\

Decision Criteria NPV

Case- 1 Sell the Second Parcel of Land of 46,000 Square feet ₹ 2,214,357.27
Case-2 If the lease is renewed for Second parcel ₹ 2,148,411.94
Case-3 If an Office Building is constructed in the CBD ₹ -1,935,548.23
IRR
32.02%
19.31%
11.26%
Name: Jaivardhan Mittal ( 20220122)
Keya Vaidya (20220149)
Harshil Patel (20220136)
Trilochan Behera (20220147)
Case 1:
In this we consider if we sell the second land parcel after it lease expires in the year 2000, we take the
- The rate pf sale is considered as the sale rate of today's similar properties which is $32/ Sf.
- The inflation is given as the 3% year on year.
- The Discount Rate is taken as 8.26%.

1st property parcel Area Involved 20000 Square Feet

Inflation 3%

Years 1998 1999 2000

PGI $ 47,000 $ 48,410 $ 49,862
Vacancy $ - $ - $ -
EGI $ 47,000 $ 48,410 $ 49,862
Operating Exp $ - $ - $ -
NOI $ 47,000 $ 48,410 $ 49,862
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
LC $ - $ - $ -
PBIT $ 47,000 $ 48,410 $ 49,862
Discount Rate 8%
NPV ₹ 643,222.18
land value 1998 1999 2000
1000000 1030000 1060900 1060900
Discount Rate 5.5%
npv ₹ 11,192,771.23

2nd property parcelArea 46000 Square Feet

Selling Rate $ 32.00 per Sf

Years 1998 1999 2000

PGI $ 100,000 $ 103,000 $ 106,090
Vacancy $ - $ - $ -
EGI $ 100,000 $ 103,000 $ 106,090
Operating Exp $ - $ - $ -
NOI $ 100,000 $ 103,000 $ 106,090
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
LC $ - $ - $ -
PBIT $ 100,000 $ 103,000 $ 1,546,528
Discount Rate 8%
NPV ₹ 1,399,112.33

Total Summation
 Area 66000 Square Feet

Years 1998 1999 2000

PGI $ 147,000 $ 151,410 $ 155,952
Vacancy $ - $ - $ -
EGI $ 147,000 $ 151,410 $ 155,952
Operating Exp $ - $ - $ -
NOI $ 147,000 $ 151,410 $ 155,952
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
LC $ - $ - $ -
PBIT $ 147,000 $ 151,410 $ 1,596,391
Discount Rate 8%
NPV ₹ 2,042,334.51

Land
Acquisition
Cost $ 1,000,000
FV of Cost in
1998 ₹ 1,172,022.76
Net NPV ₹ 2,214,357.27
IRR 32.02%

Case 2:
In this we consider if the lease is renewed for the second parcel of land and there will be vacancy for 6
- The new lease is carried out at the same rate as of market rate for a period of 5 years at a time.
- The inflation is given as the 3% year on year.
- The Discount Rate is taken as 5%.

1st property parcel Area Involved 20000 Square Feet

Inflation 3%

Years 1998 1999 2000

PGI $ 47,000 $ 48,410 $ 49,862
Vacancy $ - $ - $ -
EGI $ 47,000 $ 48,410 $ 49,862
Operating Exp $ - $ - $ -
NOI $ 47,000 $ 48,410 $ 49,862
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
LC $ - $ - $ -
PBIT $ 47,000 $ 48,410 $ 49,862
Discount Rate 8%
NPV ₹ 643,222.18
2nd property parcel Years 1998 1999 2000
PGI $ 100,000 $ 103,000 $ 106,090
Vacancy $ - $ - $ -
EGI $ 100,000 $ 103,000 $ 106,090
Operating Exp $ - $ - $ -
NOI $ 100,000 $ 103,000 $ 106,090
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
LC $ - $ - $ -
PBIT $ 100,000 $ 103,000 $ 106,090
Discount Rate 8%
NPV ₹ 1,333,167.00

Total Summation Years 1998 1999 2000

PGI $ 147,000 $ 151,410 $ 155,952
Vacancy $ - $ - $ -
EGI $ 147,000 $ 151,410 $ 155,952
Operating Exp $ - $ - $ -
NOI $ 147,000 $ 151,410 $ 155,952
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
LC $ - $ - $ -
PBIT $ 147,000 $ 151,410 $ 155,952
Discount Rate 8%
NPV ₹ 1,976,389.18

Land
Acquisition
Cost $ 1,000,000
FV of Cost in
1998 ₹ 1,172,022.76
Net NPV ₹ 2,148,411.94
IRR 19.31%

Case 3:
In we consider that is we construct an office building on land parcel 2 of 46,000 Square Feet. We would begin consutructi
- The cost for construction is termed to be taken as the expeceted rate of $180 per sf, which includes th
- TI is 7.5% of rent each year and LC is 5.5% of PGI in lease renewal years.'

