Cornerstone Property Assets
Cheshunt is a foundation trust school in Hertfordshire which in the lead up to 2013 was operating under capacity and was in special measures. It continued to experience a falling role, and had particularly limited facilities in STEM (science, technology, engineering and maths). The school had failed to secure funding to replace the existing STEM facilities in a more prominent position which would provide up to date facilities and attract more students. The school were therefore looking for alternative sources of funding including self – financing through the sale and enabling development of surplus land.
Cornerstone acted as both broker and advisor and worked entirely at risk with no upfront cost to the school. Cornerstone developed both the school scheme and housing scheme for market with subcontractors and led the negotiations with the planning authority. The team undertook supporting surveys for the design, planning and tendering processes, and led the procurement process on the schools’ behalf for a development partner for the housing and school scheme. Cornerstone also created a detailed financial model to test the viability of the scheme and manage affordability.
The Cornerstone solution was to wrap the provision of new premises with the sale of the surplus school land for residential housing allowing the client to secure their benefit upfront. The housing was an enabling development for the school thereby reducing requirement for S106 payments. The sale of the land to the developer included a requirement to commence the new school premises in advance of the housing development
Spring 2013 – present
Former Yorkshire main Colliery, New Edlington, Doncaster
To obtain best value planning approval for former colliery waste site of 43.5 acres in the form of a new residential community and family pub. Accommodate a new access across steep changes in level and enhance the existing woodland surround and utilise key site opportunities and community links. The development aimed to stitch together communities of Balby and New Edlington by revitalising the existing walk trails and cycleways and encourage more pedestrian movement in and around the site.
Site study’s analysis and understanding of constraints and stakeholder interests, feasibilities, master planning, assisting with technical reports, planning discussions, public presentations, design and access statement.
Outline planning approved December 2015
London Borough of Croydon
Initially we were engaged to analyse of a portfolio of sites, which could assist the Council to deliver housing targets, secure capital receipts and impact on key Council objectives. Phase two of the instruction was a review of site opportunities in more detail, including development capacity, viability, deliverability and place-making impact. It considered how the Council should use its powers and resources, and an emerging Croydon Investment Fund, to progress development and market intervention opportunities.
We were subsequently retained to provide advice on the business case for setting up an arms’ length development company (Brick by Brick Limited), in which the Council would be the 100% shareholder. This advice also included technical, legal and planning due diligence on Council owned assets in readiness for development feasibility.
Arcadis has since been retained to provide pre and post contract multi-disciplinary consultancy including programme management, project management, cost consultancy, engineering and environmental services to deliver c, 1,000 housing units on 53 sites owned by the Council and transferred to Brick by Brick Limited for development purposes for delivery over a two year delivery period.
Our role is to provide full development services including;
- Development consultancy
- Programme and project management
- Cost consultancy
- Financial modelling
- Technical Due Diligence
- Engineering Services
- Environmental Services
- Principle Designer (CDMC)
The key challenges that we have addressed include:
- Providing sustainable and deliverable development options reflective of the mix of uses, planning requirements and technical due diligence findings.
- Optimising land value and profit while managing peak debt to provide revenue streams from the development company back to the Council.
- Providing viable development solutions which met the Council’s objective of providing 50% affordable housing.
- Optimising the batching of sites for contractors to make the small site solution as attractive as possible and delivering to a programme which sees units complete by Spring 2018.
The outcomes from this commission include:
- Developing a programme wide approach to affordable housing which optimises the quantum and percentage of affordable homes and gains an additional 120 units through improved viability.
- Working with the Council to understand the advantages and disadvantages of different delivery models for the setting up of a development company in a way which would provide the most advantageous benefits for the Council.
- Identifying the benefits of delivery through a development company that was completely separate from Council control and not having to follow OJEU processes.
- Working with the Council to define the mechanisms for the transfer of assets, finance and resources to ensure effective operation of the development company.
- Developing approaches to standardisation across the programme to ensure second tier supply chain efficiencies.
- Optimising the programme to generate c. £35m of land value and £34m profit on cost as Council returns from its investment. His has involved up to 70 Arcadis staff working on the commission in any one month.
- Incentivisation strategy for contractors to focus on programme completion dates.
