Site in Woodrolfe Road, Tollesbury, Essex
Scenario
Site in Woodrolfe Road, Tollesbury, Essex
Background
After careful consideration of your site use recommendations, Aprilla Developments have now
purchased the site at a price of £0.8m. They have decided to proceed with a luxury housing
development on this site. A plan of the proposed development is provided in Appendix 1. A schedule
of accommodation is summarised in the table below:
Plot
No.
Description Size sq ft per
unit
Size sq m
approx.
1 and 2 Four bedroomed semidetached
2400 223 All units are luxury homes
and include ground source
heat pumps, solar panels,
triple glazing, recyclable
water, car charging points,
and other sustainable
features making them zero
carbon homes.
Each home benefits from two
car parking spaces, or double
garages, and there are a
further 10 visitor car parking
spaces around the
roundabout in the centre of
the site.
3 to 7 Three bedroomed
terraced
1088 101
8 and 9 Three bedroomed
bungalow
1180 110
10 to
15
Four bedroomed semidetached
2400 223
16 to
20
Three bedroomed
terraced
1088 101
21 and
22
Three bedroomed semidetached
1188 110
23 and
24
Two bedroomed semidetached bungalows
1020 95
Aprilla Developments now require advice from you to check on the financial viability of the scheme
before going for planning consent. Your report should address the three specific tasks set out below.
© University College of Estate Management 2021 Page 3 of 9
Task 1
Using the details on the plan provided in Appendix 1 and the schedule of accommodation provided in
the scenario, you are required to produce a residual calculation to establish the profit that Aprilla
Developments might achieve from the scheme. Calculations should be prepared either on a
spreadsheet such as Microsoft Excel or presented in a Word (or similar) document where calculations
have been undertaken manually.
It is anticipated that the scheme will take one year to build, and that finance is available at 8% for the
entire cost of the scheme although they will be funding the scheme themselves with cash.
Carry out research, in respect of building costs, ancillary costs, and house prices and making any
necessary assumptions prepare a residual appraisal which should include, as a minimum, the
following information:
• full details of the input figures you are using in the appraisal including comparable properties,
building costs, and other costs likely to be involved in the scheme;
• the extent of social housing likely to be required on a site of this size;
• all of your calculations of the individual input elements in the appraisal; and
• full justification of the assumptions, costings and input figures that you use.
Task 2
Using the profit (or loss) established in Task 1, provide two separate sensitivity analyses that
models the impact of the following changes to the input variables in the scheme. Include a brief
critical evaluation for your clients of the limitations of market data used in these appraisals and
highlight how they might maximise the profitability of this site.
Scenario a)
• House prices increase by 10% before start on site;
• Building cost inflation is 4% per annum;
Scenario b)
• House prices fall by 5% before start on site;
• The local authority impose a CIL of £100/sq.m. with immediate effect.
Task 3
The Directors of Aprilla Developments have now found a further site that they want to purchase. This
means they are no longer able to fund this development from their cash holdings. They still want to
carry out the development but need some basic guidance on funding options.
Prepare a Briefing Note that outlines and evaluates various potential sources of finance that might be
available to them.
Sample Solution
were a fifth and early sixth century tribe, believed to be inhabiting the Gotaland region of Southern Sweden. This certain tribe has many terms attributed to its people that has been around for years on end, some of which many Americans have not even heard about. These names include, “Sea-Geats,” “Geatland,” and “Weather-Geats.” These particular names have been in existence ever since the Middle Ages, but of course the actual spelling has developed over time.
Though much can be said of the Geats, there still remains the prominent question whether or not the Geatish people actually existed. “It is a curious fact that the people most prominently mentioned in Anglo-Saxon epic poetry are not yet certainly identified. As late as 1907 the nationality of the Geats was still being discussed, and even to-day the question would seem to be an open one” (Gudmund Schütte).
Scholars of today’s time have attributed the Geats’ origin to that of the Gotland. This land was an independent state until middle of the sixth century, other claim their independence might have ended before that time period. It is possible that the proper way to pronounce the word Geats/Geatas, would be to understand the English language in the 16th century. The following statement describes the notion of certainty of one thing about the Geats and another that may be contradicting the opposing claim. “It is obvious that this suppression makes nonsense of the argument that Alfred’s ‘Geatas’ for Bede’s ‘Iutae’ is some mistake or other¬¬¬—scribal confusion of eo with ae, Alfredian uncertainty, or what not” (Malone). In this era, the tribe’s name would have been “zeats,” but when you take into consideration the pronunciation of such a word, it is certain that the precise spelling would be “Yeats.”
“Their name was sometimes confused by medieval writers with that of the Jutes, but while they are almost certainly a separate group, there is always the possibility that they and the Jutes were related. To the north-west of the Geat lands lay the kingdom of Alfheim, while the Swedes and the small territory of Nærríki lay to the north and Scania lay to the south” (Peter Kessler).