sale!of!the!affordable!housing!units!to!a!Registered!Social!Landlord!(RSL)!and!the!sale!of!the!commercial!units!to!a!private!investor.!The!assumptions!for!each!element!of!the!anticipated!revenue,!or!GDV,!for!the!proposed!scheme!are!explained!below:!
!Residential(Private(Sale(Units(!ULL!have!made!enquiries!into!the!local!market,!holding!informal!conversations!with!agents!and! analysing! recent! comparable! sales! evidence.!When! considering! comparable! evidence,!we!have!considered!in!particular!the!date!of!the!sale,!the!location!of!the!unit,!and!the!size!and!specification!of!the!property.!We!have!had!regard!to!the!following!new!build!evidence:!!Finzels!Reach,!Bristol!!Finzels! Reach! comprises! a! new! build! development;! located! one! mile! to! the! south! of! the!subject!Site,!on!Bristol’s!harbour!side.!The!scheme!comprises!73,!one!and!two!bedroom!flats,!arranged!from!ground!to!eighth!floor.!Units!are!currently!being!marketed!in!Malt!House!and!Castle!Wharf!and!we!are!aware!of!the!following!sold!prices!from!the!last!12!months:!!!
Building( Plot( Floor( Bedrooms( NIA((sq(ft)( Sold(Price( Price(per(sq(ft(
Castle!Wharf! 8.08! 8th! 2! 785! £280,000! £357!
Castle!Wharf! 8.04! 8th! 1! 644! £225,000! £349!
Castle!Wharf! 6.10! 6th! 1! 485! £187,500! £387!
Castle!Wharf! 5.09! 5th! 1! 485! £185,000! £381!
Castle!Wharf! 3.03! 3rd! 1! 600! £205,000! £342!
Castle!Wharf! 2.09! 2nd! 1! 485! £177,500! £366!
Castle!Wharf! 2.08! 2nd! 1! 485! £177,500! £366!
Castle!Wharf! 2.07! 2nd! 1! 481! £182,500! £379!
Castle!Wharf! 1.02! 1st! 2! 701! £250,000! £357!
Castle!Wharf! G.01! Gnd! 1! 643! £175,000! £272!
Malt!House! 8.04! 8th! 2! 1,323! £445,000! £336!
Malt!House! 8.03! 8th! 2! 1,098! £400,000! £364!
Malt!House! 8.02! 8th! 2! 1,087! £390,000! £359!
Malt!House! 7.08! 7th! 1! 570! £195,000! £342!
Malt!House! 7.03! 7th! 1! 538! £185,000! £344!
Malt!House! 7.02! 7th! 1! 560! £185,000! £330!
Malt!House! 4.03! 4th! 2! 1,098! £305,000! £278!
Malt!House! 3.06! 3rd! 2! 667! £249,000! £373!
Malt!House! 3.02! 3rd! 1! 624! £180,000! £288!
Malt!House! 2.02! 2nd! 1! 560! £175,000! £313!
Malt!House! 1.04! 1st! 2! 667! £245,000! £367!
Malt!House! 1.02! 1st! 1! 560! £175,000! £313!
!! !! !! !! !! Average( £342(
!
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The! sold!prices!at! Finzels!Reach!demonstrate!an!average!of!£342!per! sq! ft.!We!are!of! the!opinion!that!the!location!of!this!development!is!superior!to!that!of!the!subject!Site.!!!Horizon!and!Eclipse,!Bristol!!Horizon!and!Eclipse! are! two!adjacent!new!build!developments,! located!0.6!miles! south!of!the! subject! Site,! adjacent! to! Cabot! Circus,! Bristol’s! prime! shopping! centre.! The! schemes!comprise!54,!one!and!two!bedroom!apartments,!with!Horizon!arranged!over!first!to!fourth!floor!and!Eclipse!from!first!to!twelfth.!We!are!aware!of!the!following!sold!prices!from!the!last!12!months:!!Building( Plot( Floor( Bedrooms( NIA((sq(ft)( Sold(Price( Price(per(sq(ft(
Horizon! 637! 4th! 2! 681! £269,000! £395!
Horizon! 636! 4th! 1! 514! £199,000! £387!
Horizon! 634! 4th! 1! 538! £199,000! £370!
Horizon! 633! 4th! 2! 747! £269,000! £360!
Horizon! 627! 3rd! 2! 681! £264,000! £388!
Horizon! 626! 3rd! 1! 514! £197,000! £383!
Horizon! 624! 3rd! 1! 538! £195,000! £362!
Horizon! 623! 3rd! 2! 747! £264,000! £353!
Horizon! 621! 3rd! 1! 475! £183,000! £385!
Horizon! 614! 2nd! 1! 538! £193,000! £359!
Horizon! 612! 2nd! 1! 500! £177,000! £354!
Horizon! 611! 2nd! 1! 475! £181,000! £381!
Horizon! 607! 1st! 1! 514! £193,000! £375!
Horizon! 606! 1st! 2! 658! £250,000! £380!
Horizon! 603! 1st! 2! 747! £250,000! £335!
Horizon! 602! 1st! 1! 500! £177,000! £354!
Horizon! 601! 1st! 1! 475! £179,000! £377!
Eclipse! 1112! 12th! 2! 775! £325,000! £419!
Eclipse! 1106! 11th! 2! 804! £325,000! £404!
Eclipse! 191! 10th! 2! 775! £315,000! £406!
Eclipse! 186! 9th! 2! 804! £315,000! £392!
Eclipse! 182! 9th! 2! 775! £305,000! £394!
Eclipse! 172! 8th! 2! 775! £300,000! £387!
Eclipse! 132! 4th! 2! 775! £287,500! £371!
Eclipse! 126! 3rd! 2! 804! £295,000! £367!
Eclipse! 125! 3rd! 2! 804! £280,000! £348!
Eclipse! 122! 3rd! 2! 775! £285,000! £368!
Eclipse! 121! 3rd! 2! 775! £290,000! £374!
!! !! !! !! !! Average( £377(
!The!sold!prices!at!Horizon!and!Eclipse!demonstrate!an!average!of!£377!per!sq!ft.!We!are!of!the! opinion! that! the! location! of! this! development! is! superior! to! that! of! the! subject! Site.!Further,!the!views!available!from!the!higher!units!of!the!Eclipse!produce!higher!values!than!we!would!expect!to!observe!at!the!subject!Site.!!!!!
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!Invicta,!Harbourside,!Bristol!!Invicta!is!a!new!build!development,!located!1.3!miles!to!the!south!west!of!the!subject!Site!on!Bristol’s! harbour! side.! The! scheme! comprises! 170,! studio,! one,! two! and! three! bedroom!apartments,!arranged!from!Ground!to!Fifth!floor.!We!are!aware!of!the!following!sold!prices!within!this!development!from!the!last!12!months:!!
Plot( Floor( Bedrooms( NIA((sq(ft)( Sold(Price( Price(per(sq(ft(
4169! 5th! 2! 666! £350,000! £526!
4168! 5th! 3! 911! £625,000! £686!
4167! 5th! 3! 1,056! £650,000! £616!
4062! 5th! 3! 1,295! £475,000! £367!
4059! 5th! 1! 507! £178,500! £352!
4163! 4th! 1! 410! £190,000! £463!
4162! 4th! 2! 781! £320,000! £410!
4158! 4th! 3! 1,095! £630,000! £575!
4157! 4th! 3! 1,087! £630,000! £580!
4143! 2nd! 0! 408! £142,500! £349!
4142! 2nd! 0! 372! £142,500! £383!
4140! 2nd! 2! 651! £260,000! £399!
4139! 2nd! 1! 410! £170,000! £415!
4138! 2nd! 2! 781! £279,500! £358!
4136! 2nd! 2! 669! £285,000! £426!
4135! 2nd! 0! 408! £160,000! £392!
4133! 2nd! 3! 1,402! £597,000! £426!
4132! 2nd! 3! 1,398! £597,000! £427!
4131! 2nd! 2! 1,297! £455,000! £351!
4130! 2nd! 0! 408! £137,500! £337!
