Category: Property/Real estate

What is the current value of the property? Calculate the bid value of the land using the residual approach and conduct some sensitivity analysis by Excel.

Choose topic

What is the current value of the property?
Calculate IRR.

Example 4 Development residual method
Estimate the value of the land by applying the residual method for the following projections for this development:
• Office building scenario of 5000 sq.m. let-able (IPMS 3 – Office), 5,500 GIA (IPMS 1 – Office)
• Offices will be rented monthly for £16 per sq.m.
• YP perp 8%
• The construction cost is estimated at £700 per sq.m.
• The project developer requires a profit of 20% of the GDC
• Total project period 12 months
• Fees 15% of the building cost (for example for planning, tax duty … etc.)
• Letting fee 10% of the EVR
• Sale fees 6% of the GDV
• Site finance (holding charge) 5% for 1 year
• Site acquisition fees 5%

Calculate the bid value of the land using the residual approach and conduct some sensitivity analysis by Excel.

What are Jamie’s duties now that he has received the request for consent to the proposed assignment? Based on the information that you are given, is Ainsley likely to obtain Jamie’s consent?

Property Management and Agency

Critically appraise the contribution which the property industry is making towards climate change and the benefits of introducing green lease clauses. Is the property industry doing enough to introduce green lease clauses in the UK or does the government need to legislate for change?
100%
100%

Increasingly, disputes over the level of service charge grew from occupiers, with requests for greater clarification of expenditure, demands for better value, and that the services supplied by the owner are indeed relevant to the particular development.” (CBRE).

How does the RICS Guidance Note “Service Charges in Commercial Property (1st Ed, 2018)” seek to address these problems?

Jamie is apprehensive of the prospect of Deliah taking over as they were previously colleagues but had a falling out and he would not like to work in close proximity to her. Furthermore, he knows that Deliah has previously been taken to court for breach of contract in relation to previous rental agreements. He suggests to Ainsley that he might be persuaded to grant his consent for the assignment if he were to pay an additional 3 months’ rent. Following the conversation Ainsley is unsure about her legal position and seeks your advice.
Explain what a fully qualified covenant against assignment is.
20%
What are Jamie’s duties now that he has received the request for consent
to the proposed assignment? Based on the information that you are given,
is Ainsley likely to obtain Jamie’s consent?

If the assignment does go ahead (with Jamie’s consent) and Deliah fails to keep up with the rent payments, explain, with reference to the relevant law, who Jamie will be able to pursue for the rent. Include advice on any
procedural steps that Jamie must take.
40%

How would your advice in (c) differ if the lease had been granted in 1995?

What is the Potential Gross Income (PGI) for the first year?What is the largest annual loan payment the lender will allow you to make based on the DSCR?

Real estate homework

What is the Potential Gross Income (PGI) for the first year?

What is the Effective Gross Income (EGI) for the first year?

If operating expenses are expected to be 40% of EGI, what is the Net Operating Income (NOI) generated by the property in the 1st year of ownership?

What is the largest annual loan payment the lender will allow you to make based on the DSCR?

If you get a loan that corresponds to the largest annual loan payment the lender will allow you to make based on the DSCR (computed in part 4), what will be your net income (Cash flow after debt service) in the first year?

What is the largest loan a lender is willing to provide you with based on question 4? (Use the terms and loan payment from question 4.)

The seller’s asking price for the property is $55,000,000 (assume this is the value). If the lender has a maximum 70% LTV requirement, what is the most the bank will lend you? (Only based on the LTV requirement.)

The loan must satisfy both the minimum DSCR of 1.2 and maximum LTV of 70%.

What is the biggest loan the borrower can get?

If you buy the property at the asking price of $55,000,000 using the biggest loan you can get (from question 8) and purchase costs are 5% of the purchase price, what will your down payment be?

What is the annual mortgage payment on the loan in question 8?

If you buy the property at the asking price of $55,000,000, what is your ‘going in’ Cap Rate?

