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Consultancy & Valuations continue to ensure that technological advances are incorporated, particularly with respect to current adopted software models utilised by our clients. |
Colliers International provide continuous training for all personnel on the adopted software and operating platforms with the following a brief overview of internal and external technology.
Discounted Cash Flow Model
Consultancy and Valuations has developed and refined our own proprietary discounted cash flow model (monthly rests) based on Excel which additionally incorporates traditional initial and reversionary yield calculations. This model has been well accepted by our clients and we note that all major sales analysis are fully analysed on this model in the same form as if completing a valuation on the property. In addition to the standard 10 year cash flow model, we have further developed specific retail, industrial, leasehold and 15 year cash flow models. We further note that the correlation between the discounted cash flow results of this model and DYNA are very similar.
Financial and Decision Analysis
John Del Dosso has strong spreadsheet modeling skills that facilitate real world replication of business and financial decisions. Typically evaluation exercises address:
- Lease Buy decisions for plant and machinery; land and buildings.
- Space analysis - co-location and re-location decisions for business units.
- Financial review of existing and proposed property developments, ranging from group housing to multi lot residential and industrial subdivision.
- Joint Venture evaluation; cost revenue structure, cashflow analysis, net profit prediction and return analysis.
- Develop and review lease structures to determine financial impact; cashflow and capital.
- Analysis and review of mutually exclusive capital projects; scenario analysis.
- Quantitative risk analysis, which enables the estimation of probability for success/failure against client based performance hurdles.
@Risk Simulation Software
Colliers International has implemented the use of @Risk simulation software in its financial and decision analysis tasks. The software allows the modeling of uncertainty implicit in all inputs to decision analysis. It can incorporate historical and current data with qualitative judgment to establish probability distributions for inputs, which in simple terms, recognizes and weights the worse case, expected and best-case value.
The software includes the capability to rank inputs by influence on output being measured. The methodology further enables the identification of correlated inputs, with their interdependence then recognised through correlation matrixs to ensure stability and reliability of output results.
The simulation process is iterative and reruns the model automatically or for preset iterations, randomly selecting values from the input range identified for each input variable. The output result for each iteration is stored and analysed to present a summary of statistics, cumulative probability in 5% tile increments and facilitates graphical representation of the final output distribution.
The results table and graphically present the risk profile of the output measured and allow the benchmarking of desired outcomes, whilst providing relative probabilities of success/failure.
CORE
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CORE, Colliers On-line Real Estate system, is an exceptional database that provides more in depth, more accurate and more flexible pools of property related information. |
Its integration with client and company information constructs a comprehensive profile of the market.
This single reservoir brings together the most up-to-date information in the following key areas:
- Prospects, landlords, tenants and clients – detailed information and associated web links;
- Property information - building details, stacking plans, building photos, floor plans, associated web links, plus calculated availability and vacancy information;
- Listings – detailed availability information and historical availability information;
- Transactions – detailed comparable information;
- Tracking of properties from an investment marketing and research perspective.
Fuelled by the understanding that different regions and offices have unique data requirements, distinct reporting needs, and that every Collier’s client is unique, CORE was developed with significant customisation capabilities. CORE can quickly attain, analyse and interpret information. Its compatibility with Excel and Word means creating reports is easy, flexible and compatible. As well, CORE has the tools needed to produce complex or customized reports as required.
It is a product that has evolved and will continue to evolve. It is an industry leader in functionality, and the ultimate tool for providing our clients with the best information possible.
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