Real Estate Evaluation

This report evaluates the City Highrise project based on cost and revenue analysis. It includes a breakdown of development costs, revenue forecasting, risk assessment, and more.

Running head: REAL ESTATE EVALAUTION
Real Estate Evaluation
Name of the Student:
Name of the University:
Author’s Note:

1REAL ESTATE EVALUATION
Serial Particulars Yes No
1 Cost Involved in the Development of the Project Yes -
2 Report for the City Highrise Project Yes -
3 Earnings/Cash Flows Schedule Yes -
4 Profit Analysis Yes -
5 Development Expenses Yes -
6 Financing Expenses Yes -
7 Increase in Outflow or Expenses of the project Yes -
8 Return Generated by the project Yes -
9 Revenue Forecasting for the John Wiley Pty Ltd Yes -
10 Acquisition Price for John Wiley Pty Ltd. Yes -
11 Financial Analysis for John Wiley Pty Ltd Yes -
12 Return Creation Yes -
13 Exit Route for City Highrise Yes -
14 Impact of Leverage Yes -
15 Risk Assessment Yes -
16 Sensitivity Analysis Yes -
Assignment Checklist

2REAL ESTATE EVALUATION
Table of Contents
Letter of Advice...............................................................................................................................3
Executive Summary.........................................................................................................................5
Introduction......................................................................................................................................6
Assumptions....................................................................................................................................6
Methodology....................................................................................................................................7
Spreadsheet and Evaluation of the Factors Evaluated.....................................................................8
Discussion and Recommendations................................................................................................13
Risks and Sensitivity Analysis................................................................................................13
Risk Evaluation of City Highrise project..............................................................................13
Exit Route Evaluation.............................................................................................................15
Annual Cash Flow for John Wiley Pty Ltd...........................................................................16
Analysis of the Project under Scenario 2 for John Wiley Pty Ltd......................................18
Return from Project under Scenario 2..................................................................................19
Conclusion.....................................................................................................................................19
Reference.......................................................................................................................................20

3REAL ESTATE EVALUATION
Letter of Advice
Melbourne, VIC 3000
Telephone [phone]
www.mckenzieandassociate.com.au
28th September 2018
Mr Con Gomes,
The Managing Director
City Highrise Complex Development Option.
Level 6, 510 King William Street,
Adelaide SA 5000
Dear Mr. Gomes,
Sir it is to bring under your notice that the Financial evaluation for the Project City high rise was
evaluated where the cost and the revenue analysis was done for the project. Total development
cost was even determined for the project which gave us the estimate for the total cost that will be
incurred in the project due course of time. The financial evaluation and analysis done was based

4REAL ESTATE EVALUATION
on assumptions and facts that the company may face at the time for the construction of the
project.
The different components and factors were evaluated on the base that the factors for
estimating the project revenue and expenses such as the construction expenses, development
expenses and the escalation and outgoing costs could have probable impacts on the project.
Present breakdowns and scenario project Investment Analysis was done on different
grounds and different scenarios where the project scenario could be determined under the
optimistic and pessimistic scenario. Scenario Analysis and the risk assessment and analysis
helped us gain an scenario under which the project could land up. The exit rout and the price for
selling the developed project to John Willey Pty Ltd Company and the developers profit arising
from the same were the key factors evaluated and included in the project.
Please feel free to get in touch with us in case of any concern or query.
Yours Sincerely
Financial Adviser
Real Estate Developer

5REAL ESTATE EVALUATION
Executive Summary
The aim for the project is to evaluate a Real Estate project that is the City Highrise project. The
analysis and the evaluation of the project was done on the basis of the cost and the revenue
implied by the project. The City Highrise project has been divided into different scenarios where
the project commences with the demolition of the existing building and the construction and the
planning and the development of the new project. The approaches used for the valuation of the
project was the income and the cost approach for the City Highrise Project. The development
cost breakdown along with the cash expenditure involved for constructing the complex was
carefully analyzed. The risk assessment for the project was done by using the risk assessment
tools such as the scenario analysis, which gave us an optimistic and pessimistic scenario for
conducting and the final evaluation of the project.

