How it works
CastleGate isn't a black box. A core engine models the deal month-by-month, and seven engines cover every dimension — valuation, leasing, debt, tax, fund, statements and development. Each figure traces to a standard formula, and the whole model is validated to institutional benchmarks, most of it to the dollar.
The core engine
The month-by-month spine
Income → cashflow → debt service → tax → distributions → sale → the levered equity return. Every other engine feeds it or reads from it. This is the part validated hardest — the numbers a decision rests on.
equity IRR = the rate r where Σ CFₜ / (1 + r)^(days/365) = 0
Valuation
Adopted value across five methods — passing cap, market cap, DCF, direct comparison — with the full capital-value adjustment stack, reconciled into one figure.
value = netIncome / capRate + Σ adjustments
Leasing
Turns the rent roll into a lease profile: reversions, incentives, letting-up and market reviews — computed automatically.
PV reversion = Σ (passing − market)/12 × (1+g)^(m/12) / (1+r)^m
Debt & Finance
Facilities, margins, fees, ICR/LVR covenants (net-debt basis) and refinancing — with breach monitoring across the hold.
ICR = NOI / interest ; LVR = netDebt / value
Tax & Depreciation
Income tax with loss carry-forward, and capital gains tax on disposal against the reduced cost base.
cgt = (netProceeds − costBase) × cgtRate
Fund & Unit-level
Rolls the deal up to the fund: NAV and NTA per unit, a roll-forward from opening equity to exit, and per-unit returns.
NAV = propertyValue + cash − debt
Financial Statements
Accrual income statement, per-year balance sheet, net assets and a deferred-tax line — straight from the validated engine.
netAssets = propertyValue + cash − debt
Development
For development deals: debt-funded construction, feasibility and as-is value, with a two-lens view of developer margin vs investor return.
margin = GDV(net) − (land + build + fees + finance)
A guided pipeline that mirrors how an analyst evaluates a deal — jump between stages freely.
Setup
Property, deal type and key assumptions.
Income & Leasing
Rent roll → lease profile, reversions, incentives.
Costs & Debt
Facilities, capex, fees and covenants.
Tax
Income tax and CGT.
Valuation
Five methods, reconciled to an adopted value.
Returns
IRR, multiple, attribution.
Decision
One export-ready investment summary.
Across a representative set of models, the core returns match their benchmark to a fraction of a percent, with capitalised valuation and disposal to the dollar. Where a small difference remains, we document it rather than hide it. (Figures below are illustrative.)
| Model | Sector | Equity IRR vs benchmark | Valuation |
|---|---|---|---|
| Riverside Tower | Office | ±0.06pp | to the dollar |
| Westlink Industrial | Industrial | ±0.04pp | to the dollar |
| Central Exchange | Office | ±0.01pp | to the dollar |
| Harbour Quarter | Mixed Use | ±0.02pp | to the dollar |
| Parkside Retail | Retail | ±0.09pp | to the dollar |
| Meridian Health | Healthcare | ±0.02pp | to the dollar |