DUE DILIGENCE STUDIES

Every study area is characterised by a number of primary opportunities and constraints that relate to the desirability and viability of undertaking an appropriate development project that builds on the comparative economic advantages of the area. Determining the potential of a development in a study area is a critical component of any prospective developer’s decision to develop and as to the type of development likely to succeed.

WHY A DUE DILIGENCE STUDY?

A decision to undertake a particular development project is not just down to financial feasibility anymore. The current legislative framework requires that the competent authority, when considering a development application, must comply with all applicable legislation and any relevant guidelines.

A prospective developer must therefore, within the overarching legislative framework, take into consideration the possible development restrictions associated with a particular site in terms of the array of policy and spatial planning instruments together with the general development restrictions in terms of its zoning, location within a particular receiving environment, proximity to roads and railways, available bulk services, etc.

This implies that the prospective developer must either have the knowledge to make the determination or a group of specialist consultants must be appointed to undertake the investigations into the feasibility and desirability of the project.

Zone Land Solutions understands the complex economic and legislative framework within which development projects are undertaken. We are able to investigate opportunities and constraints and put forward recommendations which will lead to an informed decision.

We achieve this through:

• the study of policy and spatial planning documents that are of relevance to the study area
• communication with relevant government departments, municipalities, other authorities and agencies
• field studies

GENERAL PURPOSE OF A DUE DILIGENCE STUDY

• Identify and list the environmental, social and economic characteristics of the study area that would have to be considered if the current land use zoning of the area were to be changed
• Develop an understanding of the legislative and policy context within which any future land use would have to be considered
• Determine the potential availability and key aspects of essential resources and bulk services in the study area
• Provide clarity, to the extent possible, regarding other primary considerations that would be of relevance when considering a development in the study area.
• Identify and list key aspects to be considered in the planning of any development on the study area
• Summarise the potential constraints and benefits of the study area as they relate to a possible change of land use to provide for any form of development