Solving the Problem
Landowners may not have access to financial resources or the experience to bring redundant sites forward for comprehensive redevelopment.
Many brownfield sites are contaminated giving rise to ongoing liabilities and risk. The levels of which are generally unknown or existing surveys are out of date and superseded by current legislation. Alternatively the existing solution may be prohibitively expensive.
Unlocking the Potential
Bericote will undertake and finance all surveys required to submit a full planning application to include:
- Flood Risk
- Highways Impact
Bericote will work up a masterplan which will form the basis of an outline planning application.
Bericote will undertake site clearance and demolition work.
Bericote will negotiate the best remediation strategy with the Environment Agency.
Occupiers will be attracted to sites provided there is a credible and competitive developer working jointly with a landowner. Bericote will retain the landowner’s advisory agent as part of the marketing team to promote the site and secure pre-lets/pre-sales.
Sharing the Profit
Pre Lets / Pre Sales
Development plots will be drawn down as pre-let/pre-sale Design & Build opportunities are secured.
Fixed Land Price
The Landowner will benefit from the land drawdown payment. A gross land value will be agreed reflecting current open market value. Deductions will be made for remediation, infrastructure and abnormal costs to provide a net purchase price.
Firstly, the landowner would receive proceeds from the draw down land payment. Then, Bericote would take a 5% priority return on total costs. All additional profit would be split 50:50 between the Landowner and Bericote/occupier. This would generate significant enhanced returns to the Landowner and would ensure exposure to an improved upside as a result of improving yields or land values.
An appraisal reflecting a specific plot drawdown will be agreed with the landowner fixing the drawdown price to be paid up front and the profit share to be paid upon practical completion. Bericote will work on an open book basis, offering complete transparency.