How do demand, occupancy, pricing, development, and operating assumptions shape the project?
Model profile
Student Housing
Purpose-built student accommodation, modelled the way it actually lets. Beds are taken for an academic year during a letting season that runs months ahead of it, so occupancy is earned once a year rather than assumed every month, and beds unlet when term starts stay unlet until the following September. Debt is structured the way these schemes are really financed, and the plan is judged on the yield it is built at against the rate it will be sold at.
Decision scope
Questions this model helps you examine
What capital programme, ramp-up, working capital, and financing structure are required?
How do valuation, downside cases, and timing changes affect investor returns?
Model capabilities
What this model includes
The profile below is generated from the same catalogue and workspace definitions used by the application.
- Academic-year letting cycle: a letting season, contracted tenancy weeks, and a lease-up ramp
- Beds rather than units, priced per bed per week - the unit the market, a nomination agreement and a valuer all use
- Pre-lease position tested against the eighty to ninety per cent a lender looks for before term
- University nomination agreement with its own discount, term and indexation
- Summer and short-stay letting for the weeks a tenancy does not cover, or the void if it is not sold
- Arrears net of guarantor and advance-payment cover
- Turnover and re-let cost, because every bed turns over every year
- Funded FF&E reserve sized for furniture on a student replacement cycle
- Development spend curves, capitalised construction interest, interest-only through lease-up and a debt service reserve
- Debt service cover and debt yield, with the facility optionally solved to the covenant
- Yield on cost against the exit capitalisation rate, and the development margin that follows
- Tornado, named scenarios, goal seek, stress thresholds and a correlated Monte Carlo
Build the case
Inputs and workspaces
- AssumptionsInventory, rent, tenancy weeks, operating cost and the development programme
- LettingThe letting season, lease-up, renewals, nomination agreement and summer
- FinancingCapital plan, the development facility, reserves and covenants
- AnalyticsSensitivity, scenarios, goal seek, stress thresholds and the Monte Carlo
Review the result
Outputs and analysis
- Project net present valueAt the project discount rate
- Project IRRUnlevered, to the exit
- Equity IRRLevered, to the exit
- Yield on costStabilised NOI over development cost
- Spread over exit capBasis points
- Development marginValue at stabilisation over cost
- Stabilised pre-leaseBeds let at the start of term
- First-year pre-leaseThe lease-up season
- 8 additional metrics in the workspace
- Financial statementsDetailed schedules
- Letting, development, covenants & valuationDetailed schedules
Designed for review
Who this model is for
- Developers and sponsors
- Hospitality and property operators
- Financial advisers
- Investors and lenders
Governed evidence
The review trail stays with the result.
Each completed calculation preserves the model version, saved inputs, reporting-currency snapshot, immutable run, and result fingerprint used for its reports.
- Version-controlled calculation logic
- Saved assumptions and scenarios
- Immutable calculation runs
- Reporting context preserved in exports
Ready to explore the case?