methods to enhance site viability 16.02.12. some examples.. joint venture approaches/risk sharing...
TRANSCRIPT
Methods to enhance site viabilityMethods to enhance site viability
16.02.1216.02.12
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
BREAK
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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