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Real Estate Project Appraisal Model

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Industry: Real Estate

Client : A Saudi-based real estate developer seeking to create a financial model for evaluating development projects for mixed-use assets such as offices, shops, residential apartments, and leisure for all stakeholders.

Problems

The existing model had:

  • Many worksheets with extensive cross-sheet referencing in Excel formulas that made model audits or changes challenging,
  • A long list of input assumptions not properly organised that made input finding difficult for the user,
  • Inputs and workings for different types of residential apartments only,
  • Multiple projects input assumptions but did not allow the user to compare inputs of any two projects,
  • Calculation errors and circular reference issues in the financing section,
  • End cell problems on worksheets, unwanted styles and formatting that made the file size increase drastically,
  • Reports and charts that lacked aesthetic appeal

Solution

FAB delivered a complete rebuild of the existing model with; Model calculations done as per the FAST standard (the first best practices financial modelling standard recognised by the Institute of Chartered Accountants of England and Wales) to improve model transparency and flexibility,

  • Reorganised input structure in Key and Other Inputs accompanied by VBA automation, enabling efficient comparison and copying of similar project inputs in the Live deal This optimisation reduced the input update time for a new deal from over an hour to less than five minutes,
  • Circularity break macros to allow full recalculation and optimisation of the model outputs for each stakeholder,
  • Option to include assets with a switch, such as retail shops, leisure zones, and hotels, on top of residential apartments and office spaces,
  • Dynamic and printable report packs with stunning visuals designed for each stakeholder ,

Client Benefits

  • A highly effective and easy-to-use tool for evaluating multi-specialty real estate deals, allowing for a seamless setup of new deals in approximately five minutes.
  • Best in-class and professionally built financial model that received praise from all stakeholders.
  • The advantage of having a committed team that provides modelling support on an ongoing basis.

Client Testimonial

“FAB Analytics has developed a best-in-class multi-specialty Real Estate Financial Modeling that has become indispensable in our strategic investment decision-making process.

The model is very user-friendly and has greatly enhanced our ability to analyze and evaluate complex real estate deals, providing valuable insights to make informed investment decisions.

The expertise and professionalism demonstrated by FAB Analytics throughout the entire engagement have been exceptional, and I highly recommend their services to anyone seeking top-notch financial modelling solutions.”

Chief Executive Officer .

Problems