Question: A developer is building a Data Centre in Longeuil, Quebec. She has already negociated a lease with one operator, who will take up the entire
A developer is building a Data Centre in Longeuil, Quebec. She has already negociated a lease with one operator, who will take up the entire building. The operator will move in and start paying rent as soon as construction is finished.A developer is building a Data Centre in Longeuil, Quebec. She has already negociated a lease with one operator, who will take up the entire building. The operator will move in and start paying rent as soon as construction is finished.
Lease, financing and market data are shown below.
aBased on the budget, calculate the outstanding construction loan at the end of construction.
b The developer plans to takeout a mortgage at the end of construction, when the lease starts. How much equity will she be able to withdraw?
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