Industrial and Business Space Development: Implementation and urban renewal

Book Cover......Page 1
Half-Title......Page 2
Title......Page 3
Copyright......Page 4
Contents......Page 5
About the authors......Page 11
1 Introduction......Page 12
Part One THE INVESTMENT AND DEVELOPMENT MARKET......Page 18
2.2 Trends in Great Britain......Page 19
2.3 Employment trends......Page 25
2.4 The UK property market......Page 26
2.5 The evolution of the UK property market......Page 27
2.6 National and micro economic policies......Page 29
2.7 Taxation of property......Page 32
2.8 The property market since 1982......Page 33
References......Page 34
3.1 Investment property......Page 35
(a) Location......Page 36
(e) Occupational lease......Page 37
3.5 Portfolio mix......Page 38
3.6 The location of investment property......Page 39
3.7 The advantages of direct property investment......Page 41
3.8 Disadvantages of property ownership......Page 42
3.9 Investment portfolio analysis......Page 44
References......Page 45
4.1 Taxation and taxation allowances......Page 46
4.2 Assisted areas......Page 47
4.3 Private sector finance......Page 48
4.4 Ratio analysis......Page 49
4.5 Presentation of case......Page 50
4.6 Interest payments......Page 51
4.9 Property companies......Page 52
4.12 Debentures, mortgages and bonds......Page 54
4.13 Joint ownership......Page 55
4.14 Unitization......Page 56
4.15 Financial institutions......Page 57
4.16 Insurance companies......Page 58
4.17 Pension funds......Page 59
4.18 Owner occupiers (internal funding)......Page 60
References......Page 61
Part Two PROPERTY COMPONENTS......Page 63
5.1 Classification of planning uses......Page 64
5.3 Seedbed/nursery unit......Page 66
5.4 Investors’ attitudes......Page 67
5.5 A standard traditional warehouse—industrial specification......Page 70
Frame......Page 71
Floor loading......Page 72
Offices and toilets......Page 73
Externally......Page 74
References......Page 75
6.1 The classification of manufacturing buildings......Page 76
6.2 Out of town offices......Page 77
6.3 Defining science/research parks......Page 78
6.5 Examples of business parks......Page 80
6.6 Business use space—a guide to the specification......Page 81
Site layout and car parking......Page 82
Roof......Page 83
Floors and ducting......Page 84
Tenure......Page 85
References......Page 86
7.1 Introduction......Page 88
Background......Page 89
CONVERSION SCHEMES WITHOUT COMMON SERVICES......Page 90
SEEDBED WORKSHOPS......Page 91
Managed workspaces......Page 92
Overall categorization......Page 93
Development costs......Page 95
Operating costs......Page 97
Finance and management policy......Page 98
Incubator workspaces......Page 99
Innovation and technology centres......Page 100
Tenants point of view......Page 101
Financial viability......Page 102
7.6 Conclusion......Page 103
References......Page 104
Acknowledgements......Page 105
Part Three IMPLEMENTATION AT LOCAL LEVEL......Page 106
8.1 Introduction......Page 107
8.2 ‘Mainstream’ model......Page 109
8.3 ‘Radical-interventionist’ model......Page 110
Business development......Page 112
People development......Page 113
Legislative changes......Page 114
8.5 Trends in local economic and employment development......Page 115
8.6 Conclusion......Page 117
Acknowledgements......Page 118
9.1 Introduction......Page 119
9.2 Policy background......Page 124
Derelict Land Grant......Page 129
Urban Development Grant......Page 131
Urban Development Corporations......Page 136
Enterprise zones......Page 138
Urban Programme......Page 140
Regional Development Grants and Regional Selective Assistance......Page 143
Major projects—Section 8, Industrial Development Act, 1982......Page 146
9.4 Recent amendments to grants and incentives......Page 147
DTI—the department for enterprise......Page 148
Action for cities......Page 149
9.5 Conclusion......Page 152
References......Page 153
10.1 Introduction......Page 155
10.2 The relaxation of development control......Page 156
10.3 Simplified planning zones......Page 158
10.4 The Town and Country Planning (Use Classes) Order, 1987......Page 161
Notes......Page 162
Interpretation and implementation......Page 163
10.5 Negotiated agreements......Page 165
The trend towards negotiated solutions......Page 167
Planning gains in practice......Page 169
Advantages to the developer in negotiation......Page 171
Planning conditions......Page 173
Planning agreements......Page 175
10.7 Conclusion......Page 178
References......Page 179
The post-war period until the early 1970s......Page 180
The 1970s......Page 182
The 1980s......Page 187
11.3 Alternative methods of implementation......Page 195
Outright disposal......Page 196
Partnership agreements......Page 198
Partnership arrangements......Page 204
Direct development by local authorities......Page 207
References......Page 209
12.2 Capital expenditure and finance......Page 211
12.3 Central government control prior to 1981......Page 212
Methods of raising capital from internal sources free of central government control prior to 1981......Page 213
Raising capital from external sources free of central government control prior to 1981......Page 215
12.4 Central government control post-1981......Page 216
Prescribed expenditure financed by borrowing......Page 217
Capital receipts......Page 218
1. SPECIAL FUNDS AND REVENUE CONTRIBUTIONS......Page 219
2. LEASEBACKS......Page 220
4. DEFERRED PURCHASE OR COVENANT SCHEMES......Page 222
Non-Prescribed Expenditure without borrowing......Page 223
12.5 Changes to the system of control of capital expenditure......Page 225
Capital expenditure and finance after 1990......Page 227
Conclusion......Page 229
12.6 Legal powers to acquire, service, develop and dispose of land and to provide assistance to firms......Page 230
Acquisition of land......Page 231
Development and disposal......Page 233
Powers governing assistance to the private sector......Page 234
Development companies......Page 235
References......Page 237
Part Four DEVELOPMENT APPRAISAL......Page 239
13.2 Market research and the development industry......Page 240
13.3 Demand assessment......Page 242
13.4 Assessment of supply......Page 243
13.5 Specific location and site appraisal......Page 244
13.6 Financial appraisal—the basic approach......Page 245
13.7 Residual valuation......Page 247
Investment yield......Page 250
Building costs......Page 251
Professional fees......Page 252
Contingencies......Page 253
Short-term finance......Page 254
Letting and sale fees......Page 256
Residual site value and finance on site cost......Page 257
Capital profit assuming a sale on completion......Page 259
Rent Cover......Page 260
Annual profit assuming the scheme is retained as an investment......Page 261
13.10 Cashflow approach......Page 262
13.11 Sensitivity analysis......Page 267
13.12 Scenarios and forecasting......Page 270
References......Page 272
14.1 Introduction......Page 273
14.2 Four slice and side by side partnership agreements—a comparison......Page 274
Estimated costs......Page 276
Development yield......Page 277
Ground rent and equity sharing (or gearing)......Page 278
14.4 Participation clauses and four slice agreements......Page 279
14.5 Ground rent and premiums......Page 284
Revised ground rent calculation assuming a premium of £750000 payable at the commencement of development......Page 285
14.7 Two slice arrangements......Page 286
14.8 Lease and leaseback agreements......Page 288
14.9 Direct development by local authorities......Page 292
14.10 Conclusion......Page 295
References......Page 296
Index......Page 297