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.