City of Ryde engaged HillPDA to prepare a market appraisal and feasibility assessment of the proposed Ryde Central development designed by Beijing Institute of Architectural Design. The project is a mixed use development combining residential apartments and commercial properties with a new Council chamber, Council administration centre and community uses. The project aim was to use the profits from residential and commercial sales to fund the Council and community components.
Our value add
To undertake the feasibility modelling, HillPDA used the property software EstateMaster Development Feasibility (DF) (EstateMaster Software was authored and recently sold by HillPDA). This software is industry standard in Australia used by developers, financiers and property valuers alike. The analysis follows the approach of a hypothetical development cash flow adopting the costs and revenues of development including but not limited to:
- Site acquisition (including stamp duty and other costs)
- Professional fees (design and management)
- Demolition and construction
- Property holding costs and statutory fees
- Finance charges and interest on debt
- Marketing and selling costs
- Sales revenue.
Risk assessment was performed using a combination of scenario analysis and sensitivity testing – particularly in relation to residential market risk.
HillPDA prepared the financial models for eight different development options with varying heights and densities and provided a report on the modelling assumptions, methodology and key performance indicators. Further options were developed and assessed in a second round of financial appraisal to further improve feasibility.
- Market Research
- Market Appraisal
- Feasibility Testing
- Mixed Use
- Financial Modelling
Client: City of Ryde
Project date: 2017
For more information, contact Adrian Hack, Principal