Anerley Road

The brief

A developer bought a derelict shop with planning for 9 flats and wanted to start quickly. The site borders Network Rail, so several licences had to be negotiated. Tenders and a Quantity Surveyor's report showed the scheme would only break even.

What we did

Negotiated with Network Rail

We helped the client bring Network Rail's scaffold and hoarding licence fees down from £100,000 to £15,000. Without that, the project would not have gone ahead. Value to the client: £85,000.

Value engineered the build

We reviewed the client's requirements and the design during estimating and cut the build cost from £2,015,000 to £1,472,000. Value to the client: £543,000.

Redesigned to add space

Parts of the design used valuable space without needing to. Changing them added around 450 sq ft of sellable floor area and room for 4 more bedrooms across the scheme. Value to the client: £225,000.

The result

GDV £4,000,000. Purchase price £1,200,000. Build cost £1,472,000. Other costs £100,000. Profit £1,228,000, a 30.7% return on GDV (excluding finance and selling costs). 24 months overall, with a 15-month build, under JCT Design & Build.