FOR AEROSPACE & HIGH VALUE MANUFACTURING PARK
Client
Real Estate Developer
Products & Services
•Strategic Business Planning
•Financial Modelling & Pricing
•Cost-Benefit Analysis
•Life-Cycle Costing
•Socio-Economic Modelling
“Transforming the conventional approach of real-estate development to include the wider socio-economic benefits for the surrounding communities, on top of the direct economic benefits.”
Description of Project
Client
The client is a real estate developer active in Asia which is also part of a larger conglomerate which owned a diverse portfolio of subsidiaries in the sector of manufacturing, equipment & automotive. Having been in the business for almost 100 years, the client began to focus heavily on the real estate sector across Asia recently.
Background
Aspiring to be a special breed of developer specialized in manufacturing park development, the client planned to unlock the land value of one of its landbank which is approximately 900 acres by building the first high-value manufacturing park in the region.
Challenges & Expectations
With the land asset and anchor partner ready, the client realized that there is an imperative need to devise a financially feasible master plan that will deliver the state-of-the-art high-value manufacturing park with a sustainable business plan. The client also has greater vision from a socio-economic perspective, which is to create job opportunity for skilled worker, bring in foreign investment and ultimately contribute to GDP uplift.
Our Role on the Project
Scope of Services
Working with a multi-disciplinary team of consultants, we were tasked to deliver the business strategy, financial modelling & socio-economic modelling for the project.
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Solutions / Outcomes Delivered
We had developed a business model that minimize the upfront investment, reduce the operation & financing risk, at the same time maximize the return of investment. This model involved a combination of land sales and leases to various potential clients.
Working with design & engineering consultant as well as quantity surveyor, we had captured the key financial information and built a financial model that simulate the project financials for the next 30 years. This helped us to devise options for pricing strategy as well as construction schedules that are both financially feasible and technically practical for the project.
We had also developed a socio-economic model that quantify the benefits such as job creation, household income uplift and GNI contribution to justify the project’s benefits to the government authorities for approval in infrastructure investment.
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