The Site Suitability for a Tall Building and a High-Quality Design - Speech or Presentation Example

RОJЕСT АNАLYSIS АND АРРRАISАL Name Class Instructor Institution City State Date Table of Contents Introduction 3 Development value 4 Differences and similarity 7 Yield from buildings 8 Development cost 9 Development cost 11 Conclusion 14 Reference 15 Introduction The site currently used for parking by nearby business is available for potential development. It is located in an important location at the edge of the city center. The site will be suitable for a tall building and a high-quality design. It is located at the edge of the city center in which is it is has a good public access by public transport. The site is also suitable as it is adjacent to proposed new bus station located at the corner of the Church Street. The project will be suitable for constructing an office building. As a principal adviser, the followings are recommendation and development proposal Development value To come into conclusion some of the buildings considerations to consider are: 203 Ribbleton Lane, Ribbleton This is property is located in Ribbleton Lane, 1 mile from the Preston. It has a ground floor and is a location suitable for retail section.The property has a 2 story building and made of traditional bricks with an extensive window.The Upper floor has a separate door to enable easy access. The property has a parking lot suitable in the front that can have more 10 vehicles. The property has an advantage as an enclosed yard at the back.The property is rented at 5250 pounds per annum 40.6 sq. meters. The selling price is 80,000 pounds (Eckersley Property, 2015). (Eckersley Property, 2015). 127 Station Road, Bamber Bridge, Preston The property is located at station road in the middle of the Bamber Bridge. It is located in front of St.Mary’s high school and a good location for the office building. The property is a two-story building with flat extension in the back. It has an extensive timber shop, uPVC double window, and rear security shutter. The property selling price is £160,000 and the annual rental of £12,500 per 135 m² (Eckersley Property, 2015). (Eckersley Property, (2015). Fishergate Court, Fishergate Hill, Preston The property is located in Fishergate hill, next to Preston railway station; the building has well-developed offices in the three floors. The premise has toilets in each floor and kitchenfacilities. The property has a heating system and a decorated standard. The property has an ability to park 6 vehicles. The property has also the rear undercroft in the back which can be accessed at the back together with the rear parking. The cash sale is £ 185,000 and rent is £18,250 per annum, the area is 164.2 m² (Eckersley Property, (2015). (Eckersley Property, (2015). Differences and similarity The properties are similarsome perspectives as they are located in Preston. . They have a rangeof 2- 3 stories and all located near the town center. The differences are in which Fishergate Court, Fishergate Hill, Preston cost cash sale is £ 185,000 and rent is £18,250 per annum, 127 Station Road, Bamber Bridge, Preston cost selling price is £160,000 and annual rental of £12,500 and 203 Ribbleton Lane, Ribbleton has accost of The property is rented at 5250 pounds per annum and selling price is 80,000 ponds. The size is also is different and the development is also different. Yield from buildings Rental yield is income that the company generates by dividing by the cost of the property. From Homebuilding.co.uk, (2015) they explain that there is increasing demand of offices property that can be either be converted to office or have an officesetup. In any investment, the yield from the property is very essential to be able to articulate the future. The commercial property basically has a higher yield in comparison to the residential houses, this has led to many of the houses located in the town or in the suburb be converted to commercial properties. This is evidenced by business confidence and high rates in the buildings, Commercial premises yields more as they are susceptible to market conditions such as economic and political and can never go out of business and fashion. With high demand has led to increasing in acquisition cost, however regardless of many investors investing in the area the market in the Preston is not yet saturated (Prestonguildcity.co.uk, 2014). Yield = annual rental / property value x 100. Year purchase of property = yield -1 GDV = market rent x YP yield Fishergate Court, Fishergate Hill, Preston =18,250/ 185,000 *100 =9.9 % YP = 100/9.9 = 10.10 127 Station Road, Bamber Bridge, Preston = 12,500 / 160,000 *100 = 7.1 % YP = 100/7.1 = 14.08 203 Ribbleton Lane, Ribbleton =5250 /80,000 * 100 =6.5 % YP= 100/6.5 = 15.38 Development cost URBanise is a developer company that aims at investing in a project that is located in Preston City Square. The site in which the company proposes is currently used as a parking place for the business being located at the edge of the city it has a lot of potential of developing. This is because the area is accessible by the good public network as it near to a bus station and a railway station (lancashire.gov.uk, 2016). The property can be used for various developments but the most viable would be to be used as an office building regardless it can be used for retail commercial or residential purposes. The property will have three stories and will have