- Use
- Residential development
- Cost basis
- Construction including underground parking
- Work product
- Written financial assessment
Testing financial viability
The starting point was a site offered with an existing scheme. The appraisal examined the acquisition price at which the proposal could be financially viable for a prospective developer.
The assessment included construction costs for a mid-market to higher specification and the cost of underground parking. These assumptions were compared with potential sale prices for the completed apartments.
Supporting pricing decisions
The written assessment used the cost and revenue assumptions to derive a supportable approach to the land purchase price. It also showed how strongly the remaining development margin depended on the asking price.
Initial financial appraisal at BSCA Invest in August 2023.