How H&A decides which development opportunities to offer
We view scores of developments every month, of which we whittle
the choice to a few projects worth offering (see examples in Property
Investment Opportunities). For us, the key to a successful development
is ensuring there has been an adequate level of due diligence carried
out on the property, and that we are satisfied with its prospects.
To this end, here’s a very basic outline of what we do
before we offer you a development or property.
We judge the market. We verify the quality of a development dependent
on the specifications, as well as view a developer’s previous
projects and track record. We look at the location and make comparables.
We assess a project’s financial prospects. We factor in
whether a property would still rent and sell in a downturn, thus
ascertaining whether a property will make a lucrative investment
opportunity and beat the competition in the marketplace. For further
details see our Property Investing Criteria.
Once we have decided an investment project is worth the effort,
that’s when H&A’s first level of due diligence
We provide the developer with a Developer Checklist - a groaningly
detailed questionnaire that developers and/or agents must complete
if we are to market their project. This spreadsheet of information
is then signed off by the developer and commits him or her to
the details contained within it. This in turn is then signed off
by a Senior Property Consultant at H&A, a Finance Director,
a Site Engineer and a Property Lawyer who approve the project
and ensure that all the details required exist.
There is an inexhaustible diligence list for each development.
To give you an example, here are just a few of the questions we
expect developers or project promoters to answer. You’d
be surprised by how many of them do not have the answers to hand,
and therefore the number we can never offer, despite a great location.
Potentially negative consequences eighteen months down the line
are our biggest concern. Therefore, we will not suggest a development
unless we have this information, or we will clearly flag up the
items that await confirmation.
Click here if you would like a
detailed example of the kinds of diligence checks we carry out.