The Financial Benefit Evaluation Of Urban Complex Project Of "Lin Yi Lu Shang Center"

With the development of the society, the separate form of residential and commercial real estate can’t meet people’s living requirement. So a new model of real estate, urban complex, arises at the historic moment. The development of urban complex is relatively mature in foreign countries, but it is gradually developed in the domestic in recent years. Urban complex building model belongs to the real estate project, it has the characteristic of long development cycle, costing a lot of money, fixed space. So the review and measure of its financial condition is related to the necessity and profitability of the project development.Firstly, this paper makes a simple overview of financial benefits from the aspect of theory, including the content, index system, analysis procedures and methods, etc. Secondly, this paper analyzes the Lin Yi Lu Shang center project, including the introduction of developers, project implementation, background, the meaning of the project, market situation, dynamic market analysis, SWOT analysis, marketing strategy and construction planning, etc. The third part is the center of this article, on the basis of predicting the cash flow of Lin Yin Lu Sang center project, this paper uses the static and the dynamic financial analysis to measure multiple financial indicators. And the paper uses the sensitivity analysis and break-even analysis to predict the project’s risk tolerance. Finally, according to the research conclusion, this paper provides policy suggestions for the investment project.By predicting the data and calculating the index, this paper concludes that after the completion of the project, it can realize RMB 6.8 billion of sales revenue and RMB 1.1 billion of the cumulative profits. And the static financial indicator and the dynamic financial indicator of the project are better, such as return on the investment and the tax investment ratio are over 20%, the static payback period and dynamic payback period are less than 3 years, the interest coverage ratio and the debt service coverage ratio are higher, financial internal rate of return is 74.44%, financial net present value is RMB 1.6 billion. This shows that the project has good profitability and solvency. Through the sensitivity analysis method, the project has higher investment profit margin and shorter payback period when the cost and the sales price rise or fall 10%; breakeven analysis concludes that the project has a lower break-even point which explains that the anti-risk ability of the project is strong and the influence of uncertainty factors is small.The innovation of this article is mainly manifested in the following two aspects: firstly, this paper takes advantage of the static and dynamic nine financial indicator to analysis the project’s profitability and solvency; Secondly, this paper explore the impact of uncertainties on the financial efficiency indicators from four angles by using sensitivity analysis method and profit balance analysis.