Advising the University on 2.3 hectre of land investment

Project title:
Advising the University their 2.3 hectres of land investment
Introduction

This coursework assignment is to explore how land
values are derived. The project will be exploring the relationship between economic theory and
practice in this field.

Scenario
A client of your consultancy firm is the University which has recently spent heavily on developing a new building. In order to offset some of the costs, the University is intending to sell a piece of land outlined on the attached plans. The land is on the Southwood Campus. The Southwood University has made inquiries with the Borough and the latter has agreed in principle that the
site could be developed for housing. The University is now seeking your advice on what the land would be worth if sold to a housing developer and you
have agreed to provide that advice in the form of a short report.
Method: I’m to produce a report of no longer than 1,000words. There will be appendices which are excluded from the word count.
I include the table of the residual format i did below to help in writing the report and the price of the house was picked from property called ‘zoopla”

Southwood Site Housing Development
Residual Valuation Format for Houses
Gross Development Value (GDV)
House Type Size m2 No. Unit Value (�) Totals �
2 Bed Houses – Market Sales 0 –
3 Bed Houses – Market Sales 116 10 450,000 4,500,000
4 Bed Houses – Market Sales 130 35 600,000 21,000,000
5 Bed Houses – Market Sales 146 6 695,000 4,170,000
2 Bed Houses – Affordable 0 0 –
3 Bed Houses – Affordable 116 4 337,500 1,350,000
4 Bed Houses – Affordable 130 8 450,000 3,600,000
5 Bed Houses – Affordable 146 1 521,250 521,250
Totals 64 35,141,250

Development Costs
Construction Costs Gross floorspace m2 Cost � per m2 Totals �
8,236 1,161 9,561,996

Ancillaries @ 8% of construction costs 8% 764,960
New sub total 10,326,956

Professional fees @ 12% of sub total 12% 1,239,235
New sub total 11,566,191

Contingencies @ 5% of sub total 5% 578,310
New sub total 12,144,501

Marketing and sales fees @ 2% of GDV 2% 702,825
New sub total 12,847,326

Finance @ 9% over half the build period 9% 578,130
New sub total 13,425,456

Profit @ 15% of GDV 15% 5,271,188
Total Development Costs: 18,696,644

Site value in 1 year = GDV – Total Costs = 16,444,606

Present Value (PV) of �1 in 1 year @ 9% 0.9174 15,086,282

Site acquisition costs and stamp duty @ 5% 718,394

Site Value Today �14,367,888

Notes:
1. The figures currently shown in the grey cells are an illustrate example. Overwrite them
with the figures arising from your own scheme.

I copied it from excel and if you need the excel table i can attached it. thanks