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Landmass Development & Joint Venture Proposal



INTRODUCTION


Landmass is a multi-discipline award winning, luxury property development and interior design company based in central London. Since being founded in 1998, we have established a reputation for creating innovative and timeless properties.

Our essential skill sets enable us to create the most high-end developments incorporating bespoke architecture and interior design tailored to the buyers’ requirements and aspirations.

“Our expertise in timeless understated design and our immaculate attention to detail matches the needs of the super prime sophisticated buyer”


OUR EXPERTISEACQUISITION EXPERTISE

Our Bespoke Property Sourcing service utilises Landmass’ extensive network of property owners and off-market agents to carefully source dilapidated properties with development potential.


DEVELOPMENT EXPERTISE

Our award winning in-house team of project managers and interior designers will professionally manage every stage of a development from sourcing to selling.


DESIGN EXPERTISE

Our design team has a renowned reputation for turning the negative into the positive. The maximisation of space and light is integral to our interior design philosophy, trademarked as ‘Volumetric Design’.


ACHIEVEMENTS

Landmass has completed 33 residential development projects in Central London. Another 19 private commission projects spearheaded by the Landmass Interior Design Team are completed or underway for a range of investors,

private clients and other developers.

Over the last 4 development projects, Landmass has had a +20% pro t on costs and a 50% return on equity. Landmass is now actively applying its expertise to multi-unit projects.


JOINT VENTURE OFFERINVESTMENT TIMELINE


Over the next 5 years we are looking to commence 10 new projects.


PROPOSED PROJECTS TIMELINE


We estimate an average project length of 24-36 months.


INVESTORS AND JOINT VENTURE REMUNERATION


The investor is entitled to the majority share of the pro t (rates and structure to be agreed).

Landmass will charge an acquisition fee to cover initial expenses, time, procurement and due diligence. We will also charge a development management fee based on a percentage of the construction cost. This will be paid over the duration of the project.


INVESTMENT CRITERIA


Geographic Focus: Prime Central London Asset Classes: Residential, Commercial with Redevelopment/Conversion

Potential Purchase Price: £10-40m Partner’s Equity Investment Amount: minimum 30% of Project Total CostPartner’s Ownership Percentage: up to 100% Target Returns: Opportunistic Development Horizon: 24 - 36 months per project Loan to Cost: 55 - 70%


EXPECTED RETURNS


Project Pro t On Cost: 20% Minimum Project Return On Equity: 50+%Minimum Investor IRR per project: 15%


DEAL PROCESS


We undertake a 3 stage pre-acquisition due diligence process. Once a deal is agreed we set up a joint venture special purpose vehicle company for each project. Landmass will be the minority shareholder which acts as the designated development manager and the investor will be the majority shareholder.



THREE STAGE DUE DILIGENCE PROCESS


STAGES OF DUE DILIGENCE

1. HIGH LEVEL

2. IN DEPTH

3. AGREED AND UNDER OFFER

Time Frame

With Project Architect

With Project Architect

Finalise With Architect

Planning

With Planning Consultant

Written summary

Planning Report

Construction Cost

With Project Architect

Consult Quantity Surveyor

Full cost analysis

Professional Fees

In house/Project Architect

With Project Architect

Finalise with Architect

Finance Costs

High level from a bank

Agree Heads of Terms

Get Bank Offer Letter

Sales Value (GDV)

Talk to local Agents

Written valuation by 2+ Agents

Chartered Valuation Report


PURCHASE, DEVELOPMENT & SALE PROCESS


Stage Zero

REQUIREMENTS, CRITERIA AND STRATEGY DEFINITION

Stage One

SITE IDENTIFICATION & DUE DILIGENCE

Stage Two

PURCHASE

Stage Three

DESIGN & PLANNING PERMISSION ACHIEVEMENT

Stage Four

PREPARATION OF CONSTRUCTION DOCUMENTATION & SELECTION OF CONTRACTOR

Stage Five

CONSTRUCTION & PRE-COMPLETION MARKETING

Stage Six

COMPLETION & PREPARATION FOR SALE

Stage Seven

POST COMPLETION MARKETING


PROCESS


0. REQUIREMENTS, CRITERIA AND STRATEGY DEFINITION

We will make sure that we understand our partners’ requirements and criteria to ensure our interests are aligned at all times. The most appropriate strategy will be implemented after having been agreed.


1. SITE IDENTIFICATION & DUE DILIGENCE

We will carry out extensive research to select a range of suitable properties. We undertake a comprehensive duediligence process to assess each project’s nancial viability. Realistic construction and professional costs are assessedby quantity surveyors and will be included in our appraisal to ensure transparency throughout the project. We will present the projects only once they have been thoroughly researched and where we have concluded that the return potential is in line with the agreed targets.


2. PURCHASE

Once the project is approved Landmass will execute the transaction. We have developed establishedrelationships with several directly relevant nancial institutions. We are happy to detail our own pastexperiences with regard to the formulation of investment strategies and the structure of transactions. We will present you with the options of an onshore or offshore limited company, and the use of a special purpose vehicle or individual names.


3. DESIGN & PLANNING PERMISSION ACHIEVEMENT

Landmass has an award winning in-house interior design team that focuses on intelligent design. We will produce a selection of proposed drawings to show how we can enhance the existing layout; with each design proposal we will also provide cost estimates and implications. There is a specific 8 stage Design Process Landmass implements for Development projects which can beprovided at a later stage.


PROCESS

4. PREPARATION OF CONSTRUCTION DOCUMENTATION AND SELECTION OF CONTRACTOR

When necessary we will attain the planning consents, rights of light and party wall agreements. We work closely with the local councils and will obtain the planning consent that maximises the value for the project.

Utilising our extensive network of contacts, we will put the construction documentation out to tender to a selection of trusted contractors before choosing the most suitable option.


5. CONSTRUCTION & PRE-COMPLETION MARKETING

Our team will be present throughout the construction process. We will oversee the project from start to nishto ensure that the development remains on time and on budget. Landmass will provide information on the project at regular intervals thoughout the process.


6. COMPLETION AND PREPARATION FOR SALE

Our in house team is able to purchase all of the furniture and ttings utilising our trade discount to ensure thebest rates throughout. We will manage any snagging or post-construction issues prior to completion.


7. POST-COMPLETION MARKETING

We have experience using various marketing strategies enabling successful presentation and sale ofthe nished developed property. Our expertise at staging will ensure that the appeal of your property isenhanced and the perceived value is increased.


AWARDS

Landmass has won ‘Best Development in London’ and ‘Best Interior Design in the United Kingdom’ at the inaugural International Property Awards for one of our finest projects, 21 Grosvenor Place,‘Best Interior Design UK’ and ‘Best Property Development in London’ in the Daily Mail Awards.

Landmass was also shortlisted for ‘Best Residential Property’ for our Belgrave Mews Development, in the Home Building and Renovating Awards by The Daily Telegraph



48 Beak Street, London - W1F 9RL

www.landmass.co.uk020 7439 8095


Landmass London Copyright Reserved © 2018 This document is property of Landmass London and may not be reproduced in any form without prior consent Disclaimer: The information contained in this document is based on estimates available at the time of enquiry and does not constitute a formal valuation and may not be relied upon for any purpose whatsoever other than as marketing advice.

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