the property development process: a scottish case peter fisher, northumbria university, uk
TRANSCRIPT
The property The property development process: development process:
a Scottish casea Scottish case
Peter Fisher, Northumbria Peter Fisher, Northumbria University, UKUniversity, UK
Trends
Actors
Site
Economy
Government
Property markets
Events
““What processes, organisations and people significantly What processes, organisations and people significantly influenced how this site evolved?”influenced how this site evolved?”
• 7 elements, 51 sub-elements, 284 defined web-links7 elements, 51 sub-elements, 284 defined web-links
• Land market Land market Severe shortage of large central sites Planned re-sale of the Surgical Building
• Letting market : officesLetting market : offices Shortage of really modern prime stock in city centre Doubts over peripheral location
• Letting market : retail + leisure Letting market : retail + leisure Convenience stores, restaurants, cafes, bars Demand contingent on office workers and residents
• Investment market : commercial Investment market : commercial Economy: Cycles. ‘Asset price bubble’ 2006/7
• Residential marketResidential market Economy: investment. Strong sales 2006/07 ‘Buy to let
bubble’
Property Property markets markets
Government Government • Government Agency; Lothian Government Agency; Lothian
University Hospitals NHS TrustUniversity Hospitals NHS Trust Move to new hospital site 2003 Official aim = highest sale price However, unofficial motives
• Local Planning Authority; City of Local Planning Authority; City of Edinburgh Council Edinburgh Council World Heritage Site City Centre Local Plan 1997 Development Brief 1998
‘‘Actors’ Actors’
• Private sector firms Private sector firms • Role of Individuals?Role of Individuals?
Actor : master Actor : master planner & architectplanner & architect
• Event : Land acquisition Event : Land acquisition Need to win the competition International reputation, developer liked Nimes
• Trend : Environment .... Trend : Environment .... ‘Cool Britannia‘‘Cool Britannia‘ ‘Building in context’ of listed buildings Modernist design ousts contextual
• Property markets : lettingProperty markets : letting Forster reputation for design of high specification offices A first for central Edinburgh = ‘unique selling point’
• Government : Planning AuthorityGovernment : Planning Authority Forster reputation/ influence over ‘heart-of-the-site’ issue
Event: Site sale / acquisitionEvent: Site sale / acquisition• Government : AgencyGovernment : Agency
Lothian University Hospitals NHS Trust Negotiations with New Lauriston Ltd
• Event : Development Competition Event : Development Competition Long list of 10, initial bids, Autumn 2000 Short list of 3, final bids, Spring 2001
• Actor : Developer (Joint venture)Actor : Developer (Joint venture) Southside Capital, preferred developer, June 2001 JV = Taylor Woodrow, Bank of Scotland, Kilmartin
• Event : Site acquisition 2003Event : Site acquisition 2003 £30m unconditional price plus ‘Overage’ clauses covering sales prices and planning Development Agreement
TRENDSe.g.
Technology, politics
ACTORSDeveloper(s), Bank,
Other bidders, Consultants
SITEe.g. Location,
listed buildings
ECONOMYe.g. Cycles : Dot
Com
GOVERNMENT e.g. NHS Trust,
Planning Authority
PROPERTY MARKETS e.g. Land
(hotel) , Letting (offices),
Investment (residential)
EVENTSe.g. Site
acquisition,Design,
Feasibility
Event : Site sale /
acquisition
Events: design, feasibility, planning 2002Events: design, feasibility, planning 2002
Surgical building
Medical ward blocks
Red Home
ENT
Ophthalmology
Event : Construction: started July 2005Event : Construction: started July 2005
2006, from the 2006, from the south east south east
TRENDSe.g. Social: (city living)
ACTORSe.g. Forster
Partners,Gladedale + overage
buy out
SITEe.g. Physical
Characteristics (listed buildings)
ECONOMYe.g. Cycles :
(Tourism after 9/11)
GOVERNMENTPlanning Authority + Historic Scotland
PROPERTY MARKETS
e.g. Land: (hotel problem)
Investment : residential boom
EVENTSe.g. Design
(‘heart’ issue) ,Feasibility
Events : design,
feasibility, planning
2005
and and finally ... finally ...
• The previous commercial development modelThe previous commercial development model Good fit , yet adaptations needed for residential uses
• ‘‘Actors’ v ‘Government’Actors’ v ‘Government’ Each interprets the same Site, Trends, Economy & Property
Markets according to their role(s)• Organisations and individualsOrganisations and individuals
Both made a real difference in this case• Mixed-use ‘place making’Mixed-use ‘place making’
24 / 7 inter-dependence of activities + critical mass + good design + intelligent management = vibrancy = profit
• Heritage conservation Heritage conservation Can enhance profitability, yet they demolished five listed
buildings• One case study ...... so what ? One case study ...... so what ?
Applying, adapting and refining the model A literature of detailed case studies