Building the Perfect Project Presentation
The Smart Guide

The presentation of information is key when assessing any new scheme for funding. The
team at Brickflow really understand this and always deliver outstanding project appraisals,
which gives their clients the very best chance of securing the right funding for their projects.

Terry Woodley, Managing Director
Development Finance, Shawbrook Bank

1. Introduction

2. Case Overview

3. Developer CV or Track Record

4. Development Appraisal

5. Property Schedule

6. Team Directory (The Power Team)

7. Comparables

8. Supporting Documents

9. Summary

  • M&E
  • Project manager
  • Quantity surveyor
  • Landscaping (give this some proper thought – it will cost more than £25k to landscape communal gardens around a block of 50x flats)
  • Party wall
  • S106 (don’t double count this by putting it in as a cost and also reducing your GDV)
  • CIL
  • Marketing (make sure the budget is realistic based on the details in the case overview)
  • Agent fees (for sales)
  • Legal fees (for sales)
  • GDV (Gross Development Value)
  • NDV (Net Development Value – GDV minus marketing costs, agent fees, legal fees, lender exit fee)
  • Developer profit (make sure it is 20% or more (prefinance) as otherwise the margins will be too fine for most lenders)

Cashflows aren’t needed to get funding agreed for most developments. The only time they are needed is when a development is phased, so we can see the peak debt amounts and understand the development funding requirement throughout the scheme.

At the simplest level a cashflow is the anticipated monthly build costs. The monthly costs and the build schedule normally aren’t available until much closer to drawdown, and after the appointment of the main contractor and other professionals. Lenders assume a straight line draw on build costs for the purposes of loan approval, which should always more than cover the build cost loan requirement, providing the total build costs are correct. After the loan is approved and the lender QS is appointed, they will need a cashflow to work to. They always change through the project, so it is a working document.

For houses you should include:

  1. The property description – detached, semi-detached, terraced, etc.
  2. Number of bedrooms
  3. Number of bathrooms
  4. Tenure (normally freehold for houses)
  5. Area in sq ft or sq m
  6. Sales price

For apartments:

  1. The property description ¬– single storey, duplex, triplex,
  2. Number of bedrooms
  3. Number of bathrooms
  4. Floor number
  5. Does it have outside space?
  6. Tenure – leasehold or share of freehold?
  7. Lease length
  8. Area in sq ft or sq m
  9. Sales price

You also need to include the number of blocks in the development and how high the blocks are – why? Because some mortgage lenders have restrictions on block density and height, so if it is more difficult for en end buyer to get a mortgage on, then it is more difficult to sell, which in turn means there is more risk for the development lender.

  1. Name
  2. Job title
  3. Company name
  4. Contact number
  1. Email address
  2. Company website
  3. Have you worked together before?
  4. (If yes) How many projects?

Once you’ve got your comparables, list them out. An ExCel sheet is fine.

  • Include the address
  • The property type
  • Sold price
  • Sold date
  • Weblink for the property
  • Your own comments as to whether this is a good comparable or not

On top of the comps, at Brickflow we always ask borrowers to include letters from agents explaining the local market dynamics and they’re expected demand for your properties.

They will normally include some ideas around marketing strategy as well.

This is great for the lender as it gives them local context and softer information & context that the raw data might not be able to give. But speaking to agents is also great for the developer. You will learn something new from every agent, as they’ve all had different experiences with sites over the years. Even if they can’t tell you exactly what to do to achieve 100% sales above asking price on the day you hit practical completion, they should definitely be able to tell you now what to do. They’ll all have horror stories of the developer that didn’t listen and couldn’t sell their scheme, so they are a very valuable resource.

  • Planning permission
  • Design & Access statement
  • Floor plans / elevations / technical drawings
  • Brochures of previous projects – it shows what you’re capable of
  • CGIs / mock-ups of the end development – we all respond well to visual aids, so anything you can do to help visualise the end product is very helpful
  • Build schedule – you’ve indicated your build term in the appraisal, but it is a different level of professionalism if you can show your build stages
  • Cashflow – an accurate version won’t normally be available until nearer to drawdown, but if you have an outline version then that puts you ahead of most developers
    Site tour video – this is one of our favourites and will really set you apart. You don’t need fancy equipment, you just need to show us round your site using the video function on a mobile phone (with commentary)
    CVs – for you and your team