Construction & Development

CONSTRUCTION & DEVELOPMENT
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Executive summary
The global economy has been changed by the financial crisis experienced in 2007 leaving
nations, businesses as well as peoples with the task of deleveraging of great magnitude with
hopes of making right their financial direction in the uncertain and turbulent economy. The
report provides an analysis of the highest and best use of proposed development on a site
located in South Australia. The developer aimed at investigating the economic viability as
well as the profitability of construction of an office building, development of a community
center or hotel development. The highest and best value analysis would be used in making a
comparison of the mentioned options against each other. The report is divided into sections
including introduction, site analysis, planning analysis, economic context, market analysis,
design and cost, financial viability and then recommendations.
Introduction
This report is aimed at producing the highest and best use analysis for the purposes of
production of the highest value for a given property based on the maximum productivity
concept. The site on which the analysis is done is located at the junction of Poultney Street
and Angas Street in Adelaide city center, South Australia. Bowes Street passes on its Eastern
side parallel to Poultney Street. It is legally identified as Allotment 290 – 304.
Figure 1: Site Location Map

Site analysis
The site is located at the junction of Poultney Street and Angas Street in Adelaide city center.
One of the main competitive advantages of this site is the ease of its accessibility. The site is
accessible by three main streets making it a highly profitable site as far as development is
concerned. Still, the topography of the site is such that it is fairly flat and properly maintained
making it very easy to develop and hence saving the developer a lot of costs. The site covers
about 0.28 ha of land (Morano, Locurcio and Tajani, 2016). Poultney Street is perceived as a
quintessential illustration of the new urban village providing a robust transit-oriented
community as a result of the three main streets that enable unlimited and very easy access. Its
vibrant business friendly surrounding is epitomized by the science, trade associations as well
as technology that is found here. The classic demographics of its surroundings are just but
one of the numerous proofs demonstrating this point.
Owing to the location and nature of the site, various developments can be attained including:
 Office buildings
 Commercial structures that may be inclusive of parking spaces in the basements since
the site is used for parking at the moment (Herold, Liu, and Clarke, 2013)
 A community center that brings together the dwellers of the city and breaths fresh life
into the city
The site is at the moment enhanced by parking for 120 cars with the topography being
relatively level hence providing no projected complications with regard to the development of
the region.
Planning analysis
Poultney Street is zoned Capital City Zone which acts as the economic as well as cultural
attention of the State and is inclusive of an avalanche of community, employment,
entertainment, educational as well as tourism facilities (Maxwell, 2016). It is expected that an

increase in the human population within this Zone would be competitive of the experienced
as well as the range of opportunities offered in the city alongside enhancing the vibrancy.
Determination of the real types, as well as densities of uses, will be attained through the
process of site plan approval based on the features of the site, heights as well as maximum
densities. The need for community facilities, landscaped areas as well circulation and open
spaces would also be taken into consideration during the determination of the density and
heights.
A more enhanced review of the site inclusive of discussions indicates Poultney Street is
controlled by a certain exception, site plan 28 which was approved during the second
amendment. The intent of Site Plan 28 means the cumulative gross area should not go beyond
a floor area ratio of 3.25 that would basically allow the development of a property 0.28*3.25
square ha. Nevertheless, a more detailed analysis is needed to establish the maximum
permissible building which may be developed on the site.