Developments

Creating new homes — ground-up build on land, or major redevelopment of an existing structure — usually delivering multiple units.

Typical ROI 20% profit on GDV
Timeline 12 to 36+ months
Difficulty High
Key metric GDV

Strategy overview

  • Acquire a site or building with development potential
  • Secure or enhance planning permission (the main value driver)
  • Build out the scheme
  • Sell the units, or refinance and hold

Advantages

  • Largest absolute profit potential of the strategies here
  • Create significant value through planning gain
  • Multiple exit routes — sell all, hold, or a mix
  • Control over the end product and specification

Considerations

  • Planning risk can stall or sink a scheme
  • Capital-intensive and long-dated — market can move mid-cycle
  • Build-cost inflation and programme slippage
  • CIL, Section 106 and professional fees
  • Requires an experienced team and robust contingency