Page 113 - planet_rent

7.3 Budget No. 3 - CAPEX Budgeting

7.3.1 In the longer term returns are a function of your build and fit out choices so durability needs, in our
opinion, to be considered alongside ‘rent drivers’ and fit out. At Ringley it is our Building Engineering
Team who read plant manuals and prepare CAPEX pricing, either by detailed liaison with your Quantity
Surveyor, benchmarking comparable prices from other projects and/or using pricing books. As the
design develops during RIBA Stages 3-4 and plant/asset registers become clear CAPEX plans can be
refined and revised in light of the specific plant installed. Later as the date of works approaches our
Building Engineering team can write specifications analyse tenders and let projects.

Life cycle modeling is carried out for key building elements and split into two expenditure heads
(1) Apartments, and (2) Communal areas and plant, for example:

Communal areas & plant CAPEX Apartments CAPEX

 Roofs  Kitchens
 Façade cladding (maintenance/seals)  Bathrooms
 Lifts  Appliances (white goods)
 CHP plant, boilers, pump sets, switch gear  Furniture
 Fire alarms, smoke alarms  Equipment (HIUs, air handling units etc..)
 Air-conditioning/cooling  Curtains/blinds
 Concierge/Front Desk station  Floor coverings
 Floor coverings  Decorations
 Decorations  EPCs

Whilst the G15 landlords in the social sector work to kitchen life cycle costing at 20 years and
bathrooms at 25 this is clearly not realistic for a Build to Rent Client wanting to retain the
competitive edge. What is crucially important is for bathroom suites to be non-fancy and not overly
trendy so they don’t age too quickly. Typically we would model these at: 10 years for kitchens and 15
years for bathrooms.

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