JBN
In Training
New Stadium Progress
I also am a bit confused JBN.
are you saying that first we buy the land back from Barrats at around what £11M? and then build a phase one of a total £500M project. What with?
We have to get the land value first, ok possible with the sale of Griffin Park
Then we have to put the funding for phase one up front. err where does the money come from? lets say we got best price for the land a GP at £15M and somehow managed to buy the land at Lionel Road for £11M would £4M be enough to complete phase one?
Where would we play in the meantime?
How long before the revenue is enough to afford phase two?
What if we can't shift the houses for sale?
What if??????
The £500 or so million that is being talked about is the completed development value. This takes into account the cost of the land, the cost of the materials to build it all, the marketing, fees and developers profit, (somewhere around 15% but could be as high as 30%).
BFC take over the option if Barratts cannot go through with this project. BFC work up the master plan, with the architect and Hounslow Council to get a development that works.
The first phase is funded by external cash. Phase 1 could be the stadium and the first 150 or so homes.
In an ideal world we would carry on playing at GP while phase 1 is happening. When the stadium is complete, we move over, sell GP and pay of some of the debt. Phase 2 might be a further 150 homes, which could be funded or part funded by the profits from phase 1. That is all that any other developer would do.
What doesn't sell is rented out.
This would involve substantial borrowing, but it is borrowing that can be secured against either GP (if there is anymore room
Lionel Road might be worth £11m as it is, with a planning consent to stick 500 new homes on, the value will treble at least.
I have spoken to a development agent on this, it is not an unusal proposal, it happens all the time.
Yes the idea of borrowing to do it, is scarey, but we don't need to walk into Barclays and say "lend us £500m, we want to build a new stadium and load of flats". It can be funded, it can be phased. We might 'only' need £50m to kick start it and with the planning consent in place the land value would cover alot of it and the value of the planning consent should be sweet enough to cover at least the rest.
The current plan is pretty vague, no one seems to willing to inform us what we are getting tenure wise and what we are getting in supporting non matchday income producing development.
There isn't a huge amount of keenness to tell us what plan B is, unless it is stay at GP or find someone to fill Barratts shoes.
