Investment Advisory

Introduction

Capital Point’s Pre-Investment Advisory Services include a review of the projects’ Statutory Permission, Buildable Potential, Entitlement & Massing, Master Schedule and Construction Phasing, a review of the project budget, costing, and valuation, and an overall risk assessment to protect the interests of investors or financial institutions.

Scope of Services of Investment Advisory:

The construction process necessitates numerous approvals from various departments and authorities. A thorough review and diligence of all approvals is required to protect the Investor’s investment in any project. The approvals’ validity, sufficiency, and adequacy are examined and summarised. The summary of future major approvals required for project completion, as well as the approvability of remaining approvals, is evaluated, as is the cost of approvals.

Every land parcel is entitled to a different FSI / FAR based on several parameters, including but not limited to the prevailing zoning regulation, abutting road width, reservations and restrictions on the plot, height restrictions, development control regulations, other policy regulations, and so on, all of which influence the plot area, etc. To conclude the Potential FSI / FAR Entitlement & Utilisation on any plot, thorough diligence of all the parameters impacting the FSI / FAR is performed.

Because the FSI Area, Construction Area, and Saleable Area form the foundation of any real estate business plan, the validation and correlation of these areas is critical for all Investors and Lenders to assess the viability of the proposed investment. Quantum has an in-house team of architects and planners spread across geographies who specialise and stay current in this scope of services.

Construction projects, both greenfield and brownfield, are strictly governed by various development and policy limitations. These limitations are specific to every project site. According to these limitations, the potential for the proposed development must be evaluated. For the clients, Capital Point thoroughly evaluates these constraints and provides advice on the buildability massing of the various projects under consideration.

The Master Schedule and construction phasing are critical for the business plan’s execution. To meet project milestones, Capital Point conducts a critical analysis of all activities in the Master Schedule and construction phasing.

A project budget submitted by the Developer requires a detailed analysis of each line item cost to confirm the values submitted. It is important to ensure that the budget is charging realistic rates considering the construction schedule and that the lender or investor are of the same financial understanding. Capital Point also looks at any approved or potential changes to a budget created by scope changes, design modifications, value engineering, or force majeure.

Capital Point offers a variety of Real Estate Valuation and Consulting services to developers, investors, advisors, and lenders looking for help with existing assets, potential acquisitions, new development projects, and properties slated for disposition. We provide clients with a comprehensive range of services to assist them in making real estate decisions, as well as unparalleled experience and market knowledge in the local real estate market.

Due to the long gestation period of real estate, risk and uncertainty are inherent, as is the passage of time. At various stages of the project, capital Point identifies potential risks and advises investors on risk mitigation strategies across major risk categories.