I got a MD in Architecture (2006) in Chile. Currently I am carrying out a PhD in Urban Studies at UCL (2012-2016)
In addition to the most well-known factors of successful investments for developing properties (connectivity, proximity to services, diversity, good quality public spaces and others) there are two new attractors for keeping investors interested on properties: supporting and flexibility, but now from a different viewpoint.
If there is a suitable property for creating new neighbourhoods, investors would like to take the risk. However and as soon as the project is finished, investors have to look at for other different sites for new opportunities. It means that although the former investment was successful now it does not have another possible future;i.e. it is now 'past'. So, the interest is also forced to be finished.
But what happens if we come back to the successful project and find a new chance to re-charge the investment? The place was proved as a good location, services are functioning, more people are interested for living there, local council still needs to accommodate more people, participation processes were well guided and the like. So, finally the risk is less high because of the current positive externalities, the increased know-how and a new investment could be supported (in part) by the first project.
To open this chance and keep investors interested in properties, it needs two important things:
1.- Just in case the investment was successful and if there is not historical heritage or other constraints, a possible second stage could be opened. Thus, a considerable part of buildings, services and infrastructure in the first stage need to be reinforced to support an extension (properly agreed). In this case, investors should consider an 'extra-charge' for the first stage. But if in case they decide not to go ahead with the second one, the public sector returns this extra-charge to the investors and now the chance pass to the public sector. This is the 'support' from the public sector for keeping investors interesting on a possible second chance into the same place.
2.- The second condition is 'flexibility'. If the first stage was successful and it can support a second one, so, it needs 'flexibility' to increase densities a bit more and to use the infrastructural support considered on the first stage: new towers, a couple of new buildings per area or/and an extension of services could be another chance to re-invest applying the accumulated know-how in terms of process in a secure context of investment.
It is a new chance also suitable for correcting previous issues and for getting involved again into a new investment process based on a successful first stage. If there is not a second stage because business was only well finished (but not strongly enough) so, the project is over and every actor achieved their goals; but if there was a more than successful investment, if the demand is still alive and the place can resist a second part, so, there could be another future for the same well-know successful place. If the investors have this chance, they will keep the interest in properties because there is not only one possible future but also another one in case everything is going well. This is the 'management normative bonus' as another way to open the future again because of a successful experience.
Featured articles and news
Urban Heritage, Development and Sustainability: international frameworks, national and local guidance.
What will the General Data Protection Regulations (GDPR) mean for you when they come into force in May?
Business Secretary chairs a new taskforce to monitor and advise on mitigating the impacts of Carillion’s liquidation.
Sir John Armitt is appointed the new chair of the National Infrastructure Commission.
High quality and high density homes - is it what we need or is it storing up trouble?
Government announces its intention to strengthen planning rules to protect music venues and neighbours.
National Audit Office reports that there is little evidence that PFI offers better value than other forms of contracting.
What is liquidation and how does it apply to contractors in the construction industry?
Scrutiny is placed on Carillion's controversial 2013 decision to extend subcontractor payment terms to 120 days.
RSHP unveil their involvement in a boundary crossing which will provide a new entry point into Hong Kong.
With PFI currently under the spotlight due to Carillion, this introductory article explains what they are.
Estimates suggest that up to 30,000 small firms could be at risk of non-payment as a result of Carillion's collapse.