Development criteria

Strict development criteria is applied to all new projects to ensure each development enhances bpha’s financial strength.

• 35 year NPV and no terminal value
• Conservative development assumptions applied
• No capital appreciation is assumed
• Asset value generated for charging of security must normally be greater than net development cost so that overall balance sheet capacity is enhanced
• IRR must achieve a hurdle rate set on the basis of: long-term cost of funds + margin + interest cover buffer + risk buffer.