6REAL ESTATE EVALUATION
Introduction
The project evaluation for the City Highrise Project is the main evaluation done under the
project. The project evaluation and assessment was based on the fact that the project will be
distributed in three major parts where each factor and scenario has its role to play. The
demolition phase, construction, planning and designing along with the cost involved with the
same were the key reasons that were evaluated while assessing the project. The financial
evaluation was done and the forecasting of revenue and the costs associated was performed on
the project to get a financial sustainability for the project. The project revenue breakdown along
with the costs associated such as development, construction were forecasted with the inflation
forecast, which was assumed to be 4% and 6% at the different phase of the project (Kuhle and
Lin 2018).
The other part of the project was evaluated on the basis of the fact that the project will be
acquired by the John Willey Pty Ltd which will acquire the project at 5% premium from the
Developer. The assumptions and factors considered for the same were highlighted in the same.
The other part of the project deals with the changing financing structure and the impact of the
changing financial leverage on the company and the associated financing costs (Pengyan and
Chao 2016). The final part of the project deals with the risk assessment of the undertaken project.
The key financial evaluation and assessment of the project with the above scenarios and
by distributing the projects into different phase helped us gain what the project forecast could be
depending on certain business, economic and other factors that may influence the project.

7REAL ESTATE EVALUATION
Assumptions
The key assumptions used in the project was the inclusion of the construction cost, which is of
around 300 million that will be incurred in cash. The relevant financing costs and the interest
expense for the same will be applicable. The approach used for valuation of the project was the
cost approach and the approach used for assessing the income of the project was the use of the
income project (Wu and Kou 2016). The inflation forecast was broken down into two parts
where the inflation for the first year will be 4% p.a. for the total amount of the cost or the amount
spend that is the 40% of the total cost. The rest 60% of the total development costs will be
expensed at the rate of 6% per annum. The different phase of the project was divided into
different time period for the project, The distribution of the different time period for the complex
development project will be assessed based on the fact that the same will provide proper
distribution of the project. The relevant financing cost considered for the same was around 125
of the total amount of debt borrowed.
Methodology
The cash flow analysis for the project was based on the act that the revenue will be
escalated at 4%p.a and the annual increase in the revenue will be at 4% p.a for the first year
when the development expense will be around 40%. The remaining 60% of the total cost was
accounted with the fact that the inflation escalation will be at 6% p.a. The development cost and
the total cash expenditure paid for the development of the project was divided into factors, which
helped us asses the total cost. The final part of the project, which is the sale of the project to John
Willey Pty Ltd the cost at which the acquisition will be done. The acquisition will be done at 5%
per annum of the total development cost. The revenue forecast for the company was done for the
John Willey Pty Ltd was done at the 4% increase per year (Fu et al. 2015).

8REAL ESTATE EVALUATION

9REAL ESTATE EVALUATION
Spreadsheet and Evaluation of the Factors Evaluated
Part A Column1
Development cost as of 1st July 2018
Particulars Amount($)
Land Acquisition Expenses 70,000,000
Amount Payable on Deposit equals 10% 10%
Initial Deposit Amount Payable 7,000,000
Demolition Expenses 800,000
Designing and Planning Expenses 3,500,000
Landscaping and External Expenses 500,000
Total Amount of Expenses to be incurred on 1st July 2018 11,300,000
Land Acquisition Expenses
Initial Deposit Amount Payable
Deemolition Expenses
Designing and Planning Expenses
Landscapping and External
Expenses
0 20,000,000 40,000,000 60,000,000 80,000,000
Development cost as of 1st July
2018
59%
7%
30%
4%
Development cost as of 1st July 2018
Initial Deposit Amount Payable Deemolition Expenses
Designing and Planning Expenses Landscapping and External Expenses

