REST0004: Property Investment& Finance
Assignment 2 - 2024
Due Date: Friday 19th April 2024
Individual Assignment
Assignment Topic
This is the second report in a series of two assignments, and it is an investment analysis report of an income-producing property (office, retail, or industrial). If you choose an income-producing property in Assignment 1, you can continue with it in
Assignment 2.
You are assuming the role of a Property Investment Analyst, and you are required to conduct an investment analysis report for an income-producing property in the major cities of the east coast of Australia. The subject property must be available in the market or recently sold (from June 2023 to date).
You are required to identify an income-producing property and obtain data and information for the property, such as purchasing price, rent, rental growth, vacancy rate, incentives, outgoings, including capital improvement, and net lettable area.
You are expected to develop a discount rate and a discount cash flow for a ten-year period.
Tasks
You are required to conduct an investment analysis report for an income producing property in the major cities of the east coast of Australia. Your report needs to discuss and evaluate the following:
a) Please provide a brief description of the subject property, including its internal and external features.
b) Use the collected data and information to conduct a detailed investment analysis, including a 10-year discounted cash flow (DCF), the Net Present
Value (NPV), and the Internal Rate of Return (IRR).
c) Use the DCF in (b) to evaluate the impact of loan/leverage in the investment analysis and to determine the optimal financial strategy.
d) Use the DCF in (b) and (c) to evaluate the financial risk of this investment.
e) Use the DCF in (b) to evaluate the impact of tax in the investment analysis.
Report Due Date: Friday, 19th April 2024 at 11:30 PM
Content
Your presentation/report will need to include:
• Proposal summary
• Background of the subject property
• Investment analysis, including the NPV, IRR, optimal financing strategy, the financial risk, and the impact of tax on the NPV and IRR
• Conclusions
Submission requirements
■ Your paper should be set out in an easy-to-read, conversational style.
■ You may use headings, bullet points, tables or charts to highlight points.
■ Sources should be referenced as per UNSW standards.
■ Students must submit written assignment on a Microsoft Word
Document, and an Excel file with the DCF and other calculations must be submitted via the appropriate Turnitin link on Moodle.
■ Use Harvard referencing and citations. Minimum of 5 references in this submission.
■ The maximum word limit is 3,000 words, excluding tables, graphs, appendices.
■ A cover page has been provided (see following).
■ Assignments that do not include the standard university plagiarism declaration will not be marked until this is supplied
The University of New South Wales
School of the Built Environment
REST0004 T1 2024 – Property Investment & Finance
ASSIGNMENT 2 COVERSHEET
DUE DATE: FRIDAY19 April 2024
STUDENT CHECK LIST (please tick)
□ Coversheet
□ Plagiarism declaration
□ Submission uploaded into Moodle
STUDENT NAME AND NUMBER:
|
Item |
Mark |
Value |
|
Executive summary |
|
10% |
|
Introduction of the subject property |
|
5% |
|
Investment analysis on property |
|
30% |
|
Investment analysis on equity (debt financing) and the optimal financing strategy |
|
10% |
|
Financial risk management |
|
10% |
|
The impact of taxation |
|
10% |
|
Conclusions |
|
10% |
|
Presentation and style |
|
5% |
|
Students present the proposal clearly and convincingly |
|
5% |
|
Use of tables, charts or data to present findings |
|
5% |
| TOTAL MARK |
|
/100 |
Marker’s Comments: