Development Appraisal
Pencil
Any deal appraised in minutes, not days.
Development Feasibility
Westlands Residential Scheme
GDV
KSh3.9B
Cost
KSh3.2B
Profit
KSh521M
IRR
31.2%
Cash Flow and Debt
Monthly capital calls, debt peak, and collections
Deal Score
Solid Deal
70 / 100 score
Hurdles
Capital Stack
Balanced
Customer + Equity + Debt
IRR
Levered returns
RLV
Residual land value
7
Covenant monitor
Report export
Overview
Pencil is a development appraisal and feasibility engine built for executive decision-making. Spreadsheets are slow and error-prone: one broken formula can distort an entire appraisal, and every deal waits days while an analyst builds it, a manager reviews it, and only then does it reach the executive who must decide. Pencil collapses that cycle to minutes. Enter your assumptions at whatever level of detail you have — from a high-level sale price and cost per square metre to granular pricing per floor or per unit and cost per BOQ line — and the full appraisal builds instantly. Detailed sales schedules track absorption across both mortgage and cash sales, and at the click of a button you get an investor memo, IFRS-ready accounts, and full sensitivity and scenario analysis. Every assumption is transparent and every number is defensible, so decision-makers act with confidence.
Capabilities
- Any deal appraised in minutes, not days
- Inputs at any level: sale and cost per square metre, per floor, per unit, or per BOQ line
- Detailed sales schedules tracking absorption across mortgage and cash sales
- One-click investor memo, IFRS-ready accounts, and cash-flow reporting
- Sensitivity and scenario analysis on demand
- GDV, cost, profit, IRR, and debt modelling
- Transparent assumptions and defensible, board-ready outputs
Core Capabilities
Everything the platform brings together
Land to Returns Analysis
Model acquisition, statutory costs, construction budgets, revenue, finance costs, profit, IRR, and equity multiple.
Capital Structure Modelling
Structure debt, equity, customer collections, JV participation, drawdowns, and capital calls.
Cash Flow and Draw Schedules
Track monthly project cash flow, debt utilisation, cumulative spend, and self-funding milestones.
Deal Scoring
Use covenant hurdles to evaluate deal quality and flag where restructuring may improve viability.
What-If Sensitivity
Stress-test sales pricing, construction costs, velocity, finance assumptions, and capital strategy.
Professional Reports
Export polished feasibility outputs for lenders, investors, boards, and internal approvals.
Pencil In Action
The dashboard experience
These are coded interface replicas of the Pencil dashboards, showing how the app presents project viability, cash flow, debt, capital structure, and draw schedules.
01
Dashboard Summary
Revenue, costs, net profit, IRR, equity multiple, auto-balanced capital stack, and live stress-test controls on one screen.
ABCD
Westlands, Nairobi - 280 units - KSh3.9B revenue
Auto-Balanced (Equity First) Customer KSh2.0B (58.7%) + Equity KSh500.0M (14.8%) -> Debt KSh898.6M (26.6% LTC)
Project generates KSh521M profit at 31.2% IRR on KSh500M peak equity. Marginal - requires restructuring.
Quick Stress Test
Marginal - requires restructuring
5/7 hurdles - Score 70/100
Revenue
KSh3.9B
Total Cost
KSh3.2B
Net Profit
KSh521.4M
Margin
13%
Levered IRR
31.2%
Equity Multiple
2.04x
Revenue to Profit Bridge
02
Cash Flow and Debt Module
Monthly cash flow, equity draw, debt peak, collections, and self-funding milestones across the project timeline.
ABCD
Westlands, Nairobi - 280 units - KSh3.9B revenue
5/7 hurdles passing - marginal - requires restructuring
Funding Status
Monthly Cash Flow and Debt
Monthly cash flow and capital structure
03
Capital Structure and Deal Score
Peak equity, peak debt, execution risk, covenant monitor, scored deal rating, and restructuring guidance.
ABCD
Westlands, Nairobi - 280 units - KSh3.9B revenue
Capital Structure
Peak Equity
KSh500.0M
15% of total uses
Peak Debt
KSh956.3M
27% eff. LTC
Interest Cost
KSh139.2M
15% of peak bal
Loan Fees
KSh19.1M
2% of peak bal
Execution Risk
Sales Velocity
10/mo
255 saleable units
Pre-Sales
50 units
20% of inventory
Sellout Timeline
21mo
Jan 28 - 43mo total
Capital Turnover
2.6x/yr
KSh3.9B rev / KSh500M eq
Covenant Monitor
Deal Score
70
Solid Deal
Commercially viable. Minor optimisation may improve terms.
04
Construction Draw Schedule
S-curve cumulative cost deployment with project milestones and monthly draw categories.
ABCD
Westlands, Nairobi - 280 units - KSh3.9B revenue
Capital Call Required - 12 of 36 months
After applying collections and rolling surplus cash forward, the project requires external capital totalling KSh1.4B. Peak call is KSh206M in Jun 27.
First Equity Call
Jan 26
M1 - KSh84M
First Debt Draw
Jun 27
M17 - KSh206M
Peak Capital Call
Jun 27
M17 - KSh206M
Self-Funding From
Mar 28
M26 - surplus reached
Construction Draw Schedule
S-curve of cumulative cost deployment showing planned spend against time.
25%
Month 15 - Mar 27
KSh803M spent
50%
Month 18 - Jun 27
KSh1.7B spent
75%
Month 21 - Sep 27
KSh2.4B spent
S-Curve: Cumulative Spend
What's included
Why choose Pencil
Structured like an institutional development appraisal
Live calculations across the project model
Scenario testing for stronger investment decisions
Board-ready outputs for approvals and financing discussions