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1st July 2018 Land Acquisition Expenses 70,000,000 Initial Stage
Amount Payable on Deposit equals 10% 10%
Initial Deposit Amount Payable 7,000,000
Deemolition Expenses 800,000
Designing and Planning Expenses 3,500,000
Landscapping and External Expenses 500,000
Total Amount of Expenses to be incurred on 1st July 2018 11,300,000 Cash Outflow
30th Sept 2018 (1.07.18-30.09.18) Vesting period demolition period for the building Demolition of Existing Building (3 Months)
Builiding Demolition work from (1.07.18-30.09.18) 800,000 Cost Utilized over the mentioned Time Frame
1st Oct 2018 Transfer and Settlemnt for the Land Acquired Commnecement of Project
Amount to be Paid
Initaial Construction Stage Full and Final 90% Payment of Land 63,000,000 70 MN*90%
Provision for development Expenses 500,000 Dev. Expenses wil be taken per year
Development Expenses 74,800,000
Growth rate of Infalation of the Total 40% invested capital 4% 4% of 40% total capital invested is the Inflation Forecast
Total development Cost for the 40% Invested Caaptal 29,920,000 Total Development Cost taken was 74800000
Inflation Provision for the Project 1,196,800
Development Expenses with Inflation Provision 75,996,800 Accounted cost Till 31ST Dec 2018
1st Jan 2019 (1.10.19-31.03.19) Planning and Designing expenses 3,500,000 Utilisation of csot over the remaianing time
SeconDARY Stage of Construction Designing Cost 50,000,000 6 monthgs of total time for Designing
1st July 2019 Construction Time Perid 20 Months of Trime Frame Required
Cost to be spend for Construction 300,000,000
Tertiary Stage of Cosntruction Expenses for Deelopment 500,000 Development Cost to be spend per annum
Inflation Forecast per annum 6% of the remaning 60% of total assignment6%
Developmenrt Cost of the remaning 60% 44,880,000 Total Development Cost taken was 74800000
Inflation Provision for the Project 2,692,800
Development Cost Acounted with Inflation provision 428,689,600 Total Cost Accounted till 31.12.19
1st Jan 2020 Total Time frame for Construction is equal to 20 months time period for Construction
Development cost accounted per annum 500,000 Costs During Development Period Per Annum
Total Final Development Expenditure 429,189,600 Total Cost Accounted till 31.12.20
1st Jan 2021 Landscaping and External Work (1.01.21-31.06.21) 6 Months of Time Frame
4th Phase Development Cost (Per Annum Provision) 500,000 Costs During Development Period Per Annum
Total Development Cost 429,689,600 Total Cost Accounted till 31.06.21
1st July 2021 City Highrise Complex Development Project Developed

11REAL ESTATE EVALUATION
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Earnings 43,750,000 43,750,000 45,500,000 47,320,000 49,212,800 51,181,312 53,228,564 55,357,707 57,572,015 59,874,896
Escalation @ 4% 0% 4% 4% 4% 4% 4% 4% 4% 4% 4%
Gross Cash Flow 43,750,000 45,500,000 47,320,000 49,212,800 51,181,312 53,228,564 55,357,707 57,572,015 59,874,896 62,269,892
Minus: Sales Expenses -4,375,000 - - - - - - - - -
Expenses for Outgoings 12,400,000 12,896,000 13,411,840 13,948,314 14,506,246 15,086,496 15,689,956 16,317,554 16,970,256 17,649,066
Net Earnings from project 35,725,000 32,604,000 33,908,160 35,264,486 36,675,066 38,142,068 39,667,751 41,254,461 42,904,640 44,620,825
Analysis of Revenue breakdown for City Highrise Project
Particulars Square Feet Rate Amount
Available Office Area 75,000M^2 550/m2 41,250,000
Available Retail Area 5,000M^2 500/m2 2,500,000
Total 80,000 43,750,000
Assumption
Escalation of Revenue is accounted from the second year of the construction
Escalation of revenue will be taken as 4% p.a
Total Outgoing will be calculated on the basis of 155/m2(160-5 Recoverable Amount)*80,000m2
Escalation of the Outgoing cost will be assumed at 4% p.a
Return Required from project 12%
Net Value Created -305,562,500
Internal Rate for the Project -6%
Y e a r 1 Y e a r 2 Y e a r 3 Y e a r 4 Y e a r 5 Y e a r 6 Y e a r 7 Y e a r 8 Y e a r 9 Y e a r 1 0
35,725,000
32,604,000
33,908,160
35,264,486
36,675,066
38,142,068
39,667,751
41,254,461
42,904,640
44,620,825
Cash Infl ow

