Construction Cost

Appraise the feasibility, best development & the rate of return for this white site applying discounted cash flow analysis.

Use the following assumptions:

Land cost = $1,536,087,718.00

Construction cost of office = $3150/m²

Construction cost of retail = $3300/m²

Construction cost of residential = $4250/m²

Ratio of lettable floor area to gross floor area = 0.9 : 1

Office monthly rental = $12 psf

Retail monthly rental = $26 psf

Residential/service apartment rental : $5 psf

Monthly operating cost = $1 psf

Every 5 years rental income and outgoing expenses increase by 5%

Outgoing expenses increase by 10% after Year 30

Floor to ceiling height = 3 metres

Lifespan of proposed building = 60 years

Vacancy rate = From Year 10 onwards, every 5 years at 5%. From year 30, every 5 years at 10%.

1 m² = 10.7639 feet²        (30 marks)

Examine the issues of developing a Computer-Aided Property and Facilities Management (CAPFM) for the intended development.      (10 marks)