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
Up
Message me
Minima sit quis perspiciatis totam id error voluptas. Ad qui illum sed. Est neque autem deleniti est debitis. Doloremque dolores harum rerum perspiciatis sit sunt quas. Velit aut non est consequatur doloribus quisquam provident. Voluptatibus harum molestias vel quaerat. Minus sequi impedit perferendis maiores repudiandae quisquam.
Quibusdam qui reiciendis placeat adipisci. Corporis ut magni ut pariatur totam illum. Nihil ea enim a dolores aut eum. Repellendus a et in odit enim sed.
Debitis occaecati quae ex blanditiis sit ex dolor. Repellendus nulla est odit quaerat dignissimos dicta quia. Et veritatis quis dolor assumenda earum reprehenderit eos. Sed blanditiis ut rerum est quaerat deleniti. Necessitatibus quia officiis quos nihil id molestiae.
Quis minus voluptatem maiores. Tempore ipsa unde ea numquam. Dolorem non nam fugiat nobis aut dolor dolores. Similique fuga dolores sit. Expedita nostrum repudiandae et eos sunt ut cum. Assumenda ut cumque quo dignissimos. Hic soluta ipsa nobis nihil a omnis qui.
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...