Response required by midday 5.00 pm on Tuesday 10th April

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Response to invitation to participate in a Mini Competition

Panel: Property

Project: Accelerated Land Disposal Programme Sites - Telford

Please respond on this pro-forma by no later than 5.00 pm on Tuesday 10th April

Date: 10th April 2012

To: From: HCA GVA 3 Birmingham B1 2JB

Proposal

GVA fully recognise the importance of the Accelerated Land Disposal (ALD) programme in the delivery of housing and the key role that HCA has to play in this respect. It is also recognised that the appointed property adviser’s role is fundamental in achieving the HCA’s stated objective of delivering a physical start on site prior to March 2015 and ensuring that best value is secured in the disposal of public assets.

GVA would lead the programme across the six sites, working closely with the HCA personnel and coordinating input from other consultants as necessary.

Tender Submission 10th April 12 (2)

The significant resource of the GVA Birmingham Regional office would be called upon, together with the wider national GVA resource as necessary. Given the nature of the project and the services required, as detailed within the tender invitation, a core multidisciplinary team would be assembled from our Land & Development and Planning, Development & Regeneration departments. This team would be set up to work closely with HCA personnel, building on working relationships which we believe already exist.

An early inception meeting would be arranged for all parties to familiarise themselves with project and site specific issues. We would define and agree a project timeframe from the outset, clearly identifying the various elements of the instruction (i.e. concluding Section 106 negotiations and securing planning permissions where needed). Significant milestones would be identified with a clear strategy formalised for delivering important tasks and activities relating to each element. This would also enable GVA to identify and put in place all required resources at an early stage to ensure a high level of service delivery.

Overall responsibility for managing the instruction would be taken by Director within the Birmingham based Land & Development Team. is experienced in taking the lead on disposal projects of this type, working closely with the client’s own management team.

While the planning and disposal elements represent distinct activities they are very much interconnected in achieving the objectives identified. Due to the large agency role the project would be lead by Overall responsibility for the planning inputs would be taken by Director in our Planning, Development & Regeneration team.

Method Statement and Programme

It is anticipated that the appointment of the consultant and initial inception meeting would take place prior to the end of April 2012. Given the deadline end of March 2015 for physical starts on site to occur, this leaves a circa 35 month timeframe within which to secure the project objectives.

In this respect, from the summary provided it is recognised that the six sites are at different stages within the planning process and in turn, at different stages of readiness for the commencement of marketing. It is also recognised that the different sites represent distinctly different opportunities. These generally fall into two categories, being the smaller less valuable opportunities (up to 20 dwelling capacity) and the larger more valuable opportunities (75 to 175 dwelling capacity). It is therefore considered that this will result in a variation in the individual disposal timeframes across the six sites and a variation in market appeal. For example, the two smaller sites at Pool Hill Road are unlikely to be of interest to the larger national/PLC house builders.

In terms of priority, we see the required activities across all six sites as running concurrently and sufficient resource would be made available within GVA to ensure this would be the case. This would utilise the different skills within the Land and Development Teams and Planning, Development and Regeneration (PDR) teams as necessary.

Sites C and D Pool Hill Road already have extant permissions in place (originally secured by us), so we anticipate that planning input on them will be minimal. Depending on the availability of additional background information, pre-marketing activities could commence immediately with a view to placing them on the market as soon as possible. Principal activities across these two

Tender Submission 10th April 12 (2) sites would be agency related.

In respect of Donnington H Phase 3, we prepared the planning application for the site and are familiar with the outstanding matters that need to be completed before the legal agreement is signed. Our PDR team would conclude the agreement and then provide the necessary input to the Development Briefs and valuation exercises. Planning and pre-marketing activities would run concurrently following the project inception. The conclusion of the Section 106 Agreement could well require input from both teams depending on whether there is scope to run a site specific viability negotiation. In this respect, the Land and Development team is well versed in running such negotiations in liaison with colleagues in our PDR department. By way of example Andrew Moss, who would be the project lead, recently assisted with the negotiations on behalf of the HCA in respect of the 800 dwelling Ransome Road, Northampton site. GVA also developed the HCA EAT appraisal tool and has, more recently, acted for the RICS in producing guidance to the industry on viability matters.

Pre-marketing activities would be geared to the commencement of marketing following the issue of the formal planning approval. This would be with a view to achieving an unconditional sale/exchange as close as possible to the expiry of the Judicial Review (JR) period. The JR period would provide sufficient time for an 8 week marketing process, tender analysis, best and final bids (if required), the agreement and issue of Heads of Terms and commencement of the formal legal process.

