JLL Residential

John Lewis - Viability Advisory

Denyer Street - Project Management

Project: John Lewis Clearings site, Royal Borough of Kensington and Chelsea, SW3
Client: John Lewis
Date: 2013

situation

The Clearings buildings situated on Draycott Avenue in Chelsea were identified as surplus to the operational requirements of John Lewis Plc and the principle of a residential development on this site had long been discussed and widely accepted. John Lewis Plc had taken the decision to prepare an application for planning consent to redevelop the Clearings site for residential use. Discussions between the Council and John Lewis Plc about the redevelopment of Clearings included the future of the neighbouring Marlborough Primary School and the Council’s cleansing depot.

brief

To assess the viability of a three phase development comprising a new two-form entry primary school, a residential scheme accommodating 69 units, and a Council depot. JLL’s role was to prepare a financial viability assessment and to negotiate with RBK&C to determine the total commercially viable level of planning contributions the proposed scheme is able support.

outcome

  • Viability instruction for the proposed scheme with estimated GDV in excess of £400million completed in December 2013.
  • JLL agreed a total Section 106 package comprising nil affordable housing on-site and a total financial contribution equating to £33.5million.
  • The negotiated outcome represented a substantial reduction from the Council’s original position, which JLL demonstrated was commercially unviable. Of this S106 package, £26.5million relates to the delivery of both the interim school and new primary school. The remaining £7million will mitigate the impact of the development on services within the borough, and includes a contribution towards the Council’s Affordable Housing Fund which seeks to address identified housing need within the borough.