We advised the London Borough of Hammersmith & Fulham on the viability of a proposed residential scheme for 1,465 residential apartments, including 115 extra-care units, 65 DMS and 102 social rented (affordable housing). The site, measuring 4.28 hectares, was acquired by St James (Berkeley Group), having previously operated as several Marks & Spencer warehouse buildings.
We were instructed to review the Financial Viability Assessment (FVA) with regard to the provision of Affordable Housing, which accompanied the Planning Application, and report back to the Council.
The site is located within the White City Opportunity Area and the site is expected to deliver a substantial number of new homes and jobs through comprehensive regeneration. The Council required a full review of the FVA, submitted by the applicant’s agents, and also required the input of a quantity surveyor, whom we engaged on behalf of the Council. We were asked to test a comprehensive set of data for the affordable housing element and asked to test on-site provision and subsequently an off-site payment in lieu.
We negotiated with St. James, who submitted revisions to their initial appraisal, which resulted in a revised base offer of 279 affordable units plus a commuted payment to our client of £1.5m by the end of our review. We understand the Council further negotiated with St. James regarding a sum to cover additional affordable housing in lieu of a review mechanism.
This project involved:
- Working alongside a quantity surveyor.
- Liaising closely with Berkley Group, sub-consultants and the Council.
- Working to a tight programme to manage inputs on appraisals and negotiations.
- Ensuring a fair result to all parties including 20% affordable homes plus substantial payment in lieu of review mechanism.