EGI comparable, real estate with financial appraisal
$30-55 USD
Paiement à la livraison
The fund manager would like you to prepare an investment memorandum for the Investment Committee that provides
• estimations and justifications for your assessments of Net Initial Yield, exit yield, Market Rent and market rental growth used in the modelling of the asset’s financial cash flows and estimating Market Value.
• an estimate of the Market Value of the asset using a simple Net Initial Yield approach drawing upon appropriate comparables*. The assumed date of valuation should be 1 April 2021. The calculation should be displayed and it should be close to your estimate and justification of Net Initial Yield.
* The simple NIY method simply involves applying an appropriate yield to the rent passing and then adjusting for transaction costs. So Rent passing/estimated net initial yield = Valuation (gross of costs) and Market Value = Valuation (gross of costs)/1.068.
• A discounted cash flow model to estimate the IRR per annum, cash profit and equity multiple assuming that the asking price of £22,750,000 is paid.
• A discounted cash flow model to estimate the Investment Value of the asset assuming an acquisition date of 1 July 2021*. If the Investment Value is paid, it should produce an IRR of 6.00% per annum precisely. The cash profit and equity multiple generated if the Investment Value is paid should be reported.
(Discounted) cash flow appraisals should be incorporated within the report
Nº du projet : #29668270