If the annual IRR for this property is 8.5%, then based on the cap rate in question 11, what does this imply is expected NOI growth rate for this property? (think about the formula for a growing perpetuity)

You do research and find that similar properties are selling at an 8% cap rate. Using an 8% cap rate, what price would you offer for this property ?

Identify and analyse the specific requirements for successful development of the residential property.Explain and evaluate the ideologies and application of building regulations framework in England and Wales.

Residential survey and development

Demonstrate detailed knowledge of well-established theories and practice of residential real estate and show awareness of different ideas and approaches.

Identify and analyse the specific requirements for successful development of the residential property.

Explain and evaluate the ideologies and application of building regulations framework in England and Wales.

Explain and justify the conversion in terms of suitability for the use for which it has been designed:

Provide a description of the necessary alterations to the existing building.

Explain how the extension connects with the existing building fabric.

Explain how improvements have been made to fabric of the existing building.

Explain how the extension and modifications to the existing building comply with Building Regulation Part L and achieves an EPC rating of C or above.

An opinion on the acceptability of the scheme based upon the information given to you. Are there any suggestions which may assist the scheme?

Pre application advice for clients

This piece of work is worth 50% of the overall module mark. The word count is 2,500 words (+/- 10%).

Whilst it is up to you to decide how the letter is formatted, some suggested headings may consist of the following:

Site Description;
Proposal;
The application process;
Relevant Policies;
Material Considerations

An opinion on the acceptability of the scheme based upon the information given to you. Are there any suggestions which may assist the scheme?

How accessible is the location to prospective clients? location and proximity to other uses.

Auto Parts Project

You are a real estate developer and you have found the site attached for your client. Your client has an specific use of the site, and that’s to develop an Auto Parts Shop.

How accessible is the location to prospective clients? location and proximity to other uses.

You want to make sure that you explain to the client why is that site a great investment to develop his Auto Parts Shop.

Present relevant information such as, but not limited to, demographics, economic data, and other relevant variables you deem feasible for and justifying your process.

It MUST include cover/title, executive summary, table of content (with page numbers), introduction, background of the story, a short section of data used, section of major findings, and a conclusion.

Only use the attached documents

Discuss the benefits of VDC Virtual design and construction in the construction.

Write a 2-paragraph (minimum) original post (cite sources) responding to the following topic.

Discuss the benefits of VDC Virtual design and construction in the construction.

End your post with a question or statement that would assist your colleagues with providing a response post to your original post.

Provide support/justification for any opinions made and argue your position

note, there is a difference between VDC and BIM “Building information modeling “

What is the purpose and function of an owners corporation?Would Sandra be required to make decisions about this property’s owners corporation matters?

Property and Real Estate Law and Practice

What is the purpose and function of an owners corporation?
Would Sandra be required to make decisions about this property’s owners corporation matters?

In what ways, could Sandra participate in the owners corporation?

An initial search by Sandra’s conveyancer noted a recent case relating to the property.

Your boss Jane has provided you with the case citation – Owners Corporation
PS341151A v Gilmore (Owners Corporations) [2021] VCAT 394 (1 April 2021).

Jane has noted that there are two (2) separate issues outlined in the case and therefore she only requires you to deal with one of the issues. You can choose which issue, rule or renovation.

Jane will have another member of staff review the other issue.

Sandra would like you to provide an outline of the case including:

Write an opinion/theoretical report that analyses how implementation of flexible working arrangements and the corresponding changes to human resource practices highlights the increasing importance of establishing the right amount and type of organisational structure, space and alignment with an organisations corporate real estate strategy.

Management of Real Estate – Opinion/theoretical analysis of Corporate Real Estate Workplace Strategy

Write an opinion/theoretical report that analyses how implementation of flexible working arrangements and the corresponding changes to human resource practices highlights the increasing importance of establishing the right amount and type of organisational structure, space and alignment with an organisations corporate real estate strategy.