4129! 2nd! 0! 372! £137,500! £370!
4127! 1st! 2! 651! £255,000! £392!
4126! 1st! 1! 419! £161,500! £385!
4125! 1st! 2! 781! £267,500! £343!
4124! 1st! 2! 646! £260,000! £402!
4123! 1st! 2! 669! £270,000! £404!
4122! 1st! 0! 339! £155,000! £457!
4117! Gnd! 1! 544! £179,000! £329!
4116! Gnd! 2! 644! £249,950! £388!
4114! Gnd! 2! 628! £265,000! £422!
4113! Gnd! 2! 630! £260,000! £413!
!! !! !! !! Average( £436(
!The!sold!prices!at!Invicta,!Harbourside!demonstrate!an!average!of!£436!per!sq!ft.!We!are!of!the!opinion!that!the!location!of!this!development!is!far!superior!to!that!of!the!subject!Site.!The!development! is!situated! in!one!of! the!most!desirable!areas!of!Bristol!and!many!of! the!units! offer! views! over! the! harbour! side,! attracting! premium! prices! over! much! of! the!surrounding!properties.!!
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We!have!found!that!much!of!the!new!development!in!Bristol!is!occurring!to!the!south!of!the!subject!site,!towards!the!harbour!side!and!more!central!city!locations.!To!further!inform!our!opinion!of!sales!pricing,!we!have!considered!the!following!reFsale!comparable!transactions!in!the!locality:!!One!Bedroom!Flats!
!
Address( Description( Proximity( Date(Sold( Area((sq(ft)( Price(( Sale(Price(
(psf)((20A!Fremantle!Square,!
Bristol!BS6!Ground!Floor!flat!with!garden.! 0.2!miles! JulF14! 527! £190,000! £360!
608!Armidale!Place,!Bristol!BS6!
Modern/Purpose!Built!(2010).! 0.2!miles! JulF14! 657! £227,500! £346!
Flat!1,!50!Picton!Street,!Bristol!BS6!
Conversion.!C.1900!build! 0.1!miles! JulF14! 721! £217,500! £302!
51b!Springfield!Road,!Bristol!BS6!
Georgian!ground!floor!flat.!! 0.1!miles! JunF14! 654! £172,000! £263!
2nd!Floor!Flat,!30!Arley!Hill,!Bristol!BS6!
Period!conversion!property.! 0.2!miles! AprF14! N/A! £208,000! Unknown!
!Two!Bedroom!Flats!!
Address( Description( Proximity( Date(Sold( Area((sq(ft)( Sale(Price(( Sale(Price(
(psf)((Flat!404!Kings!Quarter!Apartments!Bristol!BS2!
Modern/Purpose!Built!(2006)! 0.3!miles! JunF14! 700! £210,000! £300!
421!Armidale!Place,!Bristol!BS6!!
Modern/Purpose!Built!(2010)! 0.2!miles! JunF14! 657! £197,000! £300!
414!Armidale!Place,!Bristol!BS6!
Modern/Purpose!Built!(2010)! 0.2!miles! JunF14! 678! £225,000! £332!
406!Armidale!Place,!Bristol!BS6!
Modern/Purpose!Built!(2010)! 0.2!miles! MayF14! 657! £193,100! £294!
303!Armidale!Place,!Bristol!BS6!
Modern/Purpose!Built!(2010)! 0.2!miles! MayF14! 623! £200,137! £321!
12,!Priors!Hill!Flats,!Bristol!BS6! Unknown! 0.3!miles! MayF14! 700! £173,845! £248!
609!Armidale!Place,!Bristol,!City!Of!Bristol!BS6!
Modern/Purpose!Built!(2010)! 0.2!miles! MayF14! 657! £201,595! £307!
11!Portland!Heights,!Dean!Street,!Bristol!BS2! New!Build!(2013)! 0.3!miles! AprF14! 969! £233,000! £241!
12!Portland!Heights,!Dean!Street,!Bristol!BS2! New!Build!(2013)! 0.3!miles! AprF14! 678! £181,000! £267!
Flat!10!Arley!Court,!21!Arley!Hill,!Bristol,!BS6!5PH!
Modern/Purpose!Built!(2005)! 0.2!miles! MarF14! 678! £216,950! £320!
!Three!Bedroom!Flats!!
Address( Description( Proximity( Date(Sold( Area((sq(ft)(
Sale(Price((
Sale(Price((psf)((
28!Bath!Buildings,!Bristol!BS6!!
Modern/Purpose!Built!(2009)! 0.2!miles! MayF14! 958! £273,000! £285!
Flat!5!Arley!Court,!21!Arley!Hill,!Bristol!BS6!
Modern/Purpose!Built!(2005)! 0.2!miles! JulF14! 861! £249,995! £290!
Flat!95!Hamilton!Court,!Bristol!BS2!!
Modern/Purpose!Built!(2004)! 0.3!miles! DecF13! 969! £295,000! £305!
!!
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Three!Bedroom!Houses!!
Address( Description( Proximity( Date(Sold( Area((sq(ft)(
Sale(Price((
Sale(Price((psf)((
80!Shaftesbury!Avenue,!Bristol,!BS6!
Victorian!Terraced!Property!(c.1900)! 0.3!miles! JunF14! 1,184! £302,104! £255!
66!Shaftesbury!Avenue,!Bristoll,!BS6!
Victorian!Terraced!Property!(c.1900)! 0.3!miles! JanF14! 1,058! £271,125! £256!
5!Wellington!Avenue,!Bristol,!BS6!
Victorian!Terraced!Property!(c.1900)! 0.2!miles! NovF13! 1,087! £275,000! £253!
!For!the!purpose!of!the!viability!appraisal,!ULL!have!applied!sales!prices!to!the!private!units!within! the!proposed! scheme,! in! accordance!with! the!market! research!above.! Sales!pricing!for!the!scheme!has!been!assumed!as!follows:!!
! !Unit(Type( Sales(Price(1!Bed!Flat! £215,000!2!Bed!Flat!! £250,000!
2!Bed!Duplex! £265,000!3!Bed!Flat!! £300,000!
3!Bed!House! £375,000!!For! the! purposes! of! our! appraisal,! we! have! therefore! assumed! that! the! GDV! for! the!proposed!private!units!is!£27,295,000,!reflecting!£360!per!sq!ft!on!an!overall!basis.!!
! !Residential(Affordable(Units(!The! proposed! development!will! provide! 8! affordable! housing! units,! designated! as! Shared!Ownership!tenure,!summarised!as!below:!!
Building(( Unit(Ref( Unit(Type( Floor( Beds( Hab(Rooms(
Area((sq(m)(
Area((sq(ft)(
C! C1F1! Flat! First! 2! 3! 67! 721!C! C1F2! Flat! First! 2! 3! 66! 710!C! C1F3! Flat! First! 3! 4! 88! 947!C! C2F1! Flat! Second! 2! 3! 66! 710!C! C2F2!DUPLEX! Duplex! Second!/!Third! 2! 3! 74! 797!C! C2F3!DUPLEX! Duplex! Second!/!Third! 2! 3! 78! 840!C! C2F4!DUPLEX! Duplex! Second!/!Third! 2! 3! 78! 840!C! C2F5! Flat! Second! 1! 2! 46! 495!
!For! the! purposes! of! our! appraisal,! we! have! therefore! assumed! that! the! GDV! for! the!proposed!shared!ownership!units!is!£1,025,820,!reflecting!£169!per!sq!ft!on!an!overall!basis.!The!values!adopted! for! this! tenure!are!based!on! the!assumption! that!40%!of! the!equity! is!sold!to!the!occupier!and!the!RSL!charges!a!rent!of!1%!on!the!retained!equity,!in!accordance!with!BCC!guidance.!!
!Commercial(/(Community(Units(!The!proposed!development!proposes!to!provide!7,470!sq!ft!of!commercial/community!units.!We!have!attributed!an!overall!rent!of!£10!per!sq!ft!to!this!accommodation,!capitalising!the!
