Analyzing Investment Options and Portfolio for MS. B's Needs

This project analyzes investment opportunities for MS. B, focusing on real property and capital market investments. The evaluation includes the financial performance of potential investments, such as commercial offices, residential condominiums, shares in Crystal World Ltd and Jade Inter-National Ltd, and REITs. The analysis considers factors like price per sqft, return on investment, inflation rates, and gearing ratios to determine the most suitable portfolio composition. The project concludes with a recommendation for a combined portfolio holding shares of Crystal World Ltd, F-REIT, and commercial office to reduce risk and improve overall returns, considering the impact of inflation on investment outcomes. The report also includes references to relevant academic literature.

Running head: INVESTMENTS
Investments
Name of the Student:
Name of the University:
Authors Note:

INVESTMENTS
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Table of Contents
1. Evaluating the presented investment opportunity, which could be used for creating
portfolio for MS. B:....................................................................................................................2
2. Creating portfolio for MS. B and recommending her adequate investment:.........................3
Reference and Bibliography:......................................................................................................6

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1. Evaluating the presented investment opportunity, which could be used for creating
portfolio for MS. B:
The investment option that is presented to MS B consist of real property and capital
market investment, which needs to be evaluated for creating the portfolio. In addition, the
financial performance of the organisation could be used in identifying the investment
opportunity, which could increase the return. In addition, the use of net book value, gearing
value and dividend yield of the company can be identified. This mainly helps in generating
high return from investment, as it might improve the level of investment options. The capital
margin investment is conducted to ensure the continuous return, which could be provided
from investment and generate high level of income. Moreover, investment in shares and
REIT could help in generating high level of returns, which is been presented by the property
market of Singapore (Lahr & Mina, 2016).
The second investment options that is been evaluated is the real property investment,
which is intended by MS. B. There are two different investment properties, which could be
used by MS. B is Commercial Office and Residential Condominium. Hence, the investment
in property could allow investors in generating constant returns from investment in form of
rents, which is provided by tenants. The rent value mainly ranges from SGD7,000 to
SGD9,500, which helps in generating high level of income from property investment. This
range of rent mainly indicates the minimum retune and maximum return, which could be
provided from rents (Colombo & Murtinu, 2017).
Both the information about shares and property investment could help in detecting the
adequate return, which could be provided from investment and allow investors to create
adequate portfolio. The selection of adequate investment options can be evaluated from the
presented investment options and tap into the rinsing property market of Singapore.

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2. Creating portfolio for MS. B and recommending her adequate investment:
Particulars Per
sqft
Price per sqft Amount Return
Commercial Office 1200 SGD 2,800 SGD 3,360,000 SGD 114,000
Fixed deposit SGD 1,640,000 SGD 16,400
Total SGD 5,000,000 SGD 130,400
Return 2.61%
Inflation rate 3.00%
Return % -0.39%
From the overall evaluation investment in property would not allow MS. B to
generate adequate retune from investment, as inflation would nullify the return from
investment. This would allow investors to generate adequate returns from investment, which
is not appropriate, as it does not support the inflation rate. The investment is mainly at the
levels of SGD 3,360,000, as only one property will be purchased from operations. The capital
will be invested in fixed deposit, which will provide 1% return annually. However, the
deduction of inflation rate from return will mainly provide negative return from portfolio
(Cucchiella et al., 2017).
Particulars Share price No of
Shares
Amount Return
Crystal World Ltd 12.8 49,888 SGD 638,566 SGD 9,578.50
Jade Inter- National
Ltd
1.8 2,423,019 SGD 4,361,433 SGD 152,650.17
Total SGD 5,000,000 SGD 162,229

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Return from investment 3.24%
Inflation rate 3.00%
Return % 0.24%
The use of share price could allow investors to generate high level of return, where it
could provide 3.24% from the total return. The share Crystal World Ltd. (CWL) has the
highest book value and lowest gearing ratio with adequate dividend yield. This could help in
generating adequate return, while the portfolio could help in improving profits from
operations. However, Jade Inter- National Ltd mainly has the highest gearing ratio, second
lowest book value, which indicates that investment in the share could be a risky endeavour
for the investor (Vasicek, 2015). However, the portfolio composition could generate a return
of 3.24% or 0.24% when compensating from inflation rate.
Particulars Share price No of
Shares
Amount Return
F-REIT 2.9 100,000 SGD 290,000 SGD 13,050
P-REIT 1.5 900,000 SGD 1,350,000 SGD 91,125
Total Investment SGD 5,000,000 SGD 104,175
Return from
investment
2.08%
Inflation rate 3.00%
Return % -0.92%
From the evaluation, investment in REIT is not an adequate endeavour, where the
return from investment has declined to -0.92% due to inflation rate. In addition, the

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investment could not help in generating the required level of return from investment and
hamper investment capital (Panayiotou & Medda, 2016). Moreover, both the REIT stock has
high gearing level indicates the accumulation of debt within the organisation. This indicates
that investment in REIT could be risky endeavour for the investor.
Hence, from the evaluation it could be understood that relevant portfolio could be
composed. This portfolio could hold shares of Crystal World Ltd, F-REIT and Commercial
Office. This combined portfolio could allow investors in reducing risk and improving return
of the portfolio.

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Reference and Bibliography:
Colombo, M. G., & Murtinu, S. (2017). Venture capital investments in Europe and portfolio
firms' economic performance: Independent versus corporate investors. Journal of
Economics & Management Strategy, 26(1), 35-66.
Cucchiella, F., Gastaldi, M., & Trosini, M. (2017). Investments and cleaner energy
production: a portfolio analysis in the Italian electricity market. Journal of Cleaner
Production, 142, 121-132.
DeFusco, R. A., McLeavey, D. W., Pinto, J. E., Anson, M. J., & Runkle, D. E.
(2015). Quantitative investment analysis. John Wiley & Sons.
Go, R. S., Munoz, F. D., & Watson, J. P. (2016). Assessing the economic value of co-
optimized grid-scale energy storage investments in supporting high renewable
portfolio standards. Applied energy, 183, 902-913.
Lahr, H., & Mina, A. (2016). Venture capital investments and the technological performance
of portfolio firms. Research Policy, 45(1), 303-318.
Panayiotou, A., & Medda, F. (2016). Portfolio of infrastructure investments: Analysis of
european infrastructure. Journal of Infrastructure Systems, 22(3), 04016011.
Shah, R., & Jammalamadaka, P. R. (2017). Optimal Portfolio Strategy for Risk Management
in Toll Road Forecasts and Investments. Transportation Research Record: Journal of
the Transportation Research Board, (2670), 83-94.
Vasicek, O. A. (2015). Loan Portfolio Value. Finance, Economics and Mathematics, 149-
160.