Mathematical Finance

Alhabeeb, M. J.

doi:10.1002/9781118106907

Cited by 4 publications

(3 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To calculate the extraordinary contribution it is therefore necessary to put into practice a transformation value using the traditional procedure, by considering a profitability index directly related to the real estate initiative for which the extraordinary contribution is being evaluated [19][20][21][22][23].…”

Section: The Transformation Value To Evaluate the Extraordinary Contrmentioning

confidence: 99%

A Methodology for Determining the Profitability Index of Real Estate Initiatives Involving Public–Private Partnerships. A Case Study: The Integrated Intervention Programs in Rome

Battisti

Campo

2019

Sustainability

View full text Add to dashboard Cite

In the European Union, real estate initiatives involving public–private partnerships (PPPs) are characterized by the payment of a charge, which is generally used for public purposes (and works). In Italy, since the 1990s, PPPs have also been used to start negotiated initiatives giving the possibility of modifying town planning forecasts. Such initiatives are aimed at increasing the value of private properties and, through the charge, financing public works. This charge was regulated only in 2014 with the change of Article 16, paragraph 4, point d-ter of the Presidential Decree 380/2001 (Consolidated building law) and was named the “extraordinary urbanization contribution” (or simply the “extraordinary contribution”). The extraordinary contribution makes it possible to finance public works with private monetary resources. The amount of the extraordinary contribution is not less than 50% of the capital gain that is produced by real estate initiatives concerning modifications to town planning forecasts. A crucial issue of the this kind of PPPs has always been the appraisal of the capital gain of real estate initiatives due to changes in town planning forecasts. The factors to be considered while evaluating the extraordinary contribution, the appraisal tools and procedures to be used in assessing the capital gain are not indicated at regulatory level. However, an over 20 years’ practice has been consolidating the use of an analytical procedure for the appraisal of the transformation value to be used in evaluating the extraordinary contribution. In this procedure, the evaluation of the profitability index of real estate initiatives appears critical: in fact, the capital gain depends upon this element. At the same time, this topic is substantially neglected by the scientific debate. In this paper, a methodology has been defined, which is structured on the Build-Up Method and allows the profitability index (or rate of return) of a real estate initiative to be evaluated. Through a test, the developed methodology has been used in a case study: the appraisal of the extraordinary contribution in three integrated intervention programs in the city of Rome.

show abstract

Section: The Transformation Value To Evaluate the Extraordinary Contrmentioning

confidence: 99%

A Methodology for Determining the Profitability Index of Real Estate Initiatives Involving Public–Private Partnerships. A Case Study: The Integrated Intervention Programs in Rome

Battisti

Campo

2019

Sustainability

View full text Add to dashboard Cite

show abstract

“…A rigorous evaluation of an investment project is crucial for the evaluation of its convenience, see the books (Alhabeeh, 2012;Bierman and Smidt, 1993;Bodmer, 2015;Brealey and Myers, 1993;De Pablo, Ferruz and Santamaria, 1990;Lopez Dumrauf, 2003;Suarez Suarez, 1991). Among the different methods to evaluate investment project we choose the net present value ( NPV ) (Baker and Fox, 2003;Beaves, 1988;Bric and Weaver, 1997;Chung and Lin, 1998;Grinyer and Walker, 1990;Hadjdasinski (1993Hadjdasinski ( , 1995Hadjdasinski ( , 1996Hadjdasinski ( , 1997; Hartman and Schafrick, 2004;Hazen, 2003;Kim and Chung, 1990;Lan, Chung, Chu and Kuo, 2003;Lohmann, 1994;Lohmann and Baksh, 1993;Moon and Yun, 1993;Pasin and Leblanc, 1996;Pierru and Feuillet Midrier, 2002;Prakash, Dandapani and Karels, 1988;Reichelstein, 2000;Roumi and Schnabel, 1990;Shull, 1992;Stanford, 1989;and Zhang (2005)).…”

Section: Introductionmentioning

confidence: 99%

Properties of the Financial Break-Even Point in a Simple Investment Project As a Function of the Discount Rate

Tarzia

2016

JEFS

View full text Add to dashboard Cite

show abstract

“…• "costing" (full costing, direct costing, advanced direct costing): breaking down costs by type (direct and indirect) and variability (fixed and variable) [12][13][14][15][16]; • Discount Cash Flow Analysis (DCFA) to examine results and financial risks [17][18][19][20][21]; • integration of economic and productive data; Cost Volume Profit Analysis (CVPA) [22][23][24][25][26][27] which includes: (i) Break-Even Analysis (BEA), allowing the break-even conditions in a productive process to be estimated [28][29][30][31][32][33][34][35][36]; (ii) Contribution Margin Analysis (CMA) [37][38][39][40], which, in a productive process, allows the financial sums remaining after the fixed costs for variable and extra-profit-related costs are dealt with to be estimated; (iii) Operating Leverage Analysis (OLA), which allows the riskiness of a productive process to be assessed [41][42][43]. However, at a European level, there are no specific assessment procedures suitable for supporting the competent public bodies (hereafter, S PU ) and the private bodies/investors (hereafter, S PR ) in promoting real estate initiatives aimed at building SH in PPP.…”

Section: Introduction and Aims Of The Workmentioning

confidence: 99%

A Model to Assess the Feasibility of Public–Private Partnership for Social Housing

Guarini

Battisti

2017

Buildings

View full text Add to dashboard Cite

Abstract:The effects of the world economic and financial crisis, which began in 2007 and is still in progress, has made increasingly sharp the line of demarcation between those able to access home ownership on the free market, and those unable to do so. For the European Union's member states, Social Housing (SH) policies include all the initiatives aimed at providing housing support for all the weak segments of the population; these policies have declined differently by different Member States according to their specific needs. In Italy, the growing need for SH accommodation together with the shortage of public resources makes developing forms of Public-Private Partnership (PPP) necessary. Evaluation techniques like Break-Even Analysis and Contribution Margin Analysis are useful in planning interventions including SH initiatives in the context of real estate development or retraining initiatives in PPP (in negotiation processes or in project financing). These kinds of techniques especially allow evaluation of public and private convenience in PPP. In the present work, an assessment procedure has been structured: first the main parameters of a settlement of SH initiative in PPP are defined; subsequently, it is possible to assess the feasibility and the financial balance of the initiative itself. The procedure has been applied to a case study: the interrupted initiative of self-renovation in Via Grotta Perfetta 315 in Rome (Italy).

show abstract

Mathematical Finance

Cited by 4 publications

References 0 publications

A Methodology for Determining the Profitability Index of Real Estate Initiatives Involving Public–Private Partnerships. A Case Study: The Integrated Intervention Programs in Rome

A Methodology for Determining the Profitability Index of Real Estate Initiatives Involving Public–Private Partnerships. A Case Study: The Integrated Intervention Programs in Rome

Properties of the Financial Break-Even Point in a Simple Investment Project As a Function of the Discount Rate

A Model to Assess the Feasibility of Public–Private Partnership for Social Housing

Contact Info

Product

Resources

About