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income! at! 8%.! This! produces! a! capital! value! of! c.! £900,000,! accounting! for! a! six! months!letting!period! for! the!space,! in!accordance!with!market!conditions.!The!values!attached!to!these!units!reflect!the!likely!tenants!of!the!accommodation,!being!local!occupiers.!!!Ground(Rent(Portfolio(
!It! is! assumed! that! the! Ground! Rent! portfolio! will! be! sold! as! an! investment.! We! have!calculated! the! capital! value!of! this! investment! sale!by! attributing! a! likely! ground! rent! and!yield!to!each!of!the!private!units.!!!Following! enquiries! into! the! local!market,!we! have! attributed! a!Ground! Rent! of! £300! per!annum,!per!unit.!This!has!been!capitalised!at!6%,!to!produce!a!capital!value!of!c.!£500,000.!!We! have! assumed! that! the! houses!will! be! sold! ‘freehold’! and! thus!will! be! excluded! from!provision!of!Ground!Rent.!
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6( Benchmark(Land(Value!
As!explained!at!Section!2!above,!viability! is! typically! tested!by!comparing!the!residual! land!value!of!the!proposed!scheme!with!a!benchmark!land!value.!!The!benchmark!can!be!derived!following! an! assessment! of! the! value! of! the! site! in! its! existing! use! value! (EUV)! or! a!reasonable!alternative!use!value!(AUV).!!!!In!this!instance,!the!Site!comprises!a!site!allocated!as!B1!office!use.!However,!we!are!of!the!opinion!that,!given!the!period!of!time!that!the!office!buildings!on!site!have!been!vacant!and!the!condition!of!the!buildings,!it!would!be!more!appropriate!to!consider!the!value!of!the!Site!as! a! residential! development! site.! Further,!we! believe! that! the! fact! that! the! Council! have!considered!previous!residentialFled!schemes!and!were!proposing!to!impose!a!CPO!of!the!Site!as!residential!land,!suggests!a!very!clear!precedent!for!this!assumption.!!We!have!considered!a!report!prepared!by!BNP!Paribas!Real!Estate!(“BNP!Paribas”)!for!BCC,!entitled!“Community!Infrastructure!Levy:!Viability!Study”,!dated!February!2012.!This!report!states:!!Threshold* land* values* are* identified* in* the* residential* assessments* contained* in* the*appendices.* These* are* the* values* at* which* it* is* assumed* that* developments* will* come*forward*for*residential*development.*The*threshold*land*values*are*often*significantly*higher*than*the*EUV*of*the*site.*Whilst*EUV*will*vary*for*similar*uses*in*different*parts*of*the*city,*it*is*considered*that*the*following*threshold*land*values*provide*appropriate*benchmarks:**
• Residential*land:*£2.1*million*per*ha;*• Offices:*£4.4*million*per*ha.*
!On!this!basis,!the!threshold!land!value!for!the!subject!Site!(extending!to!0.51!ha)!would!be!£1,071,000!on!the!basis!of!residential!land!and!£2,224,000!on!the!basis!of!offices,!although!these! values! are! acknowledged! to! be! higher! than! the! EUV! in! each! case.! The! BNP! Paribas!report!goes!on!to!say:!!As*noted*above,*we*have*included*a*‘residential*land*value’*as*one*of*our*benchmarks.*This*is*sourced* from* the*Valuation*Office*Agency* and* reflects* consented* and* serviced* land* values*and*thus*a*very*generous*benchmark*against*which*to*test*developments*which*will*require*an* element* of* servicing* and* do* not* have* planning.* Valuers* would* typically* deduct* an*allowance* for* risk* from* the* value* of* sites* without* consent.* However,* for* the* purposes* of*testing*levels*of*CIL,*we*have*made*no*deduction*for*risk,*which*adds*to*the*viability*‘buffer’.*
!While!this!extract! implies!that!a! lower!threshold!land!value!could!be!applied,!this!needs!to!be!seen!in!the!context!that!the!Site!is!currently!occupied!by!a!large!office!building.!Therefore!in!BNP!Paribas’!view!(acting!for!BCC),!the!threshold!land!value!sits!somewhere!between!£2.1!million!and!£4.4!million!per!ha.!!!Given!the!wide!range!of!threshold!land!values!suggested!by!the!BNP!Paribas!report,!we!have!sought!local!land!comparables!to!better!understand!the!benchmark!land!value!of!the!subject!Site.!!!We!are!aware!of!Huller!House!/!Cheese!Warehouse,!comprising!a!0.34!acres!site! that!was!bought! unconditionally! for! £1,050,000.! The! site! was! subsequently! granted! planning!
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permission!in!April!2013!for!55!units,!of!which!4%!was!contributed!to!affordable!housing,!in!the! form! of! a! £166,000! off! site! contribution.! Taking! the! unconditional! price! on! a! per! ha!basis,!would!generate!a!value!of!£1,575,000!for!the!subject!Site.!!!We!have!therefore!attributed!a!value!of!£1,575,000!to!the!site!as!a!benchmark!by!which!to!assess!the!proposed!scheme.!!
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7( Summary(of(the(Appraisal(
For!ease!of!reference!we!provide!here!a!summary!of!the!Argus!Developer!Appraisal!relating!to!this!project,!demonstrating!the!viability!position:!
! ! !Westmoreland(House/Carriageworks:( Summary(Appraisal((
!! !!
Costs( !!
!! !!
Profit!on!GDV! £5,750,243!
Construction!Costs! £17,738,360!
Contingency!! Inc.!in!Build!Costs!
Professional!Fees! £1,773,836!
Marketing!/!Letting!Fees! £438,660!
Disposal!Agents!Fees! £297,170!
Disposal!Legal!Fees! £148,585!
Total!Finance!Costs! £1,422,108!
Community!Infrastructure!Levy! £520,480!
s106!and!s278!costs!(estimate)! £118,000!
Land!Acquisition!Fees! £82,756!
!! !!
Total(Costs( £28,290,198(
(( ((
Revenue( ((
!! !!
Private!Units! £27,295,000!
Affordable!Units!! £1,025,820!
Commercial/Community!Units! £898,501!
Ground!Rent!Portfolio! £497,697!
!! !!
Total(Revenue( £29,717,018(
!! !!
Residual!Land!Value! £1,426,820!
!! !!
Proposed!Purchase!Price!/!Benchmark! £1,575,000!
!! !!
RLV(a(EUV( a£148,180(!
A!full!Argus!Developer!Appraisal!Summary!can!be!found!in!Appendix!3!of!this!report.!!
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8( Conclusions(drawn(from(the(analysis(!
In!compiling!the!appraisals!we!have!applied!the!siteFspecific!construction!costs!and!property!values! relating! to! the! proposed! development,! alongside! market! assumptions! relating! to!other!development!costs!such!as!finance!and!profit.!!This!is!in!line!with!the!principles!of!an!economic!viability!assessment!of!this!nature.!
!Accounting! for! the! inputs! explained! above,! the! Argus! appraisal! for! the! proposed!development! calculates! a! residual! land! value! for! the! proposed! development! of,! say,!£1,425,000.!!A!summary!of!the!appraisal!and!the!cash!flow!inputs!is!appended!to!this!report!as!Appendix!3.!
!The! benchmark! land! value! of! the! existing! property! has! been! demonstrated! to! be,! say,!£1,575,000! (as! per! Section! 6! of! this! report).! ! Having! completed! the! viability! appraisal!we!conclude!that!the!net!residual!is,!say,!F£150,000!(negative).!!!We!would! therefore! conclude! that! the! proposed! scheme! could! afford! to! provide! the! full!Bristol! City! Council! CIL! contributions.! In! addition,! the! scheme! can! afford! to! provide! eight!Shared!Ownership! Affordable! Housing! units,! representing! 7%! of! the! proposed! scheme! by!unit!number!(7%!by!Net!Saleable!Area).!!
!The! Council’s! policy! makes! clear! that! the! affordable! housing! contribution! is! subject! to!viability!testing,!and!this!report!has!been!compiled!in!compliance!with!this!policy,!National!Planning!Policy!Framework!and!RICS!Guidance.!!