Area Involved 20000 Square Feet

Inflation 3%

Years 1998 1999 2000

PGI $ 47,000 $ 48,410 $ 49,862
Vacancy $ - $ - $ -
EGI $ 47,000 $ 48,410 $ 49,862
Operating Exp $ - $ - $ -
NOI $ 47,000 $ 48,410 $ 49,862
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
 LC $ - $ - $ -
PBIT $ 47,000 $ 48,410 $ 49,862
Discount Rate 8.3%
NPV ₹ 643,222.18

Construction of ABC Tower

Area Available 46000 Sf

side 214.48 Foot
Area after sitelines
new circumference (setbacks) 194.48 Foot
Area Avb After 37821 Sf
expected rate of const. 158.4
FAR 20
Total Feet of Building 756,419
as per FAR
The numbers of floors to be constructed will be based upon the typical floorplates of 28,000 sf,.
We Assume leases taken on a 5 year basis.
Floors 27
Parking 756.42 Sf'

Cost $ 119,816,788
Rate Assumed 16 per Sf
Vacancy 32.40%
Developers Earn Rate 12.00%

Years 1998 1999 2000

PGI $ 100,000 $ 103,000 $ 106,090
Vacancy $ - $ - $ -
EGI $ 100,000 $ 103,000 $ 106,090
Operating Exp $ - $ - $ -
NOI $ 100,000 $ 103,000 $ 106,090
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
LC $ - $ - $ -
PBIT $ 100,000 $ 103,000 $ 106,090
Discount Rate 12.0%
NPV ₹ -2,750,793

Years 1998 1999 2000

PGI $ 147,000 $ 151,410 $ 155,952
Vacancy $ - $ - $ -
EGI $ 147,000 $ 151,410 $ 155,952
Operating Exp $ - $ - $ -
NOI $ 147,000 $ 151,410 $ 155,952
Cap. Reserves $ - $ - $ -
TI $ - $ - $ -
LC $ - $ - $ -
PBIT $ 147,000 $ 151,410 $ 155,952
Discount Rate 8.3%
NPV ₹ -2,107,571
IRR 11.26%

Land
Acquisition
Cost $ 1,000,000
FV of Cost in
1998 ₹ 1,172,022.76
Net NPV ₹ -1,935,548.23
 Property 4.6 Downtown Dallas Land

write the company portfolia

like diversification geography

xpires in the year 2000, we take the following assumptions for this:
roperties which is $32/ Sf.

Invested Amount $ 1,000,000

Capitalization Rate 10%

2001 2002 2003 2004 2005 2006

$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538

2001 2002 2003 2004 2005 2006

1060900 1166990 1283689 1283689 1283689 1283689
 2001 2002 2003 2004 2005 2006
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538

land and there will be vacancy for 6 month to onboard the new tenant fully.
r a period of 5 years at a time.

Invested Amount $ 1,000,000

Capitalization Rate 10%

2001 2002 2003 2004 2005 2006

$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
 2001 2002 2003 2004 2005 2006
$ 109,273 $ 112,551 $ 115,927 $ 119,405 $ 122,987 $ 126,677
$ 27,318 $ - $ - $ - $ - $ 31,669
$ 81,955 $ 112,551 $ 115,927 $ 119,405 $ 122,987 $ 95,008
$ - $ - $ - $ - $ - $ -
$ 81,955 $ 112,551 $ 115,927 $ 119,405 $ 122,987 $ 95,008
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ 81,955 $ 112,551 $ 115,927 $ 119,405 $ 122,987 $ 95,008

2001 2002 2003 2004 2005 2006

$ 160,631 $ 165,450 $ 170,413 $ 175,526 $ 180,791 $ 186,215
$ 27,318 $ - $ - $ - $ - $ 31,669
$ 133,313 $ 165,450 $ 170,413 $ 175,526 $ 180,791 $ 154,546
$ - $ - $ - $ - $ - $ -
$ 133,313 $ 165,450 $ 170,413 $ 175,526 $ 180,791 $ 154,546
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ 133,313 $ 165,450 $ 170,413 $ 175,526 $ 180,791 $ 154,546

re Feet. We would begin consutruction in 2000, and finish construction in 2 years by beginning of 2002.
ate of $180 per sf, which includes the 12% unlevered returns of the developer. Thus, Actual Cost = $158.4 per sf.

Invested Amount $ 1,000,000

Capitalization Rate 10%

2001 2002 2003 2004 2005 2006

$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
 $ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 54,486 $ 56,120 $ 57,804 $ 59,538

pical floorplates of 28,000 sf,.

