Critically evaluate complex commercial real estate scenarios to support and develop evidence-based, purposeful conclusions for a range of professional stakeholders.
Module name Planning and Development
- Module code PLN7PLD Assignment 2 Level 7 Programme start month and year March 2022 Assignment
- due time and date 10.00 a.m. (UK Time) Monday 25 July 2022 Pass mark 50 Word count* 3,000 Assessment weighting 60% *for further information see the Word count and overwriting section.
Submission details For this assignment, you are required to submit:
- a report as a single Word (or similar) or PDF file. Please refer to the ‘Assessment preparation’ area of the module for further guidance. Submission of assignments All assignments must be submitted online in the module area of the VLE.
- The assignment submission link opens 21 days before the due date. Please refer to the information provided in the ‘Assessment preparation’ week for general submission guidance.
NOTE: Postal submissions will not be accepted.
Learning outcomes Code Description
- LO1 Critically evaluate complex commercial real estate scenarios to support and develop evidence-based, purposeful conclusions for a range of professional stakeholders.
- LO2 Identify and analyse existing and emerging planning and development policies and practices, synthesising information to communicate effective explanations and sustained arguments.
- LO3 Organise subject-specific knowledge, theory, and practice to create informed and justified decisions concerning complex planning and development situations.
- LO4 Critically appraise incomplete data and apply appropriate techniques and analysis to develop solutions to planning and development problems. Scenario You are a graduate surveyor at the multi-disciplinary practice Real Estate Advisory plc (REA), in the planning and development department.
REA have been instructed to advise Hamilton Homes as to what they should bid to acquire a site with planning consent for residential development. The site is known as Clay Furrows, the details of which are available in Appendix
- One of the office juniors has carried out an appraisal for this purpose and your boss is concerned that it contains some misapplications and mistakes. Accordingly, your boss has asked you to double check the calculation, which is available in Appendix
- and to provide an annotated commentary highlighting anything you believe to be an error, why it might be incorrect and to suggest a means of correcting it. Your boss is also instructed on a commercial scheme known as Relay Point and has produced a viability valuation for this scheme, which is attached as Appendix 3. Your boss would like you to carry out a sensitivity test to determine the impact of two possible scenarios so that he can provide appropriate advice and recommendations to the client. Your boss feels that the surveyors in the department need to improve and enhance their knowledge and understanding of the residual approach and has asked you to provide a briefing paper to highlight the criticisms and limitations of the residual and what can be done to enhance their accuracy. Task Write a report for your boss that: 1. highlights the errors in the appraisal of the Clay Furrows development; 2. provides a scenario test of Relay Point with appropriate advice; and
- contains a briefing paper that provides the required critique of the residual, setting out the limitations of the method and the means of improving its accuracy. An executive summary is not required.
Using the scheme details in Appendix 1 and the residual provided in Appendix 2 (an Excel version of which is available on the VLE – see Assignment 2 week), identify the possible errors in the appraisal and provide an appropriately cross-referenced commentary explaining for every mistake identified why it is an error and how it can be corrected. (approximate word count: 750 words)
Using the Relay Point residual in Appendix 3, (an Excel version of which is available on the VLE – see Assignment 2 week) model the two following scenarios and provide advice for your firm’s client as to what might be done to mitigate against any adverse impact these scenarios might have. a. Scenario A – a 5% fall in rental value, a 7% increase in build costs and an increased void period of 6 months. b. Scenario B – a 0.75% fall in yield and an increase in lending rates of one whole percentage point and a delay after site purchase of 3 months before construction could commence. (approximate word count: 750 words)
As part of your report, provide a Briefing Paper for the surveyors in your department that not only outlines the criticisms and limitations of the Residual Method, but which also highlights what can be done to improve the accuracy of Residual valuations. (approximate word count: 1,500 words)
Reference list and bibliography
You should include a reference list with a minimum of ten separate relevant and appropriate sources that you have written about and cited within your work.
A bibliography of uncited sources is not required.
Further information to support you with this assignment is available within the study materials for this module on the UCEM VLE. If you have any questions about this assignment, please contact your Module Team using the Assignment forum in the relevant Assessment preparation week on the VLE.
Marking guidance for this activity
- This guidance is designed to help you to do as well as possible in your assessment by explaining how the person marking your work will be judging it.
- Your work will be assessed in relation to the requirements set out in the assessment criteria marking guide at the end of this document and the grading guidance section below.
