Investment Advisory

Introduction

The services in the Pre Investment advisory by Quantum involves Review of Statutory Permission for the projects, Buildable Potential, Entitlement & Massing, Master Schedule and construction phasing, Review of project budget, costing and valuation and overall risk assessment to safeguard the interests of the investors or the financial institutions.

Scope of Services of Investment Advisory:

Review and validation of Approval Status:

The construction activity requires innumerable approvals from various departments and authorities. In order to safeguard the Investor’s investment in any projects, a thorough review and diligence of all the approvals is required. The validity, sufficiency and the adequacy of the approvals is analysed and summarized. The summary of the future major approvals required for the project completion and approvability of remaining approvals is assessed along with the cost of approvals.

Buildability analysis - Potential FSI / FAR Entitlement & Utilization on plots:

Every land parcel is entitled to different FSI / FAR depending on several parameters, not restricted to the prevailing zoning regulation, abutting road width, reservations and restrictions on the plot, height restrictions, development control regulations, other policy regulations, etc. influencing the plot area, etc. Thorough diligence of all the parameters impacting the FSI / FAR is done to conclude the Potential FSI / FAR Entitlement & Utilisation on any plot.

Developing and validation of area correlation; FSI, BUA, construction & sales area:

The FSI Area, Construction area and the Saleable area are the basis of any real estate business plan, and hence the validation and correlation of these areas are critical to all the Investors and Lenders to access the viability of the proposed investment. Quantum has a team of in house architects and planners spread across geographies, who specialize and are updated in this scope of services.

Highlighting development and policy restrictions:

Greenfield and brownfield under construction projects, strictly depend on various development and policy restrictions. These restrictions are unique to the each project site. The proposed development potential needs to be assessed as per these restrictions. Quantum does a thorough assessment of these restrictions for the clients and advises them on the buildability massing of the various projects considered by them.

Review of Master Schedule and construction phasing:

Master Schedule and construction phasing plays a vital role for the execution of the business plan. Quantum does a critical analysis of all the activities in the Master Schedule and construction phasing to achieve the project milestones.

Review of project budget and costing:

A project budget submitted by the Developer requires a detailed analysis of each line item cost to confirm the values submitted. It is important to ensure that the budget is charging realistic rates considering the construction schedule and that the lender or investor are of the same financial understanding. Quantum also looks at any approved or potential changes to a budget created by scope changes, design modifications, value engineering, or force majeure.

RERA Compliance:

The Real Estate (Regulation & Development) Act, 2016 has established the Real Estate Regulatory Authority that now regulates and promotes the real estate sector. The main aim of the Act is to protect the interest of buyers and promote timely delivery of properties or projects. Quantum provides RERA Compliance services for Developers & Investors. Also Quantum provides various services to the RERA authorities.

Valuation:

Quantum provides a wide range of Real Estate Valuation and Consulting services to developers, investors, advisors and lenders seeking assistance with existing assets, potential acquisitions, new development projects and properties slated for disposition. We offer a comprehensive range of services to clients helping them make decisions in every sphere of real estate combined with unparalleled experience and market knowledge in the local real estate market.

Risk Assessment:

Risk is inherent in real estate due to long gestation period and uncertainty is inherent in anything marked with the passage of time. Quantum identifies the potential risks for the project at various stages and advises the investors with the risk mitigation strategies across major risk categories.