Development Appraisal

The decision to proceed with a development is a significant commitment and our approach to Development Appraisal provides a factual basis to support investment.

 

We know that a Development Appraisal can be sensitive to even small changes in cost or income parameters.  With relatively small margins in many development sectors this can make the difference between a project being viable or not.  We establish overall development budgets benchmarked against sector data and assess the residual value generated by the revenue streams.  Viability is tested by sensitivity analysis of variations in the cost and income lines.  Cost variations can be modelled to show the impact of changing the quantum of development or changing the specification of base build or fit out elements.  Income changes may result from these cost changes or they may arise from different operational assumptions.

 

Our experienced property professionals draw on specific knowledge from all development sectors across a range of project values.  Our ability to see the development through the eyes of the developer gives a real world view on the residual value of a development.