DEVELOPMENT FEASIBILITY

Understand the numbers before they become commitments.

A feasibility should explain how a project works, where it is exposed and what would need to change for it to meet your objectives. RealIQ develops property feasibility models that bring acquisition, construction, finance, holding costs and exit assumptions together, with scenarios that help you interrogate the result.

MAKE THE ASSUMPTIONS VISIBLE

A decision tool you can question.

A single profit figure rarely tells the whole development story. The timing of expenditure, the amount of equity required and the sensitivity to delays can be as important as the final result. We build the model around the development pathway being considered and the evidence available at that stage. Inputs can include land costs, consultant fees, approvals, construction, contingencies, funding assumptions, holding costs and sales or rental outcomes. We examine cash flow, equity requirements and appropriate return measures, including ROI and IRR where relevant. By testing changes in key variables, the feasibility helps you understand which assumptions drive the outcome and what further evidence is needed before proceeding.

WHAT THE WORK COVERS

Advice with a
practical purpose.

An integrated cost picture

Bring acquisition, approvals, consultants, construction, finance, holding and exit costs into a consistent model, with the source and status of key inputs recorded.

Cash flow and equity visibility

Understand when expenditure is expected, how funding assumptions affect the cash flow and where additional equity may be required through the project.

Relevant return measures

Review projected margin, ROI and IRR where appropriate, interpreting them alongside project duration, cash flow timing and the uncertainty attached to the inputs.

Sensitivity that informs decisions

Examine how changes in construction costs, selling prices, interest assumptions or programme timing could affect viability and the resources required to complete the project.

YOUR NEXT STEPS

A considered process.

Define the model

Agree the development scenario, intended decision and level of detail, then establish the information required and the assumptions still to be tested.

Assemble the inputs

Review the available estimates and project information, distinguishing supported inputs from provisional allowances that require confirmation or specialist advice.

Run the scenarios

Model the base case and agreed sensitivities, examining the effect on cash flow, equity requirements, timing and relevant return measures.

Explain the implications

Present the findings with the critical assumptions, limitations and decision points, so the model can support the next stage of investigation.

USEFUL TO KNOW

Your questions,
considered.

Can you prepare a feasibility at an early concept stage?

Yes. An early model can help compare concepts and identify the variables that need further investigation. It will use clearly identified assumptions and should be updated as design, costs and delivery information become more reliable.

What information should I provide?

Useful inputs include the property details, acquisition terms, concept plans, planning advice, cost estimates, intended programme and proposed exit. We can help identify gaps and agree which assumptions can be used provisionally.

Will the feasibility confirm that funding is available?

The model can show the impact of proposed funding assumptions and help inform discussions with your lending advisers. It does not establish lender approval; actual terms and availability need to be confirmed with the relevant parties.

CONNECTED SERVICES

See the bigger picture.

Development Advisory

Development potential is a starting point, not a complete strategy.

Deal Structuring

How a property deal is structured can change its cash requirements, decision-making and exposure to risk.

Development Management

A development brings together many specialist decisions, each with implications for cost, timing and the intended outcome.

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