Having just received this week's Brighton And Hove Leader, which includes a leaflet from Karis about the King Alfred Development, I am intrigued by the figures it provides.
The total development cost is clearly shown to be £290 million (which presumably includes the £46 million building costs for the leisure facility) and according to Karis, they will be selling 472 flats at full market value and 282 affordable homes at 50 per cent of market value.
This is, therefore, the equivalent of Karis selling 613 flats at market value.
Based on these figures, it is to be assumed the average cost of each flat is estimated to be £290 million divided by 613, which is £473,000.
However, this figure does not include any profit for Karis and it is not unreasonable to suggest it would expect a profit margin of at least 20 or 30 per cent, which would put the average price of each flat at £567,000 to £615,000.
Can someone please explain to me how Karis can proceed with the risk of this proposed development based on these figures.
-Colin Beard, Hove
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