Current legal issues in commercial property development

Course Code: CM030509      Days: 1
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Audience

  • Developers
  • Investors
  • Lenders and intermediaries
  • Solicitors
  • Development and investment surveyors
  • Project managers
  • Construction professionals

Skills Gained

As a result of attending this conference, you will be able to:

  • Understand how the component parts of the development process integrate
  • Ensure that deals with external parties more timely and steam-lined
  • Understand and adhere to planning constraints and other statutory restrictions
  • Anticipate potential environmental problems and resolutions
  • Avoid difficulties with investors/funders
  • Ensure that your documentation is watertight
  • Avoid conflict between commercial intentions and the practicalities of construction
  • Maintain a firm grasp of the process from beginning to end

Course Outline

Site acquisition and preparation

  • Piecing the title together
  • Accuracy of boundaries
  • Rights of access
  • Wayleaves
  • Restrictive covenants
  • Rights of light
  • Crown cautions

Planning issues

  • Site appraisal from a planning perspective
  • Development plan policies and other constraints
  • Section 106 issues
  • Recent changes in development control

Environmental matters

  • Historic risks
  • Operational concerns
  • Instructing environmental consultants
  • Environmental indemnities and other contractual provisions
  • Insurance cover

Construction issues

  • What are the developer's expectations, and are they realistic?
  • Partnering
  • SBC - Standard Building Contracts
  • JCT Major Project Form 2003
  • NEC3
  • HGCR Act 1996 - Adjudication, success or failure

Raising finance - the practical realities

  • Types of development risk
  • Institutional v banks
  • Terms of bank finance
  • Rents and the ability to leverage debt
  • The equity gap
  • Equity from developers, contractors and landowners
  • Pre-development equity syndicates
  • Mezzanine finance
  • Long-term finance
  • Providers of finance

Tax issues

  • Recent changes (REITs, planning gain supplement)
  • Investment v trading - the crucial distinction
  • Capital allowances
  • Capital gains tax and offshore structures
  • The taxation of trading activities

Development and funding agreements

  • Traditional forward funding agreements
  • Fund's maximum commitment
  • Conditions
  • Developer's obligations
  • Other types of development agreement

Mixed use developments - specific issues

  • Definitions
  • Economic drivers
  • Government Policy
  • Trends
  • Stakeholders
  • Public & Private Sector Outputs
  • Sustainability


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