Real Estate Development Investor Pitch

I need a professional presentation for a real estate development project aimed at attracting investors. The presentation should be visually engaging and comprehensive, focusing on the following key aspects:


Shareholders Presentation

Development Opportunity: 2 Chapel Street, Newhaven, East Sussex, BN9 9PN
1. Project Overview

Site: Former Newhaven Social Club, 2 Chapel Street, Newhaven, East Sussex BN9 9PN
Planning Application: LW/22/0152 (Approved)
Development:
Demolition of existing building
Erection of 2 and 3 storey building
6 x 2-bedroom flats (C3 residential) on first and second floors
5 x business units (Class E) on ground floor
2. Planning Application Details

Detail Notes
Planning Ref LW/22/0152
Date Granted Permission valid until March 2025
CIL Payment £76,213 payable before commencement
Section 106 Agreement None (reduces obligations/cost)
Parking & Access Local committee raised concerns; no dedicated parking shown on plans
Construction Management Plan Required to ensure traffic and noise controls
3. Positives & Opportunities

Prime location in Newhaven town centre with mixed-use potential
Approved permission for both residential and commercial uses
6 modern 2-bed flats, catering to growing housing demand
5 commercial units with flexible Class E usage (retail, office, restaurant, etc.)
No Section 106 obligations — lower upfront developer costs
CIL cost known and fixed (£76k) — financial certainty
Site size approx. 0.6 hectares (0.15 acres) — room for efficient development
Estimated total internal area ~7,420 ft²
4. Risks & Challenges

Parking: No dedicated parking proposed for flats or shops — could affect marketability
Local concerns: Committee raised issues about access and parking management
Construction management: Must submit an approved plan to manage impact on neighbours and highways
Market risk: Newhaven commercial market is secondary; may affect letting or sale speed of units
Cost inflation: Build cost increases could squeeze profit margin
5. Development Cost Summary

Category Low Estimate (£) High Estimate (£)
Land Purchase Price £525,000 £525,000
Construction (Residential + Commercial) £1,127,000 £1,275,000
External Works £113,000 £191,000
Professional Fees £90,000 £150,000
Contingency £70,000 £130,000
CIL Payment £76,213 £76,213
Total Development Cost £2.001M £2.247M
6. Resale Value Estimates

Asset Estimated Value Range (£)
6 x 2-Bed Flats £1.26M – £1.41M
5 x Commercial Units £625k – £700k
Total GDV £1.885M – £2.11M
7. Profit & Margin Estimates

Metric Low Estimate (£) High Estimate (£)
Gross Development Value (GDV) £1.885M £2.11M
Less Development Cost £2.001M £2.247M
Estimated Profit -£116k (loss) -£137k (loss)
Profit Margin (%) -5.8% -6.5%
8. Location & Market Potential

Newhaven is undergoing regeneration, improving its attractiveness to residents and businesses
Residential demand increasing, with lack of modern flats in town centre
Commercial units suitable for retail, café, small offices, or community uses under Class E
Proximity to transport links including rail and port enhances appeal
Competitive pricing compared to surrounding towns provides investment upside
9. Final Conclusion

At a purchase price of £525,000, the current development cost and resale value estimate indicate a potential loss under current assumptions.
To achieve profitability, cost reductions or higher sale prices are needed, or alternative income streams (e.g. lettings) should be considered.
Key areas to focus:
Reduce construction and professional fees
Improve commercial unit sale/rent prospects
Address parking concerns to boost residential values
Absence of Section 106 and fixed CIL are positives but alone do not ensure profit at this land price.
Recommendation: Negotiate land price or seek value engineering to improve margin.
Thank you!