In my role, I prepared all of the investment appraisals to assess the profitability and IRR on potential site purchases. This included sensitivity analysis to show the returns at different yields, based upon the performance of the buildings lettings and rental prices agreed alongside market conditions at the time of sale. I obtained the site price from the acquisition partner, suggested a cost of the build per room based upon XX's other builds, alongside its potential sales valuation/yield, and I would assess other costs such as the professional fees of architects etc based on other sites we were building on. This information would enable me to enter the amount required from investors and a senior lender. Ultimately the team wanted to achieve a target IRR, and I would assess whether this was achievable. I reported back to the site and investment partner and then employed sensitivity analysis techniques in response to their questions. For example, if the site price were £100k lower, and if the yield was 0.25% lower, I would predict what the effect on the IRR would be and make recommends based on the current yields being achieved on similar buildings at the time. We would often be relying on market/economic factors largely out of our control, and thus it was safer to control areas within our power, such as the sale price, or negotiate deals with builders through joint ventures with other property developers in order to achieve our objective.

When arranging loan finance from a senior lender, one of the requirements was a Business Plan. I prepared a cash flow for the business, showing how the target IRR could be achieved, allowing for the loan coming in and repayments being made once the buildings were operational. I spoke to each partner to discuss expected costs in their business area and built in a contingency to allow some leeway. The finance director and CEO, and I went through the business plan, and held a board meeting to review all other areas, such as marketing. The IRR and sales yields shown were conservative, allowing for some adverse environmental factors. The lender was happy with the Business Plan, and the loan was subsequently agreed.

I confirm that throughout the time Sam and I worked together he assisted in developing business strategy and the formulation of business plans for the company. All the examples cited are entirely accurate.