Our client is a US-based privately funded financing lender specializing in volumetric modular construction projects.
We, JMI AI, act as a part of their team in most of their day-to-day activities involving analyzing projects, manufacture profiling and research etc., as remote analysts to their CEO and CFO.
JMI was asked to create a detailed model in order to confirm the financial efficacy of the project.
Solution
Developed a comprehensive Cash Flow Schedule that includes rental income, operating expenses, interest expenses, loan origination fee, exit fee etc.
Established a detailed structure outlining the project costs, including hard and soft costs, and how they will be allocated over the period.
Created a financing scenario that incorporates various sources of capital, including equity, senior loans, and mezzanine loans.
Included a provision for potential loan refinancing in the plan.
Developed a schedule for calculating returns on equity using Internal Rate of Return (IRR) and Multiple on Invested Capital (MOIC) along with sensitivity analysis.
Outcome
Created a highly detailed and complex model for the client to understand the returns associated with financing the project.
Showcased value creation with a Net IRR of ~16.88% and MOIC of ~1.13x.
