Project Finance – Commercial Real Estate Excel Model

Project Finance Model is for the financing of long-term infrastructure projects and includes Funding & working calculations.

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Project finance is the financing of long-term infrastructure and industrial projects based upon a complex financial structure. Both project debt and equity are used to finance the project. Debt is repaid using the cash flow generated by the operation of the project, rather than other resources of the project owners.

Project Finance Model is built for a proposal to construct a commercial space in the Middle East with a Gross Leasable Area of half a million sq.f. The financial model is built with a quarterly timeline considering construction for 2 years and the operations period for 8 years.

This model includes Following scenarios:

1. For Revenue calculation, Gross Developed Area is assumed to be Leased or Sold. User can switch between the scenarios from Dashboard Sheet and correspondingly see its impact on the Financials and Key KPI’s.

2. For Cost calculation, maintenance contract for Gross Developed Area can be assumed to be given to a single contractor with a bucket rate or specialized service providers to control cost. User can switch between the scenarios from Dashboard Sheet and correspondingly see its impact on the Financials and Key KPI’s.

3. Project Output includes:

3.1 Project IRR & NPV
3.2 Equity IRR & NPV
3.3 Minimum and Average DSCR
3.4 Equity Payback Period
3.5 Cash Waterfall
3.6 Debt Service Profile

This model will help you in understanding and Modeling of:

1. Flexible capital structuring
2. Construction standby facilities
3. DSRA reserve provisions
4. Lender covenants
5. Complex cash waterfalls
6. Project finance ratios: DSCR
7. Project and Equity IRR

The model is ideal for those looking to achieve the following:

1. Refresh their financial modelling skills
2. Gain an understanding of leading approaches towards financial modelling, in order to build models that are robust and user-friendly in nature.
3. Extend their toolkit for modelling more complex areas of a project finance model in an efficient and flexible manner
4. Understand the very basics of Project Finance

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