Feasibility Studies entail identifying the most appropriate product-mix for a specific real estate development use typology that is legally permitted under the constraints of the master plan and development controls and regulations applicable to that specific property. This leads to optimizing returns from investments in a real estate project while minimizing its risk profile. These studies are typically undertaken for projects located on sites where a specific land use is permitted for development. Potential product-mix components allowed under this permitted land use are evaluated in detail in context of the locational aspects of the subject property, potential demand for each product mix component, and demand preferences, along with the potential approval and development costs for each product-mix combinations and scenarios. Risk and sensitivity analyses are a critical component of this study, wherein potential variance in project returns on investment or project internal rate of returns are reviewed in context of drops or increases in the key critical input variables specific to the project when viewed in context of its competitive market and price elasticities of demand.
Principals at KZen have rich and extensive experience in undertaking feasibility studies, while adopting approaches and methods that are globally acceptable, which are used by various domestic and global financial institutions, both before and after placing debt and/or equity in the project, as this gives them a clear line of sight of the potential revenues, estimated costs, and potential returns from the project on an annual basis revealed through detailed discounted cash flow analyses.