Property Risk Management | Report

Running head: PROPERTY RISK MANAGEMENT
Property Risk Management
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PROPERTY RISK MANAGEMENT1
Table of Contents
Introduction......................................................................................................................................2
Discussion and Analysis..................................................................................................................3
Key Details and Facts used for Valuation of Multiple 65 Property............................................3
Investment Analysis.....................................................................................................................4
Impact of Leverage, Risk and Taxation.......................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The application of property risk management has been well done for an income
producing property that is located in Sydney and would be well analysed based on Investment
Analysis factors and considerations. The income producing property Multiple Levels is
prominently located into the corner of York Street and Barrack Street, which is well located in
the heart city of Sydney CBD’s Western Corridor and is just around 150m walk from the Martin
Place. The assessment or analysis of the project will be well carried on with the help of key
investment techniques that would be well used in the project like NPV and IRR. The project
would also be viewed with respect to effect that would be seen in the particular project due to
leverage, taxation and other risk factors which can affect or alter the investment analysis
undertaken. The 65 York Street presents a unique set of compelling combination of character,
with convenience and cash flows that is well required from an investment property (Multiple
Levels, 65 York Street, Sydney NSW 2000 - Office For Sale | Commercial Real Estate 2020O.
This gives a rare and a unique opportunity for well securing a significant stake in the Sydney’s
CBD Western Corridor Office Market. The subject of the property that would be well considered
for leasing and analysis purpose would be in the form of lots that would be including Level 8,
Level 11 and also a part of Level 3. The three property would be given on a ten year net lease by
the operator with an annual fixed increase in the lease of the property offered. The lease will be
well offered till a period of 2030 and the total square feet of all the three levels would be around
1,646 square meter. Level 8 of the Building will be around 650square meter, Level 11 will be
around 650 square feet and Level 3 part would be 346 square feet (Sold Office at Level 3, 65
York Street, Sydney, NSW 2000 - realcommercial 2020). The purchase price of the property

PROPERTY RISK MANAGEMENT3
would be around $2,000,000 and the resale price of the property has been well calculated with
the help of revisionary value and resale rate for the property.
Discussion and Analysis
Key Details and Facts used for Valuation of Multiple 65 Property
The key details and information about the Multiple 65 Property are as follows:
 Location: York Street, Sydney, NSW 2000.
 Type of Property: Commercial/Office Property
 Total Floor Area: 1,646 square meter
 Lease Term: 10 Years
 Initial Investment: $2,500,000
 No of Tenants: 3 Tenants
 Name of Tenants: Info-Craft Digital Services (Tenant of Level 8), ABC Logitech Service
(Tenant of Level 11), and Zeus Private Ltd (Tenant of Level 3).
 Reversionary Yield: 12% Anticipated Yield/Initial Yield.
 Resale Price Yield: 2%
 The total Capital Outlay including the Stamp Duty, Transfer Fees and Legal fees would
be around $2,624,190 (11/65 York Street, SYDNEY, NSW 2000 - Real estate for rent -
homesales.com.au 2020).
 The current rate of the gross area offered is around $369.10.
 The Annual growth rate of Rental Yield considered is around 3%.
 CPI Inflation Rate has been considered at the level of 2%.
 A flat Charges of about $1000 would be charged as legal fees.