12REAL ESTATE EVALUATION
Cash Expenditure Analysis Column1 Column2 Column3
Date Particulars Expenses Assumptions and Factor Associated
1st July 2018 Demolition of the Existing Project Demolition will be done of the old building
Time Period required for the same 1st July 2018- 31st September 2018.
1st Oct 2018 Commencement for the Project
Development Cost Incurred 500,000 Expenditure amount in Cash
Interest Cost @ 12% 30,000 Calculation of Interest Cost 6 months (01.06.18-31.12.18)
Total Cash Expense at the End of Year 2018 530,000
1st Jan 2019 Provision for the Development Cost 500,000 Expenditure in Cash which was assumed as annual expenses for the project
Expenses for thhe Construction 300,000,000 Construction cost wil be added inn the cash expenditure portion
Gross Cash Expenses 300,500,000
Interest Cost @12% 36,060,000 Interest cost calculated from 01.1.19-31.12.19
Total Cash Expense at the End of Year 2019 36,560,000 Int Cost for Construction and Development costs+ Development Cost for the year 2019
1st Jan 2020 Provision for the Development Cost 500,000 Expenditure in Cash which was assumed as annual expenses for the project
Interest Cost 36,060,000 (300 million*12% Interest Rate+ 0.5 million*12%)
Total Cash Expense at the End of Year 2020 36,560,000 Int Cost for Construction and Development costs+ Development Cost for the year 2020
1st Jan 2021 Provision for the Development Cost 500,000 Expenditure in Cash which was assumed as annual expenses for the project
Interest Cost 18,030,000 (300 million*12% Interest Rate+ 0.5 million*12%)/2 (From 01.01.21-31.06.21)
Total Cash Expense for the Year 2021 18,530,000 Int Cost for Construction and Development costs+ Development Cost for the year 2021
1st July 2021 Total Cash Expense for the Project 92,180,000 Expenditure in Cash which was assumed as annual expenses for the project
Add: Construction Cost 300,000,000 Construction Cost of 300 Million was taken as Cash Expenditure
Total Cash Expense 392,180,000
Povisions Overhead Cost @ 3% 11,765,400 3%*39,21,80,000
Contingency Provision @ 5% 19,609,000 5%*39,21,80,000
Total Expected Cash Expenses 423,554,400 Inclusive of all the provision and the oerhead csot for the project

13REAL ESTATE EVALUATION
Net Development Expenses Column1 Column2 Column3
Particulars Expenses Assumptions and Factors Considered Content In
Development Cost Incurred 429,689,600 Total Development Cost Outlay Sheet
Add: Cash Expenses 423,554,400 Cash Expenses which are to be incirred in the project Cash Exp. Sheet
less: Construction Cost -300,000,000 300 mn accountability already added in the development cost for the project Cash Exp. Sheet
Less: Development Cost -2,000,000 Development Cost Already Accounted 0.5mn*4 Years Cash Exp. Sheet
Total Development Cost 551,244,000 Total Cost to be Incurred on Project
Financing for the City Highrise Project Column1 Column2 Column3
Particulars Expenses Assumptions and Factors Considered Content In
Int Rate @ 12% 30,000 Interest cost calculated for 6 months (01.06.18-31.12.18) Cash Exp. Sheet
Int Rate @ 12% 36,060,000 Interest cost calculated from 01.1.19-31.12.19
Int Rate @ 12% 36,060,000 (300 million*12% Interest Rate+ 0.5 million*12%) From 01.01.20-31.12.20)
Int Rate @ 12% 18,030,000 (300 million*12% Interest Rate+ 0.5 million*12%)/2 (From 01.01.21-31.06.21)
Net Financing Cost 90,180,000 Net interest rate for the Project will betaken at 12%
Increase in the cost for the project Column1 Column2 Column3
Particulars Expenses Assumption and Factors Assumed Content In
Total Cash Expense 392,180,000 Cash Exp. Sheet
Overhead Cost @ 3% 11,765,400 3%*39,21,80,000
Contingency Provision @ 5% 19,609,000 5%*39,21,80,000
Net Cash Outflow 423,554,400 Overhead and Provisions cost Accounted

