Development Appraisal
Calculation of whether a development scheme makes enough profit, or can afford its land.
Definition
A development appraisal sets expected sales value (GDV) against land, build, fees, contingency, finance and selling costs. It is usually run one of two ways: with land as an input to find the developer's profit, or with a target profit as an input to find the residual land value. It rests on stated assumptions, so it is not a formal valuation. In North America the same exercise usually sits inside a development pro forma, which typically adds a dated cash flow and IRR. Atlasly Developments runs the profit form, with every input tagged supplied, estimate or assumption.
Related terms
GDV (Gross Development Value)
Total expected sale or letting value of a completed scheme.
Profit on Cost
Developer's profit divided by total development cost.
Profit on GDV
Developer's profit divided by gross development value.
RLV (Residual Land Value)
Value a developer can pay for land after costs and profit.
Keep every development site in one record.
Atlasly Developments tracks each site's parcels, due diligence documents, options, appraisal, actions and project packs.
See Atlasly Developments