File:zpreipfa | Created by © Zeppelin Partners Limited | |||||

Phone (852) 37576388, Fax (852) 37576399, E-mail stephenchung@zeppelin.com.hk | ||||||

SIMPLE REAL ESTATE INVESTMENT CALCULATION PROFORMA | ||||||

Based on Acquiring an Existing Investment Property and Selling it after an assumed number of years | ||||||

============== | ============== | ============== | ============== | ============== | ============== | |

Project / Subject : | Lovely Garden | |||||

Date : | 1-Nov-00 | Updated on : | Input if apply | |||

Remarks : | For simple illustration only. Further / Detail studies may be required. | |||||

Requires Microsoft Excel and complimentary computer equipment and operational capacity. | ||||||

Seek advice from appropriate consultants prior to usage if unsure. | ||||||

Zeppelin or its associates, consultants, staff and the like do NOT take responsibility for losses | ||||||

or damages arising out of the use of these proformas or content. | ||||||

Zeppelin or its associates, consultants, staff and the like do NOT take responsibility for | ||||||

mistakes, virus or bugs contained in these proformas or content. | ||||||

Input Cells are in GREEN Color. | ||||||

============== | ============== | ============== | ============== | ============== | ============== | |

INPUT AND ASSUMPTION PAGE : | Input Currency used = | HK$ | Notes / Remarks | |||

REVENUE ITEMS | (There is no need to fill in all revenue components although there should be at least one) | |||||

a) Rental Income from Residential Per Annum = | 8,122,500 | Per Month = | ||||

Input Quantity e.g. total Gross Floor Area (GFA) in ft2 = | 50,000 | ft2 or m2 | ||||

Input Quantity in terms of no. of units if applicable = | 20 | Average GFA / Unit : | ||||

Input Rental Rate e.g. $ per ft2 or per m2 GFA per month = | 15 | $/ft2 or m2/month | ||||

Input Rental Rate Increase / Decrease Rate % = | 5.00% | |||||

Input Vacancy Rate % = | 5.00% | |||||

b) Rental Income from Retail Per Annum = | 0 | Per Month = | ||||

Input Quantity e.g. total Gross Floor Area (GFA) in ft2 = | 0 | ft2 or m2 | ||||

Input Rental Rate e.g. $ per ft2 or per m2 GFA per month = | 0 | per ft2,m2/month | ||||

Input Rental Rate Increase / Decrease Rate % = | 5.00% | |||||

Input Vacancy Rate % = | 5.00% | |||||

c) Rental Income from Office Per Annum = | 0 | Per Month = | ||||

Input Quantity e.g. total Gross Floor Area (GFA) in ft2 = | 0 | ft2 or m2 | ||||

Input Rental Rate e.g. $ per ft2 or per m2 GFA per month = | 0 | per ft2,m2/month | ||||

Input Rental Rate Increase / Decrease Rate % = | 5.00% | |||||

Input Vacancy Rate % = | 5.00% | |||||

d) Rental Income from Industrial Per Annum = | 0 | Per Month = | ||||

Input Quantity e.g. total Gross Floor Area (GFA) in ft2 = | 0 | ft2 or m2 | ||||

Input Rental Rate e.g. $ per ft2 or per m2 GFA per month = | 0 | per ft2,m2/month | ||||

Input Rental Rate Increase / Decrease Rate % = | 5.00% | |||||

Input Vacancy Rate % = | 5.00% | |||||

e) Rental Income from Other Use(s) Per Annum = | 0 | Per Month = | ||||

Input Quantity e.g. total Gross Floor Area (GFA) in ft2 = | 0 | ft2 or m2 | ||||

Input Rental Rate e.g. $ per ft2 or per m2 GFA per month = | 0 | per ft2,m2/month | ||||

Input Rental Rate Increase / Decrease Rate % = | 5.00% | |||||

Input Vacancy Rate % = | 5.00% | |||||

f) Rental Income from Parking Per Annum = | 0 | Per Month = | ||||

Input Quantity e.g. no. of parking spaces = | 0 | No. of spaces | ||||

Input Rental Rate e.g. $ per parking space per month = | 0 | $/space/month | ||||

Input Rental Rate Increase / Decrease Rate % = | 5.00% | |||||

Input Vacancy Rate % = | 5.00% | |||||

g) Rental Income from Miscellaneous Per Annum = | 0 | Lump Sum p.a. | ||||

Input Rental Rate Increase / Decrease Rate % = | 5.00% | |||||

i) Cap Rate Used at Disposition = | 4.00% | |||||

j) Marketing or Leasing Cost as a % of total revenues = | 5.00% | |||||

EXPENSE ITEMS | ||||||

a) Acquisition Cost based on Actual/Estimated Price $ = | 150,000,000 | Purchase $/GFA : | ||||

Input Stamp Duty % IF ANY = | 2.75% | Approx Yield % : | ||||

Input Real Estate Agency Fee % IF ANY = | 1.00% | |||||

Input Legal and Transaction Fee % IF ANY = | 1.00% | |||||

b) Estimated Building Maintenance Cost Per Annum = | 1,800,000 | Per Month = | ||||

It is assumed that reserved funds for major renovations / repairs are included herewith. | ||||||

Construction Floor Area (total floor area above + % below) = | 50,000 | |||||

Input % allowance for Construction Floor Area = | 0.00% | |||||

Input Maintenance Cost per Construction Floor Area $/ft2 or m2/month = | 3.00 | per ft2,m2/month | ||||

Input Expected Inflation / Deflation Rate % = | 5.00% | |||||

c) Estimated Property Management Cost Per Annum = | 270,000 | Per Month = | ||||

Input % allowance for Soft Costs (based on total maintenance cost) = | 15.00% | |||||

Input Expected Inflation / Deflation Rate % = | 5.00% | |||||

d) Input % Level of Financing for Acquistion Cost IF ANY = | 50.00% | |||||

Assumption : A simple "balloon payment" mortgage is used here. | ||||||

Input Estimated / Expected Overall Average Interest Rate % = | 9.00% | |||||

Input Investment Time in years = | 5 | Years | ||||

e) Estimated Land Rent / Rates Cost Per Annum = | 731,025 | |||||

Input % allowance for marketing (based on total rental income) = | 3.00% | |||||

Input % allowance for land rent (based on total rental income) = | 3.00% | |||||

Input % allowance for rates (based on total rental income) = | 3.00% | |||||

Input Expected Inflation / Deflation Rate % = | 5.00% | |||||

f) Recoupment Rate % of (b), (c) and (e) from tenants IF ANY = | 95.00% | |||||

Assuming typical circumstances, this would be roughly equal to the overall "Occupancy Rate%" i.e. 100% - Vacancy % used here. | ||||||

Ref Only:Expense(b)+(c)/unit/month : | 8,625 | Discount Rate = | 10.00% | |||

============== | ============== | ============== | ============== | ============== | ============== | |

Results : | Net Present | Internal Rate of | ||||

Investment Years | Value | Return | Price +/-% p.a. | Discount % used | Cap Rate used | |

2 | 32,951,670 | 32.39% | 18.19% | 10.00% | 4.00% | |

3 | 32,916,922 | 24.58% | 13.62% | 10.00% | 4.00% | |

4 | 32,858,141 | 20.85% | 11.40% | 10.00% | 4.00% | |

5 | 32,778,747 | 18.67% | 10.09% | 10.00% | 4.00% | |

10 | 32,168,536 | 14.44% | 7.51% | 10.00% | 4.00% | |

15 | 31,382,120 | 13.09% | 6.67% | 10.00% | 4.00% | |

============== | ============== | ============== | ============== | ============== | ============== |