Walliance has partnered with Ernst&Young - one of the largest global consulting firms - under which, starting from the assumptions that the Sponsor will provide, EY will carry out an independent assessment on the data of the real estate project. This evaluation will be made available to investors for consultation, through the publication of the Selling Information Memorandum, a document that is published within each project sheet in the "Documents" area.
The rating: the six-page document contains a description of the initiative and the market analysis with evidence of the comparables and, on the last page, a judgment on the transaction (the Rating) is indicated, ranging from a minimum of 1 to a maximum of 5. The evaluation is carried out by comparing the transaction with the performance of the real estate market in relation to both the development area and the intrinsic characteristics of the project.
Here are the parameters used for the evaluation:
- Population: indicates how much the population of the area, as well as the tourist presences, fall within the potential catchment area of the buildings that will be built.
- Linearity: indicates the level of complexity of the project.
- Congruity soft cost: refers to the design and management costs and indicates how much these are consistent with those related to similar projects.
- Congruity hard cost: refers to the construction costs and indicates how much these are consistent with those related to similar projects.
- Absorption time: indicates how much the duration of the real estate transaction is consistent with the duration of similar projects.
- Revenue congruity: indicates how much the expected revenues from the real estate transaction are consistent with those related to similar projects.
- Surface consistency: indicates how much the types of apartments included in the project are consistent with the demand of the real estate market in the development area.
- Intended use: indicates how consistent the project is with the demand of the real estate market related to the intended use of properties in the development area.
- Market demand: indicates how much the demand of the real estate market can show interest in the operation.
- Market trend: represents the assessment of what are the trends in the real estate market in the development area and how the transaction fits into this trend.
- Economic Conditions: provides a general assessment of the expected costs and revenues of the real estate transaction.