Question
Royal Golf Club is a freehold interest with 200 acre-lot located at Damansara. The property is a 32-hole golf course the ten-year-old building constructed with
Royal Golf Club is a freehold interest with 200 acre-lot located at Damansara. The property is a 32-hole golf course the ten-year-old building constructed with high quality finishes. The golf course with mature trees and bushes, covered with well-kept grass, 40 sand traps and nine (9) ponds are well maintained. Fairways, tees, and greens are in excellent condition. Floodlights are installed for night play. Other facilities provided at the club include five (5) tennis court, two (2) 50 metres swimming pool, and two (2) squash courts and a gymnasium. | ||||||||||||||||||||||||||||||||||||
The income statement of the property for the past three years is as follows:
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The operator share is 40%. An analysis of the rate of return for leisure properties is 9% per annum and bank interest rate is 9% per annum. | ||||||||||||||||||||||||||||||||||||
Determine the market value of the golf course for financing purpose. |
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