| University | Unitec Institute of Technology (Unitec) |
| Subject | CONS6906 Development and Finance |
CONS6906 Assignment Part B
This is a Team (2 Students) assessment worth 60% of your overall grades.
| Assessment | Description | LO Assessed | Weight | Marks |
| Assignment Part A | Site Selection and Choosing a Project | 1 & 2 | 10% | 30 |
| Assignment
Part B |
Detailed feasibility study, Cash Flow modelling and Risk assessment | 1, 2, 3 & 4 | 60% | 70 |
| Final Exam | Closed book exam with 40% threshold | 1, 2, 3, 4 & 5 | 30% | 100 |
Learning Outcome Assessed
LO1 – Analyse the concept of property development.
LO2 – Derive a project financial feasibility study.
LO3 – Examine funding for projects.
L04 – Analyse market influences.
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.
CONS6906 Development and Finance Assignment Part B Support for Students
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