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Simplified Example of A Development Appraisal

The document summarizes a proposed development of 35 residential apartments including total space, build costs, revenues, and development costs such as external works, preliminary costs, contingencies, professional fees, marketing, payments to local government, financing, and estimated profit. It calculates the total revenue, total costs, and residual land value of £2,502,156 based on specified inputs like build cost per square meter and value per square meter.

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Rochelle Joy Cruz
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470 views2 pages

Simplified Example of A Development Appraisal

The document summarizes a proposed development of 35 residential apartments including total space, build costs, revenues, and development costs such as external works, preliminary costs, contingencies, professional fees, marketing, payments to local government, financing, and estimated profit. It calculates the total revenue, total costs, and residual land value of £2,502,156 based on specified inputs like build cost per square meter and value per square meter.

Uploaded by

Rochelle Joy Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Simplified Example of a Development Appraisal

Based on a proposed development for 35 residential apartments. Amounts are in square metres and currency is UK Stirl

Basic Revenue and Cost Inputs %


Total amount of space to be built (sqm)
Total amount of space which will generate value, eg excluding communal space, etc. (sqm)
Build cost per sqm
Value per sqm

Total revenue once all residential units have been sold

Cost to build the homes


External works costs, eg hard and soft landscaping, parking spaces etc.
Preliminary costs to set up the development site 5%
Contingency allowance cost 5%
Payments to professionals advising on the development project 12%
Marketing and sales costs incurred when selling the homes 3.0%
Payments to local government
Cost of financing the development

Profit made by the developer as a % of total revenue 20%

TOTAL REVENUE
TOTAL COSTS
RESIDUAL LAND VALUE
s and currency is UK Stirling.

Amounts
2500
2125
£1,500 Change this highlighted figure and see what happens to the RESIDUAL LAND VALUE
£5,000 Change this highlighted figure and see what happens to the RESIDUAL LAND VALUE

£10,625,000

£3,750,000
£300,000
£187,500
£187,500
£450,000
£318,750
£500,000
£304,094

£2,125,000 Change this highlighted percentage and see what happens to the RESIDUAL LAND VALUE

£10,625,000
£8,122,844
£2,502,156 This is the 'residual' amount of money estimated to be available to purchase the land

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