Funny case study / modeling test

Hi,

I've been invited to take a case study. It's going to be 3 hours on-site. No presentation. I'm not familiar with the asset class so please excuse dumb questions mr & mrs logistics

It has been described over the phone as follows:

"You'll build a cashflow for

1 industrial asset - development

1 industrial asset - acquisition income producing core + or value-add strategy

2 similar cash flow but different type of debt (1 dev finance no refi, 1 senior) then group & exit

If you have time, probably a promote"

I'm fine building these 2 separately, I'm just concerned by the "grouping / portfolio" approach

1. Does that make sense to group the 2 CFs in a 3rd tab from a returns perspective? As 1 is a dev and the other one an income generating asset (would the IRR get screwed due to timings)?

2. When it comes to acquiring a warehouse and run a refurbishment plan, do you assume the tenant(s) stay(s)? If no information provided, should we assume that we can't do anything prior to any break clause if provided? 

3. I've never done a case study on site, always remotely. Is it acceptable to google something if we're stuck on a formula or looking to a market data? I've always read that it was ok to use any resources available when taking a remote test 

4. Any industrial case study to share? (happy to check other asset-classes if there is this 2-asset approach)

5. I've seen some reports showing industrial NIY / Cap rate around 4% / 6% in Europe but saw several transaction comps at 2.8%, 3.2%, even a 2024 case study indicating: "Purchase Price of £24,000,000 reflecting an approximate NIY of 3.55%" - How come NIY be so little? Is it because you're targeting an old warehouse from the 80s and that the plan is acquiring the asset at lease expiry, reposition the asset and make money with an exit at ~5%? 

Old asset generates 100, you buy at 3.55% = 2,800

You refurbish the asset, rent it to amazon at 200, sell at 5% = 4,000

Is that the rationale?

If so, what drives the pricing? 

5. Is it just me or does this sound a bit like a tough one? 

Thanks all