Developer takes aim at property feasibility spreadsheets
A Melbourne development manager who has worked across apartments, hotels, shopping centres and infrastructure projects has launched a software platform aimed at changing how property developers prepare and manage project feasibilities.
Brenton van der Scheer, who has spent about 15 years working across construction and development, including with Fulton Hogan, Hutchinson Builders and V-Leader, developed Feaso Cloud after repeatedly encountering problems with spreadsheet-based feasibility models.
The browser-based platform brings a project’s development program, revenue, costs and debt into one model, with the ability to save scenarios, track changes and produce reports for investors and lenders.
Feasibility underpins decisions
For developers, feasibilities underpin decisions on land acquisitions, project funding, construction costs and expected returns.
But models can become complex as projects evolve, particularly when multiple versions are circulated between development managers, analysts and external stakeholders.
Mr van der Scheer said errors in feasibility models could remain undetected long after the original assumptions were entered.
“On a building site, if the drawings are wrong, someone finds out fast,” he added.
“With a feasibility, you can carry a broken formula or double-counted revenue for years and not find out until you’re deep into delivery,” according to the executive.
The civil engineer began his career with Fulton Hogan on the M80 freeway upgrade before moving into client-side project management with APP Corporation.
He subsequently spent six years as a lead contract administrator with Hutchinson Builders and Hickory before moving into development management in 2022.
His experience has covered apartments, purpose-built student accommodation, luxury hotels, shopping centres and aquatic centres, as well as smaller commercial projects.
“I’ve had a very non-traditional career path, and as a result I’ve worked across a variety of asset classes: apartments, PBSA, luxury hotels, shopping centres, aquatic centres and even a servo” he said.
Mr van der Scheer has also worked with private developer V-Leader, which is active across Melbourne’s CBD and fringe.
Bringing development assumptions into one model
Feaso Cloud is designed to consolidate a project’s financial and development assumptions rather than rely on multiple linked spreadsheets and separately saved versions.
Users can establish organisational calculation methods, with deviations recorded in feasibility summary reports intended for lenders and investors.
The system also allows users to produce branded reports or share read-only interactive versions with external parties.
Mr van der Scheer said traditional feasibility models could become difficult to manage as they grew in size and complexity (continues below).
“The incumbent software is basically a glorified spreadsheet, and like any spreadsheet, you’re at the mercy of the user,” he added.
“These models can grow so large and complicated, with links all over the place, that the learning curve is steep,” according to the executive.
“They often end up used only by a professional analyst”.
The platform’s version-control functionality records who has changed project assumptions, while saved scenarios allow development managers to compare different project outcomes without losing previous iterations.
Organisations can also establish preferred calculation methods, providing a consistent approach across projects and development teams.
Mr van der Scheer said his engineering background had influenced the emphasis on standardisation and repeatable processes.
“I like good systems, and I’m always asking myself how something can be standardised and scaled for quality across an organisation,” he said.
Beyond apartment development
A key consideration in developing the platform was making it applicable across different property sectors and development structures.
Mr van der Scheer said many existing solutions were focused on build-to-sell apartment projects, limiting their usefulness across other asset classes.
“A lot of other solutions are very focused on build-to-sell apartments,” according to the executive.
“I wanted something robust that I could use for any asset class,” he added.
Feaso Cloud covers Australia’s states and territories and is hosted on Australian servers, according to the company.
Launch this week, it is expected to be used by developers, financiers and investors.
“I want developers, lenders and investors to be able to trust the same feasibility,” he said.
“That’s the change this industry needs”.
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