A cleared, freehold development site with full planning Permission for the construction of 11 houses, all within the Help to Buy limit - a straightforward sale, right??
Well yes, in a way, but we're all about maximising value, and our clients had high aspirations! This particular site came with a relatively strong CIL liability and a prohibitive S106
with a late review mechanism. None of the above would preclude a sale, but the combination of all three had a major impact on the land value to a private developer.
Whilst we entertained interest from a variety of buyers, we knew that a Registered Provider (Housing Association) would be able to pay a premium, if indeed we could find one with an appetite for a small scheme in Bexley. RP's don't pay CIL and given their mission to develop 'affordable housing', the financial impact of the S106 could be negated. Furthermore, if the finished units weren't to be sold in the open market, the late review mechanism wouldn't apply.
We've dealt with Hexagon multiple times over the last 20 years, and were able to agree terms that met our clients' heady expectations. Hexagon completed their purchase of the site in May 2021; further adding to a strong pipeline of business for 2022.
Please get in touch if you want big money for your development site!
PROJECT ADDRESS: Land off Iverhurst Close and rear of 32 - 38 Alers Road, Bexleyheath, Kent DA6