The Cuckoo Oak Hotel, Park Road Malinslee and Hadley Park West sites are all at the same stage, in planning terms. Each requires the preparation, submission and management of applications for outline planning permission and the subsequent completion of S.106 agreement. Initial activities on these sites would therefore be lead by our Planning, Development and Regeneration department, assisted by agency personnel as necessary. The three broad planning objectives are;

• Management of a team of the sub-consultants required to provide all technical inputs to the planning applications. This role would include responsibility for project programme and the timely submission of applications. • Preparation of all planning inputs, including negotiation of an S.106 agreement. • Reporting on progress to HCA staff.

A specific timeframe for the planning activities across these three sites would be defined. However, at this stage it is anticipated that it will take a maximum of circa 38 weeks (see below) to secure a formal consent, including the conclusion of Section 106 negotiations. In this respect, we identify the different phases of the planning activity as follows:

Task Activity Timeframe Date

1) Inception Phase Project inception, including the receipt and 3 Weeks End of April to review of existing information. middle of May

Setting programmes for the preparation, submission, management and determination of the applications.

Scoping discussions with local planning authority officers in order to clarify the

Tender Submission 10th April 12 (2) information required in support of the applications.

Coordination (and if appropriate instruction) of sub consultants to prepare and upgrade existing information.

2) Preparation Management of subconsultants and review 14 weeks Middle of May phase of their outputs where appropriate. to end of August Preparation of Planning Statement in support of applications. This will include a thorough review of Development Plan Policy, Government guidance and other material considerations. The statement will also need to build a case in support of the “loss” of employment land where appropriate.

Completion of planning application forms and associated certificates.

Clarify with the LPA whether any of the applications will need to be accompanied by an Environmental Statement. This is considered to be unlikely, but requires clarification.

3) Submission Collation of outputs from sub-consultants 13 Weeks September to Phase and submission of planning applications. December 2012

Negotiation of the heads of terms of an S.106 agreement during the determination period.

Management of the planning application until determination including, where relevant, the preparation / coordination of the preparation of additional supporting information and attendance / presentation at Planning Committee if necessary.

4) Section 106 / Finalisation of S.106 and briefing of lawyers 8 Weeks December to Legal Phase as required. February 2013

Circulation of outline planning permissions.

Total 38 Weeks February 2013

We will use every endeavour to progress work on the planning obligations during the determination of the applications. However, experience suggests that this is not always possible. We suggest that completing the legal agreements and securing outline planning permission should take no longer than two months after the Council’s resolution to grant permission. However, the process may take longer.

Tender Submission 10th April 12 (2)

It should also be noted that there are numerous opportunities to shorten the timescales indicated above and we would use every endeavour to do so throughout the planning process. For example, the “Preparation Phase” assumes that the work of other consultants (on, for example ground conditions, design etc.) would not commence until the Agency / Planning consultant is in place. This may not be the case. Furthermore, the estimated amount of time for the Preparation Phase assumes that ground reports (which commonly take about ten weeks to prepare) will bee needed on all sites. This may not be the case.

In respect of the marketing of the individual sites we identify the following indicative programme:

Task Activity Timeframe Date

1) Initial Due This stage would enable the GVA Agency 4 Weeks End of April to Diligence and team to get up to speed, following formal end of May Recommendations appointment. This would include 2012 assimilation of the background/site specific detail Detailed site inspections etc. It would culminate in the production of a Strategic Marketing Report covering all sites with detailed marketing recommendations to HCA. This would include confirmation of the required marketing budget and contents of the Technical and Legal Pack etc

2) Pre-Marketing Due This stage would centre around all 4 Weeks (as End of May to Diligence required due diligence related to the may be end of June active marketing stage. The Development required) 201 Brief and supporting Technical and Legal detail would be brought together at this stage, one of the most important elements of the disposal process. This stage would also be used to fill any gaps in the information to be made available. Sales particulars, adverts, board, mailshot and web site would be produced. Viewing days would be fixed. Scoring matrix/bid assessment criteria agreed.

3) Marketing Launch advertising and mailshot to GVA 8 Weeks End of June to Residential and Developer database end of August would be undertaken. Formal viewing 2012 days would be undertaken. GVA would deal with all enquiries/queries. This stage would culminate in the informal tender deadline. Parties would be given the opportunity to bid for individual sites or a number of sites depending on how the phasing of disposals is structured.

