document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1086209>Question 1086209</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A retail shopping centre is in the market for $ 30 000 000. the following information is applicable: <BR>\n" );
document.write( "1. the shopping centre consists of 10 000 m2 lettable space. ( 2000m2 is allocated for anchor tenants and 8000m2 for line shops<BR>\n" );
document.write( "2. you gather from the current rental market that you may ask R 50 per square meter for anchor tenants and R 150 per square meter for line shops, excluding operating expenses. current operating expenses amounts to R 30 per square meter <BR>\n" );
document.write( "3. your market analysis indicates that by spending another $ 10 000 000 in converting the building into a green building, it is possible to receive rent of R 70 per square meter from anchor tenants and R 200 per square meter for line shops, it is also noted that your operating expenses will reduce from R 30 per square meter to R 20 per square meter. <BR>\n" );
document.write( "4. at the end of the year you apply for a further advance on your bond in order to pay the contractor the $ 10 000 000 for the upgrade. <BR>\n" );
document.write( "5. the building 10 000m2 is fully let during the construction period. <BR>\n" );
document.write( "6. the expected growth in the value of the property is at 15% per annum <BR>\n" );
document.write( "7. the lease period is 10 years, while the bond is 20 years. <BR>\n" );
document.write( "8. escalation on the lease amount as well as the operational expense is at 6% per annum. <BR>\n" );
document.write( "9. You plan to sell the property at the end of the investment period which is after 10 years. <BR>\n" );
document.write( "10 the discount rate where applicable is 11%, compounded monthly <BR>\n" );
document.write( "11 use 11% monthly compounded as your amortization.\r<BR>\n" );
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document.write( "Q1 Calculate the net monthly cash flow for the first year, after taking account bond, operating expenses as well as the lease payments\r<BR>\n" );
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document.write( "Q2 \r<BR>\n" );
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document.write( "Calculate the net yearly cash flow for the investment period after taking into account the development cost, bond, operating expense as well as the lease payments. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #700724 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52781)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=700724\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .<BR>\n" );
document.write( "It is not a Math problem.\r<BR>\n" );
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document.write( "It is from Finance.\r<BR>\n" );
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document.write( "Find another, more appropriate site and post it there.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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