Adolphus

Capacity study

Site

  • Residential property on a large site
  • Site is 1.16 ha or 0.29 acre
  • Located 6 minutes from South Croydon train station, being 27 minutes to Victoria Station by train

Acquisition

Agreed a “promotional contract” with the owner, whereby we split the profit from the development after a given sale price is returned to the owner.

A simple example being where profits made over a strike price of £1m are split 50-50 between owner and Red Banksia, so that if a final sale of the developed site of £1.5m is achieved, £1.25m (£1m + £250k) will be paid to the owner and £250k will go to Red Banksia.

Financing

Under the promotional contract no upfront purchase for the asset is made, although Red Banksia incurs all costs associated with obtaining planning permission to develop the site. These costs are paid from Red Banksia retained earnings.

Planning

  • We are pursuing approval for an 18 unit apartment scheme
  • Our planning approach will be two staged, the first being to submit a pre-application to full planning with outline drawings for 17 unit scheme, plus 2 capacity studies for smaller schemes as contingency
  • Stage 2 will be to submit a full planning application on the most desirable scheme to the council