Build cost info

[Vlad The Tweaker]

Hi everyone. I am a partner in a small business and part own our office which we are selling. We have had indications that whoever buys should be able to put 10 1-bed and 20 2-bed flats in the space (ground floor would provide some of the parking, next 3 floors for the flats). The cost of the site would be about 950K and the current building would need to be demolished. Would it be worth my being brave and raising finace to buy and build, or would it be an unprofitable nightmare??
Town centre location in E. Mids market town, 100K popn.

[pdk]

We are a planning consultancy that set up Enabling Projects Ltd specifically to do JV schemes with landowers.... Our proposition is: the longer you keep it away from developers the more value you will add for yourself... So we agree a package and take it forward for our partners... Please see our website at http://www.enablinguk.com/residential-development-land.html to learn more.

Another idea is to bring an investor/developer on board and you retain a % of the end result...

These are more imaginative ways to do the proposed development...

Best of luck with it...

PETER KYTE


NOTE: Peter Kyte BSC (Hons) DipTP MRTPI CGeog FRGS is an official LandlordZONE Topic Expert… For more information on Peter D Kyte Associates and Enabling Projects please see the websites at http://www.enablinguk.com and http://www.development-seekers.com. Any advice given by Peter Kyte in this Forum is of a general nature only and should not be taken to be a final and binding planning opinion. Based on any initial advice given you are strongly advised to seek a further professional opinion, which may involve a site visit and a detailed analysis of the issues... For information on the sort of work Peter undertakes please see TRACK RECORD (http://www.enablinguk.com/track.html), WORKING WITH INVESTORS (http://www.enablinguk.com/ur-property-investors-planning.html), and PROJECT TYPES (http://www.enablinguk.com/planning-project-permission-appeal-UK.html)...

[Vlad The Tweaker]

Does anyone have a rough 'guesstimate' for build costs. Sorry dont know what floor area might be but probably 'smallish'!:

[Colincbayley]

Does anyone have a rough 'guesstimate' for build costs. Sorry dont know what floor area might be but probably 'smallish'!:

For a private house it is approx. £1000 per Sqm, But this will vary depending on the size of the property, the type of properties and the area of the country.

The size of developement you are talking about should come in under this figure, but that will also depend on the quality of the finish.

Based on an average area of 50sqm for the 1 beds and 65sqm for the two beds ( 1800sqm total ) you would be looking at approx. £1.8 for the build cost, plus any communal areas & parking.

If you take a stab in the dark and call it £2mil for the build and £1mil for the land ( £3mil total ) then the price per unit would come in at £100,000 ( Average )
All you have to do now, is work out what you can sell them for and add any other costs ( finance, planning, buildings regs, surveys )

You should be able to walk away with a very nice profit.

If you wish to go ahead, and don't want the grief, there are plenty of independant developers out there that will come on board with you for a slice of the profits.

Good luck.

[Vlad The Tweaker]

Thanks very much guys - really useful info, will try and convince my partners now...:)