Posted on April 28, 2015

AspinallVerdi, together with IBI and BWA cost consultants, has completed an important feasibility study into private residential sector (PRS) development in Stoke-on-Trent.  The team was appointed in October 2014 and has carried out preliminary design modelling and market research into the feasibility of developing PRS on four significant Council owned sites in Stoke, namely – Bridgewater, Smithfields, Pyenest Street and Spode Works.

As part of this feasibility study we carried out detailed consultation with Institutional Investors in order to understand their investment requirements and to validate our financial appraisal assumptions.  We developed detailed cashflow models of the various schemes in order to test specific assumptions including growth and Net Operating Income (NOI).

There is a clear appetite for developers and investors to engage in the PRS sector in the regions notwithstanding the challenging economic viability.   As part of our report we identified steps to improve viability and set out an action plan to bring forward the sites for development as ‘proof of concept’ to establish new benchmark costs and values as a basis for future developments.