The ‘property polaroid’ is typically the first step we take, with our clients and partners, on a new development prospect. A quick snapshot to inform the very first decision which is always…
“is this opportunity worth spending time on?”
Reviewing new opportunities is a time-consuming process that often goes nowhere, so getting to that “this one’s not for me!” decision early, can pay dividends and free up your valuable time for more productive things.
A developer approached us asking for a feasibility plan for a town centre site, a former builder’s yard, saying there’s a right of access to the substation behind, but that’s the only restriction. One call to Western Power identified there were three, below ground, HV cables crossing the site. No time is spent on design or planning investigation or viability research just a simple decision. Find out the cost to divert these or walk away.
This due diligence isn’t new, every developer does (or should do) it, but these early stages are where the risks need to be exposed and the right decisions made. Our clients agree there’s value in that early second perspective.
So, what does this look like?
We were approached to look at a potential project, a large house, in grounds, for sale with planning permission with the client asking the simple question, can we add value to this?
The Property Polaroid threw up some questions, and some cost implications, they hadn’t considered but provided assurance there were no significant constraints from utilities, flooding, ecology, contamination, etc. The planning review gave us a context and showed a history, which restricted the scope of the planning consent, but there were workarounds and policy changes that hadn’t been considered, so the simple answer was yes, we can add value.
The more detailed viability appraisals that followed, looking at the market, cost, risk, strategy, and exits, generated massively different development profiles ranging from the existing, low risk, approval with a GDV of £1.1M and an 18% return to a higher risk and more ambitious solution with GDV of £4.6M and 30%.
Did Ortus add value here?
As every developer knows you make your money when you buy the site. Our client concluded negotiations on the purchase of this property, confident that they had considered every option. They had considered their own risk profile, capacity, program and ambition and had a clear way forward.
Did Ortus add value here?
The variables and risks in these early stages were stepped through and managed by the developer. Ortus provided the support, expertise and experience to allow them, and their investors, to make clear and informed choices.
Did Ortus add value here?
With the confidence of a clearly defined brief, Ortus designed, produced and delivered the best solution, for this developer, on this site. Once planning is achieved, Ortus will produce technical details and specifications, manage technical applications, manage the build and deliver the finished development.
Does Ortus add value here?
That’s the power of partnering with Ortus. Do we add value? You decide!