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
Question: a) Lucy who plans to retire in 18 years has decided to save money in the bank at the beginning of each month until her retirement, with each subsequent saving incre

Creditors Payment Period Ratio Creditors payment period =   365/ Creditors turnover                                           = (365 x Average creditors)/Annual credit pu

Define the term- Origination Origination offers to the work of investigation, analysis and processing of new project proposals. Origination starts before an issue is really

Eye Field - Vertebrate Eye The development of eyes starts with evagination of the lateral wall of the forebrain. one on each side, which make the optic vesicles. By vital dye

bond issued $900,000 of 8% on 3/1, they pay interest on 9/1 and mature in 10years case a @ 100, case b @ 92, case c @ 105 wha is total cash outflow thru maturity total borrowing co

Marginal cost of finance This is cost of new finances or additional cost a company has to pay to raise and use additional finance is given by: (Total cost of marginal finan


Determine the Component of Return Rate of return from an investment consists of the two: (i) Yield: Interest or dividend received is called yield. (ii) Capital Appreci

Money or Discount Markets - Financial Markets 1. Are discount and acceptance financial institutions 2. This is a market for S.T funds growing up in one year. Money market w

Fixed income security can be defined as the financial obligation of an entity (known as the issuer), which promises to pay a specified amount of money on a pre-sp