When it comes to land development and property renovation, Rodschinson’s approach is based on years of meeting client needs and ambitions, small and large, globally as well as locally. Our core project development approach is centered around promising yet realistic innovation ideas and turning them into ground-breaking yet achievable concepts.
Understanding the purpose of the development is essential when entering into a transaction or repurposing the project. Often a luxury residential tower will incur higher investment for premium features which may not be found in a mid-ticket size project and hence attract higher construction costs or compliances. Further, various projects are developed with a specific end-use in mind, such projects are termed as Built-to-suit and the finishings and layout of such a project may hinder it for different purpose e.g. Hotel to a Hospital .
Like every real estate aspect, the gross square meter or square feet area is essentially the inventory of a project and are useful to determine unit economics. We consider the saleable or leasable area for this specification e.g. Residential projects – built-up area which a project can sell whereas for a warehouse it will be the leasable area which a project has. In case of a hotel development we can also substitute the no of rooms being developed as for a hotel its inventory is more linked with a room rather than its size.
Given the sizeable investment in commercial projects, often the developer or owner enters into a pre-lease contract with customers. These agreements ensure that the project upon completion will immediately earn cash flows thereby mitigating risk. Trade-off here is that leasing customers enter pre-lease agreements if the development is specifically built to its requirements or agreement is for a lower rental than markets.
Like any real estate project, location is of criticl importance to the gross development value and purpose of the project. Apart from the premiumness of the location, one also needs to be mindful of other aspects which may lead the project owner to incur specific liabilities, disadvantages or expenses. e.g. developments near forest areas find it tougher to register and claim insurance.
Refers to the Value of the project upon completion. This can also be calculated as the market sale value the project and its units will attract upon completion. This figure tells us about the potential of a project which is still under development and the return one can expect on the balance investment to complete the project.
While construction has standard procedures and elements, certain variables used in the construction can either simplify or create hassles for owners and tentants. Projects in humid environments and near water bodies require more frequent renovation hence construction is to be done with suitable materials requiring less maintenance.
Whether the project has approved necessary licenses, comes under special government identified zones, or is subject to unclean title plays a significant role in its development potential, access to capital and appeal to targeted consumers. Rodschinson Investment will make sure to accompany you in all administrative procedures including regulatory approvals.
During the first stages of the planning of any project, an important factor to take into consideration is to get a realistic estimation of time to complete. The estimated time left until the project is completed is one key element on the project plan. Some projects have multiple phases and each phase could have different times for completion.
At Rodschinson, we listen to our clients and use our vast experience and expertise to craft projects specific to each situation. Our business may be global, but our attention is personal.
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