The key to our agile business model is balancing resources, both land and cash, to enable regular land purchases and a constantly developing land bank. This feeds opportunities to the planning team who begin the value adding process by securing important planning permission. The asset can then be monetised in several different ways: selling the land with planning permission, selling a proportion of the plots to developers, or utilising our housebuilding capabilities and selling houses directly to homeowners. Each of these processes is underpinned by an ongoing dual assessment — of the market conditions and customer demands, and our own cash and opportunity flow. The continual decision making and plan refining process based on these considerations means that Inland not only produce highly sought after homes and developments, but deftly balance their assets and cash, maintaining a responsive forward-looking financial strategy.
Assessment of market conditions
The planning teams undertake thorough research into sites before, during and after purchase, to establish the factors at play, from local authority restrictions or demands on the site and community pressures, to the nature of the landscape and its surrounding areas. Before an application is submitted, extensive consultation is undertaken with planning bodies to establish the parameters for a project. Our in-depth knowledge and experience as well as research into the specific area ensures that the proposed project is not only likely to be supported by the local council, but that there is high demand for the resultant properties and the project will be profitable. External consultants are used to advise on a range of aspects of the project, including sustainability, and once a plan is drawn up we continue to refine and adjust it based on the constant monitoring of local and market forces. As a result, we have a stellar track record of achieving planning permission even on the most difficult sites, and the resulting developments are tailor-made for the local community, completely transforming brownfield land into attractive homes and landscapes.
Holistic assessment of our portfolio
When it comes to deciding on whether to sell the site with planning to developers or undertake the build internally, we assess influencing factors such as cost of labour, timescales and location to decide on the most appropriate route to take. Considering the financing of a project build is critical to this decision making process, and we crucially assess this not only on a project basis, but in terms of how it will affect the cash flow of the Group as a whole. Inland procures funding from a number of sources, including joint ventures and loan finance. However, a major source of funding is using our own equity, and a holistic decision has to be made on whether certain consented sites should be realised into cash to finance future projects and overheads. The inbuilt flexibility and agility of this model allows us to operate sustainably, and undertake projects which deliver sound returns for our shareholders.
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This value chain describes the stages of a project, showing the value that Inland add to a brownfield site, transforming it for their customers, and the returns subsequently delivered to shareholders and broader stakeholders.
Our local insight and established relationships with vendors and public sector bodies mean that we are always aware of opportunities to increase our land bank.
Our financing resources and strong reputation as being trustworthy and reliable mean that we can act quickly to secure promising sites.
Achieve Planning Permission
Once a site is acquired, extensive research and stakeholder consultations continue to prepare our bids for planning permission. Our record of achieving planning permissions on sites is second to none.
Sell Land with Planning Permission to Developers
Once consent is achieved, we have the opportunity to sell the site with planning permission to developers or housing associations for a short term return.
Sell Part of the Site
By selling a portion of a site while carrying out infrastructure works and housebuilding on other parts, we deliver revenue in the medium term.
Develop the Whole Site
Building a whole development takes longer but maximises the revenue a site can deliver over the long term. We undertake construction using trusted contractors, establishing strategic partnerships that are cultivated over many years.