You are instructed by the claimants of Property A to advise them in connection with a confirmed Compulsory Purchase. The Acquiring Authority announced a major redevelopment scheme in Midtown in April 2024 and have steadily

CRN 63466 / CRN 63467 Assessment Brief 2026

To be used for all types of assessment and provided to students at the start of the module. Information provided should be compatible with the detail contained in the approved module specification

Assessment Task Details and Instructions

TASK A

You are instructed by the claimants of Property A to advise them in connection with a confirmed Compulsory Purchase. The Acquiring Authority announced a major redevelopment scheme in Midtown in April 2024 and have steadily moved forward in acquiring property to assemble the redevelopment site since this date prior to a Compulsory Purchase Order (CPO) being confirmed. The CPO was confirmed on the 20th August 2025.

The Acquiring Authority require possession of Property A by 1st September 2026.

Taking account of all the information provided and adding any necessary assumptions advise upon the likely compensation payable to the claimant (or components of claim where a figure cannot be derived).

PROPERTY A comprises

CLAIMANT – Hobson’s Engineering (Freeholder)

Two commercial workshops known as Unit 1 and Unit 2 Boundary Industrial Estate. The building is of typical brick construction, northern roof lights with steel cladded fronts,

Unit 1 Owner occupied 4,000 sq ft (GIA)

Unit 2 3,200 sq ft (GIA). Let to Fix Up Your Car Limited on FRI terms for 9 years commencing 1st April 2022 with 3 yearly rent reviews.  Current rent passing £10,000 per annum.  The April 2025 rent review was not carried out as the tenant had complained about the uncertainty of their business due to the CPO.

Hobson’s Limited wish to relocate and have identified a relocation premises, which comprises 12,000 sq ft situated three miles from the subject site.  The asking price is £700,000 although the roof requires immediate repair. The freeholder would like to retain their tenant in the relocation premises and the tenant has agreed although they would like to take the opportunity to move into larger premises so that they may expand their business.

Nature of Businesses

Hobson’s Ltd: Manufacturer of steel parts for Electric vehicles.  The business has three major clients and relies upon six sophisticated machines working 24 hours a day, seven days days per week.

Please note:

A large order worth £3.0M has just been received by your client with a deadline of 31st October 2026 for delivery and they would like to stay in occupation of their existing premises until at least the 1st April 2027.

Supplementary Information

PROPERTY A FREEHOLDER:

List of Evidence/Suggested Costs

1. Relocation of Machines

Quote 1 – Remove and re-install     £200,000

Quote 2 – Remove and re-install including 24-hour breakdown call for 6 months      £300,000

A Plant and Machinery Specialist has advised that there is a possibility that the machines may not function properly if they are not properly installed or serviced when re-located

Plant and Machinery Valuer Fee         £9,000

2. The cost of buying reconditioned machines (as an alternative to removing current machines)  £600,00

3. Staff training on new machines      £12,000

4. General Removal Costs     £15,000

5. Urgent Roof Repairs to the relocation building £25,000

6. Renovation costs for relocation premises to convert the building into two units.  One for owner occupation, the remainder for the tenant. Each unit will comprise 6,000 sq ft (GIA) £250,000

7. Installation of IT equipment, telephones, etc., to both units £24,000

8. Publicity Costs (Newspaper Advertisements, TV advertisement)  And New Web site     £8,000

 9.  CCTV and alarm systems    £15,000

10. Staff Over time 500 hours at £20/hr    £10,000

11. Surveyor’s fees (claim, surveys of new premises, etc.) £275/hour

12. Legal fees (conveyancing for sale and purchase)   £20,000

13. Temporary loss of profits (estimated)  £40,000

14. Shadow Period Losses   £31,345

15. Signage for new premises, repainting vehicles, etc. £15,000

16. Cost of Building Regulations Fees for internal works £5,000

17. Medical expenses due to the stress caused by the CPO (Doctor’s note provided)        £7,200

18. Re-opening launch event  £3,000

19. Post Possession Losses  £TBA

Other Issues

Hobson’s Ltd have requested an advance payment upon submission of the claim in the sum of £500,000 to be able to proceed with the purchase of the new premises

Fix up Your Car Limited have just been fined for breach of Driving Standards Agency Regulations

Comparable Transactions

1. Industrial premises comprising 3,500 sq ft let on the 1st March 2025 on FRI terms for 3 years at a rent of £18,375 p.a.  Situated 0.25 miles from the subject property and is of similar construction type and condition.

2. Industrial premises comprising 9,000 sq ft let on the 25th August 2024 on FRI terms for 5 years with no reviews at a rent of £40,500 p.a.  Situated on the same estate as comparable 1.

3. Industrial premises comprising 17,500 sq ft situated two miles from subject site let at £61,250 (FRI terms) from 30th January 2025 for 6 years.  The freehold has recently sold for £875,000.  Premises in comparable condition to subject property.

You are asked to prepare a Report and Claim schedule for your clients which would form the basis of the claim. You will be provided with additional information to assist with this Coursework as lectures are delivered.

TASK B

Provide a brief Report to a client who has asked you what the difference is between Statutory and non-Statutory valuation, in particular in connection with how non-domestic taxation works.

TASK C

Provide Asset Valuations for the following assets:

1. An industrial unit which is over-rented. Rent passing is £24,000pa with a Market Rent of £14,000pa. Tenant is considered a weak covenant. The property is located in Salford.

2. A School comprising 2,400sqm situated over two floors built of stone in 1845. The School has two extensions, one built in 1975 of traditional brick/block comprising 200sqm and the other which forms a high specification modular building to house a swimming pool. This comprises 225sqm. The playing field is 0.45hectares and there is an outdoor Sports Pavilion comprising 175sqm of concrete frame construction built in 1980. There are also three stone built storage buildings built at the same time as the main school. The School accommodates 600 pupils