Site Specific Viability Assessments (VAs) for S106

LB Kensington & Chelsea EVA - Karrada

Outline

AspinallVerdi advised Karrada on an Economic Viability Assessment as part of a change of use application for a site at 1 Philbeach Gardens, LB Kensington & Chelsea. There were two scenarios proposed by the developer:

Scenario 1

• Retain as residential
• Refurbish existing building to provide 17 studio & 1 one-bedroom serviced apartment

Scenario 2

• Convert to an Hotel
• Refurbish existing building to provide 19 double rooms & 1 single room

Services Provided

AspinallVerdi provided the following services: 

• Completed in depth market assessment from online sources and local agents.
• Worked with client team to establish a reasonable ongoing management costs for both scenarios.
• Established robust assumptions to be applied in the development appraisals including, build costs and land value.
• Used Argus Developer to run a number of appraisals to understand the best viable use for the refurbishment of the building. Advised the client on the most viable scenario.
• Advised the client on the most viable scenario.

Outcome

Our study provided the developer with evidence to support a change of use application. Our report was used as evidence that a hotel was the most viable scenario for the site.

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