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9( Appendices !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Appendix(1:(Schedule(of(Accommodation(–(118(Units( !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
REV DATER9 Issue - Viability Report 11.11.14
CLIENT
Fifth Capital London LtdPROJECT TITLE
Westmoreland House and Carriageworks
DRAWING TITLE
PROPOSED Area ScheduleDRAWING NO REVISION
A2493 700 R9
BLOCK AHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)
A1-1 1 3 63 678
A1-2 1 3 70 753
A1-3 1 2 47 506
A1-4 1 2 47 506
A1-5 1 3 70 753
A2-1 1 3 63 678
A2-2 1 3 70 753
A2-3 1 2 47 506
A2-4 1 2 47 506
A2-5 1 3 70 753
A3-1 1 3 63 678
A3-2 1 3 70 753
A3-3 1 2 47 506
A3-4 1 2 47 506
A3-5 1 3 70 753
A4-1 1 4 80 861
A4-2 1 3 75 807
A4-3 1 3 70 753
0 6 11 1 0 49 1,116 12,013
0% 33% 61% 6% 0%
BLOCK BHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)
B0-1 1 2 56 603
B0-2 1 2 50 538
B0-3 1 3 83 893
B0-4 1 2 49 527
B0-5 1 2 48 517
B0-6 1 2 48 517
B0-7 1 2 49 527
B0-8 1 3 85 915
B0-9 1 2 51 549
B0-10 1 2 50 538
B1-1 1 4 82 883
B1-2 1 2 50 538
B1-3 1 4 83 893
B1-4 1 2 50 538
B1-5 1 2 53 570
B1-6 1 2 53 570
B1-7 1 2 49 527
B1-8 1 2 48 517
B1-9 1 2 48 517
B1-10 1 2 49 527
B1-11 1 2 55 592
B1-12 1 2 55 592
B1-13 1 3 71 764
B1-14 1 4 78 840
B2-1 1 4 82 883
B2-2 1 2 50 538
B2-3 1 4 83 893
B2-4 1 2 50 538
B2-5 1 2 53 570
B2-6 1 2 53 570
B2-7 1 2 49 527
B2-8 1 2 48 517
B2-9 1 2 48 517
B2-10 1 2 49 527
B2-11 1 2 55 592
B2-12 1 2 55 592
B2-13 1 3 71 764
B2-14 1 4 78 840
B3-1 1 4 82 883
B3-2 1 2 50 538
B3-3 1 4 83 893
B3-4 1 2 50 538
B3-5 1 2 53 570
B3-6 1 2 53 570
B3-7 1 4 83 893
B3-8 1 3 68 732
B3-9 1 2 49 527
B3-10 1 2 55 592
B3-11 1 2 55 592
B3-12 1 3 71 764
B3-13 1 4 78 840
B4-1 1 3 63 678
B4-2 1 2 46 495
B4-3 1 3 77 893
B4-4 1 2 50 538
B4-5 1 2 53 570
B4-6 1 2 53 570
B4-7 1 4 83 893
B4-8 1 3 68 732
B4-9 1 2 49 527
B4-10 1 2 55 592
B4-11 1 2 55 592
B4-12 1 3 71 764
B4-13 1 4 78 840
B5-1 1 2 50 538
B5-2 1 2 52 560
B5-3 1 2 52 560
B5-4 1 4 86 926
B5-5 1 2 53 570
AREAS
18
UNITS MIX
UNITS
THIRD
SECOND
BLOCK B
MIX
AREAS
RESIDENTIAL
FOURTH
SECOND
FIRST
BLOCK A
FIFTH
FOURTH
THIRD
GROUND
FIRST
B5-6 1 3 67 721
B5-7 1 3 76 818
0 46 12 13 0 180 4,284 46,177
0% 65% 17% 18% 0%
BLOCK C - Carriageworks buildingHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)
C1-1 1 3 67 721
C1-2 1 3 66 710
C1-3 1 4 88 947
C2-1 1 3 66 710
C2-2 DUPLEX 1 3 75 807
C2-3 DUPLEX 1 3 69 743
C2-4 DUPLEX 1 3 85 915
C2-5 1 2 48 517
0 1 6 1 0 24 564 6,071
0% 13% 75% 13% 0%
BLOCK DHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)
D0-1 1 3 68 732
D0-2 1 2 47 506
D0-3 1 2 47 506
D0-4 1 3 68 732
D1-1 1 3 68 732
D1-2 1 2 47 506
D1-3 1 2 47 506
D1-4 1 3 68 732
D2-1 1 3 68 732
D2-2 1 2 47 506
D2-3 1 2 47 506
D2-4 1 3 68 732
0 6 6 0 0 30 690 7,427
0% 50% 50% 0% 0%
BLOCK EHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)
E0-1 1 4 102 1,098
E0-2 1 4 102 1,098
E0-3 1 4 102 1,098
E0-4 1 4 102 1,098
0 0 0 4 0 16 408 4,392
0% 0% 0% 100% 0%
BLOCK FHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)
F0-1 1 4 102 1,098
F0-2 1 4 102 1,098
F0-3 1 4 102 1,098
F0-4 1 4 102 1,098
F0-5 1 4 102 1,098
0 0 0 5 0 20 510 5,490
0% 0% 0% 100% 0%
UNITS HR
Units Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)
BLOCK A 18 0 6 11 1 0 49 1,116 12,013
BLOCK B 71 0 46 12 13 0 180 4,284 46,177
BLOCK C 8 0 1 6 1 0 24 564 6,071
BLOCK D 12 0 6 6 0 0 30 690 7,427
BLOCK E 4 0 0 0 4 0 16 408 4,392
BLOCK E 5 0 0 0 5 0 20 510 5,490
TOTAL 118 0 59 35 24 0 319 7,572 81,569
0% 50% 30% 20% 0%
GROUND
FIRST
SECOND
THIRD
FOURTH
FIFTH
TOTAL
RESIDENTIAL
NON-RESIDENTIAL
PLANT
1,592
2,297 24,725
RESI GEA (sq.m)
TOTAL AREAS
103,001
24,660
9,569
UNITS MIX
567
9,569
6,103
FIRST
GROUND
16,534
BLOCK D
BLOCK E
AREAS
8
1,536
AREAS
1,286
17,136
13,843
UNITS MIX
UNITS
AREASMIX
RESIDENTIAL AREAS BY FLOOR
UNITS AREAS
5
BLOCK F
GROUND, FIRST, SECOND, THIRD
GROUND, FIRST AND SECOND
BLOCK B
RESI GIA (sq.m) RESI GIA (sq.ft) RESI GEA (sq.ft)
12
71
MIX AREAS
4
RESIDENTIAL SUMMARY
FIFTH
FIRST
SECOND
BLOCK C
1,397
611
10,572
6,577
113,797
MIX
2,5552,291
2,555
18,277
27,502
27,502
18,902
15,037
1,698
1,756
103,001 10,572 113,797
AREA GIA (sq.m) AREA GIA (sq.ft) AREA GEA (sq.m) AREA GEA (sq.ft)
235 2,530
SECOND AND THIRD
659 7,093 721 7,761
213 2,293
Westmoreland,House,and,Carriageworks,,Bristol,BS1,–,Economic,Viability,Report,–,18,November,2014,FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF,
Copyright,Upside,London,Limited,2014.,,All,rights,reserved.,, 22,
Appendix(2:(Build(Cost(Model((dated(October(2014)(
Westmoreland House and CarriageworksBristol
Target Cost Model
October 2014
echarris.com
Order of Cost Estimate Nr. 2 - Option 2 Rev 3
Cover EC Harris Confidential Page 1
Church End, Brent
Scheme: Westmoreland House and Carriageworks
Employer: Fifth Capital London Ltd
Title: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3
Price Date: 4Q14
Version Control / Quality AssurancePrepared By Initialled Checked By InitialledKeith Snelling Richard Carson
Keith Snelling Richard Carson
DistributionStatus Issued to Issued (date)Final Upside London 28/10/2014
echarris.com
003
Revision002
Revision
003
An ARCADIS company. EC Harris LLP is a limited liability partnership registered in England (registered number OC368843). A list of members’ names and their professional qualifications may be inspected at our registered office, ECHQ, 34 York Way, London N1 9AB United Kingdom. Regulated by RICS.
