Development Valuations, Analysis and 20 year Business Model for Apartment/Condo Type Development
Originally published: 28/02/2022 08:56
Last version published: 09/03/2022 15:40
Publication number: ELQ-46169-2
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Development Valuations, Analysis and 20 year Business Model for Apartment/Condo Type Development

Development Valuation and Business Model for Multi-Family Apartment Type. Develop to hold and Lease or Develop To Sell Model Types

This Development Business Model is from the Ground up and is broken up into 3 distinct Scenarios. 1) A 20-year Three Statement Analysis for the Developer who wishes to Develop, Hold and Lease/Rent the Apartments out. The Input fields are basic and should only take you 10 minutes if you have the basic data available. There are only 20 input fields and the model will provide you with all the information required coupled with gearing options, balance sheet revaluations according to your data Input. The model will draw on the expected lease amounts, ongoing costs thereof, annual escalations, exit/revaluation amounts and a cap rate for the initial valuation of each unit. Timelines for the development process to take place, as well as timelines for the income to begin. B) This model is for the developer who wishes to sell the apartments. There are no Finacial statements in this model because of the nature of the development, however, there are profitability Ratios automated (XIRR and XNPV). The only formulas that are able to measure differing Cash Flows and differing dates. XIRR and XNPV are the date-sensitive equivalents of IRR and NPV. Your inputs will be similar to that of a QS type model, simple inputting the cash flows, expected dates of cash flows and the expense type. the model will neatly provide you with these profitability Ratios and categories your expense types into a graph format. C) Much like the above, is a summarised multi-project quick compare for quickly evaluating multiple opportunities and comparing the profitability with the use of TVM.

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Further information

The objective of this Development Model is to be able to accurately evaluate the project profitability and sensitivity depending on whether you are developing to sell or developing to hold and lease for long term gain. This is a multi-family type development model.

This model is suitable and robust for developing models that are focused on apartments, condos or gated communities, however, may also be used to evaluate a single building.

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