Financial Modelling

A dynamic, bottom-up approach delivering detailed insights, risk mitigation, and billions in cost savings.

Operational Cost Model

  • The basic output of the cost model, OPEX is categorised costs into various divisions, such as maintenance, utilities, security, and administration, offering a clear view of where expenses are coming from. 

  • The service charge component calculates the costs that will be passed on to the occupants to maintain and operate shared facilities. The model ensures that service charges are fairly distributed among stakeholders, maintaining transparency and aligning with the project’s financial goals 

  • Life Cycle Analysis assesses the long-term costs associated with the eventual replacement of assets within the development. It considers the entire lifespan of building components and systems, helping stakeholders plan for future expenditures and make informed decisions about asset management 

  • In line with the Life Cycle Analysis, the Reserve Fund determines the amount of funds that need to be set aside for future replacements. The Gap Analysis identifies any shortfalls or gaps between the current reserve levels and future financial requirements, enabling proactive financial planning and risk mitigation. 

  • CAPEX Recovery focuses on the allocation of the initial investment in the project. This output is limited to the CAPEX of developing the public realm assets and common infrastructure. However, further CAPEX can be an input into the model which will be added to the recovery mechanism. 

  • This output calculates any financial contributions or subsidies that the developer must provide to ensure the project's viability. This focuses on the upkeep of the public realm assets as the plot asset handover is on going. 

Comprehensive financial insights closely aligned with operational models to assess viability, optimise capital allocation, enhance operational efficiency, and maximize returns.

We specialise in live, dynamic financial modelling, which enables developers and asset owners to make data-driven, future-proofed decisions. Our approach moves beyond static forecasting—our models stress-test the development's design, ensuring accurate financial planning and strategic cost management.

Feasibility Model

    • Cash Flow Forecasting and analysis provide detailed projections of a project's cash movements. By mapping out expected cash inflows and outflows, this analysis helps identify potential shortfalls, maintain liquidity, and optimise funding strategies to support project execution and financial stability effectively.

    • Profit & Loss Forecasting provides detailed projections of revenues and expenses, allowing the developers to understand the project’s financial performance over time. The forecast can influence strategic planning and ensure profitability is maintained while optimizing costs and resource allocation.

    • Financial & Investor Metrics offers an evaluation of a project’s financial by calculating key indicators such as IRR, NPV and ROI. These insights help developers and investors understand the potential returns, optimize capital allocation and make informed decisions that enhance project success.

    • Break-Even Analysis calculates the point at which a project’s revenue covers its costs to provide an understanding of when the project will start generating profit. This analysis determines the required sales or occupancy levels needed to achieve this financial milestone.

    • Financing Gap Analysis & Total Capital Required assesses the full financial requirements of a project flagging any funding shortfalls. This process enables developers to structure capital efficiently to ensure successful project execution.

    • Sensitivity and Scenario Analysis examines how changes in key variables can affect the financial outcomes of a project. By modelling different scenarios, this analysis helps developers understand the potential risks allowing for more flexible and informed decision-making.

Demonstration Video