Liase Foras Independent, non-brokerage realty research company
Liase Foras Independent, non-brokerage realty research company
Independent, non-brokerage
realty research company

Balanced Financials

In this section of our feasibility studies, we bring to table financials of only feasible development options on the subject-site. We have presented a hypothetical case study for a plot which can be exploited as following:

Summary of All of the Models

  Rs.(in Crore)
  Option 1 Option 2 Option 3 Option 4
  Sell out the Land Only Warehousing Only Industrial Plotting Mix Use
Probability 100% 53% 70% 75%
FSI   0.5 0.75 1
Cost 52 624 70 517
Cash Revenue 93 382 114 898
Terminal Value   782 0 443
Total Revenue 93 1,165 114 1,341
Cash Profit 41 (242) 44 381
Profit Including terminal value 41 540 44 824
NPV 32 80 7 140
Discounting rate 16% 14% 16% 16%
Equity 17 177 38 62
Debt 0 177 0 62
RoE 80% 22% 14% 25%
IRR 131% 19% 21% 28%
Additional Equity involvement 0.00 160 21 45
Increamental NPV   48 (25) 108
Increamental profit/Additonal equity   30% -120% 240%
Duration of Project (months) 12 84 72 0.08