CF statement for shophouse investment
Hi could anyone help me model this question through excel so that i am able to double check it. Thank you!
Instructions 1) Based on the below assumptions, please draft a simple CF model for an investment period of 4 years on a Quarterly basis. Any assumptions you believe are missing, please use your own assumptions and state them accordingly.
Property Location: Prime Area Asset Class: Shophouse Deal structure: Share Deal Property size: 15,000 Sqft Acquisition price: 38 Million Acquisition cost : 1.5% of acquisition price CAPEX in month #6: 2 Million Current Gross Rental Yield: 3.00% Current Vacancy: 20% Bank Loan on Acquisition Price: 50% ( 5 year bullet loan) Capex Loan: 50% of Capex Interest rate: 1.3% over LIBOR
The property will be vacant from month #6 onwards during renovation for a period of 6 months. After that, the property will be full leased within a 1 year period. The market rent after renovation is $7.50/sqft/month.
Annual rental increase: 4% Exit Yield on gross rental: 3.00% Exit cost on disposal value: 1.50%
2) Calculate the IRR of this investment plus the Equity Multiple.
3)Please include your assumptions plus your conclusion if you should acquire the property if the expected IRR is 15%
Hey Shwnfng1, sorry about the delay, but are any of these useful:
Fingers crossed that one of those helps you.
Repudiandae repellat omnis perferendis autem cumque ex. Distinctio odio iure corrupti aut aliquid vero. Ratione deserunt officia voluptatem voluptatibus. Rerum quia aspernatur necessitatibus.
Sunt officiis nisi soluta unde. Non consequuntur vel est accusantium sit pariatur. Porro officia vitae qui quos recusandae in. Cumque saepe aut quidem fugiat accusamus. Sit fugiat alias laudantium quisquam architecto repudiandae.
Earum asperiores culpa consequatur qui veniam tenetur voluptates. Ut delectus quae exercitationem optio hic dicta labore.
Aut mollitia a animi amet aliquam non distinctio. Quibusdam sunt quaerat provident cum. Dolorem sit totam ea labore enim dolor alias magnam. Aut magni repellat nesciunt quo ipsa sit. Error architecto sed ullam consequatur nobis nihil. In vel molestiae eius soluta amet aliquam blanditiis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...