top of page
Level 6
Level 6: Welcome
In level 6 I will look to add back more of the mechanics to the cash flows such as finance, S-curves etc. Level 6 also looks at the concept of phasing which is more important on the bigger projects. Not all BTR is city centre, single core development and it is important to reflect this in cash flows. If we are working on a larger scale development across multiple blocks of apartments (and sometimes even houses) then we need capture different levels of spend over different periods and when income/investment finance comes into play. If we look at it in a sense of a theoretical 250 million euro development over 8-9+ blocks, it’s likely that not everything will be coming out of the ground at the same time, therefore (depending on scale of each) we would have income/investment finance on the earlier blocks while the others are only 50-75% complete, thus affecting your cash flow significantly with a large capital injection in the middle of a project.
This is the point in these levels were things start getting a little modelling heavy but hopefully if you were able to keep up with previous levels then you should be able to breeze through this. Most of what is newly provided in the accommodation schedule in level 6 is solely for modelling purposes. It is possible to leave out some line items in the AS and use more dynamic functions but I find the problem with this is that you ever what to change something or trace a possible mistake, it is much easier to do so when you leave a paper trail.
Level 6: About
Level 6: Features
Cost Schedule – The cost schedule does not change a whole lot from the previous level except for that fact that there are 5 mini projects (the 5 different phases) running in the background driving the outputs. We can see from the cashflow provided that costs are substantially more sporadic. I have also added back in 1 tier of development finance and our S-curves. The way each phases cost is estimated are by segregating hard costs, I have given a rough estimate of each phases hard cost and then taken them at a percentage of the total hard cost. These percentages can then be taken and applied elsewhere on other items such as soft costs.
Excel functions:
SUMIF/SUMIFS – Both formulas are lifesavers if working on phased developments like this. SUMIF essentially does as it says on the tin, SUM a cell IF it meets a certain criteria. SUMIFS does the same except it works for multiple criteria. If we go to cell K49 on the Cost Schedule tab we will see that I have summed contributions based on when each phase starts…simple as that.
Level 6: Features
Income Schedule – Level 6 income schedule I have decided to extend the management costs…imagine you as the developer are running the lettings and management without the use of 3rd party agents etc, you will need to hire your own staff, get some management/accounting software and also look after day to day marketing. I have focussed on building out a leasing schedule that calculates lease up period, re-lets and general vacancy across the different phases. Investment finance has also been added back in.
Whilst every effort has been made to ensure complete accuracy, BTR Ireland accepts no responsibility to anyone whatsoever for any errors in this financial model or for any error or loss that may result from using it. Potential investors and their professional advisers should review and carry out their own due diligence on this financial model themselves and form their own views in relation to the reasonableness, completeness, accuracy of calculations and achievability of the projections.
Level 6: Text
bottom of page