Property Investment and the Capital Markets - Assignment Example

 The main stages of the design and construction of the development along with utilities and key components Map after the final stages of completion for Cold-Water (expected to be complete by 2010) The list below shows the what the final plan of Cold Water development will incude. 1. Canal link to Coal Town 2. New Commercial Shopping Centre 3. Freedom Square 4. Iron Tower 5. Hotel Frizderland 6. Heritage site formation 7. Aquatic centre (swimming and diving pools) 8. Floating outdoor swimming pool 9. Fitness Centre 10. Ice skating rink 11. Local Government Housing 12. Flats for Council Houses, 13. Improved pedestrian access to Lower Road 14. Re-landscaped Docks Promenade 15. Duck Grove 16. Office Quarter 17. Ecology centre 18. Apple Grove 19. Library Centre 20. Water Basin Important! (This plan has been adapted from the plan of Canada water and the relevant maps and locations have been accordingly adapted for the configuration of a suitable feasibility plan for the development of the following site. The site has been called Cold-Water and other factors have been added to address the assessment evaluation. All the figures and statistics and names are fictitious))1 Introduction I have been asked to advise in relation to the feasibility of the housing development in the Cold-Water site above ( which is still being developed as the diagram shows the expected outcome of these efforts).This report will refer to private housing, social housing and key worker accommodation on this site and may also include shops and other suitable facilities. This report pertains to the development of Cold waters housing initiative as apparent from the computer-graphed image above which will mean that the current map of the Cold-Water will have a large number of landscape changes made to it with a possible usage of land swaps and remodeling.At the outset it is possible to see from the graphically configured diagram of the Waterside View above it can be seen that it is not only a housing area but the inclusion of the aquatic leisure centre is all set to increase the commercial value of the estate. Facilities and main features The plan is to focus upon terraced houses and low rise flats for an increase in the landscape beauty. The housing estate will be complete with a new leisure centre ,a public covered swimming pool, a training pool, and generous opportunities for gymnastic and sports activities. It is also planned that there will be two nearby single storey retail warehouses with expansive surface car parking for them and n restaurants/cafes with outside seating areas for the summer. All vehicle servicing will be underground. As mentioned before the housing plan includes a lot of low rise flats which will be around this commercial property and a liberal amount of landscaping will be provided from the dock area above. This area was formerly a low wage income area before the government too initiatives to bring out the commercial potential of this place. The residential housing is for both commercial and council purposes. There is a total of 55,600 sq m of residential housing available 60% of which is based on the PFI initiative and will be sold or leased back to the Local Government.The problem here is that due to the lack of labour etc there are likely to be delays in building which may cause fines being imposed upon the constructing firms.These delays may also be aggravated by the scientific protests going on. The idea for the commercial accommodation is feasible enough as the plan includes reasonably priced properties along with balconies and roof gardens and secure car-parking underground. The demographics, densities and styles around the locality and styles of local housing developments There are many neighbourhoods surrounding Cold water like as Steel Town, Chemical Town, Coal Town where is there is a rampant issue of economic decline and a change in function. New jobs bypass these older urban areas.This is particularly true for the . the old coal mining and chemical areas – where unemployment remains a substantial problem.Chemical in particularly, is characterised by a low wage, low skill economy and it also has the highest proportion of low skilled workers and the lowest proportion of highly skilled workers in the Mid Southern districtIn terms of population change, there has been a relative increases in population in the west of the district as families with children locate in those areas most accessible to new employment opportunities. At the same time the east of the District is suffering a relative fall in population with the elderly representing an ever growing proportion of the population. Educational attainment also lags behind national averages. The proportion of pupils achieving five or more Grades A to C at GCSE level in 2007 in Chemical Town was 45 per cent – well below the national average. However, the rate of improvement locally between 1998 and 2007 (6.1%) was greater than that nationally (4.1%), so the gap is narrowing slightly and slowly. In respect of the