The Development Recovery Service
Roscoe has assembled a fully integrated Development Recovery team to provide a three phase approach to project recovery that embraces:
Phase 1 - Project evaluation appraisal, analysis and review
Phase 2 - Project re-engineering, innovative procurement (using an ECI/ESC approach) and asset management programme
Phase 3 - Project financing/refinancing via Bond Market Capitalisation
We believe there has never been a better time to “buy a construction project”. With falling commodity prices and margins influencing construction prices, clients can significantly take advantage of the current situation to help bridge funding gaps created by reduced values and rising yields; but it cannot be the sole element.
Phase 1 - Project Appraisal
In order to make development recovery a reality, existing and proposed projects must be subject to a project appraisal and re-evaluation process that allows a complete desktop reappraisal of the scheme to be undertaken. This process is aimed at identifying ‘opportunities’ whether it be re-phasing / pre-fabrication or modularisation to reduce cost and future proof projects.
Phase 2 - Project Re-engineering
Projects must be front end de-risked in terms of design, buildability and cost and this can be achieved by our innovative ECI/ESC procurement process linked to our bespoke risk management system.
We also believe a major opportunity exists to reduce the cost of construction further in order to help bridge the funding gap by taking waste out of the construction development process. This can be achieved in a number of ways by embracing an innovative integrated insurance strategy, removing “prelims on prelims” and maximisation of off site manufacturing.
As part of this phase we also establish a viable asset management platform for the scheme where a comprehensive strategy document is prepared, this focuses on identifying and attracting potential occupiers and purchasers and satisfying their needs. Attention is given to developing a range of ideas and concepts that differentiate the scheme from others in the market, thereby offering long-term investor value and occupier utility.
Phase 3 - Financing / Refinancing
Our service includes an innovative approach to asset and property management that will focus on attracting end users and purchasers as well as high levels of service provision completed schemes. In addition and potentially the key to the whole concept of a Development Recovery service is the ability to refinance projects. In addition to the specialist debt renegotiation capability, DRS has established a construction finance package which raises construction finance via the bond market to fund projects/portfolios of £50m and above. We fully believe that this will alter the way that construction projects are funded in the future!
