Service: Valuation | Sector: Residential Development
The Challenge
Gerald Eve LLP was instructed by Waterside Places to undertake an update valuation of Hale Wharf to satisfy its funding agreement with the Greater London Authority (GLA). The GLA is providing grant funding for the residential-led development scheme in Haringey.
The approved planning permission comprises 505 residential dwellings, including private for sale, build to rent, 35% affordable housing and commercial elements. As construction had commenced at the valuation date, our valuation was required to reflect the Market Value of the site in the course of development, with reference to the specific RICS guidance.
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The Solution
We explained the valuation approach and methodology to the client, agreeing a number of assumptions to reflect the part-built nature of the site and to satisfy their funding agreement criteria. To assess the value of the site at the valuation date, we worked with them to identify the remaining construction costs and revenues at the valuation date in addition to determining a risk-adjusted developer’s return.
The Results
Our valuation accurately captured the investment in the site by Waterside Places and was used to justify the level of grant funding required to ensure phase 2 of the development was deliverable. Our comments on the suitability of the site as loan security allowed the GLA to make clear decisions regarding its lending.
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