The Assessment This assessment will allow you to understand and demonstrate the different forms of implicit and explicit valuation methods and how to apply them with Excel. Your Excel work will

need to be fully annotated to demonstrate your understanding of the valuation principles and industry-wide valuation principles. You will also need to carry out research into the UK economy and the London office market and provide an independent professional opinion on the opportunities and threats for the UK and London office investment based on the details set out below. This work should be set out as a professional report comprising 2,000 words with the Excel and annotations attached as an appendix. Your report should include a title page, a contents page, and an Executive Summary. These sections and appendices are excluded from the word count. Tables are also excluded from the word count. To give your report a professional look and enhance your work you are encouraged to use maps, graphs, tables photos, and other images that are relevant. Each week you will be sign-posted to where you should be with your research and writing up this assessment. This will provide you with guidance and help your time management to produce a piece of work to your best capabilities and on time. In addition to the brief below a video discussing this assessment can accessed by clicking on the link below./nAssessment detail. Please also read the following brief which this assessment is based on: - **** The Client's Brief Your company has recently been appointed by a Far Eastern-based investor to provide valuation advice and a commentary on the prospects of their investments in terms of capital value (ie depreciation, stabilising, or appreciating) over the next 10 years after which the client will sell. This advice is for the client's internal purposes only and will not be relied upon by a third party. This report therefore does not have to follow the RICS Red Book. You have been allocated the freehold office investment in Buckingham Place Road, London SW1W and the following tasks as part of this instruction. 1. You need to provide in writing a well-researched overview of the UK economy with information gathered from independent credible sources, such as the Financial Times (which can be accessed online from the Library) and the Office for National Statistics (ONS). Page | 2/n2. You are required to discuss the prospects of the UK economy over the short (1 year) to medium (2-5 years) term based on your research and the potential impact on commercial property investment. (Note: -1. and 2. above will improve your research-based skills and understanding of macroeconomics. Maximum 500 words). 3. Provide a detailed overview of the London office investment market based on research from companies operating in that market, such as Savills, Deloitte, and Knight Frank, as well as RICS, (isurv) EGI and CoStar (which can be accessed online from the library). 4. Detail the future opportunities and threats to the London West End office investment market based on your research. (Note: - 3. and 4. above will improve your research-based skills and understanding of micro-economics. Maximum 500 words). 5. Research current rental values and investment yields which will be set out in a table and based on this comparable evidence provide clear justification for your opinion on the Buckingham Place Road office's market rent (ERV) and all-risk yield (ARY). Sources of information can be obtained from research reports from the main London agents as well as RICS, EGI and Co-Star. (Note: - this will reinforce your skills of gathering and analysing relevant comparable evidence to arrive at an appropriate opinion of value. Setting out your justification will provide transparency for your client and leave a paper trail in case of a query later. Maximum 500 words). 6. Produce market values in Excel on the Buckingham Palace Road office investment on the following bases: - a. Rack rented. b. Term and reversion. c. Hardcore/layer method. d. Short-cut DCF. e. Full DCF with a growth rate provided. f. Full DCF with Gordons Growth Model. Your workings should be fully annotated and be set out in Excel attached as an Appendix. You will need to include your calculations and separate sheets showing your formula. All calculations will come from the formula that you have inputted./n7. Include a table in the main body of the report setting out the market values calculated on the above bases (from point 6) with a recommendation on the appropriate valuation method to be adopted for this investment. (Note: -6. and 7. above will reinforce your knowledge of the different types of implicit and explicit valuations and provide you with greater confidence to perform these calculations. Maximum 300 words). 8. Provide a conclusion and recommendation to a proposed 10-year investment hold period. (Note- this will provide you with the skill of drawing together all of your research and knowledge set out in your report to leave the client with a clear summary and recommendations expected of a professional. Maximum 200 words). Here are the details of the investment property you will be reporting on A six-storey freehold office investment in Buckingham Palace Road, London SW1W. * Built in the 1980s but comprehensively refurbished to a Grade A specification three years ago. + EPC rating Grade A. * IPMS2 60,000 sq.ft with an 85% efficiency to IPMS3. + Passing rent £47.00 per sq.ft set 3 years ago. * Let to a triple-A covenant for a 25-year term with 5 yearly upwards only rent reviews three years ago. > FRI lease terms and there are no landlord, tenant, or mutual break options. > Purchaser's costs are 6.75%. * Sales costs are 2.4% for agent and legal fees. ******************************************** ******************************* Coursework 1 will assess the following learning outcomes of this module: - 1. Apply valuation principles and concepts to undertake a wide range of commercial property valuations for specific purposes in specific settings, whilst having regard to relevant and appropriate professional guidance, which will be introduced. 2. Identify and appreciate which valuation method may be more applicable in a particular setting. 4. Analyse, synthesise, and evaluate more complex rental evidence and apply the same to the valuation process./n5. Use appropriate communication to a professional standard of practice to confidently, clearly, and competently on property matters. 6. Competently research for information associated with the property market, in a specific UK and European setting. 7. Communicate effectively and professionally in all expected formats to influence change, enhancing the prospects of assumed client appreciation and recognition. This will include the ability to reflect on the content of what has been delivered in this process, in the context of the individual's personal knowledge and therefore opportunities of enhancement through personal development. In addition to the modules' recommended textbooks, links to assist further research are below. Additional reading will be added each week onto the module page and clearly identified in class.