Additional data provided:

$1)$ Cost of compiling the provided data

$2)$ Market survey

$3)$ Pre$-$contract period $($Base Date of Estimate is $\backslash (1/11/2024\backslash ))$

$4)$ Construction period

$5)$ Pre$-$contract effective escalation rate

$6)$ Contract effective escalation rate

$7)$ Professional fees $($latest Gazetted Tariffs discounted to

total escalated construction cost plus VAT$)$

$8)$ Equity available

$9)$ Method of finance $($based on Total Capital Outlay$)$

$10)$ Bond interest rate during construction

$11)$ Owners equity will be provided through loan account during construction $\backslash$& $5\backslash \%$ p$.$a $($pre trading$)$

$12)$ Loan account $($on equity$)$ interest rate over $240$ months $($trading$)\backslash (5\backslash \%\backslash )$ p$.$a

$13)$ Lettable office space $(\backslash (90\backslash \%\backslash )$ efficient RA$/$CA$)\backslash (9200\backslash$mathrm$\{$~m$\}^\{2\}\backslash )$

$14)$ Covered parking within basement $(\backslash (28\backslash$mathrm$\{$~m$\}^\{2\}\backslash )$ per bay$)300$ bays

$15)$ Gross office opening rental $($Excl VAT$)(5$ year lease term$)$

$\backslash (\backslash$mathrm$\{$m$\}^\{2\}/\backslash )$ month

$16)$ Gross covered opening parking rental $($Excl VAT$)$

R $\backslash (135/\backslash$mathrm$\{$m$\}^\{2\}/\backslash )$ month

R $\backslash (450/\backslash$mathrm$\{$bay$\}/\backslash )$ month

$17)$ Average annual occupancy rate $($including parking$)\backslash (99\backslash \%\backslash )$

$18)$ Annual escalation in rentals

$19)$ Annual escalation in operating expenditure

Note: assume rentals revert to market and escalate at the same rate as the contractual rentals

$20)$ Useful life of the project

$20$ years

$21)$ Residual value of the building $($Future Value$)$ equal to Total Capital Outlay

$22)$ Bond raising fee

$23)$ Assessment rates $($rates and taxes$)$ during construction $($Excl VAT$)$ R $19000/$ month $($foxed during pre$-$trading, then escalating $\backslash$& $\backslash (9\backslash \%\backslash )$ p$.$a thereafter$)$

$25)$ Agents letting fee $($Excl VAT$)$

$26)$ Plan approval costs $($Excl VAT$)$

$27)$ Capitalisation rate

$28)$ All given figures exclude VAT at $15\backslash \%$ unless otherwise stated

You are required to:

Familiarize yourself with all tax issues pertinent to this study, and collectany additional information you feel is required to complete this study.

IMPORTANT NOTE:

No further income, expenditure, capital cost or allowances are required to be added to the data provided

$1)$ Report on the total construction cost

$2)$ Calculate the ventures Weighted Average Cost of Capital

$3)$ Calculate the residual land value giving a targeted ROI of $11\backslash \%$

$4)$ Conduct a comprehensive cash flow analysis of the project and compute the NPV and IRR's for the project.

$($The cash flow analysis must clearly show:

$-$ All cash inflows and outflows

$-$ Tax calculations

$-$ Any other items you feel may be of importance$)$

$5)$ A sensitivity analysis of each of the following variance factors $(\backslash (5\backslash \%,10\backslash \%\backslash )$ and $\backslash (20\backslash \%\backslash )$ above and below current$)$:

$-$ Bond Rate during construction

$-$ Land cost

$-$ Building cost

$-$ Annual escalation in rental for $6,7,8,10,$ and $11\backslash \%$

$-$ Gross rental income

$-$ Professional fees

$-$ Equity

Discuss which of the above factors should be given special attention.

$6)$ Recommendations for the feasibility of the project with substantiated reasoning.