Development Assistant SuiteDevelopment, valuation and decision tools

Residual Land Valuation

Establish the maximum supportable land price, understand the value bridge and negotiate alternative land payment structures without losing sight of the required return.

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1. Development basis

All development costs are calculated from GFA / BUA.

GFA basis

Project name

Currency

Land area (m²)

GFA / BUA (m²)

Sale value / GFA

Other revenue

Construction / GFA

Infrastructure

2. Cost and return allowances

Enter explicit allowances before solving for land.

Soft costs % hard

Contingency %

Marketing % GDV

Finance % dev. cost

Acquisition costs % land

Target developer profit %

Profit basis

3. Land commercial structure

Translate the residual ceiling into a payment structure—not every land deal is an outright purchase.

Negotiation view

Structure

4. Residual value bridge

From development value to the maximum price payable for land.

Gross development value	EGP 9,760,000,000
Construction cost	(EGP 3,720,000,000)
Soft costs	(EGP 446,400,000)
Infrastructure	(EGP 420,000,000)
Contingency	(EGP 343,980,000)
Marketing & sales	(EGP 292,800,000)
Finance allowance	(EGP 417,854,400)
Developer profit (20% of GDV)	(EGP 1,952,000,000)
Acquisition costs	(EGP 52,852,820)
Residual land value	EGP 2,114,112,780

5. Two-way sensitivity

Residual land value under changes in selling value and construction cost.

Values in millions

Cost \ Price	-10%	-5%	+0%	+5%	+10%
-10%	1866	2226	2586	2946	3306
-5%	1630	1990	2350	2710	3070
+0%	1394	1754	2114	2474	2834
+5%	1158	1518	1878	2238	2598
+10%	923	1282	1642	2002	2362

Development Assistant SuiteDevelopment, valuation and decision tools

Residual Land Valuation

Coastal Mixed-Use Development

Acquisition Ceiling & Commercial Terms

Maximum supportable land value: EGP 2,114,112,780

EGP100,000 m² land155,000 m² GFA / BUA

Coastal Mixed-Use DevelopmentResidual Land Valuation

Executive conclusion

Supportable Land Acquisition Position

The residual conclusion is the maximum land consideration supported by the entered development value, cost allowances and target return.

Residual land valueEGP 2,114,112,780Outright purchase

Land value / m²EGP 21,141per m² land

Land value / GFAEGP 13,639per m² GFA / BUA

Land value / GDV21.7%before acquisition costs

Acquisition recommendation

Negotiation ceilingEGP 2,114,112,780. Do not exceed this ceiling without an evidenced change in value, cost, timing or required return.

The residual indication is above the comparable evidence. Maintain bidding discipline and investigate evidence quality.

Basis of conclusion

Development basis	155,000 m² GFA / BUA
Target developer profit	20.0% of GDV
Land structure tested	Outright purchase
Comparable cross-check	EGP 1,450,000,000
Residual variance	+45.8%

Coastal Mixed-Use DevelopmentResidual Land Valuation

Value bridge

From Development Value to Residual Land

All development costs are calculated on the stated GFA / BUA basis before solving for land.

Residual calculation

Gross development value	EGP 9,760,000,000
Construction cost	(EGP 3,720,000,000)
Soft costs	(EGP 446,400,000)
Infrastructure	(EGP 420,000,000)
Contingency	(EGP 343,980,000)
Marketing & sales	(EGP 292,800,000)
Finance allowance	(EGP 417,854,400)
Developer profit (20% of GDV)	(EGP 1,952,000,000)
Acquisition costs	(EGP 52,852,820)
Residual land value	EGP 2,114,112,780

Key development assumptions

Land area	100,000 m²
GFA / BUA	155,000 m²
Sale value / GFA	EGP 62,000
Construction / GFA	EGP 24,000
Soft costs	12.0% hard cost
Contingency	7.5%
Marketing & sales	3.0% GDV
Finance allowance	8.0% development cost
Acquisition costs	2.5% land

Coastal Mixed-Use DevelopmentResidual Land Valuation

Downside testing & commercial structure

Sensitivity, Market Cross-Check & Land Terms

Residual land value is tested against changes in selling value and construction cost, then translated into the selected commercial structure.

Residual value sensitivity

Cost \ Price	-10%	-5%	+0%	+5%	+10%
-10%	1866	2226	2586	2946	3306
-5%	1630	1990	2350	2710	3070
+0%	1394	1754	2114	2474	2834
+5%	1158	1518	1878	2238	2598
+10%	923	1282	1642	2002	2362

Central case is highlighted. Values are shown in millions.

Comparable cross-check

Comparable indicationEGP 1,450,000,000EGP 14,500 / m² land

Residual conclusionEGP 2,114,112,780

Variance+45.8%residual vs comparable

Reconciliation requiredResidual value exceeds the market indication. Preserve market-based bidding discipline.

Land Payment Terms & Negotiation Parameters

Selected structure - Outright purchase

Supportable considerationEGP 2,114,112,780

Payment form	Cash consideration
Maximum bid	EGP 2,114,112,780

Negotiation guardrails

Separate headline price from present value for deferred terms.
Define the revenue base, audit rights and settlement timing for revenue share.
Test security, guarantees, termination and step-in rights.
Re-run phasing, escalation, tax and finance timing before execution.

Decision ruleCommercial flexibility changes payment form, not the economic ceiling.