Quantity Surveyor / Architect – Project Financial Feasibility Model

All Industries, Construction, Financial Model, General Excel Financial Models, Real Estate

10-year Financial Projections, Break-Even, DCF Model, Developers, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Projections, Financial Ratios, Investment Multiple, Investor Presentations, NPV (Net Present Value), Profitability Analysis, Project Finance, Project Management, Project Plan, Property Appraisals, Property Valuation, Real Estate Valuation, Sensitivity Analysis, Valuation

This Project Feasibility Model is purpose-built to assist Quantity Surveyors, Architects, Developers, and Real Estate Practitioners analyze the profitability and feasibility of the Development or Project. The Model uses XNPV and XIRR, the date-sensitive equivalents of NPV and IRR.

The common mistake many make is relying on the measurement tool of Gross Profit without considering the TMV effect (Time Value of Money).

The Model is broken into three distinct types of development.

A) The development project that is built for selling
B) The development Project that retains all or a part of the development as rental stock. and
C) Quick compare multi-projects which only require a limited number of inputs, usually inflows/outflows on a month-end basis with no categorization.

When we perform the feasibility assessment on the (B) type with Retained rental stock, we provide a Commercial Type Valuation Calculator which makes use of an appropriate Cap rate that you choose, and the resultant Net Present Value at the fruition date is then brought into the XNPV and XIRR formulas.

The XNPV must naturally be a positive number or else the project will lose money, and the XNPV must achieve above the Hurdle Rate, the more times it beats the hurdle rate the better. It is also easy to guage how sensitive the project is simply by altering the dates of expected income, etc.

The Model is also easily expandable and you may also expand the multi-project quick compare model by as much as you like.

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