Project analysis
Stadim examines the feasibility of projects and local developments in each phase of the property cycle. In doing so we take account of the market situation, the legal context and local factors. In this way we make recommendations related to the content of the project and strategy and help the customer to optimize the basic value.
Your consultant in all phases of the development process
Initial phase
First plans, initiatives and gradual convergence of interests on the way to a specific development or redevelopment.
Stadim attend to the:
- Delineation of the basic objectives.
- Interested parties and stakeholders: overview and risk analysis.
- Valuation of the property “as is”.
- Valuation of the development potential (broad lines).
- Further strategy: partners, acquisition of land, sale value, etc.
Design phase: Masterplan
Preparation of a development plan and/or preliminary design that has the support of the various public bodies concerned.
Stadim attends to the:
- Guidance of the design team.
- Appraisal of the resulting development potential of the various scenarios.
- Linkage of market potential to the project.
- Optimization proposals.
Design phase: Preparation of the SIP
Preparation of a legally binding plan indicating land use and the directives regarding development.
Stadim attends to:
- Guidance or representation of the design team or the owner in the SIP preparation phase.
- Appraisal of the development potential.
- Assessments of the impact of specific requirements (charges, quality, development height, areas) on the basic value.
Design phase: Design
Preparation of the design on the basis of the applicable requirements (SIP or other).
Stadim attends to:
- Appraisal of the impact of design choices (construction costs, volumes, areas) on the value of the development.
- Refinement of the project on the basis of market insights.
Realization: Implementation
Implementation of the project in several phases.
Stadim attends to:
- Financial and economic monitoring of the development.
- Updating the market potential linked to the refinement of subsequent phases of the project.
- Sensitivity analysis.
- Cashflow analysis with calculation of the ROI and ROE (return on investment and return on equity)
Do you need guidance with your project?
Get in touchCases
Evaluation of development land
Case: A local developer had a 2 ha parcel of land available which according to a SIP (Spatial Implementation Plan) had been earmarked for “residential use”. Working together with designers a number of first sketches were made to explore the development possibilities.
The Job: In order to make decisions about the project that would be finally adopted, a number of market factors had to be explored. For this reason it was decided to make use of Stadim’s expertise.
The Stadim Approach: After an exploratory analysis of local policy and the area, we looked at demographic and social-economic trends on the demand side of the market. We linked these trends to the development of the demand for property (number of housing units, types of housing units and commercial property). We then looked at the supply side to see what other projects were in course of development or being planned and to what extent they would constitute a competing supply. Finally Stadim provided an overview of the possible ways the project could be optimized: adjustments to the target groups and the content of the project, adjustments to the typology mix, optimization of the pricing, feasible phasing, etc.
Purchase of a retail space and residential units: an opportunity?
Case: A chain of department stores wanted to develop its property portfolio in addition to its own retail activities. The chain had an opportunity to buy a new building that included a supermarket on the ground floor and a number of apartments and student housing on the upper levels.
The Job: To determine whether this really was a good opportunity, Stadim was asked to help.
The Stadim Approach: We examined the project with reference to a number of parameters and checked to see to what extent the typology of the apartments and student housing matched market expectations and whether there was sufficient demand. We then linked the gross and net anticipated rental income to these findings. After analysis of the area and the micro and mesolocations, we determined the probable revenues from the rent of the apartments. This information allowed us to determine the maximum purchase price for the residential units. In addition to information about the opportunity value of any deal the chain received an overview of the anticipated future cashflow and the exit yield in the event of sale at the end of the investment period.