Service: GE Analytics | Sector: Residential | Contact: Alexander Vaughan-Jones
Unibail-Rodamco-Westfield submitted a planning application in 2016 for an extension to the existing Westfield Stratford shopping centre and development of approximately 1,200 build-to-rent units, forming part of the redevelopment of Stratford City and the Olympic Village. We were tasked with preparing a financial viability assessment to support the application, and agree an appropriate housing an planning obligations package with the London Legacy Development Corporation (LLDC) and Greater London Authority (GLA).
We employed a data-driven approach to prepare a bespoke, two-phase financial model combining development appraisal analysis with an investment cashflow of the build-to-rent income stream. Our report included detailed sensitivity, scenario and Monte Carlo simulation analysis to demonstrate that the proposed planning obligations package was the maximum reasonable.
The analysis we developed underpinned a successful agreement between Unibail-Rodamco-Westfield, LLDC and GLA. Planning permission was granted in 2018, with an agreed payment towards the delivery of affordable housing, representing an off-site provision of 35%. Construction work commenced in Q2 2019, and when complete it will be one of London’s largest single-site build-to-rent schemes.