Quality Assurance EC Harris Confidential Page 2
Scheme: Westmoreland House and CarriageworksEmployer: Fifth Capital London LtdTitle: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3Price Date: 4Q14
1
· A2493 1010[R7] · A2493 201 (R7) · A2493 300 (R7)
· A2493 101 [R7] · A2493 202 (R7) · A2493 301 (R7)
· A2493 102 [R7] · A2493 203 (R7) · A2493 302 (R7)
· A2493 103 [R7] · A2493 204 (R7) · A2493 303 (R7)
· A2493 104 [R7] · A2493 205 (R7) · A2493 304 (R7)
· A2493 105 [R7] · A2493 206 (R7) · A2493 305 (R7)
· A2493 106 [R7] · A2493 207 (R7) · A2493 306 (R7)
· A2493 107 [R7] · A2493 207 (R7) · A2493 307 (R7)
· A2493 108 [R7] · A2493 700 (R7)
· PROSPOSED Area Schedule (R7)
· 103460 Heath and Safety Report 2
· A2493 2-1-1 Bristol presentation P2 (reduced)
· A2493 Plan Working 140725
· Initial Structural Assessment 140328 reduced
· 0709759-11-MLRE-140820-Approach to Sustainbility
· APPEAL SCHEME_07_05764_LA_ASBESTOS_SURVEY_REPORT_OF_GRADE_II_AND_OLD_CARRIAGE_WORKS-140182
· APPEAL SCHEME_07_05764_LA_ASBESTOS_SURVEY_REPORT_OF_WASTMORELAND_HOUSE_-_APPENDICES_3-5-140180
· APPEAL SCHEME_07_05764_LA_ASBESTOS_SURVEY_REPORT_OF_WESTMORELAND_HOUSE_TO_APPENDIX_2-140195
· DID-103460-01 Geo-Envoronmental Report with Appendices
1
2
3
4
5
6
7
8
The following items have been excluded from this Order of Cost Estimate - Target Cost Model:-
1 Site acquisition costs, land ownership, right to buy, stamp duty, land transfer costs and planning appeal costs.
2 VAT.
3
4 Financing, legal, advertising, marketing costs, show units and marketing suites.
5
6
7
Construction Management fees associated with a JV.
JV Accounts audit and administration/supervisor fees.
The following (provided by Assael) has been used and referenced for this cost model. Information was received via email on 25th July 2014, 19th August 2014, 22nd August 2014 and the 22nd September 2014. Drawings and schedules have also been downloaded from the Share file on 18th August 2014 and 1st September 2014:
This Order of Cost Estimate - Target Cost Model is provided strictly in accordance with the EC Harris LLP Terms of Business, available from EC Harris LLP, 34 York Way, London, N1 9AB.We have provided a summary of costs for the following areas; commercial units, private residential units, affordable housing and external works. The GIFA and NIAs have been taken from the Assael Proposed Area Schedule R7. The external works areas have been measured by EC Harris LLP.
For this ‘Target Cost Model’ we have made the assumption that Block C (8 Nr units) will be designated affordable and all other units are private housing.
We have allowed for BREEAM domestic refurbishment rating ‘Very Good’, to the existing Carriageworks and CfSH Level 4 to both new build and refurbished residential. We have allowed for a fair finish shell and core fit out to the commercial units.All areas indicated above are subject to design development and could vary as a consequence of site surveys, Planning and Building Control requirements, depth of external façade zone, building tolerances, inaccuracies in scale when using printed plans, etc.
Exclusions
IntroductionSchedule of Information Used
Basis of Cost
Post-construction inflation, OHP and profit have been excluded. No allowance has been made for national housebuilder/developer pre-contract staff and overhead costs.
Costs associated with future Building Regulations revisions.
The costs are based on 4Q2014 prices and represent a fluctuating price however, excludes inflation during the pre contract period (i.e. 4Q14 fluctuating price) and excludes post construction inflation. The costs assume the works will be carried out in one single phase.
The costs assume the works will be procured direct by a national housebuilder/developer with all sub-contractors and sub-consultants being appointed through a competitive tender to gain the best possible price. They also assume the design will be completed in full before a works package is let.
The figures contained in this Order of Cost Estimate - Target Cost Model are for budgetary purposes only. Due diligence should be carried out by clients/agents on any development/land appraisal undertaken.
Introduction EC Harris Confidential Page 3
Scheme: Westmoreland House and CarriageworksEmployer: Fifth Capital London LtdTitle: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3Price Date: 4Q14
IntroductionSchedule of Information Used
8
9
10
11 Loose furniture and fittings.
12
13
14 Archaeological investigations and related costs (desk top surveys included).
15 Any works in relation to any protected flora or fauna, i.e. Great Crested Newts, Lizards, Local Wildlife (surveys included).
16 Artwork and sculptures.
17 Contaminated ground remediation, ground water removal, ground ventilation, obstructions in the ground and soft spots.
18
19 Bat survey investigations and related costs (survey included).
20 Rodent removal and removal of pigeon waste.
21 Flood risk / defence and environmental Impact assessments and related costs (surveys and assessments included).
22 Works beyond the boundary of the site.
23 Works associated with potential burial grounds.
24 Any costs associated with sunlight, daylight or rights of light issues including insurances (surveys included).
25
26
27
28
29
30
31 Works to adjacent /adjoining properties, e.g. underpinning, party wall works, etc and any party wall surveys/awards .
32
-
-
-
-
-
-
The following general assumptions have been made in order to produce this Order of Cost Estimate - Target Cost Model:-
1
2
3
4
5 Statutory authority survey and related costs have been included.
6 Transportation surveys / Traffic Impact Assessments and related costs have been included.
7 Topographical and Drainage CCTV surveys and related costs have been included.
8 Any costs associated with TPOs or pruning to existing trees on neighbouring land have been included.
9 Professional design fees, Planning fees (Building control fees & NHBC/Premier/LABC warranties) included.
10
-
-
-
-
No allowance has been made for the removal of tenants waste/furniture.
Costs associated with any treatment and removal of hydrocarbons and cyanide on the site.
Contingencies or associated costs to cover risks of insolvency/administration.
Exclusions Continued
No alteration to existing road junctions other than where provisional allowances have been made in the assumptions.
Maintenance of hard and soft landscaped areas beyond 12 months defects liability period.
Vibration suppression costs.
Professional consultant and other fees for Quantity Surveyor, Project Manager and Development Manager have been excluded as assummed these costs will be included within the developers model.
A Contingency & Design Reserve has been excluded and assumed this will be included within the project margins (excluded). Should this be required, 3% would typically be added to this estimate.
No allowance has been made for diversions of any fibre optic cables.
Sectional requirements e.g. 278, 106 (affordable housing excluded), stopping up orders, parking suspensions, etc, other than where provisional allowances have been made in the assumptions. Any Highways realignment, associated stopping up orders, and associated services diversions and disconnections have been excluded.
CIL payments, Commuted sums & contributions relating to S106 requirements.
External services and drainage infrastructure capacity at site boundary connections are sufficient for development. Provisional allowances have been made for installing one new sub-station.External Works have been included including hard and soft landscaping, trees, shrubs and street furniture.
NHBC - Range between 0.5% & 1.9% average taken @ 0.94%
Oversailing licenses and consents to surrounding areas have been included.
Designers - Range between 1.7% & 4.5% average taken @ 3.01%
Planning & Utilities Fees - Range between 0.1% & 1.5% average taken @ 1.00%
The following fees have been included:
Surveys & Legals - Range between 0.4% & 2.1% average taken @ 1.28%
Assumptions
Provisional Allowances have been made for demolition and site clearance.
Any on street parking/club car spaces or car charging points, car lifts or car stackers.
High likelihood of invasive plant species for example Japanese knot weed
Radon gas
High Bomb risk area
Possible petroleum storage tanks
Asbestos containing materials and dust
The following items have been identified as potential risk within the Geotechnical desktop study. The cost for removal of the items is excluded.
