A developer is considering purchasing a piece of development and on which to build a speculative open plan office block. Using the information in the table below, calculate the residual land value that the developer would be willing to bid for the site Include all workings in your answer Word count equivalent approximately 500 Gross Floor Area: 16,500 m Net Lettable Area: 85% GFA Rental Income p.a.: 425/m Purchaser's Costs: 2,600,000 Building Costs (Including external works and professional fees): E1,670/m Developer's required contingency 4% of cost of construction, external works and fees. Other costs and fees 780,000 Marketing and sales costs; E137,000 4/7 Investor's gross yield 7% Loan interest rate: 6% p.a. Developer's required profit: 25% on costs Developer's site acquisition costs: 850,000 Site acquisition to building start: 3 months Construction period: 9 months Rental void 3 months (25 Marks) BSV11111 Building Economics A developer is considering purchasing a piece of development and on which to build a speculative open plan office block. Using the information in the table below, calculate the residual land value that the developer would be willing to bid for the site Include all workings in your answer Word count equivalent approximately 500 Gross Floor Area: 16,500 m Net Lettable Area: 85% GFA Rental Income p.a.: 425/m Purchaser's Costs: 2,600,000 Building Costs (Including external works and professional fees): E1,670/m Developer's required contingency 4% of cost of construction, external works and fees. Other costs and fees 780,000 Marketing and sales costs; E137,000 4/7 Investor's gross yield 7% Loan interest rate: 6% p.a. Developer's required profit: 25% on costs Developer's site acquisition costs: 850,000 Site acquisition to building start: 3 months Construction period: 9 months Rental void 3 months (25 Marks) BSV11111 Building Economics