Prior to embarking on any major development project, property owners, developers and lending institutions need to be sure that the project meets a number of base criteria. Questions will need to be answered and these questions will vary depending upon who is seeking to commission the study. However, in essence the objectives of all parties – whether it is the developer or lender - will essentially be the same:

• Is the project viable?
• Does the development meet the requirement of the market - both now and what would be expected in the future?
• How does the project ‘fit’ in relation to existing demand patterns and future expected levels of demand.
• How will the project compete against its competitors? What are its competitors and how successful are they and what are their attributes - Strengths and Weaknesses? What are the Opportunity & Threats?
• What is the future likely competition and where will this arise?
• What is the ‘right’ investment criteria – end value, cash flow able to sustain loan repayments, IRR’s, ROI’s, ROE’s, NPV, yield levels, project payback, investor payback etc?
• Are the development objectives realistic and what aspects should be addressed, changed or re-positioned to improve success opportunity?

Answers to these questions will necessitate a properly researched and realistic combined feasibility and market assessment to establish viability.

Colliers use their market knowledge and understanding combined with Investment Banking Financial Modelling capabilities to assess project feasibility and to make recommendations as to how a development will stand the best chance of achieving what may be its many objectives.