From the following information compute Residual Land Value (RLV)
i)Development opportunity for 1,000m2 offices that it is estimated will let for INR 13000 / m² and sell at an initial yield of 10%

ii)Construction costs are estimated to be INR 800 / m² and the development will take, after a lead-in period of 0.5 years, 1.5 years to complete, plus a void of 0.75 years.

The developer is seeking a minimum return on development value of 25%.

Answer rating: 100% (QA)

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