Taylor Scott’s Land Investment Overview

strategic-land-investment

Taylor Scott International specializes in strategic land development throughout the world. The approach is focused on risk mitigation while maximizing project returns and is borne from the team’s profound market experience and its established network of industry relationships. These two factors generate leads to identify opportunities, which are then assessed intensively for their financial merit.

  • Investor Relations
  • In Practice
  • Market Research
  • Deal Sourcing
  • Site Analysis
  • Asset Advisory
  • Exit Strategy

Investor Relations

Taylor Scott International places special emphasis on managing its investor relationships to the highest standards, aspiring to be “best in class.” The senior team has extensive experience in operating successful joint ventures (JVs) and third-party investment vehicles. As a consequence, investors with Taylor Scott International can be confident in the management team’s highly professional service and expert property skills to deliver consistency and excellent results.

In Practice

Our land team looks at dozens of sites each year, which it sources either directly itself or indirectly through a wide network of contacts across the traditional and alternative real estate sectors. Our focus is predominantly on major cities and towns that are located in high population density growth areas that are experiencing housing shortages.

A key element of Taylor Scott International’s site assembly strategy is for each property to have its own fully appraised business plan focus on real estate and financial management opportunities, thereby identifying where to “add value” and enhance land values.

At least two members of our Board of Directors are involved in the due diligence and underwriting phase of acquisition; as such, the implementation of a business plan for each asset is a seamless process. On acquisition, the implementation of the business plan becomes the responsibility of two Taylor Scott International asset advisers, one from the planning team and one from finance, and they act as “lead” and “wing man” for each investment. The advisers act as project managers by assembling and directing a team of leading real estate professionals, such as architects, legal advisers, planning consultants and any others that are specialists in a particular real estate sector or geographic market and are required for the task. Our advisers are in constant communication with this team and meet frequently and regularly so that all the business plan initiatives are addressed and implemented in a timely manner.

We believe that a business plan should be considered a tool by which to maximize value and returns and should be continually appraised and updated, changing it where necessary to suit market conditions and circumstance. We also ensure we have a relationship with local authority officers (planning, etc) and local politicians and various other relevant representatives of bodies and groups that are essential to the success of any site assembly project.

Site Acquisition and Risk Mitigation Methodology

Market Research

Taylor Scott International operates a “top-down” analysis of macroeconomic trends in the wider economy as well as demographic, social and political trends or influences to identify land opportunities and growth areas adjacent to major cities.

Site-specific research and analysis of opportunities is carried out by looking at individual assets and specific opportunities to create value through planning and design around those assets in their local market.

Deal Sourcing

The Taylor Scott International team, through years of presence in the real estate markets and proactive contact management, has built up a considerable network of high-level contacts throughout the land development arena, including statutory bodies, banking, corporate finance and commercial agents, to ensure that we maximize the opportunities to source deals off market as well as having first sight of on-market deals. However, through the work of our land teams on the ground, most sites are acquired directly from the original owner, farmer or business.

Taylor Scott International has national exposure through its network of regional consultants in addition to its in-house expertise, and we ensure that we stay up to date with trends in the local growth markets, as well as maintaining our important contact base there.

Site Analysis

Our land team, in conjunction with the finance team, carries out an initial financial / conceptual analysis to establish whether an opportunity is worth looking at in more detail. Many opportunities that come across our desks do not make it past this stage, on the basis that the quality of the land site is not high enough or we do not feel that it is in a growth area.

The Board of Directors is involved at an early stage and on a regular basis sees all new opportunities that make it through the initial screening. Therefore, all members of the Board are involved in the analysis and selection of a new opportunity from an early stage.

Detailed financial modeling follows the initial screening. A detailed financial model is created so that all assumptions can be flexed to present a range of scenarios, from the base case to those required to achieve super-returns. This enables us to see clearly what factors the project returns would be most or least sensitive to.

Before we acquire any land site, we carry out extensive due diligence together with our planning and site investigation teams, valuers and legal and tax advisers. This enables us to identify any risks that may exist; for example, site investigations will determine any infrastructure or remediation requirements, which may affect the final net value, achieved per acre; legal searches will detect any covenants or VAT (value-added tax) liabilities that must be taken into account. This ensures that we are fully aware of the status of the site we are investing in and that we have correctly assessed our investment return and financial exposure as a result of such a transaction.

As a result of the detailed due diligence that we carry out at pre-acquisition, our planning experts are able to put together a detailed business plan to ensure that each site is effectively promoted through the planning process and that design efficiency is utilized to maximize profitability.

Final Board sign-off is required before any recommendation is made to the Global Investment Manager (GIM) of the Taylor Scott International Strategic Land Manager or to other clients or before any indicative or binding offers are submitted on their behalf. Each acquisition recommended by the Taylor Scott International Advisers Board of Directors is independently analysed by the Strategic Land Manager.

Taylor Scott International is a cash buyer and does not use debt to finance any of its projects.

Asset Advisory

Taylor Scott International has comprehensive in-house asset advisory capability to oversee all land sites through the planning process. We have a very hands-on role in managing our land portfolio. Leading industry experts and specialist teams are appointed to develop project-specific technical solutions, while Taylor Scott International takes control of the site assembly-specific opportunities and all strategic decisions such as design work and submitting planning applications.

Site assembly projects under management with Taylor Scott International have specific returns criteria based on internal rate of return (IRR) expectations. Project expenditure is rigorously scrutinized to ensure that cost savings are accrued throughout the life of each project, always aiming to exceed IRR expectations. 
 A detailed business plan is put together as a result of the due diligence carried out prior to acquisition, and it is monitored and updated regularly.

We hold fortnightly meetings to discuss each of our assets in detail to be certain that every opportunity is maximized and that we are constantly on top of the assets’ performance.

Exit Strategy

We make sure that we maximize the potential gain of our assets upon a forward sale by working with top-tier end developers, always carrying out buyer due diligence and ensuring that we appoint the best-placed agent to handle the sale on our behalf. Our extensive contact network among major national and regional house builders means that we also maximize the potential for unsolicited off-market disposals.

Taylor Scott International’s position as a site assembly specialist and our close relationship with national house builders mean that most sites can be sold by way of a private treaty or off-market transaction, indicating simply that a piece of land is sold without the help of an auction or agent. The Taylor Scott International exit strategy team is dedicated to working with key regional house builders in order to ensure that a forward sale is agreed in advance of the award of planning permission and is executed on the best terms, with the most notable developers and at the best price.