DEVELOPMENT


The full range of development risks, from contractor defaults to overruns, financing and pre-let risk




ProMS Developer is a powerful module for ProMS Investor, allowing users to analyse all aspects of development risk within the same sophisticated and rapid modelling framework.

Users can easily describe complex developments with multiple phases, allowing for co-dependencies, target dates and separate cost bands. Likely cash flows are projected from future tenants, including pre-let, un-let and for-sale units, combining letting risk and market risk

ProMS Developer breaks down the risks involved during the construction cycle into multiple categories:
  • Contractor Default
  • Project Overrun
  • Project Overspend
  • Cost Inflation and Volatility
  • Watertight Date Overrun
  • Phase Dependency Risk
Letting risk is explicitly modelled in a variety of ways:
  • Long-Stop Date overrun
  • Tenancy Default or Downgrading
  • Rental Price volatility for Un-Let units
  • Void Period volatility for Un-let units
Finance risk is measured at each point in the process:
  • Interest Rate risk
  • Terminal Value fluctuations
  • Loan To Value volatility
  • Covenant Breaches
  • Upfront vs. progressive funding
  • Profit share costs
The result is a deep analysis of all aspects of development, pre-letting and financing risk.


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