Financial feasibility & economic impact assessment – Muscat
Project Name: Consultancy Services for Financial Feasibility & Economic Impact Assessment of New Futuristic Smart City
Client Name: Government Entity
Location: Oman
Assets Covered: Residential, Retail, Hotel, Industrial and Office
Project Size: 15.7 million sqm plot
Project Value: Confidential
Executive Summary
The client is considering developing a masterplan for a project called “The New Futuristic Smart City. This project will span a 15.7 million square meter plot in Seeb District of Muscat Oman. They aimed to identify the optimal development scenario, a pre-concept design brief (including project concept, positioning, unit mix, and typology), and a delivery plan outlining the roles of stakeholders (such as funders, developers, and operators).
Our Solution/Recommendations
Cavendish Maxwell was appointed to undertake financial feasibility study and economic impact assessment of the Project, reflecting current and anticipated market conditions, during which we conducted the following activities:
- We conducted a site visit to evaluate its competitive advantages by analysing access, visibility, market catchment, location attributes, proximity to demand generators, and nearby infrastructure. Additionally, we assessed the surrounding land uses and identified key aspects the site could capitalize on.
- We conducted a macro and socio-economic assessment to identify key indicators affecting core real estate assets (residential, retail, offices, and hospitality) in Muscat. We will focus on current and future market trends, analyse demand-supply trends, assess necessary supporting asset types, and examine comparable developments and competitors’ value propositions to ensure a successful development.
- Based on previous stage outputs, we have recommended multiple development options for your site. These options will incorporate our research, market findings, site analysis, lessons from benchmarked developments, and observed market trends and dynamics relevant to the project.
- We provided a qualitative and quantitative assessment of the potential economic contribution of the proposed development options. Estimates included Gross Value Added (GVA) and employment (direct, indirect, and induced). From the economic impact assessment, we shortlisted the most viable development option.
- We conducted a financial feasibility analysis of the most viable development option. We developed financial projections, including Profit and Loss and Cash Flow statements, and assessed overall financial viability using indicators such as IRR, Payback Period, and NPV. Additionally, we outlined a high-level business case, identifying next steps, objectives of potential stakeholders, delivery strategy, and funding strategy for the project.
Completion Date: 2023