a retail property on the ground and the office on the other two floors. According to Hayward, (2008) rent value of the property is estimated by averaging the market values of the rent. The project yields are achieved by deducting the cost of sale and in this case, it assumed that the property will be sold after letting all the units Purchasers cost is this case applies to all the cost that are associated in procuring the property e.g. land stamp duty and selling price. The property looks as shown below: Average annual rent = 18,250 + 12,500 +5250 = 36000 / 3 = £ 12000 Average area of the building = 40.6+135+164 = 339.6 Average rent =353 pounds per m2 Property area is 852.92 m² and with 15 % construction area Area of building = 15/100 x 852.92 m² = 127 m² = 852.92 m² – 127 m² = 725.92 m² Value of rent = 725.92 m² x £353 = £ 256508.83 Annual perpetuity = 6% = 16.667 Gross development value = £ 256508.83 x 16.667 = £4276002.26 Thechelsea.co.uk, (2014) assumes cost of sale deduction assumption of 5%: Net sales income = 95% * 4276002.26 = £ 4062202.15 Development cost Building Cost In the construction of any project building cost is determined by the construction route that the company uses (Legislation, 2014).. These include the company involvement in the project; these include the use of contractor and subcontractors. The quality of the building also determine the cost in average the in standard buildings, cost £450/m² laid), - Building Reg Fees According to the home building and renovation in the UK in construction, the regulation fees ranges from £500-1,500 (Preston.gov.uk, 2014). Warranty The warranty of the project should be in average 1% of the total cost -External work It is determined by the quality of the work and basically, it contains the construction cost estimates. From the book, the external work is 15% of the building cost. - Professional Fees It is the total propertycosts of the proposal in relation how the proposal is, and size of the proposal professional fees are 12%. - Ancillary Cost They are dependent on size and location of the proposal the Ancillary Cost of the project will be 2.5 % of project cost (Lopez, 2015) - Site Investigation It’s a fee for investigation and land survey and it assist in avoiding project risks. Its typically ranges from 350-1000 pounds (Wilkinson et al., 2008) - Planning Fees These are paid on the local authority depending on the nature and scale of the project. The UK theplanning application fees are 335 pounds (Jones-Lee, 2015). - Marketing Fees The company has invested £255,000 in marketing the proposal(Jones, 2015) - Finance The finance cost ranges from 7-9 % which is dependent on the credit terms in which the company engages in (Wilkinson et al., 2008). - Demolition Cost In demolition of buildings in the UK, it averages it ranges from 5200 to 10,000 pounds - Site Clearance This project depending on the location it has no site clearance fees (Hayward, 2008). - Letting Agent’s Fees It is kept up in the letting in the completed headway and it will take a measure of money for the administrators named. It is an estimation rate of the estimation of rent which is used as a piece of gross change regard. There are costs for administrators' organization that is normal as 7% (Scarrett, 2008). Legal fees The average legal fees in the construction company range from 500-1000 pounds (Southampton, 2014). Conclusion In this proposal project of the property is a successful in Preston this is because there are many advantages and potential from the investments. Today's economy many companies are looking for new offices and areas with good packing space away from the crowded cities hence, this would be a marketable place Reference Eckersley Property, (2015). Property Search - Eckersley Property. [online] Available at: http://www.eckersleyproperty.co.uk/property-search/?location=0&type=8&tenure=0&viewpage=1 [Accessed 12 Jan. 2016]. Homebuilding.co.uk, (2015). Guide to Demolition | Homebuilding & Renovating. [online] Available at: http://www.homebuilding.co.uk/advice/beginners/plots/demolition [Accessed 12 Jan. 2016] Moir. K, (2009). Cost and Process Guidance. [online] Available at: http://www.kmeconsultancy.co.uk/doc/Appendix%201%20Cost%20and%20Guidance.pdf [Accessed 12 Jan. 2016]. Baum, A., Mackmin, D. and Nunnington, N. (2006). The income approaches to property valuation. 5th ed. London: EG Books. Scarrett, D. (2008). Property valuation. London: Routledge. Wilkinson, S., Reed, R. and Cadman, D. (2008). Property development. London: Routledge. Hayward, R. (2008). Valuation. London: Estates Gazette. AECOM, (2014). Spon's Architects' and Builders' Price Book 2015. Hoboken: Taylor and Francis Jones-Lee, M., 2015. 5. Dealing with safety in the UK public sector project appraisal. Benefit-Cost Analyses for Security Policies: Does Increased Safety Have to Reduce Efficiency?, p.117. Lopez, R., Chong, H.Y., Wang, X. and Graham, J., 2015. Technical Review: Analysis and Appraisal of Four-Dimensional Building Information Modeling Usability in Construction and Engineering Projects. Journal of Construction Engineering and Management, p.06015005. 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[online] Available at: http://www3.lancashire.gov.uk/corporate/web/?siteid=6120&pageid=35455&e=e [Accessed 12 January 2016]. home building and renovation(2015) http://www.homebuilding.co.uk/2013/11/21/build-cost-information [Accessed 12 January 2016]. Read More