Fly tipping
Introduction EC Harris Confidential Page 4
Scheme: Westmoreland House and CarriageworksEmployer: Fifth Capital London LtdTitle: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3Price Date: 4Q14
IntroductionSchedule of Information Used
New Build Commercial
1
New Build Residential
2
3
4
Grade 2 Commercial Refurbishment
5
Grade 2 Residential refurbishment
6
Social Housing Units The following interior specification assumptions have been made:
PC SumsFlooring: Communal areas £25/m² (supply only)
Living room/hall £30/m² (supply only)Bathrooms/kitchens £35/m² (supply only)Bedrooms £25/m² (supply only)
Wall tiling: Bathroom and En-suites (full height to all walls) £20/m² (supply only)Kitchen (between worktops and wall units) £25/m² (supply only)Bathroom and En-suites mirror and vanity unit £200 per dwelling (supply only)Wardrobes £1,500 per dwelling (supply only)Sanitary fittings including accessories £1,500 per dwelling (supply only)Kitchen fittings including white goods £2,500 per dwelling (supply only)Painted flush s/c door sets Incl ironmongery £400/door set (supply only)MDF painted skirting'sEmulsion paint to walls and ceilings
Private Sale Units The following interior specification assumptions have been made:
PC SumsFlooring: Communal areas £25/m² (supply only)
Living room/hall £30/m² (supply only)Bathrooms/kitchens £35/m² (supply only)Bedrooms £25/m² (supply only)
Wall tiling: Bathroom and En-suites (full height to all walls) £20/m² (supply only)Kitchen (between worktops and wall units) £25/m² (supply only)Bathroom and En-suites mirror and vanity unit £200 per dwelling (supply only)Wardrobes £1,500 per dwelling (supply only)Sanitary fittings including accessories £2,500 per dwelling (supply only)Kitchen fittings including white goods £4,000 per dwelling (supply only)Painted flush s/c door sets Incl ironmongery £400/door set (supply only)MDF painted skirting'sEmulsion paint to walls and ceilings
Interior Specification Assumptions
Block C (assumed private) - structural steel reinforcing frame; double glazed aluminium windows iInsulated metal stud linings to internal face of external walls. Metal stud internal partitions; flush and glazed doors; gyproc linings and tiles to walls; carpet and tiles flooring; gyproc ceilings. Combined heating and power (CHP, ventilation, electric light and power. All subject to Local Authority Conservation Officer approval.
Block C - structural steel reinforcing frame; double glazed aluminium windows, shopfront and doors. Insulated metal stud linings to internal face of external walls painted white. Float finish to floor. Incoming connections for gas, water, 3 phase electricity and BT. Emergency lighting and fire alarms. All subject to local authority conservation officer approval.
Construction Specification Assumptions
Blocks A,B,D,E and F built to Code for Sustainable Homes Level 4. RC slab, reinforced concrete upper floors, lift shaft and frame (or loadbearing masonry/timber frame - refer to Summary of Costs). Roof with Sarnafil cladding and insulation with fall arrest system. Metal stud partitions; flush and glazed doors; gyproc linings and tiles to walls; carpet and tiles flooring; gyproc ceilings. Combined heating and power (CHP), ventilation, electric light and power, photovoltaic and solar panels. Lift. Emergency and external ighting, fire alarms, door entry, CCTV, lightning protection, data cabling, BMS.
Blocks A and B shell and core only. Facing brick/block walls. Double glazed aluminium windows, shopfront and doors. Metal stud linings to internal face of external walls painted white. Float finish to floor. Incoming connections for gas, water, 3 phase electricity and BT. Emergency lighting and fire alarms.
Green roof construction to Block A,B and D including; substrate and planting of moss, grasses, small alpine type plants with a saturated weight between 50-150kg/m2 included with Sustainability allowance.
The façade treatment comprises PPC aluminium windows (£600/m2), with an assumed 60:40 solid: glass ratio. For solid treatments we have assumed target rates of £300/m2 for 50% of the solid area (whole wall construction) and £450/m2 for the remaining 50% solid area (whole wall construction).
Introduction EC Harris Confidential Page 5
Scheme: Westmoreland House and Carriageworks
Employer: Fifth Capital London Ltd
Title: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3
Price Date: 4Q14
Element Quantity Unit Total
Demolition of Westmorland house (incl breaking up hardstandings) Provisional Allowance 300,000£
Asbestos removal Excluded
De-contamination of site Provisional Allowance 100,000£
Commercial Units (Ground floor, Shell and Core) - Gross Areas
Blocks A & B New Build - RC Frame 338 m2 £1,000 / m2 338,000£
Block C Refurbishment (Carriageworks) 321 m2 £1,100 / m2 353,100£
Extra over above for Fit-Out 659 m2 £300 / m2 197,700£
Residential (Net Areas)
Block A New Build - RC Frame Private 18nr 1,116 m2 £1,425 / m2 1,590,300£
Affordable 0nr 0 m2 £1,425 / m2 -£
Block B New Build - RC Frame Private 71nr 4,286 m2 £1,425 / m2 6,107,550£
Affordable 0nr 0 m2 £1,425 / m2 -£ Block C New Build 3rd Floor - Timber Frame Private 0nr 0 m2 £1,400 / m2 -£
Affordable 2nr 133 m2 £1,400 / m2 186,200£
Block C Refurbishment Private 0nr 0 m2 £1,400 / m2 -£
Affordable 6nr 431 m2 £1,365 / m2 588,400£ Block D New Build - Load Bearing Masonry Private 12nr 690 m2 £1,325 / m2 914,250£
Affordable 0nr 0 m2 £1,325 / m2 -£ Block E New Build - Load Bearing Masonry Private 4nr 408 m2 £1,325 / m2 540,600£
Affordable 0nr 0 m2 £1,325 / m2 -£ Block F New Build - Load Bearing Masonry Private 5nr 510 m2 £1,325 / m2 675,750£
Affordable 0nr 0 m2 £1,325 / m2 -£
Net to Gross Adjustment 1,978 m2 £1,300 / m2 2,571,400£
Extra over for enhanced Private residential specification 0 nr £2,500 / nr -£
Plant / Energy Centre Shell & Core & Fit-Out (Gross Areas) - Blocks A & D 216 m2 £1,375 / m2 297,000£
Ancillary Areas - Bikes & Bins 321 m2 £1,425 / m2 457,430£
External Works
Hard Landscaping 1 item 308,000£
Soft Landscaping 1 item 13,000£
Site Furniture 1 item 72,000£
Summary of Costs
Rate
£308,000
£13,000
£72,000
Summary of Costs EC Harris Confidential Page 6
Scheme: Westmoreland House and Carriageworks
Employer: Fifth Capital London Ltd
Title: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3
Price Date: 4Q14
