//11
Residual Evaluation Assumptions
1 bedroom flat sq m = 50 sq m 2 bedroom flat sq m = 75 sq m 3 bedroom flat sq m = 100 sq m
A: Gross Value of Development (GDV) 4.5 ha site with planning permission in principle for 490 flats priced accordingly 90 x 1 bedroom flats @ £395,000 each = £35.55 million 200 x 2 bedroom flats @ £480,000 = £96 million 200 x 3 bedroom flats @ £640,000 = £128 million Total cost of flats = £259.55 million Less 4% selling costs (agents + legal fees) = £1,038,200 Net Proceeds of sale = £258,511,800
B: Costs of Development
a) Site preparation = £112,500 b)Building costs 1 bed flats (gross area 50 sq m x 90 @ £2,400 / sq m) = £10.8 million 2 bed flats (gross area 75 sq m x 200 @ £2,400 / sq m) = £36 million 3 bed flats (gross area 100 sq m x 200 @ £2,400 / sq m) = £48 million Total building cost = £94.8 million c) Internal roads and pavements = £2,475,000 d) Landscaping £1,350,000 e) Architects / QS / Engineer fees 12% of 98,737,500 = £11,848,500 f) Finance cost = £1,134,252 Total development costs = £12,982,752 A: GDV = £258,511,800 B: Costs of Development = £12,982,752 C: Developer Profit @ 20% of net GDV = £51,702,360 Total cost and profit (B + C) = £64,685,112 D: Residual Amount for Land Completed value of the project - All costs including profit = price to be paid for the land = £193,826,688 - 3% agents and legal costs Price for Land = £5,814,800
37
