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At a Glance

Project Overview

Four dimensions define the scope of this model: asset type, physical program, capital structure, and analytical outputs. Each is summarized below.

Asset Type — Mixed use urban development combining residential and street-level retail in a single strata building.

Physical Program — 36 residential units and 850 sqm of retail gross leasable area across 4,200 sqm total gross floor area.

Capital Structure — A$8.1M investor equity alongside A$10.0M senior debt. Construction starts 2027, operations commence 2029, exit in 2035.

Model Outputs — Development costs, debt schedule, operating pro forma, sources and uses, equity returns, and 14-point audit check suite.

Background

The Situation

The Modeling Challenge

Mixed use development projects require a model that can hold phased construction draws, variable financing mechanics, staggered lease up, and a multi-year operating history before an exit event. Most spreadsheet approaches treat these as separate workbooks, which creates version control problems and makes sensitivity testing unreliable.

This model was built to connect all four stages in a single linked workbook, so that any change to a cost line, a draw assumption, or a lease up rate propagates through to the debt schedule and the equity return waterfall without manual reconciliation.

Decision Quality and Investor Readability

The goal was not simply to produce an IRR. The goal was to build a model that could support investor decision making at each stage of the capital cycle. That means a clearly structured assumptions page, a development budget that ties to a quarterly draw schedule, a debt module that calculates interest during construction, and an operating pro forma that feeds cleanly into an exit valuation.

Readability was treated as a modeling standard, not an afterthought. The workbook is structured so that an investor or lender can follow the logic from inputs to outputs without needing to reverse engineer formulas. All audit checks are visible and labeled. Every summary panel references the underlying schedule that produced it.

The project spans a construction period from 2027 to 2029, followed by a six-year hold period to exit in 2035. That timeline required the model to handle both development-phase accounting and stabilized-asset accounting within the same structure.

Architecture

Model Architecture

The workbook is organized as a linear analytical chain. Each module receives outputs from the prior stage and passes its results to the next. The structure below reflects the actual tab sequence in the workbook.

Assumptions

Costs, timeline, financing terms, lease rates, cap rate

Development Budget

Land, hard costs, soft costs, phased draw schedule

Debt and Draws

Senior facility, drawdowns, IDC, repayment

Lease Up and Operations

Revenue ramp, NOI, operating cash flow

Exit Value

Cap rate applied to stabilized NOI

Equity Returns

IRR, equity multiple, net proceeds

Each layer is directly linked to the one before it. Timing, cost, leverage, and operating assumptions all flow through to investor outcomes. There are no manual inputs between modules. A change to the construction draw schedule, for example, automatically updates interest during construction, which flows to total project cost, which updates the sources and uses, which recalculates equity at entry and net proceeds at exit.

Contents

What the Workbook Includes

The model is organized into six functional modules. Each is self-contained but linked to the broader analytical chain.

Assumptions and Timeline — Central inputs page covering project dates, unit mix, retail GLA, cost per sqm, financing terms, lease rates, cap rate, and hold period. All downstream schedules reference this page.

Development Budget and Phased Draw Schedule — Itemized cost budget covering land at A$2.8M, hard costs at A$11.5M, and soft costs at A$1.4M. Draws are phased quarterly across the construction period.

Debt Schedule and Interest During Construction — Senior facility of A$10.0M modeled with quarterly drawdowns, accruing interest during construction, and scheduled repayment on stabilization. DSCR calculated at Year 3 at 1.50x.

Revenue and Lease Up — Residential and retail revenue modeled separately with lease up ramp assumptions. Operating expenses, vacancy, and net operating income tracked annually from 2029 through exit.

Sources and Uses — Summary reconciliation of total project uses at A$18.1M against equity and debt sources. Confirms that the capital structure is fully funded with no gaps or circular references.

Equity Returns and Audit Checks — Equity IRR of 10.3%, multiple of 2.03x, and net proceeds of A$14.05M. Accompanied by 14 labeled audit checks that all pass, covering balance, timing, and return consistency.

Selected Outputs

Key Model Panels

The following panels represent the primary output sections of the workbook. Each is designed to be presentation-ready and directly traceable to its source assumptions.

1

Development Budget and Quarterly Draws — Total development cost of A$17.3M is itemized by cost category and phased quarterly across the 2027 to 2029 construction window. Land at A$2.8M, hard costs at A$11.5M, and soft costs at A$1.4M are each shown as separate line items with draw timing. The quarterly draw schedule feeds directly into the debt facility utilization calculation.

2

Debt Schedule and Capital Structure — The A$10.0M senior facility is drawn against the quarterly construction schedule. Interest during construction accrues on the outstanding balance and is capitalized into total project cost. The schedule shows opening balance, drawdowns, interest, and repayment through to full discharge. Year 3 DSCR of 1.50x is calculated from stabilized NOI divided by annual debt service.

3

Lease Up and Operating Pro Forma — Residential and retail revenues are modeled from first occupancy in 2029 with lease up ramp rates applied to both income streams. The pro forma shows gross revenue, vacancy allowance, operating expenses, and net operating income annually through the 2035 exit year. Exit NOI of A$1.23M reflects a stabilized, fully leased asset.

4

Sources and Uses Summary — Total uses of A$18.1M are reconciled against A$8.1M investor equity and A$10.0M senior debt. The summary confirms that sources equal uses with no residual gap. Fees, interest during construction, and contingency are each shown as discrete line items within the uses column to avoid aggregation that obscures cost structure.

5

Equity Return Outputs — Net equity proceeds of A$14.05M at the 2035 exit are derived from gross property value of A$23.45M, after debt repayment and transaction costs. The equity IRR of 10.3% is calculated on a quarterly cash flow basis. The 2.03x equity multiple represents total net distributions divided by contributed equity of A$8.1M.

6

Audit Checks — 14 labeled audit checks cover balance sheet integrity, sources and uses reconciliation, debt drawdown consistency, return calculation cross-checks, and NOI to value linkage. All 14 checks pass. The audit panel is visible on the summary tab so that reviewers can confirm model integrity without opening individual schedules.