The APAC team, its board and investment committee have a network of agents and brokers built up over a combined period of over 100 years that specialise in obtaining properties that would fit within the business model.
Prior to purchasing a Buy-to-Sell property, the investment committee will assess the investment against the following criteria:
What is the most cost-effective way to acquire the property?
What is the total cost of redevelopment?
Does the current planning status support the potential opportunity?
What is the timescale for redevelopment?
What is the total GDV of the project?
Once the successful options have been decided upon and submitted to the risk committee, they will assess further against the following criteria:
Local market trends (i.e. strength of resale or rental market)
Local market factors (i.e. determining factors that may increase the need for property)
Ease of project (factors such as site access can save thousands of pounds)
Experience/past performance (have the team developed or purchased here before?)
The committee will use information such as previous listing prices, comparable sale or rental prices and achievable sale prices with local agents and experts.
Renovation and development work will be quoted by a minimum of three construction companies and the decision will be dependent upon price for the work, track record for completing the work within specified timescales and quality of work completed.
APAC will then conduct due-diligence on the land title, building covenants, neighbours’ objections, timescale and accessibility to the site and potential profitability.
Upon commencement of any building work, APAC will place a dedicated project manager to work alongside the construction company to ensure milestone targets are met within the project and thereby avoid delays and timescale overruns. APAC will focus on purchasing properties in areas of strong resale and areas which possess an indication of expansion and need for new homes.
APAC assess profitability of specific projects in reverse order:
- Receive project quotation from construction companies.
- Deduct fees (resale fees, legal fees, construction fees, stamp duty and purchase price).
- This will result in indicative profit.