16 CASE STUDY
Micro developers and macro barriers
A collaborative JV between a micro- developer and a local housing association is building four homes on a semi-rural Bristol site. CHI’s Alli Gay tells Jack Wooler how the developer navigated the many challenges SMEs face to achieve this.
A
small development of four- bedroom homes, set for imminent completion in Bristol on the site of a derelict farmhouse, illustrates the tough challenges SME firms face currently. A joint venture between micro-
developer CHI and Lime Property Ventures, the commercial arm of Elim Housing Association, the 0.5 hectare project offers flexible, open market home executive homes with a “family- led” design. Demonstrating its collaborative ethos, the housing association provided half the funds for the project, while letting the developer lead on what it’s best at – development.
While purchased with partial planning, this was already going to appeal under the previous owner, CHI then changing the existing planning permission once in its possession. There were multiple challenges gaining the scheme’s approval here, which the developer largely puts down to its SME nature.
The challenges didn’t end there, with the impacts of Covid and the hoop- jumping required for an ecologically diverse and protected site causing multiple delays.
Through innovation and hard work however, these barriers were overcome, and all the plots have now been sold.
FLEXIBLE HOMES
The elevated site, with views over the neighbouring horizons, now hosts four 2,200 - 2,500 ft2 timber frame.
homes, all built using
The design of these properties was driven by CHI’s strong desire to build high quality homes, says CHI
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owner/director Alli Gay. As such, CHI has tried to set itself apart from volume builders by designing additional features which make day to day living that bit more comfortable.
Flexible rooms are one such element,
designed to be able to be used for various purposes. The open plan ground floor snug-kitchen-diner and separate lounge and study, for example, could equally be used as a fifth bedroom, separate dining area and large wrap-around lounge. “We are offering more opportunities to buyers to use their homes in whatever way suits their family lifestyles,” says Alli. “Rather than cramming in extra bedrooms, each house has four large bedrooms with several other flexible rooms, and each garden should be a haven for wildlife.” She continues: “We wanted to create an exclusive development, maintaining the biodiversity and original features, so that any children could play freely in the street and the occupants could use the whole area socially and we feel we have achieved this.”
The homes also come with full-width bifolds and a separate set of French doors so that during the summer months, the garden can be accessed easily and the views enjoyed widely from the rear of the house.
OPPORTUNITY Rewinding to 2019, CHI’s first move on the project was to approach the commer- cial arm of the local housing association with a land acquisition opportunity. Covering 0.5 acres, the land included the derelict farmhouse, but also a fully functional 30-foot mobile home, and a variety of wildlife and Category C trees, most of which were reportedly diseased and in poor condition.
CHI embarked on a lengthy negotiation with the HA which took 9 months for senior management to sign off on. “We were all keen to create an agree- ment that afforded each party sufficient protection while still allowing us the freedom to create designs and manage the project that would provide a high
return on investment,” says Alli Gay. While the build and development costs were split 50/50, the HA wasn’t keen to get involved in the day to day operation. This worked in CHI’s favour, however: “It was important for us to have total control of the project and for our partner to have enough security over delivery, so we could do what we do best.” The JV agreement described by Alli
resulted from a collaboration of both parties, an important way of working to result in a document that achieved protection of both parties. Without a JCT agreement, the JV still set out the fine details of obligations and payment terms and profit split.
“Being such a small family run business, JCT penalties had the potential to sink us if any unforeseen events took place, like Covid!” says Alli. She adds: “The HA were taking a measured leap of faith and each party needed to have an element of trust in our arrangement.” According to Gay, this high level of collaboration meant that the inevitable problems to tackle in such a scheme were dealt with pragmatically, rather than punitively.
APPROVAL
While the land was purchased with planning permission, the team had to pursue the Variation of Condition route, as the most straightforward approach to achieving a redesign, which was needed following the initial scheme having gone to appeal.
“The initial designs were poor in terms of amenity space, creating a dark, uninvit- ing living area and were overall quite standard,” she says.
The build costs were also reportedly high, and the buildings were not “particularly” thermally efficient, and so they were deemed unlikely to provide a good return on investment, nor be particularly appealing to a buyer, and it was vital that they were updated. Once updated, the approval was expected to take eight weeks, but ended up taking four months.
One of the main complications at this
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