File:zpredpfa	Created by © Zeppelin Partners Limited
Phone (852) 37576388, Fax (852) 37576399, E-mail stephenchung@zeppelin.com.hk
SIMPLE REAL ESTATE DEVELOPMENT CALCULATION PROFORMA
Based on Selling the Whole Project / Units when the project / units is / are completed
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Project / Subject :	Testing Project
Date :	18-Aug-99	Updated on :	Input if applicable
Remarks :	For simple illustration only. Further / Detail studies may be required.
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	Input Cells are in GREEN Color.
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INPUT AND ASSUMPTION PAGE :		Input Currency used =		HK$	Notes / Remarks
REVENUE ITEMS	(There is no need to fill in all revenue components although there should be at least one)
a) Sales Proceeds from Residential =				500,000,000
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				100,000	ft2 or m2
Input Price Rate e.g. $/per ft2 =				5,000	per ft2 or m2
Input Price Increase / Decrease Rate % =				10.00%
b) Sales Proceeds from Retail =				100,000,000
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				10,000	ft2 or m2
Input Price Rate e.g. $/per ft2 =				10,000	per ft2 or m2
Input Price Increase / Decrease Rate % =				10.00%
c) Sales Proceeds from Office =				100,000,000
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				20,000	ft2 or m2
Input Price Rate e.g. $/per ft2 =				5,000	per ft2 or m2
Input Price Increase / Decrease Rate % =				10.00%
d) Sales Proceeds from Industrial =				2,000,000
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				1,000
Input Price Rate e.g. $/per ft2 =				2,000
Input Price Increase / Decrease Rate % =				5.00%
e) Sales Proceeds from Other Use(s) =				1,250,000
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				500
Input Price Rate e.g. $/per ft2 =				2,500
Input Price Increase / Decrease Rate % =				5.00%
f) Sales Proceeds from Parking =				50,000,000
Input Quantity e.g. No. of parking spaces =				100	No. of spaces
Input Price Rate e.g. $/per parking space =				500,000	Per parking space
Input Price Increase / Decrease Rate % =				8.00%
g) Sales Proceeds from Miscellaneous etc =				1,000,000	Lump Sum
Input Price Increase / Decrease Rate % =				5.00%
EXPENSE ITEMS					Land Cost / GFA  :
a) Input Land Cost based on Estimated/Actual Price $ =				250,000,000	1,901.14
Input Stamp Duty % IF ANY OR APPLICABLE =				2.75%
Input Related Real Estate Agency Fee % IF ANY OR APPLICABLE =				1.00%
Input Legal and Transaction Fee % IF ANY OR APPLICABLE =				1.00%
Input Expected Inflation / Deflation Rate % =				10.00%	For Reference Only
b) Estimated Construction Cost =				273,000,000
Construction Floor Area (total floor area above + % below)  =				136,500
Input % allowance for Construction Floor Area IF APPLICABLE =				5.00%
Input Construction Cost per Construction Floor Area $/ft2 or m2 =				2,000	per ft2 or m2
Input Expected Inflation / Deflation Rate % =				10.00%	For Reference Only
c) Soft Costs e.g. professional fees				13,650,000
Input % allowance for Soft Costs (based on total construction cost) =				5.00%
Input Expected Inflation / Deflation Rate % =				5.00%
d) Input % Level of Financing for Land Cost IF ANY =				30.00%
Assumption : Financing is given at acquisition and a "balloon mortgage" is assumed.
Input Interest Rate =				9.00%
Input % Level of Financing for Construction Cost IF ANY =				80.00%
Assumption : Financing is given as spent (subject to % level) while principal + interest are repaid on completion.
Input Estimated / Expected Overall Average Interest Rate % =				9.00%
Input Development Time in years =				3	Years
e) Marketing Cost =				22,530,000
Input % allowance for marketing (based on total sales proceeds) =				3.00%
Input Expected Inflation / Deflation Rate % =				5.00%
f) Input Discount Rate to be applied =				10.00%
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RESULTS :	Net	Internal
Years of Development	Present Value	Rate of Return	Discount % used	Nominal Profit	Nominal Return
2	202,618,623	50.48%	10.00%	141,468,984	23.09%
3	217,173,313	37.51%	10.00%	124,595,653	19.79%
4	231,715,699	31.25%	10.00%	108,180,389	16.74%
5	248,555,972	27.84%	10.00%	95,144,113	14.44%
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