The King Alfred redevelopment is viable and offers exceptional value for Brighton and Hove
Following the publishing of elements of the District Valuer’s report, which was commissioned by the local planning authority to give an independent assessment of the financial viability of the King Alfred project, Karis has reaffirmed the viability of the scheme.
The summary report was founded on figures supplied by Karis but utilized a general guide on building costs published by the Building Cost Information Service to estimate the construction costs. Karis meanwhile has taken more detailed costings produced by a team at Davis Langdon, the UK’s largest cost consultancy, who have been working for two years on the scheme and have the advantage of latest detailed ‘Stage D’ design drawings. These figures are more robust and confirm the project is profitable.
Commenting on the report’s findings Josh Arghiros, Karis MD, said: “We welcome the District Valuer’s report as it highlights sensitivities in the construction costings which are helpful to our own projections. However, with the UK’s leading firm of cost consultants as part of the development team providing in-depth professional advice, we are confident we have a viable project with enormous benefits for Brighton & Hove.”
The District Valuer’s report does conclude that Brighton and Hove is receiving a very favourable package of benefits, including:
* ‘Flagship’ leisure facilities for the community
* A landmark development constructed to a very high specification and complying with sustainability and high energy efficiency requirements
* 280 affordable homes constructed to a similarly high specification
* New public realm
* Potential share of profitability over a certain level of profit on costs
Commenting further Josh Arghiros said: “We have spent two years working with Brighton and Hove City Council to build a viable project that will meet all the City’s requirements for this site. We have signed a Development Agreement with the Council that has been endorsed by Councillors at two Policy and Resources committee meetings, which ensures that the development will secure more community benefits for Brighton and Hove than any other scheme proposed for the City has ever done. This also proves that allegations of extortionate profits from the project are completely unfounded and highlights that any increase in profitability will be shared with the City.
We are confident that we are on track to deliver an outstanding development.”
