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A detailed analysis of the financial aspects of a commercial real estate development project. It includes information on rental income, development costs, purchaser's costs, agent's fees, legal fees, interest on finance, and profit. The project involves the development of industrial, retail, and student housing spaces in different areas.
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Rental Income Area £ psf £ per annum Rent - area 1 15,000 8.00 120, Rent - area 2 - - Rent - area 3 - - Total rental income 15,000 120,
Rent free/voids (years) 2 0. Total revenue, capitalised (including all costs) 8.00% 1,286,
Purchaser's costs 5.75% 73,945 1,212,
Development Costs Demolition costs £5 psf 7,500 sqt 37, Building costs £65 psf 1,083, Area 16,667 90% grs to net External works 15.00% 162, Professional fees 10.00% 128, Contingeny 5.00% 70, Section 106 costs 1 - 0.00% CIL amount^ RLV
Letting Agent's fee (% of rent ) 10.00% 12,000 2 £20 -£820, Agent's fees (on capital value) 1.00% 12,860 3 £30 -£829, Legal fees (% of capital value) 0.75% 9,645 4 £40 -£838, 5 £50 -£846, Interest on Finance 6 £60^ -£855, Total development duration 18 months 7 £70 -£864, Loan arrangement fee 1.00% 14,823 8 £80 -£873, Interest on Construction Costs 18 months 6.50% 72,260 9 £90 -£882,
. 10 £100 -£891, Profit 11 £130^ -£917, Developer's profit on cost 20.00% 320,767 12 £160 -£944, 13 £190 -£971, 14 £220 -£997, TOTAL DEVELOPMENT COSTS 1,924,605 15 £250 -£1,024, 16 £280^ -£1,051,
Land surplus (712,542) Stamp duty 4.00% 28, Agent's fees 1.25% 8, Legal fees 0.50% 3, Interest on land finance 24 months 6.50% 87,
RESIDUAL LAND VALUE (584,267)
Existing use value Existing space as percentage of new 50% 7, Rent per sq ft £3 psf Rental income per annum 22,
Rent free/voids (years) 3.0 0. Total revenue, capitalised (including all costs) 9.00% 193,
Refurbishment costs £ psf - Fees 7% -
Purchaser's costs 5.75% 11,
Existing use value 181,
EUV including Landowner premium 20% 218,
Surplus available to fund CIL (802,602)
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CIL amount per sqm
Residual Value net of Existing Use Value
Rental Income Area £ psf £ per annum Rent - area 1 10,000 21.00 210, Rent - area 2 - - Rent - area 3 - - Total rental income 10,000 210,
Rent free/voids (years) 2 0. Total revenue, capitalised (including all costs) 7.00% 2,620,
Purchaser's costs 5.75% 150,668 2,469,
Development Costs Demolition costs £5 psf 5,000 sqt 25, Building costs £141 psf 1,658, Area 11,765 85% grs to net External works 15.00% 248, Professional fees 10.00% 193, Contingency 5.00% 106, Section 106 costs 1 - 0.00% CIL amount^ RLV
Letting Agent's fee (% of rent ) 10.00% 21,000 2 £20 -£834, Agent's fees (on capital value) 1.00% 26,203 3 £30 -£841, Legal fees (% of capital value) 0.75% 19,652 4 £40 -£848, 5 £50 -£854, Interest on Finance 6 £60^ -£861, Total development duration 18 months 7 £70 -£867, Loan arrangement fee 1.00% 22,322 8 £80 -£874, Interest on Construction Costs 18 months 6.50% 108,820 9 £90 -£880,
. 10 £100 -£887, Profit 11 £130^ -£906, Developer's profit on cost 20.00% 486,039 12 £160 -£926, 13 £190 -£946, 14 £220 -£965, TOTAL DEVELOPMENT COSTS 2,916,237 15 £250 -£985, 16 £280^ -£1,005,
Land surplus (446,589) Stamp duty 4.00% 17, Agent's fees 1.25% 5, Legal fees 0.50% 2, Interest on land finance 24 months 6.50% 54,
RESIDUAL LAND VALUE (366,192)
Existing use value Existing space as percentage of new 50% 5, Rent per sq ft £10 psf Rental income per annum 50,
Rent free/voids (years) 3.0 0. Total revenue, capitalised (including all costs) 7.50% 536,
Refurbishment costs £25 psf 125, Fees 7% 8,
Purchaser's costs 5.75% 23,
