Value the freehold investment of a 22,000 sqft (GIA) industrial unit let on the following terms. The property is let, 3 years ago, to a national logistics company on a 15-year FR&I lease with upwards on rent reviews every fifth year. The passing rent is £176,000 per annum. The adjacent unit, built to similar specifications has an area of 20,000 sqft (GIA), has just been sold for £2,500,000. This unit is let at a market rent of £200,000 per annum. Clearly stating any additional assumptions, you consider it necessary to make, value the 22,000 sqft property, using the Term and Reversion technique.
Value the freehold investment of a 22,000 sqft (GIA) industrial unit let on the following terms. The property is let, 3 years ago, to a national logistics company on a 15-year FR&I lease with upwards on rent reviews every fifth year. The passing rent is £176,000 per annum. The adjacent unit, built to similar specifications has an area of 20,000 sqft (GIA), has just been sold for £2,500,000. This unit is let at a market rent of £200,000 per annum. Clearly stating any additional assumptions, you consider it necessary to make, value the 22,000 sqft property, using the Term and Reversion technique.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Value the freehold investment of a 22,000 sqft (GIA) industrial unit let on the following terms. The property is let, 3 years ago, to a national logistics company on a 15-year FR&I lease with upwards on rent reviews every fifth year. The passing rent is £176,000 per annum.
The adjacent unit, built to similar specifications has an area of 20,000 sqft (GIA), has just been sold for £2,500,000. This unit is let at a market rent of £200,000 per annum.
Clearly stating any additional assumptions, you consider it necessary to make, value the 22,000 sqft property, using the Term and Reversion technique.
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