Element Quantity Unit Total
Summary of Costs
Rate
External Drainage 1 item 247,000£
External Services Connections - Residential 1 item 236,000£
External Services Connections - Commercial Provisional Allowance 100,000£
Sub-Station Provisional Allowance 100,000£
Services Disconnections / Diversions Provisional Allowance 100,000£
Sustainability allowance 1 item 500,000£
Works Sub-Total 16,893,680£
Contingency & Design Reserve 5 % 844,680£
Total 4Q14 fluctuating price 118nr 10,427 m2 17,738,360£
Cost/m2 (on GIFA and commercial units) 1,700£
Cost/sqft 158£
Total Cost Per Unit 150,000£
Element Total
Planning & Utilities Fees - Range between 0.1% & 1.5% average taken 1.00% 177,000£
Surveys & Legals - Range between 0.4% & 2.1% average taken 1.28% 226,000£
Designers - Range between 1.7% & 4.5% average taken 3.01% 534,000£
NHBC - Range between 0.5% & 1.9% average taken 0.94% 166,000£
Quantity Surveyor Excluded
Project Manager Excluded
Development Manager Excluded
6.22% 1,103,000£ Total Project Cost 3Q14 fluctuating price 18,841,360£ Cost/m2 (GIFA) 1,807£ Cost/ft2 168£ Total Cost Per Unit 160,000£ Notes: - The above costs are exclusive of Post Construction Inflation, OHP/Profit Margins, Construction Management Fee and JV Costs and JV Supervisor/Administration Costs
Professional Consultant and Other Fees
Percentage
£500,000
£247,000
£236,000
£16,893,680
Summary of Costs EC Harris Confidential Page 7
Scheme: Westmoreland House and Carriageworks
Employer: Fifth Capital London Ltd
Title: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3
Price Date: 4Q14
Report Dashboard
£0
£20
£40
£60
£80
£100
£120
£140
£160
£180
£200
£220
£240
£260
£280
£300
£-
£200.00
£400.00
£600.00
£800.00
£1,000.00
£1,200.00
£1,400.00
£1,600.00
£1,800.00
£2,000.00
£2,200.00
£2,400.00
£2,600.00
£2,800.00
£3,000.00
£3,200.00
£ per sqft £ per sqm
Benchmark Cost - 4Q 2014 South West Location
2%
5%
70%
2%
6%
3% 2%
6% 4%
Elemental Cost %
Enabling Works
Commercial
Residential
Plant
External Works
Sustainability
Ancilliary Areas (Bikes &Bins)
Professional & OtherFees
£400,000 £888,800
£13,174,450
£297,000 £1,176,000
£500,000
£457,430
£1,103,000
£844,680
Elemental Cost £
Enabling Works
Commercial
Residential
Plant
External Works
Sustainability
Ancilliary Areas (Bikes &Bins)
Professional & OtherFees
Dashboard EC Harris Confidential Page 8
Scheme: Westmoreland House and Carriageworks
Employer: Fifth Capital London Ltd
Title: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3
Price Date: 4Q14
Element Quantity Unit Rate Total
LandscapingHard LandscapingVehicular and pedestrian access road and parking areas 1,211 m2 £220.00 266,000£ Public through route and emergency vehicular access 206 m2 £100.00 21,000£ Hard landscaping to unit entrance and patio 257 m2 £80.00 21,000£
308,000£ Soft Landscaping
Turfed areas; 525 m2 £10.00 5,000£
Trees semi mature 9 nr £500.00 5,000£
Allowance for hedge planting 100 m £25.00 3,000£
13,000£ Site Furniture
Single glazed atrium; rear of Carriageworks 77 m2 £390.00 30,000£
Allowance for benches/site furniture 1 item £12,000.00 12,000£ Bicycle racks nr £85.00 Included
Pair of gates and posts to match
1.8m x 2.2m 4 nr £1,500.00 6,000£
3.5m x 2.5m 4 nr £5,000.00 20,000£
Single gate and posts to match
1.5m x 2m 5 nr £750.00 4,000£
72,000£ External Drainage
Drainage - Foul
Building 10,427 m2 £15.00 156,000£
Surface 2,274 m2 £15.00 34,000£
Drainage - Surface
Surface 2,274 m2 £25.00 57,000£
247,000£
External Services Connections - Residential 118 nr £2,000.00 236,000£
External Services Connections - Commercial Provisional Allowance 100,000£
Extra; Sub-Station (Fit-Out) Provisional Allowance 100,000£
Services Disconnections / Diversions Provisional Allowance 100,000£
Total (Carried to Summary) 1,176,000£
External Works, Drainage & External Services
External Works EC Harris Confidential Page 9
Scheme: Westmoreland House and CarriageworksEmployer: Fifth Capital London LtdTitle: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3Price Date: 4Q14
BUILDING AHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)FIRST A1-1 Private 1 3 63 678
A1-2 Private 1 3 70 753 A1-3 Private 1 2 47 506 A1-4 Private 1 2 47 506 A1-5 Private 1 3 70 753
SECOND A2-1 Private 1 3 63 678 A2-2 Private 1 3 70 753 A2-3 Private 1 2 47 506 A2-4 Private 1 2 47 506 A2-5 Private 1 3 70 753
THIRD A3-1 Private 1 3 63 678 A3-2 Private 1 3 70 753 A3-3 Private 1 2 47 506 A3-4 Private 1 2 47 506 A3-5 Private 1 3 70 753
FOURTH A4-1 Private 1 4 80 861 A4-2 Private 1 3 75 807 A4-3 Private 1 3 70 753
- 6 11 1 - 49 1,116 12,013 0% 33% 61% 6% 0%
BUILDING BHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)GROUND B0-1 Private 1 2 58 624
B0-2 Private 1 2 50 538 B0-3 Private 1 3 83 893 B0-4 Private 1 2 49 527 B0-5 Private 1 2 48 517 B0-6 Private 1 2 48 517 B0-7 Private 1 2 49 527 B0-8 Private 1 3 85 915 B0-9 Private 1 2 51 549 B0-10 Private 1 2 50 538
FIRST B1-1 Private 1 4 82 883 B1-2 Private 1 2 50 538 B1-3 Private 1 4 83 893 B1-4 Private 1 2 50 538 B1-5 Private 1 2 53 570 B1-6 Private 1 2 53 570 B1-7 Private 1 2 49 527 B1-8 Private 1 2 48 517 B1-9 Private 1 2 48 517 B1-10 Private 1 2 49 527 B1-11 Private 1 2 55 592 B1-12 Private 1 2 55 592 B1-13 Private 1 3 71 764 B1-14 Private 1 4 78 840
SECOND B2-1 Private 1 4 82 883 B2-2 Private 1 2 50 538 B2-3 Private 1 4 83 893 B2-4 Private 1 2 50 538 B2-5 Private 1 2 53 570 B2-6 Private 1 2 53 570 B2-7 Private 1 2 49 527 B2-8 Private 1 2 48 517 B2-9 Private 1 2 48 517 B2-10 Private 1 2 49 527 B2-11 Private 1 2 55 592 B2-12 Private 1 2 55 592 B2-13 Private 1 3 71 764 B2-14 Private 1 4 78 840
THIRD B3-1 Private 1 4 82 883 B3-2 Private 1 2 50 538 B3-3 Private 1 4 83 893 B3-4 Private 1 2 50 538 B3-5 Private 1 2 53 570 B3-6 Private 1 2 53 570 B3-7 Private 1 4 83 893 B3-8 Private 1 3 68 732 B3-9 Private 1 2 49 527 B3-10 Private 1 2 55 592
MIX AREAS
BLOCK A
18
UNITS
UNITS MIX AREAS
BLOCK B
Affordable/ Private
Affordable/ Private
Accommodation Schedule
Accommodation Schedule EC Harris Confidential Page 10
Scheme: Westmoreland House and CarriageworksEmployer: Fifth Capital London LtdTitle: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3Price Date: 4Q14
Accommodation Schedule
BUILDING BB3-11 Private 1 2 55 592 B3-12 Private 1 3 71 764 B3-13 Private 1 4 78 840 B3-14 Private -