4) Assessment of The bids would be received and opened 2 Weeks End of August Bids, interviews in accordance with any required tender to mid

Tender Submission 10th April 12 (2) and procedure. Assessment would be September Recommendations undertaken by a panel made up of the 2012 GVA/HCA project personnel and be centred on the agreed assessment criteria/scoring matrices. Parties would be asked to attend an interview and/or clarify tender details as may be necessary. As part of the marketing process parties would be advised to ensure availability for interviews. If required interviews would take a structured approach with consistent questions to enable easier comparison. This would follow through from the structured approach to the initial assessment of bids. This stage would culminate in recommendations being made by GVA.

5) Potential Best and This would give the top bidders an 2 Weeks Mid to end of Final Bids and final opportunity to submit enhanced bids if September Recommendations considered necessary. It would be 2012 followed by a further assessment and final recommendations process. Parties would be encouraged to offer added value through overage, coverage, enhanced payment terms etc as appropriate.

6) Agreement and Acceptance of bid. As parties would have 1 Week Early October issue of Heads of been provided with draft Sale Agreement 2012 Terms and supporting background legal detail as part of the Legal Pack it is anticipated that lengthy legal negotiations would not be required. However, it may be necessary to agree the detail on additional overage and clawback provisions. GVA would lead the negotiations in close liaison with the HCA and its legal adviser. This stage would also deal with any issues related to Legal Charge for overage, deferred payments etc. This stage would culminate in the issue of agreed Heads of Terms.

7) Exchange of The required timeframe for exchange of 4 Weeks Early October Contracts contracts, from the issue of Heads of to Early Terms would have been clearly stated November within the marketing and tender 2012. documentation. We would normally look for an exchange of contracts within 28 calendar days. GVA would monitor the legal process working closely with the client’s legal adviser. Any issues arising

Tender Submission 10th April 12 (2) would be dealt with expediently.

8) Legal Completion Completion to occur in accordance with 4 Weeks Early the HCA’s instructions and agreed Heads November to of Terms. Assuming an unconditional early sale we would normally expect December completion to occur within 28 days of 2012 exchange of contracts.

Total 29 Weeks

NB: The above timeline assumes that outline planning approval is in place (ie, Site C and D). Consideration would need to be given to active marketing over the main holiday period

The above indicative programme is intended to be representative with the same approach being employed across the 6 sites, although there is clearly scope for the activities and timeframe to be varied. It also assumes that all sites are offered to the open market rather than on a selected basis to the Development Partner Panel central cluster.

The above assumes a disposal of the freehold interests in the individual sites on a negotiated private treaty basis. There is clearly potential to proceed down an alternative development agreement route utilising a building agreement/lease. However, at this point in time it is our view that due to the continued difficulties within the residential market place the approach should be as straight forward as possible. We do therefore believe that the market would respond best to a freehold private treaty disposal. We would also therefore recommend an informal tender approach rather than a formal tender.

Offers are likely to be sought on an unconditional basis with outline approval secured and all other due diligence in place. However, based on the results of recent tenders we have undertaken certain parties do still have a preference for acquisitions conditional on securing reserved matters approval. It may therefore be prudent to consider both options depending on market demand.

We also believe that it will be necessary to consider deferred payment terms given the clear advantage of such a payment structure on cash flow and return on capital employed for the house builders.

Regard does also have to be given to market demand which is particularly relevant in Telford given the significant number of consented plots and house builder land holdings.

We do not consider this to be an issue in respect of the smaller sites, other than the fact that they may not appeal to some of the larger house builders. Site C and D Pool Hill Road and Donnington H Phase 3 could therefore potentially be offered at the same time, representing the first batch of releases. This is subject to resolution of the S106 on Donnington Phase H and how long this takes compared to the existing consents and potential immediate marketability of Site C and D Pool Hill Road. In any event, we would recommend that Sites C and D are offered together given their proximity and the economies of scale this might offer in terms of shared preliminary, marketing costs etc. However, individual and joint bids should be sought to enable a true comparison.

At this stage we believe that the 2 larger sites and the Cuckoo Oak Hotel site represent

Tender Submission 10th April 12 (2) sufficiently different opportunities in terms of location and mass to be offered for sale at the same time, subject to the resolution of planning, including the S106 Agreements on each, although it is acknowledged that the planning timeframes will vary. However, we would propose undertaking soft market testing on these sites to confirm that demand does support this approach. An alternative would be to offer the sites to the market as a staged release. There would be little point in offering the sites in a scenario where they would compete against each other.

