Question 6: Part C 2 of 3 JICA has let a shop in the subway redevelopment scheme to Ayala Malls a commercial retailer, for 12 years at a rent of 240,000 per year. The yield on prime retail property of this sort in the subway station s 5.5 per cent. What is the value of this lease?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Question 6: Part C 2 of 3
JICA has let a shop in the subway redevelopment scheme to Ayala Malls a commercial retailer, for 12
years at a rent of 240,000 per year. The yield on prime retail property of this sort in the subway station
is 5.5 per cent. What is the value of this lease?
Transcribed Image Text:Question 6: Part C 2 of 3 JICA has let a shop in the subway redevelopment scheme to Ayala Malls a commercial retailer, for 12 years at a rent of 240,000 per year. The yield on prime retail property of this sort in the subway station is 5.5 per cent. What is the value of this lease?
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