Abstract

The purpose of this study is to develop methods to improve the efficiency of development projects and attract investment in their implementation. The article analyzes the investment and construction activities of development companies in order to justify the expediency of using the portfolio approach and develop a system of criteria for their selection, study the existing sources of raising funds for investment and construction activities, and classify development companies depending on the way investment is attracted, assessment of the economic effect of investment and construction activities of development companies. The result of the study is the development of methodological approaches to increasing the efficiency of the portfolio of developer projects based on the proposed system of selection criteria for projects.

Highlights

  • IntroductionGrouping development companies in the manner of attracting investment in real estate development projects, we obtain a classification of developers

  • Based on the portfolio approach proposed by the author for the selection and implementation of development projects, a new kind of development companies can be proposed: complex developers characterized by the combination of all ways of attracting investments into the portfolio of projects, including both own projects and projects for external customers (Table 1)

  • Self-investment in own development projects Mixed investment in a development project, both own funds and customer funds Realization of the development project for external customers using their investments for a fee Formation of the project portfolio and its implementation on the basis of attracting investments from all available sources

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Summary

Introduction

Grouping development companies in the manner of attracting investment in real estate development projects, we obtain a classification of developers. Based on the portfolio approach proposed by the author for the selection and implementation of development projects, a new kind of development companies can be proposed: complex developers characterized by the combination of all ways of attracting investments into the portfolio of projects, including both own projects and projects for external customers (Table 1). Self-investment in own development projects Mixed investment in a development project, both own funds and customer funds Realization of the development project for external customers using their investments for a fee Formation of the project portfolio and its implementation on the basis of attracting investments from all available sources Investment and construction activities of development companies are heterogeneous, because they use different ways to attract investment, namely: independent investment in their own development projects; mixed investment in the development project, both own funds and customer funds; implementation of a development project for third-party customers using their investments for a fee.

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