development proposal, identify the client groups for whom it is intended and how the development is financed. How do your proposals reflect to the current government priorities? My group of companies has won the contract, which is part commercial and part finances by the Government. The private stakeholders in the member companies are expecting a real return of 15% – 20% a year on their investment. This could be increased even further through refinancing the deal. The financing of this project is by a consortium of companies comprising of banks, building firms, developers and service providers. There is also a role of the Private Finance Initiative (PFI) policy,since Cold Water is a large-scale building project that would, in the past, have been publicly financed by the treasury but has been tendered to us.Most of the Flats and hospitals built in this area will be leased back to the Local Government Housing and the NHS, and these lease agreements are legally binding and have a typical duration of 25 years. There is a pending issue of the quality and timely completion of the buildings based upon the slow labour force here which is mainly comprised of the aging population. What are the Implications of the development plan/structure plan for this locality? What is the planning process for such a development and what types of consultation might take place. There were a lot of political problems faced in the development of this site. Firstly there was the issue of draining the land (a small water feature would be an attractive low cost possibility). However the nature reserve declared this Site of Special Scientific Interest (SSSI) due to the presence of Great Crested Ducks in some of the ponds and wetlands which are an endangered species.There have been recent instances where development still pressed ahead despite the presence of these creatures but this resulted in delays & bad publicity due to strong opposition from environmental and wildlife groups. However after there were promises to preserve and move this endangered species away to safer havens and also continue the building in an environment friendly fashion. The other implication was the go-ahead given by the government as building would bring Jobs to this formerly economically down trodden area and it is felt that due to the availability of jobs and better housing people from more affluent but crowded sections of London will come in here and settle down for jobs or residence. Conclusion The most important aspect of success here is the special attention being paid to the ecological initiatives like bird boxes on trees and buildings, bat bricks and nesting boxes, Introduction of brand new plants and wild life conservation for the Crested Ducks which are extinct elsewhere Furthermore the reason I foresee this plan as a success is based on the special consideration of being able to foresee arrangements under the Private Finance Initiative (PFI) where some of the council flats will be subsequently leased to the public sector and the strong preference of our investment partners as to the presence of various high quality commercial opportunities available in the area serving the entire district in the interests of attracting specialists and for better economies of scale. However it has to be understood that the transport links across the neighbouring districts are not good with very poor bus services particular from and to the east side of the district. This will affect the mobility of the labour force. The plan also supports the safe and ethical way of dealing with the fast diminishing species of Crested Ducks. Also envisioned is the less trouble with the shareholders and financers where as the reduced risk of building in the absence of any further political protests will not only meet the target of the real return of 15% – 20% a year on shareholder investment but have fewer issues with refinancing. References 1. www.canadawater.org/graphics/british_land_map.gif 2. Annals of Operations Research (1990), Intransitive Preference Theory, Vol. 23. 3. Bacharach, M., Hurley, S. (1991), Foundations of Decision Theory, Basil Blackwell, Oxford 4. Banerjee, A. (1992), "A simple model of herd behavior", The Quarterly Journal of Economics, Vol. 3 pp.797-817. 5. Baum, A. (1988), A Critical Examination of the Measurement of Property Investment Risk, . 6. Becker, G. (1976), The Economic Approach to Human Behavior, University of Chicago Press, Chicago, IL., . 7. Boydell, S., Clayton, P. (1993), "Property as an investment medium - its role in the institutional portfolio", Financial Times, . 8. Brown, G. (1991), Property Investment and the Capital Markets, Spon, London., 9. Byrne, P., Lee, S. (1995), "Is there a place for real estate in the multi-asset portfolio?", Hilton Head., paper presented at American Real Estate Society Annual Conference, . 10. Cyert, R.M., March, J.G. (1992), A Behavioural Theory of the Firm, Blackwell, Oxford., . 11. French, N. (1996), "The behaviour of investors; perceptions and decisions in real estate investment", Lake Tahoe., paper presented ARES 1996, . Read More