Existing use value 379,
EUV including Landowner premium 20% 455,
Surplus available to fund CIL (821,861)
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CIL amount per sqm
Residual Value net of Existing Use Value
Rental Income Area £ psf £ per annum Rent - area 1 30,000 18.00 540, Rent - area 2 - - Rent - area 3 - - Total rental income 30,000 540,
Rent free/voids (years) 2 0. Total revenue, capitalised (including all costs) 6.00% 8,009,
Purchaser's costs 5.75% 460,573 7,549,
Development Costs Demolition costs £5 psf 15,000 sqt 75, Building costs £90 psf 3,000, Area 33,333 90% grs to net External works 15.00% 450, Professional fees 10.00% 352, Contingency 5.00% 193, Section 106 costs 16 476,898 8.62% CIL amount^ RLV
Letting Agent's fee (% of rent ) 10.00% 54,000 2 £20 £197, Agent's fees (on capital value) 1.00% 80,100 3 £30 £180, Legal fees (% of capital value) 0.75% 60,075 4 £40 £162, 5 £50 £144, Interest on Finance 6 £60^ £126, Total development duration 24 months 7 £70 £109, Loan arrangement fee 1.00% 45,483 8 £80 £91, Interest on Construction Costs 18 months 6.50% 221,728 9 £90 £73,
. 10 £100 £55, Profit 11 £130^ £2, Developer's profit on cost 20.00% 1,001,932 12 £160 -£50, 13 £190 -£103, 14 £220 -£157, TOTAL DEVELOPMENT COSTS 6,011,591 15 £250 -£210, 16 £280^ -£263,
Land surplus 1,537, Stamp duty 4.00% (61,512) Agent's fees 1.25% (19,223) Legal fees 0.50% (7,689) Interest on land finance 24 months 6.50% (188,419)
RESIDUAL LAND VALUE 1,260,
Existing use value Existing space as percentage of new 50% 15, Rent per sq ft £10 psf Rental income per annum 150,
Rent free/voids (years) 3.0 0. Total revenue, capitalised (including all costs) 7.00% 1,749,
Refurbishment costs £25 psf 375, Fees 7% 26,
Purchaser's costs 5.75% 77,
Existing use value 1,270,
EUV including Landowner premium 20% 1,524,
Surplus available to fund CIL (263,581)
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CIL amount per sqm
Residual Value net of Existing Use Value
Rental Income Area £ psf £ per annum Rent - area 1 4,000 20.00 80, Rent - area 2 - - Rent - area 3 - - Total rental income 4,000 80,
Rent free/voids (years) 2 0. Total revenue, capitalised (including all costs) 7.00% 998,
Purchaser's costs 5.75% 57,397 940,
Development Costs Demolition costs £5 psf 2,000 sqt 10, Building costs £101 psf 475, Area 4,706 85% grs to net External works 15.00% 71, Professional fees 10.00% 55, Contingency 5.00% 30, Section 106 costs 16 70,387 8.12% CIL amount^ RLV
Letting Agent's fee (% of rent ) 10.00% 8,000 2 £20 -£92, Agent's fees (on capital value) 1.00% 9,982 3 £30 -£95, Legal fees (% of capital value) 0.75% 7,487 4 £40 -£97, 5 £50 -£100, Interest on Finance 6 £60^ -£102, Total development duration 18 months 7 £70 -£105, Loan arrangement fee 1.00% 7,132 8 £80 -£108, Interest on Construction Costs 18 months 6.50% 34,771 9 £90 -£110,
. 10 £100 -£113, Profit 11 £130^ -£121, Developer's profit on cost 20.00% 156,123 12 £160 -£129, 13 £190 -£137, 14 £220 -£144, TOTAL DEVELOPMENT COSTS 936,739 15 £250 -£152, 16 £280^ -£160,
Land surplus 4, Stamp duty 4.00% (163) Agent's fees 1.25% (51) Legal fees 0.50% (20) Interest on land finance 24 months 6.50% (500)
RESIDUAL LAND VALUE 3,
Existing use value Existing space as percentage of new 50% 2, Rent per sq ft £10 psf Rental income per annum 20,
Rent free/voids (years) 3.0 0. Total revenue, capitalised (including all costs) 8.00% 198,
Refurbishment costs £25 psf 50, Fees 7% 3,
Purchaser's costs 5.75% 8,
Existing use value 136,
EUV including Landowner premium 20% 163,
Surplus available to fund CIL (160,603)
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CIL amount per sqm
Residual Value net of Existing Use Value