Cases

Real Estate Development Investment Project Financial Model

2024-07-26 15:41 Corporate Strategy

Context

  • Kanpeki supported K1 Properties, a UAE-based real estate and asset management firm, in conducting a detailed financial analysis for a USD 100M luxury property sale on Yas Island, Abu Dhabi

Approach

  • Conduct macro market research in Abu Dhabi, covering the overall economy and sector-based performance in the fields of real estate, tourism, aviation, and others, including major future projects, policies and developments
  • Conduct in-depth analysis of real estate sub-segments by property types in Abu Dhabi and broader UAE, collecting data required for the financial modelling
  • Define assumptions, fixed and variable parameters
  • Build revenue and cost projections based on variable market scenarios (neutral, optimistic and pessimistic)
  • Conduct profitability analysis, covering overall profitability, exit profits, inflation-based adjustments, profit margins, ROI, NPV
  • Compare the proposed scenarios
  • Provide recommendations based on the investment analysis
  • Prepare a pitch structure and provide reviews for the investment opportunity deck

Outcomes

  • Abu Dhabi market analysis research
  • Financial model for the specified real estate development
  • Advisory for creating the investment pitch deck