Brownfield Site Acquisition: Six Ways To Reduce Your Liability

 Land for development comes at a premium, however brownfield development sites offer a potentially cheaper market entry alternative. Prospective developers choosing this route are best advised to seek the advice of a professional to mitigate any risks.

In this week’s blog article, it is my pleasure to introduce the author Rob Allen, an environmental consultant specialising in the assessment of land quality for developers:

As an environmental consultant specialising in assessment and remediation of contaminated land, I am regularly contacted by developers looking to acquire brownfield sites.  Cleaning up pollution can be a costly process so naturally, my clients look to mitigate these risks wherever possible.  In this article I have distilled some of my usual advice into six key points.

1.) Risks from Contamination Might not be Obvious

Clearly, if you are purchasing a chemical factory or petrol filling station, then considering the risks from contamination and tenancy deposit scheme claims should factor highly in your due diligence.  However, the risks from the historic use of the site should also be considered.  Vacant or undeveloped sites can often be affected by pollutants, which may have been released as a result of a former industry or process, leaving the current owner with the liability.

2.) Property Searches are a Good Place to Start

Basic property searches, such as Landmark Envirosearch can give an indication as to whether a property is likely to be classified as ‘Contaminated Land’ under Part 2A of the Environmental Protection Act (1990).  However, just because the site has not been determined as ‘Contaminated Land’, does not guarantee that it will be suitable for use within a planning context.  Upgrading to a property search that includes a detailed set of historic maps can give some additional insight into the history of a property.  For example, the maps below show an area that was formerly used as a gas works, before later being redeveloped for residential use.

3.) Speak to your Local Planning Authority

The Environmental Health department of Brent Council holds a list of potentially contaminated historic sites and as of November 2014, there were 1778 entries.  The Contaminated Land Officer will be able to determine if a particular property features on this list, or if it has already been determined as ‘Contaminated Land’ under the Environmental Protection Act.

4.) Don’t Ignore the risks for Existing Development

Prior to the early 1990s, legislation for brownfield site assessment was much less comprehensive than it is today.  Particularly in the post-war period, a large number of sites were redeveloped for residential use with little attention paid to land quality.  If a property has not changed hands for a number of years, the existing owner may be unaware of any historical issues, which could be flagged during conveyancing or following submission of a new planning application.

5.) Consider Commissioning a Phase 1 Environmental Desk Study

If concerns as to the history of a property remain, then it might be useful to commission a Phase 1 Environmental Desk Study.  This exercise will consider any potential sources of contamination in the context of the site’s proposed end-use and includes a risk assessment to determine if a legitimate risk to future users or the surrounding environment could exist.  A Desk Study is a common planning requirement for proposed residential redevelopment, so it can often save time by completing this work at the pre-application stage.

6.) Site Investigation

Even after the most thorough due diligence, the only comprehensive way to establish if contamination exists at a site is to complete some physical investigation.  This work can take many forms however, it doesn’t necessarily have to involve the use of expensive plant and equipment.  Often, just collection of a few shallow samples by hand can provide a useful diagnosis into the condition of an area.  The vendor may also be willing to cover the cost of such work, especially if it can serve to expedite the sale.

Although serious issues from contamination are rare, comprehensive due diligence prior to site acquisition can prevent serious headaches at the development stage.  Sequoia Environmental (www.sequoiaenvironmental.co.uk) specialise in brownfield site assessment and Phase 1 Environmental Desk Studies for planning.  If you have any concerns regarding contaminated land feel free to get in touch via the website for a free consultation.