Use Site Purchase to record acquisitions and related fees, and to review residual land value.

Add a purchase element

  1. Open Site Purchase.
  2. Select Add Purchase Element.
  3. Enter the site information and purchase price.
  4. Add further purchase elements if the project includes multiple acquisitions.

Calculate and apply residual value

  1. Set the target return in Key Metrics. Choose a percentage of costs or gross development value (GDV).
  2. Review the residual value in Site Purchase. It reflects the model's revenue, costs and target return.
  3. Select Apply beside the residual value if you want to use that figure as the purchase price.
  4. Review the updated price and metrics. Revisit the result whenever assumptions change.

The metrics include return on cost (RoC), return on GDV (RoGDV), return on equity (RoE), areas, units, project IRR and equity IRR.

Record acquisition tax and fees

Use the custom acquisition-tax option to enter a project-specific amount. Include the acquisition taxes, agent fees and legal fees relevant to the project.

Compare profit with your target

Review the expected profit and target return in Key Metrics. A profit figure displayed in red indicates that it is below the target you have set. Review the purchase price, costs and revenue assumptions to understand the difference.

Video walkthrough

If you need help with your project, email support@aprao.com.