What it is
The residual land value is the price at which the project hits your target profit on cost or IRR. Anything below the residual is value accretive, anything above is dilutive.
How Popurise calculates it
Set a target profit on cost or target IRR. Popurise solves backwards through the cashflow to find the land price that exactly hits that target.
How to use it
Take the residual into acquisition discussions as your walk-away number. Sensitise on construction cost and revenue to set a band rather than a single point.