Development Appraisals
Analyse the financial performance of a development scheme with detailed cash flow modelling.
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We will never share your information with anyone.
Key Outcomes
Analyse the gap between market prices and investment value (worth), to help support buy / sell decisions for an asset
Use detailed cash flow models to help manage the amount and timings of both expense and revenue items, helping to improve project profitability and IRRs
Define multiple sources of equity and debt capital, along with any preferred returns or timing conditions, to help structure project financing and communicate performance at the investor level.
What are Development Appraisals?
Development appraisals are a financial planning and analysis tool for development projects. They provide insights into the financial performance of a project based on a cash flow projection.
What benefits do Development Appraisals offer?
Development appraisals produce valuable outputs that help support investment decisions, asset management planning, and capital structuring. Appraisal outputs include:
- Investment KPIs – internal rates of return (IRR),ย multiples of invested capital (MOIC), return on equity (ROE), loan-to-value (LTV). These measures help investors and lender to see how efficiently the project uses its capital to produce profits.
- Project KPIs – profit on cost, profit on GDV. If a fixed land value is assumed, development appraisals can provide project profitability measures.
- Land valuationย – where a land value is not fixed, project profitability can be set at a fixed value of either profit on cost, or profit on GDV. This produces an appraisal in which profit is treated as a project cost, and the residual sum represents a land value.
- Input sensitivity – development appraisals can provide insights into what would happen to certain KPIs, such as land value, if input variables, such as project revenues, where to increase or decrease.
Who are Development Appraisals for?
Development Appraisals can be useful to a varied group of project stakeholders:
- Developers – helping to decide on land values for acquisition, project management, and capital structuring.
- Landowners – helping landowners to understand development options and values for their land, either in the course of planning a project, or in review of a developer offer.
- Professional services – helping accountants, legal and insolvency teams who want to assess the financial aspects of a development project on behalf of their client.
Our Development Appraisal Support
Our development appraisal support helps clients to understand project cash flows, sources and uses of capital, and input sensitivities. This process takes into account factors such as local market conditions, construction costs, capital market conditions and project financing structures, to create a detailed cash flow analysis. This provides the basis of objective advice on strategies to maximise risk-adjusted performance.
Call Me Back
We’ll call you back within 30 minutes during work hours, and leave you a message if we can’t get through.
We will never share your information with anyone.
