Julico House 26-28 Great Portland Street, W1, London Investment Opportunity”.

The paper is a Financial Modelling assignment (with supporting teaser PowerPoint presentation) for a UK Real Estate investment company. The UK investment company will pitch the model and PowerPoint to potential investors There are two scenarios, outlined below, which refer to the transactions in the two attached PDF documents.

Real Estate investment company background information:

The company is a real estate investor, arranger and advisor. It provides investors with strategic advice, raising of capital, and also invests its own funds in real estate investment opportunities. The firm professionally brings forward transactions, equity and skills in executions projects to institutional and high net worth investors looking to participate in various different Real Estate investment opportunities. (If you need any more info about the company please let me know).

The Assignment task:

The assignment will be split into two parts:

1. Professional Financial Model

• In Excel format for each of the two scenarios.
• I’m not sure how these are done, but I’m assuming it will be all in one spread sheet with one tab? If you have any questions, please let me know.

2. PowerPoint Presentation

• Maximum 5 slides and covering both scenarios.
• This will be a financial model supporting teaser document that will be shown to potential investors to secure their financial investment in the project.

• It needs to be concise, simple but informative with not too many words that will bore the viewer of the presentation
• It needs to be in a professional format that is attractive and would be used by a top tier financial modelling company such as Ernst and Young, Deloitte etc.

The assignment comes in the form of two scenarios which are outlined below:

Scenario 1

• Acquire at the asking price
• Try to achieve vacancy by end 2014
• Refurbishment building ex Ground floor at say 100per sq ft
• Re-let at GBP60 per sq ft
• Take voids into account, rent free of say 6 months
• Assume empty rates at GBP15 per sq ft
• Assume service fee for building at 10per sq ft
• Refurbishment takes 6 months
• Exit at 5.5% cap rate at say 2nd qtr 2017

Scenario 2

• Acquire at the asking price
• Only take on refurbishment as leases expires
• Assume 2 qtrs refurbishment at say 40 per sq ft ( light refurb)
• Assume one qtr void
• Assume 2 qtrs rent free and new rent at GBP42.50 per sq ft
• Assume empty rates at GBP15 per sq ft
• Assume service fee for building at 10per sq ft
• Refurb takes 6 months
• Exit at 5.5% cap rate at say 2nd qtr 2017