Whether you're new to development or a seasoned professional, you're going to need the assistance of numerous professionals to make this type of business work. As well as architects and potentially planning consultants and/or financiers, estate agents are often utilised to provide their opinions on the GDV (Gross Development Value) of the proposed site. At EMBARQ, as well as providing GDV reports, we also offer a "Deal Stacking Service". This is one of the most unique and valuable services available to the developer market because our reports can save a lot of time and a huge amount of money before developers get too carried away with a potential development.
Out of the circa 200 Deal Stacking Reports that we undertake each year, over 90% of them don't work, either financially and/or in terms of planning viability. This figure has always shocked me and it just goes to show that the majority of developers aren't able to determine the financual or planning viabilty of a proposed scheme without assistance. Unfortunately, I often receive requests for a report after significant cost has already been spent on architects and planning fees. Remember, architects and planning consultants aren't going to advise you on whether the deal stacks up financially. It's also worth knowing that architects should really only be used to produce the drawings that planning consultants and/or the LPA (local planning authoirty) consider viable for planning viability. There's absolutely no point in engaging the services of architects or planning consultants unless the finances of the proposed deal stacks up which is why we established our Deal Stacking Service.
Deal Stacking Service
Planning Viability
Initially, I will assess the planning viability of the proposed site and, if required, discuss the scheme with specialist planning consultants.
GDV
Once we've determined the viable planning options, EMBARQ will produce a GDV analysis on the various schemes.
Financial Viability
I will assess the likely build/conversion costs of the proposed site and, if required, discuss the scheme with specialist contractors. Once we have a realistic GDV and cost of works for all viable planning options, I will then be able to determine the optimum scheme for the site and more importantly, whether any of the proposals stack up. By "stack up" I'm referring to what the maximum price can be paid for the site, what the site would be valued at with a planning grant and whether development finance could be obtained. The latter will be confirmed by our affiliated development finance brokers for regulation reasons.
If you'd like to discuss our Deal Stacking Reports further then please don't hesitate to contact me. Additionally, please find a link to one of my videos on this subject (below):
David Giles