May 2014 – to date
Morgan Sindall Investments
South Northamptonshire Council
Morgan Sindall Investments formed a partnership with South Northamptonshire Council in 2012 for the regeneration of the historic Moat Lane conservation area of Towcester town centre and the delivery of a new Community building for the Council.
This complex project has multiple phases of development. The first phase was the design, build and financing of a new 40,000 ft² civic office building and infrastructure. In consideration for those civic works the Council transferred development land to Morgan Sindall Investments. The land transferred is currently being developed for housing, retail, food and drink, public house and light industrial uses. The developments include a mix of new build works and refurbishments, including listed buildings.
The first phase saw the delivery of the new 40,000ft² civic building which was completed and handed over to the council in March 2015. Morgan Sindall Investments’ sister company Lovell Partnerships is currently on site building 44 houses and 13 apartments. Future phases will see the development of around 22,000 ft² of retail and commercial space.
Joint Venture Partner
Turner & Townsend
Sheffield City Council
Sheffield City Centre
Sheffield City Council approached Turner & Townsend as their delivery partner with an opportunity to develop a new office for HSBC in the heart of Sheffield. This office represents the first phase of delivery of the Sheffield Retail Quarter.
Sheffield City Council are acting as developer for the scheme in which HSBC has agreed to a 15 year lease on the new facility. By acting as developer, the Council has retained control over the development and the economic benefits that this will bring into the future.
The 140,000sqft office space will sit on top of 60,000sqft of retail located on the site of the former Grosvenor Hotel at the corner of Charter Row and Pinstone Street in the city centre. The building will occupied by HSBC in Spring 2019.
Turner & Townsend supported the successful bidding process to HSBC and were retained by the Council to provide Development Management, Project Management, Cost Management and multi-disciplinary design services in the delivery of the office and retail development.
- Led the successful bidding process on behalf of Sheffield City Council for the opportunity to develop the office for HSBC.
- Worked hand-in-glove with Sheffield City Council to secure Heads of Terms followed by the Agreement to Lease with HSBC as anchor tenant.
- Provided a full Development Management service, shaping proposals to meet HSBC’s needs whilst working within tight spatial and economic constraints and undertaking development appraisals to demonstrate scheme viability.
- Market leading project and cost management services have kept this fast track project running on programme and to budget.
- Brought together a world class design supply chain to facilitate scheme delivery efficiently and economically.
2015 – 2019
Keyland Development Ltd
Yorkshire Water Services & Harewood Estate
Cornwall Road, Harrogate
In 2007, Keyland brokered a land agreement to combine the interests of Yorkshire Water and the Harewood Estate in respect of a 10-acre site previously used for open storage reservoirs. Under the terms of our ongoing relationship with Yorkshire Water, the utility company requires Keyland to put in place all the necessary development agreements to deliver a land sale as part of a wrapped solution zero financial cost/risk to the utility.
Keyland carried out financial modelling and cost planning to identify the most commercially attractive form of development and then we worked with Yorkshire Water and the Harewood Estate’s representatives to help both clients to identify, maximise and realise benefits from the disposal of this surplus land. It allowed all three parties (the Harewood Estate, Yorkshire Water and Keyland) to benefit from the uplift in values that followed from Keyland gaining planning permission for residential development on the site.
Keyland ran the project team and met all of the consultancy costs, which meant we took the financial risk during the project development phases (up to achieving planning consent) with payment for services being realised and paid through the proceeds of the proposed land sale.
Keyland then brokered a deal to deliver a land sale to an upmarket housebuilder who was not well established in North Yorkshire, but was very keen to purchase a flagship scheme in Harrogate. Once the sale completed, Keyland received payment for the Company’s services from the sale proceeds. Following the recovery of Keyland’s costs, the Company and the two client landowners shared the proceeds in accordance with the land agreement.
2007 – 2014
- Appointment of Lead Consultant Team for M1 J36 Economic Growth Corridor
- Spring Terrier – Land Solve Article
- Shortlisted at National NPS Excellence Awards
- Land Solve supports local Barnsley heritage
- CCISY Awards 2017: Success for Land Solve
- ACES Conference Success
- Shortlisted for the CCISY Innovation Award
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