Question
construct a section of a report using the information below Financial Aspects of Building Development Revenue and Sales Forecast A brief summary On a land
construct a section of a report using the information below
Financial Aspects of Building Development Revenue and Sales Forecast
A brief summary On a land area of 20,000 square metres, the development is comprised of two buildings that each have eight stories. It is anticipated that the Nett Lettable Area (NLA) would be 160,000 square metres, and the footprint of each individual structure will be about 5,000 square metres. Bars will be built on the rooftops of the building, while cafes and retail spaces will be housed on the ground level. It is anticipated that the inclusion of a social space inside the development would enhance its attractiveness, which may lead to increasing levels of pedestrian activity and an increase in the demand from renters.
Revenue Projections
Retail Spaces and Cafes (Ground Floor)
Total Area: 10,000 sqm (5,000 sqm per building)
Average Rent: $50 per sqm per month
Annual Revenue: 10,000 sqm * $50/sqm/month * 12 months = $6,000,000
Office Spaces (1st to 7th Floors)
Total Area: 140,000 sqm (70,000 sqm per building)
Average Rent: $40 per sqm per month
Annual Revenue: 140,000 sqm * $40/sqm/month * 12 months = $67,200,000
Rooftop Bars
Total Area: 2,000 sqm (1,000 sqm per building)
Average Rent: $60 per sqm per month
Annual Revenue: 2,000 sqm * $60/sqm/month * 12 months = $1,440,000
Total Annual Revenue: $74,640,000
Expense Projections
Construction Costs
Land Acquisition: $20,000,000
Construction (Per Sqm): $2,000
Total Construction Cost: 160,000 sqm * $2,000/sqm = $320,000,000
Operational Expenses (Annual)
Maintenance: $10 per sqm
Total Maintenance Cost: 160,000 sqm * $10/sqm = $1,600,000
Utilities and Services: $5 per sqm
Total Utilities and Services: 160,000 sqm * $5/sqm = $800,000
Staffing and Management: $2,000,000
Total Annual Operational Expenses: $4,400,000
Projected Profit and Loss Statement
| Year | Revenue | Expenses | Profit/Loss |
| Year 1 | $74,640,000 | $4,400,000 | $70,240,000 |
| Year 2 | $74,640,000 | $4,400,000 | $70,240,000 |
| Year 3 | $74,640,000 | $4,400,000 | $70,240,000 |
| Year 4 | $74,640,000 | $4,400,000 | $70,240,000 |
| Year 5 | $74,640,000 | $4,400,000 | $70,240,000 |
Projected Cash Flow Statement
| Year | Cash Inflows | Cash Outflows | Net Cash Flow |
| Year 1 | $74,640,000 | $324,400,000 | $(249,760,000) |
| Year 2 | $74,640,000 | $4,400,000 | $70,240,000 |
| Year 3 | $74,640,000 | $4,400,000 | $70,240,000 |
| Year 4 | $74,640,000 | $4,400,000 | $70,240,000 |
| Year 5 | $74,640,000 | $4,400,000 | $70,240,000 |
Projected Balance Sheet
| Assets | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Current Assets | $74,640,000 | $144,880,000 | $215,120,000 | $285,360,000 | $355,600,000 |
| Fixed Assets | $320,000,000 | $320,000,000 | $320,000,000 | $320,000,000 | $320,000,000 |
| Total Assets | $394,640,000 | $464,880,000 | $535,120,000 | $605,360,000 | $675,600,000 |
| Liabilities | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Current Liabilities | $4,400,000 | $4,400,000 | $4,400,000 | $4,400,000 | $4,400,000 |
| Long-term Debt | $320,000,000 | $320,000,000 | $320,000,000 | $320,000,000 | $320,000,000 |
| Total Liabilities | $324,400,000 | $324,400,000 | $324,400,000 | $324,400,000 | $324,400,000 |
| Equity | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Retained Earnings | $70,240,000 | $140,480,000 | $210,720,000 | $280,960,000 | $351,200,000 |
| Total Equity | $70,240,000 | $140,480,000 | $210,720,000 | $280,960,000 | $351,200,000 |
With considerable revenue generating from retail, office spaces, and rooftop bars, as well as predictable operational expenses, the financial projections shown above illustrate that the development project in question is robust and profitable.
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Organic Chemistry A Short Course
Authors: Harold Hart, Christopher M. Hadad, Leslie E. Craine, David J. Hart
13th edition
978-1111425562
