Property Pathway Program

Brief

Read and explain in detail (at least 2000 words).

This work concerns the Island site upon which the entrance to Great Portland Street underground station is situated. (It has been deliberately chosen as it is easy to identify and can be seen on any OS based map). You are required to undertake an investigation of two suitable uses of that site. You should consider the uses that you think may give the highest residual site value. Take what you consider to be the two most profitable uses and analyse these in depth in respect of the site in question. You may make assumptions about developer preference and risk as appropriate but clearly state any that are made.

The Island site at Great Portland street has been deliberately chosen, you may assume it is the existing area of the Island (within which traffic circulates) upon which Great Portland Street station sits. You should assume that footpath circulation will be required around the block as is the case now.

You should assume that it is possible to construct circa 4 storeys on the site in question. The ground floor maybe assumed to be used for a retail use if you desire/think that this adds value. The remaining use of the development proposed should essentially be a single use (and it is these single uses that you should compare/analyse). You should provide market justification for your choice of uses.

For the two uses considered you should analyse likely occupiers and market information. This should be clearly provided as part of your work. Think and name who might actually locate to your site if the user is a commercial concern.

You should provide some marketing particulars/information relating to both of your two shortlisted options (as if each scheme were to go ahead) with appropriate caveats and small print.

You must provide full residual valuations to show the assumed land value for both of your shortlisted uses. You should use realistic inputs. These should be fully annotated and supported.

You can state what you believe the site area to be as an assumption and work with this in your work. You do not need to consider planning policy you can assume that consent would be forthcoming (for any reasonable mainstream use). You need not and should not try to enter any existing building or structure on the site. You need not worry about rights to light or similar or particular issues concerning neighbouring buildings, gates, fences etc., - you can make suitable assumptions if necessary. You are to ignore the existing station building and structure that already exists and assume that what does exits is per the assumption below. The neighbouring buildings should be assumed to be as they are in the real world.

The assumption to be made: You should assume that instead of what actually exists on the site at present, two small 1960s office buildings stand. They can both be assumed to be owned by the site owner. One is let on a 15 year FRI lease inside the security of tenure provisions of the Landlord and Tenant Act 1954. It was let in 2007. The rent presently being paid is 105,000 p.a. and the rateable value is 97,500. The second building was let on a ten year FRI lease in 2011, again inside the Act, the tenant has recently vacated. The rateable value of this building is 145,000.

You should state by reference to Statute and case law, concisely, how and when you will obtain possession of these buildings in order to enable development to commence. What if any compensation will be payable to either tenant?