A shopping center acquisition involves purchasing a retail property that houses multiple tenant stores, ranging from small shops to anchor stores. Investors assess the property's location, tenant mix, lease agreements, foot traffic, and financial performance before purchase. The goal is to generate rental income from tenant leases and benefit from property value appreciation. Effective management, maintaining high occupancy, and adapting to retail trends are key to maximizing returns from a shopping center acquisition.
This Financial model presents an investment scenario of a Shopping Center, from the acquisition of the property to a potential future sale. The model contains the basic elements required to determine a range of possible IRR returns to an investor, given a high-level set of assumptions about the asset's operating forecasts, leverage, and exit price.
Model Structure
• General Setup & Acquisition Inputs
Operating and Acquisition-related inputs, including Project Timing, Acquisition, Renovation and Property Sale Assumptions, Center Metrics (Land Size, Stores & Offices Area, Parking Area, Outside Area, Visitors, Store Types, and Occupancy Rates), Revenue (Rental Revenue, Turnover Revenue, Ancillary Revenue), Operating Expenses, Capital Expenditures and Financing through Equity and 2 Loan types.
• Scenarios
Scenario Analysis using different approaches of calculating forecasted figures, usually calculating 3 scenarios; a base, an upside and a downside scenario.
• Debt Schedules
Amortization Schedules for the 2 types of loans provided in the model (Acquisition and Permanent Loan)
• Monthly Cash Flow
Monthly CF presents all the operating cash flows of the property over monthly periods.
It allows users to control the timing and how the cash flows over that time.
• Annual Cash Flow
A roll-up of the monthly cash flows into annual periods from property acquisition to disposition. It includes also calculation of Stabilized Yield on Equity and Cost, Debt Service Reserves and Property Sale Taxes
• Performance Reports
The model includes Break-even Analysis, KPIs and Perfomance dashboard reports assisting users to monitor hotel's operations and profitability.
• Project Returns
Report presenting project unlevered and levered returns (Pre-Tax & After-Tax IRR, MOIC, Cash Outflows, Inflows and Profits)
• Investors' Returns Waterfall
A 4-tier IRR hurdle waterfall model to distribute proceeds between investors. The model allows for up to four tiers (IRR hurdles) and assumes only one sponsor (i.e., GP) and one LP. The first tier distributes cash flow to the partners until the LP has achieved some defined preferred return and received a full return of capital. Assuming the preferred return hurdle is hit in tier one, cash flow is distributed in tiers two through four based on a defined promote structure and hurdle rates as outlined by the user.
• Acquisition Summary:
A high-level summary of the project key info, including:
• Key Project Metrics (Total Storage Units, Net Rentable Area Ratio, Acquisition and Exit Yield, Stabilzed Yield on Equity and Cost)
• Uses & Sources of Cash
• Operations Summary (Gross Revenue, Net Operating Income, Net Cash Flow)
• Property Sale and Project Level Return Metrics (Unlevered & Levered)
• Partnership Level Return Summary (LP's & GP's)
• Dashboard
Detailed instructions for the use of the model are included in the Excel file.
Help & Support
Committed to high quality and customer satisfaction, all our templates follow best-practice financial modeling principles and are thoughtfully and carefully designed, keeping the user's needs and comfort in mind.
No matter if you have no experience or are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you, however, experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Real Estate, Integrated Financial Model Excel: Shopping Center Acquisition – 10 Year Financial Model Excel (XLSX) Spreadsheet, Profit Vision
This document is available as part of the following discounted bundle(s):
Save %!
Real Estate Acquisition Financial Models
This bundle contains 6 total documents. See all the documents to the right.
Integrated Financial Model Company Financial Model Business Plan Financial Model Real Estate Financial Analysis Financial Statement Analysis Financial Ratio Analysis Bain PowerPoint McKinsey PowerPoint Bain Presentations Bain Frameworks Boston Consulting Group PowerPoint Consulting Frameworks Mercer PowerPoint PwC PowerPoint Bain Templates Accenture Templates McKinsey Templates Boston Consulting Group Templates Consulting Methodologies Accenture PowerPoint Booz Documents PwC Templates Capgemini PowerPoint Oliver Wyman Presentations Boston Consulting Group Frameworks E&Y PowerPoint IBM Presentations Oliver Wyman Templates Strategy Consulting Frameworks Bain Documents IBM Documents Capgemini Documents Roland Berger PowerPoint A.T. Kearney PowerPoint BCG Documents Accenture Frameworks BCG Frameworks BCG PowerPoint Oliver Wyman PowerPoint Consulting Documents BCG Presentations A.T. Kearney Documents Management Consulting Frameworks BCG Templates E&Y Templates Roland Berger Presentations Capgemini Templates Boston Consulting Group Documents LEK Frameworks Booz Allen Presentations E&Y Frameworks McKinsey Presentations Booz Allen Frameworks A.T. Kearney Frameworks IBM Templates Booz Allen PowerPoint Accenture Documents Accenture Presentations A.T. Kearney Templates McKinsey Frameworks Boston Consulting Group Presentations McKinsey Documents LEK PowerPoint Mercer Templates Roland Berger Frameworks Capgemini Frameworks Booz Presentations Roland Berger Templates PwC Frameworks Booz Allen Templates Strategy& Presentations Booz Templates Oliver Wyman Documents Mercer Presentations LEK Documents PwC Presentations LEK Templates Capgemini Presentations IBM PowerPoint E&Y Documents Oliver Wyman Frameworks Booz Allen Documents PwC Documents IBM Frameworks Mercer Frameworks Mercer Documents Strategy Development LEK Presentations Booz PowerPoint Strategy Documents Booz Frameworks A.T. Kearney Presentations Roland Berger Documents Business Frameworks E&Y Presentations Strategy& PowerPoint Deloitte PowerPoint Consulting Process A.T. Kearney Frameworks A.T. Kearney PowerPoint A.T. Kearney Templates A.T. Kearney Documents A.T. Kearney Presentations Chief Strategy Officer Gantt Chart Templates Project Plan Templates Sales Marketing Plan Development Sales Strategy Sales Management Marketing Marketing Strategy
![]() |
Download our FREE Strategy & Transformation Framework Templates
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more. |