Real Estate Development Business Plan

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Real Estate Development Business Plan

  1. 1. Company Name Here SAMPLE Presented by: John-Andrew Kambanis 2008 – 2009 Development Business Plan 1 Company Name Here
  2. 2. Table of Contents • 2007 Goals and Tactics • 2008 Business Plan • 2009 Preliminary Plan • 2010 Vision • 2008-2009 Development Metrics 2 Company Name Here
  3. 3. 2007 Goals & Tactics A Look Back GOALS ACCOMPLISHMENTS Incorporated 1st round of analytic modeling New analytic models capable of w/ Dev. Modeling project. E&Y Model underwriting & reporting Mixed-Uses in complete. Dyna Model amended to allow addition to Retail forecast of mixed-use Developed Pipeline Cost and Income Refine & complete Development Status Report to act as communication tool Summary to supplement Status Report, among departments GAP planning and rolling 60 Constructware now in use with all new Integrate Constructware into Accounting projects and have achieved bi-directional & Management Information System (MIS) integration with accounting Development Modeling Project will establish Establish consistent MS Project timetables as an intra-departmental tool format for timetable, training plan and for coordinating departmental resources implementation plan 3 Company Name Here
  4. 4. 2007 Goals & Tactics A Look Back GOALS ACCOMPLISHMENTS MPC’s now using JDE system for all uses including land sales and inventory, home Complete transition of MPC’s onto new accounting system sales, tax and bond pay. Defining executive level reporting. Built up staff on retail side. Solidified Improve staffing and cross-department working relationship with asset management relationships / communications and construction. Q1 and Development staffing model Enhance internal training & better distinguish between “project managers” prepared. Talent readiness implemented with & “developers” all levels. 2007 Recruits from Accenture, DePaul, Yale Enhance recruiting efforts at top schools and Northwestern. Instituted PDI as screen for all VP promotions and new hires. 4 Company Name Here
  5. 5. 2007 Development Activity • Grew the Portfolio through new developments A Mall and expansions or densifications of existing B Mall C Mall Place centers D Town Center E Coastland Center F Mall • 16 Major project openings delivered 2.5 MSF Galleria at T Gateway O N Mall • Contributed $66.9 million to year 1 NOI O Center Mall P Hills Power Center • Total project costs of $1.1 Billion R Mall River Mall Shops at M Southwest Plaza Vista Commons 5 Company Name Here
  6. 6. 2007 Development Stats • $8.0 million in total project cost / person • $0.5 million in NOI growth / person • 1.3 Projects / person Development Headcount* 162 Approved Projects 92 Seed Phase Projects 114 Project Openings 42 *Development with Tenant Coordination 6 Company Name Here
  7. 7. 2007 Initiatives • Sustainability Lead process of evaluating and adopting Green Development programs, starting with Summer Towne and Cotton Towne With Sustainability team and Design and Construction, have identified 6-9 key projects as part of the Sustainable Development Pilot Group • Organic Growth Lead organic growth by creating new products, including those in mixed-use densification, developed to engage customers looking for new and better experiences • Department Store Communication Rationalized and implemented department store communications process • Market Research & Consumer Intelligence More disciplined approach to consumer research establishing brand positioning and character of projects Development of market research strategy focusing on new development site acquisitions 7 Company Name Here
  8. 8. 2007 Talent Readiness Development Corporate Asset Profile Evaluation of 66 Employees Quadrant 2 Quadrant 1 1 – Quadrant 2 & 3 CORPORATE ASSET High 20 11 CORE Quadrant 4 Quadrant 3 2 25 Low 5 2 – Quadrant 3 & 4 Low High POTENTIAL FOR ADVANCEMENT 8 Company Name Here
  9. 9. 2008 Goals & Tactics What’s Ahead of Us? Projects Process – Implement development pipeline – Complete Phase I of the development modeling project and launch phase 2 in Q1, 2008 – On-time on-budget openings – Continue working on E&Y Scenario Builder for – Solidify pre-development milestones financial analysis Hilton Head – With Construction, keep all projects in process Frisco JV – Development & Asset Management will establish NW Houston conceptual long-term development strategy for – New Site Prospects all assets – Plan & implement project controller function Gainesville, VA (Suburban allowing for accurate forecasting with Washington DC) appropriate teams Apex, NC (Suburban Raleigh) – Implement market research and consumer Ladera Ranch (Orange County, CA) intelligence strategies People – Execute “soft close” process with construction – Implement talent readiness results and financial services – Complete staff-up – Revise development leasing process to bring full resources to bear and clarify role of developer – Continue alignment with Development / Asset Management / Construction – Establish tenant coordination report as the standard report for projected opening – Implement new developer incentive plan occupancies 9 Company Name Here