The indicative planning and marketing timeframes identified above are therefore similar in length at circa 29 weeks each. Based on the indicative timeline the earliest completions (where consent is already in place) would be towards the end of 2012.

However, there would be scope for some overlap between the planning and marketing. Certain activities would also be related, such as the completion of the pre-application investigations and the detail required to inform the Development Brief and supporting Technical and Legal Pack.

We would anticipate all legal completions to occur by mid 2013 at the latest. This would give purchasers sufficient time to secure Reserved Matters approval on all of the sites and a commencement of physical works prior to March 2015.

We believe that we are well placed to complete the commission as required on behalf of the HCA.

Previous Relevant Experience

We confirm that the personnel who would work on the instruction are all based in our Birmingham office. Most have extensive experience of working with the HCA and of its landholdings and sites in Telford. Our team would include staff from two departments within the Birmingham office, but would function as a single entity. We have a long track record of collaborative working. The members of the team sit close to each other within our office and know each other well.

In order to explain and demonstrate our track record as succinctly as possible we consider firstly GVA’s experience working for large public sector clients in the West Midlands Region. We then explain the work and experience of our Land and Development Team. Finally, we explain the work and experience of our Planning, Development and Regeneration team.

GVA Public Sector Experience – West Midlands and Telford

GVA acts for numerous key public sector organisations. Our public sector work currently accounts for approximately 30% of the company’s business. We are retained on approximately 70 regional and national public sector procurement frameworks. These include central Government departments, educational institutions, healthcare providers and local authorities.

Major public sector frameworks which are run from the Birmingham office and include significant input from the Land & Development and PDR departments include the Defence Infrastructure Organisation (DIO) (formerly Defence Estates) and the Ministry of Justice (MoJ). GVA is the sole property advisor to the DIO and acts on the entire UK and overseas defence estate. This framework is founded on the premise of partnership working.

GVA also has a number of development framework agreements in place with the Homes and

Tender Submission 10th April 12 (2) Communities Agency and advises on estate management, town planning/development, valuation, rating, strategic consultancy, building consultancy, acquisitions and disposals. The PDR and Land & Development Teams based in Birmingham have acted for the HCA (and its predecessor English Partnership) for many years and on numerous large residential projects, including those in Telford, Redditch, Northampton and Milton Keynes.

GVA sits on the “Buying Solutions Estates Professional Services” Panel and was awarded this contract following a formal OJEU tendering process. The scope of the services provided include planning, valuation, rating, insolvency, lease consultancy and building consultancy.

Birmingham Land and Development Team Experience – Telford and West Midlands

All personnel regularly undertake disposals, acquisitions, consultancy and valuations principally within the West and East Midlands but also on a national basis for certain clients. All members of the team have been registered as part of the RICS Valuer Registration Scheme which became mandatory from the 30 April 2011.

The GVA Birmingham Residential Development team have previously acted and continue to act as agents, consultants and valuers on various residential and mixed use schemes within Telford. Our long term involvement on the Lightmoor Urban Village project represents a good example of our activities on one of the largest projects in Telford. We are retained as property agents by the joint land owners, HCA and Bournville Village Trust (BVT). Our involvement has included the open market sale of those elements of the village which have been sold to date, including Parcel A1 marketed as The Laurels, Phase 2 known as Stocking Park and Phase 3 comprising the Village Centre. Throughout the disposal process we have provided informal and formal consultancy and valuation advice including the provision of pre-sale and franking reports.

More recently, the department acted on behalf of the HCA in completing consultancy and appraisal activities in support of a successful application for funding at Lightmoor under the Public Land Initiative (PLI) scheme.

Over the last few years we have provided annual advice on the residential land market and land values within Telford in support of the HCA’s annual asset valuation exercise. Historically, our involvement with this exercise was more extensive and included the valuation of the majority of HCA’s individual assets within the town. This element of the exercise has subsequently been taken in-house, subject to the valuation of larger assets which are still outsourced. In this respect, we have over the last few years, provided individual asset valuations for certain developments including Lightmoor Village and the Millennium Village, Ketley.

Historically, we have undertaken the disposal of various land parcels for HCA within Telford. We have also previously acted and continue to act for a number of private house builders with interests within the town.

