Extracting Minerals
Having run a competitively contested tender exercise in mid-2016, the Model Estate selected a preferred candidate to progress the development of the 3 million tonne sand and gravel resource previously identified.
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SYNDICATE SHOOT
FISHING RIGHTS
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As per the provisions of the tender, the Estate entered into an option to lease with a major UK mineral operator, Quarry Co., with the trigger within the Option being the successful grant of planning permission.
During the two-year period since the execution of the Option Agreement, Quarry Co. commenced the preparation of a detailed planning application supporting the phased extraction of sand and gravel from the Estate’s landholding. In addition, proposals for mineral extraction are accompanied by a further proposal to undertake restoration to original ground level through the importation and disposal of inert waste materials.
The planning application was accompanied by an Environmental Impact Assessment, seeking to mitigate risk to other parts of the Estate. Through pro-active consultation, the Estate worked with Quarry Co. to ensure that the proposed works delivered best value from their mineral asset, whilst also presenting a positive future end use for the subject land upon completion of works.
A planning application was ultimately submitted in late 2018 and presented to Planning Committee for a scheduled decision in mid-2019. In supporting a requirement for biodiversity net gain, the original application presented to the Mineral Planning Authority was amended prior to submission to include limited areas of wetland and habitat creation and peripheral woodland planting.
Planning permission for mineral extraction was subsequently granted in autumn 2019, subject to planning conditions and s106 and s278 agreements. Following the Estate and Quarry Co.’s collective commitment to these, the option was triggered by Quarry Co. in accordance with the approved plans and efforts to discharge various planning conditions have begun.
Preparatory works took place over the winter months and soil stripping across the 25 acre area is due to commence in early 2020. The Estate expects to see Quarry Co. begin extraction and the sale of sand and gravel under lease arrangements in late summer 2020. Under the current lease arrangements, the sale of the extracted minerals will provide a future revenue stream, via rent and royalties, for the Estate payable in the final quarter of 2020.
EMAIL PAUL
01743 213269
Partner
Paul Clarke
For more information please contact our minerals expert:
"...the original application presented to the Mineral Planning Authority was amended prior to submission to include limited areas of wetland and habitat creation and peripheral woodland planting."
Leisure Opportunities
Carter Jonas, on behalf of the Estate owners, sought advice from the local planning authority to redevelop the land post-mineral extraction. Given the location of the 25 acres in question – close to the river with its scenic landscape – and with the provisional woodland planting, in accordance with the mineral extraction planning application, options for a leisure facility were explored.
Glamping facility
These facilities are flexible in size and require little infrastructure. Planning permission is likely as they have limited impact on the environment. This facility would suit families and couples. Private washroom and kitchen facilities can be included within each unit but can also be communal, which can include a combination of shepherd huts, yurts, pods or safari tents. There is a limited letting season, due to the style of the accommodation and they will also need to be removed from the land each year during the off-peak season, which can be time consuming and costly. An adequate drainage system and water and electricity supply are required and will need to be incorporated into the planning application.
Self-catering cottages
The target market for self-catering cottages or lodges is both families and couples. Each building will have a kitchen, bathroom and bedrooms being self-contained, and therefore occupation can be expected all year round. There are limited redundant barns or buildings on the Estate that can be converted into cottages, therefore all development will be purpose built or new build. Gaining planning permission for units with river frontage, which would be an attraction, may be challenging as this will disrupt the open countryside and may pose a flood risk.
Conclusions
After analysing the various schemes, repurposing the land for use as a glamping facility was selected as the most viable option for a leisure development, due to limited impact on the environment and its low development costs against the alternatives mentioned above. A planning application has been approved for the five acres of quarried land to accommodate 10 glamping units surrounding the river, spaced apart adequately, a new reception building to include a shop, office and managers accommodation to run the business. Furthermore, the rear of the building will include a communal luxury shower block with WC facilities, a kitchen and dining area with washing up facilities. Associated landscaping and a car park, access road to which will be via the existing tracks, are also included. The development will commence in summer 2020, with completion expected within 9-12 months.
Wedding venue
The picturesque setting by the river would suit a wedding venue, although would require an agricultural barn or building that can be converted to accommodate up to 100 guests, in addition to WC facilities, a commercial kitchen and gravel car park. Planning permission can often be difficult to obtain due to the potential increase in traffic in the area and there may be opposition from local residents who are concerned about noise pollution.
Hotel and spa retreat
The location, within commutable proximity to large cities including London and Birmingham, makes it ideal for couples looking for a weekend break. This is likely to be the most expensive development, due to its size, scale and level of build quality, therefore holds the highest risk. Planning permission for a new build scheme would be difficult due to the size of the project in the open countryside.
EMAIL Stephen
01823 428854
Associate Partner
Stephen Richards
For more information contact Stephen Richards (Leisure)
or Johnny Clayton (Masterplanning)
EMAIL JOHNNY
020 7518 3226
Partner
Johnny Clayton
Read more on the Model Estate...
The Model Estate was valued at £39.75 million in December 2019, representing a modest but respectable annual increase of 0.8%...
Model Estate components & performance
How did the Model Estate rank amongst the alternative asset classes?
Model Estate v
The Asset Classes
The Model Estate was valued at £39.75 million in December 2019, representing a modest but respectable annual increase of 0.8%...
Model Estate components & performance