03 DevelopmentServices As part of the development process we test the appropriateness of the proposed commercial uses to accompany the residential uses ie. a traditional hotel operation versus a serviced apartment scheme, as well as the types of retail/ leisure uses that should accompany such a development. We would look to identify the likely demand, and from which class of operators they originate. Development Consultancy Process The first step when assessing a site and beginning the consultancy service is to produce a comprehensive consultancy report, covering: Site review Market review The next element is the analysis of the national and regional market conditions and recent local market transactions (although potentially limited in number). This stage is crucial in establishing the current demand profile for new build schemes, focusing on pricing thresholds and understanding market performance and competition coming through the pipeline going forward. With the combination of our international research team and our local partners’ knowledge of key schemes and transactional evidence, we are able to bring a truly global approach to our market review, thereby reducing risk and adding value. Target market analysis Once we have established the range of values that are achievable and the pricing dynamics in the area, we are able to analyse the socio-economic profile of the target purchasers for the scheme, including: YY International purchaser profile YY It is important to establish from the outset where external investment is coming from and what type and specification of product these purchasers desire YY The specific pricing thresholds of residential sales for particular nationalities identified YY Preferred sizes, specification and amenities associated with the residential element of the scheme Conducting a detailed review of the surrounding area, including a comprehensive review of the locality and adjacent land uses. This will also include research into the style, standards, sizes and specifications of the existing and forecast residential stock. We are able to bring a truly global approach to our market review, thereby reducing risk and adding value. 10. SavillsInternationalDevelopmentServices
Development strategy YY Timescale: 2 – 3 weeks Using the results of the analysis, we work closely with masterplanners and architects. This provides a set of clear guidelines for the optimal unit sizing, mix, specification and pricing of the residential element of the scheme, in turn informing the product development. Financial viability analysis Finally, but crucially, we prepare an expert appraisal (either indicative or RICS Red Book valuation) of the value of the project and the site, in accordance with the recommendations given in our report. This will generate a Gross Development Value – being the aggregate of the sales and capitalised income/sales of the commercial elements of the scheme, as well as a residual valuation to determine the land value of the site assuming the ‘recommended’ scheme. On the basis of the consultancy report, it is important to work daily with all of the retained project team to produce a development strategy including programme timing, recommendations for additional expert advice and analysis of the likely funding requirements. On behalf of the client we would prepare the design brief for the architects, recommend the most suitable project team members (architects, engineers, quantity surveyors) and manage the tender process. We work closely with appointed quantity surveyors, architects, engineers and construction managers in order to make this a fully accurate reflection of the development opportunity.