Consulting
Financial modelling and feasibility
The model shows how much the project earns and when it returns its investment. This is not a presentation with beautiful numbers: revenue and costs are divided into items, assumptions are written out separately, and scenarios are recalculated for new inputs.
What is included in the work
Inputs
Areas and cuts, project stages, investment schedule, market rates and prices, taxes and operating costs.
Revenue
Renting and selling premises according to scenarios: basic, conservative, optimistic. Occupancy rate, indexation, percentage of turnover.
Costs
CAPEX by stages, OPEX, financing structure and cost of money.
Result
NPV, IRR, payback period, break-even point and sensitivity to key assumptions.
What do you get
Excel file with open formulas
Not a picture or a presentation: the connections are visible, the model remains with you and is recalculated for new inputs.
Basic, conservative, optimistic
Three sets of assumptions on rates, fill times and prices - you can see where the project stops converging.
NPV, IRR and payback period
Key numbers of the project in one place, with an explanation of what each one consists of.
Revenue and cost structure
Rent, sale, operating expenses and CAPEX by stages - by item, not in one amount.
Sensitivity
What will happen to the profitability if the rate is 10% lower, construction takes six months longer, and filling is slower.
Projects with the RSG financial model
Frequently asked questions
Is the model suitable for a bank?
Yes, that’s what it’s done for: calculations are made item by item, assumptions are written out separately, scenarios are recalculated. The bank and investor can see where each number comes from.
Where do rates and prices come from?
From our market analytics and brokerage practice: RSG rents and sells premises in the same cities, so rates are taken from transactions, not from advertisements.
Is it possible to recalculate the model when the inputs change?
Yes, the model is transferred to the customer and remains working. New areas, terms or rates are recalculated in it.
Is a model needed for a small project?
The smaller the margin of safety, the more important it is to consider: on a small object, an error in the rate or in the filling period eats up all the profitability.
