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The valuation on the completion of the houses, which APD would have enjoyed had they been sold, would have been about 12 %. (An adequate profit, given that APD has no overhead or payroll costs.)
This has only been achieved by tight cost control, good planning, and careful selection of key contractors who have been robustly managed.
The houses are being rented out and the tenants have taken up a shared equity shadow scheme, which will result in the tenants and Landlord’s interests coinciding when it comes to the sale of the properties, (most probably in 4 years’ time).
This development did not push to the commercial opportunity to the short term limit.
Rather it worked with the Planning Department and Community to achieve a balance.
As the site matures there is still some opportunity for enhancement for both tenants ‘and shareholder value.
APD intention is to make an “adequate” profit appropriate to the risk and the duration of its cash being outstanding.
The Frome development saw the creation of two eco houses on the site of a dilapidated bungalow, within easy walking distance of the centre of this delightful town.