- It is recommended that you read both of these sections before starting your assessment to learn what will help you to achieve the highest marks.
- Once you have finished you should review the assessment before submitting it, to check you have done what is required to achieve the highest marks.
- When you receive your feedback from your tutor you should clearly be able to see which categories you gained marks in and, where relevant, recommendations about how to improve your performance going forward.
This grading guidance section explains in more detail what a submission for this assessment should include in order to achieve a mark at the threshold, good and excellent standards.
You will have met the criteria for Threshold and demonstrated some knowledge of residual calculation process by the identification of some of the errors it contains. You will have attempted the scenario test but there may be some errors of process and of mathematical computation, but the working will be broadly correct. The briefing note will evidence some attempt at critical analysis in order to reach reasoned conclusions. Recommendations may be missing or limited. Referencing will be sufficiently complete.
In terms of the marking criterion:
Communication, marking guide criterion 1 – you will have written your submission in an adequate report format, with only minor errors in spelling and grammar
Knowledge and understanding, marking guide criterion 2 – the knowledge and understanding demonstrated in the report will be broadly correct, although there may be some errors of fact or interpretation.
Use and application of source materials, marking guide criterion 3 – your report will contain at least ten separate and appropriate sources, that have been satisfactorily applied to support your statements. These sources will have been cited and referenced consistently but referencing may not accurately follow The UCEM Guide to Referencing and Citation.
Critical analysis, marking guide criterion 4 – this is a hallmark of postgraduate study, and a threshold report will be characterised by an adequate depth of analysis and application of analysis to the scenario facts. As appropriate, a basic, but sustained argument will be presented throughout the tasks.
Insight, interpretation and evaluation, marking guide criterion 5 – the threshold level for this criterion will be demonstrated in the report overall, as clear and appropriate reasoning will have underpinned the discussion throughout all three tasks. Good You will have met the criteria for Threshold although the two calculation tasks will demonstrate a greater attention to detail and accuracy in both process and mathematical computation. The briefing note will explain relevant issues logically, with a sound level of critical analysis, and present reasoned conclusions. A sound understanding of relevant literature, including material beyond the prescribed reading, will be demonstrated but may not be original. Recommendations will be presented at a higher level than a threshold pass but may not be completely supported by the material presented. Your report will demonstrate a higher level of analysis and evaluation. Referencing will be competent and consistent.
In terms of the marking criterion:
Communication, marking guide criterion 1 – there may be some descriptive material, but this will be extended into analysis with (albeit limited) discussion of the relevance of the material (exploring the impact of additional professional body guidance, for example). The report will be presented to a professional standard, with no missing elements and there will be very few errors in grammar, syntax or spelling.
Knowledge and understanding, marking guide criterion 2 – a competent level of knowledge and understanding will be demonstrated in the report.
Use and application of source materials, marking guide criterion 3 – references and citations will more closely follow The UCEM Guide to Referencing and Citation. Sources will demonstrate some independent research, and the application of sources will be more effective than the threshold pass (presenting alternative views, for example).
Critical analysis, marking guide criterion 4 – a sustained, well supported, argument will be presented throughout the report as appropriate to the tasks.
Insight, interpretation and evaluation, marking guide criterion 5 – the ‘good’ level for this criterion will be demonstrated in the report overall, as competent evidence-backed reasoning will underpin the discussion. Excellent You will have met the criteria for Good and will additionally have demonstrated a clear and accurate understanding of both the residual calculation and sensitivity scenario test. The briefing note will evidence outstanding knowledge of the issues discussed. These will have been explained and critically and logically applied to reach reasoned conclusions with justified arguments, demonstrating a sophisticated and rigorous level of analysis and evaluation. Overall, the report’s drafting will be to a high professional standard, offering clear recommendations based on the analyses provided. Referencing will be comprehensive, accurate and complete. In terms of the marking criterion:
Communication, marking guide criterion 1 – your report will be articulate and presented to a high professional standard, with a clear and logical flow throughout. There will be no grammatical or spelling errors.
Knowledge and understanding, marking guide criterion 2 – an excellent level of knowledge and understanding will be demonstrated in the report.
Use and application of source materials, marking guide criterion 3 – selection and application of source materials will be insightful and perceptive, further demonstrating an in-depth understanding of issues in this topic area. Your citations and references will be comprehensive and will accurately follow The UCEM Guide to Referencing and Citation.
Critical analysis, marking guide criterion 4 – analysis of your sources will be rigorous and robust. Alternative viewpoints will be presented and synthesised, with clear identification of any areas of conflict or disagreement.
