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INVESTMENT C This property is a freehold; grade A, 850 sq.m. office in Nicosia's CBD (commercial and business district). A Russian company that was
INVESTMENT C This property is a freehold; grade A, 850 sq.m. office in Nicosia's CBD (commercial and business district). A Russian company that was occupying the property was paying 11/month per month but they have just moved out. Another company from Germany is interested to rent the office and they are offering a 5 year contract (FRI lease) but they will move not earlier from 6 months and no later than one year. They are willing to pay the amount of 15,000 as a reserve deposit and 12/sq.m. per month (with a 2% yearly increase) as soon as they move in. Acquisition and sale fees are estimated at 4% of price. Assignment TASKS In every case you should identify the 'sensitive' values and apply a proper sensitivity analysis as presented in the workshop class. You should provide the client an analytical spreadsheet of every investment and an overall spreadsheet that will include the sensitivity analysis. You should also write a detailed technical letter (600 to 1000 words) explaining your analysis and clarifying your choice. The client is offering you a 10% bonus (marks) if you show him skills of risk - adjustment techniques (analysis that incorporates risk considerations)
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