Every feasibility term, defined.

Gross realisation value is the total revenue you expect to receive from selling every dwelling in the project — before any costs, GST or selling fees are taken out.

Total development cost is the full cost of delivering the project — land, construction, professional fees, statutory contributions, finance and contingency, all in.

Profit on cost is the project's profit divided by total development cost. It's the headline ratio used by Australian residential developers to decide whether a deal is worth doing.

Development margin is the project's profit divided by net realisation. It tells you how much of every revenue dollar you keep after building and selling the project.

Equity IRR is the time-weighted internal rate of return on the equity invested in the project. It tells you the annualised return the equity earns from drawdown to distribution.

Loan to cost is the size of the senior construction loan divided by the total development cost of the project. It's the principal lever a lender uses to size debt.

Loan to value is the size of the senior construction loan divided by the project's gross realisation value. It's the second lever a lender uses to size debt.

Residual land value is the maximum amount you can pay for the site and still hit your target profit on cost. It's the answer to 'what is this site worth to me as a developer?'

Peak debt is the largest senior debt balance reached at any point during the project's life — usually just before the first settlements drop the balance back down.

Peak equity is the largest amount of developer equity committed to the project at any point in time — usually after acquisition and during construction, before debt drawdowns offset it.

The development management fee is the cost line that compensates the developer (or external development manager) for delivering the project. It sits inside TDC and reduces profit on cost.