In order to manage its stock viability options using net present value (NPV) calculations and neighbourhood insight scoring, Magenta Living is using In4Systems’ Options Appraisal software.
Previously, Magenta Living held internal reviews to discuss any issues with particular neighbourhoods but with only limited financial analysis carried out at the level of individual properties, it wanted to look into ways of making more accurate and validated investment decisions.
After a year of working with Options Appraisal, Magenta Living has benefited from being able to identify any poorly-performing properties at an individual level. With the ability to carry out varied financial analyses, the findings can be incorporated into its strategy, helping it to make more informed and evidence-based investment decisions, in line with HCA requirements. If a particular block is performing poorly, an appraisal can be done to analyse the effects of selling the properties, converting to market rent or even demolishing and rebuilding. Similarly, it can identify, for example, that well-performing areas may have higher management costs.
Zoe Carmichael, strategic asset manager, Magenta Living, said, “We can now look at our budget for the next 15 years with a clearer indication and plan of the investments that we would like to make. Where we have been allocated budgets, we can make more effective decisions on how to retain tenancies and future-proof properties, thereby improving performance and increasing efficiencies.
“The ability to compare different scenarios for the same group of properties is a vital part of our decision-making regarding our stock investments, and it has given us the tools to identify where our focus should be and to effectively plan for the future. And as an existing In4Systems customer, we’ve also been able to maximise the use of data already held in Promaster, therefore saving time and manual efforts.”