[Project Name]
Development Feasibility Study
Executive Summary
This feasibility study assesses the viability of [project concept — e.g. a mixed-use residential development] on [land description] in [location]. Based on the cost, revenue, and cash flow analysis in this report, the project shows a projected IRR of [XX]% and an NPV of [amount] at a [XX]% discount rate over [X] years, indicating a [favorable / marginal / unfavorable] investment case.
Site & Land Assessment
Land Acquisition Structure
This determines how the land is paid for — in cash, or as a share of the project — and directly changes the cash flow and returns below. Select one.
Developer pays full land cost in cash. Developer keeps 100% of revenue.
Little/no upfront land cash. Landowner receives an agreed % of gross sales revenue.
Little/no upfront land cash. Landowner receives an agreed % of built units instead of cash — reduces developer's sellable inventory.
Note: for a Unit Share JV, treat the % as an equivalent reduction of gross sales revenue for modelling purposes — the "Less: Landowner Share (JV)" row in the Cash Flow section applies this automatically.
Location & Access
[Describe proximity to key roads, infrastructure, amenities, and comparable developments nearby. Note any access, utility, or title/ownership considerations relevant to the purchase decision.]
Site Suitability Notes
- [Topography, soil, or geotechnical considerations]
- [Legal / title status and any encumbrances]
- [Utility availability — power, water, sewage, road access]
Market & Positioning
[Summarize the target market segment, demand drivers, and competitive landscape. Reference comparable projects in the area and their pricing/absorption rates where available.]
Competitive Landscape
- [Comparable project 1 — location, price point, absorption rate]
- [Comparable project 2]
Development Concept
Concept Notes
[Describe the product type, architectural direction, amenities, and any differentiation strategy relative to competing developments.]
Cost Estimate
| Cost Category | Amount | % of Total |
|---|---|---|
| Land Acquisition | [$X.X]M | [XX]% |
| Construction Costs | [$X.X]M | [XX]% |
| Design & Consultancy Fees | [$X.X]M | [XX]% |
| Marketing & Sales Costs | [$X.X]M | [XX]% |
| Contingency | [$X.X]M | [XX]% |
| Total Development Cost | [$X.X]M | 100% |
Revenue Plan
| Revenue Source | Amount | % of Total |
|---|---|---|
| Unit Sales — Down Payments | [$X.X]M | [XX]% |
| Unit Sales — Installments | [$X.X]M | [XX]% |
| Ancillary Revenue (Kiosks / Advertising Rights) | [$X.X]M | [XX]% |
| Management & Maintenance Rights Sale | [$X.X]M | [XX]% |
| Total Projected Revenue | [$X.X]M | 100% |
Sales Payment Plan Assumption
[e.g. "10% down payment on booking, remaining 90% over X years in equal installments, with unit handover at Y% completion."]
Cash Flow & Returns
The table below models projected cash inflows and outflows across the development period. Enter figures from Year 0 onward — use Year 0 for initial investment / acquisition cash flows before operations. Click any number to edit it. Net Cash Flow, Cumulative Position, IRR and NPV recalculate automatically.
| Line Item (annual) | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
|---|---|---|---|---|---|---|---|
| Construction Costs | |||||||
| Land Payments | |||||||
| Marketing & Advertising Costs | |||||||
| Sales — Down Payments | |||||||
| Sales — Installments | |||||||
| Ancillary Revenue (Kiosks / Rights) | |||||||
| Less: Landowner Share (JV) — auto | — | — | — | — | — | — | — |
| Net Cash Flow | — | — | — | — | — | — | — |
| Cumulative Surplus / (Deficit) | — | — | — | — | — | — | — |
Rows are pre-filled with sample figures — replace with real numbers from Year 0 onward, then click "↻ Recalculate Cash Flow" in the sidebar (or it updates automatically as you leave a cell). The "Landowner Share (JV)" row automatically deducts the % set in the Site & Land Assessment section from that year's total revenue — leave the % at 0 for an Outright Purchase structure, where the land cost is instead captured in the "Land Payments" row above.
Financial Model Reconciliation
Enter numeric totals in Sections 05 and 06 to reconcile them against the annual cash flow. Variances should be zero (or intentionally explained).
Risk Factors
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| [e.g. Construction cost escalation] | Medium | High | [e.g. Lock key material prices early; 8% contingency built into cost estimate] |
| [e.g. Slower-than-projected sales absorption] | Medium | Medium | [e.g. Phased launch; flexible payment plans] |
| [e.g. Land title / regulatory delay] | Low | High | [e.g. Legal due diligence completed prior to commitment] |
Recommendation
[Based on the analysis above, state a clear go / no-go / proceed-with-conditions recommendation, referencing the IRR, NPV, and key risks identified.]
Suggested Next Steps
- [e.g. "Commission a detailed geotechnical survey before land commitment"]
- [e.g. "Validate sales pricing assumptions with a targeted market survey"]
- [e.g. "Proceed to detailed design and updated cost plan"]
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This feasibility study is confidential and prepared solely for the recipient named on the cover page. Figures are estimates based on assumptions stated herein and are not a guarantee of future performance.