Basic Financial Feasibility Study

Due Date: Tuesday 11^th November 11.59PM

This is a Team (2 Students) assessment worth 60% of your overall grades.

1. Assessments Outline

1.  Learning Outcome Assessed (Part B)

LO1 – Analyse the concept of property development.

LO2 – Derive a project financial feasibility study.

LO3 – Examine funding for projects.

L04 – Analyse market influences.

2. Task

From the property/project you have selected from part A. You have now been asked to prepare a Detailed feasibility report covering the following:

1. Basic financial feasibility of the project, including calculating the land cost, cashflow and financial risk assessment.
2. Comments, assumptions made on the financial feasibility of the project, and all references.
3. Attachments of full Excel spreadsheets showing workings and calculations.

Your final feasibility report should b e a single PDF document (with full copies of Excel spreadsheets attached) – i.e. a total 4 files.

It is expected that you will do sufficient research when evaluating the basic financial feasibility of the proposed development and derive the value and cost estimations based on the realities of the current Auckland market. As part of this case study, you are to investigate and report on:

• Current construction costs using a source such as QV Cost Builder (or Statistics NZ).
• Realistic estimations of other development cost items (also available in QV Cost Builder).
• Current rental rates and capitalization rates for this type of property using a source such as Colliers International research colliers.co.nz and,
• Current market value as an optional source of income i.e. Build to Sell.
• Information on Auckland Council rates can be found on the Council website.
• Site and location issues including Council GIS services, utilities, hazards, flooding, etc., Market sale and leasing date from https://homes.co.nz, realestate.co.nz, trademe.co.nz /property, oneroof.co.nz, etc.
• Predicted cash-flow and return on investment, over 3 – 5 years.
• Detailed risk assessment and sensitivity report, justifying your risk allowances,

A template of 3 (three) spreadsheets for the major financial study has been provided as part of the assignment task information on Moodle.

1. Mode of Submission

• Only one submission is required from your pair/team.
• Make sure your Student names, ID no’s and Assignment Part B is in the file name and clearly on the front page of all documents and FOOTER of all pages.
• Complete and attach the Assignment Cover sheet. Both team members to sign.
• Upload soft copy of your assignment to Moodle dropbox before or on 11^th November 2025, 23:59 Put the property address in the subject line.

Submit the softcopy feasibility report in PDF file format with the attachments in EXCEL.

• Your report should always be supported by facts that are properly referenced both in-text and with reference list according to APA 7th style. Your report must be clear, easily read, properly referenced and checked for correct spelling and grammar. Refer to the Referencing Guides on the Unitec Library page for more information on referencing:

http://libguides.unitec.ac.nz/apareferencing/intext

2. Late submission without approved AC or Extension of time:

• No assignment will be accepted five (5) days including weekends and public holidays after the due date. As the assignment is compulsory, students will receive Did Not Complete (DNC) grade for the entire course, if you do not submit Part B.
• Computer related problems/work commitments do not warrant an extension.

3. Plagiarism and using Gen AI

• Plagiarism is using other people’s research, work, ideas, or expressions without giving credit to them or acknowledging them as the source through proper referencing. This includes “third-party assistance”. Plagiarism is a very serious offence. DO NOT PLAGIARISE.
• The use of GEN AI in the assessment is NOT PERMITTED.
• It may be a significant breach of academic integrity to use Generative AI to produce all or part of an assessment that is submitted as your own original work. Generative AI is a type of third-party assistance, as is Contract Cheating. You are at risk of accidentally committing academic misconduct if you submit work created by AI as your own.
• For more information, refer to the Academic Integrity link below:
• https://www.unitec.ac.nz/current-students/study-support/academic-integrity

4. Marking Schedule

Questions relating to the Assignment ideally should be posted to class Q&A forum for all to see.