Financial Feasibility Studies for Property Development
Financial Feasibility Studies for Property Development - Theory and Practice (Paperback, 3rd Edition)
Description
Essential for any real estate professional or student performing feasibility studies for property development using Microsoft Excel and two of the most commonly used proprietary software systems, Argus Developer and Estate Master DF.
This is the first book to not only review the place of financial feasibility studies in the property development process, but to examine both the theory and mechanics of feasibility studies through the construction of user friendly examples using these software systems. The development process has seen considerable changes in practice in recent years as developers and advisors have adopted modern spread sheets and software models to carry out feasibility studies and appraisals. This has greatly extended their ability to model more complex developments and more sophisticated funding arrangements, saving time and improving accuracy.
Tim Havard brings over 25 years of industry and software experience to guide students and practitioners through the theory of development appraisals and feasibility studies before providing internationally applicable worked examples and potential pitfalls using Excel, Argus Developer and Estates Master DF.
Table of Contents
1. The background to development appraisal
a. Definition of Property Development
b. The property markets
c. The property development process in outline
2. The theory of development financial feasibility studies
a. Purposes of development appraisal and its role in the development process
b. The basic development appraisal equation
c. Market investigations and its role in shaping the scheme and determining demand
d. Financing development schemes
e. Different procurement methods and their influence on the development appraisal
f. The financial appraisal of development schemes
i. Determining Building dimensions
ii. Determining the timing of the development and its stages and phases
iii. Estimating development costs
1. Build costs
a. Estimating approaches – Superficial Area, Elemental and Detailed breakdown
b. Sources of cost information
2. The professional Team
a. The construction professionals
b. Other professionals
3. Estimating other development costs – Marketing, disposal, statutory costs, road works etc.
4. Dealing with intangible or uncertain costs
iv. Estimating development values
1. Residential projects or elements
2. Commercial property – non-specialised
a. Rental value
b. Yield and capital value
3. Commercial property – specialised
a. Hotels
b. Other income producing properties
v. Modelling different financial arrangements
vi. Sensitivity analysis
vii. The development appraisal outcome – assessing the results
3. The practice of development financial feasibility studies
a. An over view of the development of practice – from tables to proprietary software systems
b. Tools available to the practitioner – Excel and other spread sheet models and the main proprietary models ; Argus Developer and Estate Master DF
c. Worked examples
i. Modelling development financial feasibility in Excel
1. Traditional Residual models
2. Cash Flow models
3. Advantages and potential pitfalls of Excel
ii. Modelling development financial feasibility in Argus Developer
1. Simple commercial scheme
a. Land Residual
b. Project profitability
2. Modelling more complex mixed and phased schemes
a. Land residual
b. Project profitability
3. Modelling complex funding in Argus Developer
4. Modelling operated assets
a. Hotel developments
b. Golf courses
5. Overview – advantages and potential pitfalls of Argus Developer
iii. Modelling development financial feasibility in Estate Master DF
1. Simple commercial scheme
a. Land Residual
b. Project profitability
2. Modelling more complex mixed and phased schemes
a. Land residual
b. Project profitability
3. Modelling complex funding in Estate Master DF
4. Overview – advantages and potential pitfalls of Estate Master DF
Conclusions – Potential future developments/
This is the first book to not only review the place of financial feasibility studies in the property development process, but to examine both the theory and mechanics of feasibility studies through the construction of user friendly examples using these software systems. The development process has seen considerable changes in practice in recent years as developers and advisors have adopted modern spread sheets and software models to carry out feasibility studies and appraisals. This has greatly extended their ability to model more complex developments and more sophisticated funding arrangements, saving time and improving accuracy.
Tim Havard brings over 25 years of industry and software experience to guide students and practitioners through the theory of development appraisals and feasibility studies before providing internationally applicable worked examples and potential pitfalls using Excel, Argus Developer and Estates Master DF.
Table of Contents
1. The background to development appraisal
a. Definition of Property Development
b. The property markets
c. The property development process in outline
2. The theory of development financial feasibility studies
a. Purposes of development appraisal and its role in the development process
b. The basic development appraisal equation
c. Market investigations and its role in shaping the scheme and determining demand
d. Financing development schemes
e. Different procurement methods and their influence on the development appraisal
f. The financial appraisal of development schemes
i. Determining Building dimensions
ii. Determining the timing of the development and its stages and phases
iii. Estimating development costs
1. Build costs
a. Estimating approaches – Superficial Area, Elemental and Detailed breakdown
b. Sources of cost information
2. The professional Team
a. The construction professionals
b. Other professionals
3. Estimating other development costs – Marketing, disposal, statutory costs, road works etc.
4. Dealing with intangible or uncertain costs
iv. Estimating development values
1. Residential projects or elements
2. Commercial property – non-specialised
a. Rental value
b. Yield and capital value
3. Commercial property – specialised
a. Hotels
b. Other income producing properties
v. Modelling different financial arrangements
vi. Sensitivity analysis
vii. The development appraisal outcome – assessing the results
3. The practice of development financial feasibility studies
a. An over view of the development of practice – from tables to proprietary software systems
b. Tools available to the practitioner – Excel and other spread sheet models and the main proprietary models ; Argus Developer and Estate Master DF
c. Worked examples
i. Modelling development financial feasibility in Excel
1. Traditional Residual models
2. Cash Flow models
3. Advantages and potential pitfalls of Excel
ii. Modelling development financial feasibility in Argus Developer
1. Simple commercial scheme
a. Land Residual
b. Project profitability
2. Modelling more complex mixed and phased schemes
a. Land residual
b. Project profitability
3. Modelling complex funding in Argus Developer
4. Modelling operated assets
a. Hotel developments
b. Golf courses
5. Overview – advantages and potential pitfalls of Argus Developer
iii. Modelling development financial feasibility in Estate Master DF
1. Simple commercial scheme
a. Land Residual
b. Project profitability
2. Modelling more complex mixed and phased schemes
a. Land residual
b. Project profitability
3. Modelling complex funding in Estate Master DF
4. Overview – advantages and potential pitfalls of Estate Master DF
Conclusions – Potential future developments/