Dear Mr. Woods
I am interested in developing the old post office.
What would I need to do?
Martin Hamblen
Hello Mr Hamblen
Thank you for your email.
Before progressing I would need some background information on you/your company, as well as details of your track record of similar developments.
Once I have the information to hand, I think that the best way forward would be a meeting with me and my planning colleagues to discuss your proposals.
I look forward to hearing from you.
Kind regards
Derek
Derek Woods
Head of Property Services
Hello Mr. Woods
My development model is based on low-rent occupancy.
For example (these are rough figures) – 100 units @ £100 per month x 12 months = £120, 000
The building has been empty since 2002, although the council have owned since 2005 (my understanding).
In ten years this model would have made 1.2 million pounds (£840, 000 since council ownership).
I am aware the council are trying to do something but in the meantime my low-rent occupancy model is a means of making some money.
I look forward to meeting you and your planning colleagues to discuss my proposals.
Thank you
Martin Hamblen
Hello Mr Hamblen
Thank you for your email. I understand the model, but there are a number of complicating factors.
The first and foremost is that the building requires substantial works in order to make it fit for occupation, even for a low cost model. The investment required is substantially more than the 10 year return you have calculated. We do not have the money for this investment.
The second factor is the building was purchased with NWDA money, and certain remain restrictions. If we bring even part back into use then we are required to repay the whole of the property’s value. We therefore need to find someone who is willing to purchase the whole from the outset. We would only sell if we can be certain that the purchaser would commence a substantial scheme of investment.
For these reasons I would ask again for details of your experience in dealing with similar developments before arranging a meeting.
I look forward to hearing from you.
Kind regards
Derek
Derek Woods
Head of Property Services