  10. 10. 2008 Goals & Tactics What’s Ahead of Us? Major Development Openings and Completions • 2.3 Million Square Feet • Contributing $104.2 million to year 1 NOI • Total project costs $1.5 Billion A Mall M Plaza River Crossing B Marketplace New Mall Shops at La Canta Bridge Commons North Mall Southland Center C Creek North Court Town East Columbia, MO N at N Thomson Town Center Cotton Square Park Mall Tucson F Mall Park West Mall West Village Shops Fox River Center Parks @ Clinton S Tower Place Governor's Square Providence Place Westroads Grand Canal Red Mall White Hills Mall of Louisiana Red Promenade Willow Mall (NJ) Mall St. Matthew's Rio West Mall Wood Center M Park Mond Mall 10 Company Name Here
  11. 11. 2009 Goals & Tactics A Look Into the Future Major Development Openings and Completions • Projected 2.7 Million Square Feet • Contributing $108.7+ million to year 1 NOI • Total project costs $1.7 Billion A wood H Mall Bay Mall Jordan Mall Boise Square Ken Town Center P Lakes Brass Mill Center Lynn Mall P Mall Cannery Hills Main Mall Pine Ridge Mall Chapel Road Mall St. Mary Silver Galleria C Mall Mayfair Mall South West Deer Creek N Lifestyle Summer Towne Centre Gateway Nesh Mall The Bridges @ Mall Hill Elk Promenade North Point Mall Valley Plaza Foothills Mall Oak Mall West Oaks Glen Square P Park White Moon Harbor Mall Peachtree Mall Willowbrook Mall 11 Company Name Here
  12. 12. Our Vision for 2010 A development organization which is best-in-class for all uses and approaches each project via: Master planning • • Mixed-use densification • Place making process First wave of mixed use projects are opening and residential market will rebound from 2006-2009 slump creating opportunities for more ambitious projects • Buy one other MPC due to downturn Larger array of mixed-use opportunities because of “Company Name” experience in mixed-use fully exploiting competitive advantage Focus on sustainability in mixed-use and MPC’s due to increased resource concern and threat of taxes based on carbon footprint 12 Company Name Here
  13. 13. 2008 Development Metrics GGP’s NOI Projections NOI Dollars 12.1 % Increase $3.2 $3.2 $3.1 6.2 % Increase $3.0 $2.9 $ Billions $2.9 $2.8 $2.7 $2.7 $2.6 $2.5 $2.4 2007 2008 2009 *NOI for operating properties 13 Company Name Here
  14. 14. 2008 Development Metrics Development Will Contribute 45% of 2008 Total NOI Growth Development’s Anticipated Contribution to Projected NOI Growth 350 300 Total 250 $347.9 M $ Millions 200 150 Total $169.7 M 100 38.5% 50 $133.7M 45.4% $77.0M 0 2008 2009 Development Contribution Remaining NOI Growth 14 Company Name Here
  15. 15. 2008 Development Metrics Top 5 2007 Openings Contributing to 2008 NOI ($ Millions) • New Towne $ 16.4 • Shops at Fallen Pines $ 10.1 • C Town Center $ 8.3 • Gate Overlook $ 5.7 • A Mall $ 3.6 Total $ 44.1 Representing 57% of Development’s Total Contribution 15 Company Name Here
  16. 16. 2008 Development Metrics GGP’s Annual Capital Expenditure Projections Pipeline Capital Expenditures 12.5% Increase 24.0% Increase $2.5 $2.6 $2.4 $2.0 $1.9 $ Billions $1.5 $1.0 $0.5 $0.0 2007 2008 2009 16 Company Name Here
  17. 17. 2008 Development Metrics GGP’s Annual Capital Expenditure Projections Pipeline Capital Expenditures $2.5 $2.0 $ Billions $1.5 $2.08 1.60 0.68 $1.0 $1.35 $0.5 0.03 0.03 $0.0 2008 2009 Construction Pre-Construction Seed 17 Company Name Here
  18. 18. 2008 Development Metrics Overhead Represents Less Than 2% of Annual Capital Expenditures Development G&A as a % of Pipeline Expenditures 2007 2008 2009 $ 1,899.2 $ 2,354.8 $ 2,649.1 Pipeline Capital Expenditure $ 27.9 $ 33.1 $ 34.6 Total Development Overhead Overhead as a % of Capital 1.3% 1.5% 1.4% Expenditures 18 Company Name Here
  19. 19. 2008 Development Metrics Percent of Total Development Department Costs Capitalized Development Department Costs Capitalized $35 $34.6 $30 $33.1 $27.9 $25 $ Millions $20 51.9% $15 51.7% 50.8% $10 $5 $0 2007 2008 2009 Total Overhead Capitalized Costs 19 Company Name Here
  20. 20. 2008 Development Metrics Development Department’s Approved Projects Average Total Cost Per Approved Project $100 $80 $81.5 $60 $ Millions $40 $43.3 44 $29.2 $20 34 21 $0 2007 2008 2009 Average Cost per Approved Project Number of Approved Projects 20 Company Name Here
  21. 21. 2008 Development Metrics Development Department’s Approved Projects Average NOI Per Approved Project $6 $5.9 $ Millions $4 $3.1 $2 $1.8 34 21 44 $0 2007 2008 2009 Average NOI per Approved Project Number of Approved Projects 21 Company Name Here
  22. 22. 2008 Development Metrics Total Write-offs Represent 0.2% of Annual Capital Expenditures Total Write-offs as a % of Pipeline Expenditures 2007 2008 2009 $ 1,899.2 $ 2,354.8 $ 2,649.1 Pipeline Capital Expenditures $ 3.7 $ 4.2 $ 4.7 Write-offs Write-offs as a % of Capital 0.2% 0.2% 0.2% Expenditures Note: Analyzing 2005-2006 trend 22 Company Name Here

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