Preparing a Project for Disposal to another Client

Client Transition: Project Disposal Protocol

MDCI have been managing the development process for a full range of Clients for almost 30 years. This has exposed us to multiple distinct roles and a wide variety of clients’ objectives, that we have adapted to, in order to support our clients in the very best way. Recently, developers have been starting to change their approach, in order to improve their profitability and are looking for support from our Project Development Team.

It’s becoming more common for developers to take an extra step and provide a finalist product that would appeal to an investor or home builder because they can start construction almost immediately and they have taken a lot of the hassle off these investors, minimising the risks.

So, rather than invest in a large plot, then install the necessary infrastructure and sell smaller urbanised plots off for a profit, some developers are determining the design allocations for each site, having them designed and specified, priced and in some cases legalised with a building licence. Having taken the development process further forwards than the norm, they then offer investors the option to purchase that “advanced opportunity” for a premium price. This is to cover the additional costs that they have borne and the longer development period.

Investors and home builders like this option, despite the higher price, because they have saved them so much effort and time.  With this model you don’t have the hassle of finding a site, contracting an architect, defining the project, managing the process, running a bidding contest and applying for a licence. This can save investors a year and get them ready to build and so is worth the premium.

However, nothing is ever perfect, so if you choose this route there are some evident inconveniences. It may be that the design performed does not match your taste, or doesn’t suit what your ideal buyers are looking for. It’s also possible that the specifications that the developer has decided on are inferior or superior to what you would like, so need adapting to meet your budget and vision. This will need careful handling, as it may affect license conditions, the price of the project and therefore your contract conditions. It’s always wise to involve a Project Manager to mitigate these potential fall outs and control and fine tune the development specifics to ensure it meets your needs.

We at MDCI have participated in several of these opportunities and are intricately familiar with the process. So, if you are in the business of needing that service to prepare a site for the market in this way, please contact us and we can discuss how we can support you.

Alternatively, if you are a client who wishes to invest in an opportunity where the legwork has already been done for you, please get in touch, as we have access to a good selection of projects, which are ready to go. Contact us.

This includes a plot in Sotogrande, with designs completed for a multi-generational home, within walking distance of the international school. This plot is being sold with the designs for an energy efficient five-bedroom property, with large basement and pool, which has the option to be completed with a separate apartment for grandparents, or guests, or can be combined. It has been designed to be very energy efficient, with solar panels to reduce running costs. The plans have been drawn up, the licences have been obtained and the bidding process has been done, so an investor or end client could break ground almost immediately.

This would be highly attractive as a rental investment, as many families move to the area for the school and there’s a shortage of modern properties for long term rental. There’s also a large number of parents with children at the school looking to buy, and struggling to find suitable properties which don’t require a lot of work. This property would be worth significantly more than it would cost to build, so your initial investment would be repaid quickly.

Ask for more information about plot in Sotogrande.

Contact us by email or give us a call to find out more about this form of developing and what projects are available to purchase.