File:zpreipfa	Created by © Zeppelin Partners Limited
Phone (852) 37576388, Fax (852) 37576399, E-mail stephenchung@zeppelin.com.hk
SIMPLE REAL ESTATE INVESTMENT CALCULATION PROFORMA
Based on Acquiring an Existing Investment Property and Selling it after an assumed number of years
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Project / Subject :	Lovely Garden
Date :	1-Nov-00	Updated on :	Input if apply
Remarks :	For simple illustration only. Further / Detail studies may be required.
	Requires Microsoft Excel and complimentary computer equipment and operational capacity.
	Seek advice from appropriate consultants prior to usage if unsure.
	Zeppelin or its associates, consultants, staff and the like do NOT take responsibility for losses
	or damages arising out of the use of these proformas or content.
	Zeppelin or its associates, consultants, staff and the like do NOT take responsibility for
	mistakes, virus or bugs contained in these proformas or content.
	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) Rental Income from Residential Per Annum =				8,122,500	Per Month =
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				50,000	ft2 or m2
Input Quantity in terms of no. of units if applicable =				20	Average GFA / Unit :
Input Rental Rate e.g. $ per ft2 or per m2 GFA per month =				15	$/ft2 or m2/month
Input Rental Rate Increase / Decrease Rate % =				5.00%
Input Vacancy Rate % =				5.00%
b) Rental Income from Retail Per Annum =				0	Per Month =
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				0	ft2 or m2
Input Rental Rate e.g. $ per ft2 or per m2 GFA per month =				0	per ft2,m2/month
Input Rental Rate Increase / Decrease Rate % =				5.00%
Input Vacancy Rate % =				5.00%
c) Rental Income from Office Per Annum =				0	Per Month =
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				0	ft2 or m2
Input Rental Rate e.g. $ per ft2 or per m2 GFA per month =				0	per ft2,m2/month
Input Rental Rate Increase / Decrease Rate % =				5.00%
Input Vacancy Rate % =				5.00%
d) Rental Income from Industrial Per Annum =				0	Per Month =
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				0	ft2 or m2
Input Rental Rate e.g. $ per ft2 or per m2 GFA per month =				0	per ft2,m2/month
Input Rental Rate Increase / Decrease Rate % =				5.00%
Input Vacancy Rate % =				5.00%
e) Rental Income from Other Use(s) Per Annum =				0	Per Month =
Input Quantity e.g. total Gross Floor Area (GFA) in ft2 =				0	ft2 or m2
Input Rental Rate e.g. $ per ft2 or per m2 GFA per month =				0	per ft2,m2/month
Input Rental Rate Increase / Decrease Rate % =				5.00%
Input Vacancy Rate % =				5.00%
f) Rental Income from Parking Per Annum =				0	Per Month =
Input Quantity e.g. no. of parking spaces =				0	No. of spaces
Input Rental Rate e.g. $ per parking space per month =				0	$/space/month
Input Rental Rate Increase / Decrease Rate % =				5.00%
Input Vacancy Rate % =				5.00%
g) Rental Income from Miscellaneous Per Annum =				0	Lump Sum p.a.
Input Rental Rate Increase / Decrease Rate % =				5.00%
i) Cap Rate Used at Disposition =				4.00%
j) Marketing or Leasing Cost as a % of total revenues =				5.00%
EXPENSE ITEMS
a) Acquisition Cost based on Actual/Estimated Price $ =				150,000,000	Purchase $/GFA :
Input Stamp Duty % IF ANY =				2.75%	Approx Yield % :
Input Real Estate Agency Fee % IF ANY =				1.00%
Input Legal and Transaction Fee % IF ANY =				1.00%
b) Estimated Building Maintenance Cost Per Annum =				1,800,000	Per Month =
It is assumed that reserved funds for major renovations / repairs are included herewith.
Construction Floor Area (total floor area above + % below)  =				50,000
Input % allowance for Construction Floor Area =				0.00%
Input Maintenance Cost per Construction Floor Area $/ft2 or m2/month =				3.00	per ft2,m2/month
Input Expected Inflation / Deflation Rate % =				5.00%
c) Estimated Property Management Cost Per Annum =				270,000	Per Month =
Input % allowance for Soft Costs (based on total maintenance cost) =				15.00%
Input Expected Inflation / Deflation Rate % =				5.00%
d) Input % Level of Financing for Acquistion Cost IF ANY =				50.00%
Assumption : A simple "balloon payment" mortgage is used here.
Input Estimated / Expected Overall Average Interest Rate % =				9.00%
Input Investment Time in years =				5	Years
e) Estimated Land Rent / Rates Cost Per Annum =				731,025
Input % allowance for marketing (based on total rental income) =				3.00%
Input % allowance for land rent (based on total rental income) =				3.00%
Input % allowance for rates (based on total rental income) =				3.00%
Input Expected Inflation / Deflation Rate % =				5.00%
f) Recoupment Rate % of (b), (c) and (e) from tenants IF ANY =				95.00%
Assuming typical circumstances, this would be roughly equal to the overall "Occupancy Rate%" i.e. 100% - Vacancy % used here.
Ref Only:Expense(b)+(c)/unit/month :		8,625	Discount Rate =	10.00%
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Results :	Net Present	Internal Rate of
Investment Years	Value	Return	Price +/-% p.a.	Discount % used	Cap Rate used
2	32,951,670	32.39%	18.19%	10.00%	4.00%
3	32,916,922	24.58%	13.62%	10.00%	4.00%
4	32,858,141	20.85%	11.40%	10.00%	4.00%
5	32,778,747	18.67%	10.09%	10.00%	4.00%
10	32,168,536	14.44%	7.51%	10.00%	4.00%
15	31,382,120	13.09%	6.67%	10.00%	4.00%
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