You are required to carry out a traditional valuation and DCF investment appraisal for the following investments in the same building owned by the same landlord for a separate 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%.

2. Office: 4,000 metres squared. This office space is currently let out to an existing client on an IRO basis and this lease was signed at the end of September 2010 for a period of 15 years and there are rent reviews every 5 years.

- Passing rent: $400,000 annually, paid in advance

- 15 car parking space included in this lease

- 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%.

3. Office 2: 4200 square metres currently let out to an exisitng client on a IRI basis signed early April 2010 for 21 years, rent reviews every 7 years. - passing rent: $1,500,000 per annum, paid in arrears.

- 20 car parking spaces included in lease.

- 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 office and 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. The seller is seeking offers exceeding $15,000,000 for both properties. 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. Car parking space = $10,000 each. Please note, the investor seeks to buy the above investments and sell after holding period of 15 years.