We are also currently acting for Telford and Wrekin Council in the provision of market consultancy advice on a number of town centre residential and employment sites which they are looking to bring forward for development. These sites are part of the wider town centre Southwater Regeneration Scheme which has secured HCA funding and on which GVA are currently providing agency and consultancy advice.

We did also recently act for the Council on the submission of their own application for funding under the PLI.

Tender Submission 10th April 12 (2)

We also recently handled the disposal of the circa 2 acre parcel of land in Ketley, Telford on behalf of LPA Receivers. This is the Telford College Arts and Technology Site (TCAT site) which benefits from planning permission for conversion of the existing TCAT building to apartments and the construction of new town houses. An unconditional sale was recently concluded.

As part of our wider activities for various clients we have considerable experience of marketing sites, both on the open market and as selected tenders, where a multi stage approach has been adopted. Schemes of note include both Phases 1 and 2 of the Attwood Green Development in Birmingham, on behalf of Birmingham City Council and the Optima Community Association. Combined, these schemes will deliver circa 2,000 private sale and affordable dwellings once complete.

On behalf of the Secretary of State for Defence (MoD) we also recently adopted a multi stage approach for the open market disposal of the highly sensitive sale of the circa 23.9 ha (59.1 acre) listed Royal Haslar Hospital in Gosport.

With both of these sales initial Expressions Of Interest were sought. Following an initial sifting exercise a short list of parties were provided with more detailed information and were asked to submit fully worked up bids. Interviews were conducted where necessary and bids were assessed on a scoring matrix basis. Parties were provided with details of the scoring system as part of the tender process.

We regularly prepare development briefs for disposals in liaison with clients and bring together the background Technical and legal detail to enable parties to complete their own due diligence. This often requires the development of bespoke web sites and the negotiation of bespoke development agreements.

We are also currently handling a significant ongoing instruction on behalf of Birmingham City Council (BCC). In August 2011 the Birmingham Land and Development team were appointed by BCC to market 5 separate Residential Development sites within the City. The sites extend to a total of 12.75 Ha (31.5 acres) gross and have potential for the development of circa 460 dwellings in total. The sites are spread across the city including Harborne, , Sutton Coldfieid, Yardley and Sheldon. Active marketing commenced with the sites being offered individually in January 2012 and an informal tender deadline of March 2012. All sites are now under offer with Best and Final tenders and further purchaser due diligence currently being undertaken.

Planning, Development and Regeneration Team Experience – Telford and West Midlands

GVA’s Birmingham PDR department is instructed by numerous house builders and developers to secure planning permission on numerous sites across the West Midlands. Previous instructions that are particularly relevant to this instruction include;

Instruction from the Estates department at Telford and Wrekin Council to secure outline planning permission on four parcels of land owned by the Council. The sites were similar in size to those under consideration by the HCA and had been on the Council’s books for some time. The issues that arose, and were successfully resolved, included the design and layout of the proposals, drainage and flood risk, means of access, trees and issues relating to neighbouring land uses.

Tender Submission 10th April 12 (2)

For many years GVA’s Birmingham PDR and Land & Development departments have advised English Partnerships / the HCA on its sites in Telford. This work included the submission of outline and detailed applications on a portfolio of twelve sites in the town. The sites were of similar size to those under consideration by the HCA and delivered over 500 new dwellings. Constraints and issues that were encountered and successfully resolved included adverse ground conditions, steep slopes and adverse topography, public footpaths, T.P.O trees, conservation area designations, listed buildings, alleged village green status and a concerted campaign against development organised by local residents.

We are instructed by Henry Davies Developments to secure outline planning permission for up to 285 houses on land at Wellington Road, Newport, Shropshire.

We were instructed by the Ironstone Developer Group to set strategy for the delivery of primary and secondary infrastructure on the sustainable urban extension at Lawley in Telford. The strategy was agreed before the grant of outline planning permission, which allowed the conditions attached to the outline reflect the agreed strategy. We are now instructed to managing the submission of reserved matters in respect of the scheme.

We secured planning permission for approximately 900 homes on the former Cape Hill Brewery site in Smethwick. The site straddles the boundary between Birmingham City and Sandwell Borough Councils. The issues that were successfully resolved in the process of securing the permission were numerous, but included in particular the consolidation and re-provision of sports facilities on the site. This required extensive engagement and negotiations with Sport . We have subsequently reworked the scheme in order to reflect current market demand.

