developer’s budget calculation, Finance Basics

A prospective developer is considering purchasing a site for the construction of a ‘Business Village’ at a price of £750 000. It will provide a let-able office floor space of 17 500 m2. The estimated construction costs of the office block is £9 450 000. The contract period is assessed at 2 years; and that when fully let, the office block is expected to have an annual rental value of £1 400 000, with the landlord’s annual outgoings estimated at £300 000. Legal, agency and advertising fees are assessed at £420 000. The client requires a return of 9% on the office block. Professional fees are 12% of the construction costs, and finance is at 9%.
Set out a developer’s budget calculation to determine the profitability of the development.
Posted Date: 5/17/2013 9:33:43 PM | Location : Hong Kong

Related Discussions:- developer’s budget calculation, Assignment Help, Ask Question on developer’s budget calculation, Get Answer, Expert's Help, developer’s budget calculation Discussions

Write discussion on developer’s budget calculation
Your posts are moderated
Related Questions
Formation of Sole Proprietorship Business When an individual plans to start a business, his or her main objective is to earn profit but there are a number of factors to take in

main function of the insurance market

Briefly define the terms proprietorship, partnership, and corporation. Ans: The term proprietorship is used as a business owned by one person. Two or more than two people wh

Please describe the trade-off theory of capital structure and how it vary from the Modigliani and Miller theorem with taxes.

Acceptance Rule of IRR IRR will accept a venture if its IRR is higher than or equivalent to the minimum required rate of return such is usually the cost of finance also recogn

Define benefit plan for the employee participants

The Audiology Department at Randall Clinic offers many services to the clinic''s patients. The three most common , along with cost and utilization data, are as follows: Service Var

The average of the industry current ratio was 1.86 for 2004, 0.86 for 2005, and 0.87 for 2006. Lenovo had higher current ratio than the industry average in 2004. At that time, thei

Routine functions - Finance Function For the effective execution of the managerial finance functions, schedule functions have to be performed.  These decisions relate systems