Task: You have been instructed to complete a market valuation on a single tenant commercial property located in Mt Wellington for mortgage security purposes. The bank has specifically requested that you value this property having regard to the two most common investment approaches - Direct Capitalisation and Discounted Cash Flow. Your client has advised you that the building has been leased today, to a national tenant for a nine-year term at a gross commencement income of $457,000 per annum plus GST, paid yearly in advance, which in your opinion is above market rental levels. However, the tenant was given a rental incentive, equivalent to nine months' rent, as a cash payment on commencement, to go towards office fit out works. You have been provided with the following assumptions/ determinants: Valuation Date: DCF Period: Discount rate: Terminal yield: Today Five years 6.50% 8.00% Market Derived capitalisation rate: 7.50% Current assessed net market rental: Building net lettable area: Unrecovered OPEX: $361,000 per annum plus GST and OPEX 3,100 square metres $25 per square metre plus GST $284,625 plus GST Rental incentives (on commencement): Rental reviews: Ratchet clause: Market rental increase: OPEX increase: Purchase price: Capital expenditure: Required: Two yearly to market Soft 2.00% p.a. compounding 1.50% p.a. compounding $4,900,000 plus GST $79,000 plus GST at the end of year 4 By utilising the Excel-based Template provided on Canvas, undertake your valuation analysis and provide advice on your valuation estimates by taking WKSP 5 quiz on Canvas. You would also be required to upload your excel spreadsheet, which must be fully functional (i.e. it must connect all cells in the analysis to the valuation assumptions and utilise excel functions to undertake the analysis where possible). Round workings to the nearest whole number except for the IRR estimate, which should be rounded to two decimal points