14REAL ESTATE EVALUATION
Discussion and Recommendations
Risks and Sensitivity Analysis
The several type of risk analysis was performed in order to evaluate the risk assessment of the
project. The key important risk factors that needs to be accounted are:
1. Improper Evaluation of the Project: There should be proper evaluation and assessment of
the project. The operating activities of the companies should be reviewed periodically or
constantly. In order to remove differences and barrier (Golub, Greenberg and Ratcliffe
2018).
2. Management Focus: The focus for the management should be reviewing the different
phase for the project and the distribution of the different responsibility associated with
the same (Bauer et al. 2015).
3. Cost Structure and Cost Escalation: The cost escalation and increase in the expenses for
the project will be a necessary cost for evaluation. Rise in expenses is a common factor in
the real estate business (Ribeiro et al. 2017).
4. Political Scenario: The changing political scenario for the country in which the project
will be carried on and the relevant political scenario plays an important role.
5. Tenancy Risk and Market Risk: The volatile market scenario along with the non-static
tenancy structure of the city complex project may hamper the long-term viability of the
project (Del Giudice et al. 2017).
Risk Evaluation of City Highrise project
There are certain risks, which require a risk evaluation and the forecast for the same
needs to be done in order to minimize the impact of the same. The major risk for the real estate

15REAL ESTATE EVALUATION
project is the amount of financing cost is borrowed by the debt funding (Smedberg et al. 2017).
The financing costs plays an important role and thus if the project gets prolonged extended there
are certain costs like the development costs, construction cost and the relevant financing costs
will also rise. The risk evaluation should also be done based on the earnings inflowing to the
company and the outgoing costs associated with the project (Lauf, Haase and Kleinschmit 2016).
Tenancy risk and the market risk are some of the factors that should also be considered while
evaluating the City Highrise Project.
Sensitivity Analysis
The sensitivity analysis for the project evaluated has helped us evaluate the risk for the project.
The risk evaluated for the project was done on the different possible scenarios of the project:
Particulars Expected Scenario Growth/Optimistic(+10%) Decline/Pessimistic (-10%)
Earnings
43,750,0
00
48,125,0
00
39,375,0
00
Increase in Revenue
1,750,0
00
1,925,0
00
1,575,0
00
Gross Earnings
43,750,0
00
50,050,0
00
40,950,0
00
Less: Sales Cost@10%
-
4,375,000
-
5,005,000
-
4,095,000
Net Financing Costs
12,400,0
00
11,160,0
00
12,276,0
00
Net Cash Inflow
35,725,0
00
38,890,0
00
28,674,0
00

16REAL ESTATE EVALUATION
Earnings Increase in
Revenue Gross Earnings Less: Sales
Cost@10% Net Financing
Costs-10,000,000
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Sensitivity Analysis
Expected Scenario Growth/Optimistic(+10%) Decline/Pessimistic (-10%)
Exit Route Evaluation
The cost at which the acquisition will be done for the John Wiley Pty Ltd will be at 5% premium
of the total cost of the development (Eraker et al. 2015).
Breakdown for the Development Cost Column1 Column2
Particulars Expenses Factors and Assumptions Assumed
Initial Development Exp
429,689,6
00 Generated after Accounting for factors
Cash Expenditures
423,554,4
00 Generated after Accounting all provisions
less: Construction Cost
-
300,000,000 Cost Accounted in the development
Less: Development Cost -2,000,000 Incorporated Provision for the Development costs
Total Development Cost
551,244,0
00 Expenses for the Project
Premium Percentage for the Project
27,562,2
00
John Willey will acquire the City High Rise Project @ 5%
premium of the total cost accounted 551.244mn
Total Selling/Acquisition Cost
578,806,2
00 John Wiley Acquisition Cost
Profit for the Developers
27,562,2
00 5% will be the total premium for the City Highrise Developers

17REAL ESTATE EVALUATION
18%
18%
13%0%
24%
1%
25% 1%
City Highrise Project
Initial Development Exp Cash Expenditures
less: Construction Cost Less: Development Cost
Total Development Cost Premium Percentage for the
Project
Total Selling/Acquisition
Cost
Profit fort the Developers
Annual Cash Flow for John Wiley Pty Ltd
The annual cash flow that will be coming for the John Wiley Pty Ltd under the Scenario
1 (Liu and Lu 2015):

