Beacon Partnership specialise in carrying out financial appraisals to determine the viability of a development scheme or programme. We have extensive experience of financial modelling and the factors that may impact on the outcome of an appraisal to enable the most accurate and robust appraisals to be produced.
Optimix is our in-house, Excel-based financial viability toolkit that can be used to assess the financial performance of development projects. This can be used in conjunction with the Optimix consolidation tool to enable you to review the viability of your projects at a programme level.
We are also able to build bespoke development appraisal and project management toolkits to take account of the specific needs of your organisation. Using Optimix or other appraisals tools, we can produce financial viability assessments for your development schemes or equip you with the tools and knowledge to do this yourself.
We can also review and audit appraisals produced by your organisation to check these have been completed accurately and provide advice and guidance based upon our findings. This can be combined with bespoke training sessions to help improve the long-term accuracy of your appraisals.
Case Study – Financial modelling for the GLA
Beacon were appointed by the GLA to calculate the affordable housing grant requirement to deliver 32,500 homes per year from 2022.
Beacon worked closely with the GLA, the G15 and other senior representatives in London to agree a typical set of financial assumptions that were representative across the sector. These assumptions were used to model the grant requirements for each Local Authority in London using local needs, costs and income data. This modelling was carried out using Optimix, Beacon Partnership’s financial viability toolkit.
The GLA were very pleased with the outcome of this work and the level of detail and consideration included within the analysis produced by Beacon. The project was very well received by various government departments and the development sector across the country.
The project resulted in the formal publication of the GLA’s funding requirements for 2022-2032 at a grant rate of 48%, totalling £4.9bn per year. The full report can be found here.
Following the success of the project, Beacon were commissioned by the National Housing Federation (NHF) to undertake a similar exercise for the rest of the country, which modelled housing need, costs and grants for all Local Authorities. This work found that £12.8bn per annum was required to build 145,000 homes each year and resulted in widespread press coverage, including articles in Inside Housing, the Guardian, Housing Today and 24 Housing.
Services Provided: Financial Modelling, Programme Appraisals