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Hi, I need help for parts A B C and D Question 3 Eco Realty, a real estate private fund secures a plot of land

Hi, I need help for parts A B C and D

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Question 3 Eco Realty, a real estate private fund secures a plot of land in Beach Road at the $10,000 psm per GFA. Under the 5-year Master Plan, the site is intended for a predominantly office development with a site area of 15,000 sqm and plot ratio of 4. Eco Realty plans to sell the asset after ramping up the occupancy and holding it for a period of 24 months upon completion of the construction. The capitalised rate is work out to be 5% at the time of the sale. The project team advises that the all-in construction cost is forecasted to be $ 3,200 psm on Gross Floor Area (GFA). Basing on the design, the net lettable area (NL) is 90% of the GFA. The schedule for design and construction stage is 4 months and 24 months respectively. The estimated net rent at the time of completion of comparable commercial office building is $100 psm per month. Eco Realty has also managed to secure a short-term loan at an interest rate of 6%p.a. Analyse the data and apply the Profit Evaluation Analysis (risk/return) to determine the profit margin of the project. (You are to use Appendix 1 for the computation and submit it together with the assignment.) (25 marks) Eco Realty - Project Evaluation of Profit(risk/return) Analysis Net Development Value 1 Estimated Rental Value (ERV) Net lettable area x rental rate per annum 2 Capitalised Rate in % 3 Less purchaser's cost@ 2% Net Development Value (NDV) B Land Costs 1 Land Price 2 Stamp duty @3% 3 Legal fees on acquisition @0.75% Building Cost 1 GFA x unit rate of construction cost D Professional Fees 1 All in fees @ 10% E Other Costs 1 Site investigation 200,000.00 2 Authorities fees 300.000.00 500.000.00 F Funding Fees 1 Bank's arrangement fees 50.000.00 2 Developer's legal fees 100.000.00 150,000.00 G Finance Costs 1 Interest on Land Costs over the whole period 2 Interest on Building Costs, Professional fees. Other costs and funding fees over half of design and construction period 3 Interest on Building Costs, Professional fees. Other costs and funding fees over holding period H Letting and Sale costs Developer's sale fees@1.5% of NDV I Total Development Cost (TDC) J Developer's Profit Net Development Value Less Total Development Costs MO Developer profit as % of TDC

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