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STUDIES

STUDIES

Highest & Best Use Studies

The initial analysis of the site, market conditions, and land use regulations (as contained on the “mulkiya”/“krooki” or affection plan) usually limits the number of property uses to a few reasonably probable choices. These probable choices form development options which are further studied to determine the maximally productive use. The HBU ensures that the “business case” is established before engaging in any design activities.

During the first phase, a Highest & Best Use study (HBU) is required to answer the question: “What should be built on this plot?”

Based on the clearly defined target markets and product positioning, a project area programme is developed encompassing every component. This serves as the most important input into the design process and minimises abortive design work. This type of risk reduction through concept testing at the “conceptualisation and feasibility” stage, mitigates the risk of cost overruns that can cripple a real estate development project.

Market & Financial Feasibility Studies

Once a concept design has been prepared, Market and Financial Feasibility Studies (“MFFS”) are typically requested by developers for confirming the viability of the proposed project and to secure funding or an operator/partner for the project. The key question answered by the MFFS is:

“Is the proposed concept feasible from a market and financial perspective?”

TCN UAE’s team conducts extensive fieldwork to gather and validate the latest market data while existing data is confirmed and correlated through interviews with industry experts. This rigorous focus on quality ensures that our bankable MFFS make recommendations on optimizations to the concept to enhance market and financial viability, such as:

Tailoring the development schedule (or using phasing) to match market absorption rate and thereby reduce the risk of carrying costs for unabsorbed units.

Loan structuring recommendations (optimal debt-to-equity ratio, loan duration, and moratorium to ensure debt service coverage)

Facility and amenity recommendations to differentiate positioning from competitive set

Unit mix and pricing recommendations

Capital budget recommendations

Market & Financial Feasibility Studies

Once a concept design has been prepared, Market and Financial Feasibility Studies (“MFFS”) are typically requested by developers for confirming the viability of the proposed project and to secure funding or an operator/partner for the project. The key question answered by the MFFS is:

“Is the proposed concept feasible from a market and financial perspective?”

TCN UAE’s team conducts extensive fieldwork to gather and validate the latest market data while existing data is confirmed and correlated through interviews with industry experts. This rigorous focus on quality ensures that our bankable MFFS make recommendations on optimizations to the concept to enhance market and financial viability, such as:

    Tailoring the development schedule (or using phasing) to match market absorption rate and thereby reduce the risk of carrying costs for unabsorbed units.

    Loan structuring recommendations (optimal debt-to-equity ratio, loan duration, and moratorium to ensure debt service coverage)

  Facility and amenity recommendations to differentiate positioning from competitive set

  Unit mix and pricing recommendations

  Capital budget recommendations

Bespoke Market Research

The bulk of the bespoke market research we are asked to undertake are extensive benchmark studies for operators of airports, industrial and automotive clusters with the aim to arrive at a market facing rate card for the various real estate asset classes. An up-to-date and market-justified pricing strategy ensures that our Clients are not losing out on deals due to uncompetitive pricing whilst flexibility is taken into account to accommodate discounts for bulk deals or longer-term leases.