2001 2002 2003 2004 2005 2006

$ - $ - $ 12,102,706 $ 12,465,787 $ 12,839,761 $ 13,224,953
$ - $ - $ 1,960,638 $ - $ -
$ - $ - $ 10,142,067 $ 12,465,787 $ 12,839,761 $ 13,224,953
$ - $ - $ - $ - $ - $ -
$ - $ - $ 10,142,067 $ 12,465,787 $ 12,839,761 $ 13,224,953
$ - $ - $ 1,134,629 $ 1,134,629 $ 1,134,629 $ 1,134,629
$ - $ - $ 1,838,098
$ - $ - $ 665,649 $ - $ -
$ -59,908,394 $ -59,908,394 $ 6,503,692 $ 11,331,158 $ 11,705,132 $ 12,090,325

2001 2002 2003 2004 2005 2006

$ 51,358 $ 52,899 $ 12,157,192 $ 12,521,907 $ 12,897,565 $ 13,284,492
$ - $ - $ 1,960,638 $ - $ - $ -
$ 51,358 $ 52,899 $ 10,196,553 $ 12,521,907 $ 12,897,565 $ 13,284,492
$ - $ - $ - $ - $ - $ -
$ 51,358 $ 52,899 $ 10,196,553 $ 12,521,907 $ 12,897,565 $ 13,284,492
$ - $ - $ 1,134,629 $ 1,134,629 $ 1,134,629 $ 1,134,629
$ - $ - $ 1,838,098 $ - $ - $ -
$ - $ - $ 665,649 $ - $ - $ -
$ -59,857,036 $ -59,855,495 $ 6,558,177 $ 11,387,279 $ 11,762,936 $ 12,149,863

expected 12%

including property+ land

 2007 2008 2009 2011 2012
$ 61,324 $ 63,164 $ 65,059 $ 69,021 $ 71,092
$ - $ - $ - $ - $ -
$ 61,324 $ 63,164 $ 65,059 $ 69,021 $ 71,092
$ - $ - $ - $ - $ -
$ 61,324 $ 63,164 $ 65,059 $ 69,021 $ 71,092
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ 61,324 $ 700,742 $ 63,164 $ 67,010 $ 69,021
Resale Value $ 637,578.12

2007 2008 2009 2011 2012

1283689 1283689 1283689 1283689 1283689
 2007 2008 2009 2011 2012
$ 61,324 $ 63,164 $ 65,059 $ 69,021 $ 71,092
$ - $ - $ - $ - $ -
$ 61,324 $ 63,164 $ 65,059 $ 69,021 $ 71,092
$ - $ - $ - $ - $ -
$ 61,324 $ 63,164 $ 65,059 $ 69,021 $ 71,092
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ 61,324 $ 700,742 $ 63,164 $ 67,010 $ 69,021

2007 2008 2009 2011 2012

$ 61,324 $ 63,164 $ 65,059 $ 48,410 $ 49,862
$ - $ - $ - $ - $ -
$ 61,324 $ 63,164 $ 65,059 $ 48,410 $ 49,862
$ - $ - $ - $ - $ -
$ 61,324 $ 63,164 $ 65,059 $ 48,410 $ 49,862
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ 61,324 $ 700,742 $ 65,059 $ 48,410 $ 49,862
Resale Value $ 637,578.12
 2007 2008 2009 2011 2012
$ 130,477 $ 134,392 $ 138,423 $ 103,000 $ 106,090
$ - $ - $ - $ - $ -
$ 130,477 $ 134,392 $ 138,423 $ 103,000 $ 106,090
$ - $ - $ - $ - $ -
$ 130,477 $ 134,392 $ 138,423 $ 103,000 $ 106,090
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ 130,477 $ 1,490,941 $ 138,423 $ 103,000 $ 106,090
Resale Value $ 1,356,549.19

2007 2008 2009 2011 2012

$ 191,802 $ 197,556 $ 203,482 $ 151,410 $ 155,952
$ - $ - $ - $ - $ -
$ 191,802 $ 197,556 $ 203,482 $ 151,410 $ 155,952
$ - $ - $ - $ - $ -
$ 191,802 $ 197,556 $ 203,482 $ 151,410 $ 155,952
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ 191,802 $ 2,191,683 $ 203,482 $ 151,410 $ 155,952

2007 2008 2009 2011 2012

$ 61,324 $ 63,164 $ 65,059 $ 48,410 $ 49,862
$ - $ - $ - $ - $ -
$ 61,324 $ 63,164 $ 65,059 $ 48,410 $ 49,862
$ - $ - $ - $ - $ -
$ 61,324 $ 63,164 $ 65,059 $ 48,410 $ 49,862
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
 $ - $ - $ - $ - $ -
$ 61,324 $ 700,742 $ 65,059 $ 48,410 $ 49,862
Resale Value $ 637,578.12

2007 2008 2009

$ 13,621,702 $ 14,030,353 $ 14,451,264
$ - $ 2,272,917 $ -
$ 13,621,702 $ 11,757,436 $ 14,451,264
$ - $ - $ -
$ 13,621,702 $ 11,757,436 $ 14,451,264
$ 1,134,629 $ 1,134,629 $ 1,134,629
$ 1,838,098
$ - $ 771,669 $ -
$ 12,487,073 $ 165,371,244 $ 13,316,635
Resale value $ 157,358,204.82

2007 2008 2009

$ 13,683,026 $ 14,093,517 $ 14,516,323
$ - $ 2,272,917 $ -
$ 13,683,026 $ 11,820,600 $ 14,516,323
$ - $ - $ -
$ 13,683,026 $ 11,820,600 $ 14,516,323
$ 1,134,629 $ 1,134,629 $ 1,134,629
$ - $ 1,838,098 $ -
$ - $ 771,669 $ -
$ 12,548,398 $ 166,071,986 $ 13,381,694