Examples

Question 1

Area St James’s L3 Prime Yields

Answer 1

20,000 sq ft

Question 2

Strengths of St James’s L3 Prime Yields example

Answer 2

1) macro location

2) newly refurbished

Question 3

Weaknesses of L3 St James’s prime yields

Answer 3

1) Tenure (leasehold)

2) Income (vacancy)

3) Micro location

Question 4

What was the capital value rent and yield for L3 St James’s (Prime Yields)

Answer 4

Cap Val: £2,000 psf

Rent: £120 psf

Yield: 5.00%

Question 5

What was the recommendation for L3 St James’s (Prime Yields)

Answer 5

Below prime yields because of:

Vacancy
Tenure
Micro location

Question 6

Area of L3 Spitalfields

Answer 6

3,000 sq ft

Question 7

Strength of L3 Spitalfields

Answer 7

Location (high footfall)

Income length

Quality - good condition

Question 8

Weaknesses of L3 Spitalfields

Answer 8

Over-rented (£165 vs £150 ITZA)

Moderately risky covenant

Question 9

Recommendation for L3 Spitalfields?

Answer 9

Income was over-rented & covenant was risky.

Income capitalised at higher cap rate than it would have been if it was not over rented AND covenant better

Question 10

What was the capital value rents and yield for L3 Spitalfields?

Answer 10

Cap val: £1,000
Rent: £150 ITZA
Yield: 7.00%

Question 11

What was the area of L3 Mayfair?

Answer 11

5,000 sq ft

Question 12

What were the strengths of L3 Mayfair?

Answer 12

Location

Lot size

Tenure (freehold)

Question 13

What was the weakness of L3 Mayfair?

Answer 13

Short income (14 months left on lease)

Question 14

What was the capital value rent and yield for L3 Mayfair?

Answer 14

£3,000

£500 ITZA

4.50%

Question 15

What was the recommendation for L3 Mayfair?

Answer 15

Short income mitigated by location and tenure

Property marketable and suitable for loan security

Question 16

Area of L3 Retail St James’s

Answer 16

4,000 sq ft

Question 17

What were the strengths of L3 St James’s Retail

Answer 17

Tenure (freehold)
Small lot size
Neely agreed lease

Question 18

What were the weaknesses of L3 St James’s retail

Answer 18

Covenant strength (42/100)

Question 19

What was the capital value rent and yield for L3 Retail St James’s?

Answer 19

£2,000
£500 ITZA
5.25%

Question 20

What was the recommendation for L3 St James’s?

Answer 20

Covenant strength mitigated by location and tenure

Suitable for loan security

Question 21

Area of St James’s (refurb)?

Answer 21

20,000

Question 22

Strengths of St James’s (refurb)

Answer 22

Prime location; Freehold

Question 23

Weaknesses of St James’s (refurb)?

Answer 23

Dated and required capex

Question 24

What was the cap val, rent and yield for St James’s (refurb)?

Answer 24

£3,000

£120 psf

4%

Question 25

What was the area of Fitzrovia?

Answer 25

8000

Question 26

What were the strengths of Fitzrovia?

Answer 26

Recent refurbishment Fully let Small lot size

Question 27

What was the weakness of Fitzrovia?

Answer 27

It is not the prime office market

Question 28

What did the most relevant comparable have for Fitzrovia?

Answer 28

Less recently refurbished Larger lot size Shorter WAULT

Question 29

For Fitzrovia, why was the comp still good?

Answer 29

It was nearby on same street and recent sale

Question 30

Cap val, rent and yield for Fitzrovia

Answer 30

£1000 £60 6%

Question 31

Area of retail Soho

Answer 31

3000

Question 32

SWOT of Retail Soho

Answer 32

S - location W - sold off resi above O - rental growth forecast T - Geopolitical instability (supply chains and retail)

Question 33

What yield used for retail Soho?

Answer 33

NIY because rack-rented on new lease

Question 34

Cap val, rent and yield for Retail Soho

Answer 34

£1000 £200 ITZA 5.5%

Question 35

Area of Camden

Answer 35

30,000

Question 36

Strength and weakness of Camden

Answer 36

Recently refurbished A little of pitch within KX (larger lot size)

Question 37

Best comp for Camden?

Answer 37

Close and recent but… Better situated & smaller

Question 38

How much of a cap val adjustment from comp for Camden

Answer 38

7.50%

Question 39

Cap Val, rent and yield for Camden?

Answer 39

£1000 £60 6%