Destination revitalization strategy and master plan development
Destination revitalization strategy and master plan development
A leading developer acquired the rights to revitalize an island in a prime site in Malta. Although the developer has a 99-year lease, the government requires the site to be developed within the next eight years. The client intends an iconic project that will attract high-net-worth individuals and will overshadow anything developed in Malta to date; so far, five master plans have been proposed over the last decade, but none has appealed. Strategy& was engaged to articulate the project vision; define asset mix, development models, and phasing strategy; and select and oversee a leading master planning firm to produce a concept master plan and land use plan.
The team began by assessing the island’s potential and factoring in the government’s key limitations, then benchmarked relevant countries and developments and conducted a gap analysis for the Malta real estate market. The project’s vision — to redefine luxury in Malta — was presented to stakeholders. Following a four-step comprehensive approach, under two scenarios, the team defined the optimal asset mix, as well as optimal infrastructure and vertical development models, and the phasing strategy of components and plots. Employing a sensitivity analysis, financials were tested against the variation of five key levers. To select the engineering firm, the team evaluated master planners based on capabilities, relevant experience, and interviews.
The team’s final steps were to estimate the total cost of the project; determine the level of investment required from the developer and its partners; discover the regulatory enablers; and outline the expected returns. They also developed an investor value proposition and brief packages for potential investors.
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