The process of development analysis involves many disciplines. A feasibility report should fully communicate the facts, assumptions, figures and recommendations gained during the analysis process when reporting to Board and key stakeholders.

The process of information management requires investigative skills, mathematical application of data and intuitive thought in establishing the following criteria:

• Development Objectives
• Social & Economic Objectives
• Financial Objectives

Launch Corporation undertakes professional and independent analysis and advice. We explore numerous proposed outcomes in order to make informed decisions about property development and investment that both mitigate risk and maximise return.

These outcomes are derived from an understanding of the fundamental macro drivers and economic factors impacting on the performance of the property market, which enables us to identify opportunities today, whilst at the same time anticipating future direction and growth.

These include but are not limited to:

• Demand and Supply studies;
• Competitor analysis;
• Highest and best use studies;
• Project feasibilities studies;
• Planning, environmental and risk assessments;
• Economic impact and viability assessments;
• Identification of market opportunities.

A series of probabilities and sensitivities are overlayed on each case-study to measure professional and construction costs, contributions, escalations, housing affordability to project time span, selling & land holding costs, credit policy and finance.

Finally, we measure key performance indicators in meeting our investment criteria including:

• Margin on Development Cost (MDC);
• Return on Equity (RoE);
• Project Internal Rate of Return (IRR);
• Time Value of Money (NPV, PV and FV);
• Risk Premium;
• Debt Coverage;
• Sensitivities & Probabilities;
• Residual Land Value (RLV).

When our Target Rate objectives for measuring project, investment and capital returns are achieved, we commence negotiations with a view to securing the site based on a determined Residual Land Value (RLV).

It is constantly said that property development profits are made at the land acquisition stage factoring both time and price into that equation. Therefore it is the Residual Land Value because it is the (maximum) residual amount that is left to pay for the land after all relevant costs, incomes and return criteria for the development have been properly taken into account.

For this reason Launch Corporation rejects most proposals offering re-development opportunity. Our success is derived from not only identifying potential opportunities, but also ensuring that due consideration in meeting all investment factors are exercised at the very beginning. This rigorous filtering process ascertains that our investment meets with Board-focused objectives before a dollar is transacted for the land.