What sort of information does a feasibility modeller require?

What information do we require to do a fast, easy feasibility for you? We at Wolfe Advisory Group have prepared a questionnaire. A client is just asked to fill out as much as they can, and we can do the rest - the known unknowns. Of course we know that information at hand can come in a variety of levels depending on the stage of development or even of site assessment in the acquisition process. Here is the comprehensive list:

Site / Planning Questions

1.????What is the address of your potential development site?

2.????Do you already own the land?

Yes1 : How much did you pay for the land??

Yes2: When did you settle the land and take possession of title?

No1: Do you have an idea how much it will cost??Provide explanation of rationale.

No2: What settlement terms would you expect to get??(ie how long will it be between contract being signed with deposit paid and the settlement of the land?)

3.????Do you plan to sell or hold your development on completion?

4.????What is the size of the land (sqm)?

5.????Do you have advice from a town planner or have you spoken to council about what can be built? If no, go straight to Financing Section (Q11)

6.????How many levels can you go up to / do you expect to be able to go up to?

7.????Do you know what the building footprint will be??(Site coverage %)

8.????Are you required to provide carparking??If no, go straight to Q10

9.????What is the requirement of car parks per unit? Do you anticipate providing more than the minimum requirement?

10.?Has a town planner indicated how long the normal period is to get planning approval and permits in place?

11.?Please attach plans with your email if you have any

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Financing Questions

12.?Do you already have an existing Loan against the land?

13.?Have you spoken to a bank yet about financing construction of your project? If no, skip to the next section

14.?What is the loan the bank is prepared to offer / has provided against the land value?

15.?Has the bank told you what it can offer as a loan for construction in terms of Loan-to-Value ratio (LVR) or Loan-to-Cost ratio (LCR)??Please detail.

16.?Has the bank provided you with an indicative interest rate or interest rate margin (ie BSBY + X%pa) on the loan against the Land?

17.?Has the bank provided you with an indicative interest rate or interest rate margin (ie BSBY + X%pa) on the loan to be used for the purpose of Development?

18.?Has the bank provided you with a quote for establishment fee on the loan against the Land?

19.?Has the bank provided you with a quote for establishment fee on the loan to be used for the purpose of Development?

20.?Has the bank provided you with an indicative line fee on the loan to be used for the purpose of Development?

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Product Questions

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21.?Do you see the market for your intended end product (ie apartments) moving:

a.????Very Favourably (ie. 8% growth per annum over the next few years)

b.???Favourably (ie. 5% growth per annum over the next few years)

c.????In line with CPI (ie. 3% growth per annum over the next few years)

d.???Stagnant (ie. 0% growth per annum over the next few years)

e.????Unfavourably (ie. -5% growth per annum over the next few years)

f.?????Very Unfavourably (ie. -% growth per annum over the next few years)

22.?What quality level will you be targeting for your development:

a.????Prestige/High-level

b.???Medium-level

c.????Low/Basic-level

23.?What percentage of the units are 1 bedroom units? (not required if plans were already provided)

24.?How big will they be in sqm on average? How much will they sell for per sqm? (not required if plans were already provided)

25.?What percentage of the units are 2 bedroom units? (not required if plans were already provided)

26.?How big will they be in sqm on average? How much will they sell for per sqm? (not required if plans were already provided)

27.?What percentage of the units are 3 bedroom units? (not required if plans were already provided)

28.?How big will they be in sqm on average? How much will they sell for per sqm? (not required if

29.?What percentage of the units are townhouses? (not required if plans were already provided)

30.?How big will they be in sqm on average? How much will they sell for per sqm? (not required if plans were already provided)

31.?Do you have ground floor retail? (not required if plans were already provided)

32.?How many stores would you intend to turn the GF retail into? (not required if plans were already provided)

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Build/Develop Questions

33.?Have you gotten development cost estimates from an engineer or quantity surveyor? If yes, please attach a copy.

34.?Have you spoken top any builders to get a rough rate on the build cost per square metre? If no, go to Q36

35.?Did the builder provide a rough estimate of the build timeframe?

36.?Have you engaged or spoken to a sales agent? If no, skip to Q38

37.?What commission rate did they quote?

38.?Have you engaged or spoken to a separate project marketing specialist? If no, skip to Q40

39.?Did the project marketer provide you with a rough budget number for marketing/advertising/public relations?

40.?Will you build a sales office on site?

41.?Have you obtained estimates for council planning fees, statutory authority costs, water & sewer fees and any other contributions required to be paid?

42.?Have you obtained estimates for any bonds payable to council or water authorities for the duration of the construction period?

?Chris Wolfe, Executive Director, Wolfe Advisory Group