Our Underwriting determines “Highest and Best Use” optimizing a project's unrealized value. Value is confirmed through third party appraisals.
The development perspective
Land value is informed by what a site can credibly become.
Our underwriting considers the land, approvals, market demand and development programme together. Positioning, branding, amenities, hospitality operations, pricing and phasing can all influence the investment case.
We refine the development strategy and test its economics before presenting the opportunity for capital review. Independent valuation provides an external assessment of the asset and the assumptions supporting it.
Underwriting in practice
Muscat, Oman
US$59,600,000
8-acre beachfront site
The underwriting included a luxury hotel and serviced apartments for Oman's leading private family office. The project was divested to a regional developer at a significant premium.
Independent valuation
HVS, Dubai
Bahia, Brazil
US$56,400,000
18-acre beachfront site
A resort residence club undertaken for a Swiss national and investor with international land holdings. The underwriting unlocked a material increase in value not previously identified by the land partner.
Independent valuation
Cushman & Wakefield, São Paulo
The Bahamas
US$65,300,000
75-acre shore-to-shore site
The development included a luxury resort with 40 hotel suites and 85 resort villas, together with restaurants, bars and resort amenities. The underwriting unlocked a significant valuation not previously identified by the land owner.
Independent valuation
HVS, Miami
West Coast, Nevis & St Kitts
US$39,000,000
35-acre luxury resort
Undertaken for a French national and investor with international project experience. The underwriting unlocked a significant valuation not previously identified by the investor.
Independent valuation
HVS, Miami
Selected historical project experience. The figures shown are the As-Is land valuations reported for these projects, rather than current valuations. Independent valuer reports are prepared in accordance with RICS appraisal and valuation standards or equivalent standards in the relevant jurisdiction.
Clarity on the valuation basis
The value of the asset in its current but highest and best use condition, reflecting our underwriting and financial models, the valuation date, relevant approvals and the independent valuer’s stated assumptions.
The prospective value of the proposed scheme. It depends on delivery, sales, costs, timing and other assumptions, and must remain distinct from current land value.
A third-party valuation helps test the investment case against market evidence and an expressly defined scope and valuation basis.
We examine how changes in pricing, costs, timing and operating performance affect the project and its capital requirements.
Loan to value
LTV (Loan to Value) expresses a loan as a proportion of the asset value used for that assessment. A ratio based on current land value is different from one based on a completed development valuation.
The valuation basis, timing, debt amount and security must be read together. We consider leverage alongside total development costs, funding needs, repayment sources and the project’s ability to withstand changes in assumptions.
From valuation to financing
Equity, construction financing and the timing of real estate sales need to support the same development plan. Our work connects the valuation case with capital requirements, project control and the route to repayment or retained income.