An investor owns a vacant land. Three property developers have approached the landowner with a view of purchasing the land. The first developer wants to build apartments, while the second shopping mall and the third an industrial building. The following relates to the three possible land usages. Land use Cap rate Annual NOI (Sh) Cost of construction (Sh) Apartment 12% 300,000 1,500,000 Shopping mall 9% 400,000 3,000,000 Industrial building 10% 500,000 3,600,000 Required (i) Calculate the value of the land using the highest and best use analysis (20 marks) (ii) (5 marks) Which developer is likely to buy the land?