We secured outline planning permission for approximately 200 houses on the final phase of the Great Park development at Rubery in Birmingham. The site was allocated for employment development. There is a listed chapel in the centre of the site. These constraints and others (including the presence of protected species and mature trees on site) were successfully addressed. Planning permission was granted. The site was subsequently disposed of (by the Land and Development Team) and construction work is now underway.

GVA’s PDR department is instructed in respect of the Hospital site in Birmingham. We were Initially instructed to work with Birmingham City Council to prepare Supplementary Planning Guidance to guide redevelopment of the Selly Oak hospital after relocation to the new Queen Elizabeth hospital. We were subsequently instructed to lead the preparation of a major planning application and Environmental Impact Assessment for up to 900 homes on the vacated site.

We believe that the above information demonstrates that we have the necessary knowledge experience and expertise to undertake the instruction as detailed.

Proposed staff and resources

Land and Development Personnel

The instruction would be managed by from our Land and Development Team. would be assisted by Associate and Surveyor within the same team.

Tender Submission 10th April 12 (2)

have worked within the team for circa 14, 7 and 4 years respectively. All 3 are actively involved with on-going disposals and most other aspects of the departments activities including formal and informal valuation work, development appraisal and consultancy work etc.

Senior Director and Department Head of Birmingham Land and Development oversees all projects handles by the department. has worked for GVA in the Birmingham office for circa 24 years and has significant experience in working on projects within Telford and the wider West Midlands region. input would be called upon where necessary, reflecting his historic involvement with various projects in Telford on behalf of HCA and other land owners including his on-going involvement with Lightmoor Urban Village development. It also reflects the fact that the team is very established and works closely on most projects.

Town Planning Personnel

The town planning input required on the instruction would be overseen by is a Director in our Birmingham PDR department and has more than twenty years experience of providing town planning consultancy advice. would ensure that the highest quality standards are maintained and would advise on strategic issues. k has acted for the HCA in Telford for more than 15 years.

The day to day planning inputs required on the instruction would be overseen by with assistance from

specialises in the preparation, submission and management of complex planning applications including those for housing. has acted for numerous high profile public and private sector housing providers, including the HCA and several national house builders. has been with GVA for ten years and has spent much of that time working on projects in Telford. He is fully conversant with development issues in the town and knows key personalities and influencers at the Borough of Telford and Wrekin.

are Principal planners with six and five years experience at GVA respectively. was previously a team leader at Malvern Hills District Council. He has day to day responsibility for the planning application for almost 300 homes at Newport and knows many key personnel at Telford and Wrekin Council. s the main point of contact for our client on the Ironstone Developer Group. He is familiar with many of the development issues that influence proposals in Telford and knows key staff at the Borough Council.

is a chartered planner with over five years experience. was the main client contact for the work we carried out on behalf of Telford and Wrekin’s Estates department. is familiar with planning issues in Telford and knows staff in various relevant departments at the Borough Council.

At this stage, it is difficult to estimate the amount of time and resource that will be applied to the project. However, as a fixed price commission resources will be applied as necessary within the capped fee to provide the level of service and support required to fulfil all elements of the instruction at an appropriate standard. Additional internal resources will be utilised as necessary to compliment the activities of the professional staff.

Tender Submission 10th April 12 (2) Management arrangements

The instruction would be lead and managed by s who would take overall responsibility for liaison with the client. The management would be undertaken on a proactive basis with regular contact with the client, principally via but to include other individuals as maybe necessary.

We would be happy to agree a reporting schedule to enable regular updates to be provided during the extent of the instruction period. The need for monthly client meetings is noted.

would take overall management responsibility for planning inputs. would be responsible on a day to day basis. We anticipate that will provide all input on the Pool Hill Road sites and on Donnington East Phase 3 (which he acted on previously). The three outline planning applications will necessitate the creation of project teams. Each will be lead and managed by but with input and assistance from

Timescale

The need for construction to commence on the various sites prior to March 2015 has been clearly noted.

Assuming the inception meeting was held prior to the end of April 2012, this allows for a total of circa 34 months within which to achieve the above objective. However, the activities covered by this tender do clearly only relate to an element of the activities which would be required prior to construction commencing. In this respect, in terms of the overall development timeline this instruction would take each development site up to the point of freehold transfer (assuming this is the agreed sale route) with outline planning approval in place. There would therefore still be a requirement for the purchaser to obtain Reserved Matters planning approval for each of the six sites, prior to any of the physical works commencing on site.

