Question
Use the information below to support your solution clearly. Office Building Facts Total GFA (sq.m) = 45,000 Building Efficiency = 70% Capital Value (US$/sq.m*) =
Use the information below to support your solution clearly.
Office Building Facts
Total GFA (sq.m) = 45,000
Building Efficiency = 70%
Capital Value (US$/sq.m*) = 1,167
Financing Assumptions
LTV = 80%
Interest = 8%
Loan Term (year) =15 (Loan Payment is Monthly basis)
DCR = 1.2
Operation Assumptions
Rental Rate = 15(US$/sq.m./month)*
Rental Rate Growth = 10% every 3 years
Occupancy Rate : Year 1 = 75%, Y2 onward = 80%
Operating Expenses = 3.83(US$/sq.m./month)* of occupied space
Operating Expenses Growth = 3%per year
(* Estimates 1$US = 30 THB)
Please answer in US$ currency
a) What is a total acquisition cost?
b) What is a net leasable area?
c) What is the operating expenses in year one?
d) What is the potential gross income in year two?
e) What is the total loan amount?
f) What is an equity portion?
g) What is a loan repayment per year? (according to loan payment assumptions).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started