Real Estate Valuation

 
Seven years ago Avon Tyres let a property to Bridgestone Ltd. by means of an FRI lease for 15 years with upward only rent reviews every 5 years. The current passing rent is £120,000 per annum. One year ago Bridgestone Ltd sublet the property to Fulda UK on similar FRI terms but at a rent of £124,800 per annum for the first year but with annual increases thereafter to 3.5% per annum.

From your comparables,, determine that current rental growth is 4% per annum and you are advised that investors’ target rates are typically in the order of 13% for investments of this nature.

Clearly stating any assumptions
consider it necessary to make, prepare a calculation of worth of Bridgestone’s interest and advise them how to respond to an unsolicited offer of £50,000.

Give a model solution and commentary for this question
ORDER THIS ESSAY HERE NOW AND GET A DISCOUNT !!!

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.