Project Investment Advisory

Strategic Project Investment & Feasibility Advisory

Capital-intensive projects in real estate, infrastructure, and resources require rigorous feasibility modeling, risk allocation, and structural design to attract institutional funding and secure commercial success. Developing a project from concept to operations is a complex process with multiple risk factors. At Executive Advisors, our Project Advisory desk provides comprehensive investment analysis and joint venture structuring from our Fortitude Valley office in Brisbane, helping sponsors turn project concepts into bankable assets.

Our team works alongside developers, corporate boards, and public stakeholders to model financial viability, stress-test cost assumptions, and design joint venture structures that align developer incentives with investor expectations. We coordinate the key work streams—including planning approvals, construction pricing, and debt sourcing—to ensure your project is built on solid financial and legal foundations.

"A project is not bankable because of its physical assets; it is bankable because of the certainty and durability of its cash flows and the mitigation of its construction and operating risks."

Project Feasibility & Financial Modeling

We build institutional-grade financial models that provide corporate boards and capital providers with a transparent, stress-tested view of project returns and risks.

Sensitivity Analysis & Hurdle Rates

We model project cash flows against key variables, including construction delays, material cost inflation, interest rate hikes, and revenue changes. We calculate the project's Net Present Value (NPV) and Internal Rate of Return (IRR) across multiple scenarios, ensuring returns satisfy investor hurdle rates under stress conditions.

Joint Venture (JV) & Syndicate Structuring

Large projects often require syndicates or joint ventures to share capital requirements and risks. We structure JV entities, draft shareholder agreements, and design capital distribution rules. This includes defining preferred equity distributions, waterfall payout structures, and performance-based developer fees to align incentives.

Offtake Agreement & Cash Flow Certainty

Lenders require high certainty of future revenue before committing project debt. We advise on and negotiate offtake agreements, power purchase agreements (PPAs), or long-term lease structures. These agreements lock in future revenue streams and satisfy bank underwriting criteria.

Project Feasibility Risk Matrix

We identify and mitigate the key risks that can compromise project viability during construction, settlement, or operational phases.

Risk Category Key Exposure Points Strategic Mitigation Strategy Lender Expectation
Construction Risk Builder insolvency, material cost inflation, schedule delays. Design Fixed-Price, Lump-Sum Turnkey (LSTK) contracts with performance bonds. Requires tier-1 or tier-2 builder guarantees and delay liquidated damages.
Operational Risk Below-target occupancy, high maintenance costs, management failures. Engage experienced operators under structured Operations & Maintenance (O&M) contracts. Requires experienced managers and structured reserve accounts.
Financial Risk Interest rate volatility, refinancing cliffs, currency shifts. Implement interest rate hedges (swaps) and match currency revenues with debt. Requires minimum debt service coverage ratio (DSCR) margins.
Sovereign & Planning Risk Zoning delays, environmental conditions, native title claims. Conduct thorough due diligence before committing capital; structure purchase options. Requires all major development approvals (DA) to be in place prior to financial close.

Frequently Asked Questions

What is the difference between NPV and IRR in project assessment? +
Net Present Value (NPV) calculates the absolute dollar value of a project's future cash flows discounted to the present day, using a specific discount rate (hurdle rate). Internal Rate of Return (IRR) is the discount rate that makes the NPV of all project cash flows equal to zero, representing the project's expected annualized yield. Sponsors look for projects where NPV is positive and IRR exceeds the capital hurdle rate.
Why do project lenders require Lump-Sum Turnkey (LSTK) construction contracts? +
LSTK contracts transfer the risk of cost overruns and delays from the project sponsor (and the lender) to the builder. The builder agrees to deliver the completed project for a fixed price by a specific date. Lenders prefer this structure because it caps the capital requirement, protecting the project from funding shortfalls during construction.
How does a waterfall payment structure work in a project JV? +
A waterfall structure defines the order in which project cash flows are distributed to investors and developers. Typically, cash flows are distributed first to repay senior debt, then to repay mezzanine debt, then to return equity capital to investors, followed by a preferred return on equity. Any remaining profits are then split between investors and the developer based on agreed performance-based percentages (promotes).