Case Studies

Case Study 1: Fund model platform

A fund manager managing multiple non-listed real estate funds asked us to develop a fund modelling and analysis tool for its real estate funds

Alongside the client, we went through the funds’ structure, the manager’s approach to managing assets and, finally, the manager’s expectations of what the model should yield as an output. Based on the range of information at our disposal, we structured a comprehensive fund model platform that takes full account of the key clauses and requirements of the partnership and financing agreements. Using this model, the manager can project cash flows for current assets, simulate new asset acquisitions in the portfolio, experiment with the disposal timing of assets, model debt and hedging costs, analyse refinance or recapitalisation decisions, and evaluate IRRs and investment multiples for partners.

Case Study 2: Valuator package

A commercial real estate appraiser consulted us on improving the efficiency of the valuation processes

Based on a background and business evaluation of the client, we developed a valuation model, plus a general framework on which the valuation process will work at maximum efficiency. With the project completed, the valuator can directly upload its client’s rent roll, expense data and repair budgets from various client reports into valuation models. After analysing the assets and their cash flows, the valuator can automatically extract summary reports and sensitivity analyses from the valuations. In addition, the valuator can automatically link the valuation model charts and tables to valuation reports in Word or PowerPoint format. This considerably improves the efficiency of the valuation process.

Case Study 3: Portfolio optimising application

A real estate owner and investor managing a large real estate portfolio asked us to provide a tool for estimating optimal asset allocations

We decided to redevelop our existing optimising software to meet our client’s specific needs and circumstances. We also developed additional tools for estimating real estate market sector returns that are instantly importable into the software. The client first establishes income, capital and total return forecasts for each of the assets and for each real estate market sector, uploads them to the software and then begins analysing the current portfolio. Through an effective optimisation engine, the software generates optimal sector allocations and transactions in the current portfolio, based on the organisation’s view of the market and assets.