Fourth B4-1 Private 1 3 63 678 B4-2 Private 1 2 46 495 B4-3 Private 1 3 77 829 B4-4 Private 1 2 50 538 B4-5 Private 1 2 53 570 B4-6 Private 1 2 53 570 B4-7 Private 1 4 83 893 B4-8 Private 1 3 68 732 B4-9 Private 1 2 49 527 B4-10 Private 1 2 55 592 B4-11 Private 1 2 55 592 B4-12 Private 1 3 71 764 B4-13 Private 1 4 78 840 B4-14 Private -
FIFTH B5-1 Private 1 2 50 538 B5-2 Private 1 2 52 560 B5-3 Private 1 2 52 560 B5-4 Private 1 4 86 926 B5-5 Private 1 2 53 570 B5-6 Private 1 3 67 721 B5-7 Private 1 3 76 818
0 46 12 13 0 180 4286 46,135 0% 65% 17% 18% 0%
BUILDING C - Carrige works HR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)FIRST C1-1 Affordable 1 3 67 721
C1-2 Affordable 1 3 66 710 C1-3 Affordable 1 4 88 947 C1-4 Affordable -
SECOND C2-1 Affordable 1 3 66 710 & C2-2 DUPLEX Affordable 1 3 75 807 THIRD C2-3 DUPLEXAffordable 1 3 69 743
C2-4 DUPLEXAffordable 1 3 85 915 C2-5 DUPLEXAffordable 1 2 48 517
0 1 6 1 0 24 564 6,071 0% 13% 75% 13% 0%
BUILDING DHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)GROUND D0-1 Private 1 3 68 732
D0-2 Private 1 2 47 506 D0-3 Private 1 2 47 506 D0-4 Private 1 3 68 732
FIRST D1-1 Private 1 3 68 732 D1-2 Private 1 2 47 506 D1-3 Private 1 2 47 506 D1-4 Private 1 3 68 732
SECOND D2-1 Private 1 3 68 732 D2-2 Private 1 2 47 506 D2-3 Private 1 2 47 506 D2-4 Private 1 3 68 732
0 6 6 0 0 30 690 7,427 0% 50% 50% 0% 0%
BUILDING EHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)E0-1 Private 1 4 102 1,098 E0-2 Private 1 4 102 1,098 E0-3 Private 1 4 102 1,098 E0-4 Private 1 4 102 1,098
0 0 0 4 0 16 408 4,392 0% 0% 0% 100% 0%
AREAS
8
BLOCK B
Affordable/ Private
Affordable/ Private
4
GROUND, FIRST,
SECOND, THIRD
Affordable/ Private
AREAS
BLOCK E
UNITS MIX
12
UNITS MIX
AREAS
BLOCK D
71
BLOCK C
UNITS MIX
Accommodation Schedule EC Harris Confidential Page 11
Scheme: Westmoreland House and CarriageworksEmployer: Fifth Capital London LtdTitle: Order of Cost Estimate Nr. 2 - Target Cost Model - Option 2 Rev 3Price Date: 4Q14
Accommodation Schedule
BUILDING FHR
Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)F0-1 Private 1 4 102 1,098 F0-2 Private 1 4 102 1,098 F0-3 Private 1 4 102 1,098 F0-4 Private 1 4 102 1,098 F0-5 Private 1 4 102 1,098
0 0 0 5 0 20 510 5,490 0% 0% 0% 100% 0%
RESIDENTIAL SUMMARYHR
Units Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq. ft)BUILDING A 18 - 6 11 1 - 49 1,116 12,013 BUILDING B 71 - 46 12 13 - 180 4,286 46,135 BUILDING C 8 - 1 6 1 - 24 564 6,071 BUILDING D 12 - 6 6 - - 30 690 7,427 BUILDING E 4 - - 4 - 16 408 4,392 BUILDING F 5 - - 5 - 20 510 5,490 TOTAL 118 - 59 35 24 - 319 7,574 81,527
0% 50% 30% 20% 0%
OPTION A SUMMARY
NON RESI GIA (sq.m)
NON RESI GIA (sq.ft)
RESI GIA (sq.m)
RESI GIA (sq.ft)
BASEMENT - - GROUND 659 7,093 1,539 16,566 FIRST - - 2,291 24,660 SECOND - - 2,297 24,725 THIRD - - 1,572 16,921 FOURTH - - 1,286 13,843 FIFTH - - 567 6,103 TOTAL 659 7,093 9,552 102,818
10,211
ANCILLARY AREASUNITSType GIA sqm GIA sqft
PLANT 216 2,325 BINS, BIKES 321 3,455 TOTAL 537 5,780
RESI NIA (sq.m)
RESI GIA (sq.m)
BASEMENTGROUND 1,719 1,539 FIRST 1,572 2,291 SECOND 1,446 2,297 THIRD 1,260 1,572 FOURTH 1,026 1,286 FIFTH 436 567 TOTAL 7,459 9,552
AREA
MIX AREAS
UNITS MIX AREAS
BLOCK FGROUND,
FIRST, SECOND
5
Affordable/ Private
Accommodation Schedule EC Harris Confidential Page 12
Back EC Harris Confidential Page 13
Westmoreland!House!and!Carriageworks,!Bristol!BS1!–!Economic!Viability!Report!–!18!November!2014!FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF!
Copyright!Upside!London!Limited!2014.!!All!rights!reserved.!! 23!
Appendix(3:(Argus(Developer(–(Appraisal(Summary( !!!!!! !
Marc Pennick Fifth Capital London Confidential Economic Viability Appraisal
Westmoreland House / Carriageworks Bristol BS1
Development Appraisal Upside London Limited
18 November 2014
APPRAISAL SUMMARY UPSIDE LONDON LIMITED Marc Pennick Fifth Capital London
Summary Appraisal for Phase 1
Currency in £
REVENUE Sales Valuation Units ft² Rate ft² Unit Price Gross Sales
Resi Private Sales 110 75,810 360.04 248,136 27,295,000 Resi Shared Ownership 8 6,060 169.28 128,227 1,025,820 Totals 118 81,870 28,320,820
Rental Area Summary Initial Net Rent Initial Units ft² Rate ft² MRV/Unit at Sale MRV
Private Ground Rents 101 300 30,300 30,300 Commercial Units 1 7,470 10.00 74,700 74,700 74,700 Totals 102 7,470 105,000 105,000
Investment Valuation Private Ground Rents Market Rent 30,300 YP @ 6.0000% 16.6667
PV 0yrs 3mths @ 6.0000% 0.9855 497,697 Commercial Units Market Rent 74,700 YP @ 8.0000% 12.5000 (0yrs 6mths Rent Free) PV 0yrs 6mths @ 8.0000% 0.9623 898,501
1,396,198
GROSS DEVELOPMENT VALUE 29,717,018
NET REALISATION 29,717,018
OUTLAY
ACQUISITION COSTS Residualised Price 1,426,820
1,426,820 Stamp Duty 4.00% 57,073 Agent Fee 1.20% 17,122 Legal Fee 0.60% 8,561
82,756 CONSTRUCTION COSTS Construction ft² Rate ft² Cost
Commercial Units 9,404 ft² 158.05 pf² 1,486,297 Resi Private Sales 95,219 ft² 158.05 pf² 15,049,077 Resi Shared Ownership 7,612 ft² 158.04 pf² 1,202,986 Totals 112,235 ft² 17,738,360 17,738,360
Resi CIL 441,400 Retail CIL 79,080 S106 and s278 payment 118,000
638,480
PROFESSIONAL FEES Professional Fees 10.00% 1,773,836
1,773,836 MARKETING & LETTING
Commercial Marketing 15,000 Residential Marketing 409,425 Letting Agent Fee 10.00% 10,500 Letting Legal Fee 5.00% 3,735
438,660 DISPOSAL FEES
Sales Agent Fee 1.00% 297,170 Sales Legal Fee 0.50% 148,585
APPRAISAL SUMMARY UPSIDE LONDON LIMITED Marc Pennick Fifth Capital London
445,755 FINANCE
Debit Rate 7.000%, Credit Rate 0.000% (Nominal) Land 274,842 Construction 1,120,302 Other 26,964 Total Finance Cost 1,422,108
TOTAL COSTS 23,966,775
PROFIT 5,750,243
Performance Measures Profit on Cost% 23.99% Profit on GDV% 19.35% Profit on NDV% 19.35% Development Yield% (on Rent) 0.44% Equivalent Yield% (Nominal) 7.30% Equivalent Yield% (True) 7.64%
IRR 29.36%
Rent Cover 54 yrs 9 mths Profit Erosion (finance rate 7.000%) 3 yrs 1 mth
Westmoreland!House!and!Carriageworks,!Bristol!BS1!–!Economic!Viability!Report!–!18!November!2014!FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF!
Copyright!Upside!London!Limited!2014.!!All!rights!reserved.!! 24!
((((((((((((((((((((((((((((((((((((((
(((!!
Richard(Ashdown(Director!Upside!London!Limited!26!Monck!Street!London!!SW1P!2AP!Richard.Ashdown@upsidelondon.com!!
Andrew(Esam(Senior!Surveyor!Upside!London!Limited!26!Monck!Street!London!!SW1P!2AP!Andrew.Esam@upsidelondon.com!!