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Portland House appraisal

Client:

North East Local Enterprise Partnership

Study objectives:

• Review of application documents including development appraisal;
• Identification of significant gaps and queries;
• Completion of Green Book appraisal; and,
• Identification of final grant offer based on revised viability gap analysis.

We were appointed to a Framework Agreement for the Provision of Programme and Fund Management Services for the North of Tyne Combined Authority and North East Local Enterprise Partnership following a competitive procurement exercise.

We were commissioned to complete an independent appraisal of the Portland House scheme. The scheme will create 5,950 m2 of Grade A refurbished office space in Newcastle city centre by May 2022, and secure 495 gross jobs by March 2024. The application was submitted seeking a grant to fill the viability gap and enable the development to proceed.

We reviewed the Full Business Case and over 20 supporting documents including site plans, market research, the development appraisal and Subsidy Control advice. We issued a Query Log with all our questions relating to the business case and supporting documents, and liaised with the applicant to discuss and resolve all outstanding matters.

We completed the North East Local Enterprise Partnership’s appraisal template which reflects HM Treasury’s Green Book requirements. We found that the scheme had a strong strategic rationale and addressed an identified gap in Grade A office space in the city. We analysed the scheme’s additionality and compared projected income levels with similar schemes in the city. We thoroughly tested all costs to ensure that they reflected industry benchmarks.

We completed our report and liaised with staff from the North East Combined Authority as they resolved the recommended contractual conditions we proposed.

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