Investment Appraisal and feasibility study

Specialist Property Consulting

Property Investment Analysts Group [PIAG] provides Corporate Real Estate Services in conjunction with Proper Consult. We have an experienced team of land economists, urban planners, and valuers to assist you with property valuations, economic appraisals, planning services and retail economics. Our team draws on experience in the full spectrum of land uses - residential, retail, office, industrial, and hospitality. We provide advice on a diverse array of projects to government bodies at all levels, private sector corporations and institutions.

Some of the services that we provide include:

Investment Appraisal / Financial Modeling & Feasibility Analysis

Our Investment Appraisal and feasibility analysis service assists you with the assessment of investment opportunities, determining the risks and returns for a given property or when comparing different development options.

Our feasibility analysis service includes site and market appraisal, financial structuring, investment analysis, risk assessment, sensitivity testing and the assessment of joint venture alternatives. Our feasibility analysis provides you with key indicators such as development margin, internal rate of return and residual land value. We also provide sensitivity testing to determine the likely effect of changes to variables such as construction costs and revenue.

Our financial modelling service can prepare financial models for you or provide independent review of existing financial models as well as financial models for development and investment appraisal. We commence by collecting data to create the baseline financial model. Once the model is generated, we undertake sensitivity and probability analysis to determine the variability of returns depending on changes to inputs such as revenue and costs.

Our feasibility analysis and financial modelling service can be combined with our additional services such as property valuation and planning services.

Due Diligence and Peer Review

We provide due diligence advice and peer review services to assist you in assessing existing and future investments. Our experienced team can review the transaction details, property valuations and proposed financing structures. We also provide advice on options to improve the development outcomes and financial returns of the investment.

Additional Services

Property Valuation

• Market valuations
• Rent review
• Mortgage security
• Compulsory acquisition

Economic Appraisal

• Cost benefit analysis
• Employment assessment
• Multiplier impacts

Planning Services

• Social planning
• Master Planning
• Policy analysis and review
• Statutory and strategic planning

Retail Economics

• Economic Impact Assessments
• Trade area analysis
• Expenditure modelling
• Demand Forecasting

Note:

Investment Appraisal

A feasibility study/investment appraisal provides a comprehensive and detailed assessment of the market, operational, technical, managerial and financial aspects of your business project. The outcome of the study usually leads to any of the three under-listed decisions;

• decide that the project is viable and move forward with it
• decide to do more study and or analyze additional alternatives
• decide that the project is not viable and abandon it.

Together with design, feasibility and appraisal function as the interface between conception and reality. They link the planning set of the project tasks-identification, formulation and preliminary design with the action oriented tasks-selection and approval, activation, implementation, handover and evaluation.

The conclusions of the feasibility study/investment appraisal outline in depth the various alternatives examined and the implications, strengths and weaknesses of each. It thus helps to narrow the scope of the project to identify the best investment. The ‘go/no-go’ decision is one of the most critical in business development. It is the point of no return. Once you have definitely decided to pursue an investment venture, there is usually no turning back. The feasibility study will be a major information source in making this decision. This indicates the importance of a properly developed feasibility study.

The decision to conduct a feasibility study should not be taken lightly. It may be an expensive and time consuming process. However, not doing a feasibility analysis can be even more expensive in terms of the poor decisions you may make from not conducting the proper analysis. Therefore as a builder will not begin construction without a blue print, prudent eager real estate investor should not rush into new investments without a feasibility study. The role of a comprehensive thoughtful feasibility study in real estate investment decision cannot be overemphasized. It focuses on helping answer the essential question of “should we proceed with the proposed project idea?”