BREAD advises potential or existing developers or investors on the financial viability and sustainability of property development project(s) under investigation. The financial aspects of the project that are considered include the following-:
- Development cost including land acquisition
- Funding: equity; and long-term loan Projected or existing Income
- Property Expenses: depreciation; repairs and maintenance; property management costs; property rates; building insurance; and vacancy allowances
- Market variables: interest rate; cost of equity; weighted average cost of capital; loan repayment term; annual loan repayment; inflation adjustment; income escalation; and effective tax rate
Furthermore, we will produce project financial statements to advise our property development clients on the following-:
- Income Statement – which indicates the projected retained earnings in the loan repayment period.
- Cash flow statement – this provided the Internal Rate of Return and Net Present Value of the project
- Balance Sheet – detailing the assets, liabilities, and capital utilized in the development, and the income and expenses recorded each year.
With regards to Investment Portfolio Analysis, BREAD applies Property Asset Management expertise to advise clients on the performance of their property portfolio. Through portfolio analysis, we are able to establish: the overall performance of the portfolio; the most profitable properties; the least performing properties; property market analysis (by property type); potential for growth; which properties may be retained for furtherinvestment return; and which are to be proposed for divestment; competition; and risks.
This is a detailed research analysis that involves comparing the portfolio of properties with similar portfolios or properties within the market. It is highly research-based and relies heavily on the company’s many years of experience in the property industry in Botswana and the knowledge attained thereof, as well as the collection of data from the property companies, agents, and other players in the property industry.