Unite go ahead with new 3rd party investment

There is a some good news in the student accommodation sector as Unite PLC sign up to a joint venture with the Bahrainian Oasis Capital Bank. They will fund the development of three new student accommodation properties in London with a completed value of £194m. For their part Unite will provide the pre-fabricated accommodation module at market value and manage the project for a 5% fee. After completion Unite will manage the schemes.

It’s a creative way to keep student development going forward and while the London schemes are very much in the elite segment of the market they will help to sustain the modern student accommodation model, further improving the living standards of residents.

The schemes are:

Lavington Street: a 230 bed development situated on the South Bank near the Tate Modern and in close proximity to Southwark underground station. Planning consent was granted in July 2008 and practical completion is scheduled for August 2010.

James Leicester Hall: a 573 bed development situated in an established student area adjacent to Caledonian Road underground station. The site was acquired in November 2008 with a detailed planning consent in place. Practical completion is scheduled for August 2010.

301 Holloway Road: a 316 bed development situated in Islington, adjacent to Holloway Road underground station and 200m from London Metropolitan University, North Campus. Planning consent was granted in August 2008, and practical completion is scheduled for August 201

5 planning pitfalls to avoid

All too often when we get carried away on a wave of enthusiasm for a new project but there are lots of traps for the unwary seeking a planning permission for their property.

These five common pitfalls are all too easy to fall into, especially when you are concentrating on running a business that earns the money to pay for your proposal.

Planning is largely procedural with an equal amount of changeable opinion thrown in but be prepared to commit time and resources if intend to succeed. No two proposals are ever the same but the pleasure given by a positive decision always feels fabulous.

1. Don’t delay, speak to the planning department early

Planners get a bad press, but it isn’t always deserved. Most local authorities will support their planning departments getting involved in pre-consultation for schemes because it saves time later. The trouble is that planners receive lots of calls about ideas that go nowhere, impossible or improbable uses and people who just want a letter to increase the value of their land.

You need to present yourself credibly to the planner. Find out who is dealing with your area and importantly make sure that you speak to the right officer for your project. Some officers have particular specialities, briefs or interests and finding the right one can make your dealings a pleasure. The wrong officer can lead to a whole world of heartacheMost will welcome a call and a meeting so be prepared to have a meaningful dialogue that you both benefit from.

3. Don’t do it all yourself

This goes without saying for most people but you would be amazed at the number of times that somebody turns up at the planning department without a clue about what they are doing.

Being a captain of the widget industry doesn’t help when plotting a route through the complexities of creating buildings that meet the myriad laws. policies, occupier requirements… and let’s be honest – opinion! Get yourself an architect, planning consultant, project manager or development consultant and let them deal with it.

3. Don’t assume that planning policy is what it seems

Planning policy – it’s a minefield. Laws are handed down from central government which are then interpreted and implemented by local authorities after interminable consultations, councillor meetings, votes and very occasionally catering for public opinion.

But even when it is published in the local plan / framework / policy it can change for seemingly bizarre reasons. It’s important to keep yourself up to speed with changes and again it’s back to speaking to the planning officials. Just be sure that you are speaking to the right ones because all too often in local authorities the right hand doesn’t know what the left is up to.

4. Don’t forget to speak to the natives

When we’re tied up in negotiations with officials it’s all too easy to forget that your development will affect somebody. It might be one neighbour or it might be the entire district but it’s guaranteed that somebody will be interested and the supporters rarely make themselves known so you might well have to face the wrath of the locals.

Consider holding a public meeting on neutral territory, be open about what you are doing. It’s difficult to pull the wool over peoples eyes when you are erecting a building. By engaging you have the opportunity to demonstrate that your scheme isn’t a blight and that it can bring real benefits to the area. Supporters are as rare as hens teeth but if you have some invite them along too.

Letters to neighbours or maybe a phone call to explain will give you great PR. Even if they don’t agree with your plans they can’t say that they didn’t know or get a chance to have their say. This kind of open consultation does make a difference when presenting your case to the planning committee.

You will probably be pleasantly surprised at the outcome of local consultations because most people are just worried about the unknown. By presenting the scheme properly and professionally you will probably allay many fears that would otherwise have turned into objections.

Councillors and MP’s can be helpful but don’t forget that they have an eye on the next election and they can change their mind right up to the time of the vote in the chamber. MP’s tend to go with the flow but take care, if you do decide to speak to councillors as you might find that they declare an interest and abstain from voting. That abstention might have been the casting vote in your favour.

5. Don’t underestimate the impact of delays

8 weeks -that’s the government’s stipulated period for determining planning applications. You might get lucky but if your project is of any size it’s probable that they will extend that period with your grudging permission.

That might not be the last of it though because it is quite possible that your application might take a year or more to determine so have a close look at what the effect will be in terms of time, money and the knock on problems caused by extended or unexpected delays.

Some planning departments are better than others but don’t underestimate their potential to make life a misery while you are going through the process. The costs of delays could affect your entire business and the bank might not hold open a finance offer.

Property confidence hits a new low

Not much happens in the summer but it does give people time to take stock. Grant Thornton have just published their latest International Business Report which among other things takes a snapshot of business confidence. It makes grim reading:

The level of optimism amongst UK privately held businesses (PHBs) has plunged by 57% in the past twelve months, taking the Grant Thornton International optimism/pessimism barometer to an all-time low.

The figures released today form part of Grant Thornton’s International Business Report (IBR), which canvassed 7,200 business across 36 countries. In the UK it sought the opinions of CEOs, MDs, Chairmen and senior executives of 600 large and medium business.

67% of UK PHBs have a slightly or very pessimistic outlook for the economy in 2009 compared to a mere 20% that declare any optimism. The UK’s result is the most pessimistic recorded since the survey began in 2003 and places it firmly in the bottom ten internationally.

The number of senior executives expressing pessimism was highest in construction and real estate companies (80%), retail (72%) and manufacturing (67%).

Not surprisingly construction and property is furthest into the doldrums with little to get excited about until at least the autumn. We can probably expect that September will see some relaxation of finance to business and consumers but it looks like being a long heard slog and it’s difficult to predict if there will be any recovery.

It’s quite likely that this is it for the foreseeable future so we had better get used to it.

China gives 50% – 70% subsidies to solar projects

China’s Ministry of Finance has unwrapped plans to subsidise half the cost of building independent solar-array projects in the country, including new power transmission and distribution systems to link projects to the grid.
The subsidy will stretch to 70% for solar projects in remote regions with no current power supply, as the country continues searching for ways to create demand for its domestic PV industry. In order to qualify, solar projects must be built within one year, and the Chinese government says it seeks to build 500 megawatts (MW) of capacity over the next three years. Initially it will put a cap of 20MW on the subsidies given to projects in any one province in order to ensure the industry is spread throughout the country. Earlier this year the Ministry of Finance gave the Chinese photovoltaics industry a shot in the arm when it announced a feed-in tariff of 20 yuan ($2.93) per watt for building-integrated projects.

What an airbrained idea!

This Shorts 360 small commuter aeroplane has been saved from scrapping and put to use as a classroom at Kingsland Primary School in Stoke.

Genius!