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Session 1
An Introduction to Development Appraisal
- Residual Valuation, Development Appraisal or Cost Benefit Analysis?
- How to value Development Land
- Land Speculation and Betterment
- Planning risk vs Development risk – what is the difference?
- Risk Management and the necessity for profit
- Redevelopment Options – from redecoration to retrofitting, refurbishments to redevelopment
- Volatility and interpretation of results
- The lifecycle of a development project and its different stages
- Legal, insurance and environmental considerations
- Energy Performance, Embodied Carbon and Sustainability considerations
- Where to go to get your data
Presenter:
Simon Wainwright, Managing Director, JPW Real Estate
Session 2
Appraisal Methodology & Sensitivity Analysis
- A detailed ‘walk through’ - an appraisal from A to Z
- Measurement Standards and Floor Areas
- Assembling your data and reviewing your information sources
- Capitalising income and calculating Capital Value
- Breakdown of Development Costs (with a cost checklist provided)
- Basis for Site Cost in an Appraisal
- How to calculate finance costs
- Measurement of profit and viability
- Understanding Sensitivity Analysis
- Version tracking, accompanying notes and assumptions
- Worked examples
Presenter:
Simon Wainwright, Managing Director, JPW Real Estate
Session 3
Project Refinement, Ground Rent Derivation, Inflation & Growth
- Right scheme, wrong answer? Interpreting the results
- Scheme refinement, options and choices – measuring efficiency of design
- Maximising site value, but at what cost?
- Cost Comparison
- Marginal Viability Analysis
- Elemental Viability Analysis and Phasing
- Additional Development Profit arising from release of Rights of Light
- Diminution in Value arising from restrictions on development
- Viability for Planning, Community Infrastructure Levy (‘CIL’) and Planning Obligations
- Timing, phasing and interim receipts
- Ground Rent Derivation and Joint Ventures
- Dealing with construction cost inflation and value projections
- Tax considerations – VAT, SDLT, Capital Allowances
Presenter:
Simon Wainwright, Managing Director, JPW Real Estate
Session 4
Cash Flow & Appraisal Software
- Project programming and the importance of timing and phasing
- Finance costs, interest calculations and cash flow ‘S’ curves
- Turning an appraisal into a cash flow
- Detailed review of a cash flow model
- Understanding Discounted Cash Flow (DCF)
- Internal Rate of Return (IRR) or Net Present Value (NPV)?
- Review of available appraisal software
- Dynamic appraisal monitoring and budget tracking
- Constructing an appraisal model in Excel – template provided
- Benefits of Appraisal Software such as Argus Developer
Presenter:
Simon Wainwright, Managing Director, JPW Real Estate