Real Estate Development Model - Case Study
I apologize in advance for this long message, but I want to share with you all the details and ask a question in the end. The real estate development model I worked on before, I had schedule data including transaction date, sales start date, construction start and end date, percentage sold at commencement, percentage closed at completion, units closed per month post, and units sold per month. This data isn’t included in this case. I also have a challenge in the development cost assumption. As per the data given, the parking cost assumption is calculated per sqm of parking without the parking area given. The givens are the parking requirements that every residential unit has a parking bay and that every bay is 35 sqm. I also have the total land area, gross floor area, plot area, while the road and open space area is given as a percentage. As for the property stats, I don’t know size of each unit, or the number of units. For the financing, I only have the debt to equity ratio, interest rate, cost of equity, and the depreciation. I don’t have neither the loan to cost assumption nor the land loan figure. Finally, for the sales assumptions, I have some historical data for similar residential buildings in the area developed by this company. I have the YoY and QoQ sales and rent performance for only 1 year and the units delivered during this quarter and the stock residential deliveries data for 4 past years and 1 upcoming year. My question is, is there any way I can reach short development cash flow calculations with project and equity IRR and project and equity NPV? Or is there missing data I need to ask for in order to drive the model?
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