Payment-plan restructuring and pricing

Client requests to change down payments and instalment periods.

Context

Client requests to change down payments and instalment periods.

Scope

Present-value discounts and revised instalments.

Approach

Discounting against deposit rates, financing cost and the shareholder return target.

Outcome

Pricing recommendations per scenario.

Skills applied

Time value of money · Pricing

How this kind of work is done

  • Gather land, design and market assumptions for each phase.
  • Build the feasibility model: costs, sales, collections and funding.
  • Test pricing, payment plans and phasing against cash and return.
  • Present scenarios and a recommendation to management or the board.

What a similar business can take from it

The same approach applies to companies facing a comparable question: start from the decision the numbers must support, make the records reliable, and keep the result simple enough for management to use every month.

Outcome

Pricing recommendations per scenario.

Organisation

The Ark Group for Real Estate Development

Role

CFO

Facing a similar challenge?

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