A ten year annual discounted cash flow model for a purpose-built student accommodation development, running from site acquisition through construction, lease-up and stabilised operation to exit.

The model separates the development phase from the operating phase within one integrated cash flow. Land, professional fees, construction drawn against a build programme and holding costs sit on one side. Per bed per week student income, ancillary and non-residential income, operating expenses and management fees sit on the other, building to a stabilised net operating income and a capitalised terminal value.

Three debt facilities are modelled independently rather than blended: senior acquisition debt against land, mezzanine behind it, and construction debt drawn progressively through the build. Each carries its own limit, margin, fees, drawdown profile and repayment point, with interest capitalised during construction and the facilities refinanced on completion into a stabilised investment loan.

Returns are reported unlevered, levered and at the equity level, with IRR and equity multiple at each, plus profit on cost, yield on cost against exit cap rate, peak debt and peak equity, and lender coverage tests at stabilisation.

Assumptions sit in one input section and flow through the cash flow, the debt schedules and the returns summary. Cost and revenue inputs are entered per bed, per room or per square metre so the model can be re-run against a different scheme without rebuilding it.

Model Version: v0.2
Download Link: PBSA_Model