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CAPEX FORECASTING

Understand the interaction between CAPEX decisions and economic movement

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As property ages, estimated rental values fall against the index whilst yields increase, impacting your investment.
ProMS can include budgeted CAPEX and measure the potential uplifts from planned expenditure.

However it goes further, helping users understand the interaction between a property's depreciation, ERV and yield movements and inflation.

When a property becomes vacant after a lease end or break is exercised, or there is a landlord break option, ProMS Investor can model the potential uplift in value associated with a refurbishment for that economic scenario. In cases where this uplift exceeds the full and inflated costs of refurbishment, a refurbishment is modelled.

Refurbishment may be carried out at a number of points in the life cycle of the property depending on the economic environment as well as the choices of tenants.

The expected future cost of CAPEX can then be rolled up at the fund or portfolio level, allowing for detailed planning for CAPEX at different levels of probability.