You are required to carry out a traditional valuation and DCF investment appraisal for the following investments investor who is seeking to buy:

1. Tims Bar: 1800 metres squared. 25-year lease was agreed on 5th December 2017 at $440,000 and is quoted on a net basis. Rent is paid annually in arrears and index linked to the CPI.

- gross initial yield of 5.75%

- implied growth rate of 3.25% per annum (only on non-index linked rents)

- CPI of 3%

- rate of return 9%.

Additionally, you anticipate that, given the prevailing conditions in the current USA bar market, it will take 12 months post the expiration of an existing lease to secure a new tenant of high quality. Additionally, it is imperative to explicitly factor in potential periods of rental income voids. Also, must account for 6% purchase, 3% disposal cost at end of holding period. Exit yield post refurbishment 4.6%. Also, cannot collect rent during the last year. Valuation date: 4th December 2023. Please note, the investor seeks to buy the above investment and sell after holding period of 15 years.