A Henry Stewart Briefing

An Introduction to Property Development

Chairman

John Bywater
Managing Director
Caddick Developments Ltd

Speakers

Nigel Dubben
Principal Lecturer and Postgraduate Course Director
School of Surveying, Kingston University
Author
Property Partnerships

Bryan Duncan
Managing Director
Retail – London Market
DTZ

John Gidman
Chief Executive Officer
Metro International Group

Steve McGuckin
Director of Projects
Land Securities Group plc

Ben Moon
Director of Investment Consulting
Atisreal

Paul Shelley
Planning & Development Consultant
Paul Shelley Ltd

Ian Stockdale
Senior Partner - West End Property Finance Team
Clydesdale Bank Plc

Nigel Woolner
Consultant
Chapman Taylor LLP

Programme

Getting Started – The Fundamentals
• The developer's role – leadership
• What cannot be delegated – making decisions
• Key skills and attributes – brand and reputation
• Implications for smaller developers
• The development process
• Understanding the risks – market demand, third parties, planning constraints, finance, costs and obligations
• The investment decision
• Residential development and mixed-use considerations
• Case studies for commercial and retail developments

Finding & Acquiring Sites
• Investigations before purchase
• Influencing planning authorities
• Checking the development plan
• Regional Spatial Strategies
• Local Development Frameworks
• Community Strategies 
• Green Belts and Brownfield land   
• Planning applications and how the Council determines them
• Planning Appeals – formats and what to include
• Planning Gain and Section 106 Agreements
• Affordable housing requirements
• Density considerations
• Listed buildings and conservation

Valuation and Appraisal
• Understanding value and worth
• Why have valuations?
• What is the purpose of residual valuations?
• Methods of valuing development sites
• Assembling and verifying essential data
- Rents and yields
- Construction costs
- Professional fees
- Finance charges
• Setting the 'right' developer's profit
• Sensitivity analyses
• Introducing market volatility
- Changes in interest rates
- Construction costs
- Cost of delays
- Void periods
- Yields and rent models

Design and Construction
• The team
• Responsibilities
• Developing the design
• Contractor involvement
• Forms of procurement
• Construction monitoring
• Practical completion
• Dispute resolution
• Lessons learnt

Building a Coherent Development Team
• Clients – the naive, the experienced, the expert
• From Architects to Lawyers – what can you expect? Are they any better or worse than the old days?
• What to look for in your Team
• Dealing with all your stakeholders ... from the disinterested to the interested. How to cope
• Terms of engagement – Old Boy network and how to use / avoid it. How do you find your team
• The common causes of failure such as ... ineptitude, skills shortages, contracts not fit for purpose, non existent design management, bad briefing and scoping, cut price pay – cut price result, and ...
anarchy
• Management, Leadership and Competence – what's the difference and how to find it

Financing Development: How to get what you want from your Bank!
• How banks review development proposals
• Development risks and controls
• Pricing and funding structures
• Market conditions and the availability of development finance

Letting / Sale
• Sales Densities / Merchandise mix and Tenant selection. How to get the optimum
• Lease "accomodations" – is striving for regularisation worthwhile?
• Income out with review periods. What, where and why?
• Grooming for "sale"
• Aftermath – what looks like a good deal ... in retrospect?

How to Avoid the Many Pitfalls. The Art of Maximising Profits
• Problems of a smaller scheme
• Particular problems of residential schemes
• Frequently made mistakes
• How to recognise the danger signs
• How to avoid the disasters