File:zpredpfa Created by © Zeppelin Real Estate Analysis Limited 
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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.
Requires Microsoft Excel and complimentary computer equipment and operational capacity. 
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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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