Examples Flashcards
How many years remaining on the Bristol Car Showroom Lease?
18 months
How much additional rent did the new letting at Unit 9 Wembley generate?
30%
What was the clients required return on Dundee?
MSCI+ 50bps
MSCI = 6.2%, Required return = 6.7%
What was the UXT at Dundee?
15 years
What Growth rate was applied at Dundee?
0%
What were the assumed purchase and exit yields at Dundee?
Purchase - 6.8 %
Sale 7.3%
+50bps
What was the hold period at Dundee?
5 year hold
What was the base case IRR for Dundee
6%
Sensitivity: Best = 6.2%, Worst = 5.7%
What advice did you provide the client relating to Dundee?
Asset has a higher risk as is retail and in Scotland (fund overweight to both)
Returns unlikely to meet required returns 6% vs 6.7%
Proceeds could be better reinvested with better risk/return trade off
What was the WAULT of the Manchester Office?
18 months
What costs did you apply for the refurb?
£126psf
What was your hold period for the Manchester Office Analysis?
10 years
What rents did you assume in Manchester Office?
£28.50-32.50
What IRR was the refurb at Manchester?
3.7%
What Purchase / Exit Assumptions did you make at Manchester?
Purchase - Valuation £9.64m
Sale - 5.5% NIY £15.2m
