Question
Quantitative Assessment : Your Client is an experienced real estate developer with a diverse portfolio of assets. The Clients Asset Management team oversees the portfolio
Quantitative Assessment :
Your Client is an experienced real estate developer with a diverse portfolio of assets. The Clients Asset Management team oversees the portfolio and is responsible for maximizing value and return on investment for the portfolio. The following table provides a general overview of the Clients properties, including a high-level assessment of general conditions and key challenges.
The Client has asked for your help in understanding the main implications of addressing the key challenges for each of the three properties presented in the table above. For each property, outline a brief cost-benefit analysis for addressing these challenges
(hint: consider the potential impact on the developments aesthetic, status, market appeal, competitiveness, rental revenue, and future-proofing).
Part 2: Quantitative Assessment Page 1/2 Your Client is an experienced real estate developer with a diverse portfolio of assets. The Client's Asset Management team oversees the portfolio and is responsible for maximizing value and return on investment for the portfolio. The following table provides a general overview of the client's properties, including a high-level assessment of general conditions and key challenges. The Client has asked for your help in understanding the main implications of addressing the key challenges for each of the three properties presented in the table above. For each property, outline a brief cost-benefit analysis for addressing these challenges (hint: consider the potential impact on the developments' aesthetic, status, market appeal, competitiveness, rental revenue, and future-proofing). Property ID Doc Location General Conditions & Key Challenges Conventional Residential Apartments 2006 Al Yasmin District, Riyadh Below-average: a plan to renovate the building is currently being considered. Renovation include the installation of two new elevators, a new CCTV system, and a rooftop barbeque area. Additionally, the Asset Management team is considering the inclusion of "lifestyle-oriented" facilities, such as a small gym, a convenience market, and a barbershop. As space in the building is limited, some apartments will have to be vacated and repurposed if this suggestion is to be realized. Conventional Retail Plaza 2010 Al Rawdah District, Jeddah Average: a facility management company, GoodProp Co., was appointed in 2011 and has recently proposed a facelift to the plaza, with a particular focus on renovating the interiors (eg, paint, signage, washrooms, etc.). Additionally, to help drive footfall to the development, the Asset Management team has suggested repurposing approximately five line shops into one junior anchor store (of size 500 sqm) dedicated to an indoor family entertainment center (FEC). Labor/Staff Accommodation Complex 2015 Second Industrial City, Riyadh Good: the Asset Management team appointed GoodProp Co. to oversee the labor/staff accommodation complex prior to the development's construction, in 2014. Operations have commenced as expected, and no recommendations for improvement have since been made. The Asset Management team is concerned about how the current offer will address the target segments' future needs (i.e. future-proofing)
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