18REAL ESTATE EVALUATION
Revenue Analysis Column1 Column2 Column3
Particulars Square Feet Rate Amount
Offi ce Lettable Area 75,000M^2 550/m2 41,250,000
Retail Lettable Area 5,000M^2 500/m2 2,500,000
Total 80,000 43,750,000
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Earnings 43,750,000 43,750,000 45,500,000 47,320,000 49,212,800 51,181,312 53,228,564 55,357,707 57,572,015 59,874,896
Escalation @ 4% 0% 4% 4% 4% 4% 4% 4% 4% 4% 4%
Gross Cash Flow 43,750,000 45,500,000 47,320,000 49,212,800 51,181,312 53,228,564 55,357,707 57,572,015 59,874,896 62,269,892
Minus: Sales Expenses -4,375,000 - - - - - - - - -
Expenses for Outgoings 12,400,000 12,896,000 13,411,840 13,948,314 14,506,246 15,086,496 15,689,956 16,317,554 16,970,256 17,649,066
Net Earnings from project 35,725,000 32,604,000 33,908,160 35,264,486 36,675,066 38,142,068 39,667,751 41,254,461 42,904,640 44,620,825
ANALYSIS OF PROJECT FROM JOHN WILEY PTY LTD. (Scenario 1)
Escalation of the Outgoing cost will be assumed at 4% p.a
Total Outgoing will be calculated on the basis of 155/m2(160-5 Recoverable Amount)*80,000m2
Escalation of revenue will be taken as 4% p.a
Escalation of Revenue is accounted from the second year of the construction
Assumption
Return Required from project 9%
Net Value Created -311,777,496
Internal Rate for the Project -7%

19REAL ESTATE EVALUATION
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Cash Inflow
Analysis of the Project under Scenario 2 for John Wiley Pty Ltd
Revenue Analysis Column1 Column2 Column3
Particulars Square Feet Rate Amount
Offi ce Lettable Area 75,000M^2 550/m2 41,250,000
Retail Lettable Area 5,000M^2 500/m2 2,500,000
Total 80,000 43,750,000
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Earnings 43,750,000 43,750,000 45,500,000 47,320,000 49,212,800 51,181,312 53,228,564 55,357,707 57,572,015 59,874,896
Escalation @ 4% 0% 4% 4% 4% 4% 4% 4% 4% 4% 4%
Gross Cash Flow 43,750,000 45,500,000 47,320,000 49,212,800 51,181,312 53,228,564 55,357,707 57,572,015 59,874,896 62,269,892
Minus: Sales Expenses -4,375,000 - - - - - - - - -
Expenses for Outgoings 12,400,000 12,896,000 13,411,840 13,948,314 14,506,246 15,086,496 15,689,956 16,317,554 16,970,256 17,649,066
Proceed from Sale of Assets - - - - - - - - - 900,000,000
Net Earnings from project 35,725,000 32,604,000 33,908,160 35,264,486 36,675,066 38,142,068 39,667,751 41,254,461 42,904,640 944,620,825
Total Outgoing will be calculated on the basis of 155/m2(160-5 Recoverable Amount)*80,000m2
ANALYSIS OF PROJECT FROM JOHN WILEY PTY LTD. (Scenario 2)
Assumption
Escalation of Revenue is accounted from the second year of the construction
Escalation of revenue will be taken as 4% p.a
Escalation of the Outgoing cost will be assumed at 4% p.a
Sale of Asset
in the year

20REAL ESTATE EVALUATION
Return from Project under Scenario 2
Return Required from project 9%
Net Value Created 37,002,070
Internal Rate for the Project 10%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Cash Inflow
Conclusion
The project was evaluated with the aim to get the financial viability for the project and the
overall viability of the project. The project was evaluated and executed on the base of
assumptions and methodology that is described and outlined above. The key factors involved in
the development of a real estate and the factors that influence the same are outlined in the
project. The project had a detailed risk analysis and sensitivity analysis was performed taking
three major risk factor that can influence the revenue of the project.

21REAL ESTATE EVALUATION
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