Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/38479 |
Resumo: | Project Valuation is a fundamental key for shareholders like investors and developers of a real estate project, due to the ability to identify its potential. Each real estate project has a significant relevance for the society because it provides infrastructures that improve the community' life. This valuation can be forecast by several factors: market analysis, feasibility analysis and financial valuation. The valuation models can be realized by abundant systems, like the reference of data of an appropriate asset’ benchmark, like what happens in Arbitrage Pricing Models, as else can be realized with base of ratios of the asset in analysis, through the Relative Valuation models. Besides, in this thesis I will focus on valuation models on Discounted Cash Flow format that compute the cash flow along the project’ life with a specific discount rate that differs in each model. The cash flow can be used to calculate some financial valuation indicators, like Net Present Value, based on which investors make decisions. Along this thesis, I will use with a base of financial data from a real case study, the Merrifield Center project, that today it’s still active, to determine the project’ value through the different Discounted Cash Flow valuation models. Afterwards, comparing the results of each model, I will explain what are the limitations and advantages of each model can bring to the project. After the identification of the best valuation model of each project, it can be concluded how the investment can be realized by shareholders, according to initial decisions and along the asset’ maturity. The investor’ decision can be positive or negative, due to the economic, political, and social conditions in the world we live in. |
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Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield CenterProject valuationReal estate projectsCash flowInvestmentDiscounted cash flowAvaliação de projetosProjetos do mercado imobiliárioInvestimentoDomínio/Área Científica::Ciências Sociais::Economia e GestãoProject Valuation is a fundamental key for shareholders like investors and developers of a real estate project, due to the ability to identify its potential. Each real estate project has a significant relevance for the society because it provides infrastructures that improve the community' life. This valuation can be forecast by several factors: market analysis, feasibility analysis and financial valuation. The valuation models can be realized by abundant systems, like the reference of data of an appropriate asset’ benchmark, like what happens in Arbitrage Pricing Models, as else can be realized with base of ratios of the asset in analysis, through the Relative Valuation models. Besides, in this thesis I will focus on valuation models on Discounted Cash Flow format that compute the cash flow along the project’ life with a specific discount rate that differs in each model. The cash flow can be used to calculate some financial valuation indicators, like Net Present Value, based on which investors make decisions. Along this thesis, I will use with a base of financial data from a real case study, the Merrifield Center project, that today it’s still active, to determine the project’ value through the different Discounted Cash Flow valuation models. Afterwards, comparing the results of each model, I will explain what are the limitations and advantages of each model can bring to the project. After the identification of the best valuation model of each project, it can be concluded how the investment can be realized by shareholders, according to initial decisions and along the asset’ maturity. The investor’ decision can be positive or negative, due to the economic, political, and social conditions in the world we live in.A avaliação de projetos é uma ferramenta essencial para os acionistas, tal como investidores e developers de um projeto do mercado imobiliário, dado a sua capacidade de identificar o potencial do mesmo. Cada projeto do mercado imobiliário tem uma significante relevância para a sociedade porque provém infraestruturas que melhoram a vida da comunidade. A avaliação de projetos pode ser calculada através de várias formas: análise de mercado, análise de fiabilidade e modelos de avaliação financeira. Os modelos de avaliação financeira podem ser realizados por abundantes sistemas, como referência de dados de um benchmark apropriado ao ativo em análise, como acontece nos modelos de Preço de Arbitragem, como também poderá ser realizado com base em rácios de indicadores financeiros do ativo, através dos modelos de avaliação relativa. No entanto, neste trabalho irei focar nos modelos de avaliação em formato Discounted Cash Flow que permite apurar o valor de mercado através da atualização dos fluxos de caixa ao longo da vida útil do projeto, tendo subjacente uma taxa de desconto específica que difere de modelo para modelo. Os fluxos de caixa podem ser considerados como uma base para cálculo de alguns indicadores de avaliação financeira, como o cálculo do Valor Acrescentado Líquido, com que os investidores usam para tomar as suas decisões. Ao longo deste trabalho, irei usar com base em dados financeiros de um estudo de caso real, o projeto Merrifield Center, que ainda hoje está ativo, determinar o valor do projeto pelos diferentes modelos de avaliação Discounted Cash Flow. De seguida, comparando os resultados de cada modelo, explicarei quais as limitações e vantagens que cada modelo poderá trazer ao projeto. Após a identificação do melhor modelo de cada projeto, podemos concluir como o investimento poderá ser realizado pelos acionistas de acordo com as decisões iniciais e realizadas ao longo da maturidade do ativo. A decisão do investidor pode ser positiva ou negativa, dado as condições económicas, políticas e sociais que vivemos.Pinto, João Filipe MonteiroVeritati - Repositório Institucional da Universidade Católica PortuguesaOliveira, Ana Filipa Vieira2022-08-02T14:40:22Z2022-07-072022-042022-07-07T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/38479TID:203042506enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:43:58Zoai:repositorio.ucp.pt:10400.14/38479Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:31:25.412133Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center |
title |
Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center |
spellingShingle |
Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center Oliveira, Ana Filipa Vieira Project valuation Real estate projects Cash flow Investment Discounted cash flow Avaliação de projetos Projetos do mercado imobiliário Investimento Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center |
title_full |
Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center |
title_fullStr |
Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center |
title_full_unstemmed |
Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center |
title_sort |
Project valuation and interaction between financial decisions and investment in real estate projects : the case of Merrifield Center |
author |
Oliveira, Ana Filipa Vieira |
author_facet |
Oliveira, Ana Filipa Vieira |
author_role |
author |
dc.contributor.none.fl_str_mv |
Pinto, João Filipe Monteiro Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Oliveira, Ana Filipa Vieira |
dc.subject.por.fl_str_mv |
Project valuation Real estate projects Cash flow Investment Discounted cash flow Avaliação de projetos Projetos do mercado imobiliário Investimento Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Project valuation Real estate projects Cash flow Investment Discounted cash flow Avaliação de projetos Projetos do mercado imobiliário Investimento Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
Project Valuation is a fundamental key for shareholders like investors and developers of a real estate project, due to the ability to identify its potential. Each real estate project has a significant relevance for the society because it provides infrastructures that improve the community' life. This valuation can be forecast by several factors: market analysis, feasibility analysis and financial valuation. The valuation models can be realized by abundant systems, like the reference of data of an appropriate asset’ benchmark, like what happens in Arbitrage Pricing Models, as else can be realized with base of ratios of the asset in analysis, through the Relative Valuation models. Besides, in this thesis I will focus on valuation models on Discounted Cash Flow format that compute the cash flow along the project’ life with a specific discount rate that differs in each model. The cash flow can be used to calculate some financial valuation indicators, like Net Present Value, based on which investors make decisions. Along this thesis, I will use with a base of financial data from a real case study, the Merrifield Center project, that today it’s still active, to determine the project’ value through the different Discounted Cash Flow valuation models. Afterwards, comparing the results of each model, I will explain what are the limitations and advantages of each model can bring to the project. After the identification of the best valuation model of each project, it can be concluded how the investment can be realized by shareholders, according to initial decisions and along the asset’ maturity. The investor’ decision can be positive or negative, due to the economic, political, and social conditions in the world we live in. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-08-02T14:40:22Z 2022-07-07 2022-04 2022-07-07T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/38479 TID:203042506 |
url |
http://hdl.handle.net/10400.14/38479 |
identifier_str_mv |
TID:203042506 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
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openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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