Insight, interpretation and evaluation, marking guide criterion 5 – excellent insight, interpretation and evaluation will be demonstrated throughout.
Word count and overwriting
Exceeding 10% of the stated word count may limit the marks allocated for communication (see assessment criteria marking guide below).
The following table outlines the inclusions and exclusions in the word count of the most common features of assessed pieces of work. Not all these features may be relevant to your assignment; please refer to the assignment task for confirmation of which features are required.
The total number of words used must be stated on the first page of your assessment.
Avoiding academic misconduct
Plagiarising someone else’s work, whether copying from the internet, UCEM study materials, a textbook, a fellow student or elsewhere, is a serious offence. Before you submit your work for assessment, you must check it to ensure that you have fully cited within the text all the sources of information you have used and that all your sources are listed in a reference section at the end of your submission. Quoted text must not be excessive in length. You will find guidance on correct citing and referencing in The UCEM Guide to Referencing and Citation in Section 6 of the e-Library on the VLE.
Be aware that your work will be checked using text-matching software.
The ‘Turnitin’ software is as much for your benefit as ours at UCEM. You can use it to check that all your citations have a matching reference, and review any highlighted text that may not be original and requires a reference.
A high text-matching result could indicate plagiarism. If plagiarism is identified, this could result in a penalty ranging from a loss of marks to exclusion from your programme.
Note: Please use the assignment referencing link to check the originality of your work before submitting it.
Appendix 1 – Data Sheet for the proposed Clay Furrows Development
- Site area: 0.6 ha
- Site status: Greenfield (grazing land)
- Planning: Full Planning permission for the erection of 15 dwellings and associated garages, car ports and car parking together with one new vehicular access point, pedestrian and cycle access points and ancillary development.
Proposed Development Detail: Plot Description Size GIA (sq.m.) Garage/Car port Car Spaces Sale Price 1 1/s 1 bed terr 47.46 - 1 no. each £170,000 2,3 2/s 2 bed terr 76.00 - 2 no. each £275,000 4 2/s 3 bed det 103.20 1 no. garage £365,000 5 2/s 4 bed det 162.96 1 no. garage £610,000 6,7,8 2/s 2 bed terr 76.20 1 no. car port each 1 no. each £285,000 9 2/s 3 bed det 139.40 1 no. garage £525,000 10 2/s 4 bed det 165.60 1 no. garage £625,000 11,12, 2/s 3 bed semi 108.00 1 no. garage each £375,000 13,14,15 2/s 2 bed terr 78.00 - 2 no. each £275,000 Site preparation: The site preparation, drainage and roads to wearing course will cost £150,000. Build Costs: BCIS build costs have been recommended as follows.
For Single Storey £1,500 per sq. m. for Terraced and Semi-detached units £1,350 per sq. m. and for Detached units £1,300 per sq. m. A budget figure of £16,000 for garages and £7,000 for car ports is suggested. Landscaping costs: Hard and soft landscaping costs to include car spaces are to be £56 per sq. m.
The client has suggested that these costs be spread evenly over the whole development period. Contingency on Build costs: The client requires a 3% contingency on build costs to be included. Professional Fees: All professional fees will not exceed 12% of the Build Costs excluding VAT and will be payable monthly during the development. Development phasing and timeline: The site preparation, drainage and roads to wearing course will take three months to complete after which the construction will begin in three phases of 6 months each.
Phase 1 will build out plots 1-5, phase 2 plots 6–10 and phase 3 plots 11–15. Sales schedule: Sales are expected to be achieved as follows: Phase 1 Phase 2 Phase 3 Plot no. Month sold Plot no. Month sold Plot no. Month sold 1, 2, 3 9 6,7,8 15 11,12 21 4 10 9 16 13 22 5 11 10 17 14 23 15 24 Finance: A fixed interest rate has been negotiated at the rate of 7% per annum. Community Infrastructure Levy: CIL is payable in respect of the whole development within 3 months of the commencement of development and is currently set at the rate of £82.50 per sq. m.
s.106 Contributions: The LPA require a contribution towards off site highways improvements and the provision of an extended cycle lane and associated signage. The sum of £115,000 is required by the end of the first phase of construction. Developer’s Profit: The developer requires a profit on GDV of 15% which they intend to take out of the revenue from property sales. Agent’s fees: For the sale of the completed houses, the sale agent requires a fee of 1.75% of the sale price excluding VAT.