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Your client has recently occupied 47 West Street, a newly constructed shop unit, having acquired the freehold interest for $750,000. On the ground floor is a sales area with a width of six metres and a depth of eighteen metres. At the rear of this area, up a flight of five steps, is a further sales area with a width of six metres and a depth of twelve metres. This rear sales area has a frontage and a door to East Street which is also a shopping area. On the first floor is storage accommodation with an area of 60 square metres net internal area. Recently 45 West Street, a shop in the same parade, was let for $53,000 per annum on a full repairing and insuring lease for a term of 10 years with a rent review to open market value after five years. This shop has a width of five metres and a depth of sixteen metres on the ground floor. On the first floor, there are 30 square metres net internal area of storage accommodation. The Zone A rate for West Street has been agreed with the Valuation Officer at $1,000 per square metre. The assessment of the shop in East Street adjoining the part of your client’s property fronting that street has been agreed at $27,000 Rateable Value. This shop has ground floor sales only; the width is six metres and the depth is twelve metres. Assuming six metre zones, advise your client of the likely Rateable Value of 47 West Street. Show all your calculations, making clear your assumptions.
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