We believe that the indicative timeframe outlined above is realistic and achievable in respect of the planning and disposal activities required. In this respect, the combined indicative planning timeframe (38 weeks) and disposal timeframe (29 weeks) extends to 67 weeks/17 months. Assuming the instruction commenced at the end of April 2012, and assuming the disposal followed planning, this would suggest a conclusion of all sales by December 2013. This would leave circa 14 months for purchasers to obtain Reserved Matters approval and make a start on site.

Clearly, we would anticipate a sale of those sites with planning and start on site within a shorter timeframe. It may also be possible to shorten the above timeframe, depending on what overlap between planning and disposal can occur and when certain actions can be concluded.

Fee Proposal

It is noted that HCA has set a capped budget of £50,000 for the combined Agency, Valuation and Planning services required with an additional budget of £8,000 in respect of marketing costs. We have given a considerable amount of thought to the level of this cap and genuinely believe

Tender Submission 10th April 12 (2) that it is insufficient to cover the resource and time required from the appointed consultant to provide the service at an appropriate level of professionalism and diligence.

Accordingly, as discussed with Pele Bedward we are pleased to set out below an alternative fee proposal based on discounted HCA Property Panel rates:

AGENCY and VALUATION FEES

All Agency and Valuation work would be undertaken by the Birmingham Land and Development team. All qualified surveyors within the team are also RICS Registered Valuers. The Pre-sale and Franking Valuations would therefore be provided by appropriately qualified personnel working directly on the project. All valuations would be signed off by director and project lead.

As a starting point for our assessment of fees we have had reference to the agreed rates within the HCA Property Panel. To these we have applied a discount to reflect our desire to be successful on this instruction, whilst retaining profitability across the project.

In respect of the Pre-sale and Franking Valuations, these would be charged at a flat rate of £500.00 each, plus VAT, reflecting a significant discount from the £750.00 agreed standard fees. This element of the instruction would therefore total £6,000 plus VAT. These fees would be charged on completion of each valuation.

In terms of the disposal fees across the 6 individual sites, we propose the following:

Site C Pool Hill Road - £2,500 Fixed Fee Site D Pool Hill Road – 0.75% of the sale price capped at £5,000 Cuckoo Oak Hotel Site – 0.75% of the sale price capped at £7,500 Donnington H Phase 3 – 0.55% of the sale price capped at £10,000 Park Road, Mallinslee – 0.55% of the sale price capped at £10,000 Hadley Park West – 0.50% of the sale price capped at £15,000

Across the 6 sites the total capped disposal fees would therefore not exceed £50,000.

We would also recommend that the HCA keep an open mind in terms of the appropriate budget for the marketing costs. There is clearly a requirement to obtain Best Value in the sale of any public asset and the marketing budget should be tailored to the required market exposure. If successful with this instruction we would therefore provide detailed marketing recommendations to include a detailed marketing budget across all the sites. This could therefore exceed the £8,000 budget stated.

PLANNING FEES

We propose that we would recover our time spent on planning work based on time charged at hourly rates, but capped at a maximum fee. We propose to use the Property Panel “Long Term” rate from 2010.

We proposed that time spent on the instruction by y would not be recovered, so we have not included an hourly rate for him. Proposed hourly rates for other planning staff are as follows;

Tender Submission 10th April 12 (2)

The amount of time that we estimate might be spent on the various instructions is as follows;

Pool Hill Road Sites

No charge for time spent.

Donnington East Phase 3

•

Cuckoo Oak

•

Park Road

•

Hadley Park West

•

•

The above gives an estimated budget for the planning input to the instruction of approximately We propose that the planning element of the instruction would be capped at this amount. However, if we were to spend less time than anticipated we would only recover time spent.

Our combined capped fee for the project as tendered therefore amounts to the following:

Pre-sale and Franking Valuations - £ 6,000 Disposal Fees - £50,000 Planning Fees - £29,000

Total - £85,000

We appreciate that this exceeds the budget for the instruction. However, we maintain that the fees proposed reflect the full scope of the instruction and the amount of time required to deliver the necessary inputs at the prerequisite quality. We have carried out numerous similar instructions in Telford and have in depth knowledge of the issues likely to be encountered. Our

Tender Submission 10th April 12 (2) proposals are based on this experience and knowledge of the sites.

Tender Submission 10th April 12 (2)