FEASIBILITY ANALYSIS : REDEVELOPMENT OF PHOENIX BUILDING

Abstract

"Risk is the very business of neat estate development, while uncertainty is the environment within which it operates. The inevitable long gestation period of property development renders it vulnerable to changing market conditions which are in turn fraught with uncertainty. Nevertheless, by identifying those elements of uncertainty that are to some extent within their control and by recognising the really of uncontrollable uncertainty, developers put themselves in a better position to make informed and measured decisions about their project. With increasing scale and complexity of real estate developments, developers and investors should no longer rely on their gut feeling on hearsay when making investment decisions. A feasibility analysis should be conducted to ensure that and development decisions made one supported by reliable market studies as well as an accurate ' assessment of its financial position. However each developer may have different objectives and one subjected to different constraints. As such the analysis undertaken should accommodate their varyinq objectives.